web analytics

Daily review 05/04/2022

Written By: - Date published: 5:30 pm, April 5th, 2022 - 21 comments
Categories: Daily review - Tags:

Daily review is also your post.

This provides Standardistas the opportunity to review events of the day.

The usual rules of good behaviour apply (see the Policy).

Don’t forget to be kind to each other …

21 comments on “Daily review 05/04/2022 ”

  1. Poission 1

    Australian reserve bank today (like Japan) held interest rates.

    The reasonably low inflation figures (underlying 2.6 and headline 3.5%) were within the bounds of its mandate,along with employment.

    High macroeconomic indicators such as record trade and current account surplus (due to high export demand) low unemployment and internal migration patterns ,also sustained internal growth.

    https://www.rba.gov.au/media-releases/2022/mr-22-11.html

    • pat 1.1

      Have a look at the fixed term rates….although lower than here (they always are) they still indicate the trajectory…..and remember theres an election due.

      The RBA may be expecting that they can delay until things break, and they may be right, but ultimately the ability to make good the promise is not there.

      • Poission 1.1.1

        They also have a large local pond of cash flowing in on high export commodity prices.A lot being used to pay down debt and reinvest in expansion.

        The fixed term rates over there are still pricing in increases from future meetings.

        As an aside there is also a bit of Capital Flight of a different sort with migration from Melbourne and Sydney to regional centres.60K exit from Melbourne in 2021 put the breaks on residential demand.

        • pat 1.1.1.1

          Yep .but they are an economy of houses and holes….and whats going to happen to commodity prices as recession hits more and more economies?…China certainly isnt looking like needing as much steel as previously.

          • Poission 1.1.1.1.1

            China has moved its domestic program from housing construction to energy security including renewables,and more higher efficient transport such as trains (not planes) all need steel,as does the export renewable industry.

            So Australia gets to send 300 billion$ of dirt and coal to Japan.

            We get a tax cut into China on our toilet paper.

            https://www.channelnewsasia.com/business/china-cut-paper-and-wood-tariffs-new-zealand-april-7-2604631

            We also get to send milk and products due to the CCP of increasing vitamin D intake.

            • pat 1.1.1.1.1.1

              Chinas demand for steel isnt likely to match previous, remembering the infrastructure build has been running alongside its massive overbuild of housing….and if the rest of the world are battening down the hatches then the price will ease to Chinas benefit.

              • Poission

                Overall demand will come down,however the huge cost increases in Europe ,will price european manufacturing down .

                Similar in aluminium,and sheet steel,your new European EV will cost 20-30% more.

                US manufacturing is more sustainable with gas and coal prices at around 25% of Europe.

                • pat

                  You dont need to tell me about steel and ali price increases….however there is one sure fire result of that inflation….demand will crater, and the price will follow.

                  • Poission

                    high prices are the best fix for high prices,however managed retreat is a more stable solution here with over capacity constraints in building supply say reducing productivity.

                    Our inflation rate is around 60% higher then Australia,we need to ask why.

                    • Tricledrown

                      We import more and Australia imported migrant labour from the Pacific to keep food supplies up with demand.

                      Smart move as most Pacific Islands had no covid.

                      NZ could have done the same .

  2. weka 2

    Can someone please explain to me what's gone on here? Herald link is paywalled so I've only read NRT's post. Quote is from NZH.

    Workplace Relations Minister Michael Wood wanted the Government to increase the minimum wage from $20 to $21.40, before Cabinet eventually worked him down to $21.20.

    A Cabinet paper shows officials from MBIE recommended an increase to $21- a real-terms pay cut for roughly 160,600 minimum wage workers, as the increase would have been lower than the rate of inflation. Wood overruled this in his advice to Cabinet, and pushed for a larger increase.

    Officials also presented Cabinet with a compromise option, which was to increase the minimum wage in line with the four-year average of annual increases under the current Government.

    This would have seen the minimum wage increase to $21.25. Instead, Cabinet opted to undershoot that and landed on an increase of $21.20.

    https://norightturn.blogspot.com/2022/04/what-is-wrong-with-labour.html

    • McFlock 2.1

      I suspect the other arguments at the Cabinet table included inflation, alleged effects on the "labour shortage", and possibly a healthy dose of "won't anyone think of the homeowners".

      But it does stink of the old "offer the unacceptable so they'll 'compromise' on the merely detrimental" trick.

      • weka 2.1.1

        ok. Breaking that down, is inflation an issue generally if the rate rises too quickly? Or is it more to do with economic conditions at this time?

        What are the alleged effects on the labour shortage?

        How does it harm homeowners?

        But it does stink of the old "offer the unacceptable so they'll 'compromise' on the merely detrimental" trick.

        How do you mean?

        • McFlock 2.1.1.1

          Nic knows more about this stuff than me.

          AFAIK, Inflation is an issue if the rate itself gets to high – and there can be feedback effects, where it snowballs.

          Additionally, the lowest paid workers spend most of their pay immediately, so a big increase in minimum wage leads to more demand for those goods, which increases the price, and we have rising inflation.

          At the same time, we currently have a worker "shortage" because employers refuse to pay NZers a living wage. That makes things more scarce so drives up prices. I wouldn't mind, but the money ain't going to the hospo workers, it's going to the whinging hospo owners.

          Also, we have a supermarket duopoly and some supply-based shortages increasing inflation already (thanks, pandemic).

          Personally, I'd make the minimum wage a living wage and deal with the short term inflation effects. I think the country would be a happier place.

          Oh, and the unacceptable offer thing? If MBIE economists were playing shenanigans, low-balling the initial recommendation taking a cautious and responsible approach to establishing some of the underlying socioeconomic assumptions, in line with conventional thought at the time and relying on only the most robust and established of the available data widens the gap between the initial recommendation and the known preference of the minister and cabinet. This leaves them in the position of either completely rejecting the recommendation, delaying the decision, and giving "rejects expert advice" ammunition to the opposition, or they can fine some midpoint between the preferred option and the recommendation. "Yes Minister" rules.

          • Nic the NZer 2.1.1.1.1

            Most of the thinking around wages and inflation is pretty straight forward. Its just that businesses paying higher wages face higher costs and may compensate that by putting up prices. If workers can then retaliate by demanding higher wages then you could get a wage/price spiral (which happened in the 70s following on from OPEC oil price hikes). These days with limited union membership and casualisation it seems a lot more likely that workers demands for wage rises in a lot of sectors are ignored.

            The often held assumption that workers will successfully bargain for real wage levels they are worth, usually does the job of obscuring the historic shift in the wage/capital share and that in many businesses they could easily wear lower payments to capital and still have it be well worth investing.

    • Nic the NZer 2.3

      Not sure if this is the question but I can explain what the terms mean.

      First off, real, is referring to a change relative to the inflation rate. Someone's real wage falls when the quantity of actual goods and services it purchases declines. Most typically this happens because someone gets a below inflation pay rise. Of course the caveat here is that price changes doesn't necessarily effect all the actual purchases made evenly.

      Before looking at productivity the wage/capital share is relevant. At least as a whole all businesses either pay wages or capital all of the income they receive (or retain earnings). This happens in aggregate because the only other entity which gets paid is another business, which does the same. The wage/capital share looks at how much income goes to wage earners and how much goes to investors. There has been a general trend for capital to earn more since the 80s.

      Productivity measures generally how much income is earned for how many goods and services. A change in productivity could mean many changes. One possibility is that the wage earners are working harder across the same time (like more customers are in a retail store), another is they are delivering the same services in less time. Both these changes can increase a business overall income. So when we talk about productivity increases leaving space for wage increases this is because when a business distributes that extra income from productivity + inflation price changes to workers as a wage increase, then the wage/capital share doesn't change (at least for that business).

      Generally when thinking about productivity increases driving wages up we are thinking about the other side because the country is supposedly delivering more goods and services to people. This is to some extent true, though ultimately not every increase in spending is making a person better off.

      Who knows what the thinking is around the Cabinet table. Inflation will likely be part of it with the underlying assumption that wage increases are strongly likely to keep the inflation rate up. The background belief behind this is that workers don't allow their real wages to fall, instead they trade off their wage rate against their leisure time (also known as unemployment), which is patently untrue. But I doubt that that mainfest's as more than prejudice in a Cabinet level policy discussion.

  3. Anker 3

    https://www.dailymail.co.uk/femail/article-10685753/Becoming-man-huge-mistake-DID-doctors-allow-Glasgow-woman-asks.html

    young woman transitioned at 21 years. Now regrets it aged 28 years old. She has had a double mastectomy and testosterone has given her facial hair and a deep voice. She is angry with the Drs who enabled this….

    No stories like this in the NZ press, yet we know there are de-transitioners here

    • Puckish Rogue 3.1

      Fortunately there are more people coming forward to tell but not in NZ yet…

      • Anker 3.1.1

        That is a really great interview. This young woman describes really well how the process of transition took a hold on her. Her vulnerability factors (having few friends) and then joining an on-line group who encouraged her transition.

        How taking the testosterone lead to two hospital admissions. And still no medical people queried why she was on such a high dose. She is lucky that she was able to come to her own realisations that she wasn't male but female, before she had surgery.

        And she describes hostility and denial from the community who encouraged her transition when she wanted to reverse it.

Recent Comments

Recent Posts

  • Prime Minister to visit United States
    Prime Minister to lead trade mission to the United States this week to support export growth and the return of tourists post COVID-19. Business delegation to promote trade and tourism opportunities in New Zealand’s third largest export and visitor market Deliver Harvard University commencement address  Prime Minister Jacinda Ardern ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Prime Minister congratulates Anthony Albanese
    Prime Minister Jacinda Ardern has congratulated Anthony Albanese and the Australian Labor Party on winning the Australian Federal election, and has acknowledged outgoing Prime Minister Scott Morrison. "I spoke to Anthony Albanese early this morning as he was preparing to address his supporters. It was a warm conversation and I’m ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Poroporoaki: Dame Aroha Reriti-Crofts DNZM CBE JP
    Tiwhatiwha te pō, tiwhatiwha te ao. Tiwhatiwha te pō, tiwhatiwha te ao. Matariki Tapuapua, He roimata ua, he roimata tangata. He roimata e wairurutu nei, e wairurutu nei. Te Māreikura mārohirohi o Ihoa o ngā Mano, takoto Te ringa mākohakoha o Rongo, takoto. Te mātauranga o Tūāhuriri o Ngai Tahu ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Boost for tourism networks as borders open
    Three core networks within the tourism sector are receiving new investment to gear up for the return of international tourists and business travellers, as the country fully reconnects to the world. “Our wider tourism sector is on the way to recovery. As visitor numbers scale up, our established tourism networks ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Law changes passed stopping tax evasion on water-pipe tobacco
    The Minister of Customs has welcomed legislation being passed which will prevent millions of dollars in potential tax evasion on water-pipe tobacco products. The Customs and Excise (Tobacco Products) Amendment Act 2022 changes the way excise and excise-equivalent duty is calculated on these tobacco products. Water-pipe tobacco is also known ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government support for Levin community hit by tornado
    The Government is contributing $100,000 to a Mayoral Relief Fund to help the Levin community following this morning’s tornado, Minister for Emergency Management Kiri Allan says. “My thoughts are with everyone who has been impacted by severe weather events in Levin and across the country. “I know the tornado has ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Statement from the Quintet of Attorneys General in support of Prosecutor General Iryna Venediktova a...
    The Quintet of Attorneys General have issued the following statement of support for the Prosecutor General of Ukraine and investigations and prosecutions for crimes committed during the Russian invasion of Ukraine: “The Attorneys General of the United Kingdom, the United States of America, Australia, Canada, and New Zealand join in ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Andrew Little Budget 2022 post-Budget health speech, Auckland, 20 May 2022
    Morena tatou katoa. Kua tae mai i runga i te kaupapa o te rā. Thank you all for being here today. Yesterday my colleague, the Minister of Finance Grant Robertson, delivered the Wellbeing Budget 2022 – for a secure future for New Zealand. I’m the Minister of Health, and this was ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt helps supermarket shoppers get a fair deal
    Urgent Budget night legislation to stop major supermarkets blocking competitors from accessing land for new stores has been introduced today, Minister of Commerce and Consumer Affairs Dr David Clark said. The Commerce (Grocery Sector Covenants) Amendment Bill amends the Commerce Act 1986, banning restrictive covenants on land, and exclusive covenants ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prime Minister: Wellbeing Budget 2022 speech
    It is a pleasure to speak to this Budget. The 5th we have had the privilege of delivering, and in no less extraordinary circumstances.  Mr Speaker, the business and cycle of Government is, in some ways, no different to life itself. Navigating difficult times, while also making necessary progress. Dealing ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Future resource management system implementation funding
    Budget 2022 provides funding to implement the new resource management system, building on progress made since the reform was announced just over a year ago. The inadequate funding for the implementation of the Resource Management Act in 1992 almost guaranteed its failure. There was a lack of national direction about ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Funding certainty for quality public media
    The Government is substantially increasing the amount of funding for public media to ensure New Zealanders can continue to access quality local content and trusted news. “Our decision to create a new independent and future-focused public media entity is about achieving this objective, and we will support it with a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Funding boost secures Defence capabilities
    $662.5 million to maintain existing defence capabilities NZDF lower-paid staff will receive a salary increase to help meet cost-of living pressures. Budget 2022 sees significant resources made available for the Defence Force to maintain existing defence capabilities as it looks to the future delivery of these new investments. “Since ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Budget 2022 supports resilient and sustainable cultural sector
    More than $185 million to help build a resilient cultural sector as it continues to adapt to the challenges coming out of COVID-19. Support cultural sector agencies to continue to offer their important services to New Zealanders. Strengthen support for Māori arts, culture and heritage. The Government is investing in a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister of Finance: Wellbeing Budget 2022 Speech
    It is my great pleasure to present New Zealand’s fourth Wellbeing Budget. In each of this Government’s three previous Wellbeing Budgets we have not only considered the performance of our economy and finances, but also the wellbeing of our people, the health of our environment and the strength of our communities. In Budget ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Wellbeing Budget 2022 Speech
    It is my great pleasure to present New Zealand’s fourth Wellbeing Budget. In each of this Government’s three previous Wellbeing Budgets we have not only considered the performance of our economy and finances, but also the wellbeing of our people, the health of our environment and the strength of our communities. In Budget ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Coronial delays addressed by Budget 2022
    Four new permanent Coroners to be appointed Seven Coronial Registrar roles and four Clinical Advisor roles are planned to ease workload pressures Budget 2022 delivers a package of investment to improve the coronial system and reduce delays for grieving families and whānau. “Operating funding of $28.5 million over four ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Paving the way for better outcomes for disabled people
    Establishment of Ministry for Disabled People Progressing the rollout of the Enabling Good Lives approach to Disability Support Services to provide self-determination for disabled people Extra funding for disability support services “Budget 2022 demonstrates the Government’s commitment to deliver change for the disability community with the establishment of a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Investing in education so all Kiwis can succeed
    Fairer Equity Funding system to replace school deciles The largest step yet towards Pay Parity in early learning Local support for schools to improve teaching and learning A unified funding system to underpin the Reform of Vocational Education Boost for schools and early learning centres to help with cost ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Primary sector backed to grow and innovate
    $118.4 million for advisory services to support farmers, foresters, growers and whenua Māori owners to accelerate sustainable land use changes and lift productivity  $40 million to help transformation in the forestry, wood processing, food and beverage and fisheries sectors  $31.6 million to help maintain and lift animal welfare practices across Aotearoa New Zealand A total food and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • More support for first home buyers and renters
    House price caps for First Home Grants increased in many parts of the country House price caps for First Home Loans removed entirely Kāinga Whenua Loan cap will also be increased from $200,000 to $500,000 The Affordable Housing Fund to initially provide support for not-for-profit rental providers Significant additional ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Budget lifts up to 14,000 children out of poverty
    Child Support rules to be reformed lifting an estimated 6,000 to 14,000 children out of poverty Support for immediate and essential dental care lifted from $300 to $1,000 per year Increased income levels for hardship assistance to extend eligibility Budget 2022 takes further action to reduce child poverty and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • A booster for RNA research and development
    More support for RNA research through to pilot manufacturing RNA technology platform to be created to facilitate engagement between research and industry partners Researchers and businesses working in the rapidly developing field of RNA technology will benefit from a new research and development platform, funded in Budget 2022. “RNA ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unleashing business potential across NZ
    A new Business Growth Fund to support small and medium sized enterprises (SMEs) to grow Fully funding the Regional Strategic Partnership Fund to unleash regional economic development opportunities Tourism Innovation Programme to promote sustainable recovery Eight Industry Transformation Plans progressed to work with industries, workers and iwi to transition ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Securing the wellbeing of Pacific communities
    Budget 2022 further strengthens the economic foundations and wellbeing outcomes for Pacific peoples in Aotearoa, as the recovery from COVID-19 continues. “The priorities we set for Budget 2022 will support the continued delivery of our commitments for Pacific peoples through the Pacific Wellbeing Strategy, a 2020 manifesto commitment for Pacific ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government delivers timely support for whānau
    Boost for Māori economic and employment initiatives. More funding for Māori health and wellbeing initiatives Further support towards growing language, culture and identity initiatives to deliver on our commitment to Te Reo Māori in Education  Funding for natural environment and climate change initiatives to help farmers, growers and whenua ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government delivers critical infrastructure
    New hospital funding for Whangārei, Nelson and Hillmorton 280 more classrooms over 40 schools, and money for new kura $349 million for more rolling stock and rail network investment The completion of feasibility studies for a Northland dry dock and a new port in the Manukau Harbour Increased infrastructure ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • A health system that takes care of Māori
    $168 million to the Māori Health Authority for direct commissioning of services $20.1 million to support Iwi-Māori Partnership Boards $30 million to support Māori primary and community care providers $39 million for Māori health workforce development Budget 2022 invests in resetting our health system and gives economic security in ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Investing in better health services
    Biggest-ever increase to Pharmac’s medicines budget Provision for 61 new emergency vehicles including 48 ambulances, along with 248 more paramedics and other frontline staff New emergency helicopter and crew, and replacement of some older choppers $100 million investment in specialist mental health and addiction services 195,000 primary and intermediate aged ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • A Secure Future for New Zealanders’ health
    Landmark reform: new multi-year budgets for better planning and more consistent health services Record ongoing annual funding boost for Health NZ to meet cost pressures and start with a clean slate as it replaces fragmented DHB system ($1.8 billion year one, as well as additional $1.3 billion in year ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Cost of living package eases impact on households – 2.1 million Kiwis to get new targeted payment
    Fuel Excise Duty and Road User Charges cut to be extended for two months Half price public transport extended for a further two months New temporary cost of living payment for people earning up to $70,000 who are not eligible to receive the Winter Energy Payment Estimated 2.1 million New ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Budget highlights underlying strength of economy in face of global headwinds
    A return to surplus in 2024/2025 Unemployment rate projected to remain at record lows Net debt forecast to peak at 19.9 percent of GDP in 2024, lower than Australia, US, UK and Canada Economic growth to hit 4.2 percent in 2023 and average 2.1 percent over the forecast period A ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Budget 2022: A secure future in difficult times
    Cost of living payment to cushion impact of inflation for 2.1 million Kiwis Record health investment including biggest ever increase to Pharmac’s medicines budget First allocations from Climate Emergency Response Fund contribute to achieving the goals in the first Emissions Reduction Plan Government actions deliver one of the strongest ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Budget 2022: A secure future
    Budget 2022 will help build a high wage, low emissions economy that provides greater economic security, while providing support to households affected by cost of living pressures. Our economy has come through the COVID-19 shock better than almost anywhere else in the world, but other challenges, both long-term and more ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Health Minister to attend World Health Assembly in Geneva
    Health Minister Andrew Little will represent New Zealand at the first in-person World Health Assembly since the start of the COVID-19 pandemic, to be held in Geneva, Switzerland, from Sunday 22 – Wednesday 25 May (New Zealand time). “COVID-19 has affected people all around the world, and health continues to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New efforts to counter illegal timber trade
    New Zealand is committing to trade only in legally harvested timber with the Forests (Legal Harvest Assurance) Amendment Bill introduced to Parliament today. Under the Bill, timber harvested in New Zealand and overseas, and used in products made here or imported, will have to be verified as being legally harvested. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Deaths in New Zealand lower than expected so far during the pandemic
    The Government has welcomed the release today of StatsNZ data showing the rate at which New Zealanders died from all causes during the COVID-19 pandemic has been lower than expected. The new StatsNZ figures provide a measure of the overall rate of deaths in New Zealand during the pandemic compared ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New law helps secure New Zealand’s maritime domain
    Legislation that will help prevent serious criminal offending at sea, including trafficking of humans, drugs, wildlife and arms, has passed its third reading in Parliament today, Foreign Affairs Nanaia Mahuta announced. “Today is a milestone in allowing us to respond to the increasingly dynamic and complex maritime security environment facing ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Trade and Export Growth Minister to travel to Bangkok for APEC
    Trade and Export Growth Minister Damien O’Connor is set to travel to Thailand this week to represent New Zealand at the annual APEC Ministers Responsible for Trade (MRT) meeting in Bangkok. “I’m very much looking forward to meeting my trade counterparts at APEC 2022 and building on the achievements we ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government welcomes historic pay-equity deal
    Settlement of the first pay-equity agreement in the health sector is hugely significant, delivering pay rises of thousands of dollars for many hospital administration and clerical workers, Health Minister Andrew Little says. “There is no place in 21st century Aotearoa New Zealand for 1950s attitudes to work predominantly carried out ...
    BeehiveBy beehive.govt.nz
    6 days ago