Bridges calls for investigation into National’s handling of electoral donations

Written By: - Date published: 9:29 am, November 29th, 2019 - 24 comments
Categories: election funding, elections, electoral commission, electoral systems, national, nz first, same old national, Simon Bridges - Tags:

The problem with shooting your mouth off and barking at every passing car is that sometimes there will be unintended consequences.

Like when Simon Bridges asked for an investigation into New Zealand First’s handling of donations.  Fair call.  It looked like NZ First might be rorting the system and if we want transparency then this sort of set up should be investigated.

The Winebox papers leak has revealed the model used for the establishment of the NZ First Foundation. Surprise, surprise it was the National Party’s Foundation.

From Guyon Espiner at Radio New Zealand:

One of the leaked documents is called ‘Proposal to Establish a Strategic Fund Raising and Management Vehicle for New Zealand First’ and lays out the reasoning for the Foundation.

It says the “generally weak” state of electorates and a “lack of success” at board level in raising funds meant a new business model was needed to bring money into the party.

“The precedent is clear. It is the National Party’s National Foundation. In essence this proposal suggests a cloning of that model into the New Zealand First Foundation,” the document says. “There can be little doubt that the model is legally sound and is operated in a manner that meets all legal and ethical obligations.”

The proposal says the fund would be a “legally established autonomous organisation that would operate independently of and at arms length” to the board.

The idea was to set up a capital protected fund. “This means contributions will never be removed from the fund. Instead they will be invested with the proceeds ensuring a stable and diverse revenue stream to support our activities and the capital will continue to benefit our party for the long term.”

This mirrors the National Foundation’s statement that it will do the same.  From its website:

We have established the National Foundation to strengthen the financial future of the National Party. It will operate as a capital-protected fund. This means contributions will never be removed from the fund. Instead, they will be invested with the proceeds ensuring a stable and diverse revenue stream to support our activities, and the capital will continue to benefit our Party for the long term.

One aspect that I do not think has been commented on yet is that it appears to me the arrangement avoids disclosure requirements for contributors.  The contributions regime states that where a donation is made up of contributions from different individuals then their identity should be disclosed if the amount given by an individual exceeds the prescribed amount.  But in this scenario the contributors are never giving to the party.  They are giving to another entity that is investing the money and paying the profits to the party.  No sum made up of contributions ever heads the party’s way.

It appears to me the overseas donation rules are also avoided.  Again it is not the overseas money that is being paid to the party, it is the profits earned from the overseas money by the Foundation.  As long as the Foundation’s identity is disclosed along with normal rules this is the only requirement that has to be met.

So Bridges is right that there should be an investigation.  But the National Foundation should be included, to make sure that the Electoral Act donations requirements are not being avoided.

Just in case.

24 comments on “Bridges calls for investigation into National’s handling of electoral donations ”

  1. tc 1

    And here we are Soimon. Now run along and play with your dog whistle but thanks for pointing this out.
    The adults can step in now with some long overdue sunlight just in time for the GE.

    Oh and who was it that tinkered with the EFA again….

    • cleangreen 1.1

      Brillliant tc. 100% slammed Mr Bridges into the hollow chamber.

    • mickysavage 1.2

      Yep I have tried to write a post about the EFA and the crap the Nats threw at it and how it compares to what is happening now but it needs more head space than I have. And I accept I have a bit of history on the subject but this means that I probably know most of the tricks …

      I suspect the simple solution is to ban all donations over $500, make it effective, and have state funding.

  2. Tiger Mountain 2

    This seems to distill down to another attempted “wack” on NZ First.

    Have most journalists consigned NZ National’s Waitemata and other blind Trusts to the memory hole now?

    • tc 2.1

      Don't forget all those trusts that evaporated after the new govt rolled out some changes.

      NZ's MSM are an extension of nationals spin machine except this issue blows back hard on them with some diligent positioning from the gov't.

  3. ianmac 3

    They cant have one Foundation being legal and the other illegal can they?

    But surely even Bridges cannot call for an own goal – can he?

  4. greywarshark 4

    Money is always a problem to the political parties representing the mass of the people who haven't got much to spare. Each party has to think about it in a hard-headed way – why should people question the legality checking for methods; they are either ignorant about practicalities, or mendaciously playing on the general public's ignorance.

    In the past Labour gave honour to Mike Williams for coming up with ideas for donations, like the then new regular bank transfers also supporters weekly envelope.
    https://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=230779
    2001 Labour's shadow man

    …Starting by reading every book in the Auckland library on political fundraising, Williams instigated three practices. The most important, he believes, was a pledge system, where people committed a regular amount to the party. Automatic bank transfers were new. He used them to the party's advantage. "There's still cashflow coming from that, still people in that system signed up by me," he says.

    He also inaugurated a system using the party's membership list to send letters with prepaid envelopes to members, asking for donations.

    He and Anderton also started visiting businesses. "It really plugged us into the business community. The first thing you demonstrated was that you didn't have horns. The second thing was that we started getting money."

    Finally Williams introduced systematic canvassing and direct-mailing to New Zealand politics. "We'd print out the electoral roll in street order. You'd go along and say, 'Are you a Labour supporter?' in marginal electorates. Systematically knock on every door."

    • ianmac 4.1

      But but Grey. I am confused. I understand all that you say from the above.

      But what do you think will happen next? The Espiner column seems to suggest that NZF and National is the same. Seems to be huge to me. I can find no MSM further expose.

      • greywarshark 4.1.1

        NZFirst and National the same? True, they are all politicians and tend to be heavy in the head and light on their feet in that order. It looks like Guyon has dug up a tasty morsel that must surely exonerate NZFirst from any possible duggery and no skulls. It would be funny wouldn't it if the big expose' showed that NZ First had copied the legals from the National Party songbook. Which?

        I Did it My Way?
        I think Money money from Cabaret – a rousing little number.
        Money Pink Floyd
        Money for Nothing Dire Straits
        You Never Give Me Your Money Beatles

        Or Paul Metsers’ sad yearning little NZ reality song about digging for gold. 'Here's to the gold I never have found, down in the deep underground. etc'
        https://www.youtube.com/watch?v=lswLTVtqzW8

        • ianmac 4.1.1.1

          But. but. but surely this must be askew somewhere. Remembering the onslaught of wide ranging criticism which rushed out for more than a week with the well known rushing to claim the NZF scalps, (I don't vote NZF) and the scream to involve Jacinda, and now? Silence. A movie would declare this a ridiculous script.

          "It ain't necessarily so
          It ain't necessarily so
          The things that you're liable
          To read in the papers
          It ain't necessarily so."

          • greywarshark 4.1.1.1.1

            Pretty good ianmac – we have to keep an upbeat profile as we fight our way to the next election.

            You could change the words to update:

            ‘The smoke from the vapers
            Masks the news in the papers
            It ain't necessarily so.’

  5. Tiger Mountain 5

    Soymun does seem to have snookered himself, and Nat HQ, here. Mr Espiner came over as somewhat of a National fanboi on Morning Report, but he does dig up some useful info in his new role.

    • tc 5.1

      Gluon's a total nat fanboy but he's smart enough to know soimon's digging alongside some skeletons the hollowmen will not want exumed.

      Could give momentum for serious change which is the last thing nats want on electoral financing.

  6. Sabine 6

    Public Fincance is the only answer. Maybe Labour can start talking aobut this? Or is that too risky and its easier to drive in a care with an american celebrity who is on the look for a new home?

    • tc 6.1

      would you prefer she had a monologue on letterman ?

      • Sabine 6.1.1

        no i would prefer that she would tackle some issues now.

        Seriously, i would prefer of Micky Savage to post a nice little write up of how the Laobur Party is -despite it maybe not going anywhere – putting forward a proposal for public finance.

        But then, hey…….it made for good tv, everyone feels good about themselves, some tv stars got a bit of publicity and hopefully we get some tourists from the US (those that still have some money hopefully) and yei us. Right?

        edit: And i would expect a proposal to not go far, however it would be nice if it were put forward for discussion. Just for once, do something even if it fails. At least then the Labour Party would be on record of supporting such legislation. But then maybe that is the issue as to why Labour is not doing it.

        Edit2: I had no use for the Hairpuller on Letterman either. Equally cringe worthy.

  7. Karol121 7

    1. Always DO sober what you said you'd do drunk. That will teach you to keep your mouth SHUT. (I borrowed this from Ernest Hemingway).

    I am aware of a number of lawyers around who like this particular piece of “poetry”, and who occasionally use it when in conversation with both clients and colleagues.

    2. A general rule for lawyers: "When examining a witness or making a public accusation, as best you can, avoid ASKING any question which you do not already know the answer to". Rhetorical wisdom.

    If only Mr Bridges could take note of the rules observed by many other legal practitioners, considering that he is one.

    I'm not a lawyer. I am also not a salaried member of parliament chewing up taxpayer funds by the minute for the purpose of self interest project promo.

    3. "Let he who is without sin cast the first stone"

    (I borrowed this one from the Bible which contains a number of wise words also applicable to the 21st century, and to be found in John 8:7)

    Self explanatory, and it can also apply to political parties and members of parliament, irrespective of religious belief, or none whatsoever. Even his photo buddy, Alfred Ngaro would surely understand the context.

  8. Sacha 8

    But in this scenario the contributors are never giving to the party. They are giving to another entity that is investing the money and paying the profits to the party.

    Thank you for finally explaining how it works. Dodgy bastards, all.

    • cleangreen 8.1

      Yes

      'dodgy all' is about right,

      And who started this diverting of funds rather than direct party donations?

      Smells like the John Key'ism style to me?

  9. Paaparakauta 9

    Patriotism used to trump any argument exposes the moral and conceptual flaw at the heart of the National party.

    Boswell, James (1986), Hibbert, Christopher (ed.), The Life of Samuel Johnson, New York: Penguin Classics, ISBN 0-14-043116-0.

  10. Incognito 10

    There can be little doubt that the model is legally sound and is operated in a manner that meets all legal and ethical obligations.

    Whoever wrote that is an oxymoron.

    We know how National ascertains legality: if it is pretty legal, it gets the tick.

    However, what are or were those ethical obligations? What is or was the benchmark and who determined that?

    To state that there can be little doubt that it meets all obligations sounds hopelessly naive and ignorant at best but more like the hubris of an arrogant twat.

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    No Right TurnBy Idiot/Savant
    5 days ago
  • Will the rental tax cut improve life for renters or landlords?
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    Point of OrderBy poonzteam5443
    5 days ago
  • Geoffrey Miller: What Saudi Arabia’s rapid changes mean for New Zealand
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    5 days ago
  • Racism’s double standards
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    Point of OrderBy poonzteam5443
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  • It’s not a tax break
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    Point of OrderBy poonzteam5443
    5 days ago
  • The Plastic Pig Collective and Chris' Imaginary Friends.
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  • Who is responsible for young offenders?
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    Point of OrderBy poonzteam5443
    5 days ago
  • Gordon Campbell on National’s fantasy trip to La La Landlord Land
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  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 14
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    The KakaBy Bernard Hickey
    5 days ago
  • No, Prime Minister, rents don’t rise or fall with landlords’ costs
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    The KakaBy Bernard Hickey
    5 days ago
  • Cartoons: ‘At least I didn’t make things awkward’
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    5 days ago
  • Solving traffic congestion with Richard Prebble
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    5 days ago
  • I Think I'm Done Flying Boeing
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  • Invoking Aristotle: Of Rings of Power, Stones, and Ships
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  • Van Velden brings free-market approach to changing labour laws – but her colleagues stick to distr...
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    Point of OrderBy Bob Edlin
    6 days ago
  • Why Newshub failed
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    Point of OrderBy poonzteam5443
    6 days ago
  • Māori Party on the warpath against landlords and seabed miners – let’s see if mystical creature...
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    Point of OrderBy Bob Edlin
    6 days ago
  • There’s a name for this
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    No Right TurnBy Idiot/Savant
    6 days ago
  • Echoes of 1968 in 2024?  Pocock on the repetitive problems of the New Left
    Mike Grimshaw writes – Recent events in American universities point to an underlying crisis of coherent thinking, an issue that increasingly affects the progressive left across the Western world. This of course is nothing new as anyone who can either remember or has read of the late ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Two bar blues
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    6 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 13
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Angus Deaton on rethinking his economics IMFLocal scoop: The people behind Tamarind, the firm that left a $500m cleanup bill for taxpayers at Taranaki’s Tui oil well, are back operating in Taranaki under a different company name. Jonathan ...
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  • AT Need To Lift Their Game
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  • Christopher's Whopper.
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    Nick’s KōreroBy Nick Rockel
    6 days ago
  • Funding hole for tax cuts growing by the day
    The pressure is mounting on the Government as it finalises its Budget Policy Statement, but yet more predicted revenue ‘goes missing’. Photo: Lynn Grieveson / The KākāTL;DR: The Climate Commission has delivered another funding blow to the National-ACT-NZ First coalition Government’s tax-cutting plans, potentially carving $1.4 billion off the ‘climate ...
    The KakaBy Bernard Hickey
    6 days ago
  • Luxon’s brave climate change promise
    The Government now faces the prospect of having to watch another tax raise the price of petrol when, only six days ago, it abolished the Auckland Regional Fuel tax. Prime Minister Christopher Luxon argued that the regional fuel tax imposed costs on lower-income people with less fuel-efficient vehicles  and that ...
    PolitikBy Richard Harman
    6 days ago

  • Positive progress for social worker workforce
    New Zealand’s social workers are qualified, experienced, and more representative of the communities they serve, Social Development and Employment Minister Louise Upston says. “I want to acknowledge and applaud New Zealand’s social workers for the hard work they do, providing invaluable support for our most vulnerable. “To coincide with World ...
    BeehiveBy beehive.govt.nz
    3 hours ago
  • Minister confirms reduced RUC rate for PHEVs
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    BeehiveBy beehive.govt.nz
    5 hours ago
  • Trade access to overseas markets creates jobs
    Minister of Agriculture and Trade, Todd McClay, says that today’s opening of Riverland Foods manufacturing plant in Christchurch is a great example of how trade access to overseas markets creates jobs in New Zealand.  Speaking at the official opening of this state-of-the-art pet food factory the Minister noted that exports ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • NZ and Chinese Foreign Ministers hold official talks
    Minister of Foreign Affairs Winston Peters met with Chinese Foreign Minister Wang Yi in Wellington today. “It was a pleasure to host Foreign Minister Wang Yi during his first official visit to New Zealand since 2017. Our discussions were wide-ranging and enabled engagement on many facets of New Zealand’s relationship with China, including trade, ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Kāinga Ora instructed to end Sustaining Tenancies
    Kāinga Ora – Homes & Communities has been instructed to end the Sustaining Tenancies Framework and take stronger measures against persistent antisocial behaviour by tenants, says Housing Minister Chris Bishop. “Earlier today Finance Minister Nicola Willis and I sent an interim Letter of Expectations to the Board of Kāinga Ora. ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Speech to Auckland Business Chamber: Growth is the answer
    Tēna koutou katoa. Greetings everyone. Thank you to the Auckland Chamber of Commerce and the Honourable Simon Bridges for hosting this address today. I acknowledge the business leaders in this room, the leaders and governors, the employers, the entrepreneurs, the investors, and the wealth creators. The coalition Government shares your ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Singapore rounds out regional trip
    Minister Winston Peters completed the final leg of his visit to South and South East Asia in Singapore today, where he focused on enhancing one of New Zealand’s indispensable strategic partnerships.      “Singapore is our most important defence partner in South East Asia, our fourth-largest trading partner and a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister van Velden represents New Zealand at International Democracy Summit
    Minister of Internal Affairs and Workplace Relations and Safety, Hon. Brooke van Velden, will travel to the Republic of Korea to represent New Zealand at the Third Summit for Democracy on 18 March. The summit, hosted by the Republic of Korea, was first convened by the United States in 2021, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Insurance Council of NZ Speech, 7 March 2024, Auckland
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    BeehiveBy beehive.govt.nz
    4 days ago
  • Five-year anniversary of Christchurch terror attacks
    Prime Minister Christopher Luxon and Lead Coordination Minister Judith Collins have expressed their deepest sympathy on the five-year anniversary of the Christchurch terror attacks. “March 15, 2019, was a day when families, communities and the country came together both in sorrow and solidarity,” Mr Luxon says.  “Today we pay our respects to the 51 shuhada ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech for Financial Advice NZ Conference 5 March 2024
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    4 days ago
  • Early visit to Indonesia strengthens ties
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    BeehiveBy beehive.govt.nz
    5 days ago
  • China Foreign Minister to visit
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    5 days ago
  • Minister opens new Auckland Rail Operations Centre
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  • Celebrating 10 years of Crankworx Rotorua
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  • Government delivering on tax commitments
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    5 days ago
  • Significant Natural Areas requirement to be suspended
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    BeehiveBy beehive.govt.nz
    5 days ago
  • Government classifies drought conditions in Top of the South as medium-scale adverse event
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    5 days ago
  • Government partnership to tackle $332m facial eczema problem
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    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ, India chart path to enhanced relationship
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    5 days ago
  • Ruapehu Alpine Lifts bailout the last, say Ministers
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action to drive better cancer services
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    6 days ago
  • Govt takes action to drive better cancer services
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
    Unlocking economic growth and land for housing are critical elements of the Government’s plan for our transport network, and planned upgrades to State Highway 29 (SH29) near Tauriko will deliver strongly on those priorities, Transport Minister Simeon Brown says. “The SH29 upgrades near Tauriko will improve safety at the intersections ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Fresh produce price drop welcome
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    BeehiveBy beehive.govt.nz
    6 days ago
  • Statement to the 68th United Nations Commission on the Status of Women
    Tēnā koutou katoa and greetings to you all.  Chair, I am honoured to address the sixty-eighth session of the Commission on the Status of Women. I acknowledge the many crises impacting the rights of women and girls. Heightened global tensions, war, climate related and humanitarian disasters, and price inflation all ...
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  • Speech to the 68th United Nations Commission on the Status of Women (CSW68)
    Tēnā koutou katoa and greetings to you all.  Chair, I am honoured to address the 68th session of the Commission on the Status of Women. I acknowledge the many crises impacting the rights of women and girls. Heightened global tensions, war, climate related and humanitarian disasters, and price inflation all ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government backs rural led catchment projects
    The coalition Government is supporting farmers to enhance land management practices by investing $3.3 million in locally led catchment groups, Agriculture Minister Todd McClay announced. “Farmers and growers deliver significant prosperity for New Zealand and it’s vital their ongoing efforts to improve land management practices and water quality are supported,” ...
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    6 days ago
  • Speech to Auckland Business Chamber
    Good evening everyone and thank you for that lovely introduction.   Thank you also to the Honourable Simon Bridges for the invitation to address your members. Since being sworn in, this coalition Government has hit the ground running with our 100-day plan, delivering the changes that New Zealanders expect of us. ...
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    7 days ago
  • Commission’s advice on ETS settings tabled
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    1 week ago
  • Government lowering building costs
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    1 week ago
  • Trustee tax change welcomed
    Proposed changes to tax legislation to prevent the over-taxation of low-earning trusts are welcome, Finance Minister Nicola Willis says. The changes have been recommended by Parliament’s Finance and Expenditure Committee following consideration of submissions on the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill. “One of the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister’s Ramadan message
    Assalaamu alaikum. السَّلَام عليكم In light of the holy month of Ramadan, I want to extend my warmest wishes to our Muslim community in New Zealand. Ramadan is a time for spiritual reflection, renewed devotion, perseverance, generosity, and forgiveness.  It’s a time to strengthen our bonds and appreciate the diversity ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister appoints new NZTA Chair
    Former Transport Minister and CEO of the Auckland Business Chamber Hon Simon Bridges has been appointed as the new Board Chair of the New Zealand Transport Agency (NZTA) for a three-year term, Transport Minister Simeon Brown announced today. “Simon brings extensive experience and knowledge in transport policy and governance to the role. He will ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Speech to Life Sciences Summit
    Good morning all, it is a pleasure to be here as Minister of Science, Innovation and Technology.  It is fantastic to see how connected and collaborative the life science and biotechnology industry is here in New Zealand. I would like to thank BioTechNZ and NZTech for the invitation to address ...
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    1 week ago
  • Progress continues apace on water storage
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    1 week ago
  • Government agrees to restore interest deductions
    Associate Finance Minister David Seymour has today announced that the Government has agreed to restore deductibility for mortgage interest on residential investment properties. “Help is on the way for landlords and renters alike. The Government’s restoration of interest deductibility will ease pressure on rents and simplify the tax code,” says ...
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    1 week ago
  • Minister to attend World Anti-Doping Agency Symposium
    Sport and Recreation Minister Chris Bishop will travel to Switzerland today to attend an Executive Committee meeting and Symposium of the World Anti-Doping Agency (WADA). Mr Bishop will then travel on to London where he will attend a series of meetings in his capacity as Infrastructure Minister. “New Zealanders believe ...
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    1 week ago
  • Pacific Language Weeks celebrate regional unity
    This year’s Pacific Language Weeks celebrate regional unity and the contribution of Pacific communities to New Zealand culture, says Minister for Pacific Peoples Dr Shane Reti.  Dr Reti announced dates for the 2024 Pacific Language Weeks during a visit to the Pasifika festival in Auckland today and says there’s so ...
    BeehiveBy beehive.govt.nz
    1 week ago

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