Budget previews: the good, the bad, and the ugly

Written By: - Date published: 2:47 pm, May 27th, 2009 - 27 comments
Categories: budget 2009 - Tags:

As well as the usual pre-Budget announcements there have been a number of leaks. A quick review:

Good
Home insulation package: this is the Greens’ baby and could well be a highlight of the Budget in a sea of negatives. It would have been better if they had put in something about forcing landlords to insulate their rental properties. The risk is that the people in the worst quality homes, the poor renting from private landlords will miss out while the well-off get subsidies they don’t need (remember, this is the National Party that wailed endlessly about a few families on $100,000 plus getting small Working For Families payments).

$50 million for the ‘great rides’: Does anyone else think it’s weird that the $50 million figure Key told us would build a national cycleway happens to be exactly the amount they’ve decided they need for these great rides. Makes you wonder where the numbers came from, other than off the top of Key’s head. Not the recession-buster National made it out to be. Still, cycleways, sweet.

Tax cuts gone: good. Are you feeling richer for your tax cuts? Me neither. They haven’t made a blind bit of difference to the economy and if we hadn’t had them we wouldn’t be facing rising debt. This stupid barking for tax cuts has dominated our politics for five years. Hopefully we can move on to real issues now.

Bad
SPARC budget slashed: Part of a worrying trend for the government to cut primary health funding just so they can pay for a few more elective operation.

No 40 Hour Free for playcentres: National promised this in the election in return for the Playcentre Association campaigning for them. No money for it this year. Next year, maybe, or maybe not.

Ugly
Community and volunteer sector bait and switch: Paula Bennett has announced $40 million over funding for these groups but it looks like she’s quietly deleted the $320 million Labour had budgeted for them over the next three years.

Modern apprenticeships gone and polytech trade funding cut: This is just crazy. Why the hell would we be cutting investment in training during a recession? It speaks to a small-minded government that doesn’t plan for the future.

27 comments on “Budget previews: the good, the bad, and the ugly ”

  1. Jasper 1

    Bad: Slashing funding for NGO. Womens refuge have been told to close down centres in Westport and Blenheim due to no more funding.
    It is likely they will also be closing: Kaitaia, Whangarei, Whakatane, Timaru, Dunedin and Invercargill.

    Yeah, smart move. Lets close all the Refuges in areas that are prone to excessive violence against women and children.
    Great stuff Nactzis!

  2. Mr Magoo 2

    “Why the hell would we be cutting investment in training during a recession?”

    Oh let me answer that one for you….

    …because people are now FORCED to go on training because they have no job. Why would you incentivise something that is going to naturally happen anyway?

    Apprenticeships are not something National have ever cared about.

    The cycle funding will come from cuts elsewhere. If National are extremely cynical and out of touch is will come from the “walkways and cycle tracks” budget or public transport in general. Budget moneygoround.

    Then they will hold that and the 9 day fortnight up as evidence that the big-wig conference wasn’t just a bunch of old white men giving each other a mutual.

    And it will STILL fool most of NZ.

    (PS: Just wait for the REAL goodies. You think all that security and hush hush is because this budget is going to be their shining triumph??? Mark my words. )

    GGGGGGOOOOOOOAAAAAAALLLLLL!!!!

  3. vto 3

    “…quietly deleted the $320 million Labour had budgeted for them over the next three years.”

    Who the hell cares what Labour budgeted for a period they knew they wouldnt be in power? They may as well have budgeted 320billion for the credibility it had.

    • vidiot 3.1

      Budgeted, but not funded, so many promises never fulfilled – remember the chewing gum tax cuts, the 20 hours ‘free’ childcare, the only the top 5% of tax payers shall pay the top tax rate, I could go on, and on, and on.

      • aj 3.1.1

        add to this national’s retreat on it’s ‘north of $50 tax cuts for the average worker’

  4. toad 4

    Eddie said: Modern apprenticeships gone and polytech trade funding cut: This is just crazy. Why the hell would we be cutting investment in training during a recession?

    They did this in the last recession too, and its likely the cause of much of the crime today that they keep blathering on about.

    Don’t these Nats ever learn? Even having to deal with the antisocial and criminal behaviour today of the unskilled and alienated Children of the Mother of All Budgets doesn’t seem to have taught them anything.

    • IrishBill 4.1

      And on a macro-economic level let’s not forget the massive skills shortage that helped limit our productive growth during the boom.

      Meanwhile the Aussies are spending $$$ on infrastructure projects that will pull more skilled workers across the Tasman just as happened in the 90’s.

      Hey, what ever happened to the great exodus? Did the tax cuts stop it?

  5. John Dalley 5

    What do you expect from Bill & Ben, they can’t even get their stories on the same page.
    Ben’s frightened of Standard & Poors and Bill tells use this budget is about whats best for NZ.
    Message guys, get on the same page if you want use to believe you know what your doing as a government.

  6. Mark M 6

    “This stupid barking for tax cuts has dominated our politics for five years. Hopefully we can move on to real issues now.”

    If we had tax cuts early in the Labour Governments term , maybe Cullen may not have had the money to saddle the tax payers of this country ( and our Children) with huge generational over spending committments .

    Those early tax cuts may also have caused a mind shift on the members of that Government.

    Phil Goff complaining about spending “up to $40000 for an expert advisor ” who has probably saved taxpayers several hundred million dollars , demonstrates how out of touch ,he and probably other members of his party.

    Its very easy to be blase about spending tax moneys , but if you dont pay any or your tax payments have come from tax payers money (i.e MPs salaries , Benefit payments etc)

    A lot of people in this country work very hard to pay their tacx and I for one am happy if the Government of my country spend a dollar as if its there last

  7. lprent 7

    I should do some artwork on the banner for black budget day 😈

  8. toad 8

    Ever wondered why most MPs (apart from the Green ones) resist a capital gains tax that would deter investment in property speculation and promote investment in productive enterprise?

    Well, just ask Chris Tremain, National Party MP.

    • Kevin Welsh 8.1

      Shit Toad, don’t get me started on that little weasel Tremain. Classic case of riding on the coattails of his old man’s fame.

      Having spent the last three years sitting behind the “chosen one” in parliament, all hunched forward trying to project the image of an attack dog, he must be suffering in his jocks after coming away with pretty much nothing when the baubles were handed out after the election.

      He made great political capital and far too many front page stories in what passes for the local rag, here in Hawke’s Bay, when he “went in to bat” (resplendent in cricket kit) for the local orchardists who were getting shafted by Aussie by not letting NZ apples into their market.

      When it came to local workers at the port getting shafted he was nowhere to be seen. Twat.

      Rant over. Back to the budget 🙂

  9. SPC 9

    I will only vote for a party which has CGT on any second property (I would allow no CGT on a first home being rented out to others and possibly a secondary holiday home if it was not being rented out). Fortunately I also support the Greens on most of their other policy.

    The S and P credit ratings agency says one of the reasons why we must have better government accounts than they ask of other nations is the high foreign debt financing our homes (it increased from $80 to $160 billion in 5 years).

    If the government had a CGT policy they would have more leeway in their budget without a ratings downgrade.

    Quite simply the National-Labour duoloply pandering to the landlord class (of which they are a part) is ruining this country.

  10. toad 10

    SPC, Green policy would exempt a “family home” from a CGT -as long as you are actually living in it.

    The rest of your comment really hits the button as far as I am concerned.

    • SPC 10.1

      I realise that toad, I was just adding that I would also exempt someones first home if they were renting it out (while they were living with their parents or OE etc) and also holiday homes where they are not rented out.

      • RedLogix 10.1.1

        CGT’s don’t work. Plenty of countries have them, and yet the property bubble was just the same if not worse in those places too.

        Besides if you are a property trader, you should be paying 30% Company Tax on any profits anyhow.

        The Greens really haven’t any real insight with this knee-jerk policy.

  11. Bill 11

    So a home insulation grant of $1500 for home owners is in the budget.

    Meanwhile…a $1250 or 33% home owners insulation grant already exists.

    http://www.pinkbatts.co.nz/besnug.asp

    “ENERGYWISEâ„¢ is a government initiative aimed at improving the energy efficiency of New Zealand homes. It provides funding to help middle income homeowners and landlords upgrade the insulation in older homes….”

    So the insulation grant in the budget = $250 over what already exists. And applies to currently ineligible rich peeps. Well done the Greens and Nact.

  12. Bill 12

    Oops! $1125, not $1250.

    So the $1500 = $1500 if you are already wealthy

    And $375 if you and your partner earn less than $100 000 (you’d have qualified for the 1/3 or $1125 grant)

    • SPC 12.1

      I find the National Party’s belated devotion to universal entitlements somewhat touching.

      But one would have to factor in the fact that most of those on over $100,000 in pre 2000 homes would have upgraded any house they purchased by insulating it. Many of those on this salary buying houses now, would be looking at post 2000 homes or looking for homes already upgraded (selling point).

      The good thing about the budget is that it will help publicise entitlements to the ($1150 to 1500) subsidy. Also will it now include heat pumps and not just insulation?

      • Bill 12.1.1

        So the honest thing would have been to better promote the existing grants and upped the max. available to $1500. Maybe even tinkered with the details of the scheme along the way.

        But to announce the $1500 as part of a budget as though the existing grants of $1250 did not exist…..as though the proposal in the budget was something entirely new?

        Nah. That’s just dishonest.

      • Bill 12.1.2

        Grants are already available for installing heat pump water heating, solar water heating and clean heating.

        http://www.energywise.govt.nz/funding-available

        Then there is this for landlords http://www.energywise.govt.nz/funding-available/insulation-and-clean-heating/funding-for-landlords

        Funding for landlords and their rental properties

        In New Zealand, 33% of our homes are rental properties. New Zealand has over 300,000 rental properties, and over a quarter of these are occupied by people on a low income. Many of these homes have substandard insulation, and often have inadaquate or inefficient heating (such as an open fire).

        If you are landlord with low-income tenants, funding is available to you for insulation for your house, and a range of other energy efficiency improvements. You can get funding for at least 60% towards costs of insulation for your rental property. Funding from other organisations is also available in some areas. Landlords need to contribute a minimum of $500 dollars to house improvements. The tenant does not contribute any money to the retrofit.

        • RedLogix 12.1.2.1

          Yes I’ve one older property I’ve been trying to get done fully for ages, but the local agency in the area keeps on running out grant money. I’ve been put off about 4 times in 18 months now.

          It’s all rather an inflexible process to have to go through, and trust me I’m highly motivated to get it done.

  13. jarbury 13

    So as a tenant in a very cold home what can I do? Call the landlord and beg?

  14. John Dalley 14

    jarbury.
    That’s about the size of it. I know a fairly compassionate landlord and he will not subscribe the the insulation scheme because of the $500.00. It would have to be made mandatory before most landlords will take any action.

    • RedLogix 14.1

      Again you miss the real problem. A full upgrade, ceiling, walls, windows, floor, new heating and done properly is around $15-25k.

      Yet the valuation of the property will likely either not change, or maybe increase $2-5k. The bank is not interested in funding it. The cash has to come directly out of the business’s cash flow.

      The tenant pays for all the energy costs, so the landlord sees no return on the investment, and in reality the rent is not likely to increase much either. (Rents are very peculiar thing, influenced mostly by number of bedrooms, parking, and location… ). The ROI period for the landlord is likely to be in the order of decades.

      With most properties barely cash flow positive these days, even the most motivated landlord finds this a major hurdle to leap over.

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    Peter Dunne writes – This week’s government bailout – the fifth in the last eighteen months – of the financially troubled Ruapehu Alpine Lifts company would have pleased many in the central North Island ski industry. The government’s stated rationale for the $7 million funding was that it ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Two offenders, different treatments.
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    4 days ago
  • Treaty references omitted
    Ele Ludemann writes  – The government is omitting general Treaty references from legislation : The growth of Treaty of Waitangi clauses in legislation caused so much worry that a special oversight group was set up by the last Government in a bid to get greater coherence in the public service on Treaty ...
    Point of OrderBy poonzteam5443
    4 days ago
  • The Ghahraman Conflict
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    Point of OrderBy poonzteam5443
    4 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 15
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    The KakaBy Bernard Hickey
    5 days ago
  • The day Wellington up-zoned its future
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    The KakaBy Bernard Hickey
    5 days ago
  • Weekly Roundup 15-March-2024
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    Greater AucklandBy Greater Auckland
    5 days ago
  • That Word.
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    Nick’s KōreroBy Nick Rockel
    5 days ago
  • The Hoon around the week to March 15
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    The KakaBy Bernard Hickey
    5 days ago
  • Labour’s policy gap
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    PolitikBy Richard Harman
    5 days ago
  • Skeptical Science New Research for Week #11 2024
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    5 days ago
  • Melissa remains mute on media matters but has something to say (at a sporting event) about economic ...
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    Point of OrderBy Bob Edlin
    5 days ago
  • The return of Muldoon
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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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    Democracy ProjectBy Geoffrey Miller
    5 days ago
  • Racism’s double standards
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    Point of OrderBy poonzteam5443
    5 days ago
  • It’s not a tax break
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    Point of OrderBy poonzteam5443
    6 days ago
  • The Plastic Pig Collective and Chris' Imaginary Friends.
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    6 days ago
  • Who is responsible for young offenders?
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    Point of OrderBy poonzteam5443
    6 days ago
  • Gordon Campbell on National’s fantasy trip to La La Landlord Land
    How much political capital is Christopher Luxon willing to burn through in order to deliver his $2.9 billion gift to landlords? Evidently, Luxon is: (a) unable to cost the policy accurately. As Anna Burns-Francis pointed out to him on Breakfast TV, the original ”rock solid” $2.1 billion cost he was ...
    6 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 14
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    The KakaBy Bernard Hickey
    6 days ago
  • No, Prime Minister, rents don’t rise or fall with landlords’ costs
    TL;DR: Prime Minister Christopher Luxon said yesterday tenants should be grateful for the reinstatement of interest deductibility because landlords would pass on their lower tax costs in the form of lower rents. That would be true if landlords were regulated monopolies such as Transpower or Auckland Airport1, but they’re not, ...
    The KakaBy Bernard Hickey
    6 days ago
  • Cartoons: ‘At least I didn’t make things awkward’
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  • Solving traffic congestion with Richard Prebble
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    Greater AucklandBy Patrick Reynolds
    6 days ago
  • I Think I'm Done Flying Boeing
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    6 days ago
  • Invoking Aristotle: Of Rings of Power, Stones, and Ships
    The first season of Rings of Power was not awful. It was thoroughly underwhelming, yes, and left a lingering sense of disappointment, but it was more expensive mediocrity than catastrophe. I wrote at length about the series as it came out (see the Review section of the blog, and go ...
    6 days ago
  • 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...
    Bob Edlin writes  –  The Māori Party has been busy issuing a mix of warnings and threats as its expresses its opposition to interest deductibility for landlords and the plans of seabed miners. It remains to be seen whether they  follow the example of indigenous litigants in Australia, ...
    Point of OrderBy Bob Edlin
    6 days ago

  • Government moves to quickly ratify the NZ-EU FTA
    "The Government is moving quickly to realise an additional $46 million in tariff savings in the EU market this season for Kiwi exporters,” Minister for Trade and Agriculture, Todd McClay says. Parliament is set, this week, to complete the final legislative processes required to bring the New Zealand – European ...
    BeehiveBy beehive.govt.nz
    8 hours 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
    12 hours ago
  • Minister confirms reduced RUC rate for PHEVs
    Cabinet has agreed to a reduced road user charge (RUC) rate for plug-in hybrid electric vehicles (PHEVs), Transport Minister Simeon Brown says. Owners of PHEVs will be eligible for a reduced rate of $38 per 1,000km once all light electric vehicles (EVs) move into the RUC system from 1 April.  ...
    BeehiveBy beehive.govt.nz
    14 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
    15 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
    1 day 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. ...
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    1 day 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
    5 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
    5 days ago
  • Speech for Financial Advice NZ Conference 5 March 2024
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    5 days ago
  • Early visit to Indonesia strengthens ties
    Foreign Minister Winston Peters held discussions in Jakarta today about the future of relations between New Zealand and South East Asia’s most populous country.   “We are in Jakarta so early in our new government’s term to reflect the huge importance we place on our relationship with Indonesia and South ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • China Foreign Minister to visit
    Deputy Prime Minister and Minister of Foreign Affairs Winston Peters has announced that the Foreign Minister of China, Wang Yi, will visit New Zealand next week.  “We look forward to re-engaging with Foreign Minister Wang Yi and discussing the full breadth of the bilateral relationship, which is one of New Zealand’s ...
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    5 days ago
  • Minister opens new Auckland Rail Operations Centre
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    5 days ago
  • Celebrating 10 years of Crankworx Rotorua
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    5 days ago
  • Government delivering on tax commitments
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    5 days ago
  • Significant Natural Areas requirement to be suspended
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    6 days ago
  • Government classifies drought conditions in Top of the South as medium-scale adverse event
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    6 days ago
  • Government partnership to tackle $332m facial eczema problem
    The Government is helping farmers eradicate the significant impact of facial eczema (FE) in pastoral animals, Agriculture Minister Todd McClay announced.  “A $20 million partnership jointly funded by Beef + Lamb NZ, the Government, and the primary sector will save farmers an estimated NZD$332 million per year, and aims to ...
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    6 days ago
  • NZ, India chart path to enhanced relationship
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    6 days ago
  • Ruapehu Alpine Lifts bailout the last, say Ministers
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    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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    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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    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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    7 days ago
  • 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 ...
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    7 days ago
  • Government backs rural led catchment projects
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    7 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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    1 week ago
  • Commission’s advice on ETS settings tabled
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    1 week ago
  • Government lowering building costs
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  • Trustee tax change welcomed
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    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 ...
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    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 ...
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    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
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    1 week ago
  • Minister to attend World Anti-Doping Agency Symposium
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    1 week ago

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