$7.5 billion surplus

Written By: - Date published: 2:08 pm, October 8th, 2019 - 101 comments
Categories: budget 2017, Economy, grant robertson, Politics - Tags:

 
The government has just unveiled a $7.5 billion surplus.
 
Treasury announced today that:
 
  • The Government’s surplus has increased $2b to $7.5b
  • Net Government debt has fallen to 19.2 per cent of GDP, down from 19.9 per cent a year ago
  • The total DHB deficit widened to $1 billion
  • Total Government revenue increased $6.2 billion to $86.5 billion.

The surplus unveiled today is $4b higher than what was expected in May’s Budget – and $2b higher than the actual surplus unveiled this time last year.

The NZ Herald notes that:

Part of the reason for the $2b increase in the surplus is largely down to a revaluation of New Zealand’s railway. A change in the way the government-owned rail assets were valued contributed to the surplus being $2.6 billion higher than expected.

One-off changes to the way tax was calculated also contributed to the surplus.”

What should they spend it on?

Or is this a bit smoke-and-mirrors?

101 comments on “$7.5 billion surplus ”

  • Comments are now closed

  1. Booker 1
    8 October 2019 at 2:18 pm

    Good luck to National trying to spin this one. Labour = good economic management, and they consistently produce the numbers to back that up.

    • Chris 1.2
      8 October 2019 at 9:07 pm

      "Labour = good economic management, and they consistently produce the numbers to back that up."

      Yes, but the nats and their mates still successfully spin the opposite story, and it's the lie that Labour is hopeless at economic management the right rely upon to claim "business confidence is low". This manufactured "fact" of low business confidence is then used to counter Labour's good economic management. The truth seldom suits the right hence it's MO of using lies as the basis for almost everything it says and does.

      Labour needs to strike while the iron's hot and use this current surplus to bust the myth once and for all that historically blows the right out of the water when it comes to the economy. There needs to be a concerted effort to do this because not only is the general belief is the opposite, the effect this myth has on the public psyche is significant.

      • Booker 1.2.1
        8 October 2019 at 10:31 pm

        All good points. That voxy story Clive linked to above cracks me up – National just can't drop talking about measly tax cuts and roads. What a broken record.

  2. Stuart Munro. 2
    8 October 2019 at 2:32 pm

    I think some of this is Cullen's legacy, and revaluing assets can be misleading. Nevertheless it's a strong result, a vast improvement on the Gnat omnishambles, and a spike in some of those attack memes they're trying to build like "part-time" and the broken ruler pics.

  3. alwyn 3
    8 October 2019 at 2:34 pm

    Perhaps Robbie will find the nerve to tell Genter where to get off.

    Wellington needs the money to fix its transport woes now rather than putting off things like the second Mt Vic tunnel for a decade or so as Genter has apparently demanded. We can't be absolutely clear about that of course as she refuses to release the information to OIA requests. When is the Ombudsman going to come to a decision?

    We could also do with getting a proper, safe, highway through from Otaki to Levin. We want it now.

    Come on Robertson. You are meant to represent Wellington. Well do so. Stop spending your time trying to cover up for your mate who was in the Labour Party Leader's Office. Do what we elected you to do.

    • Dukeofurl 3.1
      8 October 2019 at 2:48 pm

      Road Transport funding isnt done from the Consolidated Revenue. Where is the 'surplus' from the Land Transport Fund and why should Wellington be 'getting it'

      Robertson is a wellington MP, the money spent is allocated by the Board of LTNZ according to broad government guidelines , not the whim of the Finance Minister

      • cleangreen 3.1.1
        9 October 2019 at 10:11 pm

        Dukeofurl I heartily agree with you as Wellington was eager to allow all their freight to be trucked through to our region waking us up all night with 24/7 truck movements though to Napier Napier port instead of using rail so Wellington can get stuffed.

        Has anyone woken to why roads carrying legions of logs and freight are being destroyed by truck vibrations?

        The facts are in now.
        http://www.scoop.co.nz/stories/PO1910/S00094/nz-roads-will-never-cope-with-heavier-trucks.htm

        So best we use rail as the reconstruction of rail is far cheaper than resurrecting roads as the land use is so small by comparison.

        • Ad 3.1.1.1
          10 October 2019 at 6:24 am

          If Labour get in next year, they can open a good few of the new motorways National started.

    • Sacha 3.2
      9 October 2019 at 7:21 pm

      Wah, I want a road and a tunnel!

      Evidence-based policy says the next stage of improving transport in Wellington is about reliable public transit from railway to airport, not more lanes for cars with the odd bus jammed between them. Get used to it.

    • Ad 3.3
      10 October 2019 at 6:23 am

      The Greens are substantially boxed in by Labour and NZF.

      I'd even be surprised if there's an all-gases climate bill now.

  4. Enough is Enough 4
    8 October 2019 at 2:35 pm

    Why the fuck are they sticking with their austerity strategy?

    This is a neo-liberal government if they are holding onto surpluses this large while we have record waiting lists for social housing, child poverty has increased and we have an infrastructure deficit.

    We have unprecedented cheap credit and should be taking advantage of that.

    FFS – Stop acting like a Tory Government and start spending that surplus where it is needed

    • Peter 4.1
      8 October 2019 at 2:44 pm

      Spend the money so the defectives on the other side can go berserk about election bribery and/or say they wasted the money. Then go and vote for National so the Proper World order can be restored and they can bitch about the cupboard being bare.

    • Dukeofurl 4.2
      8 October 2019 at 2:50 pm

      You havent read the notes, there is NO CASH surplus 'to spend', revaluations of assets arent spending money.

      Where is the austerity you talk about?

    • Adrian Thornton 4.3
      8 October 2019 at 3:52 pm

      "FFS – Stop acting like a Tory Government and start spending that surplus where it is needed"…you forget that these people (Labour) are Free Market Liberal Capitalists not some sort of left leaning Socialist do gooders who would stupidly put housing and health and education first..their ideology has more in common with Nationals (or the Tories ) than it does with that espoused by Corbyn or Sanders.

  5. Herodotus 5
    8 October 2019 at 2:44 pm

    So at the time there were strong valid reasons for pay increases, the govt stated they had no money. Yet just now they have found $2b to add to the surplus thru changes in nzrail valuations. They did not know that when these pay demands were made. How DISHONEST is that !!🤥 any changes in accounting treatment would have been known well before this disclosure. I hope those with outstanding pay claims make the most of this announcement.

    • Dukeofurl 5.1
      8 October 2019 at 3:12 pm

      Most of the pay increases came through, the changes in working conditions werent all improved which was a big demand

  6. Psycho Milt 6
    8 October 2019 at 2:46 pm

    I think they're on a hiding to nothing. Nat supporters will find ways to claim it's all smoke and mirrors to conceal the serious lasting damage these commies are doing to the country's economy, and Labour/Green supporters will mostly be highly pissed off that the government's building up a surplus instead of spending the money on whatever is that individual's primary concern.

    I'm surprised The Chairman isn't here expressing concern that this looks very bad for "Jacinda" – did they cop a ban or something?

  7. Siobhan 7
    8 October 2019 at 2:46 pm

    If I didn't pay all my basic housing costs, my medical and dental expenses, maintenance and update on my mode of transport, etc..resulting in even greater costs down the track..then ran around crowing about how much money I had sitting in my bank account people would think I was deluded.

    ditto…a Labour lead Government.

    You'll never get Transformative Change under Austerity rules.

    https://www.rnz.co.nz/news/national/400491/women-denied-treatment-for-gynaecological-conditions

  8. McFlock 8
    8 October 2019 at 2:47 pm

    The surplus unveiled today is $4b higher than what was expected in May’s Budget

    lol even if the rail revaluing was $2B, Treasury was out by 100% in a prediction for just a few months later. Economics is bunk.

    Personally, I'd put more money towards health and benefit levels. And tell the business confidence surveys and tory economists to go spin.

    • The Al1en 8.1
      8 October 2019 at 2:52 pm

      I was just going to mention the business confidence surveys and how negative they are… And these people are the comptrollers in the engine room of our economy? Heavens help us all.

    • Adrian Thornton 8.2
      8 October 2019 at 3:41 pm

      "Personally, I'd put more money towards health and benefit levels. And tell the business confidence surveys and tory economists to go spin"…totally agree with that comment, except that won't happen ( or if it does, it will be incrementally introduced of course) because Labour is guided in it's every move by it's Liberal/Free market/Capitalist economists and ideology…they talk a lot, put on a shit load of 'working groups', pay a ton of consultants, but actually do sweet fuck all.

      Will quite possibly be remembered as one of the most ineffectual Labour govt's of the modern period, against some other pretty lackluster contenders.

      Turn Labour Left!

      • McFlock 8.2.1
        8 October 2019 at 4:21 pm

        🙄

        If Labour were a little bit further Left they'd not have gone into coalition with NZ1 and we'd have a nat/NZ1 govt at the moment. I'll take "ineffectual" over "outright harmful".

        • lprent 8.2.1.1
          8 October 2019 at 6:07 pm

          Generally my opinion as well.

          Personally I'm always amused when I see people complaining that the centre-left or centre-right aren't going far enough left or right respectively, when there simply isn't the support amongst the bulk of the voters for going that far.

          Of course the real issue is that the complainants haven't been able to convince enough of their fellow citizens to drive the politicians there.

          Politicians are always the weather vanes of public opinion rather than the producers of weather.

          In a MMP environment or anything that is even moderately representational they don't (as a group) hew to what a majority of the public are willing to accept, then they don't get voted in. That governs their lives. You see this even in a caucus. They don't demand changes if they can't get enough of their caucus members to agree.

          And that is before you look at coalition politics.

          Really they have to have a damn good story that resonates with enough of the public, caucus, and coalition before something even slightly extreme will happen. And complaining about it seldom does anything. Coming up with a good idea and a story tat sells it is far more efficacious.

      • observer 8.2.2
        8 October 2019 at 4:41 pm

        Count to 61, Adrian.

        Ardern is no fool. She is on track for a Labour-Green majority at the next election. She understands (even if some on the "left" do not) that the best way to get lasting left government is to wait for NZF to die. Odds are that will happen in 2020.

        In the meantime the PM plays nice with Winston. She is killing him with kindness, and it's very smart … too smart for some, I fear.

        • Dukeofurl 8.2.2.1
          8 October 2019 at 8:11 pm

          Labour will aim to have both Greens AND NZF on side in a broader coalition.

          Thats the method Clark and Key used sucessfully over 18 yrs.

          Having two party coalition will both blow apart the major party and the minor one. Multi party coalitions hep diffuse the issues and pressures.

          • McFlock 8.2.2.1.1
            8 October 2019 at 9:17 pm

            A solid likelihood, to be surebut I think the other lesson coming to the fore is that even if you leave someone out of the coalition, give them space for policy wins and don't alienate them – if the nats hadn't tried to fuck Winston, Bill English might still be PM today.

  9. karol121 9
    8 October 2019 at 3:10 pm

    What to spend it on?

    It's already pre-spent is it not? And that 7.5 bill would not likely have even touched the sides.

    Ledgers black are vogue, until they become a dark, black ledger splotch.

    Maybe Graeme Hart might be prepared to chip in a billion for and on the behalf of government so as to more effectively improve our national adult dental health scheme. The non-subsidised retail, dental practice scheme, that is.

    Well, at least the dental health subsidy for children in NZ is about to turn 100 years of age.

  10. ianmac 10
    8 October 2019 at 3:22 pm

    "Of course we left the strong economy in such a good state that it is shameful that all that Robertson could manage was a miserable $7.5 billion surplus. If we were in our rightful place as Government the surplus would be at least $15billion. Disaster as usual by this Ardern shambles," said Bridges with Prime Ministerial aplomb.

  11. Ken 11
    8 October 2019 at 3:39 pm

    Spend most of it on wild women and liquor…..squander the rest.

    • Karol121 11.1
      1 November 2019 at 4:28 pm

      Agreed Ken.

      If you've got it, spend it like there's no tomorrow, and when that's finished, CHARGE IT.

      devil

  12. observer 12
    8 October 2019 at 4:46 pm

    If NZ had high inflation, high unemployment, high interest rates and a big deficit, the "Business Confidence Survey" would be bad.

    Fortunately, we have low inflation, low unemployment, low interest rates and a big surplus. So naturally the "Business Confidence Survey" is … oh.

    In other news, a survey of All Blacks fans shows a very low level of confidence in Australia winning the rugby world cup. It's almost as if they don't like the other team.

    • Ken 12.1
      8 October 2019 at 7:15 pm

      I think "business" is having a crisis of confidence.

      Perhaps they need to see a therapist.

  13. mac1 13
    8 October 2019 at 4:53 pm

    “This is $7.5B stolen from the pockets of ordinary Kiwis.

    This money should be returned to the off-shore accounts of ordinary Kiwi mums and dads. Further rebates should be returned to those 10% of hard-working Kiwis who pay more than one set of rates for owning Sounds baches, holiday homes and capital gains ghost houses which they don't live in…….

    Did I mention also the discounts payable to owners of high petrol use vehicles to offset the road user charges not paid by EV owners?” continued Simon Bridges. “This money could build bridges in Northland, too, as the goverment promised,” Bridges went on.

  14. greywarshark 14
    8 October 2019 at 4:58 pm

    Can the old guys shift off the pot. Knock knock – When are you going to come out of the money closet? Can't hear anything, are you still alive in there? Perhaps the song goes 'It's now Orr never.'

    We will swing and sway if Labourcan only get tuneful – and think of the children and the future. (https://www.youtube.com/watch?v=hli1fuk8zQQ

  15. bwaghorn 15
    8 October 2019 at 5:54 pm

    Any one on the left that cant see this as a good thing is to stupid to comment on politics.

    You cant do fuck all from opposition and part of winning elections in nz is showing sound fiscal management.

    Oh and now they get to open the throttle a bit more on all the good things a functioning democracy can do.

    • mike 15.1
      8 October 2019 at 6:11 pm

      Couldn't have put it better myself.

    • Nic the NZer 15.2
      8 October 2019 at 6:26 pm

      Government surpluses (or deficits) are neither good or bad things. The appropriate surplus or deficit depends on the surrounding economic context. There are some general implications of surpluses which may provide a more nuanced view however.

      The net shrinkage of government debt has by accounting matched the net shrinkage in non government savings. You can decide if its presently a good thing for NZers to be finding it tougher to save.

      Also of relevance here, as the monopoly currency issuer the NZ govt can't save in its own currency.

    • Herodotus 15.3
      8 October 2019 at 7:02 pm

      Are you for real, anyone on the left how is labour any different from national ? Different faces same direction for NZ. So we have a nice face now as PM, so 10,20 or 50 years time how will history differentiate John Key from Helen Or our current PM ?

      At least the greens early 2000 were consistent to following their ideals now we have a girls can follow a leftist policy (fletcher land) boys are establishment and the 2 cannot co-exist.

      Don’t divert from the centre. How will that allow NZ to progress we go with how the current flows 🤢good or bad

      • Dukeofurl 15.3.1
        8 October 2019 at 8:06 pm

        How many votes did your party get . 1500?

        If labour needed to be 'more left' there would a lot of votes in that area. There isnt. Power comes from the centre

        • Herodotus 15.3.1.1
          8 October 2019 at 8:33 pm

          unfortunately I am not our deputy pm, nor Colin craig or Gareth Morgan so I don’t have a party that follows the cult of personality.

          So following your comment we only marginally sway from moderately left or right ? No wonder we are fu$&@/. So don’t bother to comment should you think we need to venture more than the middle of the road, because jacinda will not take us any other direction the John took us. I am thinking lemmings and cliffs 🤔

          [Corrected typo in user handle]

    • Naki man 15.4
      8 October 2019 at 8:17 pm

      They will probably wait until election year

  16. David Mac 16
    8 October 2019 at 6:19 pm

    I'm struggling to understand what our position is. Have we got 7.5 billion in our wallet or have we just said 'Lets value Kiwirail at this much.'

    • Nic the NZer 16.1
      8 October 2019 at 6:28 pm

      Its neither. As a currency issuer the NZ govt always has the same spending capacity regardless of its present debt, surplus or deficit position.

      • David Mac 16.1.1
        8 October 2019 at 6:36 pm

        Do they have an endless supply of disposable dollars? Sounds like a free lunch to me.

        • Nic the NZer 16.1.1.1
          8 October 2019 at 6:40 pm

          Yes, the reserve bank is part of the government and is legally the sole issuer of $NZ. We (should) actually judge the governments spending for its effects on the economy, not for a spurious accounting balance.

          • David Mac 16.1.1.1.1
            8 October 2019 at 6:50 pm

            Hmm yeah. We need to keep our currency geared to the global money-go-round Nic.

            I'm many miles from a bank that can help me Nic and I've arrived home with a pocketful of South American currencies, I don't spose you could convert some Bolivar for me could you sport?

            • Nic the NZer 16.1.1.1.1.1
              8 October 2019 at 7:00 pm

              Not sure what this means. The reserve bank doesn't target the exchange rate, that is allowed to float in most cases. In fact tieing the exchange rate to the US is one causes of Venezuela importing inflation.

              • David Mac …
                8 October 2019 at 7:08 pm

                I'm sure you're smart enough to see the ramifications for a government that decides to create a bank balance that will fund their extended wish-list.

                I'm not sure why you're ignoring the voice that is whispering to you 'We can't just put 2 zeroes on the end of our bank balance bro."

                • Nic the NZer …
                  8 October 2019 at 7:23 pm

                  Good, you agree then its all about the economic outcomes. As I said,

                  "We (should) actually judge the governments spending for its effects on the economy, not for a spurious accounting balance."

              • Pat …
                8 October 2019 at 7:18 pm

                it may not "target the exchange rate" but it dosnt ignore it.

                • David Mac …
                  8 October 2019 at 7:27 pm

                  Being geared to all the other currencies of the world is a good thing. We're just useless at making the most of our situation. I think our logs should be Ikea desk-tops and our tonnes of milk powder 500 ml tubs of Kiwi household fridge ready goodness.

                  A log is worth $1000. As matches $100,000.

                  • Pat …
                    8 October 2019 at 7:31 pm

                    easier said than done…..especially when the buyer wants to support their own industry…..which is not to say it shouldnt be the goal but there are contradictory forces at work and by and large our exports are available elsewhere so we have little in the way of leverage

                    • David Mac …
                      8 October 2019 at 7:41 pm

                      So quit? OK, I'm going fishing…

                      Or how about we make a concerted effort to live up to our 100% Pure handle, cut herd levels by 25%, clean up waterways and create markets for a premium priced ethical product, surf on the back of our ever enhanced reputation.

                      It's hard not to wonder why it appears Fonterra couldn't organise a thickshake in a milkbar.

                  • Pat …
                    8 October 2019 at 7:44 pm

                    read what I wrote…did I say quit?….I believe I said we have little leverage. There is one area we have a unique product and weve been flogging that for all its worth for 20 odd years…care to guess what that might be?

                    • David Mac …
                      8 October 2019 at 7:59 pm

                      There is an open cast mine quite close to me in the Far North. It employs a few people and basic infrastructure. They extract clay suitable for the finest ceramics in the world. I believe most of their shipments go to Wedgewood. Are you referring to the extraordinary properties of possum fur Pat? Yeah, huge potential. They and Polar bears are the only animals that have the fabulous natural insulation qualities of hollow fur fibres. I have a jersey that is as soft as cashmere and is like wearing an electric blanket.

                  • Pat …
                    8 October 2019 at 8:02 pm

                    No David…your guess isnt even close, and I must self correct, we havnt been flogging it for all its worth, weve been having a bargain basement sale….and the product is residency

                    • David Mac …
                      8 October 2019 at 8:15 pm

                      Ahhh yes. A popular product sold on our behalf.

                      The better life we can create for New Zealanders the more attractive we become as a place to migrate to.

                      It's a Catch 22 situation highlighted by things like refugees that had no intention of settling along the way, they were Sweden bound. Who can blame them, it's exactly what I'd do. It's human to thrive.

                      While we can't be bothered picking our own apples and need to get a man in, I think we construct our own diminishing resources. We get what we ask for.

                  • Pat …
                    8 October 2019 at 8:19 pm

                    curiously I dont recall being asked whether I wanted a population of 15 million or not

                    • David Mac …
                      8 October 2019 at 8:23 pm

                      We vote em in. They make the calls on our behalf. If enough of us feel ripped off, we chuck em out.

                    • Descendant Of Smith …
                      9 October 2019 at 6:10 am

                      Should have taken that up with the last government who was letting them in and allowing them to work more than the previous one.

                  • Pat …
                    8 October 2019 at 8:28 pm

                    and if they both have the same undeclared policy?

  17. David Mac 17
    8 October 2019 at 6:35 pm

    Kiwirail assets are worth more money. Immense land holdings, lots of it in prime locations.

    As a business proposition the collective assets are a money pit. Worth heaps but run at a chronic loss. We choose to live with the fiscally disastrous rail network. Viva la Choo Choo.

    As a business, a million a week loser. As an appreciating asset, yep but for it to be money in our wallet I think we'd need to turn the downtown shunting yards into Waitemata Harbour-side apartments

    • Dukeofurl 17.1
      8 October 2019 at 8:05 pm

      No its not . The asset base is the albatross as its depreciation is the large majority of the accounting loss. Not a large cash loss. Operationally it might even be cash positive. Cant afford new capital expenditure though, especially for Interisland ferries.

      Same goes for DHB 'losses' , depreciation covers most of it and actual cash losses are fairly small ( apart from this year for one off holiday pay correction)

      • Dukeofurl 17.1.1
        8 October 2019 at 8:19 pm

        Kiwirail 2018 revenue $615 mill

        Expenses $567 mill

        Operating surplus $48 mill

        For some reason there was a $220 'Earthquake impairment'.

        Government contribution was only $40 mill capital grants

        How old are you? Downtown shunting yards went 30 years ago.

    • Psycho Milt 17.2
      8 October 2019 at 8:22 pm

      Worth heaps but run at a chronic loss.

      The loss pales into insignificance compared to sewerage and wastewater systems, roads, pretty much any infrastructure you care to name. Is there any particular reason the rail network should be looked on simply as a business rather than infrastructure?

      • David Mac 17.2.1
        8 October 2019 at 8:47 pm

        Yeah, we could add the increased value of the sewerage infrastructure and make it a 9 billion surplus.

        I'm making a bit of a Chairman of myself here but I don't think we're as rich as we think we are.

        • Psycho Milt 17.2.1.1
          9 October 2019 at 7:29 am

          Accountants move in ways that make God's mysteries seem mundane, their wonders to perform.

          • lprent 17.2.1.1.1
            9 October 2019 at 7:59 am

            Ah but the language of accountants is the most opaque of all of the old professions. I did an MBA just to learn the language because I was tired of trying to figure out what they were saying when I was running a factory.

            Turned out to be both straight forward and easy to learn. The language was just short-hand (and way less esoteric than the computing babble that I learnt later).

            If you really want obtuse, then try law. Balancing legal principles to a judgment is an artform rather than something as simple as accounting.

  18. Grant not Robertson 18
    8 October 2019 at 9:04 pm

    Well good for Nic the NZer – I’m glad that someone here has a rudimentary grasp of economics.

  19. SPC 19
    8 October 2019 at 11:33 pm

    Only two real figures

    1. Net Government debt has fallen to 19.2 per cent of GDP, down from 19.9 per cent a year ago.

    So the debt target (under 20% debt to GDP by 2020/2021) has been easily achieved and given the looser target for 2023 is not a constraint (assisted by Housing Corp doing some of is own borrowing – balanced by its growing land and housing asset value).

    2. The total DHB deficit widened to $1 billion.

    Given the cash deficit this is a bit of a problem and indicates the government is not in a position for a spend up. In that sense, “$7.5B budget surplus” misleads most of the public.

    While the government is able to borrow to finance a budget deficit (and remain within 20% debt to GDP), it will remain constrained by its commitment for government to spend less than 30% GDP (until after the 2020 election when the Labour-Green agreement on this comes to an end – and Greens do not want to continue with it).

  20. Descendant Of Smith 20
    9 October 2019 at 6:05 am

    This is just a game that the two parties play and is about as useful as pissing on a sand castle.

    National comes in writes down the value of Kiwi rail, Labour comes in values it back up.

    Been going on for ages. One of the things I've noticed over the years. Seen this happen with lots of government assets – national often lowering the valuation when they want to sell stuff off. Economics – pretty much as scientific as astrology.

    2019

    "The final valuation of KiwiRail was $369 million – more than half the price the Government paid for it.

    The Labour government bought TranzRail from Toll on July 1 last year for $690m. A provisional valuation in the government financial statements in September 2008 put the value at $442m. Today Transport Minister Steven Joyce said the final valuation by PriceWaterhouseCoopers was $388.29m.

    A Treasury report said a fair value for KiwiRail at the purchase date would have been $369.54m."

    http://www.stuff.co.nz/national/2553607/KiwiRail-only-worth-369-million

    2012

    "BUSINESSDESK: KiwiRail is to be restructured and its land holdings shifted to another entity, with a writedown of some $6.7 billion that will result in $1.8 billion being added to the government’s operating deficit this financial year."

    https://www.nbr.co.nz/article/kiwirail-loses-land-wiping-67-billion-asset-base-wb-122170

    • Dukeofurl 20.1
      9 October 2019 at 10:02 am

      Thanks for getting the numbers.

      With the DHB they too have 'valuation' issues. Open a brand new hospital building , say worth $900 mill and depreciation suddenly turns your balance deep into the red…..oh woe.

      There really needs to be better public accounting measures for non profits that are owned by government and local bodies. Railways , DHBs arent really in the 'red' as headlines suggest for the general public

  21. belladonna 21
    9 October 2019 at 11:03 am

    They could fix up rest homes with the surplus, they are a disgrace but who cares about the sick and elderly. Another broken promise from Labour.

    • David Mac 21.1
      9 October 2019 at 12:37 pm

      The Baby-boom bubble are now 55 -74 years old. I think over the next 15 years we might see demand for rest home beds climb and the family house market ease. We should be preparing for this now and I agree Bella, a sensible area in which to invest some of any surplus. Statistically, older people vote more.

      This from a Senior net website…

      "By 2036, it’s projected:

      • Around one in 4.5 New Zealanders will be aged 65-plus
      • That's 1,258,500 million people
      • It's an additional 547,300 over 65's, up from a total of 711,200 in 2016.
      • Or a 77 per cent increase

      Contrast that with the under 14s:

      • There will be 991,900 children by 2036
      • It's an extra 70,400 under 14s, up from 921,500 in 2016
      • It represents only a 7.6 per cent increase"
    • Sacha 21.2
      9 October 2019 at 7:54 pm

      If you put another billion into rest home subsidies tomorrow, much of it will disappear into only a few corporate accounts in foreign banks.

      In-home care needs more funding to keep older people out of expensive facilities. However there is more money to be made from property investment so corporates are snapping up sprawling retirement villages, pocketing govt care subsidies, paying themselves a tidy profit and putting their hands out for more. Let's not be taken for mugs.

  22. belladonna 22
    9 October 2019 at 3:52 pm

    REST HOMES>

    $1.60 a day I have heard is the allowance for food, carers are overworked and underpaid b ut do their best and the reports in the paper of residents with maggots in their wounds just disgusts me. What on earth can you buy for $1.60 a day for food in this day and age. Labour dId say they would sort it but havent, at the expense of what. I have voted Labour all of my life, helped out at elections&; but never again

  23. A 23
    9 October 2019 at 7:45 pm

    Pay for full costs of disabilities. That's the best use of money other than paying down debt.

  24. cleangreen 24
    9 October 2019 at 10:17 pm

    Another labour coalition Government awaits.

    Good action from Minister of transport reigning in the toxic NZTA again.

    Minister of Transport Phil Twyford is now appropriately putting the heat on NZTA quote; ‘obstructive tactics”

    • CEAC and NHTCF has never been fairly treated by NZTA through all our attempted efforts to have NZTA give fair urban mitigation from traffic.
    • CEAC under OIA requested documents from NZTA two months ago and was refused our request for OIA documents for NZTA activities 1995 to 2019, a reasonable request as we were beginning a study of NZTA activities inside our ‘Napier urban zones to Napier port.’

    Also today we heard a statement on ‘Magic – drive at 4.40pm with news hubs Ryan Bridge interview with Phil Twyford.

    Mr Twyford stated that he is directing NZTA policy to begin a slowing down of all transport speeds for road safety, – to lowered settings in cities and rural areas and this will be positive for us all. We will be following this policy as it unfolds.

    http://www.scoop.co.nz/stories/PO1910/S00094/nz-roads-will-never-cope-with-heavier-trucks.htm

    The ‘Road Transport Forum, (RTF) does not want lower speeds.
    Response from the trucking lobbyist Nick Leggett quote;
    Road Transport Forum chief executive Nick Leggett said those proposals, which included recovering a fairer proportion of costs from a wider group of road users, could see the a pendulum swing into over-regulation and more expense put on road users
    “We’re concerned that throwing more money into regulation will see investment in road maintenance suffer.”

    https://www.magic.co.nz/home/shows/talk/magic-drive.html – The Bridge/Twyford audio pod is not appearing on their website yet.
    https://www.magic.co.nz/home/shows/talk/magic-drive.html
    Earlier press on this policy was in the press February and June. Here are those sites.
    https://www.newshub.co.nz/home/new-zealand/2019/02/revealed-the-auckland-roads-set-to-get-lower-speed-limits.html
    https://www.newstalkzb.co.nz/on-air/the-country/audio/jacinda-ardern-lower-speed-limits-part-of-reducing-the-road-toll/
    https://www.newshub.co.nz/home/new-zealand/2019/10/former-nzta-worker-frustrated-by-agency-s-failure-to-follow-regulatory-process.html

    [Where did you get the quote from Nick Leggett from? Why did you not put this in block-quote nor did you use quotation marks? You can correct your omission until 12 noon tomorrow. Because you have been warned about this before, this is your last one and next time, if there’s one, you’ll receive an immediate ban – Incognito]

    [Banned until Monday 2019-10-14, for failing to provide proper attribution of quote and not making clear which text has been quoted, e.g. by using quotation marks or block-quote. Because of your history of this behaviour, subsequent bans for the same behaviour will escalate – Incognito]

    • Incognito 24.1
      9 October 2019 at 10:37 pm

      See my Moderation note @ 10:17 PM.

    • Ad 24.2
      10 October 2019 at 6:20 am

      If I get the time I will do something on this announcement.

      There are a lot of gradual accumulative factors to the road toll increase, across the entire transport regulation field.

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