CGT: the focus groups made Key do it

Written By: - Date published: 8:42 am, May 18th, 2015 - 39 comments
Categories: capital gains, john key, national, national/act government, tax - Tags: ,

So …

Remember all the attacks that Labour sustained because it proposed a Capital Gains Tax so that something could be done about addressing spiralling house price speculation and the lack of investment in Aotearoa’s productive sector?  Remember back in 2012 when John Key said that he hated CGTs and they were vote losers and did not work unless they were comprehensive?  Remember last election when Key attacked Labour’s proposed CGT and claimed that a house owned by a family trust would be subject to the tax even though the legislation had not been drafted?  Remember recently when Key said “I don’t think a capital gains tax works” and that they are highly inefficient?

Well suddenly the Government is proposing one.  It is an insipid easily avoidable one, but nevertheless the Government is going to introduce a CGT that will apply to profits made on the sale of houses in certain circumstances.

Key is trying to say that it is not a CGT.  He is also trying to say that there is no housing bubble and that he has not recently changing his mind, despite a month ago stating that the Government was not going to introduce measures to address land speculation.  Perhaps he is referring to the situation on Planet Key and not Planet Earth.

Even Key’s extraordinary ability to persuade some people that black is white will be stretched to pull this off.  The tax is a tax that is paid if the capital item you purchase goes up in value and you sell it within two years of of buying it.  From initial reports intention will be irrelevant and only transmissions on death, sale of the family home and relationship property settlements will be exempt.  If it looks like a CGT and sounds like a CGT …

From Radio New Zealand:

Mr Key said there was already a tax for people buying properties with the intention of selling it for a profit but enforcement of that tax relied on proving intent.

He insisted the new policy was not a capital gains tax.

“I’m opposed to capital gains taxes … A capital gains tax means that when you buy a property, it doesn’t matter when you sell it, you pay the capital gains tax.

“The reason I’m opposed to them is you can drive a bus through them because people structure themselves in a way…

“This is just simply saying the current law is you have to pay on intent; we’re taking away the presumption that you can argue [that] within a two-year period, buying or selling a property, other than your family home, that actually what you’re really doing was looking to make a gain – it’s quite a different sort of thing.”

There is more than a whiff of panic about the measure.  Apparently backbenchers were hastily told on Saturday night about the announcement of the policy (whaleoil donotlink link).

The measures to tighten up on identification and require the provision of an IRD number are advisable and follow continuous criticism by Labour and by Winston Peters at the Government’s failure to collect data concerning purchases of land by foreign entities.  This article is from April 2014.  That it has taken this long to respond shows the Government’s commitment to doing something.

Despite speculation to the contrary Labour has not shelved the idea of a CGT.  Andrew Little has advocated for a review of the policy and consideration of all options.  It may be that the party will agree on a general review of the tax system to work out what is the best way to address the housing crisis.

Question time in Parliament this week should be interesting.  Perhaps the first question to Key should be what happens if a couple transfers the family home to a trust and within two years the trust sells the home …

 

39 comments on “CGT: the focus groups made Key do it ”

  • Comments are now closed

  1. Detrie 1
    18 May 2015 at 9:16 am

    Spot on. Sounds like the emperors clothes story all over again. As you say, getting around the family trust issues will be the trick. Tampering like this seldom works.

  2. Lanthanide 2
    18 May 2015 at 9:19 am

    Key’s explanation for what happened here on Morning Report did sound plausible.

    They asked IRD about bright-line tests for speculators and they said there wasn’t anything appropriate that could be done, and instead asked for more money to crack down on the ‘intentions’ of investors when selling property. So in Budget 2010 and 2014 they had increased the money going to IRD to police this activity, based on IRD advice. However when asked again, just recently the IRD came back and said “achtully, a 2-year bright line test would work” and so that’s why they’re doing it this time.

    It’s probably just a cover-story, but it is plausible.

    • Sacha 2.1
      18 May 2015 at 9:38 am

      But what has changed since the first time IRD were asked about such a test, other than the political climate?

    • Brendon Harre 2.2
      18 May 2015 at 9:42 am

      No it is not plausible Lanthanide.

      Governments do not outsource tax setting decisions to the IRD, that is for the public to decide through that thing that all politicians are very sensitive about -elections. You may have remembered CGT were discussed last election. This administration said CGT were a stupid idea before the last election and now only a few months later they are implementing a weak form of CGT……

      Spin it how you will, but in my eyes it is a major backtrack, a sign of desperation and a lie to those that voted based on Nationals pre election statements about CGT and the housing bubble.

      When will the public see John Key for what he really is. The emperor is wearing no clothes…..

      • Colonial Rawshark 2.2.1
        18 May 2015 at 9:49 am

        Governments do not outsource tax setting decisions to the IRD, that is for the public to decide through that thing that all politicians are very sensitive about -elections.

        Government asks IRD for the tax priorities, problems and options to consider, as well as IRD’s recommendations for courses of action.

      • Lanthanide 2.2.2
        18 May 2015 at 12:29 pm

        All government departments clearly have advisory and consultation responsibilities, for Treasury it is their main role.

        Also I’m not spinning it at all; in fact I haven’t even commented on what I think about it anywhere on The Standard. John Key is spinning it.

      • John 2.2.3
        19 May 2015 at 12:14 am

        How can it be a backtrack when –
        1/ we’ve had the tax for a very long time, and
        2/ every year since the 2010 budget, the current government has got the IRD to clamp down more and more on those trying to avoid paying tax on housing speculation.

        From Interest.co.nz 2014
        “IRD focused on property developers speculating in the residential market, particularly in Auckland and Queenstown, but property speculation was just one area where the pursuit of undeclared or under-declared income could pay off, McClay said.

        In the 2012/13 year, IRD spent $172 million on enforcement and compliance and received a return of $1.2 billion, which was $7.47 in tax revenue for every dollar spent.

        In 2013/14 it spent $165 million and received $1.24 billion, which was $8 for every dollar spent.”
        See http://www.interest.co.nz/property/73121/ird-chases-residential-property-speculators-auckland-and-queenstown

        The tax is on people who trade in houses, the same way someone who buys and sells cars for profit is taxed on their “captial gains” (or cycles, appliances, funiture etc) .

        So continuing to tighten the same tax on trading houses that has been tightened more and more over the last five years, is just the opposite of “backtracking”

        • Matthew Whitehead 2.2.3.1
          19 May 2015 at 11:51 pm

          The changes or “bright-line test” make this fundamentally not the same type of tax. This is no longer a subjective tax on property-for-resale, it’s now an objective CGT that applies to very short-term investment properties in order to cool down speculation on houses and estate agents buying houses for resale.

          It’s not a comprehensive CGT, but given National’s talking points, that makes it even worse according to their own arguments around avoidance, fairness, and complication. LOL.

          • John 2.2.3.1.1
            20 May 2015 at 12:10 am

            The vast majority of people buying an investment property and selling it within two years are doing it to make a profit.

            All it’s doing is closing the all the loopholes, that until the tightening started happening 2010, meant the tax was largely ignored.

            It’s effectively a trading tax, in the same way that if I trade cars, art works, general auction goods, appliances, or any other products, I’m taxed on the profit I make.

            In all those examples, the profit is effectively from a capital gain. But it’s not a capital gain tax.

  3. Michael Nolan 3
    18 May 2015 at 9:34 am

    The sky is blue, the grass is green, and a tax on capital gains is a capital gains tax. The only thing more incredible than the humiliating back down on a CGT that Key ridiculed Labour about in last years Election is the contempt he treats NZers with when he tries to put lipstick on his half-arse CGT effort and expects us to believe it is something else

    • John 3.1
      20 May 2015 at 12:26 am

      “….a tax on capital gains is a capital gains tax. ”

      Except when it not.

      Like for every business in New Zealand that make it’s money from buying products and selling them at a higher price – whether the product is houses, cars or jelly beans. It’s merely a tax on profits.

      And just two days ago, even the Labour leader was arguing that it’s NOT a CGT.

  4. Puckish Rogue 4
    18 May 2015 at 9:36 am

    Pragmatism at its finest, spike something Labour were going to bang on about but do it in a fair and equitable way

  5. Colonial Rawshark 5
    18 May 2015 at 9:57 am

    The NATs appear to be in internal division over this; Key should just front foot it with strength instead of being all coy and evasive. “The Reserve Bank move last week confirmed that there is a problem with some speculative investors over-heating the difficult Auckland housing market; we are simply approaching the same problem from a different angle.”

  6. SHG 6
    18 May 2015 at 10:00 am

    Summary: National, good at politics

    • Bearded Git 6.1
      18 May 2015 at 11:06 am

      @SHG …….and useless at running the economy. It has taken years to dawn on them that a CGT was needed to stop Akl house speculation, lies and denial throughout.

      Is that really good politics, or is that what you and the MSM are spinning us?

      • Colonial Rawshark 6.1.1
        18 May 2015 at 12:38 pm

        @SHG …….and useless at running the economy. It has taken years to dawn on them that a CGT was needed to stop Akl house speculation, lies and denial throughout.

        Uh, no. The NATs have been running the economy for their property developer and property investor mates just fine. And National’s CGT will do minimal to slow down Auckland house price increases. Just like Labour’s CGT.

        Neither big party is at all serious about stopping Auckland house price increases.

        • AmaKiwi 6.1.1.1
          18 May 2015 at 1:43 pm

          The majority of National AND Labour MP’s own several properties.

          “It is very difficult to get an MP to understand something when his retirement nest egg depends on not understanding it.”

          (I modified the quote from Upton Sinclair).

    • Sabine 6.2
      18 May 2015 at 11:39 am

      National, no new ideas since ages ago.
      That’s why they recycle Labour ideas.

      But what about the Family Trust!!!!!!! Lol LOl Lol

      • SHG 6.2.1
        18 May 2015 at 12:21 pm

        This is why National has been able to claim the centre and keeps winning elections. If an idea is useful and could result in positive outcomes, National will adopt it and pretty soon everyone thinks of it as National’s idea. But Labour will never adopt a policy originating within National. A good idea that happens to have originated with the National Party will never become Labour policy, because dogma.

    • Clemgeopin 6.3
      18 May 2015 at 11:48 pm

      You left the prefix, ‘dirty’ in front of politics.

  7. Paul Campbell 7
    18 May 2015 at 12:10 pm

    In some sense I agree with Key especially with his US background. In the US all capital gains are taxed as normal income with two major exemptions: the family home, and registered investments held for more than 2 years which attract a lower tax rate in the US it’s then lower rate that is called the “capital gains tax”. So in one sense at least this is “not a capital gains tax” but only if you believe, as I do, that by default all capital gains should be taxed as ordinary earned income.

    • dukeofurl 7.1
      18 May 2015 at 1:40 pm

      Dont know the family home in US is an exemption ?

      “To calculate the capital gains or losses, take the sales price then deduct selling expenses, from the amount realized. Then deduct the original cost of property, plus expenses deemed to have increased its value, less claims which have notionally decreased its value (this is known as the “adjusted basis”). Expenses deemed to have increased its value are capital improvements (roof replacement, paving the driveway, central air conditioning installation, rewiring, etc.)”

      It wouldnt make sense to have an exemption for family home as the homeowners can deduct interest costs from their taxes

      • Paul Campbell 7.1.1
        19 May 2015 at 2:16 am

        it is but not in a simple way – essentially every time you sell your home and buy a new one worth more no CGT is assessed, but the untaxed capital gain is rolled ovetr, and then (depending, because Bush changed the law) either:

        1) you get a one time in your life chance to sell your home and buy a cheaper one (up to some limit) without being assessed CGT, or

        2) every 5 years you get to sell your home and buy a cheaper one and write of $500k of the CGT)

        ( 1) was true until about 2002 when Bush changed it to 2), the threshold may have changed since, I moved back home to NZ in ’04 )

        I like 1) it follows most people’s life arcs – when the kids are gone, and you’re retiring you get to access the value in your home, once.

        Remember we are talking about taxing the increased value of your home, something you got without working for, not the portion you saved for and paid off. To be fairer I could imagine a CGT that only taxes the portion past the annual inflation rate – but really all income, whether it’s from real estate or stocks and bonds, the lottery, or your daily job should be taxed the same way.

        Oh, and the US bizarrely makes money paid for your mortgage’s interest (but not principal) income tax deductable (along with rates and other stuff)

  8. mac1 8
    18 May 2015 at 12:29 pm

    A quote from Key from April 21.

    “I mean one of the reasons why there probably hasn’t been a significant correction is because over the last 45 years there’s a general view that housing prices are not over-valued relative to a whole lot of different factors.”

    How can anyone argue with that statement except to say it is meaningless?

    It is full of qualifications=
    “One of the reasons”. Does he go on to talk about the other reasons?

    “probably” There’s an out if ever I read one.

    “‘general view” is also very, well, general.

    “are not overvalued” The use of a negative is much less definite than saying “are undervalued” or “are correctly valued.”

    “relative” gives a great deal of wriggle room.

    “whole lot of different factors” in which we are not told how many nor are we advised what they are.

    This is classic John Key. Saying nothing, sounding reasonable, using layman’s language, and having so much room to be able to change direction and still stay within the parameters of this meaningless statement.

    The opposition, and the media, need to pin Key down to statements on important issues having much more precision than this.

  9. philj 9
    18 May 2015 at 12:33 pm

    Key on RNZ Morning Report to Guyon, on housing CGT etc.
    “Collecting data of itself doesn’t do anything…. unless you do something about it….. ” So that’s a clear explanation of why the government doesn’t want ” perfect data”

  10. ianmac 10
    18 May 2015 at 1:25 pm

    In due course a future Government could tweak the 2year limit out to 3 or 5 or 10 years.

    • dukeofurl 10.1
      18 May 2015 at 1:42 pm

      or more likely set up a number of houses bought and sold that define you as a trader, and thus liable for tax no matter the time involved.

  11. dukeofurl 11
    18 May 2015 at 1:47 pm

    What would be interesting is if a house owned by a ‘family trust’ can be said to be a family home ?

    The trustees may or may not live in the house. The beneficiaries of the trust may or may not live in the house.

    One of my neighbours has a house which his daughter lives in. It may be a trust or personal ownership but as he doesnt live there, not counted.

    • SHG 11.1
      18 May 2015 at 1:57 pm

      Let’s ask mickeysavage. If there’s one thing that guy knows, it’s the ins and outs of setting up trusts.

      AMIRITE

    • Anno1701 11.2
      18 May 2015 at 4:10 pm

      We rent , and our rent gets paid into an account labelled ” XXXX family trust”

  12. Penny Bright 12
    18 May 2015 at 4:29 pm

    Is housing predominantly a ‘human right’ or a ‘property right’?

    How many of the apparently 22,000 Auckland ‘ghost city’ private sector houses, (as described in the 2013 census), are empty because their owners make more money that way?

    While some people are living in caravans, cars, or sleeping rough on Queen Street Auckland, the ‘$upercity’ aspiring to be ‘the most liveable city in the world’?

    Penny Bright

    http://www.pennybright4mayor.org.nz

  13. felix 13
    18 May 2015 at 8:22 pm

    “He is also trying to say that there is no housing bubble and that he has not recently changing his mind, despite a month ago stating that the Government was not going to introduce measures to address land speculation.”

    Bill English was saying the same thing 5 days ago. Nothing planned, nothing in the pipeline etc etc. Duncan Garner was playing the clip over and over on radiolive this afternoon.

  14. Clemgeopin 14
    19 May 2015 at 1:25 am

    ” Nothing planned, nothing in the pipeline etc etc”

    I read that Key said today that this tax plan has been under preparation for the last few years! Key: “‘Bright line’ property tax years in the making” !

    Yet, Revenue Minister Todd McClay says despite only being a month in the works, it was carefully thought-through.
    “Over a four- or five-week period we looked very closely at not only what the Reserve Bank is doing, but what other measures may be there from a tax point of view.”

    Read more: http://www.3news.co.nz/business/key-bright-line-property-tax-years-in-the-making-2015051809#ixzz3aUoybvuB

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  • Satisfying the Minister’s Speed Obsession

    The Minister of Transport’s speed obsession has this week resulted in two new consultations for 110km/h speed limits, one in Auckland and one in Christchurch. There has also been final approval of the Kapiti Expressway to move to 110km/h following an earlier consultation. While the changes will almost certainly see ...
    Greater AucklandBy Matt L
    5 days ago
  • What if we freed up our streets, again?

    This guest post is by Tommy de Silva, a local rangatahi and freelance writer who is passionate about making the urban fabric of Tāmaki Makaurau-Auckland more people-focused and sustainable. New Zealand’s March-April 2020 Level 4 Covid response (aka “lockdown”) was somehow both the best and worst six weeks of ...
    Greater AucklandBy Guest Post
    5 days ago
  • No Alarms And No Surprises

    A heart that's full up like a landfillA job that slowly kills youBruises that won't healYou look so tired, unhappyBring down the governmentThey don't, they don't speak for usI'll take a quiet lifeA handshake of carbon monoxideAnd no alarms and no surprisesThe fabulous English comedian Stewart Lee once wrote a ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Five ingenious ways people could beat the heat without cranking the AC

    This is a re-post from Yale Climate Connections by Daisy Simmons Every summer brings a new spate of headlines about record-breaking heat – for good reason: 2023 was the hottest year on record, in keeping with the upward trend scientists have been clocking for decades. With climate forecasts suggesting that heat waves ...
    Skeptical Science
    5 days ago
  • No new funding for cycling & walking

    Studies show each $1 of spending on walking and cycling infrastructure produces $13 to $35 of economic benefits from higher productivity, lower healthcare costs, less congestion, lower emissions and lower fossil fuel import costs. Photo: Lynn Grieveson / The KākāMōrena. Long stories short; here’s my top six things to note ...
    The KakaBy Bernard Hickey
    5 days ago
  • 99

    Dad turned 99 today.Hell of a lot of candles, eh?He won't be alone for his birthday. He will have the warm attention of my brother, and my sister, and everyone at the rest home, the most thoughtful attentive and considerate people you could ever know. On Saturday there will be ...
    More Than A FeildingBy David Slack
    5 days ago
  • Open Government: National reneges on beneficial ownership

    One of the achievements of the New Zealand’s Open Government Partnership Fourth National Action Plan was a formal commitment from the government to establish a public beneficial ownership register. Such a register would allow the ultimate owners of companies to be identified - a vital measure in preventing corruption, money ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Security Politics in Peripheral Democracies: Excerpt One.

    This project analyzes security politics in three peripheral democracies (Chile, New Zealand, Portugal) during the 30 years after the end of the Cold War. It argues that changes in the geopolitical landscape and geo-strategic context are interpreted differently by small … Continue reading → ...
    KiwipoliticoBy Pablo
    5 days ago
  • Tea and Toast

    When the skies are looking bad my dearAnd your heart's lost all its hopeAfter dawn there will be sunshineAnd all the dust will goThe skies will clear my darlingNow it's time for you to let goOur girl will wake you up in the mornin'With some tea and toastLyrics: Lucy Spraggan.Good ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • NLTP 2024 released – destroying pipeline of shovel ready local projects

    Transport Minister Simeon Brown and Waka Kotahi yesterday released the latest National Land Transport Plan (NLTP) for 2024-27. The NLTP sets out what transport projects will be funded for the next three years, including both central and local government projects. As expected given the government’s extremely ideological transport policy, it’s ...
    Greater AucklandBy Matt L
    6 days ago
  • Can Brown deliver his roads

    The Government’s unveiling of its road-building programme yesterday was ambitious and, many would say, long overdue. But the question will be whether it is too ambitious, whether it is affordable, and, if not, what might be dropped. The big ticket items will be the 17 so-called Roads of National Significance. ...
    PolitikBy Richard Harman
    6 days ago
  • New paper about detecting climate misinformation on Twitter/X

    Together with Cristian Rojas, Frank Algra-Maschio, Mark Andrejevic, Travis Coan, and Yuan-Fang Li, I just published a paper in Nature Communications Earth & Environment where we use the Computer Assisted Recognition of Denial and Skepticism (CARDS) machine learning model to detect climate misinformation in 5 million climate tweets. We find over half ...
    Skeptical Science
    6 days ago
  • Excerpting “Security Politics in Peripheral Democracies.”

    In the late 2000s-early 2010s I was researching and writing a book titled “Security Politics in Peripheral Democracies: Chile, New Zealand and Portugal.” The book was a cross-regional Small-N qualitative comparison of the security strategies and postures of three small … Continue reading → ...
    KiwipoliticoBy Pablo
    6 days ago
  • Hating for the Wrong Reasons: Of Rings of Power, Orcs and Evil

    A few months ago, my fellow countryman, HelloFutureMe, put out a giant YouTube video, dissecting what went wrong with the first season of Rings of Power (https://www.youtube.com/watch?v=gJ6FRUO0ui0&t=8376s). It’s an exceptionally good video, and though it spans some two and a half hours, it is well worth your time. But ...
    A Phuulish FellowBy strda221
    6 days ago
  • Climate Change: “Least cost” to who?

    On Friday the Parliamentary Commissioner for the Environment released their submission on National's second Emissions Reduction Plan, ripping the shit out of it as a massive gamble based on wishful thinking. One of the specific issues he focused on was National's idea of "least cost" emissions reduction, pointing out that ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Israeli Lives Matter

    There is no monopoly on common senseOn either side of the political fenceWe share the same biology, regardless of ideologyBelieve me when I say to youI hope the Russians love their children tooLyrics: Sting. Read more ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • Luxon Cries

    Over the weekend, I found myself rather irritably reading up about the Treaty of Waitangi. “Do I need to do this?” It’s not my jurisdiction. In any other world, would this be something I choose to do?My answer - no.The Waitangi Tribunal, headed by some of our best legal minds, ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • Just one Wellington home being consented for every 10 in Auckland

    A decade of under-building is coming home to roost in Wellington. Photo: Lynn Grieveson / The KākāMōrena. Long stories short; here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Monday September 2:Wellington’s leaders are wringing their hands over an exodus of skilled ...
    The KakaBy Bernard Hickey
    6 days ago
  • Container trucks on local streets: why take the risk?

    This is a guest post by Charmaine Vaughan, who came to transport advocacy via her local Residents Association and a comms role at Bike Auckland. Her enthusiasm to make local streets safer for all is shared by her son Dylan Vaughan, a budding “urban nerd” who provided much of the ...
    Greater AucklandBy Guest Post
    6 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #35

    A listing of 35 news and opinion articles we found interesting and shared on social media during the past week: Sun, August 25, 2024 thru Sat, August 31, 2024. Story of the week After another crammed week of climate news including updates on climate tipping points, increasing threats from rising ...
    Skeptical Science
    1 week ago
  • An Uncanny Valley of Improvement: A Review and Analysis of The Rings of Power, Episodes 1-3 (Season ...

    And thus we come to the second instalment of Amazon’s Rings of Power. The first season, in 2022, was underwhelming, even for someone like myself, who is by nature inclined to approach Tolkien adaptations with charity. The writing was poor, the plot made no sense on its own terms, and ...
    A Phuulish FellowBy strda221
    1 week ago
  • Alcohol debris and Crocodile Tears

    I write to you this morning from scenes of carnage. Around the floor lie young men who only hours earlier were full of life, and cocktails, and now lie silent. Read more ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • When Do We Look Away?

    Hi,The first time I saw something that made me recoil on the internet was a visit to Rotten.com. The clue was in the name — but the internet was a new thing to me in the 90s, and no-one really knew what the hell was going on. But somehow I ...
    David FarrierBy David Farrier
    1 week ago
  • The decades just fly by

    You turn your back for a moment and a city can completely transform itself. It was, oh, just the other day I was tripping up to Kuala Lumpur every few months to teach workshops and luxuriate in the tropical warmth and fill my face with Char Kway Teow.It has to ...
    More Than A FeildingBy David Slack
    1 week ago
  • 2024 Reading Summary: August

    Completed reads for August: Aesop’s Fables (collection), by Aesop Berserk: Volume XXV (manga), by Kentaro Miura Benighted, by J.B. Priestly Berserk: Volume XXVI (manga), by Kentaro Miura Berserk: Volume XXVII (manga), by Kentaro Miura Berserk: Volume XXVIII (manga), by Kentaro Miura Berserk: Volume XXIX (manga), by Kentaro Miura ...
    A Phuulish FellowBy strda221
    1 week ago
  • Is recent global warming part of a natural cycle?

    Skeptical Science is partnering with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. This fact brief was written by Sue Bin Park from the Gigafact team in collaboration with John Mason. You can submit claims you think need checking via the tipline. Is recent global warming part ...
    Skeptical Science
    1 week ago
  • White Noise

    Now here we standWith our hearts in our handsSqueezing out the liesAll that I hearIs a message, unclearWhat else is there to decide?All that I'm hearing from youIs White NoiseLyrics: Christopher John CheneyIs the tide turning?Have we reached the high point of the racist hate and lies from Hobson’s Pledge, ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • The Death Of “Big Norm” – Exactly 50 Years Ago Today.

    Norman KirkPrime Minister of New Zealand 1972-1974Born: 6 January 1923 - Died: 31 August 1974Of the working-class, by the working-class, for the working-class.Video courtesy of YouTubeThese elements were posted on Bowalley Road on Saturday, 31 August 2024. ...
    Bowalley Road
    1 week ago
  • Claims and Counter-Claims.

    Whose Foreshore? Whose Seabed? When the Marine and Coastal Area Act was originally passed back in 2011, fears about the coastline becoming off-limits to Pakeha were routinely allayed by National Party politicians pointing out that the tests imposed were so stringent  that only a modest percentage of claims (the then treaty ...
    Bowalley Road
    1 week ago

  • New Zealand Honours Maori King ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • The Principles of the Treaty

    Hardly anyone says what are ‘the principles of the treaty’. The courts’ interpretation restrain the New Zealand Government. While they about protecting a particular community, those restraints apply equally to all community in a liberal democracy – including a single person.Treaty principles were introduced into the governance of New Zealand ...
    PunditBy Brian Easton
    1 week ago
  • The Only Other Reliable Vehicle.

    An Elite Leader Awaiting Rotation? Hipkins’ give-National-nothing-to-aim-at strategy will only succeed if the Coalition becomes as unpopular in three years as the British Tories became in fourteen.THE SHAPE OF CHRIS HIPKINS’ THINKING on Labour’s optimum pathway to re-election is emerging steadily. At the core of his strategy is Hipkins’ view ...
    Bowalley Road
    1 week ago
  • A Big F U to this Right Wing Government

    Open to all - deep thanks to those who support and subscribe.One of the things that has got me interested recently is updates about Māori wards.In April, Stuff’s Karanama Ruru reported that ~ 2/3 of our 78 councils had adopted Māori wards in NZ.That meant that under the Coalition repeal ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Climate Change: James Shaw’s legacy keeps paying off

    One of the central planks of the previous Labour-Green government's emissions reduction policy was GIDI (Government Investment in Decarbonising Industry). This was basically using ETS revenue to pay polluters to clean up production, reducing emissions while protecting jobs. Corporate welfare, but it got the job done, and was often a ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Gravity

    Oh twice as much ain't twice as goodAnd can't sustain like one half couldIt's wanting moreThat's gonna send me to my kneesSong: John MayerSome ups and downs from the last week of August ‘24. The good and bad, happy and sad, funny and mad, heroes and cads. The week that ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Ditch the climate double speak and get real

    Long stories short, here’s the top six news items of note in climate news for Aotearoa-NZ this week, and a discussion above between Bernard Hickey and The Kākā’s climate correspondent Cathrine Dyer:The Government announced changes to the Fast-Track Approvals Bill on Sunday, backing off from the contentious proposal to give ...
    The KakaBy Bernard Hickey
    1 week ago
  • The Hoon around the week to August 30

    The podcast above of the weekly ‘Hoon’ webinar for paying subscribers on Thursday night features co-hosts and talking about the week’s news with:The Kākā’s climate correspondent on the latest science of changing sea temperatures and which emissions policies actually work; on the latest from Ukraine, Gaza and ...
    The KakaBy Bernard Hickey
    1 week ago
  • This Govt’s infrastructure strategy depends on capital gains taxes & new road taxes

    Billions of dollars in value uplift was identified around the Transmission Gully project, but that was captured 100% by landowners and not shared to pay for the project. Now National is saying value capture should be used for similar projects. Photo: Lynn Grieveson/ Getty ImagesMōrena. Long stories short; here’s my ...
    The KakaBy Bernard Hickey
    1 week ago
  • Weekly Roundup 30-August-2024

    Kia ora and welcome to the end of another week. Here’s our regular Friday roundup of things that caught our eye, in the realm of cities and transport. If you enjoy these roundups, feel free to join our growing ranks of supporters by making a recurring donation to keep the ...
    Greater AucklandBy Greater Auckland
    1 week ago
  • Table Talk: Ageing Boomers, Laurie & Les, Talk Politics.

    “That’s the sort of constitutional reform he favours: conceived in secret; revolutionary in intent; implemented incrementally without fanfare; and under no circumstances to be placed before the electorate for democratic ratification.”TO SAY IT WAS RAINING would have understated seriously the meteorological conditions. Simply put, it was pissing down. One of ...
    Bowalley Road
    1 week ago
  • Big Norm and Chris Hipkins

    It’s 50 years ago today that “Big Norm” Kirk died of a heart attack in Wellington’s Home of Compassion. Home of Compassion. Although he was Prime Minister for only 623 days, he has an iconic place in New Zealand history, particularly Labour history. When Labour leaders like Jacinda Ardern recite ...
    PolitikBy Richard Harman
    1 week ago

  • Government progresses response to Abuse in Care recommendations

    A Crown Response Office is being established within the Public Service Commission to drive the Government’s response to the Royal Commission into Abuse in Care. “The creation of an Office within a central Government agency was a key recommendation by the Royal Commission’s final report.  “It will have the mandate ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Passport wait times back on-track

    Minister of Internal Affairs Brooke van Velden says passport processing has returned to normal, and the Department of Internal Affairs [Department] is now advising customers to allow up to two weeks to receive their passport. “I am pleased that passport processing is back at target service levels and the Department ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New appointments to the FMA board

    Commerce and Consumer Affairs Minister has today announced three new appointments and one reappointment to the Financial Markets Authority (FMA) board. Tracey Berry, Nicholas Hegan and Mariette van Ryn have been appointed for a five-year term ending in August 2029, while Chris Swasbrook, who has served as a board member ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • District Court judges appointed

    Attorney-General Hon Judith Collins today announced the appointment of two new District Court judges. The appointees, who will take up their roles at the Manukau Court and the Auckland Court in the Accident Compensation Appeal Jurisdiction, are: Jacqui Clark Judge Clark was admitted to the bar in 1988 after graduating ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government makes it faster and easier to invest in New Zealand

    Associate Minister of Finance David Seymour is encouraged by significant improvements to overseas investment decision timeframes, and the enhanced interest from investors as the Government continues to reform overseas investment. “There were about as many foreign direct investment applications in July and August as there was across the six months ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Zealand to join Operation Olympic Defender

    New Zealand has accepted an invitation to join US-led multi-national space initiative Operation Olympic Defender, Defence Minister Judith Collins announced today. Operation Olympic Defender is designed to coordinate the space capabilities of member nations, enhance the resilience of space-based systems, deter hostile actions in space and reduce the spread of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government commits to ‘stamping out’ foot and mouth disease

    Biosecurity Minister Andrew Hoggard says that a new economic impact analysis report reinforces this government’s commitment to ‘stamp out’ any New Zealand foot and mouth disease incursion. “The new analysis, produced by the New Zealand Institute of Economic Research, shows an incursion of the disease in New Zealand would have ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Improving access to finance for Kiwis

    5 September 2024  The Government is progressing further reforms to financial services to make it easier for Kiwis to access finance when they need it, Commerce and Consumer Affairs Minister Andrew Bayly says.  “Financial services are foundational for economic success and are woven throughout our lives. Without access to finance our ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Prime Minister pays tribute to Kiingi Tuheitia

    As Kiingi Tuheitia Pootatau Te Wherowhero VII is laid to rest today, Prime Minister Christopher Luxon has paid tribute to a leader whose commitment to Kotahitanga will have a lasting impact on our country. “Kiingi Tuheitia was a humble leader who served his people with wisdom, mana and an unwavering ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Resource Management reform to make forestry rules clearer

    Forestry Minister Todd McClay today announced proposals to reform the resource management system that will provide greater certainty for the forestry sector and help them meet environmental obligations.   “The Government has committed to restoring confidence and certainty across the sector by removing unworkable regulatory burden created by the previous ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • More choice and competition in building products

    A major shake-up of building products which will make it easier and more affordable to build is on the way, Building and Construction Minister Chris Penk says. “Today we have introduced legislation that will improve access to a wider variety of quality building products from overseas, giving Kiwis more choice and ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Joint Statement between the Republic of Korea and New Zealand 4 September 2024, Seoul

    On the occasion of the official visit by the Right Honourable Prime Minister Christopher Luxon of New Zealand to the Republic of Korea from 4 to 5 September 2024, a summit meeting was held between His Excellency President Yoon Suk Yeol of the Republic of Korea (hereinafter referred to as ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Comprehensive Strategic Partnership the goal for New Zealand and Korea

    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Republic of Korea, Yoon Suk Yeol. “Korea and New Zealand are likeminded democracies and natural partners in the Indo Pacific. As such, we have decided to advance discussions on elevating the bilateral relationship to a Comprehensive ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • International tourism continuing to bounce back

    Results released today from the International Visitor Survey (IVS) confirm international tourism is continuing to bounce back, Tourism and Hospitality Minister Matt Doocey says. The IVS results show that in the June quarter, international tourism contributed $2.6 billion to New Zealand’s economy, an increase of 17 per cent on last ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government confirms RMA reforms to drive primary sector efficiency

    The Government is moving to review and update national level policy directives that impact the primary sector, as part of its work to get Wellington out of farming. “The primary sector has been weighed down by unworkable and costly regulation for too long,” Agriculture Minister Todd McClay says.  “That is ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Weak grocery competition underscores importance of cutting red tape

    The first annual grocery report underscores the need for reforms to cut red tape and promote competition, Commerce and Consumer Affairs Minister Andrew Bayly says. “The report paints a concerning picture of the $25 billion grocery sector and reinforces the need for stronger regulatory action, coupled with an ambitious, economy-wide ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government moves to lessen burden of reliever costs on ECE services

    Associate Education Minister David Seymour says the Government has listened to the early childhood education sector’s calls to simplify paying ECE relief teachers. Today two simple changes that will reduce red tape for ECEs are being announced, in the run-up to larger changes that will come in time from the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Over 2,320 people engage with first sector regulatory review

    Regulation Minister David Seymour says there has been a strong response to the Ministry for Regulation’s public consultation on the early childhood education regulatory review, affirming the need for action in reducing regulatory burden. “Over 2,320 submissions have been received from parents, teachers, centre owners, child advocacy groups, unions, research ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government backs women in horticulture

    “The Government is empowering women in the horticulture industry by funding an initiative that will support networking and career progression,” Associate Minister of Agriculture, Nicola Grigg says.  “Women currently make up around half of the horticulture workforce, but only 20 per cent of leadership roles which is why initiatives like this ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government to pause freshwater farm plan rollout

    The Government will pause the rollout of freshwater farm plans until system improvements are finalised, Agriculture Minister Todd McClay, Environment Minister Penny Simmonds and Associate Environment Minister Andrew Hoggard announced today. “Improving the freshwater farm plan system to make it more cost-effective and practical for farmers is a priority for this ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Milestone reached for fixing the Holidays Act 2003

    Minister for Workplace Relations and Safety Brooke van Velden says yesterday Cabinet reached another milestone on fixing the Holidays Act with approval of the consultation exposure draft of the Bill ready for release next week to participants.  “This Government will improve the Holidays Act with the help of businesses, workers, and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New priorities to protect future of conservation

    Toitū te marae a Tāne Mahuta me Hineahuone, toitū te marae a Tangaroa me Hinemoana, toitū te taiao, toitū te tangata. The Government has introduced clear priorities to modernise Te Papa Atawhai - The Department of Conservation’s protection of our natural taonga. “Te Papa Atawhai manages nearly a third of our ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Faster 110km/h speed limit to accelerate Kāpiti

    A new 110km/h speed limit for the Kāpiti Expressway Road of National Significance (RoNS) has been approved to reduce travel times for Kiwis travelling in and out of Wellington, Transport Minister Simeon Brown says. “Boosting economic growth and productivity is a key part of the Government’s plan to rebuild the economy. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • IVL increase to ensure visitors contribute more to New Zealand

    The International Visitor Conservation and Tourism Levy (IVL) will be raised to $100 to ensure visitors contribute to public services and high-quality experiences while visiting New Zealand, Minister for Tourism and Hospitality Matt Doocey and Minister of Conservation Tama Potaka say. “The Government is serious about enabling the tourism sector ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Delivering priority connections for the West Coast

    A record $255 million for transport investment on the West Coast through the 2024-27 National Land Transport Programme (NLTP) will strengthen the region’s road and rail links to keep people connected and support the region’s economy, Transport Minister Simeon Brown says.  “The Government is committed to making sure that every ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Road and rail reliability a focus for Wellington

    A record $3.3 billion of transport investment in Greater Wellington through the 2024-27 National Land Transport Programme (NLTP) will increase productivity and reduce travel times, Transport Minister Simeon Brown says.  “Delivering infrastructure to increase productivity and economic growth is a priority for our Government. We're focused on delivering transport projects ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Record investment to boost economic and housing growth in the Waikato

    A record $1.9 billion for transport investment in the Waikato through the 2024-27 National Land Transport Programme (NLTP) will create a more efficient, safe, and resilient roading network that supports economic growth and productivity, Transport Minister Simeon Brown says.  “With almost a third of the country’s freight travelling into, out ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Building reliable and efficient roading for Taranaki

    A record $808 million for transport investment in Taranaki through the 2024-27 National Land Transport Programme (NLTP) will support economic growth and productivity, Transport Minister Simeon Brown says.  “Taranaki’s roads carry a high volume of freight from primary industries and it’s critical we maintain efficient connections across the region to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Supporting growth and resilience in Otago and Southland

    A record $1.4 billion for transport investment in Otago and Southland through the 2024-27 National Land Transport Programme (NLTP) will create a more resilient and efficient network that supports economic growth and productivity, Transport Minister Simeon Brown says.  “Transport is a critical enabler for economic growth and productivity in Otago ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Delivering connected and resilient roading for Northland

    A record $991 million for transport investment in Northland through the 2024-27 National Land Transport Programme (NLTP) will strengthen the region’s connections and support economic growth and productivity, Transport Minister Simeon Brown says. “We are committed to making sure that every transport dollar is spent wisely on the projects and ...
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    6 days ago
  • Top of the South to benefit from reliable transport infrastructure

    A record $479 million for transport investment across the top of the South Island through the 2024-27 National Land Transport Programme (NLTP) will build a stronger road network that supports primary industries and grows the economy, Transport Minister Simeon Brown says.  “We’re committed to making sure that every dollar is ...
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    6 days ago
  • Government delivering reliable roads for Manawatū-Whanganui

    A record $1.6 billion for transport investment in Manawatū-Whanganui through the 2024-27 National Land Transport Programme (NLTP) will strengthen the region’s importance as a strategic freight hub that boosts economic growth, Transport Minister Simeon Brown says.  “Delivering infrastructure to increase productivity and economic growth is a priority for our Government. ...
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    6 days ago
  • Restoring connections in Hawke’s Bay

    A record $657 million for transport investment in the Hawke’s Bay through the 2024-27 National Land Transport Programme (NLTP) will support recovery from cyclone damage and build greater resilience into the network to support economic growth and productivity, Transport Minister Simeon Brown says.  “We are committed to making sure that ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Transport resilience a priority for Gisborne

    A record $255 million for transport investment in Gisborne through the 2024-27 National Land Transport Programme (NLTP) will support economic growth and restore the cyclone-damaged network, Transport Minister Simeon Brown says.  “With $255 million of investment over the next three years, we are committed to making sure that every transport ...
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    6 days ago
  • Prioritising growth and reduced travel times in Canterbury

    A record $1.8 billion for transport investment Canterbury through the 2024-27 National Land Transport Programme (NLTP) will boost economic growth and productivity and reduce travel times, Transport Minister Simeon Brown says.  “Christchurch is the economic powerhouse of the South Island, and transport is a critical enabler for economic growth and ...
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    6 days ago
  • Supporting growth and freight in the Bay of Plenty

    A record $1.9 billion for transport investment in the Bay of Plenty through the 2024-27 National Land Transport Programme (NLTP) will boost economic growth and unlock land for thousands of houses, Transport Minister Simeon Brown says.  “Transport is a critical enabler for economic growth and productivity in the Bay of ...
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    6 days ago
  • Getting transport back on track in Auckland

    A record $8.4 billion for transport investment in Auckland through the 2024-27 National Land Transport Programme (NLTP) will deliver the infrastructure our rapidly growing region needs to support economic growth and reduce travel times, Transport Minister Simeon Brown says.  “Aucklanders rejected the previous government’s transport policies which resulted in non-delivery, phantoms projects, ...
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    6 days ago
  • Record investment to get transport back on track

    A record $32.9 billion investment in New Zealand’s transport network through the 2024-27 National Land Transport Programme (NLTP) will create a more reliable and efficient transport network that boosts economic growth and productivity, Transport Minister Simeon Brown says.  “New Zealanders rejected the previous government’s transport policies which resulted in non-delivery, ...
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