Dutch disease

Written By: - Date published: 5:10 pm, June 21st, 2011 - 69 comments
Categories: Economy, exports, monetary policy - Tags:

No it’s not a virus. It’s our dollar surfing on a dumper. Here’s how Neville Bennett describes it:

There is increasing evidence that New Zealand is ailing. The symptoms are a high exchange rate, excessive foreign debt and a decline of the manufacturing sector. This is often called the Dutch disease which is defined as a development that results in a large inflow of foreign currency, which in turn causes an appreciation of its currency, making its manufactures too expensive for others to buy.

Gareth Morgan also writes about it in today’s Herald.

The most concerning outcome is that New Zealand will swing on the end of an unsustainably high currency until the economic damage wrought warrants a major change. That damage would come via a hollowing out of our non-commodity producing businesses, no correction in our household savings rate and in time, a balance of payments/external debt crisis as those factors conspire.

Any amount of commentators from the Prime Minister on down tell us that all is well, we are on a path to growth (eventually), and nothing can be done about our dollar that has risen from a little above 50cents US in early 2009 to over 80cents now. This volatility also makes it impossible for borrowers to plan for future growth and expansion. The dollar’s current level also provides a headwind for our economy according to Bill English.

Treasury are holding a conference later this week on macroeconomics. I don’t know whether Neville Bennett and Gareth Morgan will be there – I hope so. It is high time that we got some fresh thinking into our economic planning. The neoliberal recipe the 1980s Treasury adopted from the monetarist Chicago school has not stood us in good stead.

Neville Bennett does not believe nothing can be done. He offers some ideas, supported by the IMF. We need more thinking like this.

69 comments on “Dutch disease ”

  1. Jim Nald 1

    At this point, am I allowed to chant the Government’s mantra …

    We can’t do this,
    We can’t do that,
    We can’t do anything,
    This is out of our control,
    That is out of our control,
    Everything is out of our control.

    (recite 170,000 neoliberal times)

    • Rusty Shackleford 1.1

      Aren’t they borrowing a ton of cash? I wouldn’t call that doing nothing.

      • Jim Nald 1.1.1

        Wow. Let’s all go to sleep. No need for that Treasury conference.

      • lprent 1.1.2

        Paying for their silly tax cuts?

        The Nats do one little political screwup, and I am expected to pay for it for the next 9 years. I thought we’d gotten through tha type of fiscal irresponsibility in the 70’s, 80’s and 90’s. But nope somehow we are meant to have 170,000 jobs appear based on a average from a period when we did no have a do nothing government….

        They should average from the jobs growth in the 1990’s when we last had these clowns around. Deeply negative to flat. That would be a more appropriate measure.

        • Deadly_NZ 1.1.2.1

          And the biggest problem is how bad will it become if these incompetents are re elected ?

          • Colonial Viper 1.1.2.1.1

            1 in 6 NZ’ers have decided not to find out and have already left.

            • Lyall 1.1.2.1.1.1

              “one in six have ….already left” Really? over 600,000 people have left? Evidence please that 600,000 people have left New Zealande permanently?

              • McFlock

                Not permanently. Just until National are out.

              • Colonial Viper

                600,000 Kiwis living in just Australia buddy. When you add up the rest of the world it comes to a million people now.

                http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10705666

                1 in 6 NZ born Kiwis have already fucked off out of this country. Wake up mate this is a national disaster which has been in the making for decades.

                Now stop wasting my time asking for “evidence” “Lyall”.

                • Lyall

                  “1 in 6 NZ’ers have decided not to find out and have already left.” Did they all leave in the last two years ? Thats seems to be the point you’re trying to make. Its a fact that they have been leaving since the 1980’s and even when Labour were in power, don’t you think? Or are you saying that ALL 600,000 left since 2008? I think fact based evidence is a much more forceful way to make a point, rather than hot air, indignance and noise.

                  • Colonial Viper

                    I’m not saying that this has happened since 2008. (Even though the records are being set under National’s inept plan-less leadership).

                    New Zealand has been going down the wrong neoliberal track for roughly 30 years. Net migration to Australia was even a big enough issue for Muldoon to comment on.

                    I think fact based evidence is a much more forceful way to make a point, rather than hot air, indignance and noise.

                    In case you haven’t noticed, allow me to state definitively that I don’t give a flying fuck about conforming to your standards of decorum. National is going down hard in November.

                    And the Bankster Occupation of NZ must be ended.

                    • Blue Rain

                      What if they don’t Viper, what if the inept and lying Labour Party don’t win? Will you be doing us all a favour and leaving as well as the 600,000 you seem to think vanished in the last two years? Go on do us a favour go to Aussie and “increase the IQ’s of both countries”.

      • prism 1.1.3

        Rs It would be more correct now to say a tonne of cash. Can’t you get anything right?

    • KJT 1.2

      A company manager and board of directors would be sacked if they said. “We will not do any long term strategic planning. The market will sort it out”.

      How is it when the same people get into Government “the market will sort it out”????

      Well the market cannot and will not!

      The difference between us and Singapore or China is their Governments plan for the long term.

      “An aspiration is not a strategy”. (Not sure who to attribute this).

  2. Dan 2

    So even if we could lower the dollar, what would you then do about the surging price of petrol that would also seriously harm the prices of business inputs? We can’t win either way.

    • KJT 2.1

      Start doing what we should be doing anyway. Replace hydrocarbon fuels with renewables.

      Currently the spend on importing energy is over a billion a year.
      There are good environmental and economic reasons for reducing our dependence on imported energy.

      Not to mention the boost to local industry by becoming leaders instead of slow followers in alternative technologies.

      • Rusty Shackleford 2.1.1

        KJT, if the investment is a lock and you are on to something, you owe it to yourself to borrow the cash to set it up yourself. Not only will you be doing a service to the whole of NZ, but you become a rich man (or lady) to boot! Seems like a no-brainer to me. Good luck!

      • queenstfarmer 2.1.2

        And that would be cheaper than surging petrol prices how? Nice idea, but who’s going to pay for it. As with so many “green” initiatives, the super-rich can afford them no problemo, but the rest of us can’t.

        • Rusty Shackleford 2.1.2.1

          What are you talking about farmer? Millions in subsidies to govt cronies in Spain yielded dozens of “green” jobs, and hardly destroyed any real ones at all. They don’t actually have cheaper electricity, but they “created” jobs. You aren’t against jobs are you queen?

          • Colonial Viper 2.1.2.1.1

            Don’t be moronic.

            The main benefactors of Europe’s debt woes are the creditors.

            Next step in the plan: pick up the public assets in Ireland, Portugal, Spain and Greece for pennies on the pound.

            Who needs to invest in building shit up when you can corporate raid others’.

            • queenstfarmer 2.1.2.1.1.1

              Not against jobs, or green tech. It is the future. But it will cost a lot more than most countries can afford, including ours. Even the US Govt, which has pumped billions of stimulus into green tech, has little to show for it.

              As for Spain borrowing money to create artificial jobs, I don’t think that is working out too well for them, or anyone else who tries it.

              • Colonial Viper

                Well of course you are wrong on all counts.

                As for Spain borrowing money to create artificial jobs

                For instance, almost every investment banking job in the US is “artificial” by your stupid inference.

                – All those firms would be bust without ongoing US govt cash and everyone from their traders to the CEOs should be on the street or in jail.

                – The vast majority of their activities and assets are fraudulent or add no value to the sustainability of society or economy.

                – Their expert “help” is a direct contributor to all the shit that the PIGS are in.

                But it will cost a lot more than most countries can afford, including ours.

                Oh fuck off, 2%-3% of GDP invested over the next 5 years will sort it.

                Even the US Govt, which has pumped billions of stimulus into green tech, has little to show for it.

                That’s what you get for pouring money down the drain of fusion reactors and hydrogen cars.

                • Rusty Shackleford

                  CV, who even disagrees with you on investment bankers? They are the scum of the earth. But leeches love blood. You can’t blame them for dashing in and sucking up all the milkshake. Someone was going to. It’s the heads of the guys that opened the wound that need to roll. ie, the central bank cartels and the pols who enable them.

                • The Baron

                  CV,
                  2-3% of NZ’s GDP of approx $170 billion is a $3.4-5.1 billion dollar investment.
                  Hardly an “only”.
                  What would you cut to pay for it? Or you must gonna borrow more for that too?
                  If we add that to the $5b plus Labour havealready promised to increase, offset by lala land extra enforcement ( net benefit will NOT be anywhere near what Cunliffe claims), then that sounds like fucking lunacy to me.

                  • Colonial Viper

                    Fair question, Baron.

                    Let’s take the figure $5B p.a. as a nice round figure for investment for say a period of 5 years. That’s $25B of highly productive investment creating several tens of thousands of NZ jobs for NZ workers, rebuilding our engineering capabilities, in order to get NZ’s energy infrastructure right for the next 100 years.

                    Where to get the money from? The richest 1000-2000 people in New Zealand control assets of approximately $100B. Raising $5B p.a. in taxes from just them would not be hard to do. None of them would have to sell their stable of 7 series limos or give up their vintage champagne.

                    Or, print half the money and you only need to tax those 1000-2000 people $2.5B p.a. out of their total $100B asset base. Given yearly capital growth, they may not even see a net reduction in their asset base after taxes. Their day to day and week to week lifestyle would be completely unaffected. No need to downgrade from first class to business class at any stage.

                    Sorta easy really.

                    • Jim Nald

                      To quote that famous and articulate currency trader, it would be “chump change”

                    • The Baron

                      CV, I’m sorry but that 1-2000 NZers owning that much in assets sounds like horseshit to me; and given that the entire merit of your proposal rests on this, I would have thought we were running off more than blind prejudice and made up stats. But lets run with it to see how your maths stacks up.

                      Lets be generous and say that there is indeed 2000 people in that bracket. You need $5b a year from them all to pay for this, according to your plan – in other words, $2.5m pa from each of them, right?

                      Please, pray tell, which magical taxation instrument you’ll introduce to suck that much out of these pockets? And once you are done with that, can you think of any consequences to introducing that tax – or do you genuinely believe that you could do it without consequences?

                    • The Baron

                      … actually, we probably need to double it again – right? You’ll need another $5b to pay for the other things that labour have promised, which I assume you remain supportive of.
                      Now, with all due respect, you know I don’t buy into your “print money” answer – sorta a deus ex machina. So can I be daring enough to ask you to formulate your taxation masterwork within the bounds that Labour and the Nats could actually implement?

          • KJT 2.1.2.1.2

            We are going to have to do it anyway.

            Before our overseas customers stop believing in Clean Green 100% pure and resist our products.

            Before oil prices eventually hit the stratosphere. (Which they will as China’s demand increases and the Saudi ever increasing reserves prove a myth). Great South basin oil will cost more than $200 a barrel to extract.

            Before other countries demand we do our bit to lessen AGW.

            We can do it cheaply now while we still have cheap hydrocarbons to make the windmills.

            Or we can leave it to our kids to do it the hard way!

  3. ChrisH 3

    This shows how important a plan for better public transport must be, along with a plan to lower the currency. Or alternatively we do nothing and then the roof caves in, at which point we face $3 to $4 a litre petrol with no PT and lots of people out of work, a spiral of collapse that is likely to feed on itself.

  4. JaJ 4

    Don’t forget that the US dollar has been depreciating against many currencies over this peroid as well, indeed the NZ dollar is not up nearly so dramatically with regard to the AUD, GBP or even the embattled Euro.

  5. davidc 5

    Gareth Morgan is the chap who a couple of years back predited that house prices would drop by 50% on the front page of the Listener (all in aid of getting people to invest in his savings scheme) so he has f*uk all credibiliy to me.

    [according to REINZ’s index, house prices are down 18% in real terms since peaking in 2007. So far. I’d rather put my money with Morgan than you. Eddie]

    • ianupnorth 5.1

      There is a strong view amongst many in the financial sector that NZ property is grossly overvalued, with only the demand for properties by inbound immigrants keeping the market afloat. How many houses are being sold in your town, are they getting GV, cos they ain’t where I live.
       
      A house is the price someone is willing to pay and people are holding out for bargains, whilst those with the tax cuts and overseas investors are speculating.

      • Jim Nald 5.1.1

        Folks leaving for Australia and further shores
        Folks having job uncertainties
        Folks losing jobs
        Folks not having jobs
        All these not helped by this government decimating the public sector (ie more jobs being lost) …

        Who are the ones madly buying up the houses?

      • Colonial Viper 5.1.2

        NZ property is grossly overvalued, with only the demand for properties by inbound immigrants keeping the market afloat.

        So what happens when net migration falls for three months in a row? Whoops.

        AKL house prices are still going up as net migration there from the rest of the country continues. And it is causing house prices everywhere else to continue sliding at a fast rate.

        • Rusty Shackleford 5.1.2.1

          House prices need to come in line with income. Which is what they are doing. The market works!

          • Colonial Viper 5.1.2.1.1

            What do you mean by “works”? Housing prices are finally coming back into line – after a very long and dangerous delay – but the debt and investment inbalances created by the housing bubble are still here.

          • Zaphod Beeblebrox 5.1.2.1.2

            It would work even better with a CGT and stamp duty on purchased properties.

    • davidc 5.2

      Thanks for the partisan edit Eddie.
      I am pretty sure rent a quote Morgans article was late ’08/early ’09 (after Lehman and co went tits up) and prices are up a couple of percent (maybe even 5) since then according to this…
      https://www.reinz.co.nz/shadomx/apps/fms/fmsdownload.cfm?file_uuid=A2D89DF1-B00A-462C-5EBB-E90911AA6B4D&siteName=reinz

      • Colonial Viper 5.2.1

        According to that graph house prices are still down from late 2008! And I suspect that the index you quote doesn’t even take into account inflation, nor the fact that specific in demand suburbs in Auckland have continued to support the national average from falling further.

        I reckon you’re a deliberately misleading (or blind) chart reader. Or have no idea of the housing market. Or all three.

        Further, who cares when you think Morgan made his quip? Give us a reference if you can. One that you’ve read properly this time.

        • davidc 5.2.1.1

          Are we looking at the same chart?
          Bottom of the housing trough was late 08 early 09 mainly caused by holiday homes and appartments being sold off to cover debt tho thewre was some selldown in over built areas like Auck, real houses that people actually live in (and not just speculate with) have dropped fuck all and wont drop in the future as replacement cost in a lot of places now is way higher than existing stock prices. For existing stock prices to fall further something would need to change. Land and materials are not getting cheaper, infact soon the way timber prices are going NZers wont be building at all.

          • Colonial Viper 5.2.1.1.1

            It seems like I didn’t look at the years on that chart prob, sorry.

            Across New Zealand … The national median house price at $350,000 was equal to the same month of last year, but down by $10,000 from April 2011.

            Against mortgage interest rates and inflation over that period, house prices staying flat is comparable to a 4-6% decline in real spending power dollar terms.

            i.e. property prices are still falling, and falling significantly, in real terms.

            http://wellington.scoop.co.nz/?p=35549

            • davidc 5.2.1.1.1.1

              and as i said in the first post its up 5% from the trough NOT down 50% as muppet Morgan said.

              using the assumption of debt to weight your argument is just bollocks…. add rental income or value to a family of not having to rent … people do need to live somewhere… and THAT is never going to change ….and only add to upward price pressure.

              Have a nice day.

              • Colonial Viper

                and as i said in the first post its up 5% from the trough NOT down 50% as muppet Morgan said.

                Morgan never said that we are 50% down from the trough. Pretty sure you just made that up there.

                Also your lack of understanding of the value of money is showing. If inflation over the year is 5% but your house value stays absolutely flat – you’ve just lost 5% of your asset value in purchasing power dollars.

                That’s a significant drop in house prices in inflation adjusted dollars.

                Thank you. You have a nice day yourself.

          • davidc 5.2.1.1.2

            and as an afterthought…what effect do you see to the market when 50 000 households relocate out of Chch and 20 billion gets spent on rebuilding… what effect will that have on supply/demand and building costs?

            • Colonial Viper 5.2.1.1.2.1

              Not much davidc if the people who are relocating aren’t fully paid out, have no work to go to and cannot afford to buy houses or rent anywhere else.

              And you can see from the latest immigration figures that thousands who are leaving Christchurch are choosing not to stay in NZ.

  6. prism 6

    What a crock Mike Smith. A great post and all you get is hot air from the RW farts who don’t know what to do about anything, haven’t an idea likely to lead to positive outcomes in the future, but do know how to sneer at anybody who tries.

  7. Craig Glen Eden 7

    My best friend told me tonight he is off to Australia better paid job plus 9% employer contribution from employer, leaves in September family to follow in December. He does not want to leave but the opportunity is just to good to pass up given he cant get ahead in NZ.

    This guy is a CEO here but like he says National have no plan and Key is a total clown, its all turning to shit real fast in NZ so he feels he has to go, cant say I blame him.

    • ianupnorth 7.1

      I know six people in the 20 – 30 age range who went to Aussie last month; we have a family from Sri Lanka living in our sleep out (they were made homeless in the ChCh earthquake), they go to Aussie in three weeks. If my daughter was not in year 13 at high school I would be going too.

      • Colonial Viper 7.1.1

        If she is a NZ citizen she can go to university in Australia at their local rates.

        Not stupid these Aussies, they know which side their bread is buttered on.

        • SBS 7.1.1.1

          NZ citizens are not eligible for HEC’s loan to pay for their fees. A paper from UNSW costs about $2,500 (at local rates) so you’ll be paying for that upfront.

      • sean 7.1.2

        People leaving for Aussie are those whose careers aren’t going anywhere – if you’re good enough you can earn craploads in NZ. If you’re not good enough, then its probably worth going to Aussie. There will still be a glass ceiling over there which most of these people fleeing won’t be able to go above however

  8. Richard Olykan 8

    Why would you want to call it a “Dutch Disease?
    When it come to financial management the Netherlands are showing the lead in Europe and the world for that matter.
    It’s more of an Iceland, Ireland, Greece, Spain or Portugal disease, bit definitely not Dutch !

    • Rusty Shackleford 8.1

      Iceland are on the road back. They told the banks to get fucked. It’s what every country should have done.

      • Colonial Viper 8.1.1

        +1

      • KJT 8.1.2

        That I totally agree with.

        http://kjt-kt.blogspot.com/

        “Don’t forget that New Zealand’s credit rating reflects the expectation that the Government would bail out private banking”.

        Private debt would not figure in the credit rating if the NZ Government had made it clear, that if private financial institutions failed, they would have to take the bath themselves.

        So did Argentina. They were punished for a bit. The banks were too greedy to stay away though, Argentinians are now better off than they were..

      • Zaphod Beeblebrox 8.1.3

        Argentina too.

    • Uroskin 8.2

      “Dutch disease” doesn’t refer to current financial prudence in the Netherlands, but a 1960/70s energy resource boom (the “gasbel” – http://nl.wikipedia.org/wiki/Aardgasveld_van_Slochteren) crowding out other exports due to upwards pressure on the guilder. The gas exploitation was/is a PPP (50% state, 25% Shell and 25% Esso-Exxon). Interesting to see the difference in approach to Norway which exploits its oil via Statoil (67% state-owned) and is the main crontributor to its sovereign wealth fund. Why can’t we in NZ set up a similar scheme/wealth fund for resource exploitation like the Norwegians instead of giving away our resources at a paltry royalty rate to overseas companies? (1%! – http://en.wikipedia.org/wiki/Newmont_Mining_Corporation#New_Zealand)

  9. randal 9

    wrong again. dutch disease is when all the leaves fell off the trees and they all died.
    dig?

  10. ZeeBop 10

    Tulips anyone, get them while their cheap.

    When the bubble crashed in Tulip bulbs, people tried to resurrect the market, and would have pointed to Hayek if he’d been around, that it was the banks (thanks to government intervention letting the banks lend that set off the problem), then they will conclude that everything but the banks needs to suffer austerity and government intervention of the opposite extreme.

    You see its either too easy on the banks, or clamp down austerity, both interventions by free marketeers who hate well interventionist government (except when they are in power).

    Buy my tulips, did up your soils and plant these bulbs you’ll be rich by summer.

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    The Latin American multidisciplinary journal MINGA just published my article on “South America’s Strategic Paradox.” I was surprised that they wanted to do so because they have a very clear left-leaning orientation and my article was pretty much a straight-forward … Continue reading ...
    KiwipoliticoBy Pablo
    3 days ago
  • Gordon Campbell on the perils of joining AUKUS Pillar Two
    The lure for New Zealand to join the AUKUS military alliance is that membership of only its “second pillar” will still (supposedly) give us access to state of the art military technologies. As top US official Kurt Campbell said during his visit to Wellington a year ago:We’ve been gratified ...
    3 days ago
  • Geoffrey Miller: New Zealand’s dilemma at the WTO’s big meeting in Abu Dhabi
    New Zealand’s new trade minister is a busy man. Just weeks after taking office in late November, Todd McClay was also elected as vice-chair for the upcoming 13th Ministerial Conference of the World Trade Organization (WTO). A major gathering of trade ministers from the WTO’s 166 members, ‘MC13’ will take ...
    Democracy ProjectBy Geoffrey Miller
    3 days ago
  • Weekly Roundup 23-February-2024
    It’s Friday and here are some of the things that caught our attention this week. This Week in Greater Auckland On Monday Matt asked if the upcoming Regional Land Transport Programme will be another debacle. On Wednesday we ran a guest post from Nick Reid on why the CRL ...
    Greater AucklandBy Greater Auckland
    3 days ago
  • Democracy Denied.
    Political Intervention From Above: From the early-1970s on, lobbying firms and think-tanks have grown like Topsy all across the capitalist world. Had the progressive middle-class not drawn its teeth and clipped its claws, an angry working-class might have risen to meet the Robber Baron’s challenge as it did in the ...
    3 days ago
  • “I Was Hacked!”
    Hi,“I was hacked” is a wonderful excuse for a variety of sins, and it was used to perfection this week by Brian Houston, the New Zealand founder (and disgraced former leader) of toxic megachurch Hillsong.Ladies and girls kissing” Brian tweeted at 11.41pm on Tuesday.It was four words he’d clearly meant ...
    David FarrierBy David Farrier
    3 days ago
  • Child poverty progress reverses to 2019 levels
    It was touted as a focus by the previous government, but what progress was made on reducing child poverty has now been eroded away back to 2019-levels. Photo: Lynn GrievesonTL;DR: Six ‘newsy’ things that stood out for me in Aotearoa-NZ’s political economy and beyond from my reading over the past ...
    The KakaBy Bernard Hickey
    3 days ago
  • The Song of Saqua: Volume V
    Time for another D&D update. Session XI Gunderlun. So the party is back on dry land. First dealings were with the harbour master, who not only requested his fee, but also noted that if Sir Goatslayer (Goliath Monk) is going to have people lugging around his giant tome ...
    3 days ago
  • Skeptical Science New Research for Week #8 2024
    Open access notables Transition from positive to negative indirect CO2 effects on the vegetation carbon uptake, Chen et al., Nature Communications: Here we investigate how the impacts of eCO2-driven climate change on growing-season gross primary production have changed globally during 1982–2014, using satellite observations and Earth system models, and evaluate their evolution ...
    3 days ago
  • Gravity wins, everybody loses
    This government should come with a whiplash warning. Did you hear the Prime Minister just go off about the Black Hole They Left Us? - how much was it, 20 billion? 200 billion? Or was it 2 gazillion billion? God he just gets so excited doing his we were going ...
    More than a fieldingBy David Slack
    4 days ago
  • Gravity wins, everybody loses
    This government should come with a whiplash warning. Did you hear the Prime Minister just go off about the Black Hole They Left Us? - how much was it, 20 billion? 200 billion? Or was it 2 gazillion billion? God he just gets so excited doing his we were going ...
    More Than A FeildingBy David Slack
    4 days ago
  • Willis tells us before dawn about her travel plans and – early this afternoon – she reports on h...
    Buzz from the Beehive Finance Minister Nicola Willis – and press secretary Nick Venter, too, we may suppose – were up and about before sparrow’s fart. Her bags would have been packed and her passport checked. We report this on the strength of an email from Venter which landed in ...
    Point of OrderBy Bob Edlin
    4 days ago
  • ROB MacCULLOCH: Grant Robertson’s new job sends an awful message to students about meritocracy in ...
      The appointment of Grant Robertson as Vice-Chancellor of Otago University has raised hackles – and questions – among academics.  Robertson’s credentials for the job is one issue.  The appointment process is another.  University of Auckland economics professor Rob MacCulloch has posted these three articles in the past few days ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Govt's Budget 'just like a household,' says Willis
    TL;DR: Flying in the face of comments from a ratings agency and a mountain of demand for a new long-term sovereign bond issued yesterday, Finance Minister Nicola Willis has again characterised the Government’s finances as too fragile to borrow in its own right to solve Aotearoa-NZ’s infrastructure deficits. She also ...
    The KakaBy Bernard Hickey
    4 days ago
  • How oil sands undermine Canada’s climate goals
    This is a re-post from Yale Climate Connections Now in his ninth year as prime minister, Justin Trudeau has sought to position Canada as a global climate leader, touting one of the world’s highest taxes on carbon pollution, clean fuel regulations, and clean technology tax credits. Yet Canada’s per-person climate pollution remains stubbornly ...
    4 days ago
  • Untold back-stories: the little things media don't tell us but which are nevertheless pertinent
    ..Thanks for reading Frankly Speaking ! Subscribe for free to receive new posts and support my work.In an article entitled "School donations continue to yield millions of dollars for wealthier schools" on RNZ's website on 19 February, Data journalist Farah Hancock reported on the fees ("donations") that (some) schools were ...
    Frankly SpeakingBy Frank Macskasy
    4 days ago
  • Untold back-stories: the little things media don't tell us but which are nevertheless pertinent
    ..Thanks for reading Frankly Speaking ! Subscribe for free to receive new posts and support my work.In an article entitled "School donations continue to yield millions of dollars for wealthier schools" on RNZ's website on 19 February, Data journalist Farah Hancock reported on the fees ("donations") that (some) schools were ...
    Frankly SpeakingBy Frank Macskasy
    4 days ago
  • Efeso Collins – Gone Too Soon.
    My wife’s breathing was heavy beside me as I woke this morning, still dark. Yesterday, and it’s awful news, came crashing into my head and I lay there quietly crying.Thinking of Efeso’s family and loved ones. Of so many people who knew him and were devastated by the shocking news. ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Efeso Collins spoke in Parliament only yesterday on bill which will regulate social workers (and vot...
    Buzz from the Beehive Prime Minister Christopher Luxon and other party leaders have been paying tribute to Green MP Fa’anānā Efeso Collins, who collapsed and died during a ChildFund charity run in central Auckland this morning, . The event, near Britomart, was to support local communities in the Pacific. Collins, ...
    Point of OrderBy Bob Edlin
    5 days ago
  • This is corrupt
    Earlier in the month, a panel of "independent" experts in Wellington produced recommendations for the future of housing in the city, and they were a bit shit, opposing intensification and protecting the property values of existing homeowners. Its since emerged that they engaged in some pretty motivated reasoning on the ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Efeso Collins
    God, life can be cruel sometimes can’t it?If only everyone was like him. He was so very warm, so very generous, so very considerate, so very decent. Plenty of people have those qualities but I can think of hardly anyone I've met who had them as richly as he did.Let me ...
    More Than A FeildingBy David Slack
    5 days ago
  • CHRIS TROTTER:  Is applying “tough love” to a “fragile” nation the right answer?
      The Question Christopher Luxon Needs To Ask –  And Answer:  How was it possible for a nation of barely three million citizens to create and maintain an infrastructure that functioned, schools and universities that turned out well-educated and enterprising citizens, a health system that kept its people healthy, and a ...
    Point of OrderBy poonzteam5443
    5 days ago
  • DON BRASH: Is an independent foreign policy really feasible?
    Don Brash writes – A week or so ago, Helen Clark and I argued that New Zealand would be nuts to abandon the independent foreign policy which has been a characteristic of New Zealand life for most of the last 40 years, a policy which has seen us ...
    Point of OrderBy poonzteam5443
    5 days ago
  • YVONNE VAN DONGEN: So proud
    Ratepayers might well ask why they are subsidising people who peddle the lie that it is possible to be born in the wrong body and people can change sex. The preponderance of events advertising as ‘queer’ is a gender ideology red flag. Yvonne Van Dongen writes –  It ...
    Point of OrderBy poonzteam5443
    5 days ago
  • S&P slams new Govt's council finance vacuum
    Wellington Water workers attempt to resolve a burst water main. Councils are facing continuing uncertainty over how to pay to repair and expand infrastructure. The Wellington Regional Council was one of those downgraded. File Photo: Lynn Grieveson / The KākāTL;DR: Ratings agency Standard & Poor’s has downgraded the outlooks for ...
    The KakaBy Bernard Hickey
    5 days ago
  • Grant Robertson Resigns.
    Yesterday the man that I admire most in NZ politics called time.Around the middle of yesterday news began to filter out. People were posting unconfirmed reports that Grant Robertson was taking a new role as Vice-Chancellor at Otago Uni. Within an hour it became clear that he was indeed retiring ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Auckland’s City Rail Link will fail immediately… in the best possible way
    This post was originally published on Linked In by Nicolas Reid. It is republished here with permission. Here’s the thing: the City Rail Link is almost certainly going to be overcapacity from day one, with crowding on the trains at peak times. In the simple terms of popular transport ...
    Greater AucklandBy Greater Auckland
    5 days ago
  • You can’t always get what you want
    Grant Robertson is leaving Parliament for two new careers, having been frustrated and blocked from achieving some of his biggest political ambitions. So, he is returning to Dunedin, and, unusually for a former finance minister, with seemingly no ambitions to enter the business world. Instead, he will become Vice Chancellor ...
    PolitikBy Richard Harman
    5 days ago
  • At a glance – Was Greenland really green in the past?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    5 days ago
  • Sharp-elbowed and loving it
    It doesn't seem to take a lot to persuade someone who feels they work their guts out that in fact no one is working as hard as me.It doesn't seem to take a lot to persuade someone who knows somebody taking the welfare system for a ride that they’re all ...
    More Than A FeildingBy David Slack
    6 days ago
  • Sharp-elbowed and loving it
    It doesn't seem to take a lot to persuade someone who feels they work their guts out that in fact no one is working as hard as me.It doesn't seem to take a lot to persuade someone who knows somebody taking the welfare system for a ride that they’re all ...
    More than a fieldingBy David Slack
    6 days ago
  • Then why did she do it?
    Earlier in the month, Cancer Minister Casey Costello was caught lying to the media about whether or not she had requested advice on cutting tobacco excise tax to benefit the cancer industry. She repeated her lies in Parliament. But today, she stood up and pretended to apologise for "causing confusion" ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Is Applying “Tough Love” To A “Fragile” Nation The Right Answer?
    The Question Christopher Luxon Needs To Ask –  And Answer: How was it possible for a nation of barely three million citizens to create and maintain an infrastructure that functioned, schools and universities that turned out well-educated and enterprising citizens, a health system that kept its people healthy, and a workforce ...
    6 days ago
  • The limits to realism.
    Realism is a school of thought in the field of international relations (IR). It provides a theoretical framework for analysing the behaviour of States in the world political system. Like other theories (which in the IR literature include idealism, liberalism, … Continue reading ...
    KiwipoliticoBy Pablo
    6 days ago
  • UNSOCIAL MEDIA – Following the Trolls
    From TODAY FM archives — Wilhelmina Shrimpton and Simon Morrow take a deep dive into trolling and cyberbullying. From the high profile to the general public, Kiwis across all walks of life are being targeted, and some are paying the ultimate price. So what drives us to troll, who is ...
    The PaepaeBy Peter Aranyi
    6 days ago
  • Govt prescribes stiff medicine for some beneficiaries while easing access to drugs containing pseudo...
    Buzz from the Beehive One of two new announcements on the government’s official website  – given plenty of publicity by the mainstream media over the past 24 hours – has been pitched as the first steps in a “reset” of the welfare system.  Stiff medicine for beneficiaries, in effect. The ...
    Point of OrderBy Bob Edlin
    6 days ago
  • We’re not as fragile or as lazy as Luxon says
    Luxon says his government is one that is “prepared to make those hard decisions”. File Photo: Lynn Grieveson / The KākāTL;DR: Prime Minister Christopher Luxon has adopted the language of Ruth Richardson before her 1991 ‘Mother of All Budgets’ in arguing for benefit sanctions to bolster the Government finances, which ...
    The KakaBy Bernard Hickey
    6 days ago
  • Talking over the Silence.
    Please open the doorNothing is different, we've been here beforePacing these hallsTrying to talk over the silenceIf I was to describe what I do, or at least the way it sometimes feels, then talking over the silence wouldn’t be a bad way to do so.Not that there aren’t other voices ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • LINDSAY MITCHELL: National needs to go further
    Lindsay Mitchell writes – In today’s State of the Nation speech Christopher Luxon talked repeatedly about getting young people off welfare. It seems that National has devised a traffic light system which will use increasing levels of sanctions – welfare deductions – when beneficiaries fail to meet their ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Gordon Campbell on National spreading panic about the economy
    It is a political strategy as old as time. Scare the public with tales of disaster and stampede them into supporting your ideological agenda because they believe There Is No Alternative. Yet, if the NZ economy truly is as “fragile” as PM Christopher Luxon says it is… Then how come ...
    6 days ago
  • The promise of passive house design
    This is a re-post from Yale Climate Connections by Sarah Wesseler Imagine a home so efficient that it could be heated with a hair dryer. That’s the promise of a passive house, a design standard that’s becoming increasingly popular in the architecture community for its benefits to occupants and the climate. ...
    6 days ago
  • Deep in the Uncanny Valley of AI
    Hi,Before we get started, some very big fun Webworm news. I am launching a new journalism fund called Big Worm Farm!A really great thing that’s happened with Webworm over the last four years is that it’s grown. That’s great for a few reasons.Firstly — it means the work here gets ...
    David FarrierBy David Farrier
    6 days ago
  • Introducing: Big Worm Farm
    Hi,I’m excited to tell you about Big Worm Farm.Put simply, the main aim of Big Worm Farm is to support investigative journalists from around the world to be able to devote dedicated time to research and report on a specific story, to be published on Webworm.The stories will capture the ...
    David FarrierBy David Farrier
    6 days ago
  • Why Massey is broke
    The Tertiary Education Commission has named the two universities it says are at high risk financially. They are Massey and Victoria. The Commission appeared before Parliament’s Education Select Committee yesterday and offered a revealing and rare insight into the complex world of university economics. Its Briefing to the Incoming Minister ...
    PolitikBy Richard Harman
    6 days ago
  • You keep Luxin' when you oughta be thruthin'
    Christopher Luxon’s campaign to win last year's election continued yesterday with a speech.Channelling possibly Bruce Willis in Die Hard, he was all, I'm not going to dress it up, I'm going to level with you guys: the state of the nation is fragile.The thing he’s maybe missing is that it ...
    More Than A FeildingBy David Slack
    7 days ago
  • The PM spoke of the need for tough choices – and then opted to beat a retreat when gays and Gaza a...
    Buzz from the Beehive The PM’s State of the Nation speech – according to a Newshub headline – was a ‘buffet of buzzwords’ and full of ‘nonsense’. Fair to say, the quoted words were attributed to Opposition politicians, who were unlikely to say the speech was visionary and inspiring: PM ...
    Point of OrderBy Bob Edlin
    7 days ago
  • Keynesian Wisdom.
    When the facts change, I change my mind - what do you do, sir?John Maynard Keynes (1883-1946)This posting is exclusive to Bowalley Road. ...
    7 days ago
  • BRIAN EASTON: Puffing policy
    Public policy towards tobacco consumption remains politically sensitive. Brian Easton writes – In 1983, a young researcher was told by a medium-level Treasury official that Treasury policy was to abandon excise duties on tobacco. The senior Treasury economist that I consulted, famed for his commonsense, snorted ‘we ...
    Point of OrderBy poonzteam5443
    7 days ago
  • Is 2.8% per year population growth too much?
    TL;DR: The Government is reviewing migration settings that produced 2.8% population growth last year and is looking at a longer-term strategy of matching population growth to the ‘absorbtive capacity’ of Aotearoa-NZ’s infrastructure.Our population grew last year at its fastest rate since 1947, when large numbers of troops returning from World ...
    The KakaBy Bernard Hickey
    7 days ago
  • Tough Choices & Tough Love.
    I've been trying to hurt youI've been holding you tightI've been learning to love youAm I doing it right?How are you still breathingWith my hands all over your heart?How do we start healingIf we can't keep out the dark?Yesterday the Prime Minister delivered his State of the Nation, for no ...
    Nick’s KōreroBy Nick Rockel
    7 days ago
  • Will the 2024 RLTP be yet another debacle?
    A couple of years ago, Auckland Council and Auckland Transport found themselves in court over the 2021 Regional Land Transport Plan (RLTP). A non-profit alliance for transport decarbonisation, All Aboard Aotearoa, argued that among other factors, the RLTP was unlawful because it failed to give effect to the 2021 Government ...
    7 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #07
    A listing of 31 news and opinion articles we found interesting and shared on social media during the past week: Sun, Feb 11, 2024 thru Sat, Feb 17, 2024. Story of the week Based on mission alignment, our Story of the Week is certainly Can we be inoculated against climate ...
    1 week ago
  • Immigration Issues.
    Help is comingI heard a whisperWhite caps turningThe breath of summerA distant drummingAnd liar birds callingEscape the anguish of our pastAnd prayOne of the major challenges of the the 21st century will be the mass migration of human beings around our globe.Some seeking economic opportunities, others fleeing repressive regimes, war ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Trust us, we know what we’re doing
    The best trick the National Party ever pulled was to fabricate their reputation as the responsible ones.This would be the National Party that denied us the New Zealand Superannuation Scheme that—Brian Gaynor wrote back in 2007would be worth more than $240 billion today and would have transformed the New Zealand ...
    More Than A FeildingBy David Slack
    1 week ago
  • The Left’s Timidity
    It is not just Karl Marx – even the most enthusiastic supporters of the market economy (not least Adam Smith) will concede that its normal operation inevitably leads to a concentration of wealth in relatively few hands. Some, at least, of these enthusiasts will accept that such a concentration is ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • OLIVER HARTWICH: Absurd – NZ courts can now decide on climate change
    Oliver Hartwich writes – The World Justice Project ranks New Zealand 7th out of 142 countries on its ‘Rule of Law Index’, narrowly ahead of Australia’s 13th place. However, Australia still has hope – if only because of a recent decision by the Supreme Court of New Zealand. The ...
    Point of OrderBy poonzteam5443
    1 week ago

  • Government backs police to crackdown on gangs
    The coalition Government is restoring law and order by providing police new tools to crack down on criminal gangs, says Justice Minister Paul Goldsmith and Police Minister Mark Mitchell.  “Over the last five years gangs have recruited more than 3000 members, a 51 per cent increase. At the same time, ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Northland’s new Kāeo Bridge officially open
    Transport Minister Simeon Brown has welcomed the official opening of the new State Highway 10 (SH10) Kāeo Bridge, which will improve safety and traffic flow for people heading to and from the Far North. “This is an important piece of infrastructure for the Northland region that will help members of ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Dry weather triggers extra support for farmers and growers across the top of the South Island
    The coalition Government is providing support for farmers and growers as dry conditions worsen across the top of the South Island. “Conditions on the ground across the Marlborough, Tasman, and Nelson districts are now extremely dry and likely to get worse in the coming months,” Agriculture Minister Todd McClay said. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Trade Minister heads to Abu Dhabi for key WTO negotiations
    Trade Minister Todd McClay travels to Abu Dhabi in the United Arab Emirates for the 13th Ministerial Conference of the World Trade Organisation (WTO) today, to take up his role as Vice Chair of the negotiations. The Ministerial Conference is the highest decision-making body within the WTO and meets every ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Appointment round for King’s Counsel announced
    Attorney-General Judith Collins today announced an appointment round for King’s Counsel will take place in 2024. Appointments of King’s Counsel are made by the Governor-General on the recommendation of the Attorney-General and with the concurrence of the Chief Justice. The Governor-General retains the discretion to appoint King’s Counsel in recognition ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Retiring Chief of Navy thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Navy, Rear Admiral David Proctor, for his service as he retires from the Royal New Zealand Navy after 37 years. Rear Admiral Proctor will retire on 16 May to take up an employment opportunity in Australia.  “I would like to thank ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Indonesian Vice President to visit New Zealand
    Indonesia’s Vice President Ma’ruf Amin will visit New Zealand next week, the first here by an Indonesian leader since 2018, Deputy Prime Minister Winston Peters has announced. “New Zealand and Indonesia have a strong partnership,” Mr Peters says.  “The Vice President’s visit is an opportunity to discuss how we can strengthen ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government boost to fight against caulerpa
    The battle to contain the fast-spreading exotic caulerpa seaweed has today received a $5 million boost to accelerate the development of removal techniques, says Biosecurity Minister Andrew Hoggard.  “The time is now to really lean in and build on the work of Biosecurity New Zealand, mana whenua, communities and local ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Minister attending Australian data, digital meeting
    Minister for Digitising Government Judith Collins is in Sydney to attend the first Data and Digital Ministers’ Meeting of 2024.  “This is a great opportunity to connect with our Australian counterparts and identify how we can work together on digital transformation,” Ms Collins says.   “Both our nations are looking into ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Appointments to Antarctica New Zealand Board
    Foreign Minister Winston Peters has appointed Leon Grice and Heather Simpson to serve on the Antarctica New Zealand board.  “Since taking office, the Coalition Government has become concerned about the direction of the Scott Base Redevelopment Project,” Mr Peters says.  “It is vital that Antarctica New Zealand has the right ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Strengthening the Single Economic Market
    Finance Minister Nicola Willis has met with Australian Treasurer Jim Chalmers to discuss the opportunities to lower business costs and increase the ease with which businesses and people can operate across the Tasman.     “I have met with Treasurer Chalmers and shared our new Government’s ambitious economic goals, our plans ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government to address business payment practices
    The Government will repeal the Business Payment Practices Act 2023, Small Business and Manufacturing Minister Andrew Bayly announced today. “There is a major problem with large market players imposing long payment terms and routinely paying invoices late. “However, the Business Payment Practices Act is not an effective solution and would ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Greater focus on work will reduce child poverty
    Worsening child poverty rates support the Coalition Government’s focus on reducing the cost of living and getting people into work, Child Poverty Reduction Minister Louise Upston says. Figures released by Stats NZ today show child poverty rates have increased, with the rising cost of living, driven by inflation, making it ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ announces new support for Ukraine
    Foreign Minister Winston Peters and Defence Minister Judith Collins have marked two years since Russia’s invasion of Ukraine by announcing further support and sanctions, and extending our military assistance. “Russia launched its illegal, full-scale invasion of Ukraine, in blatant violation of international law, including the UN Charter,” Mr Peters says. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Finance Minister to meet Australian Treasurer
    Finance Minister Nicola Willis will travel to Australia today to meet her Australian counterpart, Treasurer Jim Chalmers.    “New Zealand and Australia have an incredibly strong trade and investment relationship. The Closer Economic Relations and Single Economic Market are powerful engines for growth on both sides of the Tasman.     “I will ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • PM shocked and saddened at death of Efeso Collins
    “I am truly shocked and saddened at the news of Efeso Collins’ sudden death,” Prime Minister Christopher Luxon says. “Efeso was a good man, always friendly and kind, and a true champion and advocate for his Samoan and South Auckland communities. “Our thoughts and deepest sympathies go to his family, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Greater support for social workers
    The Coalition Government is enhancing the professionalism of the social work sector and supporting the vulnerable people who rely on them, Social Development and Employment Minister Louise Upston says.  The Social Workers Registration Legislation Amendment Bill passed its third reading in Parliament today. It amends the Social Workers Registration Legislation ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government delivers greater freedom and choice for sick New Zealanders
    The coalition government is delivering on its commitment to making principled decisions by getting rid of red tape that doesn’t make sense and allowing sick New Zealanders greater freedom and choice to purchase effective cold and flu medicines. A bill amending the Misuse of Drugs Act 1975 is being introduced, and changes to the Medicines ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government begins reset of welfare system
    The Coalition Government is taking early action to curb the surge in welfare dependency that occurred under the previous government by setting out its expectations around employment and the use of benefit sanctions, Social Development and Employment Minister Louise Upston says. In 2017, 60,588 sanctions were applied to beneficiaries who ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • State of the Nation
    Ka nui te mihi kia koutou. Kia ora, good morning, talofa, malo e lelei, bula vinaka, da jia hao, namaste, sat sri akal, assalamu alaikum. Thank you for coming to my first State of the Nation as Prime Minister. Thank you for coming to a speech where I don’t just ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • West Coast tourism attractions officially open
    Regional Development Minister Shane Jones will attend the official opening of two highly anticipated tourism projects on the West Coast today – Pike29 Memorial Track, dedicated to the memory of the Pike River miners, and Pounamu Pathway. “The Pike29 Memorial Track is a way to remember and honour the men ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Independent ferry service advisory group in place
    Appointments to the Ministerial Advisory Group tasked with providing independent advice and assurance on the future of KiwiRail’s inter-island ferry service have been made, State Owned Enterprises Minister Paul Goldsmith says. “It’s important for New Zealand that KiwiRail is focused on ensuring safe, resilient, and reliable ferry services over the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Joint statement from the Prime Ministers of Australia, Canada, and New Zealand
    The Prime Ministers of Australia, Canada and New Zealand today issued the following statement on reports of Israel’s planned military operation in Rafah. We are gravely concerned by indications that Israel is planning a ground offensive into Rafah.   A military operation into Rafah would be catastrophic. About 1.5 million Palestinians ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Govt will deliver on expanded breast screening
    The coalition Government has made the first steps in delivering on its promise to  extend free breast screening to women aged 70-74, Health Minister Shane Reti says. “As part of the 100 day plan, the Government has now met with officials and discussed what is needed in order for the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government announces woolshed roadshows in support of sheep farmers
    The Government celebrates National Lamb Day (15 February 24) and congratulates sheep farmers on the high-quality products they continue to produce. Agriculture Minister McClay hosted bipartisan celebrations of National Lamb Day with industry representatives at Parliament this week to mark the anniversary of the first frozen lamb exports that left ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Speech: Address to the NZ Economics Forum
    It’s great to be back at the New Zealand Economics Forum. I would like to acknowledge everyone here today for your expertise and contribution, especially the Pro Vice-Chancellor, Head of the Waikato Management School, economists, students and experts alike. A year has passed since I was last before you, and ...
    BeehiveBy beehive.govt.nz
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  • Government tackling high construction costs
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