A MPI boondoggle subsidy for Wairarapa land speculators?

Written By: - Date published: 9:17 am, September 21st, 2016 - 23 comments
Categories: benefits, Economy, farming - Tags: , , , , ,

You have to wonder about the quality of some of the economic process control that goes on for National’s politically important subsidies to the farming industry. Idling through the email this morning, I ran across an economic review of a Wairarapa Water application for second stage feasibility funding from the Irrigation Acceleration Fund for the “Black Creek” and “Tividale” irrigation schemes.

The review was commissioned by Fish & Game and came to me via Greenpeace.

It is a proposal to irrigate 10,000 hectare area, a process that would cause ecological and environmental damage to a significiant area and its waterways (something that this analysis doesn’t cover). I’m not particularly a conservationist, however any degradation in the environment, especially one funded by taxpayers should carry significiant and obvious economic returns. This one clearly does not, and never did. The executive summary states (the review authors bold)…

The economic assessment in WW’s IAF funding application is based on analysis from a 2014 report by Butcher Partners1 (the ‘Butcher Report’). This report assumed a long run farm gate milk price of $7.07 per kilogram of milk solids (kgMS), which leads to a further assumption that 55% of the irrigated area will be intensive dairy farms or dairy support. Whilst a long run milk price above $7.00 kgMS was questionable in 2014, given changes in international dairy markets it is a completely unrealistic basis for decision making in 2016.

fonterra-payout-aug-25-16Say what! They are planning this project on the basis of a sustained sale return that is far higher in real terms than any that has ever been attained by the international dairy industry. That is an assumption that can only be described as being crackpot!

A few years ago we had a couple of farmgate spikes in milk solid payouts (see graph from interest.co.nz) because of the drought and a later rapid uptake in China. But there has is hardly sustained growth over the last 15 years especially after you factor out the accumulated inflation and currency fluctuations.

The review author’s analysis is deadly accurate. It focuses on the dairy because even the WW’s analysis indicates that the irrigation for horticulture would be of minimal use in expanding horticulture in the region.

WW provide the following land use table showing approximate existing and prospective land uses in the absence and presence of irrigation.
landusetable

The crux of economic viability is in the milk solid prices, and the prospects for that are quite limited.

21. Over the past two years there has been significant turbulence in international dairy markets, with near record low prices. It is my view there has been a structural change in international dairy prices, driven the following:

a. The end of EU milk quotas, which means Europe is now an unconstrained dairy exporter with the intention to ‘grow with the market’

b. The emergence, over the past decade, of the US as a formidable dairy exporter – especially in terms of skim milk powder (SMP)

c. China promoting import substituting domestic production

d. Very low stock feed costs making feedlot production internationally competitive.

22. In terms of the long run farm gate milk price, an industry consensus on the ‘new normal’ is yet to emerge. My best professional estimate of a credible medium to long milk price assumption is $5.00 kgMS +/- $1.00. Whilst there is an exchange rate issue to consider, the intuition is a product mix price below $4.00 is unlikely to be economic for the majority of dairy producers internationally (so represents a market ‘bottom’) whereas prices in excess of $6.00 will attract ‘swing’ producers (such as the USA) into the market (thereby providing a ‘top’ – because at that price feedlots are internationally competitive and production can be quickly expanded).

23. Whilst prices will occur outside of this range, they are most likely to be examples of markets under or over shooting due to exogenous shocks (i.e. a drought in a pastorally-based supplier such as Australia or New Zealand). It is therefore foolhardy to assume sustained farm gate milk prices outside of the $4.00-$6.00 range.

24. The corollary is continuing to employ a 2013 milk price assumption of $7.07 kgMS in 2016 is simply not credible. This problem becomes even more pronounced as the entire proposal is critically dependent on that very assumption. The result is a highly misleading portrayal of the scheme’s economic feasibility.

This is pretty much what informed observer looking at the economics on the international dairy trade tends to think (with the probable exception of sustaining cheap feedlot feed costs). NZ is unusual in that we produce a very large exported surplus of milk based largely on cheap grass. That is why Fonterra tends to dominate the international dairy trade. However

As the review points out, for the soil types in the region this means that for most of the price range, even if the irrigation water was free, dairy would simply not be profitable.

profit1

Applying even minimal costs to water just make that far worse.

40. Given a water price of 25 cents per m3 is uneconomic, it is instructive to undertake
sensitivity analysis by discounting the water to 10 cents per m3; thereby changing the
midpoint water cost from $1,000 per hectare to only $400.

profit2

As the author of the review points out, it is damn hard to see why the Ministry for Primary Industries are even considering this request (or any previous ones).

This scheme just looks to me like a boondoggle because it is there to cause the creation or expansion of a dairy industry in the Wairarapa. Which kind of defeats the purpose of the Irrigation Acceleration Fund

Nathan Guy, the Minister for Primary Industries explained it in a press release for Budget 2015:-

“The need for more water storage projects is obvious given that nearly every part of the country has suffered through drought at some stage over the past three years.

“Providing a reliable water supply for farmers and growers has massive potential to boost growth, creating jobs and exports in provincial regions.”

Around 100,000 hectares of new irrigated areas are expected from IAF-funded projects to date, with around 36,000 hectares of that commissioned or currently being constructed.

The IAF helps support the development of irrigation infrastructure proposals to the stage where they are investment ready, which means they must be commercially robust and demonstrate a high level of community support.

The Government also supports these projects through the Crown Irrigation Investments Ltd (CIIL), which acts as a bridging investor for regional water infrastructure development. $120 million has been allocated to CIIL over the last two years with the potential to provide a further 125,000 hectares of new irrigation.

But with the ridiculous inflated assumptions for milk solid prices in this case that isn’t the case. Firstly because there isn’t a large dairy farming there in the first place, and most of that is on river flats. And to make it profitable at even moderate water prices, you’d have to assume grossly inflated returns. At those prices the resulting dairy farms will be competing directly with feedlots which don’t have the setup costs of irrigation.

This particular scheme looks to me to be a subsidy being pushed into the Minister’s neighbouring electorate, and the only benefit will be to land speculation and a few consultants hired by Wairarapa Water. It hardly fulfils the stated economic intentions of the irrigation fund. It just looks like ineffective and uneconomic boondoggle pork by National.

23 comments on “A MPI boondoggle subsidy for Wairarapa land speculators? ”

  • Comments are now closed

  1. RedLogix 1
    21 September 2016 at 9:34 am

    The Wairarapa could use a reliable source of water for all manner of valuable purposes; the place could be transformed. We lived there for five years and I often imagined all the possibilities this scheme could be put to.

    But literally siphoning it off into more dairy is just plain bone-headed.

    • lprent 1.1
      21 September 2016 at 10:44 am

      Scattered topography and varied soils mean that micro-schemes make a whole lot more sense. Target local exiting dairy areas for security of water supply and areas capable of doing horticulture. Charge for the water to let local owners make a realistic choice. Use the state to put the schemes in without significant operational subsidy.

      That looks viable. This 10k ha (and further 20k Ha later) looks pretty useless

    • Draco T Bastard 1.2
      21 September 2016 at 11:53 am

      Looking at the report the best thing we could do is re-plant the whole lot as native forest and leaving it as wilderness. In a few hundred years we’d have a great supply of native timber.

  3. ropata 3
    21 September 2016 at 9:54 am

    All of NZ’s careful water management and saving for a not rainy day, subverted by the usual suspects.

    if prosperity for a few farmers = death for ecosystems and communities, it's not worth it https://t.co/bZj0vDUyrz— ɥɔsǝdɐd qoɹ (@ropata) September 19, 2016

    An abandoned rope swing next to a polluted river shd be new logo of Fed @FedFarmers #Selwyn https://t.co/sqnrKvDQAA pic.twitter.com/h3s52rAxb2— Russel Norman (@RusselNorman) September 19, 2016

    • RedLogix 3.1
      21 September 2016 at 9:59 am

      Yes … like many kiwis my age I can recall summers swimming in our creeks and streams. You’d be in and out like an eel for hours, and that night your hair and skin would be soft and smooth like a baby’s. A few years back as we drove past one spot, I got out of the car, sneaked across the paddock and took a look.

      I probably should have known better.

      • joe90 3.1.1
        21 September 2016 at 10:12 am

        A few weeks ago I stopped at the Moutoa sluice gates and had a squiz at the Manawatu. Admittedly it was in flood but the water was absolutely putrid.

  4. Lanthanide 4
    21 September 2016 at 10:54 am

    I suspect that the milk and beef markets are going to be decimated inside of 10 years with lab-grown milk and beef anyway.

    • dukeofurl 4.1
      21 September 2016 at 11:20 am

      Oh really ! This takes the cake for blue sky dreaming

      • Andre 4.1.1
        21 September 2016 at 11:28 am

        Jeez I hope Lanth is right. I love me my burgers and sausages, and I’d prefer they came from something a bit better than e.coli ridden abbatoir floor sweepings and the bits of animal that can’t be sold any other way. Plus, for my dairy I’d rather it was a bit more hygienic than something squeezed out of of a cow just downhill from the sewage outfalls. Steaks and roasts will be quite a trick, tho.

      • Draco T Bastard 4.1.2
        21 September 2016 at 12:00 pm

        http://gizmodo.com/the-future-will-be-full-of-lab-grown-meat-1720874704

        In 2013, the world’s first lab-grown burger was unveiled to the world. It carried a $330,000 price tag, and apparently, it wasn’t all that tasty. But the scientists behind the idea have been hard at work, and artificial meat that’s both cost-effective and palatable may arrive sooner than we think.

  5. Richard Rawshark 5
    21 September 2016 at 12:17 pm

    Were talking Nathan Guy here, Mr Business.

    never mind the fishing rules, nothing applies to Nathan when he’s in charge. Banana republic minister?. No offence to some corrupt African country, but even they wouldn’t hire him.

  6. b waghorn 6
    21 September 2016 at 1:10 pm

    All irrigation should owned and run by the government so they can dictate what the water is used for.
    When the greens and others come at irrigation from a 100% no way perspective they completely cut themselves out of having any positive input into how schemes can be run, they may win a few battles but in the long run they will lose the war with their attitude .

  7. gsays 7
    21 September 2016 at 1:20 pm

    It is not that long ago that lots of the wairarapa was considered ‘summer safe’.

    Perhaps the felling of the trees in the district is coming back to bite farmers in the bum.

    However if you have a once-ler attitude and must keep on biggering then dam away.

  8. DH 8
    21 September 2016 at 4:25 pm

    I can recall reading some similar data on the Canterbury irrigation scheme. If I recall correctly the irrigation cost per hectare was only viable for dairy and only at the high prices they were getting for milk solids at the time. Sheep & beef weren’t economic.

    I haven’t been able to find any recent costings, would be interesting to see if the figures have changed or been massaged.

  9. save nz 9
    21 September 2016 at 5:13 pm

    Great post.

  10. Esoteric Pineapples 10
    21 September 2016 at 9:56 pm

    Almost the entire population of the Wairarapa is asleep on this, especially the three councils. Masterton councillors questions to Bob Francis, head of the project when he asked for $20,000 toward a report to show how good the dam would be for the region were banal. There is a general acceptance in the comnunity that the dam is a good thing and while there is a lot of talk from everyone about wanting to improve the health of the rivers, there is not the slightest awareness or acknowledgement of the harm more dairy will do.

    Aside from that,Greater Wellington has had a practice for the past 10 years of cross blading all the major rivers in the Wairarapa for erosion control and flood management. This involves bulldozing the rivers which removes all the pools and eddies fish need to rest and survive in. The two likely contenders for the Wairarapa seat on Greater Wellington -Adrienne Staples and David Holmes – both support the dam. Staples says she would consider a review of cross blading. The media in the Wairarapa have been almost asleep on both issues.

  11. Ad 11
    22 September 2016 at 10:01 am

    Outstanding post Lyn.

    You might want to have a look at Proifessor Paul Spoonley’s new book on

  12. Ad 12
    22 September 2016 at 10:01 am

    Outstanding post Lyn.

    You might want to have a look at Proifessor Paul Spoonley’s new book on

  13. Ad 13
    22 September 2016 at 10:01 am

    Outstanding post Lyn.

    You might want to have a look at Proifessor Paul Spoonley’s new book on

  14. Ad 14
    22 September 2016 at 10:04 am

    Outstanding post Lyn.
    Kinda have to wonder why Horizons Regional Council still exists.

    You might want to have a look at Proifessor Paul Spoonley’s new book on New Zealand rural centre depopulation and depopulation.

    Getting to accept that in many rural places, economic stasis is there to stay and so are its related social dynamics.

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    Hi,I spent about a year on Webworm reporting on an abusive megachurch called Arise, and it made me want to stab my eyes out with a fork.I don’t regret that reporting in 2022 and 2023 — I am proud of it — but it made me angry.Over three main stories ...
    David FarrierBy David Farrier
    3 days ago

  • Vic Uni shows how under threat free speech is
    The new Victoria University Vice-Chancellor decided to have a forum at the university about free speech and academic freedom as it is obviously a topical issue, and the Government is looking at legislating some carrots or sticks for universities to uphold their obligations under the Education and Training Act. They ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Winston remembers Gettysburg.
    Do you remember when Melania Trump got caught out using a speech that sounded awfully like one Michelle Obama had given? Uncannily so.Well it turns out that Abraham Lincoln is to Winston Peters as Michelle was to Melania. With the ANZAC speech Uncle Winston gave at Gallipoli having much in ...
    Nick’s KōreroBy Nick Rockel
    4 days ago

  • 25
    She was born 25 years ago today in North Shore hospital. Her eyes were closed tightly shut, her mouth was silently moving. The whole theatre was all quiet intensity as they marked her a 2 on the APGAR test. A one-minute eternity later, she was an 8.  The universe was ...
    More Than A FeildingBy David Slack
    4 days ago

  • Fact Brief – Is Antarctica gaining land ice?
    Skeptical Science is partnering with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. This fact brief was written by Sue Bin Park in collaboration with members from our Skeptical Science team. You can submit claims you think need checking via the tipline. Is Antarctica gaining land ice? ...
    Skeptical Science
    4 days ago

  • Policing protests.
    Images of US students (and others) protesting and setting up tent cities on US university campuses have been broadcast world wide and clearly demonstrate the growing rifts in US society caused by US policy toward Israel and Israel’s prosecution of … Continue reading → ...
    KiwipoliticoBy Pablo
    5 days ago

  • Open letter to Hon Paul Goldsmith
    Barrie Saunders writes – Dear Paul As the new Minister of Media and Communications, you will be inundated with heaps of free advice and special pleading, all in the national interest of course. For what it’s worth here is my assessment: Traditional broadcasting free to air content through ...
    Point of OrderBy poonzteam5443
    5 days ago

  • Bryce Edwards: FastTrackWatch – The Case for the Government’s Fast Track Bill
    Many criticisms are being made of the Government’s Fast Track Approvals Bill, including by this writer. But as with everything in politics, every story has two sides, and both deserve attention. It’s important to understand what the Government is trying to achieve and its arguments for such a bold reform. ...
    Democracy ProjectBy bryce.edwards
    5 days ago

  • Luxon gets out his butcher’s knife – briefly
    Peter Dunne writes –  The great nineteenth British Prime Minister, William Gladstone, once observed that “the first essential for a Prime Minister is to be a good butcher.” When a later British Prime Minister, Harold Macmillan, sacked a third of his Cabinet in July 1962, in what became ...
    Point of OrderBy poonzteam5443
    5 days ago

  • More tax for less
    Ele Ludemann writes – New Zealanders had the OECD’s second highest tax increase last year: New Zealanders faced the second-biggest tax raises in the developed world last year, the Organisation for Economic Cooperation and Development (OECD) says. The intergovernmental agency said the average change in personal income tax ...
    Point of OrderBy poonzteam5443
    5 days ago

  • Real News vs Fake News.
    We all know something’s not right with our elections. The spread of misinformation, people being targeted with soundbites and emotional triggers that ignore the facts, even the truth, and influence their votes.The use of technology to produce deep fakes. How can you tell if something is real or not? Can ...
    Nick’s KōreroBy Nick Rockel
    5 days ago

  • Another way to roll
    Hello! Here comes the Saturday edition of More Than A Feilding, catching you up on the past week’s editions.Share ...
    More Than A FeildingBy David Slack
    5 days ago

  • Simon Clark: The climate lies you'll hear this year
    This video includes conclusions of the creator climate scientist Dr. Simon Clark. It is presented to our readers as an informed perspective. Please see video description for references (if any). This year you will be lied to! Simon Clark helps prebunk some misleading statements you'll hear about climate. The video includes ...
    Skeptical Science
    5 days ago

  • Cutting the Public Service
    It is all very well cutting the backrooms of public agencies but it may compromise the frontlines. One of the frustrations of the Productivity Commission’s 2017 review of universities is that while it observed that their non-academic staff were increasing faster than their academic staff, it did not bother to ...
    PunditBy Brian Easton
    5 days ago

  • Luxon’s demoted ministers might take comfort from the British politician who bounced back after th...
    Buzz from the Beehive Two speeches delivered by Foreign Affairs Minister Winston Peters at Anzac Day ceremonies in Turkey are the only new posts on the government’s official website since the PM announced his Cabinet shake-up. In one of the speeches, Peters stated the obvious:  we live in a troubled ...
    Point of OrderBy Bob Edlin
    5 days ago

  • This is how I roll over
    1. Which of these would you not expect to read in The Waikato Invader?a. Luxon is here to do business, don’t you worry about thatb. Mr KPI expects results, and you better believe itc. This decisive man of action is getting me all hot and excitedd. Melissa Lee is how ...
    More Than A FeildingBy David Slack
    5 days ago

  • The Waitangi Tribunal is not “a roving Commission”…
    …it has a restricted jurisdiction which must not be abused: it is not an inquisition   NOTE – this article was published before the High Court ruled that Karen Chhour does not have to appear before the Waitangi Tribunal Gary Judd writes –  The High Court ...
    Point of OrderBy poonzteam5443
    6 days ago

  • Is Oranga Tamariki guilty of neglect?
    Lindsay Mitchell writes – One of reasons Oranga Tamariki exists is to prevent child neglect. But could the organisation itself be guilty of the same? Oranga Tamariki’s statistics show a decrease in the number and age of children in care. “There are less children ...
    Point of OrderBy Bob Edlin
    6 days ago

  • Three Strikes saw lower reoffending
    David Farrar writes: Graeme Edgeler wrote in 2017: In the first five years after three strikes came into effect 5248 offenders received a ‘first strike’ (that is, a “stage-1 conviction” under the three strikes sentencing regime), and 68 offenders received a ‘second strike’. In the five years prior to ...
    Point of OrderBy poonzteam5443
    6 days ago

  • Luxon’s ruthless show of strength is perfect for our angry era
    Bryce Edwards writes – Prime Minister Christopher Luxon has surprised everyone with his ruthlessness in sacking two of his ministers from their crucial portfolios. Removing ministers for poor performance after only five months in the job just doesn’t normally happen in politics. That’s refreshing and will be extremely ...
    Point of OrderBy poonzteam5443
    6 days ago

  • 'Lacks attention to detail and is creating double-standards.'
    TL;DR: These are the six things that stood out to me in news and commentary on Aotearoa-NZ’s political economy in the two days to 6:06am on Thursday, April 25:Politics: PM Christopher Luxon has set up a dual standard for ministerial competence by demoting two National Cabinet ministers while leaving also-struggling ...
    The KakaBy Bernard Hickey
    6 days ago

  • One Night Only!
    Hi,Today I mainly want to share some of your thoughts about the recent piece I wrote about success and failure, and the forces that seemingly guide our lives. But first, a quick bit of housekeeping: I am doing a Webworm popup in Los Angeles on Saturday May 11 at 2pm. ...
    David FarrierBy David Farrier
    6 days ago

  • What did Melissa Lee do?
    It is hard to see what Melissa Lee might have done to “save” the media. National went into the election with no public media policy and appears not to have developed one subsequently. Lee claimed that she had prepared a policy paper before the election but it had been decided ...
    PolitikBy Richard Harman
    6 days ago

  • Skeptical Science New Research for Week #17 2024
    Open access notables Ice acceleration and rotation in the Greenland Ice Sheet interior in recent decades, Løkkegaard et al., Communications Earth & Environment: In the past two decades, mass loss from the Greenland ice sheet has accelerated, partly due to the speedup of glaciers. However, uncertainty in speed derived from satellite products ...
    Skeptical Science
    6 days ago

  • Maori Party (with “disgust”) draws attention to Chhour’s race after the High Court rules on Wa...
    Buzz from the Beehive A statement from Children’s Minister Karen Chhour – yet to be posted on the Government’s official website – arrived in Point of Order’s email in-tray last night. It welcomes the High Court ruling on whether the Waitangi Tribunal can demand she appear before it. It does ...
    Point of OrderBy Bob Edlin
    6 days ago

  • Who’s Going Up The Media Mountain?
    Mr Bombastic: Ironically, the media the academic experts wanted is, in many ways, the media they got. In place of the tyrannical editors of yesteryear, advancing without fear or favour the interests of the ruling class; the New Zealand news media of today boasts a troop of enlightened journalists dedicated to ...
    Bowalley Road
    7 days ago

  • “That's how I roll”
    It's hard times try to make a livingYou wake up every morning in the unforgivingOut there somewhere in the cityThere's people living lives without mercy or pityI feel good, yeah I'm feeling fineI feel better then I have for the longest timeI think these pills have been good for meI ...
    Nick’s KōreroBy Nick Rockel
    7 days ago

  • “Comity” versus the rule of law
    In 1974, the US Supreme Court issued its decision in United States v. Nixon, finding that the President was not a King, but was subject to the law and was required to turn over the evidence of his wrongdoing to the courts. It was a landmark decision for the rule ...
    No Right TurnBy Idiot/Savant
    1 week ago

  • Aotearoa: a live lab for failed Right-wing socio-economic zombie experiments once more…
    Every day now just seems to bring in more fresh meat for the grinder. In their relentlessly ideological drive to cut back on the “excessive bloat” (as they see it) of the previous Labour-led government, on the mountains of evidence accumulated in such a short period of time do not ...
    exhALANtBy exhalantblog
    1 week ago

  • Water is at the heart of farmers’ struggle to survive in Benin
    This is a re-post from Yale Climate Connections by Megan Valére Sosou Market gardening site of the Itchèléré de Itagui agricultural cooperative in Dassa-Zoumè (Image credit: Megan Valère Sossou) For the residents of Dassa-Zoumè, a city in the West African country of Benin, choosing between drinking water and having enough ...
    Skeptical Science
    1 week ago

  • At a time of media turmoil, Melissa had nothing to proclaim as Minister – and now she has been dem...
    Buzz from the Beehive   Melissa Lee – as may be discerned from the screenshot above – has not been demoted for doing something seriously wrong as Minister of ...
    Point of OrderBy Bob Edlin
    1 week ago

  • Minister acknowledges passing of Sir Robert Martin (KNZM)
    New Zealand lost a true legend when internationally renowned disability advocate Sir Robert Martin (KNZM) passed away at his home in Whanganui last night, Disabilities Issues Minister Louise Upston says. “Our Government’s thoughts are with his wife Lynda, family and community, those he has worked with, the disability community in ...
    BeehiveBy beehive.govt.nz
    8 hours ago

  • Speech to New Zealand Institute of International Affairs, Parliament – Annual Lecture: Challenges ...
    Good evening –   Before discussing the challenges and opportunities facing New Zealand’s foreign policy, we’d like to first acknowledge the New Zealand Institute of International Affairs. You have contributed to debates about New Zealand foreign policy over a long period of time, and we thank you for hosting us.  ...
    BeehiveBy beehive.govt.nz
    8 hours ago

  • Accelerating airport security lines
    From today, passengers travelling internationally from Auckland Airport will be able to keep laptops and liquids in their carry-on bags for security screening thanks to new technology, Transport Minister Simeon Brown says. “Creating a more efficient and seamless travel experience is important for holidaymakers and businesses, enabling faster movement through ...
    BeehiveBy beehive.govt.nz
    11 hours ago

  • Community hui to talk about kina barrens
    People with an interest in the health of Northland’s marine ecosystems are invited to a public meeting to discuss how to deal with kina barrens, Oceans and Fisheries Minister Shane Jones says. Mr Jones will lead the discussion, which will take place on Friday, 10 May, at Awanui Hotel in ...
    BeehiveBy beehive.govt.nz
    16 hours ago

  • Kiwi exporters win as NZ-EU FTA enters into force
    Kiwi exporters are $100 million better off today with the NZ EU FTA entering into force says Trade Minister Todd McClay. “This is all part of our plan to grow the economy. New Zealand's prosperity depends on international trade, making up 60 per cent of the country’s total economic activity. ...
    BeehiveBy beehive.govt.nz
    16 hours ago

  • Mining resurgence a welcome sign
    There are heartening signs that the extractive sector is once again becoming an attractive prospect for investors and a source of economic prosperity for New Zealand, Resources Minister Shane Jones says. “The beginnings of a resurgence in extractive industries are apparent in media reports of the sector in the past ...
    BeehiveBy beehive.govt.nz
    18 hours ago

  • Ō-Rākau Remembrance Bill passes first reading
    The return of the historic Ō-Rākau battle site to the descendants of those who fought there moved one step closer today with the first reading of Te Pire mō Ō-Rākau, Te Pae o Maumahara / The Ō-Rākau Remembrance Bill. The Bill will entrust the 9.7-hectare battle site, five kilometres west ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government to boost public EV charging network
    Energy Minister Simeon Brown has announced 25 new high-speed EV charging hubs along key routes between major urban centres and outlined the Government’s plan to supercharge New Zealand’s EV infrastructure.  The hubs will each have several chargers and be capable of charging at least four – and up to 10 ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Residential Property Managers Bill to not progress
    The coalition Government will not proceed with the previous Government’s plans to regulate residential property managers, Housing Minister Chris Bishop says. “I have written to the Chairperson of the Social Services and Community Committee to inform him that the Government does not intend to support the Residential Property Managers Bill ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Independent review into disability support services
    The Government has announced an independent review into the disability support system funded by the Ministry of Disabled People – Whaikaha. Disability Issues Minister Louise Upston says the review will look at what can be done to strengthen the long-term sustainability of Disability Support Services to provide disabled people and ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Justice Minister updates UN on law & order plan
    Justice Minister Paul Goldsmith has attended the Universal Periodic Review in Geneva and outlined the Government’s plan to restore law and order. “Speaking to the United Nations Human Rights Council provided us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while responding to issues and ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Ending emergency housing motels in Rotorua
    The Government and Rotorua Lakes Council are committed to working closely together to end the use of contracted emergency housing motels in Rotorua. Associate Minister of Housing (Social Housing) Tama Potaka says the Government remains committed to ending the long-term use of contracted emergency housing motels in Rotorua by the ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Trade Minister travels to Riyadh, OECD, and Dubai
    Trade Minister Todd McClay heads overseas today for high-level trade talks in the Gulf region, and a key OECD meeting in Paris. Mr McClay will travel to Riyadh to meet with counterparts from Saudi Arabia and the Gulf Cooperation Council (GCC). “New Zealand’s goods and services exports to the Gulf region ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Education priorities focused on lifting achievement
    Education Minister Erica Stanford has outlined six education priorities to deliver a world-leading education system that sets Kiwi kids up for future success. “I’m putting ambition, achievement and outcomes at the heart of our education system. I want every child to be inspired and engaged in their learning so they ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • NZTA App first step towards digital driver licence
    The new NZ Transport Agency (NZTA) App is a secure ‘one stop shop’ to provide the services drivers need, Transport Minister Simeon Brown and Digitising Government Minister Judith Collins say.  “The NZTA App will enable an easier way for Kiwis to pay for Vehicle Registration and Road User Charges (RUC). ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Supporting whānau out of emergency housing
    Whānau with tamariki growing up in emergency housing motels will be prioritised for social housing starting this week, says Associate Housing Minister Tama Potaka. “Giving these whānau a better opportunity to build healthy stable lives for themselves and future generations is an essential part of the Government’s goal of reducing ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Tribute to Dave O'Sullivan
    Racing Minister Winston Peters has paid tribute to an icon of the industry with the recent passing of Dave O’Sullivan (OBE). “Our sympathies are with the O’Sullivan family with the sad news of Dave O’Sullivan’s recent passing,” Mr Peters says. “His contribution to racing, initially as a jockey and then ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Speech – Eid al-Fitr
    Assalaamu alaikum, greetings to you all. Eid Mubarak, everyone! I want to extend my warmest wishes to you and everyone celebrating this joyous occasion. It is a pleasure to be here. I have enjoyed Eid celebrations at Parliament before, but this is my first time joining you as the Minister ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Government saves access to medicines
    Associate Health Minister David Seymour has announced Pharmac’s largest ever budget of $6.294 billion over four years, fixing a $1.774 billion fiscal cliff.    “Access to medicines is a crucial part of many Kiwis’ lives. We’ve committed to a budget allocation of $1.774 billion over four years so Kiwis are ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Pharmac Chair appointed
    Hon Paula Bennett has been appointed as member and chair of the Pharmac board, Associate Health Minister David Seymour announced today. "Pharmac is a critical part of New Zealand's health system and plays a significant role in ensuring that Kiwis have the best possible access to medicines,” says Mr Seymour. ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Taking action on Fetal Alcohol Spectrum Disorder
    Hundreds of New Zealand families affected by Fetal Alcohol Spectrum Disorder (FASD) will benefit from a new Government focus on prevention and treatment, says Health Minister Dr Shane Reti. “We know FASD is a leading cause of preventable intellectual and neurodevelopmental disability in New Zealand,” Dr Reti says.  “Every day, ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • New sports complex opens in Kaikohe
    Regional Development Minister Shane Jones today attended the official opening of Kaikohe’s new $14.7 million sports complex. “The completion of the Kaikohe Multi Sports Complex is a fantastic achievement for the Far North,” Mr Jones says. “This facility not only fulfils a long-held dream for local athletes, but also creates ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Diplomacy needed more than ever
    Foreign Minister Winston Peters’ engagements in Türkiye this week underlined the importance of diplomacy to meet growing global challenges.    “Returning to the Gallipoli Peninsula to represent New Zealand at Anzac commemorations was a sombre reminder of the critical importance of diplomacy for de-escalating conflicts and easing tensions,” Mr Peters ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Anzac Commemorative Address, Buttes New British Cemetery Belgium
    Ambassador Millar, Burgemeester, Vandepitte, Excellencies, military representatives, distinguished guests, ladies and gentlemen – good morning and welcome to this sacred Anzac Day dawn service.  It is an honour to be here on behalf of the Government and people of New Zealand at Buttes New British Cemetery, Polygon Wood – a deeply ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Anzac Commemorative Address – NZ National Service, Chunuk Bair
    Distinguished guests -   It is an honour to return once again to this site which, as the resting place for so many of our war-dead, has become a sacred place for generations of New Zealanders.   Our presence here and at the other special spaces of Gallipoli is made ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • Anzac Commemorative Address – Dawn Service, Gallipoli, Türkiye
    Mai ia tawhiti pamamao, te moana nui a Kiwa, kua tae whakaiti mai matou, ki to koutou papa whenua. No koutou te tapuwae, no matou te tapuwae, kua honoa pumautia.   Ko nga toa kua hinga nei, o te Waipounamu, o te Ika a Maui, he okioki tahi me o ...
    BeehiveBy beehive.govt.nz
    6 days ago

  • PM announces changes to portfolios
    Paul Goldsmith will take on responsibility for the Media and Communications portfolio, while Louise Upston will pick up the Disability Issues portfolio, Prime Minister Christopher Luxon announced today. “Our Government is relentlessly focused on getting New Zealand back on track. As issues change in prominence, I plan to adjust Ministerial ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • New catch limits for unique fishery areas
    Recreational catch limits will be reduced in areas of Fiordland and the Chatham Islands to help keep those fisheries healthy and sustainable, Oceans and Fisheries Minister Shane Jones says. The lower recreational daily catch limits for a range of finfish and shellfish species caught in the Fiordland Marine Area and ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Minister welcomes hydrogen milestone
    Energy Minister Simeon Brown has welcomed an important milestone in New Zealand’s hydrogen future, with the opening of the country’s first network of hydrogen refuelling stations in Wiri. “I want to congratulate the team at Hiringa Energy and its partners K one W one (K1W1), Mitsui & Co New Zealand ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Urgent changes to system through first RMA Amendment Bill
    The coalition Government is delivering on its commitment to improve resource management laws and give greater certainty to consent applicants, with a Bill to amend the Resource Management Act (RMA) expected to be introduced to Parliament next month. RMA Reform Minister Chris Bishop has today outlined the first RMA Amendment ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Overseas decommissioning models considered
    Overseas models for regulating the oil and gas sector, including their decommissioning regimes, are being carefully scrutinised as a potential template for New Zealand’s own sector, Resources Minister Shane Jones says. The Coalition Government is focused on rebuilding investor confidence in New Zealand’s energy sector as it looks to strengthen ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Release of North Island Severe Weather Event Inquiry
    Emergency Management and Recovery Minister Mark Mitchell has today released the Report of the Government Inquiry into the response to the North Island Severe Weather Events. “The report shows that New Zealand’s emergency management system is not fit-for-purpose and there are some significant gaps we need to address,” Mr Mitchell ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Justice Minister to attend Human Rights Council
    Justice Minister Paul Goldsmith is today travelling to Europe where he’ll update the United Nations Human Rights Council on the Government’s work to restore law and order.  “Attending the Universal Periodic Review in Geneva provides us with an opportunity to present New Zealand’s human rights progress, priorities, and challenges, while ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Patterson reopens world’s largest wool scouring facility
    Associate Agriculture Minister, Mark Patterson, formally reopened the world’s largest wool processing facility today in Awatoto, Napier, following a $50 million rebuild and refurbishment project. “The reopening of this facility will significantly lift the economic opportunities available to New Zealand’s wool sector, which already accounts for 20 per cent of ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Speech to the Southland Otago Regional Engineering Collective Summit, 18 April 2024
    Hon Andrew Bayly, Minister for Small Business and Manufacturing  At the Southland Otago Regional Engineering Collective (SOREC) Summit, 18 April, Dunedin    Ngā mihi nui, Ko Andrew Bayly aho, Ko Whanganui aho    Good Afternoon and thank you for inviting me to open your summit today.    I am delighted ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Government to introduce revised Three Strikes law
    The Government is delivering on its commitment to bring back the Three Strikes legislation, Associate Justice Minister Nicole McKee announced today. “Our Government is committed to restoring law and order and enforcing appropriate consequences on criminals. We are making it clear that repeat serious violent or sexual offending is not ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • New diplomatic appointments
    Foreign Minister Winston Peters has today announced four new diplomatic appointments for New Zealand’s overseas missions.   “Our diplomats have a vital role in maintaining and protecting New Zealand’s interests around the world,” Mr Peters says.    “I am pleased to announce the appointment of these senior diplomats from the ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Humanitarian support for Ethiopia and Somalia
    New Zealand is contributing NZ$7 million to support communities affected by severe food insecurity and other urgent humanitarian needs in Ethiopia and Somalia, Foreign Minister Rt Hon Winston Peters announced today.   “Over 21 million people are in need of humanitarian assistance across Ethiopia, with a further 6.9 million people ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Arts Minister congratulates Mataaho Collective
    Minister for Arts, Culture and Heritage Paul Goldsmith is congratulating Mataaho Collective for winning the Golden Lion for best participant in the main exhibition at the Venice Biennale. "Congratulations to the Mataaho Collective for winning one of the world's most prestigious art prizes at the Venice Biennale.  “It is good ...
    BeehiveBy beehive.govt.nz
    1 week ago

  • Supporting better financial outcomes for Kiwis
    The Government is reforming financial services to improve access to home loans and other lending, and strengthen customer protections, Commerce and Consumer Affairs Minister Andrew Bayly and Housing Minister Chris Bishop announced today. “Our coalition Government is committed to rebuilding the economy and making life simpler by cutting red tape. We are ...
    BeehiveBy beehive.govt.nz
    2 weeks ago

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