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Housing bubble inflating faster – Key’s panic now obvious

Written By: - Date published: 7:01 am, July 6th, 2016 - 157 comments
Categories: housing, john key, national, useless - Tags: , , ,

The housing bubble is inflating faster than ever:

Auckland’s average house price will hit $1 million by next year

Quotable Value figures issued figures for the last three months, showing prices were rising at their fastest rate since 2004.

Auckland house values shot up 4.7 per cent in the last three months and 16.1 per cent since last June, reaching a new average of $975,087.

And the driving force behind this frenzied rise?

Investors were also hungry for more properties too, she [Andrea Rush, QV national spokesperson] indicated. “The latest CoreLogic buyer classification data has show that the share of sales to investors has gone from 37 per cent in 2012 and it’s up now to 46 per cent of investors,” she said.

Those investors appeared to be buying in advance of further Reserve Bank crackdowns, she indicated. “Investors are trying to get in as conditions are currently,” Rush said.

If prices stay this high (or keep going up) it’s a disaster for National. If the bubble bursts and prices come down it’s a disaster for National. Key is between a rock and hard place, and his panic is now obvious:

Whiff of crisis in the air as Key calls for central bank help over housing

House prices are rising faster than the Government wants. Not just in Auckland. Almost everywhere but Christchurch. … Scatter gun initiatives have been coming at the rate of about one a week for months now, the latest being a $1 billion loan facility to help local government build new infrastructure. No sign yet, though, that ministers are ready to abandon their ideological bunker and directly fund some affordable private homes.

It was, he [Key] said, the “responsibility” of the Reserve Bank to look at extending the current loan to value ratios imposed on investors, which generally require them to stump up a 30 per cent deposit in Auckland. Should LVR restrictions be extended across the country or lifted above 30 per cent for investors? Key said “yes”. And not just sometime. If not Thursday, then at least sometime soon.

The Government may not be ready to admit there is a crisis in the housing market, but it sure looks like a crisis in its own ranks.

It is all looking very messy. Panicky in fact.

Yes, Key is now actively begging the Reserve Bank to do his job for him.

The political problem for Key is that the Nats are simply unable to take the actions required to actually address the crisis. They are ideologically opposed to some (significant curbs on speculators, capital gains tax) and appear to be simply incapable of others (build some damn houses!). The electoral problem for Key is that Labour are going to offer what the country needs – stay tuned this weekend.

157 comments on “Housing bubble inflating faster – Key’s panic now obvious”

  1. vto 1

    Key’s housing problem is also each of our own personal problem as when this all ends the shit that will get thrown by the now very large fan will cover everybody… everybody

    • yep good point – a lot of poo will spray at a great rate of knots from Auckland and everywhere in this country will be affected. Internal refugees, foreclosures, desperation, increased homelessness and crime – and that is just the Auckland politicians!!!

    • mosa 1.2

      What concerns me is that that Key and his government arent acting in the interests of our country by allowing this massive housing calamity to unfold because it will be a massive correction like the GFC and the 1987 stockmarket crash that had a devastating effect on our economy and took years too recover and this has the prospect too hurt every sector of the economy, i mean lets face it the only growth in the economy after immigration is the value of realestate and thats a serious failure on the part of this government who have been in office for 8 years and have NOT acted in solving and fixing this major threat to the people who keep them in office and all the others who dont.
      This event when it happens under Keys watch will be the real legacy he leaves behind.
      All his bullshit and lies and deceptions will be seen for what they are a massive disaster for New Zealanders.

      • Pat 1.2.1

        not strictly true…there is one other area of significant growth apart from immigration and property values…..tourism, with its low paid, low value returns.

  2. Craig H 2

    Crisis? What crisis? National Party members are creaming it!

    • Molly 2.1

      I have an acquaintance who used to teach someone currently in John Key’s research unit.

      According to them, the housing issue is one that Key has been happy to ignore because many of his voting constituency are those that are benefitting, and the housing market masks a downturn in the economy. It also attracts overseas investors to NZ kicking the ball further down the road.

      As the post mentions, now even some of those constituents are getting concerned, the ideological view of the National Party makes them discount effective measures:
      building state houses, restricting residential sales to NZ residents/citizens, charging higher rates on rentals, implementing an effective land tax on undeveloped residential land, and effective capital gains tax.

      • Colonial Viper 2.1.1

        They will be looking hard at some tougher measures now, going into election year. This issue is big enough now that they will leave nothing off the table for (internal) discussion.

        • Molly 2.1.1.1

          Yes, more than likely.

          They will be looking to create policy that is the equivalent of lambs dressed up in wolf’s clothing.

  3. Fustercluck 3

    The 0.01%, internationally and domestically, need safe haven for their cash. Real estate in stable western democracies is superb for this purpose. Form many internationals a burst bubble and large decline in process is just fine when compared with risks associated with hyperinflation, nationalization of assets, etc, that exist in their home countries. The sharp inflation of prices (as opposed to value) will continue until that safe haven aspect is dealt with. Even 10% of the market being driven by these types is enough to wildly push the market and we are obviously well past that.

    Solution?

    1. Restrict purchase of real estate to citizens & permanent residents.
    2. Require 50% down payment from investors owning more than two properties (the classic quarter acre home plus a bach for which NZ is so nostalgic).
    3. Capital gains tax on all commercial property, residential income property of more than four units, and any property held in addition to the two mentioned above.
    4. Capital gains tax on ANY flipped property, i.e., sold in less than 24 months absent a documented reason for the sale (job change, family change, etc. The IRD can easily test for this).
    5. If the above does not do it, prohibit ownership (apart from the 1/4 acre and bach) of any dwelling that is not occupied by owner or documented tenant for at least 6 months out of each year.

    • dv 3.1

      OMG you WANT a joined up plan!!!

      I would add

      Add a tax of 1-2% to the interest on loans in the special housing areas.
      a transaction tax of the same size a cc transaction charge for investors.
      10 year s for flipped properties, but on a sliding scale.
      Allow councils to issue development bonds.

      • Fustercluck 3.1.1

        Yes to that (as a part of a joined up plan!).

        • Colonial Viper 3.1.1.1

          “Joined up plan” – this is a simple concept from the 1940s and 1950s that NZ needs to re-adopt.

      • Molly 3.1.2

        Overseas – including London – there are taxes to be paid on council re-zoned properties.

        Called a capital uplift tax, it taxes the property owners who have just been given a boost to the equity by the council processes – which is otherwise a straight out “gift”. This tax is paid when the land is either developed or sold.

        I have only seen this referred to in the Unitary Plan discussions once, and that was because I happened to pick up a hard-copy of a document when I attended a meeting. When I returned home, I could not find an online copy, and never heard it discussed or mentioned again.

        A couple of months later – at a Q & A session – I asked John Duguid (the Planner in charge of the Unitary Plan) whether it was being considered. A short but succinct answer that it had been discounted, showed the reluctance to even contemplate such a view.

        Given that development contributions have been limited by National, and the remainder of infrastructure costs need to be picked up by council (ie. ratepayers), we have not only provided all developers with a subsidy for development of sometimes inappropriate land, but rezoning has given them a tax-free equity boost.

        SHA’s also fall into this category.

    • save nz 3.2

      I agree with Flustercluck, as it allows Kiwis to live the middle NZ dream, have a bach, a property as an investment (I know many people are against this but unless you want to rely on the state at retirement, the investment options for Kiwis are poor to non existent).

      But would like some sort of transaction tax on shares and maybe stamp duty on registered property developers who are building apartments and commercial developments (maybe more than 5 units say). (As they are sold the DEVELOPER pays a stamp duty). So those that are building apartments with foreign money in particular have to stump up a percentage as they sell the apartment or development i.e. if they have a 5 million dollar apartment/commercial unit they pay say 2% stamp duty so it is $100,000 to the government per unit.

      Also all non residents should have to pay a stamp duty on property purchase.

      They get rid of 0% offshore tax havens here. In my view that is what seems to have pushed the property up the most.

      I am against capital gains, as most of the rich and foreigners will avoid paying it through legal tax avoidance so it would be a mockery when middle NZ tax payers are the only one paying it. Capital gains worked in the 20th century before globalism – now the idea should be to get the tax at the beginning (i.e. purchase) because we now consistently have the super rich not even on the top tax rates.

      The government also have to stop more migrants becoming permanent residents apart from in exceptional cases. It is a sick joke than Kiwis live in tents and laid off workers are crushed to death as they try to keep warm in recycling bins, because of the governments migration policies that are losing us farm and agriculture worker jobs and making housing unaffordable. That is not the Kiwi way!

    • KJT 3.3

      Forgot building 10 000 sate houses a year and renting them out at reasonable cost.

      From printing money as we did in the 50’s. NOT by inflating the profits of foreign lenders.

  4. RedLogix 4

    There is a reason why small island economies like say Tonga do not allow land sales to non-citizens. It’s just blindly obvious to them that if they did the locals would be quickly sold out and alienated from their own land.

    New Zealand is a small island economy. It’s just that we are not as smart as the Tongans.

  5. Greg 5

    If in doubt quote the Bard,

    http://www.enotes.com/shakespeare-quotes/hoist-with-his-own-petard

    Key made a lot of promises when Im PM in various speeches between 2006-2008, he hasnt kept one them,

    anyone bored and want to do a list?

    Key has already sold his mansion in NZ:
    http://www.stuff.co.nz/national/politics/79063174/nz-open-to-chinese-investment-key-tells-chinas-business-bigwigs

  6. Nck 6

    99% of the comments on stuff were anti Key and pointed out the obvious mess Natz have created and maintained.

    • Rob 6.1

      But then it is quickly removed or comments shut when things don’t go the way stuff wanted.
      Look how quickly the article about speeding up land sales for Chinese by that dopey Louise minister went.

      • Yup 6.1.1

        Been seeing that all week on stuff, they put up a story and let people comment, but then remove the comment section within 15 minutes… Very strange.

  7. BM 7

    Market is about to crash, anybody buying now is a fool.

    • Fustercluck 7.1

      You are SO right.

      • BM 7.1.1

        Who is actually buying at these prices?

        The current LVR is 20%, I’m struggling to believe there’s tons of buyers who’ve got a spare 200k just lying around.

        I thought New Zealanders were notoriously bad savers yet have no problem stumping up with these massive deposits.

        • dv 7.1.1.1

          The current LVR is 20%, I’m struggling to believe there’s tons of buyers who’ve got a spare 200k just lying around.

          They have in equity, and it is ‘free’ equity because of the price growth.

          • BM 7.1.1.1.1

            So you reckon it’s Joe and Joanne public taking the equity out of one house and using it as a deposit to buy the next.?

            Any one still doing that must have shit for brains.

            • dv 7.1.1.1.1.1

              Not so much Joe and Joanne public , but those with more than one property.

            • Colonial Viper 7.1.1.1.1.2

              Yes there are still plenty of Kiwis around taking equity from one inflated Auckland property to buy the next (outside of Auckland) investment property. Auckland buyers have been very busy down here in Dunedin this year.

              Within Auckland itself I think even the local investor class is being priced out.

              Foreign money is pouring in however.

              That will rapidly reverse when GFC2 gains momentum.

              • BM

                Yes there are still plenty of Kiwis around taking equity from one inflated Auckland property to buy the next (outside of Auckland) investment property. Auckland buyers have been very busy down here in Dunedin this year.

                Hamilton house prices have risen 30% in the past year.

                To give you an example how silly it’s getting, last week 1970 brick 2 bedroom unit on a handkerchief sized section, brought by a Auckland grandmother for $550,000.

                • Colonial Viper

                  That sounds about right. I personally know Auckland buyers who bought in Hamilton and Wellington last month. Investments.

                  • BM

                    She payed well above what it’s worth, but by Auckland standards it’s good value.

                    Outside money distorting the market.

                    • Colonial Viper

                      International money distorting the Auckland market, and Auckland market distorting the smaller city markets.

                      Trickle down?

                  • Ben

                    Yes, but when the Auckland housing bubble bursts, the regions will follow suit with a reduction in demand and therefore prices. Not such a safe investment after all, but a cheaper one.

                    People using temporary equity to purchase in an over-inflated market are nuts. The banks facilitating this show poor judgement also.

                    • Colonial Viper

                      Agree 100% with your comments. Anyone with any sense would be looking to move the balance of their portfolio to cash. Not diving deeper into this over hot property market.

                      And the thing with most of the regions, including down here in Dunedin, is that the population is stagnant to decreasing. At least in Auckland, population growth and the economy continues to be strong (relative to the regions).

                • One Anonymous Bloke

                  All hail Market. There is no alternative, remember?

          • Muttonbird 7.1.1.1.2

            Massive lack of understanding from the troll there.

        • Sabine 7.1.1.2

          Not New Zealanders, or some NZ’lers that have parents who help with the deposit, or some NZ’lers that have a house and mortgage on that.

          You remember the young guy with his 8 mortgages (the herald said houses) at 25.

          but the rest, are not buying. So good question BM, who is buying all the houses in AKL, because someone is.

        • Bearded Git 7.1.1.3

          46% of Akl house buyers are investors-that is the number everyone should be looking at. When the bubble pops there are going to be some very naked people standing on the beach.

          It just needs a trigger-watch the Italian banks that are in big trouble, Deutsche Bank too, and China.

          http://www.zerohedge.com/news/2016-07-05/look-inside-europes-next-crisis-why-everyone-finally-panicking-about-italian-banks

        • Visubversa 7.1.1.4

          People who come here on a business residency and buy a couple of $2 Shops as the “business” part but have shedloads of dodgy cash to launder, do not care about deposit requirements or interest rates. They wil buy anything they think will at least hold its value. They will also build a big “show off” home for themselves (or rather, for those of their relatives who are still in NZ). Both these things push up the prices for everyone.

          • save nz 7.1.1.4.1

            +1 Visubversa

            There are massive immigration scams – not only that, some cultures have dowry on marriage, what better way to drive up the price of marriage than offering citizenship in another country for you and all the relatives.

            The issue is, that Kiwis are very naive they think everyone is like them and seem to have zero understanding of the rest of the world, how valuable citizenship in NZ is, and there are so many offshore and onshore middle men making a killing out of it all.

            It is so easy to scam immigration, it is so easy to fake documentation and Kiwis are just like Naive kids when it comes to processing it. Even people I know have changed medical certificates to get residency and citizenship, not to mention how easy it is to borrow money put in your bank account and withdraw it after you “prove” to immigration you have funds to support yourself.

            Citizen should be only linked to the person for 15 years or something like that. Not an open migration policy for marriage and family members who Kiwis then have to support through welfare system while some go between gets rich off it all.

            In addition the $2 shops are bakery and takeaways are bad in many ways. They drive up commercial rents so that young Kiwi can not afford to start a business, they make the cities look disjointed and ugly with odd shops springing up with cheap goods everywhere, and they increase cheap and nasty consumerism and environmental damage with all the packaging and plastics.

            Far from migration adding to diversity, it is doing the opposite in NZ making the high street the same, bland and uninteresting, with fast food and goods in the same franchises where ever you go.

            • Sabine 7.1.1.4.1.1

              I think that Kiwis know full well that they are being screwed over, it is just that a large part of Kiwis has no issues screwing over the rest of kiwis.
              That is something that needs to be acknowledged.
              The Kiwis of the National Party led Government know what they are doing, they just don’t care one fuck if you or i or anyone else for that matter ends up homeless or unemployed, in fact it would suit their business model of a desperate population putting up with shit to just not be homeless and jobless.

              • save nz

                I agree with you Sabine, but at least their is a limit on the amount of Kiwis screwing Kiwis and they are more likely to pay tax on it. I’m not ready to open up our doors to the global market of 7 billion citizens to screw each other over by saying Kiwis do it too. In NZ we do have a relatively fair and socially democratic society, this has been eroded over 8 years and National want to make it worse.

            • Anno1701 7.1.1.4.1.2

              “In addition the $2 shops are bakery and takeaways are bad in many ways”

              some of these are also money laundering operations

              how else do you think we have 6 ( ! ) 2$ shops all selling exactly the same tat in our local mall

              lots of small “cash” transactions and lots of non-perishable stock , perfect combination

              I know of one Auckland Chinese restaurant that has 2 eft-pos terminals, the one “under the counter” is produced when Chinese tourists arrive buy the busload with Chinese bank issued credit cards which are charged via VOIP directly to the HSBC in hong kong , this money never sees NZ, it goes straight offshore no tax paid

              im sure this is going on in MANY other businesses

    • vto 7.2

      Perhaps on the basis of previous bubbles BM… but this time I have doubts as the world is vastly different and the world economy so much more massive. I suspect different forces are at play in the world today and there is potential for this to roll for quite a number of years yet….

      What is not different though is the human character and at some point the sheep will all try and flee out the gate at the same time, no matter the difference above…

      • RedLogix 7.2.1

        Yes. What I see is a global 0.1% with almost unlimited funds to buy up New Zealand. All of it … at any price.

        Most of us just have no idea just how much money these people have, and how desperate they are to park it somewhere relatively safe. And Trader John just can’t drag himself away from the sight of it.

        • save nz 7.2.1.1

          +1 RedLogix – that is what all these forecasters don’t understand. The world is now beyond NZ. If you allow the world to buy you up, house prices rise as it is not limited to Kiwi wages.

          That is why Key put in the tax havens for foreigners – that is his plan, get tax avoiders and corrupt individuals close by and then lure them in to buy up assets here.

          Of course there are always ‘commissions, donations and bribes’ for organising all this and Yay, a handy tax haven to hide it in.

          Key may be looking panicked but I think the spotlight on the tax haven is more concerning for him, that the plight of the National party next election and it’s future post Key, and certainly not the plight of the Kiwi poor with affordable housing.

        • Draco T Bastard 7.2.1.2

          Most of us just have no idea just how much money these people have, and how desperate they are to park it somewhere relatively safe.

          Where it’s safe and they can get an income from it. Give them the time and they will buy up NZ turning the rest of us into renters and serfs.

    • KJT 7.3

      It won’t crash.

      National are well aware that if the housing market crashes they will lose the election.

      Meanwhile there are still another 10 billion people overseas, they can call on, willing to buy houses here if it shows any signs of dropping.

      • Dennis Frank 7.3.1

        Yes, I share your view. Immigration is an excellent way for the left to trash our country in collusion with the right: import people who are fed up with trashing their home countries so they can come here and do it all over again. Morons in all directions, as far as the eye can see…

  8. AmaKiwi 8

    @ Fustercluck

    Good list and I agree with most of what you’ve written EXCEPT:

    “The 0.01%, internationally and domestically, need safe haven for their cash. Real estate in stable western democracies is SUPERB for this purpose.”

    Wrong. In a depressed market you cannot quickly convert real estate into cash. It’s not always a “liquid” investment.

    In a depressed market owning real estate can become a nightmare when there are no buyers at any price. It happens frequently, even in “stable democracies.” Remember NZ after the 1987 share market crash and the USA post-2008.

    If/When this bubble bursts expect a real estate nightmare here.

    • Fustercluck 8.1

      I have been involved in real estate markets that had bubbles burst in a big way. You are correct about the loss of liquidity but that is always a temporary problem and the 0.01% have heaps of patience. Sure, a few who get caught out will get burned but the majority will just let their capital sit there, perhaps finally with tenants to defray costs, and ride out the bubble effects with their assets intact. It is the middle class, dependent on wages for income, that get killed by the loss of liquidity when life circumstances require the sale of a home at an inopportune moment in the boom-bust cycle that is the norm today.

      You are indeed correct. A real estate nightmare is coming!

      • BM 8.1.1

        If you look at these two websites the disconnect sticks out like dog balls

        https://www.qv.co.nz/resources/property-investment-rental-analysis.

        http://www.mortgagerates.co.nz/

        The yield is no where covering the mortgage payments and other outgoings.

        People are in the market purely for capital gain and if things start heading south, expect to see the amount of houses appearing for sale to sky rocket.

        There’s going to be such a blood bath once the market turns.

        • Molly 8.1.1.1

          Don’t forget BM, that some are in a position to buy with cash and/or use overseas banks rates to purchase property in NZ.

        • KJT 8.1.1.2

          When you sell a house on the coast in Holland, Singapore, England or Spain, our houses are dirt cheap.

        • KJT 8.1.1.3

          In Europe and Japan at the moment the return on cash in the bank is negative.

          Housing, which will always recover if you have enough patience, especially in places like New Zealand, looks very good in comparison.

          Note: Where there has been a housing crash, like Britain, those who could afford to hang on have had their investment regain its value plus some more.

          Unlike share market investment where an individual company, once crashed, rarely recovers.

    • save nz 8.2

      @ AmaKiwi the property bubble can not burst if 67,000 people are coming into NZ. We have positive migration and new money arriving daily.

      So if the opposition get in, or National see sense, they need to carefully turn off the tap to avoid a crash. (They should have started tightening 5 years ago!)

      • Fustercluck 8.2.1

        Yes, but how many of those 67,000 can afford a $1m house in Auckland? I’ll bet that it is far from a majority of migrants that can do that. They are more likely to put pressure on rental prices than be able to compete with investors holding mountains of dead capital.

        • save nz 8.2.1.1

          @ Flustercluck – you have a point, but that is the problem, people are buying property but with our low wages you have to leave or have multiple jobs to pay the mortgage.

          The joke is that the government expects Auckland ratepayers or tax payers to pay $125,000 per new house for the new people they are welcoming in. We didn’t use to have this problem of a housing shortage, the crisis was created!

          Then the councils will borrow the money and have to sell off more assets.

          It crazy.

          We can’t afford it!

          It is anti business, who borrows $125,000, puts their own citizens out to be homeless to make way for a ‘restaurant manager or farm worker’ to come here when we have high unemployment?

        • b waghorn 8.2.1.2

          i don’t know how many can afford it but i know one expat looking to come home that brought in melbourne for $550k not sure when) the identical house next door just sold for $1.5 mill.
          I’m picking they are not the only ones.

      • KJT 8.2.2

        Only have to “invest” a million in a house, to get residency.

        • Stuart Munro 8.2.2.1

          Yup – a government that gave a shit would’ve stipulated employing a number of NZ staff or exporting products of a minimum value. Too much for the Gnats – they want to get rich for sitting on their arses, not running anything properly.

      • Dennis Frank 8.2.3

        Correct. Both wings of the establishment are proven slow-learners. The bubble will not subside unless the supply-side lever is pulled back, and the pressure on the upward movement of prices then eases.

    • dave 8.3

      its after the bubble pops i fear as one commentator pointed out in 1987 stock market popped the only people wiped out were the share investors when and i will use the word when ,not if . due to over leveraged mibble classes who have used there homes as atms this time a crash will take out the whole economy the prospect of thousands of consumers effectively in insolvency is something NZ small economy couldn’t adsorb, i cant see how it can be avoided national have blown this bubble to such a dangerous level INCOME levels cant possible pay back the half a trillion we all owe!

  9. adam 9

    So at this rate, the billion is one thousand houses at best. That is without the usual waste and corruption associated with this national government.

    So let’s peel that back a bit then shall we, if the current way that this government does business is taken into account. That would be about 500 homes.

    So 500 homes, and we need how many?

    Oh and the bubble keeps going, and this lot are so slow at actually doing anything that might actually be good for people. So my guess – for their 1 billion dollars – we’d be lucky to see 200 homes.

    Lucky little wage slaves indeed.

    • vto 9.1

      yes, little wage slaves ….

      is it better to earn $1,000 per week and have to pay $1,000 per week to live

      or earn nothing and have to pay nothing

      pray tell me the difference

    • Bob 9.2

      “So at this rate, the billion is one thousand houses at best”
      Adam, you misunderstand what the $1Bn is for. This is an infrastructure fund that allows councils to borrow for roading, water, sewerage etc to enable housing developments to open faster and theoretically increase supply.

      I agree that it is a pathetic move that will not have a significant effect on housing costs, but it should allow for a few thousand houses to come onto the market sooner, not the 500 that you are quoting above.

      • s y d 9.2.1

        The $1Bn is to be a loan to Auckland Council. (Most other TA’s are at their debt limits)
        AC will then go to the ‘market’ for a contract to build a motorway out to whangaparoa peninsula (penlink)
        China Construction NZ will ‘win’ the tender to build this horizontal infrastructure, (likely based on using directly imported labour, with attendant cost savings)

        AC will then need to up rates to repay the loan – some right wingers will be elected to reject rates rises, whereupon POAL will be sold.

        National Party donations will skyrocket.

        Theres the linked up plan

        • Bob 9.2.1.1

          “The $1Bn is to be a loan to Auckland Council. (Most other TA’s are at their debt limits)”
          That’s part of the point, this doesn’t effect the councils debt limits, so any of the councils can use the fund.

          “AC will then go to the ‘market’ for a contract to build a motorway out to whangaparoa peninsula (penlink)”
          Not unless they can show that this is going to allow X,000 houses to be built, did you even read the proposal?

          “China Construction NZ will ‘win’ the tender to build this horizontal infrastructure, (likely based on using directly imported labour, with attendant cost savings)”
          This would be no different of the AC borrowed the money to build the infrastructure, so not sure what your point is.

          “AC will then need to up rates to repay the loan”
          No, AC will then charge $5k for each properties water to be connected, and upwards of $100k in building consents per property to pay the debt back.

          “Theres the linked up plan”
          Apart from none of what you have said makes sense, sure, great plan…

          • s y d 9.2.1.1.1

            Jeez Bob, keep up…

            Mayor of TCC “Once we understand the details, we will assess our situation and see if it’s viable to apply for that fund. A lot of that will depend on whether it ends up on our balance sheet or anyone else’s. We don’t want any other debt that’s growth related”

            You know that the ability of TA’s to apply development contributions has been restricted. $100k for consents per property is total fabrication – no idea where you are geting that figure. DC’s on a recent house project in TCC was around $8k.
            See Mollys comment at 3.1

            It’s pretty clear that this infrastructure fund is tied up with PM’s earlier meetings with Chinese Construction industry rep’s and his floating the idea that they could ‘assist’ with infrastructure projects. This is SOP for the PM to casually throw out a proposal and see what the feedback is. If it ain’t too bad it’s dropped into a few more media releases, a couple of glowing Herald editorials later we then somehow end up with a new policy…..

        • Molly 9.2.1.2

          +100

          Exactly what the long-term goal is – and always is – with National.

  10. ianmac 10

    It is so likely that Key is desperate to avoid any action which would be seen to his supporters as collapsing the market. Blame the Central Bank. Blame banks in general. Blame the Labour Party. Blame Treasury. Blame anyone but the Government.
    After all those who are missing out are not his voters are they?

  11. Keith 11

    National are so compromised.

    Now Mr”show some guts” Key is hiding behind the skirts of the Reserve Bank because when it turns to shit, he don’t want the blame.

    Our tired arrogant pathetic poll driven self serving millionaires government is incapable of anything!

  12. Sabine 12

    friend of ours took in a Mother with two kids. She lost her rental when the house was sold. She has stayed with family but it got abusive. So friends came to the rescue cause that is what friends do.

    She now has an appointment with Winz on the 12th! Not tomorrow, not today, no over a week away as she was given the appointment last week. However, she was NOT told to go to the Marae if she has not place to go. Cause clearly Winz and the drones working there don’t care. They just simply don’t care.
    If the government changes, i want the WINZ overhauled and the drones there replaced. Every single one out of Winz and into the free market. Get jobs. Real jobs. With no job security, with no perks, with no career options and minimum wage.

    She was asked by someone at the call centre if she would consider moving to Whangarai. No job offer there, no family there, no friends there, but she could move there and get a job, how she is going to look after two littles under 6 who de the fuck cares, certainly not Winz. Husband? walked a way some time ago, having children was hard work and he was not cut out for it. Some simply aren’t parents material.

    So you know have 3 adults and 5 kids in a 3 bedroom house.

    I think its about time John Key felt a bit uncomfortable. Just a bit of the discomfort and fear that young women feels every time when she tucks in her kids and tells them that they soon will have a home again.

    National Party, a party of greedy irresponsible spendthrift wankers, that successfully brought a country to its knees.

    • Kay 12.1

      @Sabine
      “I think its about time John Key felt a bit uncomfortable. ”

      Psychopaths don’t feel discomfort.

    • dave 12.2

      thats what they do every time you let them near government there a crime gang

  13. Pat 13

    just like CC we can have a controlled (semi) crash at a time of our choosing or we can do sweet bugger all and have an uncontrolled crash……either way we will have a crash.

  14. Eralc 14

    A better measure is the median house price. The average is affected by the squillion dollar properties at the top (which have always been there relative to the times). The average is obviously also affected by the lower priced properties, but not to the same extent. Median would give us a much better idea.

    I’m puzzled by the reporting of ever-rising house prices. We subscribe to QV E-valuer which updates every week. It gives the average in our area, the low/high value range of our property, and the average for Auckland. For 2016, the value of our house and the area has remained fairly constant.

  15. Dave 15

    I really fear the bust every boom has a bust this bubble is so large for such a small economy as New Zealand the fall out will be castrophic bubble pops but the debt still has to be paid keys legacy will a bankrupt nation self inflicted

  16. save nz 16

    Personally think it should be obligatory for all politicians every 4 years to live for a month on the average wage with no perks and then a week on welfare payments.

    I think social security policy would be changed pretty quickly.

    • KJT 16.1

      Simply tie politicians wages to the median income.

      Of course, we would also have to ban them from accepting directorships and other post election bribes.

    • Gangnam Style 16.2

      Someone did suggest Compass should supply Bellamys for a week.

  17. save nz 17

    The other trend happening in Auckland, is that people can’t afford a family home there, (or do not want to live there) or it costs too much time and money to commute, so they buy a cheaper apartment for work and then have their main residence else where.

    A lot of people living on Waiheke do this for example and probably politicians in Wellington.

    It is common in some parts of Europe for this too.

    So trends are emerging to do with modern life issues and how people solve them.

    Also people on local wages are struggling to afford Auckland even if they are migrants. For those that favour more taxes on rates etc, you can see it will only pick off residents who on local wages can not afford any extra taxes.

    The other day there was an article about a migrant came to NZ on $120,000 salary but could not buy a house in Auckland so he moved to Wellington.

    Successful people on supposedly high incomes can not afford to live in Auckland due to the low wages compared to cost of living.

  18. BM 18

    In a perfect environment the market would be efficient enough to ramp up and take advantage of this boom but alias there’s so many road blocks to development, land, skills, man power ,councils etc.

    Things seem to happen at a snails pace in NZ so we’ve ended up with a completely distorted situation.

    This is why I think Key has held off interfering, there’s a real opportunity going begging here but we as a country seem to lack the ability to take advantage of it.

    I think the only option left now is to stop foreign investment in the property market.

    • Gangnam Style 18.1

      Jeez BM, thats kinda arse backwards there, this issue has been around for 10-15 years, we had a major earthquake inbetween, with calls from the Greens back then to have a big cash injection into training NZrs with building skills wotnot, but guess what? The market doesn’t do long term, it’s not like those old cathedral foundation builders who will never see the cathedrals built in their lifetimes, if there is no reward right now then the market moves on to find the next buzz. Imagine a Govt that had invested in training & apprenticeships 5 years ago, all those young apprentices would be raring to go now. Businesses not offering apprenticeships just proves my point of the market NOT providing.

    • gnomic 18.2

      Considered treatment for the split personality problem? Does this comment originate with Dr Jekyll or Mr Hyde? Pretensions at original thought not really going to work alas. Why not just stick with the Tory lickspittle stuff?

  19. Colonial Viper 19

    International context: third billion pound UK property investment fund has now suspended redemptions. Zero Hedge has labelled this the “3rd domino” with more to come.

    BTW “suspending redemptions” means that investors cannot get their money back out of the fund.

    http://www.zerohedge.com/news/2016-07-05/domino-3-mg-suspends-trading-6-billion-uk-property-fund

  20. Brutus Iscariot 20

    Yet Little shares the Key delusion that house prices shouldn’t drop.

    • Colonial Viper 20.1

      Too many middle class voters have huge $$$ tied up in property.

      Tell these voters that you have plans to drop property values by 10% while increasing their costs via land taxes and capital gains, and watch your electability meter crater.

      • BM 20.1.1

        Isn’t that what Little is doing.?, except he’s aiming for 40%

        • Brutus Iscariot 20.1.1.1

          No, Little disagreed with Grimes. He said he wants “affordable housing”, but not for current prices to drop. In other words, he’s speaking from both sides of his mouth.

          • save nz 20.1.1.1.1

            @ Brutus Iscariot

            Not at all. It is called social housing aka State houses, and Labour has done this successfully before.

            • Brutus Iscariot 20.1.1.1.1.1

              Yes, but people don’t own state houses. And it’s home ownership that’s currently the problem. The middle class in NZ don’t want to live in state houses, they just want to be able to buy their own reasonable property.

              • One Anonymous Bloke

                They need higher wages or cheaper houses then. I’m sure the market will totes provide for them.

              • Draco T Bastard

                And it’s home ownership that’s currently the problem.

                That’s not the problem or not the way you think it is. The problem is that a few people own far too many homes each.

                The middle class in NZ don’t want to live in state houses

                Which is really quite silly as they’d be much better off living in a state house than owning their own. Rent set at an affordable percentage of income and maintenance for normal wear and tear taken care of (with a few corrections to legislation).

                they just want to be able to buy their own reasonable property.

                And that too is part of the problem as it allows and encourages the first problem of a few people owning far too many houses and living on the proceeds of others work.

                • Brutus Iscariot

                  Naive again. Ownership is the key – go live in a state house and you’ve just exchanged one landlord for another.

                  State housing exists for those who can’t afford to support themselves. People who can support themselves want the security of an asset that they hold in their own name and can maintain as their future nest egg. And I’m talking about owner occupiers here, not investors.

                  Expanding the state house programme is only going to appeal to a few at the very bottom. Unless it’s done to flood the market with houses and drop prices (ie logical). There is no middle ground.

                  • KJT

                    Depends how many we build.

                    Those who cannot afford to support themselves are now around a third of the population, by the way.

                    Due to short sighted and stupid Neo-liberal madness.

                  • Draco T Bastard

                    go live in a state house and you’ve just exchanged one landlord for another.

                    Wrong. You’ve actually changed the landlord from a capitalist to yourself.

                    People who can support themselves want the security of an asset that they hold in their own name and can maintain as their future nest egg.

                    And National just proved that not to exist. The government can always take your house and land from you. Of course, you don’t actually own the land anyway.

                    Of course, what’s needed is a change in law that ensures that living in a state house comes with a lifetime lease that cannot be undone by any government.

                    State housing exists for those who can’t afford to support themselves.

                    One of the reasons why we have people who can’t afford to support themselves is because of private ownership of housing which allows a few people to bludge off of those who can’t afford their own homes.

                    State housing available for everyone fixes that problem.

                    There is no middle ground.

                    I’m not suggesting a middle ground – I’m not one of the idiots who thinks driving in the middle is a great idea. I’m saying that all housing becomes state housing and a right.

                    • Brutus Iscariot

                      Well you can keep inhabiting that fantasy world then.

                    • Draco T Bastard

                      What we have is a fantasy, completely delusional in fact. It’s why it doesn’t work.

                      Time to try something different.

                    • ropata

                      Not a fantasy it’s a proven model that works exceptionally well. Elites tend to hate it and use any means to screw it up though.

            • BM 20.1.1.1.1.2

              So the state is going to house every one.

              Where do you think that’s going to leave people who have brought rentals?

              You don’t think that may cause a slide in property values, what’s the use having a rental if there’s no one to rent to?

              • One Anonymous Bloke

                “every one”

                When did anyone other than you say that?

              • Draco T Bastard

                Where do you think that’s going to leave people who have brought rentals?

                Where’d they bring them from?

                And, of course, it’s not actually the governments job to protect peoples unearned income but to ensure that everyone is properly provided for.

          • BM 20.1.1.1.2

            Good stuff, best of both worlds.

            The man is truly a genius,

        • KJT 20.1.1.2

          National cannot do that. Most of their voters are sitting on Capital gains investments.

          I would say that National are walking a tight rope at the moment.
          Keeping the swing voters who may be thinking about their children’s future, while not losing the voters who are making a killing out of “capital gains”.

          Losing power means they cannot continue with the thefts (Sorry privatisation) of our infrastructure, health and education systems to satisfy their funders

          • BM 20.1.1.2.1

            And I’d say a fair few left voters as well.
            Teachers, nurses, university types and all the other public sector workers, not exactly poor people.

            The property market is like WFF and Super, politicians play with it at their peril.

            • KJT 20.1.1.2.1.1

              Fair comment. As property has been the, historically, only reliable form of investment, and the only thing most of us can borrow for, many rather ordinary people have put their money in it.

              Teachers and Nurses cannot afford Auckland however.

              I can’t now, and I am on considerably more than a Teacher. Certainly cannot afford to move back.

              • BM

                As property has been the, historically, only reliable form of investment many rather ordinary people have put their money in it.

                This is why a government can’t be seen as interfering in the property market.

                If the market crashes and burns under it’s own steam, that’s fair enough you took the risk and you got burnt.

                A government or government in waiting that loudly proclaims they’re going to flood the market with tax payer funded properties to make housing more affordable is going to get slaughtered and will not see power again for a very long time.

                I’m sure Labour realizes this so I’m not quite sure what their real game is?

                • KJT

                  Some one is going to have to do it.

                  Or it will collapse the country as housing costs vastly exceed incomes.

                  A Labour Greens Government will be better placed than National as less of their vote depends on speculators.

                  However stopping the rises to allow wages to catch up, as well as taking steps to raise wages share of the economy, back to former levels, is required, not a crash, which would have far to serious an effect on the real economy.

                  • Colonial Viper

                    However stopping the rises to allow wages to catch up,

                    Just do a quick calculation on how many decades it will take for this to happen in Auckland.

                    And ask yourself how much of that time will a LAB/GR government be in power.

                • KJT

                  Not to mention interfering now.

                  Using immigration to push prices up.

                  • Colonial Viper

                    Only Winston has taken a firm stance on this issue – he wants to reduce immigration by 90%.

            • Pat 20.1.1.2.1.2

              thought you were of the opinion rising property values was a good thing, a sign of a successful political leadership and sound economic policy, BM?

  21. Brutus Iscariot 21

    I’d like to add that the regions, although appearing superficially more attractive now due to lower prices, will actually tank harder as there are fewer fundamentals to support them. For example there is no land supply shortage in Hamilton and Tauranga, and growth from mass migration isn’t a factor – yet prices are spiking. Non-Auckland properties are what investors will sell up first to raise cash.

    • BM 21.1

      Lots of peat around Hamilton.

      Most of the western side you can’t really build on.

      • Molly 21.1.1

        The suitability of land doesn’t stop the SHA juggernaut.

        One of the first off the block, the Takanini SHA is located on ancient kauri swampland – and has since been extended.

    • KJT 21.2

      Sarting to see migrants and Auckland refugees pushing up prices in Whangarei and Northland now, also.

  22. ankerawshark 22

    http://www.msn.com/en-nz/news/national/property-investors-take-on-john-key/ar-AAi7QBp?li=BBqdg4K

    S..t could really be hitting the fan for Key now! About time. His own turning on him

  23. Draco T Bastard 23

    The electoral problem for Key is that Labour are going to offer what the country needs – stay tuned this weekend.

    “You can’t pass a law saying there can’t be land-bankers.”

    Well, actually, you can. Or, to put it another way, you make it so that land-banking is financially debilitating through the judicious use of capital taxes.

    • Richardrawshark 23.1

      It better be good and pop us up 20 poll points DTB, i’m losing hope that anyone gives a shit out there, who’s left watching the news? people have Netflix? etc getting movies 24/7 whatever, how many couples of the new generations even watch news items.

      Random pull by cops for, rego and wof check the other day gave him some stick about the beating of the deaf guy that was in the news, and the cop didn’t even know what I was on about and didn’t watch the news. So ignorance is bliss, and I suspect key’s winning due to it.

  24. Steven Nichols 24

    There is a lot to panic about; rising house prices, increased government debt, rising awareness of political instability in Britain, USA and Australia. National does not have a clue!

  25. Sookie 25

    They can’t build more houses even if they wanted to. I don’t work in Auckland but even in my area you 1. Cant get builders 2. Cant get engineers 3. Cant get planners. 4. Cant get surveyors. 5. Cant get earthworks and concrete tradies. And so on and so forth. They should have seen this coming 3-4 years ago and tackled it head on but nooooo, the country is crippled by bullshit non-interventionist ideology.

    • RedLogix 25.1

      Probably because no-one can afford to actually live in the place.

      In the meantime just down the road from me:

      http://www.domain.com.au/20-jones-avenue-mount-clear-vic-3350-2012572281

    • KJT 25.2

      No apprentices from 1990 on-wards, due to Government trashing the apprenticeship system.

      All the trades are geriatrics in their 50’s like me, or a few young people in their 20’s.
      (Apart from the ones with bullshit quals from Asia etc who will work for nothing. And South Africans)

      A 30 year gap in training.

      Meanwhile 100’s of young people in North Tec training for the two or three apprenticeships available here each year.

  26. Venezia 26

    Most of the people I know don’t watch the TVNZ or TV3 news, because it is a such poor quality, advertising saturated, waste of time.

  27. Ad 27

    I bid at auction tonight.

    CV was $730.

    Market valuation was $1.05

    First bid was $1.2

    All done at $1.41.

    Waaaaay over anything rational now.

  28. Key is only panicking because Auckland has got so out of hand that it may now just may cost him the election. A lot of people are not happy with the high levels of unskilled immigration that have been allowed to flow freely into Auckland that has resulted in horrendous pressure being put on infrastructure, terrible traffic and lower wages that have given us all a lower standard of living especially when you factor in the skyrocketing price of houses.
    Key should have stopped this years ago but he didnt because business love it. Peters pet subject has always been immigration so I bet he is just laughing his guts out with this blunder. Key has handed a potential extra couple of seats to Winstone with this incompetence.
    Immigration needs to be stopped now! More houses are needed, businesses need to get out of Auckland and into the regions and we need an investor tax to stop this obsession with current home owners and rich immigrants buying every single house in Auckland for a rental.
    Simply upping the deposit is not going to cut it as many investors now have such huge portfolios that they can easily cover a higher deposit by using their portfolios as leverage. This is why the hike on investor deposit rates at Xmas time has been a failure. What is needed is a tax to be introduced as a deteriant. So,if you want a ridicules portfolio of 164 houses then you should pay a tax and I mean a high high tax like 90percent of all rent collected.
    Key has spent years firstly denying Auckland has a housing issue, he then tried to pretend that high immigration numbers had nothing to do with it and now his latest is that high immigration is due to expats returning home from a tanked Auzzie economy. What he does not seem capable of understanding that it is high levels of expats returning back to NZ plus all his business mates low skilled immigrants that are creating this issue. We can’t stop expats from returning but we can stop unskilled immigrants. Key has even tried to tell us he found plenty of houses on trademe for under 500k in Auckland!!!
    Key is panicking, how the heck does he think all of those people looking for rentals or their first home to buy have been feeling for years? Living in Auckland with this housing crisis is darn stressful. This is pure incompetence on Nationals part and it may cost them next years election.
    To fix it the bubble has got to burst and Key does not want that happening on his watch. Part of his panic is that he knows the bubble just may burst sooner than what he was hoping for. We can’t keep going on with this.

  29. Smilin 29

    Well all Keys BS over the last 8 years has finally smacked him in the face ,failure to be in touch with the country he so falsely calls himself a citizen who understands the country’s the needs
    Sweet Home Hawaii or wherever else he is actually registered with , a bit like those ships that carry the Panamanian register but are owned by shit knows who
    And the people who are born live and die here because thats their lot which they cant change suffer the BS on housing that Key is responsible for while he allows the no country rich international cartel of no allegiance to any country but the market to buy up this nation

  30. Justice T. McGovern 30

    I hope you burn for this Key.

  31. Greg 31

    lets not forget Aussie banks in keeping kiwi farmers afloat,
    http://www.stuff.co.nz/business/farming/dairy/76949956/More-dairy-farmers-under-pressure-from-banks-as-prices-fall

    Key wont do much, except make some noise or, policy on the hoof,

  32. Guerilla Surgeon 32

    Let’s face it, prices continuing to go up would be an inconvenience maybe for key. A price crash on the other hand would be a true disaster. Who do you think owns all those spare houses.

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    That's the only response to the findings of the Ombudsman's investigation into LGOIMA practices at the Christchurch City Council:My investigation identified serious concerns about the Council’s leadership and culture, and its commitment to openness and transparency. In particular, Council staff raised concerns with me about various methods employed by some ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • There is what corruption looks like
    NZ First seems to be nakedly trying to enrich itself from public office:A powerful New Zealand First figure helped establish a forestry company that then pushed for money from two key funding streams controlled by a New Zealand First Minister. An RNZ investigation has found Brian Henry, lawyer for Winston ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Escape from Manus Island
    Behrouz Boochani is an award winning author and journalist. He is also a refugee, who for the past six years has been detained in Australia's offshore gulag on Manus Island, and in Papua New Guinea. But last night, with the cooperation of the WORD Christchurch festival and Amnesty International, he ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • When World’s Collide.
    Different Strokes: If a multicultural immigration policy imposes no obligation on immigrant communities to acknowledge and ultimately embrace their host nation’s most cherished traditions and values, then how is that nation to prevent itself from being reduced to a collection of inward-looking and self-replicating ethnic and cultural enclaves?THE COALITION GOVERNMENT’S ...
    6 days ago
  • Could There Be Method In Massey University’s Madness?
    Protective Zone: Reading the rules and guidelines released by Massey University, it is impossible to avoid the conclusion that its governing body considers the whole concept of free speech a disruptive threat to the orderly imparting of orthodox academic knowledge.IN TRUE ORWELLIAN fashion, Massey University has announced its commitment to ...
    6 days ago
  • Climate Change: We need more trees, not less
    Farmers held a hate-march on Parliament today, complete with MAGA hats, gun-nut signs, and gendered insults. While supposedly about a grab-bag of issues - including, weirdly, mental health - it was clear that the protest was about one thing, and one thing only: climate change. And specifically, forestry "destroying" rural ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • The IGIS annual report: Dead letters and secret law
    The Inspector-General of Intelligence and Security released their annual report today, and I've been busy reading through it. In amongst the usual review of what they've been doing all year, there's a few interesting bits. For example, a discussion on "agency retention and disposal of information", which points out that ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • A referendum on bigotry
    The End of Life Choice Bill passed its third reading last night, 69 - 51. Thanks to a compromise with NZ First - which looks to have been necessary on the final numbers - the commencement of the bill will be subject to a referendum. Given the ugliness of the ...
    No Right TurnBy Idiot/Savant
    7 days ago
  • Political parties and GMOs: we all need to move on
    Recently more than 150 post-graduate students and young scientists presented an open letter to the Green Party via The Spinoff, encouraging them to reconsider their position on genetic modification. Their target is tackling climate change issues.[1] Can any party continue to be dismissive about genetic modification (GM) contributing to ...
    SciBlogsBy Grant Jacobs
    7 days ago
  • Class, Identity Politics and Transgender Ideology
    by Deirdre O’Neill Under Thatcher and then Blair and continuing up until our contemporary moment, the working class has seen its culture slowly and progressively destroyed. The change from an industrial society to a service society produced a marked shift in focus from the working class as the backbone of ...
    RedlineBy Admin
    1 week ago
  • Irony
    Since 2013, the Australian government has detained refugees without trial in Pacific gulags, where they are abused, tortured, and driven to suicide. The policy is not just an abuse of human rights and possible crime against humanity; it has also had a corrosive effect on the states Australia uses as ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • An age of protest.
    It seems fair to say that we currently live in a problematic political moment in world history. Democracies are in decline and dictatorships are on the rise. Primordial, sectarian and post-modern divisions have re-emerged, are on the rise or have been accentuated by political evolutions of the moment such as ...
    KiwipoliticoBy Pablo
    1 week ago
  • Another captured agency
    Last month, Greenpeace head Russel Norman surrendered his speaking slot at an EPA conference to student climate activist Sorcha Carr, who told the EPA exactly what she thought of them. It was a bold move, which confronted both regulators and polluters (or, as the EPA calls them, "stakeholders") with the ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • NZ First’s dodgy loans
    The core principle supposedly underlying New Zealand's electoral finance regime is transparency: parties can accept large donations from rich people wanting to buy policy, but only if they tell the public they've been bought. Most parties abide by this, so we know that TOP was wholly-owned by Gareth Morgan, and ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Member’s Day: The choice on End of Life Choice
    Today is a Member's Day, probably the second-to-last one of the year, and its a big one, with the Third Reading of David Seymour's End of Life Choice Bill. last Member's Day it was reported back from committee, after MPs voted narrowly to make it subject to a (rules TBA) ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • How growth in population and consumption drives planetary change
    Climate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about climate change. If you have a question you’d like an expert to answer, please send it to climate.change@stuff.co.nz The growth of the human population over the last 70 ...
    SciBlogsBy Guest Author
    1 week ago
  • The disappearing Women …
    by The Council of Disobedient Women In her excellent oral submission to the Abortion reform select committee on 31st October on behalf of Otago University’s Department of Public Health, historian and public health researcher Hera Cook stated: “We would ask that the committee not use the term ‘pregnant persons’ and ...
    RedlineBy Daphna
    1 week ago
  • “A Passage to India”: enduring art in changing times
    by Don Franks In 1957, E M Forster wrote, of his greatest work: “The India described in ‘A Passage to India’ no longer exists either politically or socially. Change had begun even at the time the book was published ( 1924) and during the following quarter of a century it ...
    RedlineBy Daphna
    1 week ago
  • Contemptuous
    The Referendums Framework Bill was due back from select committee today. But there's no report on it. Instead, the bill has been bounced back to the House under Standing order 29593) because the Committee didn't bother to produce one. They probably tried. But given the membership of the committee (which ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Zero Carbon: It’s not just a good idea, it’s the law
    Two years into New Zealand’s Labour-led government, the long-delayed Zero Carbon Bill became law on 7 November. Passed essentially unanimously, the lengthy public debates and political manoeuvring faded away until the final passage was even anticlimactic: Flipping through the @nzstuff @DomPost I was starting to wonder if I’d dreamt ...
    SciBlogsBy Robert McLachlan
    1 week ago
  • Climate Change: What happens next?
    Now the Zero Carbon Bill is law, what's next? Obviously, the ETS changes currently before select committee are going to be the next battleground. But we're also going to get a good idea of where we're going, and if the progress the Zero Carbon Act promises is good enough, during ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Climate change will fuel bush fires
    Grant Pearce The effects of the current Australian bushfires in New South Wales and Queensland (and also again in California) are devastating and far-reaching. To date, the fires have resulted in several lives being lost and many homes and properties destroyed. Here in New Zealand, the impacts have been only ...
    SciBlogsBy Guest Author
    1 week ago
  • Participation rates
    A passing comment in a post the other day about the labour force participation rates of older people prompted me to pull down the fuller data and see what we could see about various participation rates over the decades since the HLFS began in 1986.   As it happens, the ...
    SciBlogsBy Michael Reddell
    1 week ago
  • Not So Much “OK Boomer” As “OK Ruling Class”.
    Distract And Divert: The rise of what we have come to call “Identity Politics” represents the ideological manifestation of the ruling class’s objective need to destroy class politics, and of the middle-class’s subjective need to justify their participation in the process.THE RELIEF of the ruling class can only be imagined. ...
    1 week ago
  • Asking for it …
    "I saw a newspaper picture,From the political campaignA woman was kissing a child,Who was obviously in pain.She spills with compassion,As that young child'sFace in her hands she gripsCan you imagine all that greed and avariceComing down on that child's lips?" ...
    1 week ago
  • New Zealand’s Poor Pandemic Preparedness According to the Global Health Security Index
    Dr Matt Boyd, Prof Michael Baker, Prof Nick Wilson The Global Health Security Index which considers pandemic threats has just been published. Unfortunately, NZ scores approximately half marks (54/100), coming in 35th in the world rankings – far behind Australia. This poor result suggests that the NZ Government needs to ...
    SciBlogsBy Public Health Expert
    1 week ago
  • Climate Change: Thank Winston
    The Zero Carbon Act is inadequate, with a weak methane target designed to give farmers a free ride. But it turns out it could have been worse: Climate Change Minister James Shaw was so desperate to get National on board, he wanted to gut that target, and leave it in ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Illicit markets and Bali Booze
    The Herald reprints an Australian story on a couple of tragic deaths in Bali from drinking cocktails that had methanol in them.  The story argues that methanol is likely the result of home distillation. But what the young tourists were experiencing was far from a hangover. They’d consumed a toxic cocktail ...
    SciBlogsBy Eric Crampton
    1 week ago
  • This is not what armed police are for
    Last month, the police announced a trial of specialist roaming armed units, which would drive round (poor, brown) areas in armoured SUVs, armed to the teeth. When they announced the trial, they told us it was about having armed police "ready to attend major incidents at any time if needed". ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Spain’s failed electoral gamble
    Spain went to the polls today in the second elections this year, after the Socialists (who had come to power in a confidence vote, then gone to the polls in April) rejected the offer of a coalition with the left-wing PoDemos, and instead decided to gamble n a better outcome ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • The astroturf party
    National has finally rolled out its "BlueGreen" astroturf party, fronted by an array of former nats and people who were dumped by the Greens for not being Green enough. Its initial pitch is described by Stuff as "very business-friendly", and its priorities are what you'd expect: conservation, predator-free funding, a ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • How to cheat at university
    A couple of days ago I attended (and spoke at) the University of Waikato’s “LearnFest” event. There were lots of talks and sessions on very diverse aspects of teaching, mostly at tertiary level. One was by Myra Williamson from Te Piringa Faculty of Law here at Waikato, on Contract Cheating ...
    SciBlogsBy Marcus Wilson
    1 week ago
  • How NZ was put on world maps using a transit of Mercury
    There will be a transit of Mercury – the planet Mercury will pass across the face of the Sun – taking place at sunrise in New Zealand on Tuesday, 12th November. It was by observing such an event 250 years ago that James Cook and his scientist colleagues were able ...
    SciBlogsBy Duncan Steel
    1 week ago
  • Georgina Beyer: We need to be able to talk without being offended
    Since becoming the world’s first openly transexual mayor and member of parliament, Georgina Beyer has been recognised as a trailblazer for trans rights. Daphna Whitmore talks with her about where she sees the current trans movement We start out talking about legislation the government put on hold that would have ...
    RedlineBy Daphna
    1 week ago
  • The anti-fluoride brigade won’t be erecting billboards about this study
    If FFNZ really put their faith in “Top Medical Journals” they would now be amending their billboards to recognise new research results. Image from FFNZ but updated to agree with the latest research. ...
    2 weeks ago
  • Chosen To Rule? What Sort Of Christian Is Chris Luxon?
    National Messiah? Chris Luxon identifies himself as an evangelical Christian. If he is genuine in this self-characterisation, then he will take every opportunity his public office provides to proselytise on behalf of his faith. He will also feel obliged to bear witness against beliefs and practices he believes to be ...
    2 weeks ago
  • War of the worms
    I'm going to make a Reckless Prediction™ that the Tories have 'topped out' in the 'poll of polls' / Britain Elects multipoll tracker at about 38%, and in the next week we will start to see Labour creep up on them.In fact, we might just be seeing the start of ...
    2 weeks ago
  • Marvelly shows us how to be a feminist without feminism
    by The Council of Disobedient Women Lizzie Marvelly: “I may have missed this… has @afterellen gone all terf-y? Or am I reading something incorrectly? “ https://twitter.com/LizzieMarvelly/status/1191840059105742849 After Ellen is a lesbian website that is unashamedly pro-lesbian, as you’d expect. So why is Ms Marvelly so bothered about lesbians having their ...
    RedlineBy Daphna
    2 weeks ago
  • Out of the past – Tories to revive racist laws from the 16th century
    Did you know there once was a time when it was illegal to be a gypsy (aka Romani) in Britain?That was between 1530, when the Egyptians Act was passed, and 1856, when it was repealed.Amongst other things, the act forbade the entry of 'Egyptians' into England, ordered those already there ...
    2 weeks ago
  • 1000 of these now
    Some days I sit and think, “what will I write…?” What do you say when you get to 1000 posts? Maybe you just start where you are, diverge to where this all began, then offer a collection of reader’s favourite posts, and a few of your own? (And throw in ...
    SciBlogsBy Grant Jacobs
    2 weeks ago
  • Has Shane Jones Just Saved NZ First?
    Counter-Puncher: The “activists” and “radicals” (his own words) from the Indian community who took such strong exception to Shane Jones’ remarks about Immigration NZ’s treatment of arranged marriages, may end up bitterly regretting their intervention. Jones is not the sort of person who turns the other cheek to his critics.SHANE ...
    2 weeks ago
  • Climate Change: As predicted
    Yesterday, when National voted for the Zero Carbon Bill, I predicted they'd gut it the moment they regained power, just as they had done to the ETS. And indeed, they have explicitly promised to do exactly that within their first hundred days in office. What would their amendments do? Abandon ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Let this never be forgot
    In the spirit of Remember, remember the fifth of November, let's keep this in mind FOREVER.
    Oh dear. Extraordinary interview on PM with Andrew Bridgen and @EvanHD just now. Bridgen was defending Jacob Rees Mogg’s Grenfell comments. Evan asked him if JRM had meant to say he would have left ...
    2 weeks ago
  • Too Late To Change Capitalism’s Flightpath?
    Collision Course? In conditions of ideological white-out, the international bankers’ “Woop-Woop! Pull Up!” warning may have come too late to save global capitalism.WHAT DOES IT MEAN when international bankers are more willing to embrace radical solutions than our politicians and their electors? At both the International Monetary Fund and the ...
    2 weeks ago
  • Whooping cough vaccine works well despite its imperfections
    Pertussis (whooping cough) is a conundrum. It is a disease that was described hundreds of years ago and the bacteria that causes it (Bordetella pertussis) isolated in 1906. We have had vaccines for about 80 years but this disease is defiant in the face of human immunity. I wanted to ...
    SciBlogsBy Helen Petousis Harris
    2 weeks ago
  • Climate Change: Passed
    The Zero Carbon Bill has just passed its third reading, uanimously. In the end, National supported it - but we all know they'll turn around and gut it the moment they regain power. Meanwhile, I guess ACT's David Seymour didn't even bother to show up. I am on record as ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Retailing of vaping products – New NZ Research
    Dr Lindsay Robertson, Dr Jerram Bateman, Professor Janet Hoek Members of the public health community hold divergent views on how access to vaping products or electronic nicotine delivery systems (ENDS) products should be arranged. Some believe ENDS should be as widely available as smoked tobacco and argue for liberal ...
    SciBlogsBy Public Health Expert
    2 weeks ago
  • Justice for Bomber
    When the Police were trying to cover up for the National Party over Dirty Politics, they went all-in with their abuses of power. They illegally search Nicky Hager's house, violating his journalistic privilege and invading his privacy. They unlawfully acquired Hager's bank records. They did the same to left-wing blogger ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Britain’s climate tyranny was unlawful
    Last month, in response to a wave of protests by Extinction Rebellion, the British government purported to ban their protests from the whole of London. It was a significant interference with the freedoms of expression and assembly, and another sign of the country's decline into tyranny. But now, a court ...
    No Right TurnBy Idiot/Savant
    2 weeks ago

  • Cowboy clampers will be stymied
    Clayton Mitchell, Spokesperson for Consumer Affairs The ‘wheel clamping’ Bill that will cap clamper fees to $100 passed its third reading in Parliament today. New Zealand First welcomes The Land Transport (Wheel Clamping) Amendment Bill to combat predatory wheel clamping behaviour in what is currently a largely unregulated business. Cowboy clampers are: gouging ...
    16 hours ago
  • Mental Health Commission back on track
    Jenny Marcroft, Spokesperson for Health New Zealand First welcomes the passage of the Mental Health and Wellbeing Commission Bill through its first reading in Parliament. “Today’s progress takes serious action on the mental health and addiction crisis the country is facing,” says New Zealand First Health Spokesperson Jenny Marcroft. “The re-establishment ...
    17 hours ago
  • New Zealand’s key assets are not for sale: national interest test delivered
    Mark Patterson, Spokesperson for Primary Industries Today the Government announced the delivery of the promise to protect New Zealand interests by applying a new National Interest Test to the sales of our most sensitive and high risk assets to overseas buyers. This further strengthening of the Overseas Investment Act will ...
    1 day ago
  • National interest test added to protect New Zealanders’ interests
    The Coalition Government is delivering on its promise to protect New Zealanders’ interests by applying a new national interest test to the sales of our most sensitive and high-risk assets to overseas buyers. Under current Overseas Investment Act (OIA) rules, assets such as ports and airports, telecommunications infrastructure, electricity and ...
    1 day ago
  • Electoral law breach allegations
    Rt Winston Peters, Leader of New Zealand First Allegations raised this morning by Stuff Limited / Fairfax concern a party matter but I am confident that New Zealand First has operated within electoral laws, now and for the last 27 years. Declarable donations were declared to the Electoral Commission. Our ...
    2 days ago
  • Wayne Brown hits back at critics: Ports of Auckland has to move
    The chairman of the Upper North Island Supply Chain Strategy (UNISCS) working group, Wayne Brown, has hit back at critics of his group’s recommendations to relocate the Ports of Auckland cargo operations to Whangarei’s deepwater port of Northport. The working group's recommendation to close Auckland waterfront to all but cruise ...
    2 days ago
  • Week That Was: Supporting our schools
    We're setting our young people up for success, investing in education around the country.  ...
    3 days ago
  • Kiwis to have their say on End of Life Choice
    Jenny Marcroft MP, Spokesperson for Health New Zealand First backs the public to decide on the End of Life Choice Bill via a referendum at the 2020 General Election. The Bill, with New Zealand First’s referendum provision incorporated, passed its final reading in Parliament this evening. New Zealand First Spokesperson for ...
    7 days ago
  • Addressing miscarriages of justice
    Darroch Ball, Spokesperson for Justice New Zealand First is proud that a key Coalition Agreement commitment which will provide for a more transparent and effective criminal justice system has been realised. Legislation to establish the Criminal Cases Review Commission, an independent body focused on identifying and responding to possible miscarriages of ...
    1 week ago
  • Week That Was: Historic action on climate change
    "Today we have made a choice that will leave a legacy... I hope that means that future generations will see that we, in New Zealand, were on the right side of history." - Jacinda Ardern, Third Reading of the Zero Carbon Bill ...
    2 weeks ago
  • Tax-free deployments for Kiwi troops
    Darroch Ball, New Zealand First List MP A Member’s bill has been proposed that would provide income tax exemptions for all New Zealand Defence Force (NZDF) personnel while on operational deployment overseas. The Income Tax (Exemption for Salary or Wages of NZDF Members on Active Deployment) Amendment Bill proposed by New Zealand First ...
    2 weeks ago
  • A balanced Zero Carbon Bill passed
    Rt Hon Winston Peters, New Zealand First Leader New Zealand First is proud to have brought common sense to the Climate Change Response (Zero Carbon) Amendment Bill, which passed its final reading in Parliament today. Party Leader Rt Hon Winston Peters says months of hard work went into negotiating a balanced ...
    2 weeks ago
  • Paramedics’ status to be recognised
    Jenny Marcroft MP, Spokesperson for Health New Zealand First has listened to calls to recognise paramedics as registered health professionals under the Health Practitioners’ Competence Assurance Act (the Act). Today, the Coalition Government announced plans for paramedics to be registered as health practitioners under the Act, and the establishment of a ...
    2 weeks ago
  • Week That Was: 2,000 teachers in two years
    We began the week by commemorating the New Zealand Wars and celebrating a major increase in the number of teachers. Then, we were busy supporting offenders into work and getting our rail back on track after years of underinvestment. And that's just the start! ...
    3 weeks ago
  • Winning an election one conversation at a time
    In October I was sworn in as the Mayor of Lower Hutt. It’s the privilege of my life to serve Hutt people as their Mayor. There is something really special to be able to serve the community where I was raised, and where I live.   ...
    3 weeks ago

  • APEC 2021 Bill passes first reading
    Foreign Affairs Minister Winston Peters has welcomed the first reading of the Asia Pacific Economic Cooperation 2021 (APEC 2021) Bill in Parliament today. The temporary bill supports New Zealand’s security preparations for hosting the Asia Pacific Economic Cooperation (APEC) Forum in 2021. “APEC is the leading economic and trade forum ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Making progress for our kids
    The Government is making progress on improving the wellbeing of the one million New Zealanders under the age of 18,” Prime Minister Jacinda Ardern said on World Children’s Day. The Government has today recommitted to the most widely ratified human rights treaty in history – the United Nation’s Convention on ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • Māori women in business contribute to our economy, whānau and communities
    Minister for Women Julie Anne Genter has released a new report celebrating the contribution of Māori women in business across Aotearoa New Zealand. “Māori women are leaders in our communities, they employ many people and support our economy and our communities,” Julie Anne Genter said. The report, Ngā wāhine kaipakihi: ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Two schools on the way for Omokoroa
    Four parcels of land have been bought in Omokoroa, in the Western Bay of Plenty District, for an education facility that will accommodate both a primary and secondary school on a campus-like facility, Education Minister Chris Hipkins said today. Two parcels were acquired from private land owners and two were ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Families Package helps over 1 million New Zealanders in first year
    1 million New Zealanders warmed by the Winter Energy Payment 36,000 families bank the Best Start Payment in first year 6,000 more families received the Family Tax Credit, 220,600 in total   They receive an increase too – from an average of $117 to $157 a week for Inland Revenue clients, ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Clamp down on wheel clamping passes third reading
    New rules to clamp down on overzealous wheel clamping and extortionate fees charged in order to release a vehicle have passed their final stage in Parliament today. The Land Transport (Wheel Clamping) Amendment Bill has now passed its third reading. “These changes mean $100 will be the maximum wheel clamping ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Mental Health and Wellbeing Commission Bill passes first hurdle
    An independent Mental Health and Wellbeing Commission is a step closer after it unanimously passed its first vote in Parliament today.  The Mental Health and Wellbeing Commission Bill lays the groundwork for establishing the Commission as a fully independent crown entity – delivering on a key recommendation of He Ara ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Boosting border security with electronic travel authority – now over 500,000 issued
    We’ve improved border security with the NZeTA, New Zealand Electronic Travel Authority, which helps us to screen travellers for border and immigration risks off-shore before they travel to New Zealand. It was launched in August and became mandatory on 1 October 2019. More than 500,000 NZeTAs have been issued since ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Plan of action to protect seabirds
    A proposed national plan of action to reduce the number of seabirds caught in fisheries is being circulated for public feedback. Fisheries Minister Stuart Nash and Conservation Minister Eugenie Sage say New Zealand is a global centre of seabird diversity with about 145 species in our waters. It has more ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • National interest test added to overseas investment rules
    The Government is delivering on its promise to protect New Zealanders’ interests by applying a new national interest test to the sales of our most sensitive and high risk assets to overseas buyers. Associate Finance Minister David Parker said under current Overseas Investment Act rules, assets such as ports and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New housing part of support for Kaumātua
    The Government is building special housing to accommodate one of Aotearoa’s greatest taonga- our kaumātua, says the Minister for Māori Development, Hon Nanaia Mahuta.  Speaking at a National Kaumātua Service Providers Conference in Rotorua today, the Minister reinforced the importance kaumātua play in maintaining and passing on mātauranga Māori, knowledge, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Forestry helps prisoners into jobs
    Eleven men from a pilot forestry training programme for prisoners in Northland now have full time jobs or job offers upon release, Corrections Minister Kelvin Davis and Forestry Minister Shane Jones announced today. The ‘release to work’ programme was a collaboration between Te Uru Rākau and the Department of Corrections, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Reform of public service a step closer
    Minister of State Services Chris Hipkins today introduced into Parliament a Bill that will make it easier for the public service to tackle the biggest challenges facing Governments. The Bill represents the most significant change in the public service in 30 years. The State Sector Act 1988 will be repealed ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Donations scheme to relieve pressure on families
    The families of more than 416,000 students will be better off next year as their schools have signed up to the Government’s donations scheme, Education Minister Chris Hipkins said today. The scheme will see almost $62.5 million in additional Government funding go to schools nationwide next year. “I’m really pleased ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Further support for Samoan measles outbreak
    Foreign Affairs Minister Winston Peters has announced further support as the Government of Samoa responds to a serious measles outbreak. “New Zealand will deploy a further 18 vaccination nurses, bringing the total to 30 working in Samoa over the next four weeks,” Mr Peters said. “A New Zealand Medical Assistance ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Speech to the Child Poverty Action Group 2019 Summit
      Fa’atalofa atu, malo e lelei, Kia ora koutou katoa Thank you to the Child Poverty Action Group for asking me to be here today to provide an update on some of the things that have been happening across my the social development portfolio.  Can I firstly acknowledge the vast ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to the New Zealand Thoroughbred Racing Annual Conference
    ***Please check against delivery*** Good morning everyone. It is a pleasure to be with you this morning to open this year’s New Zealand Thoroughbred Racing Conference and AGM. Firstly, thank you Dr Alan Jackson, NZTR Chair for your introduction. And let us acknowledge also: The NZTR Board; Dean McKenzie, Chair ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Fairer rules for tenants and landlords
    The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer and more secure, Associate Minister of Housing (Public Housing) Kris Faafoi has announced today. Both renters and landlords will benefit from the suite of practical changes to the Residential ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Two decades of marine protection celebrated at Te Tapuwae o Rongokako in Tairawhiti
    A marine conservation milestone - the 20th anniversary of the establishment of Te Tapuwae o Rongokako Marine Reserve - is being celebrated today at a community event in Tairāwhiti/East Coast attended by the Minister of Conservation, Eugenie Sage. “The creation of this marine reserve in November 1999 was a game ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Food industry asked to step up fight against obesity
         The Government is asking the food industry to step up work to tackle obesity including reducing sugar, fat and salt in their products, better information for consumers, and tighter restrictions on advertising to children. Health Minister David Clark and Food Safety Minister Damien O’Connor have responded to a ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Modern emergency care for Queenstown area
    ew, modern emergency department and outpatient facilities at Queenstown’s Lakes District Hospital mean better emergency care for the growing tourist mecca’s visitors and locals, says Health Minister David Clark. Today Dr Clark officially opened the hospital’s redeveloped Emergency Department and Outpatient facilities. The new facilities include: •    An extended Emergency Department ...
    BeehiveBy beehive.govt.nz
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