web analytics

Break the Power of Money.

Written By: - Date published: 8:33 am, June 14th, 2009 - 30 comments
Categories: capitalism, uncategorized - Tags:

For some weeks our media has been distracted by various sideshows. Worth, Swineflu, Mt Albert, Flight 447 and of course David Bain, have all in turn captured our national psyche… but meanwhile the most pressing political issue, the global fiscal crisis, grinds on with little comment.

The crisis response more or less worked. Historians will argue about the Paulson-Geithner-Bernanke reaction, but the economy seems to be stabilizing. And now attention turns to the task of the next decade: slowly unwinding the debt that has built up over the past generation.

The Great Unwinding

The staggering growth in credit since the Reagan/Thatcher deregulation 1980’s era has come to an end, now the piper demands to be paid.

* World industrial production continues to track closely the 1930s fall, with no clear signs of ‘green shoots’.
* World stock markets have rebounded a bit since March, and world trade has stabilised, but these are still following paths far below the ones they followed in the Great Depression.
* There are new charts for individual nations’ industrial output. The big-4 EU nations divide north-south; today’s German and British industrial output are closely tracking their rate of fall in the 1930s, while Italy and France are doing much worse.
* The North Americans (US & Canada) continue to see their industrial output fall approximately in line with what happened in the 1929 crisis, with no clear signs of a turn around.
* Japan’s industrial output in February was 25 percentage points lower than at the equivalent stage in the Great Depression. There was however a sharp rebound in March.

Tale of Two Depressions

Is this depressing enough?

German exports fell 28.7% in April compared with April 2008, according to the Federal Statistics Office.

The BBC

And so on. Essentially consumers in the West are grossly over-leveraged:

For about a generation, the U.S. surfed on a growing wave of debt. The ratio of debt-to-personal-disposable income was 55 percent in 1960. Since then, it has more than doubled, reaching 133 percent in 2007. Total credit market debt — throwing in corporate, financial and other borrowing — has risen apace, surging from 143 percent of G.D.P. in 1951 to 350 percent of G.D.P. last year.

Over and again we can see that excessive debt is the fundamental. This is not a normal business cycle recession caused by a normal liquidity squeeze, it is solvency crisis that can only be solved one way. This is what Joseph Stiglitz is now saying:

We need to break up the too-big-to-fail banks; there is no evidence that these behemoths deliver societal benefits that are commensurate with the costs they have imposed.

Break the Banks.

Even within the context of New Zealand’s relatively stable and prudent banking sector, it is apparent that they are more powerful than the Government or Reserve Bank. The exact numbers are hard to come by, but many commentators have stated NZ is one of the most indebted OECD nations… as a result we no longer have control over our economic and social destiny. For generations we have been acting collectively like delinquent teenagers, burning up our environmental heritage and binging on cheap easy credit that over-stimulates economies like P drives an addict.

The dinosaurs economies are writhing, thrashing about in their death-throes; little proto-marsupial NZ needs to be nimble and have it’s wits about it. Any sign of this from Key’s govt?

30 comments on “Break the Power of Money. ”

  1. David 1

    Good insightful post. Refreshing departure from the orchestrated “green shoots” mantra. What would complement this would be a similarly insightful followup post detailing “where to from here”. Tougher assignment. With you so far.

  2. Quoth the Raven 2

    There was an answer in it to break up the banks (it would have been much easier if they were let to fail). Once again decentralisation rears its head as answer to our problems, but the vested interests of state capitalism will not allow it. The answer from the capitalists is of course, after socialising their losses, let’s return to privatising their gains. The international banking system is an arm of the state. States around the world have bailed them out they were crucial in getting them to the dominant position they’re in today. So it’s bemusing to me that people from the left would look to the state as the cure to our ills and not the source of it. Social democracy is collapsing around the world because, to turn one of their sayings on its head, they drowned the ideals of the left in the bathtub of government.

  3. Bill 3

    I think the motivations of all governments needs questioning.

    Do they have society’s welfare at heart or are they concentrating on the welfare of corporations and the financial systems that enable corporate activities?

    I’d say from the actions taken so far that it’s the latter.

    So what should be expected of NZ’s government? That they somehow engineer a path back to a situation that existed just before this all began? That seems to be what many on the Social Democratic Left want.

    Why?

    And what are the chances of recreating what was there anyway?

    Oil. Food. Ecology. Just three dots, that when joined indicate no way back to what was before.

    To paraphrase the post, those of a Social Democratic Left persuasion need to be nimble and have their wits about them; be prepared to be imaginative and jettison some dearly held preconceptions if they desire to be a part of a solution rather than participants in the perpetuation of variations to what is ultimately a destructive political economy.

    • Draco T Bastard 3.1

      That they somehow engineer a path back to a situation that existed just before this all began?
      That seems to be what all governments are trying to do – rebuilding the failed system of the previous 3 centuries. Even after all the economic collapses of those centuries has proven beyond reasonable doubt that it doesn’t work.

    • Draco T Bastard 3.2

      That they somehow engineer a path back to a situation that existed just before this all began?

      That’s what all the governments of the world seem to be trying to do – rebuilding the failed financial system of the last three centuries even though all the economic collapses of those centuries has proven beyond a shadow of a doubt that it doesn’t work. At this point in time we really need to accept that it’s just the personal ambition and self interest of the ruling class that keeping it there now.

      PS, previous reply disappeared into the ether – delete it if you can find it.

  4. coolas 4

    As long as ‘unearned’ income in the form profit to the investors of capital is held to be more important than the well being of any other interests, we will continue to experience the long agonising death of capitalism. Profit at all cost, untempered greed, has driven the madness of the credit crisis. And as long as we have a monetary system that rewards greed we will have booms and busts, excess and deprivation. F**k the marketplace. Regulation and control is the only way to change the financial system. China’s idea of a single trade currency pegged to a basket of currencies is a good start.

    • burt 4.1

      And as long as we have a monetary system that rewards greed we will have booms and busts

      That is kind of true. The other thing I think we need to understand is that although it is possibly appropriate to point the “greed” finger at the banks in the recent credit collapse, we must not forget that if people had paid their mortgages as they signed contracts saying they would do, we wouldn’t have a credit crisis.

      Sure the banks made some dodgy lending decisions but they did not hold a gun to the borrowers heads and tell them to default on their mortgages. The borrowers who failed to keep their contracts are ultimately responsible for the issues we face today. I know it’s hard to blame the individuals (there are millions of them) rather than the banks (there are dozens of them). But really the easy target isn’t always the right one.

      • Pascal's bookie 4.1.1

        The borrowers who failed to keep their contracts are ultimately responsible for the issues we face today.

        This again. I’ll quote myself from another thread:

        Fair enough, as far as you go.

        But the borrowers are only ever responsible for the effect of the very few, (usually one) loans that they are responsible for.

        The other thing to remember is the loans were sold with the first few years payments being very affordable, the idea sold was that by the time your repayments went up, you would have enough equity in the house to refinance yourself out of sub prime and into a more traditional loan. This was advice given by the banks, the real estate agents and the mortgage brokers. All acting supposedly rationally. They were supposed to be the professionals and some of them had fiduciary duties as well, to varying degrees to various stakeholders. So I think that for the one admittedly bad loan that the typical borrower took out, there is a fair amount of mitigation to be shared around when laying the blame.

        On the other hand, the lenders are likewise responsible for the loans that they lend out. A far larger number. The fact that people wanted to borrow money is not much mitigation at all in my books. The banks knew the role they played in the financial system. They have: no excuse.

        The banks are responsible for pushing managers to sell as many loans as they can, so those loans could be bundled up and tranched, magically turning all this toxic crap into sludge that the credit rating agencies, in their undying wisdom gave AAA status. Then we have the leveraging, and the crappy reinsurance products and all the other nonsense that was used to pretend that these really crappy loans that the banks deliberately and knowingly made, were actually worth something.

        When working out where the blame should go for the mess as a whole, that has required such extraordinary measures to try and stem the damage, the decisions made by individual borrowers hardly enter the picture. It is only if you try and look at borrowers as a group that the idea makes any sense. But they are not in fact a ‘group’ that can be blamed, because they did not do anything as a ‘group’.

        Unlike, for example, the banks. Who have legal person status and made thousands and thousands of bad loans, knowing they were shit, and then leveraged that shit. If not for all that leveraging, if it were just the initial bad loans that were being defaulted, things would not be any where near as bad.

        • burt 4.1.1.1

          RedLogix

          I have no argument with that. I would however like to point out that at the core of the credit crisis were the big ‘state’ lenders who were delivering on social policies that desired a greater percentage of home ownership. This political desire to see more people owning real estate when (as is clearly evident today) they could not afford it is ultimately the root of the problem.

          Intervention by the state for popularity – big issue.

          • Pascal's bookie 4.1.1.1.1

            It’s a shame you’re not more specific.

            If you are talking about freddie and fannie being told to ensure that a certain proportion of the loans they guaranteed were going to minorities, then you’re barking up the wrong tree. Even accounting for this, the fact remains that F&F were not allowed to directly guarantee mortgages that did not meet loan criteria. They did eventually get into subprime stuff, but at the other end, in that they were buying up the tranched products rated AAA. Yep, bad move. Stupid Etc. But not the fault of legislation, rather market forces demanding they get into this new and exciting division that was sweeping the world like a swedish pop sensation. They were late into the game and were losing market share to the unregulated loan outfits that weren’t bound by criteria. No one held a gun to their heads. Perhaps someone should have,. But that would’ve been interfering in the market, which was unpopular at the time.

            It’s well worth noting, in fact necessary to note, that the legislation requiring F&F to loan to minorities was in place since the seventies. No harm for decades, until other things were done, and hey presto, kablooie. Logic suggests that F&F loans were not in and of themselves the problem, but rather that the new changes interacted with the system to cause meltdown.

            If however you are talking about GWB’s ‘ownership society’ you are on firmer ground.

            Of course that rhetoric was used in service of two things. Tax cuts, and financial market deregulation; which were supposed to ‘allow citizens to retain more of their own money’ on the one hand, and on the other hand allow ‘the awesomeness of the self correcting marketplace to deliver it’s innovative fruitfulness to citizens free from the heavy hand of stifling gummint etc’.

            Worked out swell.

      • Pascal's bookie 4.1.2

        Bugger, I used the word Gummint and done got moderated.

        Help!

      • jarbury 4.1.3

        Sure the banks made some dodgy lending decisions but they did not hold a gun to the borrowers heads and tell them to default on their mortgages.

        So why did that happen? What went on last year that led to a situation where so many people defaulted on their mortgages, leading to the current situation.

        I would say the following:

        1) High interest rates
        2) High food prices
        3) High transportation costs.

        These are basic areas of spending (shelter, food and transport) that skyrocketed in price last year. Something had to snap, and something sure did snap.

        So why did those three go up so much?

        For interest rates, they went up to combat inflation. Inflation went up because basic prices were going up so much, particularly for food & transportation costs. So, in my opinion, the second two issues listed above were responsible for the top one.

        For food prices, they went up because basic foods like corn, wheat and rice hit price highs. This has been attributed to shifting crops to making biofuels rather than food. Also attributed to higher transportation costs of shifting food around. So in a way, higher transport costs led to higher food costs.

        And then transportation costs. This was due to the massive oil spike we saw last year. US cities have been built in such an auto-dependent way that people had to keep driving to keep working, so the money had to come from somewhere else (like paying the mortgage). Furthermore, as I’ve mentioned above the flow-on effects of higher oil prices led to inflation and higher food costs.

        So in my opinion it all comes back to the high price of oil last year. This was the straw the broke the camel’s back in my opinion. While the debt levels were unsustainable, I think we could have had a much softer landing if it hadn’t been for the high oil prices.

        The worry is that we haven’t learned from this at all – so when the global economy recovers and oil prices spike again I reckon we can expect a similar result: economic meltdown.

        Capchta: Phallic cities – yes quite!

        • GSK 4.1.3.1

          Phallic cities

          As the GSK has this day been reminded that particular capcha arose first from the mouth of Dr. Ivan Illich (author Medical Nemesis and other profund work.)

          II was out here – Christchurch’s horticultural hall on Oxford Tce – mid-70s and my informant tells me of his remark to one huge audience of a phallic city, with its several high rise buildings which he noted as the plane circled to land..

          Can’t say whether christian folks took to this characterization or not: can say he won rapturous applause from many of the folks there that evening..

          All the way from a Mexican seminary to the hort hall.. for a kiwi link… woooo.. sayeth the GSKs

  5. burt 5

    RedLogic

    Interesting post. I can see where the “Red” in you name comes from but the “Logix” bit is looking a little misplaced. You say;

    The exact numbers are hard to come by, but many commentators have stated NZ is one of the most indebted OECD nations

    And then go on to suggest that National don’t look nimble enough to do anything about it.

    I have commented many times that under Labour the govt was rich and the people were poor. Unfortunately the Govt having taxed the country into submission have also been acting like delinquent teenagers insisting they know everything and how better to spend our money. So much so they sent us into a recession before the global economic crisis even started resulting in the worst case scenario where the govt are poor and the people are poor as well.

    So, why do I think you suffer a logic failure? You seem completely unable to see the part that 9 years of Labour govt played in the situation where we have appalling individual debt ratios and rather seem to only look at National in the here and now. The debt situation hasn’t developed since Nov ’08.

  6. burt 6

    RedLogix

    Apologies for using “RedLogic” in my previous comment, it was a typo.

    As a summary of what I just said;

    There are two hats we need to wear when we look at the current situation we are in with personal debt.

    The outward looking hat “What do we do about it”. That hat certainly makes us look to National for answers. The other hat is “What got us into this situation” and while wearing that hat we need to look at Labour since they have run the country for 9 years leading to the situation we are in now. This looking in and looking out perspective gives us some understanding of what we did wrong and gives us a better chance of not simply repeating the same mistakes as soon as we get past the “current crisis” position.

    • Zaphod Beeblebrox 6.1

      Burt,
      Your comments re: personal debt being NZ’s major problem is decidly accurate, but I doubt see how National have shown that they have any capacity to correct the situation.
      Sure NZ Labour, just like UK Labour and the Clinton and Bush administrations are culpable for their encouragement of debt-driven growth but I would have thought their obsession of underpining economic development through the property and share markets at the expense of things that actually help individuals and business was the problem.
      Can’t see how reducing the size of the government sector will change this.

      • burt 6.1.1

        Zaphod Beeblebrox

        When govt give the people (who do indeed collectively act like delinquent teenagers) what they want so they can win elections the people are not to blame. The govt has many roles (some might say the role of govt is whatever govt define it to be) and one of the roles of govt is to lead the people and steer them toward what is good for them. Simply playing a popularity contest is not the answer.

        Both major parties are guilty of this, arguably we are no better off today under National than we were under Labour. Additionally National may let us make more mistakes at a personal level whereas Labour didn’t trust us to have that independence.

        Which is better for the long term? Telling my kids don’t worry the govt will take care of you or telling my kids – you can’t rely on the govt to look after you?

        I don’t have any argument with the issues or facts that RedLogix highlights, it’s his myopic (emotional analysis rather than logical analysis) “National bad” angle I take exception to.

        • Zaphod Beeblebrox 6.1.1.1

          Burt,
          Agree about the partisan stuff- there’s obviously a lot of baggage being carried about sites like this.
          As far as your concerns about govt imposing its beliefs and morality on our everyday lives, I really can’t see how one side is any better than the other. How do you account for the gang patches legislation in Wanganui? Or the proposed Local Government Act paper before acbinet trying to tell local councils that they can spend as much as they like on roads, public health and water but not on other things?
          I know you can selectively pull out isolated instances to support your cause but it seems to me that oppositions promote things like local democracy and personal freedom and then run as far away from this as they can get once they get into power (Labour did this too).
          The real debate should be what can govt do to make NZ a better place for our kids? And how do you get there?

    • Draco T Bastard 6.2

      The other hat is “What got us into this situation’ and while wearing that hat we need to look at Labour since they have run the country for 9 years leading to the situation we are in now.

      Actually Burt, we need to look at the sick joke that is our present socio-economic system. It’s been collapsing for centuries and requires poverty for it to even look like it’s working. The existence of poverty within the system proves conclusively that it isn’t.

  7. felix 7

    burt, comparing this:

    The borrowers who failed to keep their contracts are ultimately responsible for the issues we face today. I know it’s hard to blame the individuals (there are millions of them) rather than the banks (there are dozens of them). But really the easy target isn’t always the right one.

    with this:

    When govt give the people (who do indeed collectively act like delinquent teenagers) what they want so they can win elections the people are not to blame.

    makes it difficult to see what you’re trying to say.

    Otherwise you make some valid points.

  8. burt 8

    felix

    The banks provide a service not leadership and governance. Banks != Government.

    You can do a better job than that of pulling my comments apart felix!

    • felix 8.1

      I didn’t mean to compare them directly burt, it was the other party I was thinking of – the behaviour of “the masses” in both of your examples is very similar but your conclusions on whether they can be blamed for their actions is very different.

      • burt 8.1.1

        felix

        Yes and no.

        Yes because they both have an interaction with the masses.

        No because we have a massive amount of choice in banks and personal responsibility for the contracts we enter into with them. The govt provides the legal framework that ensures both parties adhere to the contact. However with govt we we elect a monopoly provider of governance and we are collectively responsible for the contact we make with it. I can’t stop the country electing a govt because it offers massive tax cuts, I can stop myself entering into a contract that looks to good to be true or that I cannot afford.

  9. RedLogix 9

    I have commented many times that under Labour the govt was rich and the people were poor.

    Doesn’t stand much scutiny Burt. If the people where genuinely poor there would be no income for PAYE, no expenditure for GST, no profits for Company Tax.

    We’ve been over this ground dozens of time Burt. Dr Cullen was responsible for Govt accounts, not our private ones. If New Zealanders would not save (or at least reduce debt), then at least Labour did it for us.

    In most developed countries the govt accounts for between 30-50% of GDP. NZ sits pretty much in the middle of that range which has evolved fairly naturally as about the optimum. Much more than 50% seems to run off into the zone of diminishing returns, and much less than 30% becomes increasingly dysfunctional.

    Besides you act as if the Govt and the people were somehow isolated, antiethical entities, that a well funded, properly functioning govt was somehow bad for everyone. The fact is that the vast majority of tax is simply recycled directly back into the community either directly in the form of services like health, welfare and education, or indirectly through things like infrastructure, security, governance, standards, trade relations and so on. Money that the govt spends is not lost or wasted, it is simply spent on items of wider social benefit, rather than purely individual benefit. Nor has anyone convincingly shown that public sector spending is inherently less efficient than private.

    But of course if your world-view ONLY admits to the possibility of private benefit, then quite naturally you would be blind to the purposes and merits of a decently functioning government, all tax would of course be theft, and all govt expenditure a shocking waste.

  10. Draco T Bastard 10

    Well said.

  11. Quoth the Raven 11

    Here’s something that speaks to the title of the post:

    Monetary reformers have always been around. They have been warning that the system needs to be fixed, and some of them have even had some good ideas about how to fix it, but their voices have mostly been ignored or drowned out by the vested interests who have promoted an orthodox doctrine that works to their advantage. During periods of severe financial or economic distress, such as the present one, some reformers are able to get space in the media, so today we are hearing calls for a variety of political solutions—abolition of the Fed, direct issuance of money by the government (the “greenback’ solution), a return to the gold standard, tighter regulation of banks and financial institutions, etc.

    Some of these might have a short-run salutary effect, if they could be achieved. But in my view, statist and political approaches are at best futile and at worst inclined to take us further in the wrong direction toward more centralized control and still greater concentration of wealth. They are futile in that the political process in most countries of the world has long since been removed beyond our grasp. If the people are to regain political control, we will need to first assert our economic power, especially our “money power’ by organizing ourselves to mediate the exchange process apart from the banking cartel and without the use of politicized national currencies. Putting the money monopoly under new management will not solve the fundamental dysfunctions that are inherent in it. The “greenback solution,’ for instance, does nothing to eliminate deficit spending and inflation, which are enabled by legal tender laws. So long as political currencies, however issued, are legally forced to circulate at face value, the abusive issuance of money, the debasement of national currencies, and the centralization of power will continue, and the empowerment of communities, relocalization, and the shift to a steady-state economy will be thwarted.

    People need to disengage from the systems and structures that disempower communities and enable a small elite to use the present centralized control mechanisms to their own advantage and purpose. Primary among these is the global monetary and financial regime (the structures of money, banking and finance). I favor an approach that is based on voluntary, free market and community-based initiatives which enable people to transcend the money monopoly and the “war machine.’ Socially responsible businesses and social entrepreneurs have a crucial role to play in organizing these parallel systems that can shift enough power to achieve greater measures of independence and self-determination and bring enormous benefits across the board—social, political, economic, environmental, and cultural.

  12. GSK 12

    Essentially banks make money from fees/charges and debt.

    IMO it is the debt that is the basis of the problem. After all, with user pays the choices re fees/charges are clear and directly related to a service. Such as been the rise of so-called service industry throughout the globalized world.

    Debt though.. something else. On the one side provisioning payment and liquidity to the divers aspects of trade; on the other assets commensurate with all of that industry and enterprise. Theory and its practice.

    Well, not quite. And in a major – trillions – way disconnect. As when ‘assets’ went off corporate balance sheets. The dough, the liquidity was out there – (how else could folks leverage), but the ‘assets’ were out-of-bounds.

    More to the point, out-of-bounds(so to say) made for out of value. Even as credit clouds soared and then poured.

    To my surprise I found no mention of the so-called ‘securitization’ industry that banks and financials created by which they would manage risk. All risk. And so easily. With documents using good solid mortgages to cover lousy mortgages..

    The good got taken for a ride in this industry. or, in market jargon, the good mortgagees cross-subsidised the bad until all became ugly.

    To do this so comprehensively this industry geared everything – synchromeshed – to maximize both profits and margins. And no, not simply on the rising price of property, but the more so on service industry takeover of too big to fail.

    Which is to pitch the banking case upon all – including governments – embroiled, or as some might admit to, willingly embraced.

    Immediately the problems revolve around too great a reliance upon banking and its services: resolution makes for less reliance. Personal levels of less debt is entrain. This is good.

    Institutional alternatives are also good, as, too, greater individual savings. Aiding this would be a gleaned sense of bank responsibility not to repeat prior trust-busting behaviors: larger ‘deposit ratios’ being one method; paying down those next to valueless off-balance sheet assets from profits instead of handouts..

    Time to wrap.. in so doing I’ll just add that breaking the power of banks is not something banks will enable—but their clients and customers must enable. For themselves. After all, as the one saying the service industry wallahs drilled into just about everyone… everywhere… there aint no free lunches..

  13. rave 13

    Money only has power if it can be exchanged for something of value. Its power is to represent value.
    The value is determined by the labor-time in a commodity. Money which speculates on non-values or future non-values, has no value nor power.
    That’s why trillions of bail money is worthless unless those banks can invest it in production, i.e. use it to buy up the remaining land, forests and minerals to turn into commodities. The idea that this can be green is a sick joke.
    Thus Citibank and JP Morgan and whatever behemoths survive as the megabanks have to go to places like Peru and steal virgin land and forests to turn their megabucks into megaprofits.
    If the people fight back like in Peru, or born again socialists like Chavez stop them, their money piles up as so much shit.

    • GSK 13.1

      Rave,

      I was surprised to read your comment as a kind off valedictory for Elizabeth I (of England), who back at the beginning of her reign directed her ruling Council to issue money that all her subjects could rely upon. If they could not rely upon it then they would rely upon her..

      Interesting…

  14. GC Martin 14

    Positively prescient is this snip from Mark Thoma’s blog @ Economist’s View..

    1. Regulations that limit both economic and political power and discourage the buildup of excessive risk.

    2. Regulators willing to assertively enforce existing regulation, think outside the ideological box and take an active role in identifying areas where regulation is inadequate.

    3. Regulators with the means and power to stand up to the biggest and most powerful financial institutions. Making financial institutions less powerful by breaking them up into smaller entities is one means to this end.

    4. A culture within regulatory agencies and their supporting institutions that reinforces and encourages the regulatory process.

    … and for those in need of highly qualified guidance on this important issue.

Recent Comments

Recent Posts

  • 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
    15 hours 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
    18 hours 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
    19 hours 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
    19 hours 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
    22 hours 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
    22 hours 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
    22 hours 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
    24 hours 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
    2 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
    2 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
    2 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
    2 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
    2 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
    3 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
    3 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
    3 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
    3 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
    3 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
    4 days 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
    4 days 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
    5 days 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
    5 days 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
    5 days 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
    5 days 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
    6 days 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
    6 days 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
    7 days 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
    7 days ago
  • Supplier Diversity Aotearoa Summit: Navigate 2021
    *** Check with delivery *** A mihi to all who have contributed to making today a success – starting with you! As you have explored and navigated government procurement today you will hopefully have reflected on the journey of our people so far – and how you can make a ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Pukemiro School to close
    Pukemiro Primary School near Huntly will close following years of declining roll numbers, Education Minister Chris Hipkins announced today. “I’ve consulted with the School Commissioner, and this decision acknowledges the fact that the few remaining students from last term are now settled at other nearby schools. “I want to thank ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Govt acts to protect NZers from harmful content
    New Zealanders will be better protected from harmful or illegal content as a result of work to design a modern, flexible and coherent regulatory framework, Minister of Internal Affairs Jan Tinetti announced today. New Zealand currently has a content regulatory system that is comprised of six different arrangements covering some ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Consultation on exemption of new builds from proposed tax rules
    The Government has today confirmed new builds will be exempt from planned changes to the tax treatment of residential investment property.  Public consultation is now open on details of the proposals, which stop interest deductions being claimed for residential investment properties other than new builds.   “The Government’s goal is to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech for Predator Free 2050 Conference
    Introduction E ngā mana E ngā reo E ngā iwi Tēnā koutou katoa   Ka huri ki ngā mana whenua o te rohe nei. Tēnā koutou He mihi hoki ki a tatou kua tau mai nei i raro i te kaupapa o te rā Ko Ayesha Verrall toku ingoa No ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New stock exchange to help grow small businesses
    A new share trading market, designed as a gateway to the NZX for small-to-medium-sized enterprises (SMEs), has been granted a licence by the Government. Commerce and Consumer Affairs Minister, David Clark said Catalist Markets Ltd will provide a simpler and more affordable ‘stepping stone’ for SMEs to raise capital. “This ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Visa extensions provide certainty to employers and 10,000 visa holders
    Changes to onshore visas will provide employers and visa holders with more certainty, Immigration Minister Kris Faafoi has announced. Around 10,000 Working Holiday visas and Supplementary Seasonal Employment (SSE) work visas due to expire between 21 June 2021 and 31 December 2021 will be extended for another six months to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Border class exceptions approved for more farm workers and vets
    The Government has approved border class exceptions for an additional 200 dairy workers and 50 veterinarians to enter New Zealand, Agriculture Minister Damien O’Connor announced today.  “It is clear from conversations with the dairy and veterinarian sectors that they are facing workforce pressures. These border exceptions will go a long ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More freezers and South Island hub to support vaccine roll-out
    A South Island hub and 17 new ultra-low temperature freezers will help further prepare New Zealand for the ramp up of the vaccination programme in the second half of this year, COVID-19 Response Minister Chris Hipkins says. The new freezers arrived in New Zealand on 27 May. They’re currently being ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech at the release of Climate Change Commission's final advice
    Good morning – and thank you Prime Minister. Over the last three and half years we have been putting in place the foundations for a low-carbon Aotearoa that will be a catalyst for job creation, innovation, and prosperity for decades to come. In that future, many of our everyday tasks ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Achievable blueprint for addressing climate change released
    Report says Government making good progress on emissions reduction, but more action required Meeting climate targets achievable and affordable with existing technology Economic cost of delaying action higher than taking action now Benefits from climate action include health improvements and lower energy bills All Ministers to help meet climate targets ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to release of Climate Commission final report
    A few years ago in a speech in Auckland, I compared climate change to the nuclear free movement of roughly four decades ago. And I did so for a few reasons. Firstly, because the movement of the 1980s represented a life or death situation for the Pacific, and so does ...
    BeehiveBy beehive.govt.nz
    1 week ago