web analytics

$1.80 petrol = recession

Written By: - Date published: 8:42 am, March 14th, 2011 - 53 comments
Categories: Economy, energy - Tags: , ,

So, the other day I was arguing something around $100 a barrel oil equals a global recession. I wanted to get more precise: is there a certain price of petrol in New Zealand, above which the economy goes into recession? It turns out there is, and we’re well above it. The political implication: the best way to promote growth is decrease our oil dependence.

I took the MED’s petrol data and got the average price for 91 in each quarter since they started publishing the numbers in 2004, inflation-adjusted, and compared it to the GDP growth rate. The link was strongest when I lagged the petrol price by a quarter, which makes sense because it takes time for changes in petrol price to change consumer behaviour and other prices.

The key price appears to be between $1.75 a litre and $1.80 a litre.

As you can see, the prices we’ve experienced recently suggest that there will be recession in the December through to June quarters, even without the Christchurch Earthquakes and the fallout from the Sendai Earthquake (which will be significant). And recession will continue until (if) the petrol price gets down to a viable price.

This is a scatter graph, each dot represents a quarter giving the growth rate and lagged petrol price.

The formula for the trend line crosses zero at $1.77. Of the 8 quarters in which petrol has averaged over $1.77, 5 were followed by a quarter of recession and the other 3 were followed quarters with 0.1% growth. Of the 17 quarters where petrol was below $1.77, the economy shrank once in the following quarter, was flat once, and grew 15 times. The correlation is -0.71, which is strong.

Although there’s not a lot of talk about this in the msm, I think it’s pretty obvious that the price of petrol can induce recessions at what, now, seems like quite a low level. The average household consumes 35 litres of petrol and a couple of diesel every week. That means a 10 cent a litre rise sucks $200 per year out of the average household budget and $300 million out of the total budget of households. That means $300 million less consumer demand for other things, meaning less economic activity. $300 million is 0.15% of GDP, so that’s a guide to the direct hit to the economy from every 10 cent petrol rise without even counting the extra cost of freight transport, which probably doubles the effect since as much imported oil is used for diesel as petrol. It doesn’t take too much to work out that when you keep taking 0.15-0.3% off GDP with every 10 cent rise you reach a point that outweighs ‘normal’ growth.

Now, a petrol price of $1.77 equates to an oil price of about USD$80 a barrel. Anyone expecting oil to go down below $80 and stay there in the future? Nah, me neither.

A pro-growth political party should pay attention to this. They can’t influence petrol prices (apart from unsustainably cutting tax every time they rise, and that just necessitates rising tax elsewhere) but they can help households and freight companies consume less of it, which means the economic damage of a price rise is decreased.

A pro-growth party in the age of peak oil should concentrating their efforts on providing alternatives to oil and decreasing dependency on oil. And there’s an obvious suite of policies for that: no more motorways, more public transport, rail and coastal shipping to replace freight, ending sprawl and creating walkable communities.

Huh. Somewhat ironic that ACT, the most growth opposed party, is resorting to race-baiting while that the Greens have the most pro-growth economic policy.

53 comments on “$1.80 petrol = recession ”

  1. Bunji 1

    And the government’s plan? From Stuff this morning:
    Doubt stalls biofuel growth

    Biofuel producers say millions of dollars worth of investment is at risk because of uncertainty over whether the government will continue a subsidy programme beyond next year.

    and the result of that and similar policies:
    Economy ‘probably back in recession’

    • ZeeBop 1.1

      Biofuels just keep the lifestyle alive a bit longer, when it should be helped to die.
      Government should not be building more roads, it should be buying up useless
      unwanted noisy poorly maintained old road vehicles and recycling them for scrap.
      This is what a sustainable resilient government would look like, one that promotes
      the recycling and entrenches the new energy efficient economy with relevant policies.
      Another question can you sue the local school if their parents turn up in horrendously
      noisy cars every morning? Its like a rally just before 9am every morning now.

      • Bored 1.1.1

        When I used to cycle to school back in the Jurassic I was in no danger of being flattened by “mummy” dropping off the kids at school in a 4WD.

        • Shane Gallagher 1.1.1.1

          You are right – the most dangerous drivers around schools are parents driving SUVs at speed, double parking and generally putting everyone else’s child in danger so they don’t have to get out of their cars.

          With zoning in towns most people live well within walking distance of school and that is how kids should be getting there. At my son’s primary school they are not allowed to cycle or scoot to school as the roads are too dangerous. The sad thing is that the school is right.

          • Rosy 1.1.1.1.1

            Could ease in gently with a 500m parking-free zone and large pedestrian/cycle zones around peimary schools.

            • Lanthanide 1.1.1.1.1.1

              You’d never get a parking-free zone around a school, there’s be massive outcry from the parents. That, and parking isn’t so much the problem it’s the dropping off/picking up where cars are stopped for 2-3 minutes at the most.

  2. Bored 2

    Marty, nice article, nothing I disagree with in terms of interpretation. I am going to sound llike a tired record BUT “growth” is at the core of the problem. In reality if the economy is linked to energy prices then we will have to cope with permanent decline. In which case we should best work out a new way of measuring economic activity and outcomes.

    • ZeeBop 2.1

      Growth isn’t the problem, growth is change, which is the solution. What we need is more growth not less, a different kind of growth, inward growth, organic growth, less is more growth, concentrated growth, not sprawl growth, not lavish growth, not out growths, not more of the same growth we cannot afford.

      • Bored 2.1.1

        Z, you may be right, after all anything you do that produces an outcome could be described as growth. Where it gets interesting is that measuring the aggregate of all of these actions might indicate a decline using current measures. The reason I say this is that “cheap” energy has been a major input in most outputs that have been measured in aggregate as growth. Take away “cheap” energy and the equation changes. Which means that how we measure the “transformative growths” you mention becomes a key issue.

      • Shane Gallagher 2.1.2

        Z – I think you may be confusing “growth” with “development”. Our economy is caught in a boom/bust cycle because is relies totally on growth to remain stable. The second the economy starts to slow down the very things that drive growth then drive collapse (capital flow, efficiency and employment).

        So if we actually want to move to something equitable then we need to move to a steady state economy or zero-growth economy. This doesn’t mean it is stagnant – it is just that we design an economy that is sustainable and doesn’t crucially rely on growth to remain stable. That zero growth economy can develop all it likes as long as it is sustainable and doesn’t affect the ability of the economy to give everyone the necessities of life (secure housing, a job, education, health care etc… ). It is a new concept to be sure – but we cannot grow much more simply because we are running out of everything – land, clean water, energy supplies… To think that we can grow forever is simple insanity.

        • Lanthanide 2.1.2.1

          Everyone keeps saying “zero-growth, sustainable economy” but I’ve never seen what that actually means in practical reality. Nor anyone seriously proposing a model that would work.

          It’s a bit like the 40% CO2 reduction by 2020 campaign. They had stickers and slogans, but I bet a lot of people inside the campaign, let alone people they sucked into it, actually knew the implications of what they were suggesting. Which would be along the lines of ‘petrol priced at $4/l to reduce consumption’ amongst other things.

          • Bored 2.1.2.1.1

            LAN, what it means is the economics of true cost and sustainability. It means that the environmental costs are quantifiable, as are all externalities, and consequently are a recognised chargeable economic cost. It means that finite resources are recognised and managed around. It means that resources that have to be managed, such as fish stocks are managed sustainably. It means recognising the limits of growth and being able to stop over reach. It means a huge challenge because we have never done it before and because we now have to.

            I dont think we will ever get rid of the profit motive, or the individual desire to have more. That seems to be an inate human characteristic. The question becomes how do we prevent our own excesses, or direct them for the common good?

            • Lanthanide 2.1.2.1.1.1

              Ok, that makes more sense. But I think you’re striving for an unachievable goal. Our stock markets do not reach their theoretical efficiency because the are information deficits in the market. That’s with something that humans are completely in control of, and we still can’t manage it. To expect we could price in the costs for damaging the environment (when it is so complex – just look at climate change) is really unbelievable. I think if we did truly cost in the price of everything, we’d end up with no economy at all because almost anything we do harms the environment in some way or another.

              Probably the most sustainable society I can think of off the top of my head would be the Native Americans. But look that their population density compared to modern society, as well as their level of development and pure ‘roughing it’ that they lived with.

              • lprent

                I don’t think that they were paricularly sustainable either. The levels of mass extinctions went up with the population there. There is a lot of argument about how the megafauna there diminished so rapidly after the arrival of humans.

                • ZeeBop

                  Species that understand entropy are better fitted. If your species just mixes all your plastics and glass, etc, into a landfill all you get is some out gasing that you can burn off. Species that survive for the long haul keep low entropy lifestyles. You could say they are thrifty, you may get a run of high entropic exuburance from a low entropy source off fuel that has been baking in the crust for a couple of million years but it runs out. In fact species leave their wasting of resources to mating displays, maxing out in a lavish sports car on the open road should be done a couple of times in a life time not every weekend. The human race is deformed, it spends resource in inane repetitive bouts of mating displays.

                  • M

                    ‘In fact species leave their wasting of resources to mating displays, maxing out in a lavish sports car on the open road should be done a couple of times in a life time not every weekend. The human race is deformed, it spends resource in inane repetitive bouts of mating displays.’

                    Absolutely on the nail ZB.

                    Maybe I’m weird amongst my female cohorts but the thought of some guy trying to impress me with a car is a massive turn-off because my thought patterns automatically go to the resource waste and environmental damage. On the other hand if he rides a bike, walks or gets the bus, yeah, it does it for me.

              • Bored

                Lan, it might come down to things like having to balance a houses useful life span and utility with the ability and timespan to grow the materials…zero ecological balance plus labour.

                Your expectations about no economy if we priced in the cost of damaging the environment is a dilemna. We cant have an economy as we know it today without wrecking the environment: ergo to have the economy we have today we must wreck the environment: end result no environment, no economy. You better believe it.

        • Pete 2.1.2.2

          – but we cannot grow much more simply because we are running out of everything – land, clean water, energy supplies… To think that we can grow forever is simple insanity.

          Something we don’t seem to be running out of is insanity. Don’t you know, before there is nothing left we will have invented something else to run out of.

          • Afewknowthetruth 2.1.2.2.1

            The difference between genius and stupidity is that genius has limits. -Einstein

      • Draco T Bastard 2.1.3

        Nope, as much as economists have tried to explain that their version of the word growth is different from everybody else’s it’s still whether the GDP increased or not that is the measure. A recession is defined by two consecutive quarters with flat or negative GDP growth. What we need is development which comes from research. Make no mistake – the present system is all about financial growth, making rich people richer and not development which makes a community better.

        • Bored 2.1.3.1

          Dont you just love economist lingo.

          Depression = recession
          Big depression = double dip recession
          Equilibrium = flat growth
          Contraction = negative growth
          Watering down of money = financial growth

  3. Sanctuary 3

    Bill English believes the market fairies will save us –

    http://www.bettertransport.org.nz/2011/03/government-has-no-plan-for-high-oil-prices/

    Gareth Hughes: Will the Minister finally support an inquiry into how New Zealand can best protect its economy from high oil prices?

    Hon BILL ENGLISH: Probably not. When we talk about strategies to deal with high oil prices, we see that the fact is that the best strategy is for people to see the price signals and change their behaviour accordingly…

    This is not a policy or a strategy. It is gross and utterly irresponsible wishful thinking from a dogmatic idiot. Such comments might be unsurprising at the ACT party conference, but from the deputy prime minister they represent a total dereliction of duty.

    • Bored 3.1

      Such comments might be unsurprising at the ACT party conference…the natural home of Boag and Kerr and a whole bunch of “business” types advocating the free market. Follow the money, who funds the National Party? English may be the piper but who is paying for the tune?

      • ChrisH 3.1.1

        I agree. Somebody owes somebody something, or else they wouldn’t have handed Rodney Auckland on a plate to trash.

  4. Michael 4

    GDP is inflation adjusted, petrol prices are not. Perhaps you would get a more valid graph by inflation adjusting petrol prices, but I suspect the resulting graph would have a slightly lower correlation.

    • Marty G 4.1

      As you should have read in the post, I did inflation-adjust the petrol prices.

      So there goes that weak attempt at rebuttal. Pretty strong correlation, eh?

      • Shane Gallagher 4.1.1

        Excellent analysis btw Marty!

        • Uroskin 4.1.1.1

          So if the Government reduced the excise on petrol so the price never rises above $1.75 we’re sweet?

          Captcha: move

          • Blighty 4.1.1.1.1

            the govt would just have to raise the money from households some other way, so the drain on consumer demand would be the same.

            • Colonial Viper 4.1.1.1.1.1

              Not if the households being taxed most were the top 5% in terms of incomes/assets: effect on consumer demand would be negligible. Maybe the V6 Beemer would get sold instead of the V8, not a biggie.

  5. Afewknowthetruth 5

    The price of fuel is very liekly to drop in the short term; the chaos in Japan will almost certainly put fear back into ‘the markets’ and is very likely to cause international oil prices to plummet.

    All that will do is prolong the delusion that the oil-based economy has a future, of course.

    Marty G does some very worthwile analysis but he keeps messing up his articles with nonsense like this: ‘providing alternatives to oil ‘.

    And the constant banter about GDP is utterly tiresome. GDP is at the heart of our problems. If we actually want progress we need to use GPI, not GDP..

    I don’t know how many times it has to be said, ten times, a hundred times, a thousand times, ten thousand times: THERE ARE NO ALTERNATIVES TO OIL

    Nothing on this planet is available anything like the quantity (80+ million barrels a day) of oil, has anything approaching the EROEI of oil (currently around 10:1 and falling), or has the energy density of oil. No substance or system of production of anything stacks up as a replacement for oil. This has been demonstrated over and over again by people like Pimmnetel and Fridley …. and people take absolutely no notice.

    The fact is we are rapidly approaching the crash and burn stage (2012-2015) of this global industrial civilisation and 99% of the populace remain oblivious.

    Pretty scary really.

    • Bored 5.1

      AFKTT. Its beat your head against a brick wall, been saying this for years and you wont get thanked. There are some big troubles out there. My prediction is that Saudi Quattros (dromedaries) will again be in vogue in Riyaz within the next 20 years, but the sesame seeds will be in short supply becuse it will be to hot to grow them.

      The only thing we can really do is build our alternative skills and networks. NZ could in effect be a safe port in a storm, I would not hang my hat on the ability of the institutions of the status quo to moor us there.

      • Afewknowthetruth 5.1.1

        Bored.

        I know. Telling the truth is just a hobby now. People do not want to know the truth: they prefer the delusions that correspond with the narrative of empire and consumption of their own support life systems -well in the short term they do. Once it all turns to custard they will be complaining bitterly that nobody warned them it was all unsustainable and about to collapse.

        Regarding change to a more sane way of living, it just will not happen voluntarily. All the systems -central government, local government, policial parties, laws, courts, police, schools, technical instiutions, mainstream media, the AA, sports clubs etc. are geared to protecting and promoting the status quo of industrial empire via ignorance, misinfomration or outright deceit. That is why ‘crash and burn’ looks to be inevitable, I’m afraid.

        People will change their lifestyles because they won’t have the money to buy fuel or groceries, not because they want to change.

        By the way I have already been presented with a ‘Brick Wall Award’.

        • Bored 5.1.1.1

          I had a good laugh at Victorian Farm on TV a month or so ago…the men had a need to transport something. They went to the stables, walked past the tractor (cart horse), rejecting it as too big for the job, and hitched up the quad bike (donkey)….My point is that the solutions to most requirements are well known and often may not require complex industrial society and technology. As you say the real issue is the institutions that cannot envisage things differently or reach backward for alternatives.

          Whats a Brick Wall Award? Who kindly donated it?

          PS Please accept the award for clear sightedness: A Cassandra (bit like a lead plated Oscar).

          • Afewknowthetruth 5.1.1.1.1

            BWA ‘It is better ti bang yiur head against a brick wall than not bang yoiur head against a brick wall’. I was given it for for writng Ten Things Everyone Ought To Know. Presented by a group of aware people in Wellington.

            Yes, Cassandra’s god-given gift was foresight. And her god-given curse was not to be believed.

        • RedLogix 5.1.1.2

          Everytime I see the wankers on Top Gear doing absurd power slides in grossly over-powered cars, literally burning up fuel and rubber at a rate of dollars per second… I cannot but help think petrol is still too cheap.

          • Bored 5.1.1.2.1

            Red, given half a chance I would do it too, looks like fun. Therein lies the problem, its so hard to resist and not do the things we know we should not do, but love to do anyway.

          • M 5.1.1.2.2

            ‘Fraid Top Gear is the ultimate dick compensator show presented by a bunch of buffoons having their last gasp of machismo before the jaws of death come to claim them.

  6. nadis 6

    I’ve seen some investment bank research which suggests that globally, when oil as a share of global GDP hits 5.5% that triggers an impact on growth. At the moment 5.5% equates to $120 a barrel on their metrics. So on a brent = 1/3, wti = 2/3 split oil right now is about $102 but I’d guess oil price should be measured as a quarterly or longer average rather than a point estimate.

    I would guesstimate that NZ has a higher sensitivity to oil prices than say the US as our labour and capital productivity is so much lower.

  7. This 27 page booklet http://oilcrash.com/articles/wilson08.htm is currently being posted to every politician, most mayors of ‘large’ towns, most heads of govt departments, and most ‘department’ heads at Vic Uni.
    I’m sure most copies will end up in the bin.

    • RedLogix 7.1

      Well written and to the point Robert. I think any thoughtful person would know that the world as we know it must come to an end.

      Look on the bright side, maybe most copies will get recycled.

      • Robert Atack 7.1.1

        NB thanks to Derek and his efforts, he is doing all the work on this one.

      • The Baron 7.1.2

        Sorry guys, I reached the completely opposite conclusion. This will be thrown out because it takes 27 pages, with no evidence apart from the author’s passionate prose, to make points that could be made far better.
        Your challenge is the same as that that every activist faces – how to get these people pay attention and take or change their actions.
        Sending a rambly 27 page personal treatise, then lambasting them for not reading it, is not likely to be a winning strategy.

        • Draco T Bastard 7.1.2.1

          So I take it that you completely missed the 2 or 3 pages of references at the bottom?

          Th only reason you reached the “completely opposite conclusion” is because you just don’t want to believe the reality.

        • RedLogix 7.1.2.2

          This will be thrown out because it takes 27 pages, with no evidence apart from the author’s passionate prose, to make points that could be made far better.

          If you had actually read the document, you would have known that it was full of quotes from numerous luminaries… used directly as evidence.

          • Bored 7.1.2.2.1

            I think the Baron may be right that the document will be thrown out: not for the reason he says but for the reasons that his type of thinking and persona represent. None so blind as those who dont want to see, none so deaf as those who dont want to hear.

  8. Steve Withers 8

    I had a discussion about Peak Oil with Tau Henare via Twitter. It went on across a couple of weeks. At first he hadn’t really heard of it at all (this is a month or so ago)….and after a couple of weeks he finished by likening peak oil to alien invasion and consigned it to the tin hat brigade.

    I think that sums up the attitude of the Multi-National Party at this point to the long term implications of oil becoming more expensive. They so far see no problem, their heads apparently being firmly inserted into the topsoil as they are on so many issues. At the very least, they appear to assume the market will sort it out by rewarding and encouraging the development of various technologies that will allow life as we know it to continue more or less without changing. They are, in effect, relying on a faith system to deliver the solution to all the problems…and they don’t pick winners.

    This is clearly not a prudent party with an eye to risk. Religion, market-based or otherwise, is no substitute for prudent planning and preparation.

    Again, we see this Multi-National party government is reckless with our resources.

    • Pete 8.1

      Concerns about running out of finite resources and polluting the planet haven’t just happened in the last couple of years. Has any government anywhere in the world ever addressed this properly yet? Can it be addressed soon enough or by enough to make any difference? Or is it a non-stop juggernaut? Reminds me of some Jethro…

      He hears the silence howling —
      Catches angels as they fall.
      And the all-time winner
      Has got him by the balls.
      He picks up Gideon’s Bible —
      Open at page one —
      God stole the handle and
      The train won’t stop going —
      No way to slow down.

  9. Steve Withers 9

    The challenge, as always, is to make the blind see and the deaf hear. There are keys to unlock these access ports to their minds…..we just have to work out what they are. Being conservatives, it tends be WHO says something rather than the validity of what is being said. That is why people are that way. They lack the ability or the confidence to direct their own minds to a problem…and instead rely on “authorities”. At the oppositie end of the scale is the sort people who join the Greens…who define themselves by independently exercising their curiosity and drawing their own conclusions about what they find. IMHO, this is why the Greens are so fiercely democratic internally while the National Party has very little in the way of ACTUAL internal democracy.

    • Bored 9.1

      Interesting observation on conservatives relying upon who said it…thought about people I know and it rings so true. I my case these are the ones who want the gossip and scandal but have no idea about the issues. The TV reporter wearing shorts actually knows what he is talking about because he is a TV reporter. It must be true.

      Wonder if the corollary of Greens reacting with independent curiosity will be conservatives running for an authority figure to save them (regardless of whether that person is rational / knows anything etc)?

  10. exit lane 10

    fits with what history tells us … Ten of the last 11 recessions were preceded by oil price hikes.
    http://reason.com/archives/2011/03/08/oil-price-shocks-and-the-reces

    and the effect of higher oil prices on NZ GDP and household spending is to take billions from our economy and wallets
    http://oilshockhorrorprobe.blogspot.com/2011/03/earthquake-nz5-billion-oil-quake-more.html

Links to post

Recent Comments

Recent Posts

  • Government support for South Auckland community hit by tornado
    The Government is contributing $100,000 to a Mayoral Relief Fund to support Auckland communities impacted by the Papatoetoe tornado, Acting Minister for Emergency Management Kris Faafoi says. “My heart goes out to the family and friends who have lost a loved one, and to those who have been injured. I ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Celebrating World Refugee Day
    World Refugee Day today is an opportunity to celebrate the proud record New Zealanders have supporting and protecting refugees and acknowledge the contribution these new New Zealanders make to our country, the Minister of Immigration Kris Faafoi said. “World Refugee Day is also a chance to think about the journey ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Face to face meeting delivers significant progress on NZ-UK FTA
    New Zealand and the UK have committed to accelerating their free trade agreement negotiations with the aim of reaching an agreement in principle this August, Trade Minister Damien O’Connor announced. “We’ve held constructive and productive discussions towards the conclusion of a high-quality and comprehensive FTA that will support sustainable and inclusive trade, and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government taking action to protect albatross
    New population figures for the critically endangered Antipodean albatross showing a 5 percent decline per year highlights the importance of reducing all threats to these very special birds, Acting Minister of Conservation Dr Ayesha Verrall says. The latest population modelling, carried out by Dragonfly Data Science, shows the Antipodean albatross ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Adoption laws under review
    New Zealand’s 66-year-old adoption laws are being reviewed, with public engagement beginning today.  Justice Minister Kris Faafoi said the Government is seeking views on options for change to our adoption laws and system. “The Adoption Act has remained largely the same since 1955. We need our adoption laws to reflect ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Wider roll-out of cameras on boats to support sustainability and protect marine life
    Up to 300 inshore commercial fishing vessels will be fitted with on-board cameras by 2024 as part of the Government’s commitment to protect the natural marine environment for future generations.  Minister for Oceans and Fisheries David Parker today announced the funding is now in place for the wider roll out ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Plan for vaccine rollout for general population announced
    New Zealanders over 60 will be offered a vaccination from July 28 and those over 55 from August 11, Prime Minister Jacinda Ardern announced today. The rollout of the vaccine to the general population will be done in age groups as is the approach commonly used overseas, with those over ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand introduces Belarus travel bans
    New Zealand has imposed travel bans on selected individuals associated with the Lukashenko regime, following ongoing concerns about election fraud and human rights abuses after the 2020 Belarus elections, Foreign Affairs Minister Nanaia Mahuta has announced. The ban covers more than fifty individuals, including the President and key members of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ economy grows driven by households, construction and business investment
    The Government’s efforts to secure the recovery have been reflected in the robust rebound of GDP figures released today which show the economy remains resilient despite the ongoing impact of the COVID-19 pandemic, Grant Robertson said. GDP increased 1.6 percent in the first three months of 2021. The Treasury had ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Milestone 250th tower continues to improve rural connectivity
    The Government has welcomed the completion of the 250th 4G mobile tower, as part of its push for better rural connectivity. Waikato’s Wiltsdown, which is roughly 80 kilometres south of Hamilton, is home to the new tower, deployed by the Rural Connectivity Group to enable improved service to 70 homes ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Quarantine Free Travel pause with Victoria to lift on Tuesday
    Following a further public health assessment of the COVID-19 outbreak in greater Melbourne, New Zealand’s Quarantine Free Travel pause with Victoria has been extended to 11.59pm on Tuesday 22 June, COVID-19 Response Minister Chris Hipkins says. It has been determined that the risk to public health in New Zealand continues ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Prime Minister mourns passing of Dr Sir Ian Hassall
    Prime Minister Jacinda Ardern is mourning the passing of Dr Sir Ian Hassall, New Zealand’s first Children’s Commissioner and lifelong champion for children and children’s health. As a paediatrician Sir Ian contributed to a major world-first cot death study that has been directly credited with reducing cot deaths in New ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • APEC structural reform meeting a success
    APEC ministers have agreed working together will be crucial to ensure economies recover from the impact of COVID-19. Minister of Commerce and Consumer Affairs David Clark, chaired the virtual APEC Structural Reform Ministerial Meeting today which revolved around the overarching theme of promoting balanced, inclusive, sustainable, innovative and secure growth ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Digital hub to boost investment in forestry
    A new website has been launched at Fieldays to support the forestry sector find the information it needs to plant, grow and manage trees, and to encourage investment across the wider industry. Forestry Minister Stuart Nash says the new Canopy website is tailored for farmers, iwi and other forestry interests, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government continues support for rangatahi to get into employment, education and training
    Over 230 rangatahi are set to benefit from further funding through four new He Poutama Rangatahi programmes, Minister for Social Development and Employment Carmel Sepuloni announced today. “We’re continuing to secure our economic recovery from COVID by investing in opportunities for rangatahi to get into meaningful employment, education or training ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NCEA subjects up for consultation
    The education sector, students, their parents, whānau and communities are invited to share their thoughts on a list of proposed NCEA subjects released today, Education Minister Chris Hipkins says. This is a significant part of the Government’s NCEA Change Programme that commenced in 2020 and will be largely implemented by ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Major investment in plantain forage programme aims to improve freshwater quality
    The Government is backing a major programme investigating plantain’s potential to help farmers protect waterways and improve freshwater quality, Acting Agriculture Minister Meka Whaitiri announced at Fieldays today. The Sustainable Food and Fibre Futures (SFFF) fund is contributing $8.98 million to the $22.23 million seven-year programme, which aims to deliver ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • America’s Cup decision
    The Minister responsible for the America’s Cup has confirmed the joint Crown-Auckland Council offer to host the next regatta has been declined by the Board of Team New Zealand. “The exclusive period of negotiation between the Crown, Auckland Council, and Team New Zealand ends tomorrow, 17 June,” said Stuart Nash. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Food and fibres sector making significant strides towards New Zealand’s economic recovery
    The Government is backing the food and fibres sector to lead New Zealand's economic recovery from COVID-19 with targeted investments as part of its Fit for a Better World roadmap, Forestry Minister Stuart Nash said. “To drive New Zealand’s recovery, we launched the Fit for a Better World – Accelerating ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech to He Whenua Taurikura – New Zealand’s annual hui on countering terrorism and violent...
    Check against delivery Can I begin by acknowledging the 51 shuhada, their families and the Muslim community. It is because of the atrocious violent act that was done to them which has led ultimately to this, the start of a dialogue and a conversation about how we as a nation ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Cost of Government Southern Response proactive package released
    The Government has announced the proactive package for some Southern Response policyholders could cost $313 million if all those eligible apply. In December, the Minister Responsible for the Earthquake Commission, David Clark announced a proactive package for SRES claimants who settled their claims before October 2014. It trailed the judgment ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New support to reduce emissions from public building and construction projects
    Government agencies are getting new support to reduce carbon emissions generated by construction of new buildings, with the release of practical guidance to shape decisions on public projects. The Ministers for Building and Construction and for Economic Development say a new Procurement Guide will help government agencies, private sector suppliers, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • He Whenua Taurikura: New Zealand’s first Hui on Countering Terrorism and Violent Extremism
    The Prime Minister has opened New Zealand’s first hui on Countering Terrorism and Violent Extremism, which is being held in Christchurch over the next two days. The hui delivers on one of the recommendations from the report of the Royal Commission of Inquiry into the terrorist attack on Christchurch masjidain ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech to inaugural Countering Terrorism Hui
    E aku nui, e aku rahi, Te whaka-kanohi mai o rātou mā, Ru-ruku-tia i runga i te ngākau whakapono, Ru-ruku-tia i runga i te ngākau aroha, Waitaha, Ngāti Mamoe, Ngai Tahu, nāu rā te reo pohiri. Tena tātou katoa. Ki te kotahi te kakaho ka whati, ki te kapuia, e ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Campaign shines a light on elder abuse
    A new campaign is shining a spotlight on elder abuse, and urging people to protect older New Zealanders. Launched on World Elder Abuse Awareness Day, the Office for Seniors’ campaign encourages friends, whānau and neighbours to look for the signs of abuse, which is often hidden in plain sight. “Research suggests ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Farewelling sports administrator and philanthropist Sir Eion Edgar
    Sport and Recreation Minister Grant Robertson today expressed his sorrow at the passing of Sir Eion Edgar – a leading sports administrator and celebrated philanthropist who has made a significant impact both within and beyond the sport sector. “Sir Eion’s energy, drive and generosity has been truly immense. He leaves ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government to apologise for Dawn Raids
    The Government will make a formal apology for the wrongs committed during the Dawn Raids of the 1970’s. Between 1974 and 1976, a series of rigorous immigration enforcement policies were carried out that resulted in targeted raids on the homes of Pacific families. The raids to find, convict and deport overstayers ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Humanitarian support for Bangladesh and Myanmar
    Foreign Affairs Minister Nanaia Mahuta today announced that New Zealand is providing NZ $8.25 million in humanitarian assistance to support refugees and their host populations in Bangladesh and to support humanitarian need of internally displaced and conflict affected people in Myanmar.  “Nearly four years after 900,000 Rohingya crossed the border ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Poroporoaki: Dame Georgina Kamiria Kirby
    E Te Kōkō Tangiwai, Te Tuhi Mareikura, Te Kākākura Pokai kua riro i a matou. He toka tū moana ākinga ā tai, ākinga ā hau, ākinga ā ngaru tūātea.  Haere atu rā ki te mūrau a te tini, ki te wenerau a te mano.  E tae koe ki ngā rire ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Feedback sought on future of housing and urban development
    New Zealanders are encouraged to have their say on a long-term vision for housing and urban development to guide future work, the Housing Minister Megan Woods has announced. Consultation starts today on a Government Policy Statement on Housing and Urban Development (GPS-HUD), which will support the long-term direction of Aotearoa ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Clean car package to drive down emissions
    New rebates for electric and plug-in hybrid vehicles start July 1 with up to $8,625 for new vehicles and $3,450 for used. Electric vehicle chargers now available every 75km along most state highways to give Kiwis confidence. Low Emission Transport Fund will have nearly four times the funding by 2023 ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Progress towards simpler process for changing sex on birth certificates
    The Government is taking the next step to support transgender, non-binary and intersex New Zealanders, by progressing the Births, Deaths, Marriages and Relationships Registration Bill, Minister of Internal Affairs, Jan Tinetti announced today. “This Government understands that self-identification is a significant issue for transgender, non-binary and intersex New Zealanders, and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Crown speeds up engagement with takutai moana applicants
    The Crown is taking a new approach to takutai moana applications to give all applicants an opportunity to engage with the Crown and better support the Māori-Crown relationship, Treaty of Waitangi Negotiations Minister Andrew Little says. Following discussions with applicant groups, the Crown has reviewed the existing takutai moana application ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Alcohol and Other Drug Treatment (AODT) Court opens
    The Minister of Justice, Kris Faafoi, and the Minister for Courts, Aupito William Sio, have welcomed the opening of a new Alcohol and Other Drug Treatment (AODT) Court in Hamilton. The AODT Court (Te Whare Whakapiki Wairua) addresses situations where substance abuse and offending are intertwined. “New Zealanders have told ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • EU and UK FTAs top of list for first ministerial trip since COVID-19
    Trade and Export Growth Minister Damien O’Connor today announced details of his planned visit to the United Kingdom and European Union next week, where he will hold trade and agriculture discussions to further New Zealand’s economic recovery from COVID-19. The visit will add political weight to ongoing negotiations with both the EU ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Arihia Bennett to chair Royal Commission Ministerial Advisory Group
    Te Rūnanga o Ngāi Tahu chief executive Arihia Bennett MNZM has been appointed chair of the newly appointed Ministerial Advisory Group on the Government’s Response to the Royal Commission of Inquiry into the terrorist attack on Christchurch mosques. “Twenty-eight people from diverse backgrounds across Aotearoa have been selected for the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to the New Zealand Medical Association General Practitioners' Conference, Rotorua
    Ki ngā pou maha o te whare hauora o Aotearoa, kei te mihiTo the pillars of our health system I acknowledge/thank you Ki te ope hapai hauora o roto o tēnei rūma, kei te mihi To our health force here in the room today, I acknowledge/thank you He taura tangata, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Karangahape Road upgrades are streets ahead
    The upgrades to Karangahape Road makes the iconic street more pedestrian and cycle-friendly, attractive and environmentally sustainable, Transport Minister Michael Wood and Auckland Mayor Phil Goff said at the formal celebration of the completion of the Karangahape Road Enhancements project. The project included widening footpaths supporting a better outdoor dining ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to APEC business event
    E ngā tumu herenga waka, ākina ā ngaru, ākina ā tai ka whakatere ngā waka ki te whakapapa pounamu, otirā, ki Tamaki o ngā waka Tena koutou katoa… To the great leaders assembled, who guided your waka through turbulent times, challenging waters and you continue to navigate your respective waka ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pause on Quarantine Free Travel with Victoria extended
    Following an assessment of the COVID-19 outbreak in greater Melbourne, New Zealand’s Quarantine Free Travel pause with Victoria will continue for a further seven days, COVID-19 Response Minister Chris Hipkins says. There are now 93 cases associated with the outbreak in greater Melbourne, spread over four clusters. Contact tracing efforts ...
    BeehiveBy beehive.govt.nz
    1 week ago