web analytics

Hickey sees the light

Written By: - Date published: 12:49 pm, September 29th, 2010 - 71 comments
Categories: capitalism, class war, Economy, equality, overseas investment, socialism - Tags: ,

Bernard Hickey has become one of the country’s leading economic commentators, arguing from a position of the hardline neo-liberals – ie. the market is god. Now, he’s changed his mind. He’s come to the realisation that there’s no invisible god’s hand directing capitalist markets. Instead they are directed by short-termist elites. We need to take back control.

It’s time for me to recant and to say what I’ve been thinking for months: the economic god of completely free markets and capital flows is not worth believing in anymore and we must look for other things to believe in and do. I think New Zealand needs to have a debate about capital controls, about foreign ownership of assets, about measures to control our currency and about being openly nationalistic rather than internationalistic about our economic policy.

The neoliberal model introduced by the First ACT Government, further entrenched by National in the 1990s and largely left in place by the Fifth Labour Government has been nothing but a generation-long wealth grab by the elite.

In the end, our economic growth has suffered, our wages have suffered, and our work conditions and job options have suffered. Our national debt has spiralled while we’ve become ever more dependent on imports, while our economy has become effectively foreign-owned with around 7% of GDP heading overseas as profits. The neoliberal heroes failed to invest in this country. Instead, they sold off everything they can and made off with the loot.

“I think we need to rethink the way we run monetary policy, the way we allow foreign ownership of assets, the way we encourage savings, the way our financial institutions are regulated and change the things we are aiming for.”

We need to stop seeing ‘growth’ as an end in itself and realise that successful societies are fair and equal societies.

“We should debate more specific controls on who owns what assets, whether monetary policy should still use the Official Cash Rate to focus on inflation alone, and whether banks should still be free to lend however much they want to whomever they want.”

It’s about taking back the leadership of the economy. Putting it in accountable public institutions, rather than self-interested, unelected elites.

The ‘Great Moderation’ was actually a Great Fraud perpetuated by financial engineers in Manhattan and London who targetted massive short term bonuses by creating financial instruments that gave the appearance of reducing risk, but actually massively increased risk.

These investment bankers exploited all sorts of holes in financial regulations and in the way pension funds are allocated to enrich themselves at the expenses of middle and under classes in developed countries. The created a long term mess for short term gain. They privatised profits for themselves and socialised the losses for us all.

They worked in tandem with the managers of often publicly listed multinational corporates who specialised their operations in different countries, often moving manufacturing and services to lower wage economies in an endless hunt to lower costs and increase profits (often for their own personal benefit).

This seemed like a good idea at the time and even seemed noble, spreading the wealth around. But all it did was reduce real wages for the middle and under classes in developed economies, who then promptly borrowed more to keep spending as if they were richer. It was a recipe for instability.

All this debt-fueled consumption growth in the developed world that was funded and supplied by savings and production surpluses in the developing world.

It could not last. Like any Ponzi scheme, eventually the debt keeps rising until the interest bill overwhelms the ability of the borrower to pay.

And the Great Recession is more of the same. The elites are still getting wealthier, taking from the rest of us. Tomorrow’s tax swindle is just another example.

“Now investors are rightly worried that governments may not be able to afford the extra debt taken on to keep their economies pumped up after September 2008 and the toxic debt they took on that the banks couldn’t handle.

The financial systems in many of these economies remain broken, but more importantly, households know they have too much debt already and won’t borrow more to spend like they were. The great de-leveraging has begun and nothing can stop it.

So the tide really is going out and now we’re discovering the underlying structure of the global economy is flawed.”

Underlying the human artifice of the economy is the real world. We have been ignoring the value of that real world for far too long and, as a result, exploiting and damaging it. Consequences in the form of peak oil and climate change are about to it us.

Emerging economies such as China want to industrialise in a mercantilist way, holding down their currencies to subsidise producers at the expense of consumers.

The global economy is now dependent on production and saving in one or two parts of the world, China and Germany, offset by consuming and borrowing in other parts of the world, America, Britain, Southern Europe, Australia and New Zealand.

This is fine as long as the savers have somewhere safe to put their capital surpluses and the borrowers can keep borrowing. But it all ends when borrowers run out of borrowing capacity and the savers lose faith in the paper they’re exchanging for the product they’re producing.

We need to realise that sometimes the system doesn’t work. We need to have something in reserve.

We need to accept that a completely free and unfettered system of global muilti-national capitalism driven by an elite of CEOs and investment bankers will inevitably blow itself up in a frenzy of borrowing, bonuses, short term thinking and self interest.

That’s the kind of thinking that would get you burned at the stake in commercial circles in this country. Which tells us about another underlying problem – the poor intellectual quality of our economic leaders.

“We increased our foreign debt by NZ$97.5 billion inside the last six years, but all that happened is our per capita GDP actually fell over that period.

We borrowed from the free and easy and low interest rate global capital flows to pump up asset prices and go on a spending spree. All we have left for it now is some leaky homes, a big debt and a hollowed out workforce.”

Borrowing has its place, if it is being used to fund investment for the future. But that kind of planning simply isn’t part of the neo-liberal mindset. Instead, the easy money was borrowed to buy more imported consumer goods. Lack of controls on borrowing resulted in us hollowing out our own manufacturing and importing too much instead. It’s similar to what happened to Spain when it was awash with plundered South American gold. The difference is, we have to pay back the money.

“We need to recognise that in a world of competitive devaluations, growing trade tensions and nakedly selfish vested interests (governments, multinationals and global investment banks) that we have to defend ourselves and be just as nakedly nationalistic.

We have to assume, just as Marx pointed out, that free markets will eventually overheat and blow up if we allow them free rein.

Income needs to be redistributed to offset the concentration of wealth that naturally occurs in such a globalised, free flowing world of capital. Ownership of assets needs to be monitored and controlled. The growth of foreign debt needs to be restricted.

Consumers and bankers need to be saved from themselves.

That is what I think we’re starting to see filter through to our politicians from the grass roots upwards.”

In the end, New Zealand is an interdependent society and economy, and no-one will look out for us but ourselves. Simply letting ourselves be a cork on the stormy ocean of the world economy, or a minnow in a sea full of sharks, is not sensible.

“the inevitable result of these dislocations of capital and the means of production, along with competitive devaluations, is a global land grab for hard assets such as arable land, mines and technology. Bits of paper don’t cut it anymore. No wonder the price of gold hit a record US$1,300/oz overnight.

No wonder the Chinese want to buy our dairy producing land and factories. Or the mines in Australia.”

I can’t understand why selling our assets would ever be seen as a good idea. Especially strategic assets that we can’t afford to lose. We just end up paying profits that disappear offshore and the owners under-invest knowing that the country can’t afford to not bail them out.

“China likes free trade because it wants to build factories and sell stuff to the rest of the world. It wants to own assets in other countries that can provide it with the raw materials and food it needs to keep that export machine going and employing workers from the countryside.

But China will not allow others to buy those assets in its country. It is point blank refusing to allow its yuan to appreciate quickly versus the US dollar.

US politicians, under pressure from voters, are revolting against the multi-national free trading system in a messy way, looking to impose tariffs. The Tea Party movement, however flawed, is a reaction to the failure of this global system and the way it has been distorted by vested interests to transfer wealth from the middle classes to the richest Manhattanites.

America is trying to devalue and print its way out from under its debt. Europe will eventually have to do the same, if only to stop its single currency from exploding from within. China will not stop and Japan is about to announce a massive new stimulus in the wake of its second currency intervention inside a week.

Brazil has declared it is engaged in a currency war to try to stop its currency from rising.

Brazil, like Australia and New Zealand, has a freeish floating currency that is rising as others try to devalue and buy into countries with hard rather than paper assets.”

This is a world where direct ownership of real wealth-producing assets like farms and mineral deposits is once again going to be of prime importance. We need to hold on to ours.

“The government could consider limits on foreign ownership of major assets and restrictions on profit repatriation.

Savings into New Zealand KiwiSaver funds and the New Zealand Superannuation funds could be directed into New Zealand investments.”

We need to build a national wealth fund with money from Kiwisaver, the Cullen Fund, private contributions via Kiwibank, and oil and mineral royalties. That fund should be given a mandate to invest in assets of strategic importance to the New Zealand economy here and abroad. And we must nationalise any exploitation of our oil and mineral reserves, rather than let that one-off wealth endowment flow overseas.

“Much more could be done to protect ourselves and reduce the possible damage from future booms and busts.”

If the post-war period was define by historically long and rapid periods of growth and relatively shallow recessions, the coming decades will be marked by boom and bust caused by oil shocks and environmental havoc. We need to start work now to protect our economy and our society.

71 comments on “Hickey sees the light”

  1. Colonial Viper 1

    I don’t think Bernard typed that out over a beer last night. He’s been thinking about this stuff for a while by the looks of it. He no doubt knows that he is going to suffer some repercussions from the Right over this, but he did it anyway. Good on him, good on the NZ Herald, and good on you Marty for pushing this out there. Let’s see who in parliament has the guts to follow this up.

  2. just saying 2

    If the weight of evidence can change Hickey’s mind, why can’t Labour’s front bench be similarly moved?

    • Lanthanide 2.1

      Because the ideas Hickey is espousing are too complicated for the general population to understand, and too difficult for Labour to sell to them.

      • Vicky32 2.1.1

        You have very little in the way of faith in the general population! I know the 20-somethings seem to be seriously stupid compared to their parents, and even more so, their grand-parents, but even so!
        Deb

        • tea 2.1.1.1

          Perhaps not too stupid to pay for your reitrements and healthcare! I presume you’re not a 20 something I take it?

          We never f*n voted for Muldoon or Labour in the 80s twice!!

    • Bored 2.2

      Just imagine Labour’s front bench mindset over the years… 1913 Marx’s relations to production, dialectic materialism….1938 the Keynesian accomodation, Christian “socialism”, the Welfare State….1984 Friedmanite free market fundamentalism, Hayeks anti socialism….2010 ???????? I dread to think what next.

    • The Chairman 2.3

      We’ve just had Cunliffe’s Systemic Market Failure and now Bernard’s recant. Is this the beginning of a new groundswell for change?

  3. toad 3

    Strike me down with a feather! I’ve always thought Hickey was one of those so entrenched in his neo-liberal mindset that he’s never come to a realisation like that.

    Maybe I should send Don Brash a Green Party membership application form.

    BTW, liked the reference to 1984-90 as the “First ACT Government” Marty.

    • Draco T Bastard 3.1

      I’ve always thought Hickey was one of those so entrenched in his neo-liberal mindset that he’s never come to a realisation like that.

      I always thought his writing was reasonably astute and was somewhat surprised that he hadn’t come over sooner. The flaws in the neo-liberal paradigm, that’s taught as Gospel in universities, are glaringly obvious when you actually think about it.

      Maybe I should send Don Brash a Green Party membership application form.

      I LOL’d 😀

      Now that is a leopard that can’t change it’s spots.

  4. jacinda 4

    Excuse me for nit picking, but how are the tax cuts taking from the “rest of us?”

    The tax cuts are the government taking less from everyone, which seems fair, as people get to keep the money they worked hard for?

    So, me getting more of my tax back from now on, is actually me taking from other people?

    • Blighty 4.1

      where’s the moeny for the tax cuts coming from?

      a) GST increase

      b) borrowing increase

      so, your tax cut will be paid for by others servicing the debt long after you’re gone.

      and every dollar in tax cuts is a dollar that can’t be spent on education and health.

      • Craig Glen Eden 4.1.1

        jacindas joking right? Please oh please don’t tell me she actually believes that the money is hers.

        • felix 4.1.1.1

          No, she doesn’t believe it. She’s a troll who has been posting more or less the same thing under several names all around the place very recently.

  5. jimmy 5

    Bernard just made my day. I bet BNZ are taking a close look at their sponsorship contract right now.

  6. prism 6

    Just pondering after reading the line ‘there’s no invisible god’s hand directing capitalist markets. Instead they are directed by short-termist elites.’ Word play – swop letters and they morph into short-termites elites. And it seems as if Labour is being undermined and decimated from within.

    Is it middle-classism, where its more important to have matching curtains in coffee latte colour, than spend time thinking and talking about what is the new vision of a decent, prosperous society (or was that Jim Bolger who ended up saying that?).

  7. Draco T Bastard 7

    The difference is, we have to pay back the money.

    Actually, no we don’t.

    When someone loans someone else money, even if the “someone” is a country*, they’re taking the risk that they aren’t going to get it back.

    * Of course, a country should never be borrowing anyway – they have no need to do so and can print the money without interest as a sovereign right. The idea that a country needs to borrow at interest from the banks originates with the bankers. They didn’t come up with that idea with the countries interest at heart.

    We have to assume, just as Marx pointed out, that free markets will eventually overheat and blow up if we allow them free rein.

    We don’t have to assume that as it’s been proven quite conclusively over the last few centuries. The latest proof is the current GFC.

    In the end, New Zealand is an interdependent society and economy, and no-one will look out for us but ourselves. Simply letting ourselves be a cork on the stormy ocean of the world economy, or a minnow in a sea full of sharks, is not sensible.

    Wholeheartedly agree and it comes back to what I keep saying: We can produce everything we need right here from our own resources. If we do that and put proper restrictions on ownership and income then the amount we have to work and produce will decrease. We could even become a sustainable society which is impossible under the neo-liberal/capitalist paradigm.

    That fund should be given a mandate to invest in assets of strategic importance to the New Zealand economy here and abroad.

    As much as I agree with a sovereign wealth fun it cannot invest abroad. If foreign investment is bad for us, which it is, then it is also bad for every other country as well. We need to stop such foreign investment not propagate more of it.

    …the coming decades will be marked by boom and bust caused by oil shocks and environmental havoc. We need to start work now to protect our economy and our society.

    And we do that by ensuring that we can produce everything that we need*. We don’t have to make a profit from it. In fact, that’s a bad idea as profit is a deadweight loss.

    * Note the word “need” not “want”. We need healthy food we don’t specifically need bananas.

    • The Baron 7.1

      Banning bananas now Draco. Awesome.

      You know what happens when Govts print money, right? You know what inflation is, right?

      In other words, you realise how incredibly nuts you sound, right?

      • Zaphod Beeblebrox 7.1.1

        But we are in a huge deflationary cycle- in the US interest rates are close to zero, even though they are issuing bonds like crazy. Why would you assume one will follow the other at the moment.

        • comedy 7.1.1.1

          because the USD is the world’s default currency (for another wee while anyway).

          We are a piffling little backwater currency which if we decided to print until the presses started glowing would turn to cak in a pretty short time frame.

      • Draco T Bastard 7.1.2

        Normal RWNJ over-reaction and over-simplification (proving, once again, that the average RWNJ is brain dead). It should have been obvious, even to the brain dead, that I was using bananas as an example and that I didn’t mention banning imports or exports. I was saying that we need to become self-sufficient so that we don’t depend upon them.

        BTW, governments printing money isn’t a problem as long as it’s balanced by the taxes to take it back out.

        • The Baron 7.1.2.1

          Ok, you have to provide some sort of theory to back up this madness. Where does your assertion that “it isn’t a problem” come from – any sort of economic orthodoxy, from any side? Anyone with any academic credentials at all?

          See I’ve been playing around in economics for a while, and that to me sounds almost like Social Credit, ala funny money, to me.

          So please, educate me – where are the texts on this long forgotten strand of “have your cake and eat it too” economic isolationism?

          • Colonial Viper 7.1.2.1.1

            Ok, you have to provide some sort of theory to back up this madness. Where does your assertion that “it isn’t a problem” come from – any sort of economic orthodoxy, from any side? Anyone with any academic credentials at all?

            You have got to be kidding me. Its the academic discipline of Economics* which is responsible for the mess we are in and you are still kotowing to their “knowledge”???

            *Thinking here of the Freidmanites, the Austrian school, the ‘Freshwater’ schools of economics

            Gawd some people are gluttons for punishment.

            I back DTB on his call for the Govt to issue its own legal tender – exactly as the US did with the original greenbacks – completely independent of the damned banking interests.

            As for inflation fears –

            a) inflation is not the problem we are facing in the western world, deflation is.
            b) you are putting dollars into circulation anyway so why don’t you do it free of the interest charges the banking system charges the country.

          • Colonial Viper 7.1.2.1.2

            See I’ve been playing around in economics for a while, and that to me sounds almost like Social Credit, ala funny money, to me.

            You kill me, ‘funny money’ huh?

            What do you think the banks produce if it is not ‘funny money’ when they take $1000 worth of Government supplied $, and loan it out multiple times to produce $20,000 worth of credit money in the system, out of thin air? (via the fractional reserve banking system)

            That’s ‘funny money’ right there, and no wonder (as Hickey points out) the Chinese as eager to trade that worthless script in for real tangible commercial resources, land and materials.

          • Draco T Bastard 7.1.2.1.3

            Where does your assertion that “it isn’t a problem” come from – any sort of economic orthodoxy, from any side?

            Actually it comes from the same theory that allows banks to print money out of thin air. i.e. Banks loan money into circulation and that money is then removed from circulation when it’s paid back. It just doesn’t have the delusion that interest can be charged on it because it can’t. What the private banks do is a Ponzi Scheme.

            • The Baron 7.1.2.1.3.1

              We’ve all probably moved on, but shall I assume from this that this is all just mad ranting then, and that no credible economist (and no, they don’t need to be from any particular school Viper – they just need to have some credibility – economics is not monopolised by the right) has ever backed these insane ideas.

              The only country that I can think of that has followed this path is Zimbabwe. How did that work out again?

              Draco, surely you realise that if your particular prescription for the world’s/society’s/economy’s woes is a good one, that someone other than a psuedo-anonymous ranter on a left wing blog site at the ass end of the world would have written about it? And that there would be some authorative source material to back up the theory and its benefits?

              Otherwise, I’ll just assume that it is you who is frankly a nut job and move on…

              • Draco T Bastard

                Ben Bernanke does. In fact, every single damn neo-liberal economist does. They all support the fractional reserve banking system which is exactly the same theory as I pointed out. All I’ve done is remove the private profit of unsustainable interest charges from it and make it so that government prints the money instead. The money is printed into circulation and then paid back.

                • The Baron

                  Righto, but none of them has said that that model will work on the basis of a Government using its printing presses to substitute for private banking and fractional reserves?

                  So, you have no sources? Just sources through extrapolation, without anybody else agreeing that such extrapolation is viable, sensible, possible, or logical?

                  So, this is all just your insane ideas?

                  Good to conclude – thanks.

                  • Draco T Bastard

                    According to you, the present system of creating money is an insane idea. As you support it this would indicate that you’re insane.

      • tea 7.1.3

        thought we were at one point there? Has no one been reading the amazing words of Alan Bollard in biography form??

    • comedy 7.2

      “We don’t specifically need bananas”…… comedy gold

      I don’t think we need nuts, fruitcakes or crackers either come to think of it.

      • The Baron 7.2.1

        Oh yes, I can’t wait for the day when Chairman Draco declares exactly what everyone in our society wants “needs”.

        First on the list – no more bananas!

        What else is on the list Draco? God, I’m salivating – what a paradise!

        • mcflock 7.2.1.1

          Baron & Comedy:

          The common ground between Draco’s comment and your responses is also descriptive of your responses. It is the word “bananas”.

        • Aron Watson 7.2.1.2

          Post made perfect sense to me. But hey, let’s pick on the word fruit then shell we…..go figure. The words RWNJ fruityloop come to mind though.

      • Draco T Bastard 7.2.2

        So when are you leaving then?

  8. tc 8

    ‘Zietgesit addendum’ makes for interesting viewing around some of the points Hickey raises.

    The worms turned as those who considered themselves informed and ahead of the curve have been brought crashing back to reality by the GFC and all the abhorrent practices it exposed as stock in trade by the shonksters.

    Any monkey can make money in a rising market….what happens when it stops rising and probably will never rise as it did before again when you want a rainy day fund……mmmm kiwisaver/superannuation (compulsory since 87 in oz) maybe…crazy talk in the NACT world.

  9. insider 9

    Bernard is obviously a smart guy, and these things should be constantly debated but remember he is just a journalist expressing an opinion. And his opinions have been wrong in the past particularly those on property prices, which is an area he has specialised in more than international trade and economic policies. So I wouldn’t get too excited…

    • Bright Red 9.1

      so, what in particular that Hickey and Marty have said are you disagreeing with?

      • insider 9.1.1

        Well starting at the first line:

        Bernard Hickey has become one of the country’s leading economic commentators, arguing from a position of the hardline neo-liberals – ie. the market is god.

        I’d say he is a prominent journalist who puts himself around and has opinions, but don’t think that makes him more credible than others who get less airtime. I’m just a bit suspect about the weight other journalists give to journalist ‘expert’ commentators. And I don’t think he has ever been a hardline neo-liberal.

        • Blighty 9.1.1.1

          stop beating round the bush old boy. Do you have any substantive disagreements about what Hickey and Marty have to say about the economy and the solutions?

          arguing the toss about Hickey’s bona fides is neither here nor there.

          • insider 9.1.1.1.1

            Well given that Marty is using BH’s conversion as a confirmation that the old gods are dead, BH’s qualifications are entirely relevant. So if your premise is flawed, most of your argument that flows will be too.

            In short I would tend to disagree that fortress NZ is the best way forward. High levels of inward investment to me are a sign of a very healthy economy that outside investors are competing to have a piece of because they see growing returns that we are rich enough to sustain. I’d expect that would be on the back of a healthy level of export and overseas investment driven wealth.

            Conversely, while Marty and BH may celebrate companies like Shell selling up and moving out as a great leap forward in economic sovereignty, I see the sad loss of global discipline and experience that a multinational can bring to a country and the opportunities that provides for local employees.

            What that means is we need greater opportunities to trade not fewer, and that trade needs to go both ways and across the economy. And I think history is more on the side of freer trade than restricted.

            • Blighty 9.1.1.1.1.1

              we have growing levels of debt/investment because we have to finance all the income from that debt/investment.

              the ‘investment’ we’re talking about is not, by and large, foreign companies cueing up to buy kiwi success stories. It’s people loaning us money so we can sell each other houses at over-inflated prices.

              If it were Kiwi success stories being sold overseas, you would have to question why we are selling.

              hickey is writing about restricting capital flows – like the wave of cheap credit that financed the housing bubble. Not trade restrictions.

              • insider

                Hickey and Marty are talking about far more than that. “I think New Zealand needs to have a debate about capital controls, about foreign ownership of assets, about measures to control our currency and about being openly nationalistic rather than internationalistic about our economic policy.”

                Buying and selling of businesses is a form of trade IMO, that’s why I said “trade needs to go both ways and across the economy”.

                Why would anyone sell a successful business? Range of reasons that are true for domestic and international businesses: lack of energy, pride in building something bigger, cashing in, realisation that the business needs wider help to survive, looking for a new challenge.

                Being successful now is not a guarantee of success forever. I’ve worked for successful companies that will never be more successful because of the failure of the owners to let go. While others are able to recognise that they are great building a business to size ‘x’ but to get to y and z requires a different skill set, and the cost of that may be to sell it.

                I think it would be brilliant if NZ is continuously generating a series of businesses that people are lining up to buy. I’d more more worried if there were no line.

                • Blighty

                  but, dear imbecile, we are not selling successful companies. We are borrowing for home and farm loans.

                  And, again, what you’re pointing to are calls for capital controls, not trade controls.

                  it’s about not undermining the viability of our economy by not making it vulnerable to external financial shocks by not selling our strategic assets and nor getting up to our nostrils in debt.

                  it’s not about putting tariffs or limits on trade.

                  you do understand the difference, yes?

                  • insider

                    Well if your response to people who have the temerity to disagree with you is just to resort to patronising smugness, I’ll leave you to play alone in your capital flow controlled fortress Blighty.

            • Colonial Viper 9.1.1.1.1.2

              Well given that Marty is using BH’s conversion as a confirmation that the old gods are dead, BH’s qualifications are entirely relevant. So if your premise is flawed, most of your argument that flows will be too.

              The old gods of the free market are not dead, they were never there.

              Big difference. To continue the metaphor, false mistaken idols have been the target of reverence by the discipline of economics, and all the governments of the world sucked in by it, albeit not too subtly encouraged by multinational corporate interests.

            • Draco T Bastard 9.1.1.1.1.3

              I see the sad loss of global discipline and experience that a multinational can bring to a country and the opportunities that provides for local employees to remain serfs.

              FIFY

    • Maynard J 9.2

      You were wrong from the outset, outsider, Hickey is not a journalist. That’s not his angle in the slightest.

  10. Leopold 10

    Waiting for Mr Farrar’s spin on this….

  11. Draco T Bastard 11

    http://www.tnr.com/blog/jonathan-chait/77977/delusions-egalitarianism“>Delusions Of Egalitarianism

    The chart below conveys the central point: people think the distribution of wealth is more equal than it actually is; and they think it should be much more equal than their already unrealistically-equal notion of its current state.

    More indications of the irrationality of the market.

    Deleveraging is America’s future

    The latest Flow of Funds release by the US Federal Reserve shows that the private sector is continuing to delever. However there are nuances in this process that to some extent explain why a recovery appeared feasible for a while.

    And it appears that the current GFC still has a long way to fall.

    • Herodotus 11.1

      http://blog.labour.org.nz/index.php/2010/09/26/the-tax-switchswindle/comment-page-1
      DTB remember this !!! “Since when has Bernard Hickey been from the Left?”
      He is movingthat way. Sorry had to hunt you down regarding this 😉
      And the maket is as rational as people, or is it people are as rational as the market !!!
      Also isnot the market especially the one that has been severally damaged just another version of “A Ponzi Scheme, but Govts all over the world have picked up the bill, or more correctly we the dopy citizen/tax payer

      • Draco T Bastard 11.1.1

        Apparently he is. Shows signs of intelligence and the accompanying scepticism that goes with it. He’s not just blindly believing what he’s been told but questioning it.

        The collapse of the financial system in today’s GFC is the collapse of a Ponzi Scheme. Capitalism is a Ponzi Scheme fed by the delusion that if you’re rich you can become richer without producing any wealth.

        And the maket is as rational as people, or is it people are as rational as the market !!!

        Is that a question or an exclamation?
        The market is as rational as the known information. Most people have NFI about the information.

  12. ak 12

    A stunning reversal by one of their very own and most influential tools: along with the delicious farce of ACT drowning in hypocrisy and the tories hoist by their own filthy Iwi/Kiwi petard, symptomatic of the ever-accelerating path of Progression brought about by the interweb’s rapid dissemination of information and ideas (also predicted by Karl). The seeds of their own destruction germinating in their very own recta. Happy days for you youngsters and your kids. Keep chipping away: while they still own the scungy dregs of the Media, they still own us all.

  13. r0b 13

    I think it’s been clear ever since this despairing, depressing rant that all was not well with Mr Hickey’s take on the neoliberal dream.

    Good on you Bernard for waking up and seeing the light of day. Good on you for saying so forthrightly and compellingly.

  14. BLiP 14

    Its like watching a baby take its first steps . . . speaking of which, I wonder what’s changed in Bernard’s life that he has begun to think of others and the future rather than just himself and how clever he is. The data which supports his new viewpoint has been available and proved irrefutable for a generation or more; perhaps it just takes a certain light in which to read it before it makes sense, I guess.

  15. gingercrush 15

    I think Hickey needs a grip period and he should have remained fat because he seriously looks unhealthy. As too are his rantings. From the nonsense of his predicition house prices would fall 30%, to his seriously unhinged rants about how X and Y should leave New Zealand (which many of the left seem to lap up despite Hickey having his way would see things the left despise) to his pathetic thoughts on taxes on property where he went from a CGT to Land Tax to other bullshit.

    And I’m not entirely sure why you lot are celebrating his latest rant because the rant before this was about how the period of 2000-2008 of the Clark-Cullen years were years of fraud.

    • Blighty 15.1

      Why you lot were calling for more tax cuts because of surpluses in the Labour years, many on the Left were warning that we were in a housing buble and building up too much debt but the neoliberal settings of the economy had no way to counter that.

      housing is still overpriced and is did come down 10% at the lowest.

    • Herodotus 15.2

      For me what B.H. comments on is very valid. Even “new” industries such as Wellwood is being attacked note re Sir Pete Jacko, the yacht industry from US cup. So what substainable industries and GDP have we from those years of such great opportunity that was missed?
      http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10676075
      as with Blighty Houseing IS over priced, yet within the current market (Almost regained the al that was lost 2 years ago, Houseing is almost regained those losses) what a house sells for in Jafaland is almost below replacement cost. 1 reason why there are so few housing permits being issued why would a builder construct a house and struggle to sell it for any gain?
      Also there is very little land development occurring due land devaluations that then continues with the lack of willingness from Banks to fund (Not John Banks).
      http://www.interest.co.nz/news/second-lowest-june-year-level-building-consents

  16. Jum 16

    captcha: cycles

    Well all I can say is welcome back with the little people, Bernard. I do remember you taking Key to task a year or so ago when he intending proceeding with the tax cuts for those who didn’t need them and borrowing to do it. Even back then you were ‘waking’ to the Kraken.

    What concerns me is the fact that these very people are ruling over us or, in your case, influencing us and a majority of ‘us’ thought they/you deserved to be representing us.

    I guess the mathematical formula for meaningless elections is: Stupid gets voted in by even more stupid…or is it ‘by stupider’? The fact that we are the stupidest people in the world is because ‘we’ chose a moneytrader while others were trying to get rid of theirs – frightening really.

    If Key was such a good moneytrader with all the right connections to the very finance houses that would spill their poison around the world he would have known about the sub-prime crisis approaching like an iceberg. But, he didn’t warn us. On the other hand, if he was no good, why is he in control of our country? His so-called expertise got him in.

    The conspiracy theorists would have thought ‘how convenient; recession on the horizon caused by men’s greed and a nauseatingly-nice youngish rich white man with financial wheeler dealer engraved on his forehead, appears on the political scene just long enough to manipulate himself into Helensville; even the name of his electorate sounded Labour-lite. Key, manufactured in America, Lord Ashcroft advised from England, Crosby and Textored from Australia and poof: a man who would be pm’.

    But I mustn’t get too comfortable. You’re hardly rejecting Key; you’re just noting his softly, softly approach until next year if he gets in with the help of the current media influences he pays or who believe in him as the new messiah. Trouble is, Bernard, people can’t seem to trust in themselves; they seem to need someone else to think for them. Strangely enough too, economists never acknowledge the chaos theory that is within the human condition in their financial equations. Middlemen are always dangerous, aren’t they Bernard, especially when they’re mellowing, at least in public.

    Typing from Maui’s Titanic

  17. Kleefer 17

    Bernard Hickey is an economically illiterate fool. He has never been a friend of the free market and is too ignorant to understand that the problems the world’s economy is experiencing are not due to the free market (let’s not pretend we’ve ever had one) but rather the result of constant government meddling in the money supply through central banks.

    Central planners like Hickey and this site’s readers suffer from “I know best” syndrome. When the economy doesn’t work the way you think it should you always call for more (government) planning. But the real planning is done in the marketplace by entrepreneurs who try to anticipate human wants and provide for them. The price system sends “signals” that reflect the value humans place on various means of achieving their diverse ends, as well as the availability of these means now and and their anticipated availability in the future. The profit and loss mechanism informs market participants whether to continue providing a particular product or service or to redirect resources elsewhere.

    The interest rate should be like everything else in the price system, determined by supply and demand, in this case reflecting the extent to which people want to consume resources now or save them for future use. However, according to Austrian Business Cycle Theory, manipulation of the money supply through inflation and artificially low interest rates creates “malinvestment” because it distorts the all-important price signals that tell entrepreneurs whether a particular investment is likely to be a profitable one.

    Certain sectors (real estate, financial services etc) that benefit most from the injection of new money become bloated and bid workers away from other, more profitable sectors. When the money-go-round stops the investors in these sectors find out that the demand was artificial because the low interest rates didn’t reflect the availability of real (saved) resources. Loss-making businesses need to be liquidated and their workers allowed to move to more productive jobs.

    New Zealand, and the rest of the world, needs to get money out of the hands of politicians and let it reflect supply and demand like everything else. Free banking with competing bank-issued currencies backed by precious metals (determined by market preference) would render the carry trade and all those other government-created arbitrage opportunities irrelevant. Or we could do what Hickey suggests and fix the New Zealand dollar at a particular price. But how would the government decide what price is optimal? Who would that benefit? And who would get screwed?

    • Pascal's bookie 17.1

      Central planners like Hickey and this site’s readers suffer from “I know best” syndrome.

      From an Austrian, that really is some classic shit.

    • RedLogix 17.2

      And the fastest growing economy in the world? China.

      Has tight currency control. Assidiously manipulates it’s money supply.

      Has extensive central planning and intensive govt involvment in almost all industries.

      Rigid limits on overseas investment, especially land.

      An openly nationalistic economic agenda.

      None of which work according the economic wizard commenting above.

      • comedy 17.2.1

        You forgot

        A massive population
        No unions
        Fairly striking poverty outside of the “economic areas”
        Little to no regard for the environment
        No minimum wage

        etc etc etc etc

        For all its bad bits and good bits it ain’t somewhere I’d like to live, every time I go up there I’m ecstatic to get the hell out after a week… although I feel the same way about the US as well.

        • RedLogix 17.2.1.1

          None of those things you mention were being argued for by keefer.

          Large population…so does the US

          No unions…pretty much gone in the US

          Poverty …42m Americans on foodstamps. And over 22% real unemployment and the US economy is stalled. (Except of course for the billionare elite who are better off than ever.)

          No minimum wage…well you have me there. That must be the secret to being the fastest growing economy in the world.

  18. jcuknz 18

    >>>I can’t understand why selling our assets would ever be seen as a good idea. Especially strategic assets that we can’t afford to lose. We just end up paying profits that disappear offshore <<<
    This has been obvious to me for decades even though I'm just one of the peasants, why cannot the brainy types work it out?

  19. come get some 19

    because they’re the ones that make the money selling those assets

  20. Jum 20

    It’s a bit like building more roads the more cars will come. The ‘brainy types’ are more greedy than they are brainy. They always see the light when they’ve made their pile of gold; got their cosy job in parliament – Paula the name is – and there’s a lot of money to be made from vehicles. Trains are for people – cars are for government coffers. The brainy/GREEDY types are stateless and will follow the money. Don’t imagine they are here to help us. Anyone who thinks trains are bad fits into the greedy bin.

  21. The Hickey family including Bernard are family friends so its good to see Bernard has seen the light at last. Welcome back home to Cambridge Bernard all is forgiven!!

Links to post

Recent Comments

Recent Posts

  • New Zealand First calls for tahr cull halt
    Mark Patterson MP, Spokesperson for Primary Industry New Zealand First is supporting calls by hunters and the New Zealand Tahr Foundation (NZTF) to halt a large scale cull of Himalayan Tahr by the Department of Conservation in National Parks. The calls are supported by a 40,000 strong petition and the ...
    4 days ago
  • Response to Spin-off allegations
    Rt Hon Winston Peters, Leader of New Zealand First New Zealand First leader Winston Peters today scoffed at suggestions that a team of six political operatives have been dispatched to New Zealand to assist his campaign. ‘As President Ronald Reagan once said, ‘there they go again.’ ‘The clickbait journos can’t ...
    4 days ago
  • Jenny Marcroft MP to represent New Zealand First in Auckland Central
    New Zealand First is pleased to announce Jenny Marcroft as the party’s election 2020 candidate for the Auckland Central electorate. Jenny spent years working in Auckland Central, having spent a vast proportion of her broadcasting career there. She says she, "knows the place and knows the people." Ms Marcroft says ...
    5 days ago
  • Creating jobs and cleaning up our rivers
    New Zealanders deserve healthy rivers and lakes that are safe to swim in - but they have been getting worse for decades. That's why, with our latest announcement, we're investing in projects that will help clean up our rivers and lakes and restore them to health, within a generation. ...
    6 days ago
  • Jacinda Ardern: 2020 Labour Congress Speech
    Jacinda Ardern's speech to the 2020 Labour Party Congress. ...
    6 days ago
  • Kelvin Davis: 2020 Labour Congress Speech
    Kelvin Davis' speech to the 2020 Labour Party Congress. ...
    6 days ago
  • Week That Was: Another week of major progress
    This week we moved into the second half of 2020 - and our Government delivered another week of big changes and major progress for New Zealanders. Read below for a wrap of the key things moments from the week - from extending paid parental leave, to making major investments in ...
    1 week ago
  • Green Party opposes RMA fast-track bill that cut corners on environmental safeguards and public cons...
    The Green Party has opposed the COVID-19 Recovery Fast-track Consenting Bill which shortcuts normal consenting processes under the Resource Management Act (RMA), reduces public participation and narrows environmental considerations. ...
    1 week ago
  • Site of new freight hub revealed
    Hon Shane Jones, Minister of Regional Economic Development A regional freight hub for the lower North Island will be built just northeast of Palmerston North, Regional Development Minister Shane Jones has announced. The Government is investing $40 million through the Provincial Growth Fund to designate and buy land and design ...
    1 week ago
  • Greens call for Guaranteed Minimum Income to alleviate skyrocketing debt with MSD
    Green Party Co-leader Marama Davidson is calling for the introduction of a Guaranteed Minimum Income to lift hundreds of thousands of people out of poverty and prevent more families entering into further debt with the Ministry of Social Development.  ...
    1 week ago
  • Winston Peters: Facts matter when taxpayer money is on the line
    There has been renewed focus on New Zealand First acting as a handbrake on the Government after our decision to not support Auckland light rail. We are a handbrake for bad ideas, that is true, but our track record since 2017 has seen New Zealand First constructively also serve as an ...
    1 week ago
  • Bill raising minimum residency requirement for NZ Super passes first reading
    Mark Patterson MP, New Zealand First List MP New Zealand First’s Fair Residency for Superannuation Bill passed its First Reading in Parliament today. The Bill makes a significant change to NZ Super by raising the minimum residency requirement from 10 to 20 years, after age 20. “Currently, a migrant of ...
    1 week ago
  • Harsher penalties for assaults on first responders one step closer
    Darroch Ball MP, Spokesperson for Law and Order A New Zealand First member’s bill in the name of Darroch Ball introducing a six-month minimum prison sentence for assaults on first responders has passed its second reading in Parliament. The new offence of "injuring a first responder or corrections officer with ...
    1 week ago
  • Criminal Cases Review Commission delivers Coalition promise
    Fletcher Tabuteau MP, Deputy Leader of New Zealand First New Zealand First welcomes the launch of the new Criminal Cases Review Commission, gifted with the name from Waikato-Tainui - Te Kāhui Tātari Ture, announced in Hamilton today by Justice Minister Andrew Little. “New Zealand First has long believed in and ...
    1 week ago
  • Greens welcome huge new investment in sustainable projects
    The Green Party is celebrating over $800m in new funding for green projects, which will get people into jobs while solving New Zealand’s long-term challenges. ...
    1 week ago
  • New Zealand First demands answers from Meridian Energy
    Mark Patterson MP, Spokesperson for Primary Industries New Zealand First is appalled that Meridian seems to have been unnecessarily spilling water from its dams to drive up its profits."While New Zealanders have been coming together in some of our darkest hours, we don’t expect power gentailers to waste water and ...
    2 weeks ago
  • Getting New Zealand moving again: June 2020
    We wrapped up the first half of 2020 with a busy month, taking additional steps to support New Zealanders as we continue with our economic recovery. We rolled out targeted packages to support key industries like tourism and construction, helped create jobs in the environmental and agriculture sectors, and set ...
    2 weeks ago
  • Māori union leader appointed to Infrastructure Commission board
    Hon Shane Jones, Minister for Infrastructure Infrastructure Minister Shane Jones has welcomed the appointment of Maurice Davis and his deep infrastructure and construction experience to the board of the Infrastructure Commission. Mr Davis (Ngāti Maniapoto), is the seventh and final appointment to the board led by former Reserve Bank Governor ...
    2 weeks ago
  • Click-bait journalism at its worst
    Rt Hon Winston Peters, Leader of New Zealand First New Zealand’s click bait journalism is taking a turn for the worse, with yet another example of sensationalist, wilful-misrepresentation of the facts. “New Zealand First has worked constructively with its Coalition partner on hundreds of pieces of legislation and policy, and ...
    2 weeks ago
  • Green Party proposes transformational Poverty Action Plan
    The Green Party is today unveiling its Poverty Action Plan, which includes a Guaranteed Minimum Income to ensure people have enough to live with dignity.     ...
    2 weeks ago
  • PGF accelerates Rotorua projects
    Rt Hon Winston Peters, Deputy Prime Minister Fletcher Tabuteau MP, Under-Secretary for Regional Economic Development The Rotorua Museum redevelopment and Whakarewarewa and Tokorangi Forest projects will be accelerated thanks to a $2.09 million Provincial Growth Fund (PGF) boost, Deputy Prime Minister Winston Peters and Under-Secretary for Regional Economic Development Fletcher ...
    2 weeks ago
  • Week That Was: Getting people into jobs
    This week, we rolled out the next steps of our recovery plan, with new infrastructure investment, extra support for tourism operators, and a new programme to get Kiwis into agriculture careers. The global economic consequences of COVID-19 will continue to be a challenge, but we have a detailed plan to ...
    2 weeks ago
  • Coalition commitment establishing Mental Health Commission delivered
    Jenny Marcroft MP, Spokesperson for Health New Zealand First welcomes the passage of the Mental Health and Wellbeing Commission Bill through its final reading in Parliament today fulfilling a coalition agreement commitment. “This is an important step in saving the lives of New Zealanders and delivers a key coalition commitment ...
    2 weeks ago
  • Whakatāne gets a $2.5m ‘turbo boost’
    Whakatāne has been given a $2.5 million boost to speed up previously funded projects and create more than 450 jobs in the next decade. Of those, the equivalent of 160 full-time jobs could be delivered in the next six weeks. Deputy Prime Minister Winston Peters is in town to make ...
    2 weeks ago
  • $2.5m PGF funding to speed up economic recovery in Whakatāne
    Rt Hon Winston Peters, Deputy Prime Minister Fletcher Tabuteau MP, Under-Secretary for Regional Economic Development The Provincial Growth Fund (PGF) is investing $2.5 million to accelerate three infrastructure projects in Whakatāne, Deputy Prime Minister Winston Peters and Under-Secretary for Regional Economic Development Fletcher Tabuteau announced today. “This package is about ...
    2 weeks ago
  • Shane Jones calls out those holding drought-stricken Auckland ‘to ransom’ over water
    Infrastructure Minister Shane Jones is throwing his weight behind a bid by the Auckland Council to fast-track the more than doubling of the city's water allowance from the Waikato River. And he's coming out strongly against anyone who plans on getting in the way of this campaign. "It is my ...
    2 weeks ago
  • Another Green win as climate change considerations inserted into the RMA
    The Green Party is thrilled to see changes to the Resource Management Act (RMA) that mean consents for large projects can be declined if they will have significant climate change implications that are inconsistent with the Zero Carbon Act and Aotearoa New Zealand’s Paris Agreement obligations.  ...
    2 weeks ago
  • New Navy vessel Aotearoa to arrive in New Zealand
    Hon Ron Mark, Minister of Defence The Royal New Zealand Navy’s new ship, Aotearoa, set sail for New Zealand on 10 June from the Republic of Korea, and is due to arrive in Auckland tomorrow, announced Minister of Defence Ron Mark. “Aotearoa is the Royal New Zealand Navy’s new fleet ...
    2 weeks ago
  • Racing Industry Bill passes third reading
    Rt Hon Winston Peters, Deputy Prime Minister, Minister for Racing Racing Minister Winston Peters has today welcomed the Racing Industry Bill passing its third reading, creating the legislative framework for revitalising the racing industry while limiting the need for future government intervention. “For too long our domestic racing industry has ...
    2 weeks ago
  • Green Party seek amendment to ensure all prisoners can vote
    The Green Party has today put forward an amendment to the Electoral (Registration of Sentenced Prisoners) Amendment Bill to ensure all people in prisons can vote in general elections. ...
    2 weeks ago
  • Green Party welcomes new approach to delivering light rail
    The Green Party welcomes the decision to not proceed with Public Public Investment (PPI) delivery of Auckland’s light rail project and to instead run the process through the public service. ...
    2 weeks ago
  • New Zealand First welcomes PGF investment in Wairarapa Water
    Hon Ron Mark, New Zealand First List MP based in the Wairarapa New Zealand First List MP Hon Ron Mark welcomes the announcement of Provincial Growth Funding investment of $1.4 million to help secure the Wairarapa’s water supply. The funding boost will allow the Greater Wellington Regional Council (GWRC), and ...
    3 weeks ago
  • New Zealand First MP Mark Patterson selected as candidate for Taieri
    New Zealand First list MP Mark Patterson has been selected to represent the party in the newly formed Taieri electorate at the upcoming election. Mr Patterson, his wife Jude and two daughters farm sheep and beef at Lawrence and Waitahuna. He previously stood in the Clutha-Southland electorate however boundary changes ...
    3 weeks ago
  • Ground-breaking on NZ Post depot
    Hon Shane Jones, Associate Minister for State Owned Enterprises A new ‘super depot’ to be built for NZ Post in Wellington will create around 350 jobs during construction, Associate Minister for State Owned Enterprises Shane Jones says. Shane Jones today attended a ground-breaking and blessing ceremony for the parcel-processing depot ...
    3 weeks ago
  • Week That Was: Putting our economic plan into action
    Our strong economic management prior to COVID-19 - with surpluses, low debt and near-record-low unemployment - put us in a good position to weather the impact of the virus and start to rebuild our economy much earlier than many other countries. Now we're putting our plan to recover and rebuild ...
    3 weeks ago
  • Fleeing drivers hit new record-high yet again
    Darroch Ball MP, New Zealand First Spokesperson for Law and Order Recently released Police fleeing driver statistics have shown yet another increase in incidents with another record-high in the latest quarter. “This new quarterly record-high is the latest in a string of record-high numbers since 2014.  The data shows incidents ...
    3 weeks ago

  • New support package for wildlife institutions
    Wildlife institutions affected by a loss of visitor revenue during the COVID-19 lockdown are set to receive government support with nearly $15 million of funding available announced Minister of Conservation Eugenie Sage.  “Eco-sanctuaries, zoos, aquariums, wildlife parks, and wildlife rescue, hospital and rehabilitation facilities provide crucial support for the recovery ...
    BeehiveBy beehive.govt.nz
    1 hour ago
  • 300,000 students to benefit from free mental health services
    The Government is expanding and accelerating frontline mental health and wellbeing services at tertiary education institutes (TEI) to help students manage ongoing stresses related to COVID-19. “The lockdown has been hugely disruptive for students. Many of them have had to relocate and move to online learning, isolating them from their ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Gang crime, meth harm targeted in Waikato
    The Minister of Police says a major operation against the Mongrel Mob in Waikato will make a big dent in drug harm and violent offending linked to organised crime networks. “Senior leadership of the Waikato Mongrel Mob has been taken out as a result of Operation Kingsville, which resulted in ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Supporting victims and families to attend mosque attack sentencing
    The Government is extending the border exception criteria to enable some offshore victims and support people of the Christchurch mosque attacks to attend the sentencing of the accused beginning on 24 August2020, says Immigration Minister Iain Lees-Galloway. “We want to support our valued Muslim brothers and sisters who were directly ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Boost for community freshwater restoration projects
    A project to support volunteer efforts to look after streams and rivers is getting a boost thanks to support from DOC’s Community Conservation Fund announced Minister of Conservation Eugenie Sage today.  “The government is backing efforts to look after waterways with $199,400 for the Mountains to Sea Conservation Trust from ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • More support for women and girls
    Minister for Women Julie Anne Genter today announced that funding for the COVID-19 Community Fund for women and girls will be doubled, as the first successful funding applications for the initial $1million were revealed. “Women and girls across the country have suffered because of the effects of COVID-19, and I ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Crown accounts stronger than forecast with higher consumer spending
    The Government’s books were better than forecast with a higher GST take as the economy got moving again after lockdown, Finance Minister Grant Robertson says. The Crown Accounts for the 11 months to the end of May indicate the year end results for tax revenue will be stronger than forecast. ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Govt releases plan to revitalise wool sector
    A plan to revitalise New Zealand’s strong wool sector and set it on a new, more sustainable and profitable path was unveiled today by Agriculture Minister Damien O’Connor. The newly-released report - Vision and Action for New Zealand’s Wool Sector - was developed by the Wool Industry Project Action Group ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Funding for Predator Free Whangārei
    Community efforts to create a Predator Free Whangārei will receive a $6 million boost, Regional Economic Development Minister Shane Jones and Conservation Minister Eugenie Sage announced today. The new funding, through Government company Predator Free 2050 Ltd, will create around 12 jobs while enabling the complete removal of possums over ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealand to review relationship settings with Hong Kong
    Foreign Affairs Minister Winston Peters has announced that the New Zealand Government is reviewing the settings of its relationship with Hong Kong. “China’s decision to pass a new national security law for Hong Kong has fundamentally changed the environment for international engagement there,” Mr Peters said. “New Zealand remains deeply ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Funding for Whangārei’s infrastructure projects revealed
    Regional Economic Development Minister Shane Jones has announced details of a multimillion-dollar investment in Whangārei for infrastructure projects that will help it recover from the economic fallout from the COVID-19 pandemic. More than 200 jobs are expected to be created through the $26 million investment from the Government’s rejuvenation package ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Managed isolation and quarantine update
    Following a second incident in which a person escaped from a managed isolation facility, security is being enhanced, including more police presence onsite, Minister Megan Woods said. “The actions of some individuals who choose to break the very clear rules to stay within the facilities means that more resourcing is ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Funding for Kaipara district community waste programmes
    Waste reduction and recycling programmes in Kaipara are set to get a boost with Associate Environment Minister Eugenie Sage today announcing a $361,447 grant from the Ministry for the Environment’s Waste Minimisation Fund (WMF) Sustainable Kaipara. “The new funding will allow Sustainable Kaipara to partner with local schools, kura, community ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government will support the people and economy of Southland
    The Government will support the Southland economy in the wake of multinational mining company Rio Tinto’s decision to follow through with its long signalled closure of the Tiwai Point aluminium smelter. “This day has unfortunately been on the cards for some time now, but nevertheless the final decision is a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New transformational tools for the Predator Free 2050 effort
    New tools being developed to help boost Aotearoa’s Predator Free 2050 effort were unveiled today by Minister of Conservation Eugenie Sage and Under Secretary for Regional Economic Development Fletcher Tabuteau. A new rat poison, a camera with predator recognition software to detect and report predators, a new predator lure and a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Armoured vehicles for New Zealand Army
    The Coalition Government has approved the purchase of a fleet of Bushmaster vehicles to replace the New Zealand Army’s armoured Pinzgauers, Defence Minister Ron Mark has announced today. The new fleet of 43 Australian-designed and built Bushmaster NZ5.5 will provide better protection for personnel and improved carrying capacity. “The age ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Community-led solutions to prevent family violence
    The Government’s three prevention frameworks to reduce family violence in Aotearoa were launched this week by Associate Minister for Social Development Poto Williams.   The frameworks were developed in partnership with communities around New Zealand, and build on the work the Government has already begun with its new family violence prevention ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt confirms investment in better radiology and surgical services for Hawke’s Bay
    The Government is pleased to confirm funding for improvements to radiology and surgical services at Hawke's Bay DHB, Health Minister Chris Hipkins says.     "The Minister of Finance the Hon Grant Robertson and former Health Minister Dr David Clark approved funding for Hawke's Bay DHB’s redevelopment of their radiology facilities ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Specialist alcohol and drug addiction services strengthened across New Zealand
    •    New funding for four beds at Napier’s Springhill Residential Addiction Centre •    A new managed withdrawal home and community service, and peer support before and after residential care at Tairāwhiti DHB  •    A co-ordinated network of withdrawal management services throughout the South Island •    Peer support in Rotorua and ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Coastal Shipping Webinar
    Introduction, seafarers and POAL Good morning everyone, I am delighted to be online with you all today. Before I begin, I have to acknowledge that COVID-19 has disrupted the maritime sector on an unprecedented scale. The work of seafarers and the maritime industry is keeping many economies around the world ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Support for resilient rail connection to the West Coast
    A $13 million investment from Government will create jobs and improve the resilience of the rail connection between Christchurch and the West Coast, Infrastructure Minister Shane Jones and Regional Economic Development Under-Secretary Fletcher Tabuteau say. The funding comes from the tagged contingency set aside in Budget 2020 for infrastructure projects ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Major investment in safe drinking water
    The Government is investing $761 million to assist local government upgrade under-pressure water services across the country, Prime Minister Jacinda Ardern and Local Government Minister Nanaia Mahuta announced today.  The announcement was made at the site of the water bore that was found to be the source of the fatal ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Supporting stranded seasonal workers to keep working with more flexible options
    Recognised Seasonal Employers and migrant seasonal workers stranded in New Zealand will be able to continue working and supporting themselves with more flexible hours and roles, says Immigration Minister Iain Lees-Galloway. The time-limited visa changes are: Stranded RSE workers will be able to work part-time (a minimum of 15 hours ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Relief for temporary migrants, employers and New Zealanders who need work
    The Government is making immediate short-term changes to visa settings to support temporary migrants already onshore in New Zealand and their employers, while also ensuring New Zealanders needing work are prioritised, Immigration Minister Iain Lees-Galloway says. We are: Extending temporary work visas due to expire by the end of 2020 ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Freshwater commissioners and fast-track consenting convenor appointed
    Professor Peter Skelton CNZM has been appointed as Chief Freshwater Commissioner and Alternate Environment Court Judge Craig James Thompson as Deputy Chief Freshwater Commissioner for the newly established Freshwater Planning Process (FPP). Environment Minister David Parker today also announced the appointment of Chief Environment Court Judge Laurie Newhook as the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Appointment of Judge of the High Court
    Auckland Queen’s Counsel Neil Campbell has been appointed a Judge of the High Court, Attorney‑General David Parker announced today. Justice Campbell graduated with a BCom and LLB (Hons) from the University of Auckland in 1992. He spent two years with Bell Gully Buddle Weir in Auckland before travelling to the United ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Feedback sought – Commercial Film and Video Production Facilities
    The Associate Minister for Greater Christchurch Regeneration, Poto Williams, is seeking feedback on a proposal to better enable the development and operation of commercial film and video facilities in Christchurch. The Proposal, developed by Regenerate Christchurch in response to a request from Christchurch City Council, asks that powers under section ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Govt launches bold primary sector plan to boost economic recovery
    The Government has launched a bold plan to boost primary sector export earnings by $44 billion over the next decade, while protecting the environment and growing jobs. Prime Minister Jacinda Ardern today released Fit for a Better World – Accelerating our Economic Potential, a 10-year roadmap to unlock greater value ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Wellbeing of whanau at heart of new hub
    A new approach to prevent family harm that encourages greater collaboration across government and community groups is being celebrated at the opening of a new facility in Auckland. Prime Minister Jacinda Ardern today opened the Multi-Disciplinary Family Harm Prevention Hub Te Taanga Manawa in Lambie Road in Manukau. The facility ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Report on Auckland Port Relocation
    The Government has released a major new report on the options for relocating the Port of Auckland’s freight operations while deferring any decision on the issue. “That decision needs to be informed by policy analysis that is still to be completed. As a result it will be up to a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Dual place names for Te Pātaka-o-Rākaihautū / Banks Peninsula features
    The history of Rāpaki is being restored through the inclusion of te reo in thirteen official place names on Te Pātaka-o-Rākaihautū / Banks Peninsula and around Lyttelton Harbour/Whakaraupō, the Minister for Land Information, Eugenie Sage, announced today.   “I am pleased to approve the proposals from Te Hapū o Ngāti ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government and Air New Zealand agree to manage incoming bookings
    Bookings for seats on Air New Zealand flights into New Zealand will be managed in the short term to ensure the Government is able to safely place New Zealanders arriving home into a managed isolation or quarantine facility, says Housing Minister Megan Woods.  “Last week Air Commodore Darryn Webb and I ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • $80 million for sport recovery at all levels
    Grant Robertson has today announced the first major release of funding from the $265 million Sport Recovery Package announced at Budget 2020.  “Today we’re setting out how $80 million will be invested, with $54 million of that over the 2020/2021 financial year for organisations from community level through to elite ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Keeping ACC levies steady until 2022
    The Government is maintaining current levy rates for the next 2 years, as part of a set of changes to help ease the financial pressures of COVID-19 providing certainty for businesses and New Zealanders, ACC Minister Iain Lees-Galloway says. “New Zealanders and businesses are facing unprecedented financial pressures as a ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Extended loan scheme keeps business afloat
    Small businesses are getting greater certainty about access to finance with an extension to the interest-free cashflow loan scheme to the end of the year. The Small Business Cashflow Loan Scheme has already been extended once, to 24 July. Revenue and Small Business Minister Stuart Nash says it will be ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New investment creates over 2000 jobs to clean up waterways
    A package of 23 projects across the country will clean up waterways and deliver over 2000 jobs Prime Minister Jacinda Ardern and Environment Minister David Parker announced today. The $162 million dollar package will see 22 water clean-up projects put forward by local councils receiving $62 million and the Kaipara ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to Labour Party Congress 2020
    Tena koutou katoa  Nga tangata whenua o tenei rohe o Pōneke, tena koutou Nau mai, haere mai ki te hui a tau mo te roopu reipa Ko tatou!  Ko to tatou mana!  Ko to tatou kaupapa kei te kokiri whakamua  Tena koutou, tena koutou, tena tatou katoa   Welcome. I ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • PGF top-up for QE Health in Rotorua
    The Provincial Growth Fund (PGF) is investing $1.5 million to ensure QE Health in Rotorua can proceed with its world class health service and save 75 existing jobs, Under Secretary for Regional Economic Development, Fletcher Tabuteau announced today. The PGF funding announced today is in addition to the $8 million ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Building a more sustainable construction sector
    A new programme, which sets a firm course for the Building and Construction sector to help reduce greenhouse gas emissions, has been announced by the Minister for Building and Construction Jenny Salesa. “A significant amount of New Zealand’s carbon emissions come from the building and construction sector.  If we’re serious ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • PGF funds tourism boost in Northland
    The Provincial Growth Fund is investing more than $7.5 million in Northland ventures to combat the economic impact of the COVID-19 virus, Deputy Prime Minister Winston Peters and Regional Economic Development Minister Shane Jones have announced. The Provincial Growth Fund (PGF) investment is going to the Northern Adventure Experience and ...
    BeehiveBy beehive.govt.nz
    1 week ago