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Inflation targeting puts Kiwis under the gun

Written By: - Date published: 2:34 pm, April 16th, 2008 - 31 comments
Categories: economy, International - Tags: ,

dollar.jpgAs you know, petrol and food prices are up. These are international prices spiralling up due to growing demand and limited or falling supply. When demand exceeds supply prices rise.

Now, when food and petrol goes up, that’s inflation. In fact it’s most of the current inflation: out of 3.4%, 0.9% is from petrol and 0.9% from food. The Reserve Bank has a target for inflation of 1-3% over the medium term. When it sees inflation rising it puts up interest rates to get inflation down in the target range. This ‘inflation targeting‘ is meant to work by encouraging people to save, not borrow, and take money out of people’s pockets through higher mortgage rates (giving that money to the owners of foreign banks). This takes money out of circulation, reducing consumer demand to match supply. Bye, bye inflation. In theory.

Problem is, the demand for food and the demand for petrol is not going to drop we need just as much no matter what the price. Even if demand did drop a little in New Zealand, the price would keep rising because the market is international. So, our incomes are tightened by the rising prices. Then the Reserve Bank makes it worse by lifting interest rates. That has no effect on inflation, so the Reserve Bank lifts rates again and keeps them up.

The only way to bring overall inflation down is to cripple other spending by forcing us to put more and more money into food, petrol, and housing. But doing that means no-one wants to buy anything, strangling the rest of the economy, and all the while inflation stays up because it’s international. It’s a stupid situation: the Reserve Bank’s inflation targeting punishes Kiwis and the New Zealand economy but can’t fix the underlying causes of inflation.

What’s the solution? Fix inflation targeting. New Zealand was the first country in the world to adopt the practice, during the rightwing economic revolution, and we remain the only country in the world that only considers inflation, not things like growth and jobs, when setting interest rates and looks at all inflation, not just the domestic stuff that interest rates can actually affect. We need to join Australia, the UK, Canada, the US etc by looking at the economy overall and discounting international inflation when setting interest rates.

Where can we look to leadership on this issue? Not National and not Labour. The Greens and New Zealand First have led the way in calling for reform of how we manage interest rates. It’s high time Labour joined them.

31 comments on “Inflation targeting puts Kiwis under the gun ”

  1. At the moment don’t we have ‘stagflation’ due to: our GDP growth falling for the last 8 years and inflation rising due to rapidly rising global resource demand ?

  2. Um, Maw – we don’t have slow growth and we don’t have high overall inflation. As these are the two indicators of stagflation I think you may need to reconsider your thesis.

  3. Matthew Pilott 3

    mawgxxxxiv, no – that’s only with an actual economic contraction. At present, we might see a ‘technical recession’, as was the term used, a slight cntraction for two consecutive quarters. Apart from that, our economy has enjoyed one of the best growth periods ever – not what you’d call stagnant.

    Imagine a country with GDP growth figures of, say, 9% last year, 10% the year before, 10.5% the year before. The rate at which its economy is growing is decreasing, but nonetheless the economy is expanding. That isn’t stagflation.

  4. insider 4

    The question that comes up then around growth is, would we have had the same growth if we had not had a focus on inflation?

  5. That is a very good question indeed. I think yes. In fact I suspect that if the reins had been let out a bit there may have been greater room for businesses to borrow for capital investment and less high-dollar pressure on exporters.

  6. Steve Pierson 6

    The thing is, the economy is like an engine, and inflation is like the temperature gauge. Yes, it’s something you want to keep an eye on, you don’t want it getting to the red zone, but it shouldn’t be the only consideration when you decide how hard to press on the accelerator.

  7. Matthew Pilott 7

    insider – perhaps we’d have had the same growth – but it wouldn’t be worth as much, in today’s terms. Any counterpoints out there – i.e. that higher inflation curtails growth (talking about, say 4-5% as opposed to 1-3%, not a mugabesque 100,000%)? I couldn’t say off the top of my head.

  8. Steve Pierson 8

    opinion differs on when inflation begins to hurt growth. this paper says 8% http://econpapers.repec.org/paper/clmclmeco/2000-22.htm , the general economic thought has been that its not bad until 20% plus.

    The difference between, say, 2% and 4% is insignificant as far I’m aware. And that makes sense, the numbers are puny, the ‘menu costs’ are small, and the rate of change isn’t too fast to really put sticky prices out of wack with more fluid ones.

    What really matters is stability. As long as the rate of change (and, so, the real rate fo return investors can expect) remains predicitable people will feel confident investing.

    Maybe matt nolan or phil or another econo-type will have somethign to add.

  9. Phil 9

    I’m indescribably flattered to have been mentioned in the same sentence as Matt – someone with a much greater capacity to eloquently explain economics than I do…

  10. Phil 10

    One thing that has not been mentioned thus far is the effect of the exhange rate. By raising interest rates, our dollar becomes more attractive to the internation community and the exchange rate rises, as ours has done.

    The impact this has is to reduce the cost of imported goods – a critical factor missing from all the bitching and moaning about petrol and food; without the current system in place, we would be facing much MUCH MUUUCCCCHHHH hugher prices for these items than we currently do.

  11. Phil 11

    In defence of the RB and inflation targeting generally;

    To say the RBNZ “only considers inflation, not things like growth and jobs” is simply not accurate.

    Inflation, GDP, jobs, the exchange rate, and a myriad of other indicators all impact upon each other in a free market economy, and the RB places a great deal of emphasis on understanding what it’s actions will do to them.

    DISCLAIMER; the views I have expressed on TheStandard.org are exclusively my own. They are not intended to be viewed as official policy or opinion of my employer, the RBNZ.

  12. While the term ‘stagflation’ was perhaps ‘provocative’ RBNZ figures show that growth has trended down from 6% in 2000 to 2% now. Statistics NZ numbers show that CPI inflation has trended up from 1.5% in 1999 to 3.5 % now. Both appear to have headed in the wrong direction under the current government.

  13. lprent 13

    They are not intended to be viewed as official policy or opinion of my employer, the RBNZ.

    I’ve been aware of that (it has shown on the e-mail you used).

    People can take it as policy that we guard the privacy of people on this blog. We’re quite painfully aware of the issue as is shown on our About page.

    BTW: Hopefully this will never become an issue, but I’ll get seriously annoyed if there is any personal abuse related to people’s occupations if they choose to disclose them.

  14. Pascal's bookie 14

    Phil, what do you think about the situation in the US and how the fed is responding to it?

    I realise that’s a short question asking for a long answer, but what interests me specifically is the fact that the fed has slashed rates massively at a time when inflation is knocking quite loudly on the door.

    At the same time, the fed is bailing out financial institutions by buying up (or loaning against) shitty paper at face value.

    It seems to me that these actions are short term fixes aimed at staving off immediate crises in the form of bank failures and Wall St meltdowns. It seems that just as a big player shifts some dodgy debt that they had hiding on the Cayman’s on to the publically viewable books, the market panics, and the Fed either cuts a deal or chops the rate. And the market bounces as if something important has happened.

    I realise that the Fed has to do something and that large scale bank failures should if at all possible be avoided. I worry about the moral hazards being set up, whereby other banks are watching on and noting that if they just let their own piece of the shitpile get septic enough, the Fed will bail them out. I also worry that the bad debts that no one seems to know the size of are just going to be fixed by an unspoken but deliberate policy of inflating the dollar.

    I’ve got no training in economics, which probably shows. But the steep cuts in interest rates combined with the inflation fears don’t gell to someone who is more used to how the RBNZ operates.

  15. Interest rates are not the problem, merely the symptom. Therefore, we should attempt to address the problem, which are to name a few: grossly low-wages, unproductive and negative incentives in residential housing, relaxed attitudes over the recent term of credit facility – rather plastering over the visible symptoms.

    Other symptoms exist, equally or more important especially in the living standard and social sectors, which may not be not visible to folk of a certain flavour, which are also a result of these negative incentives – but they are failing to be addressed in the rush to deliver silver-bullet political solutions which again – address only the symptoms – and even then, only those that fit in the world view.

  16. Phil 16

    Thanks Lynn,
    Recently RB staff were reminded of the protocol’s around working for a gov’t department in an election year. I figured it was better to be safe rather than sorry if someone stumbles upon my comments later… =)

    Pascal,
    You’re right in so much as it’s a very short question with a very long answer!

    Without wanting to bore you to death with banking regulation, the new capital adequecy rules called “Basel-2” should do an awful lot to clarify what can be transferred ‘off balance sheet’ (ie; sweet F.A.) which will hopefully go a long way to stopping this sort of accounting nonsense from happening again.

    As for getting out of the hole we’re currently in, the most likely scenario will involve slightly higher inflation around the planet as central banks inject more and more cash into financial markets to improve liquidity… which is really what the whole crisis is all about (as opposed to the underlying soundness of the global macro-financial community, which is pretty good).

  17. Dean 17

    Policy Parrot:

    “Other symptoms exist, equally or more important especially in the living standard and social sectors, which may not be not visible to folk of a certain flavour, which are also a result of these negative incentives – but they are failing to be addressed in the rush to deliver silver-bullet political solutions which again – address only the symptoms – and even then, only those that fit in the world view.”

    In your opinion does government spending have any effect on the inflation rate?

  18. Policy Parrot 18

    Dean: All expenditure has an effect on inflation – that’s a no brainer. However, leading on from your question – is the assertion, that if so, shouldn’t the government reduce spending to tackle inflation – in fact perhaps that is the cause of inflation.

    Which is completely fallacious. Government spending whilst not helping inflation is not the primary cause of it – once again – tackling causes rather than symptoms is the solution, for example – people would not have to spend so much on housing if prices were not artificially high. The asset value of residential housing doubled from 2001 to 2006. Extra spending to finance ever greater debt is the cause of this inflation.

  19. AncientGeek 19

    Steve: I lived, or rather tried to live, through the inflation of the late 70’s and 80’s. It would take a *lot* to convince me that it is anything other than massively corrosive. There is nothing quite as depressing as living with high inflation. At least with interest rates there are things you can do to avoid incurring interest liabilities.

    I think that the current guidelines are probably broadly correct. The effects of controlling inflation might hurt in the short-term, but they force the elements of the economy that are resistant to change to adjust faster (eg house prices). In the medium term that means that required changes are not protracted into long-term torture.

    With all that said, there is probably a case for the RB to run with a bit more temporary flexibility in their medium term objectives. We’re getting hit with a couple of external shocks at present. However looking at the RB’s operations I think thats the policy they’re following anyway.

    Where can we look to leadership on this issue? Not National and not Labour. The Greens and New Zealand First have led the way in calling for reform of how we manage interest rates. It’s high time Labour joined them.

    Yeah right. Hopefully they won’t. I’d prefer them to keep their powder dry for when we really need it.

  20. AncientGeek 20

    Talking about change. I’ve noticed sudden revival of people using motorcycles at work. This morning I heard an e-mail reported on Morning Report. Someone was shifting what they ate, to a cheaper and more healthy diet. Less dairy and meat and more fruit and vege’s.

    I’d expect to see a lot more of that happening. The current shocks happen to be in areas that the market signals operate quite well

  21. Dean 21

    Policy Parrot:

    “Dean: All expenditure has an effect on inflation – that’s a no brainer. However, leading on from your question – is the assertion, that if so, shouldn’t the government reduce spending to tackle inflation – in fact perhaps that is the cause of inflation.

    Which is completely fallacious. Government spending whilst not helping inflation is not the primary cause of it – once again – tackling causes rather than symptoms is the solution, for example – people would not have to spend so much on housing if prices were not artificially high. The asset value of residential housing doubled from 2001 to 2006. Extra spending to finance ever greater debt is the cause of this inflation”

    You know, I don’t think I’ve seen such a perfect example of doublethink in such a long time.

    Let’s recap. You’re saying that the government is spending money because of social inequities, and that the inflation government spending causes is somehow more just than the inflation caused by private investment.

    You’re also ignoring why so many people choose to invest in housing instead of saving. I wonder why?

    You’re saying inflation is largely the fault of private investors, even when we’ve seen a massive increase in government spending as a proportion of GDP.

    You do understand how supply and demand work, don’t you?

    Pull the other one Parrot. It’s got “Labour’s tax cuts are not inflationary but Nationals would be” written on it.

  22. Inflation has been caused by the doubling of the residential housing asset base, and the greater spending that is now required to retire debt. This phenomenon represents an increase in value in scale several factors greater than any influence that increased government spending has had.

    To say increased government spending has no affect on inflation would be incorrect. However, I agree with Michael Cullen – how capping or reducing increased government spending – which has been necessary to improve performance delivery of social services (there does need to be improvement in the service side of the public sector but this cannot be achieved by unduly limiting or slashing staff) – would have negligible effect on reducing inflation.

  23. Dean 23

    “However, I agree with Michael Cullen – how capping or reducing increased government spending – which has been necessary to improve performance delivery of social services (there does need to be improvement in the service side of the public sector but this cannot be achieved by unduly limiting or slashing staff) – would have negligible effect on reducing inflation.”

    Cullen also said that any tax cuts that National would deliver would be inflationary, yet his would not be.

    Or perhaps I’m wrong. Could you explain to me why tax cuts delivered by Labour are not inflationary, whereas tax cuts by National would be? I am all ears.

    Somehow, I don’t think you’re listening to the right advice when it comes to understanding the causes of inflation.

  24. r0b 24

    Cullen also said that any tax cuts that National would deliver would be inflationary, yet his would not be.

    Could we have the original source for that quote please Dean?

  25. Dean 25

    “Could we have the original source for that quote please Dean?”

    You have GOT to be joking. Surely. Are you honestly telling me you’ve never heard Cullen say either of these things?

    I’ll give you some links tomorrow.

  26. r0b 26

    I’ll give you some links tomorrow.

    That would be grand.

  27. What we have is an unprecedented economic collapse of the entire financial system as the result of irresponsible injections of fiat money into the system by the Federal reserve of New York in order to save the bankers elite after 20 years of bubble building and deregulation. If you really want to know more about the money system than watch these two films: The Money Masters http://aotearoaawiderperspective.wordpress.com/interesting-videos/documentaries/the-money-masters/
    Money as debt
    http://crazyrichguy.wordpress.com/what-is-money/
    and read 5 articles starting with this one:
    http://aotearoaawiderperspective.wordpress.com/the-financial-tsunami-the-preeminent-role-of-new-york-banks-and-wall-street-investment-banks/the-financial-tsunami-sub-prime-mortgage-debt-is-but-the-tip-of-the-iceberg/
    Then remember that John Key was only one of 4 advisors to the Federal Reserve from 1999 until March 2001 when he was Global Head of the Forex department of Merrill Lynch. A position that is upon invitation only, and which brought him very much to New York and Wall street.
    This was at the time when the federal reserve won the price after years of lobbying: the repeal of the Glass-Steagall_Act in 1999 which allowed the banks to go on an all out robbing spree. http://en.wikipedia.org/wiki/Glass-Steagall_Act.
    And then I suggest you get a Kings seed catalogue and order your seeds, dig up your gardens and start growing you own food because if John Key gets elected that is what you will have to do in order to get food. No let me correct that, you will have to do that any way because the international bankers elite has f*cked up the system all ready, him being elected and them being able to rob this country of it’s resources would merely be a little icing on a cake on their already bloated table.
    By the way, why was John Key meeting with his old bosses in October 2007 for a breakfast in an office of Merrill Lynch in London? Well, if you have watched the films and read the articles you will know. On that level it’s: Once a banker always a banker.

  28. Sounds like you guys have been having a robust discussion of inflation targeting. I just recently wrote about it after seeing Kiwiblog and Kiwiblogblog talk about it:

    http://tvhe.co.nz/2008/04/16/why-does-the-target-rate-matter/

    “opinion differs on when inflation begins to hurt growth. this paper says 8%”

    One important thing to remember here is that this paper measures the cost of inflation now on growth. But I don’t think it takes into account inflation’s impact on inflation expectations, which then negatively impacts on future growth and welfare.

    This is why the Reserve Bank has changed its mandate to medium term inflation – as it is worried about what people expect inflation to be (as if people expect high inflation wage and price demands will be high to compensate, causing the inflation).

    Furthermore, although the RBNZ does not explicitly target output, it uses an output gap model and a fair amount of adaptive expectations stuff for determining where inflation will go. What this means is that, if economic growth starts falling sharply, they expect inflationary pressures to fall and so will be more likely to cut rates. In a sense this model does incorporate some type of “implicit” target rate of growth – what they call the natural growth rate.

  29. Steve Pierson 29

    I know some people have had a problem with us coming down heavy on abusive commentators and trolls, and I’ve personally been quite hesitant about it. But I just want to say this is a great thread full of intelligent comment and that wouldn’t be possible if we had dad4justice intervening about ‘lickspittle labour’ every five minutes and the Michele Cabiling types hurling abuse and homophobia.

    cheers, you fellas and fellaesses

  30. Fred 30

    Steve, good post.

  31. r0b 31

    I’ll give you some links tomorrow.

    How you doing there Dean? Any luck?

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  • Humans ignite almost every wildfire that threatens homes
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    SciBlogsBy Guest Author
    5 days ago
  • Climate Change: China steps up
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    No Right TurnBy Idiot/Savant
    5 days ago
  • Humans have dealt with plenty of climate variability
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    SciBlogsBy Guest Author
    5 days ago
  • Indigenous perspectives on unrestricted access to genomic data
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    SciBlogsBy Genomics Aotearoa
    6 days ago
  • Terrible luck: lockdowns on learning and youth job prospects
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    SciBlogsBy Guest Author
    6 days ago
  • Ian Powell: Does private healthcare threaten public healthcare in New Zealand?
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    Democracy ProjectBy bryce.edwards
    6 days ago
  • A rabbit-hole election debate: So do you want more avocado orchards?
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    PunditBy Tim Watkin
    6 days ago
  • LIVE: Jacinda Ardern vs. Judith Collins, First Debate
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    6 days ago
  • Hundreds of Aucklanders arrested after illegal mass gathering on Harbour Bridge
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    The CivilianBy admin
    6 days ago
  • The Looming Fight.
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    6 days ago
  • Climate Change: Moving faster
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    No Right TurnBy Idiot/Savant
    6 days ago
  • The Australian courts have had enough of refugee detention
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    No Right TurnBy Idiot/Savant
    6 days ago
  • Friction and the Anti-lock Braking System
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    SciBlogsBy Marcus Wilson
    6 days ago
  • The Inside Word: New Zealand Quarantine
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    6 days ago
  • Hard News: ASA: Let’s not talk about this
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    7 days ago
  • This is not kind
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    No Right TurnBy Idiot/Savant
    7 days ago
  • Wokies are the establishment
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    RedlineBy Daphna
    1 week ago
  • How to strengthen the post-isolation Covid rules
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    SciBlogsBy Siouxsie Wiles
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  • Neuralink and You: A Human-AI Symbiosis
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  • Liam Hehir: Our obsession with American politics
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    Democracy ProjectBy bryce.edwards
    1 week ago
  • COVID: Back to Level 1
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    1 week ago
  • Climate Change: Climate injustice
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    No Right TurnBy Idiot/Savant
    1 week ago
  • Good riddance
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    No Right TurnBy Idiot/Savant
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming Digest #38
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    1 week ago
  • Anyone for Collins?
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    1 week ago
  • Crusher’s fiscal malfunction
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    1 week ago
  • Much of the commentariat’s reporting of the most recent GDP figure was misleading and unhelpful. The prize for the stupidest remark about the GDP figure for second quarter 2020 (2020Q2) released on Thursday (17 Sept) goes to Judith Collins, whose response to Grant Robertson’s comments indicated she did not ...
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    1 week ago
  • Love and Hate as Complementary Revolutionary Acts
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    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming News Roundup #38
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  • Tax cuts for all!!! (except you, you, and you)
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    My ThinksBy boonman
    1 week ago
  • Great Waves Washing Over New Zealand
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    PunditBy Brian Easton
    1 week ago
  • New Zealand has role to play in resolving crisis on ‘geopolitical fault line’, Helen Clark says
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  • Euthanasia referendum: How to cut through the emotions
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    1 week ago
  • Why we need cameras on boats
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    No Right TurnBy Idiot/Savant
    1 week ago
  • Graham Adams: The religious right’s campaign to spike the euthanasia referendum
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    Democracy ProjectBy bryce.edwards
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  • Opportunistic looting
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    No Right TurnBy Idiot/Savant
    1 week ago
  • Uncomfortable Choices.
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  • Tony Burton: Covid and benefit payments
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    2 weeks ago
  • Talking tax: How to win support for taxing wealth
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    Closing the GapBy Tracey Sharp
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  • Getting Tough.
    Not Mucking Around: With upwards of 800 dead from the virus’s resurgence in the Australian state of Victoria, leniency is not on Premier Daniel Andrews’ agenda. The Victorian Police are cracking down hard on the protesters the Australian press has labelled "Covidiots".IMAGES OF POLICE, some in riot gear, others on ...
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  • Media Link: Nuclear strategy, then and now.
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    KiwipoliticoBy Pablo
    2 weeks ago

  • Job numbers up in August
    New data from Stats NZ today shows a rise of more than 9,000 filled jobs from July – driven mostly by the education and training sector, Grant Robertson says. Filled jobs were up 9,147 to 2.2 million in August 2020 compared with July – with 7,409 of those in education ...
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    9 hours ago
  • Māori development receives funding
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    BeehiveBy beehive.govt.nz
    12 hours ago
  • Hand-up for owners of earthquake-prone units
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    BeehiveBy beehive.govt.nz
    15 hours ago
  • PGF backing successful Māori enterprise
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    BeehiveBy beehive.govt.nz
    19 hours ago
  • Hokitika Landmark earmarked for $22m restoration
    Seddon House in Hokitika, once a hub for government on the West Coast, has been earmarked for government use once again. “Today we’re announcing a $22 million investment from the Government’s $3 billion infrastructure fund for shovel ready projects for the purchase and restoration of Seddon House in the heart of ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Town halls and war memorials in PGF renovation programme
    Town halls, war memorials and other community landmarks across the country will be renovated thanks to grants totalling just under $12.4 million from the Provincial Growth Fund. Regional Economic Development Minister Shane Jones says more than 1000 jobs are expected to be created during the renovation programme. “Town halls, other ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Minister of Foreign Affairs makes two diplomatic appointments
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    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ’s most prestigious conservation award – Loder Cup presented to Graeme Atkins
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Early help for whānau who need extra support
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Parliament to install solar and cut carbon
    Parliament is leading by example by taking action to cut its carbon footprint by installing solar and improving energy efficiency, the Minister for Climate Change, James Shaw said today. The Minister confirmed that Parliamentary Services will receive support through the Clean-Powered Public Service Fund to install solar PV and LED ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Tuvalu Language Week theme promotes community resilience in the face of COVID-19
    The Minister for Pacific Peoples, Aupito William Sio says the 2020 Tuvalu Language Week theme of “Fakatili Te Kiloga Fou” which means “Navigating the changing environment” is a call on all Pacific peoples to be strong and resilient in the face of COVID-19. “This theme is a reminder to us ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • International sport back up and running in New Zealand
    The Government is welcoming today’s announcement that the West Indies and Pakistan cricket teams will tour New Zealand this summer.  “A lot of hard work has been undertaken by sports officials including New Zealand Cricket, Netball New Zealand and government officials to ensure that international sport can return safely to ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • 1BT funds for Northland forest taonga
    Northland’s indigenous tree canopy is set to grow for the benefit of mana whenua and the wider community thanks to nearly $2 million in One Billion Trees funding, Forestry Minister Shane Jones announced today. Te Komanga Marae Trust has received more than $1.54 million to restore and enhance the native ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Better health care for West Coasters as Te Nikau Hospital officially opened
    The Government has delivered a new hospital for Greymouth and is starting work on a much needed new health centre in Westport, ensuring local communities will benefit from better access to high quality integrated health services. Today, Prime Minister Jacinda Ardern and Associate Health Minister Peeni Henare officially open Te ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government backing local with PGF loan
    A West Coast distillery will benefit from a Provincial Growth Fund investment that will enable it to expand its operations and create jobs in the town of Reefton, Rural Communities Minister Damien O’Connor and Regional Economic Development Minister Shane Jones have announced. The Reefton Distilling Co will receive a $928,000 ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Primary sector exports and jobs up again
    Primary sector exports and jobs are up again, demonstrating the sector’s underlying strength amid the COVID-19 global pandemic and US-China trade war, and supporting New Zealand’s economic recovery. Stats NZ today reported New Zealand’s merchandise exports in August were up 8.6% on a year ago, driven by an increase in ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Clean energy future for more schools
    Schools across Aotearoa New Zealand will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. The Minister has allocated $50 million from the Clean Powered Public Service Fund to replace, or convert, coal boilers in schools with clean ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Building business strength with digital tools
    New training and tools for digital commerce will give small businesses, especially in the tourism sector, the support they need to adapt and innovate in a COVID world. Tourism Minister Kelvin Davis and Small Business Minister Stuart Nash have announced details of how $20 million digital capability funding set aside ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New pest lures to protect nature
    The Department of Conservation (DOC) is investing $1.4 million to develop new predator lures that would be game-changers for trapping and surveillance towards a predator-free Aotearoa, the Minister of Conservation Eugenie Sage, announced in Christchurch today. The proposal is to develop long-life lures attractive to a range of predators—rats, mustelids ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Support for innovative Pacific education responses to COVID-19 needs
    Supporting new and creative Pacific education practices as part of our COVID-19 response and recovery is the focus of a new $28.5 million Pacific Education Innovation Fund announced today by Associate Minister of Education Jenny Salesa.  “There is already an incredible amount of innovative and creative work going on in ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Eligibility expanded for COVID-19 leave support
    The expanded scheme will cover: People who have COVID-19 like symptoms and meet the Ministry of Health’s criteria, and need to self-isolate while awaiting the results of a COVID-19 test. People who are directed to self-isolate by a Medical Officer of Health or their delegate or on advice of their ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Seasonal work visa available to more people
    The Government is putting in place a range of immigration policy changes to help fill labour shortages in key industries while ensuring New Zealanders, who have lost jobs due to COVID-19, have the chance to find new employment. “Two key sectors we are moving to help are horticulture and wine ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • More border exceptions for critical roles
    The Government has established class exceptions for border entry for a limited number of veterinarians, deep sea fishing crew, as well as agricultural and horticultural machinery operators. “Tight border restrictions remain the backbone of the Government’s border strategy to protect New Zealand against COVID-19 and ensure New Zealand citizens and ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Crown will not appeal Dodds v Southern Response decision
    The Crown will not appeal the Court of Appeal decision in the Dodds v Southern Response case, Grant Robertson announced today. “Southern Response will be paying the damages awarded by the Court to Mr and Mrs Dodds shortly. The Crown was already meeting their legal costs for this appeal. “The ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Crucial PGF investments for Northland
    The Provincial Growth Fund is investing nearly $30 million in a diverse range of projects that will create immediate and long-term jobs and lift economic and social outcomes for Northland and its people. Deputy Prime Minister Winston Peters and Regional Economic Development Minister Shane Jones made the announcement today in ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • $27million investment in global vaccine facility
    The Coalition Government has committed to invest $27 million in COVID-19 vaccine development through the global COVAX Facility, Foreign Minister Winston Peters announced today. “The COVAX Facility is a key part of our COVID-19 Vaccine Strategy to obtain safe and effective vaccines. It allows us to invest in a high-quality, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government backing Māori landowners
    The Government will provide up to $1.69 million through the One Billion Trees programme to Māori landowners to make their whenua more productive through the planting of forests, both native and exotic, and improve economic and environmental outcomes, Forestry Minister Shane Jones has announced. “Around 1.5 million ha of land ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New tools to make nature more accessible
    People planning to head outdoors now have a resource that lets them know how accessible an area is for people with varying levels of mobility, Minister of Conservation Eugenie Sage announced today. The Halberg Foundation, Sensibel, and the Department of Conservation (DOC) have launched Accessibel, a new tool which helps ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • PGF makes Māori history more accessible
    One of the most significant battle sites of the 1860s Land Wars will receive $2.96 million from the Provincial Growth Fund to improve the site and help tell the New Zealand story to visitors, Māori Development Minister Nanaia Mahuta and Regional Economic Development Minister Shane Jones have announced. Nanaia Mahuta ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Making it official: The journey of te reo Māori | Kia whakapūmautia: Ngā piki me ngā heke o te r...
    The journey towards recognising Māori as an official language and taonga has been captured as a web series and launched today during Te Wiki o te Reo Māori, announced Associate Arts, Culture and Heritage Minister Carmel Sepuloni. “Te reo Māori is a living language, and understanding its significance, and pathways to ...
    BeehiveBy beehive.govt.nz
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  • Better-than-forecast GDP reflects decision to protect New Zealand
    Today’s better-than-forecast GDP figures show the expected impact of the decision to act quickly to protect New Zealanders from the global COVID-19 pandemic. GDP fell 12.2% in the June quarter from March, reflecting decisions to close New Zealand’s borders and enter Alert Level 4. “This result was better than the ...
    BeehiveBy beehive.govt.nz
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  • Boost for COVID-19 related Pacific education needs
    The Government is investing $39.7 Million over four years to support the educational needs of Pacific learners and families in the regions hardest hit by COVID-19, with Auckland getting an immediate boost, Associate Minister of Education Jenny Salesa says.   “Like all New Zealanders Pacific families want learners to do well ...
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    2 weeks ago
  • More resources for kiwi conservation
    New Zealand’s goal of 100,000 kiwi by 2030 is being helped by an extra $19.7 million in funding to accelerate iwi and community efforts to protect kiwi, Minister of Conservation Eugenie Sage announced. “$19.7 million of Jobs for Nature funding is being invested in kiwi conservation activities including increased predator ...
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    2 weeks ago
  • Improving access to affordable electricity
    Ensuring New Zealanders can get the best deal on their electricity takes a step in the right direction today with the South Island launch of the EnergyMate pilot run by the Electricity Retailers’ Association, says Minister of Energy and Resources, Dr Megan Woods. EnergyMate is an industry-led programme providing coaching ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government achieves 50 percent women on state boards
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    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Record transport investment to help economic recovery and save lives
    Transport Minister Phil Twyford released today the final Government Policy Statement on land transport (GPS) 2021 which outlines the planned $48 billion investment in services and infrastructure over the next decade. “The final GPS supports our Government’s five-point plan for economic recovery by confirming our record investments in transport infrastructure ...
    BeehiveBy beehive.govt.nz
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  • Advancing clean energy technology
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  • Major milestone reached in Pike River Re-entry
    The critical area for forensic examination known as Pit Bottom in Stone has been reached in what is a major milestone for the Pike River re-entry project, Minister Responsible for Pike River Re-entry Andrew Little announced. “The infrastructure located in Pit Bottom in Stone is of very significant interest in ...
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  • Economic recovery guides Govt response to retirement income policy review
    The Government is working on how New Zealand’s retirement income policies and settings can best support Kiwis in light of the COVID-19 economic recovery, with the help of the Retirement Commissioner’s latest review, Commerce and Consumer Affairs Minister Kris Faafoi said. “The Retirement Commissioner’s three-yearly review into New Zealand’s retirement ...
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  • Iwi community hub opens in Murupara
    A new digital hub and development centre in Murupara will be instrumental in growing the region’s productivity, said Under-Secretary for Regional Economic Development Fletcher Tabuteau at the official opening of two community initiatives today. “I’m pleased to be here celebrating a significant milestone for two projects set to make a ...
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