web analytics

Mythbusting: ‘Book value’ & ‘over the odds’

Written By: - Date published: 10:14 am, May 12th, 2008 - 32 comments
Categories: assets, john key, slippery - Tags:

In an attempt to find a non-ideological ground to justify opposing the Government’s buyback of the rail system, John Key and others have been claiming that the $665 million price-tag is ‘over the odds’ and $200 million in excess of Toll’s ‘book value’ for the assets bought. What do these two terms mean and what do they say about the value of the buyback?

Book value is ‘The value at which an asset is carried on a balance sheet. In other words, the cost of an asset minus accumulated depreciation.’ So, in the case of Toll, the book value is what you would get for the trains and wagons if you sold them individually. It is not the value of the company as a going concern. A company is usually worth a lot more than the mere saleable value of its assets. After all, the company is not just in the business of selling its assets; it is in the business of doing things with those assets to generate a profit. Telecom, for example, has a book value of $3.6 billion, if it sold of all the stuff it owns it thinks it would get $3.6 billion but Telecom is worth more than the sum of it’s parts: if you wanted to buy all 1.8 billion Telecom shares today it would cost you $7 billion.

The Government is getting more than just trains from Toll it is getting a working, profitable company, with an organisation, existing customers and suppliers, contracts, and staff. You determine the value of a company by looking at the present value its expected future profits (and any other gains that may come to you through owning the company). Book value is simply not a relevant to that calculation. John Key knows that, he’s the moneyman, remember, but he’s hoping you don’t.

Search google for ‘over the odds’ and the first references you find are to gambling but it’s also used in a related activity currency speculation. When Mr Key was a currency speculator his job was to estimate the odds of a currency trade being a certain value at a certain time. If a currency speculator pays more for a currency trade than is justified even if currency moves as hoped, then they pay above the odds just like a bet on a horse that costs more than you get back if you win the bet. Again, that has nothing to do with the book value of the rail stock and nothing to do with the price one should pay for a company, it is a gambler’s/currency speculator’s term.

And again, slippery John is hoping you will be wowed by the fancy-sounding language and not look at what he’s saying actually means. Because, as so often, what he is saying actually means nothing.

[PS. The Right is now trying to make a deal over a $200 million loan that the Government may be getting as part of the rail company. No information is available on whether the loan will actually be part of the deal and the interest-rate on it (the value of any loan depends on it’s interest), so it’s impossible to say what it costs. Moreover, most companies hold debt, it’s part of business, and the rail was a profitable operation even with this debt, so it does not change the logic of the deal. More hollow arguments that prey on ignorance.]

32 comments on “Mythbusting: ‘Book value’ & ‘over the odds’ ”

  1. mike 1

    Looks like the 665m is now 885m.
    Paul Henry had Clark squirming this morning when she said she had no knowledge of the extra 200m.
    Quite an expensive election bribe that just might as Henry says bite them in the arrrse.

  2. higherstandard 2

    If you want a run down on examples of politicians saying nothing I recommend the following link when you have 10 minutes to spare.

    http://www.medialawjournal.co.nz/?p=103

  3. higherstandard 3

    Mike if true it’s a sad commentary on the people that are negotiating these contracts for the government

  4. So Helen has no knowledge of the extra 200 million?, perhaps she is just confused.

  5. AncientGeek 5

    Steve: you forgot to mention the existing customer relationships. When companies are sold that is usually the biggest asset. After all that is where you make money from.

    Book value is the absolute worst case. It is what you should be able to get if you just sell the assets. In most cases the client lists on their own even for dead companies are often worth more than the assets.

    That isn’t the case here. We’re talking about a running profitable company. Buying it is a strategic decision based on future transport needs in a higher energy cost environment.

    To put it mildly the nats are shading the truth by performing the lie of omission in their criticism. From where I’m looking it looks like a relative bargain for the state. But of course Toll had this wee weak point – they haven’t been paying their rent.

  6. see my PS above regarding this supposed loan.

    Like book value, net financial assets (savings minus loans) has little to do with the value of a company. What matters is the present value of expected future gains (both profits from the company itself and other benefits accuring to the owner) – book value and financial assets only inform those projections, they are not in themselves ways of measuring the value of a business operation.

  7. AncientGeek, right you are, I mentioned contracts but existing relationships should be there –

    it is the fact that a company has people who come and buy what it sells that makes it worth owning, not the assets it uses in the process

  8. AncientGeek 8

    I’d guess that the government will be putting TranzRail in as a part of the successful SOE model. That has proved to be quite effective in producing profitable enterprises once the capital expenditures have been done. Less opportunity for politicians to screw around with the management.

    It has proved to be an effective model. The state as a shareholder is able to inject funds for longer term investments than the market is capable of recognizing. Fits the role of government in developing infrastructure.

  9. AncientGeek 9

    hs:

    If you want a run down on examples of politicians saying nothing I recommend the following link when you have 10 minutes to spare.

    Excellent link.

    I was trying to pick JK’s favorite strategy for dodging awkward questions as he isn’t represented in the collection of quotes.

    I think it is number four – the Smother Tackle. Say something that sounds good, but actually says zilch. I loved this one from Shipley during the start phase of East Timor…

    Is it likely that the defence forces will be put on a 24 or 48 hour alert within days?

    We have a 24 hour alert for the C130s that may be required to evacuate people out of Dili. They are already on 24 hour alert, these are the people associated with the two aircraft and if they are required they are in a position to go at any time. If we are required to join a force we can bring the timing down depending on the request. I don’t want to commit to a 24 hour because I have not discussed the wider allocation of troops on that time basis at this stage. What I can tell you is that New Zealand has been preparing for some months to see that we not only have the people but also the equipment ready to make a contribution in this area

    As the writer says:-

    Extraordinary. Notice that the answer to that question was, “I don’t know’.

    That sounds like John Keys favorite technique – saying nothing nicely.

  10. r0b 10

    Thanks for this post Steve, very useful to have posts like this on the languages of economics and accounting. In fact, very useful to have “educational” posts in general on how stuff works (could be completely debate / policy free).

  11. randal 11

    you should have been here on monday…matthew hooton on RNZ this morning was just plain bad tempered…he knows he is going to loose!

  12. Billy 12

    “Moreover, most companies hold debt, it’s part of business…”

    But it’s not usual in a situation like this for the purchaser to buy the company. You would expect it to buy the assets and leave the vendor to clear up the debt.

  13. Santi 13

    As a Toll shareholder I must congratulate that “sucker” Michael Cullen for the premium price he paid. It could’ve been higher, but I’m not complaining.

    Ah, the beauty of having a socialist government adding thousands of dollars to my personal wealth.

  14. Billy 14

    “…he knows he is going to loose.”

    Are you sure you went to university, randal?

  15. Tane 15

    Ah, the beauty of having a socialist government adding thousands of dollars to my personal wealth.

    We can confiscate it if you prefer, but that’s generally frowned upon by the right.

  16. Santi – you’re not kidding anyone about your personal wealth as you are clearly too dumb to count to 100 let alone accrue significant capital. Oddly that’s why I’ve never understood your rightwing sentiments as it’s the left that are ideologically inclined to helping out disadvantaged types such as yourself…

  17. higherstandard 17

    Sod

    Apparent stupidity is no barrier to accruing wealth and power the current leader of the USA is a fairly good example.

  18. Phil 18

    A couple of points…

    Steve says;
    “The Government is getting more than just trains from Toll it is getting a working, profitable company, with an organisation, existing customers and suppliers, contracts, and staff. ”

    1)The single most profitable component of the enterprise group – the road freight business – remains in private hands.
    2)Part of the agreement includes Toll recieving significant ongoing benefit in discounted rent and other operating expenses; yet more lost revenue to the government.

  19. Noone’s denying those are costs that are part of the deal, Phil, (and if they weren’t the cash price would be higher) but you’ll agree book value is just a distraction in this debate- you can’t say ‘Toll’s book value was $400 million, they paid $665 million, therefore they paid $265 million too much’ because that’s simply not how you value a business.

    captcha: ‘$7,388,099,416 eases’. Yup, I bet it eases a lot.

  20. higherstandard 20

    For those with a wish to learn more on valuing a company.

    http://pages.stern.nyu.edu/~igiddy/valuationmethods.htm

  21. ghostwhowalks 21

    Sure Toll gets a benefit with ‘cheap rent’ but they would likely have an obligation in return to use rail for the truck business where possible. Toll trucking would say have a contract to deleiver beer from an Aucckland brewery to the SI. And they would use rail for most of the journey.

    As for the mystery $200 million, Where is the need for government funding to repay this. Toll Rail is a profitable business and it would be normal to have debt on its books and pay interest. This wouldnt be from the taxpayers account.

    I see a concerted effort to blight this buyback based on dubious reporting, they know the public likes it but want to wear down that support by a BRL agit prop campaign.

    AS for the Aussies, who where the ones about to sell of Qantas cheaply to an overseas consortium. One very small fund trader dug his heels in over the poor deal and it just failed to get shareholder approval ( in spite of bending the rules). That fund trader no longer has a job, BTW

  22. j 22

    Not really familar with Toll but didn’t the govnt pay them a subsidy to operate. If they were paid a subsidy then could the rail operation really be described as profitable.

    If you could normalize the earnings by adding back capital expenditure (which apprently they skimped on) and subtracting the govnt we would have a better idea of the true value based on a discounted cashflow basis.

    Congrats to toll shareholders on getting a 4% rise on the day of the sale. The market knows who won on the day.

  23. ghostwhowalks 23

    j the ‘market’ is a way of getting a price not a crystal ball. Thats why so many companies went private ( while the credit boom lasted) since the ‘market’ undervalued them.

    But in answer to your question Toll was to pay Govt (Ontrack) a price to run the trains ( which are leased) on the tracks which the govt had bought previously for $1.

  24. This isn’t much of a business, it couldn’t pay one of its core costs in full (track access charges). Nobody can pretend this is a viable going concern. Parts of it are, but the government was unwilling to make Toll – a monopoly operator of the rails the state owns – to pay what it owed it. The government regularly calls in debt collectors to truck companies to recover unpaid Road User Charges using its (and local authority) roads.

    Again it’s such a great deal, nobody else bought it. It is purely ideological to treat rail as deserving of a subsidy road does not get. A better answer would be to charge trucks differentially by route (reflecting differing road costs), but then that’s harder to sell to the public – but would address the “are rail and road treated the same” argument.

  25. Luke C 25

    Trucks clearly do not pay the full cost of operating on the roads.
    They cause all the road damage (1 truck = 10,000 cars), and necessitate the need for many of the road improvements such as grade easements and passing lanes.
    Toll could have paid the access charges and the business would have survived. However certain lines such as Napier – Gisborne, Northland, and maybe parts of BOP would have closed which would have been unacceptable. Once lines are closed they can degrade quickly, and to put them back into service in a decade would be very expensive.
    These lines may not be uneconomic currently, however they all have good future prospects from forestry and other freight.
    Looking at Napier Gisborne, the road is terrible and 100’s of millions could be spent on it and it would still be poor. Therefore it makes good sense for the govt to slightly subsidise the operation of the railway to keep the trucks off the road, and keep the road safe for cars.

  26. Pascal's bookie 26

    Looking at Napier Gisborne, the road is terrible and 100’s of millions could be spent on it and it would still be poor. Therefore it makes good sense for the govt to slightly subsidise the operation of the railway to keep the trucks off the road, and keep the road safe for cars.

    Exactly right. It’s pragmatism. The only reasons not to are the normative ideological belief that govt. should only be in the business of locking people up and shooting foreigners, and the more mystical belief that govts cannot operate efficiently in the market place, due to their invisible government germs.

  27. Phil 27

    “They cause all the road damage (1 truck = 10,000 cars)…”

    I’ve heard this line repeatedly from the pro-rail side of the argument for a while now, but I have never seen any evidence to support it. Where does this claim come from?

    “… and necessitate the need for many of the road improvements such as grade easements and passing lanes ”

    Sure, because without trucks on the road there wouldn’t be any need what-so-ever for passing lanes or better road design. None at all, nada, zip, zilch…
    Go find a dictionary and look up “scapegoat”

  28. Pascal's bookie 28

    ” and necessitate the need for many of the road improvements such as grade easements and passing lanes ‘

    “Sure, because without trucks on the road there wouldn’t be any need what-so-ever for passing lanes or better road design. None at all…”

    When you double checked the definition of scapegoat Phil, did you notice one of the def’s for ‘Strawman’ a few pages later…

  29. Higherstandard 29

    Is there significant amounts of freight traffic between Napier and Gisborne ?

  30. j 30

    “j the ‘market’ is a way of getting a price not a crystal ball. Thats why so many companies went private ( while the credit boom lasted) since the ‘market’ undervalued them.”

    Not true at all. Companies went private during the credit boom because it was cheaper to replace equity with debt because the cost of capital of debt is lower than that of equity, and leverage them up and allow the equity holders to cashout through share buybacks, special dividends and IPOs. The private equity boom was simply another form of the leverage buyout.

    Markets are sometimes wrong or right but I didn’t see a whole lot of other companies bidding for the railway assets. If it is a profitable enterprise and given the worldwide mania about infrastructure I would have to say that the lack of competitors indicates that toll reeled their bondy in.

  31. Luke C 31

    “One 80,000-pound (36 tonnes) truck may do as much wear-and-tear damage to a highway as 9,600 passenger vehicles.”
    http://www.fleschnerlaw.com/terre-haute-truck-accident-lawyer.php
    Note that NZ allows 44 tonne trucks.
    If have done a few papers in road engineering and you learn that when designing roads you only take into account the number of trucks using the road, because the damge caused by cars is so insignificant.
    Something to do with the fourth power being taken of the weight of the truck when calculating damage.

  32. Matthew Pilott 32

    HS – I couldn’t say, but off the top of my head I’m not sure how else stuff gets to and from Gisborne. Apart from boat, but I haven’t heard much of Gisborne’s port.

Recent Comments

Recent Posts

  • Rotuman Language week affirms language as the key to Pacific wellbeing
    The first Pacific Language Week this year  makes it clear that  language is the key to the wellbeing for all Pacific people said Minister for Pacific Peoples, Aupito William Sio. “This round of language  weeks begin with Rotuman. As I have always  said language is one of the pillars of ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Budget delivers improved cervical and breast cancer screening
    Budget 2021 funds a more effective cervical screening test to help reduce cervical cancer rates A new breast screening system that can proactively identify and enrol eligible women to reach 271,000 more people who aren’t currently in the programme. Budget 2021 delivers a better cervical screening test and a major ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • NZ-France to co-chair Christchurch Call Leaders’ Summit
    New Zealand and France will jointly convene the Christchurch Call Community for a leaders’ summit, to take stock of progress and develop a new shared priority work plan. Prime Minister Jacinda Ardern and President Emmanuel Macron will co-chair the leaders’ meeting on the 2nd anniversary of the Call, on 14 ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • New South Wales travel pause to be lifted tomorrow
    COVID-19 Response Minister Chris Hipkins says the current travel pause with New South Wales will lift tomorrow – subject to no further significant developments in NSW. “New Zealand health officials met today to conduct a further assessment of the public health risk from the recently identified COVID-19 community cases in Sydney. It has been determined that the risk to public ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • March 15 Collective Impact Board appointed
    The voices of those affected by the March 15 mosque attacks will be heard more effectively with the establishment of a new collective impact board, Associate Minister for Social Development and Employment Priyanca Radhakrishnan announced today. Seven members of the Christchurch Muslim community have been appointed to the newly established Board, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • More young Kiwis supported with mental health and addiction services
    Nearly quarter of a million more young New Zealanders will have access to mental health and addiction support in their communities as the Government’s youth mental health programme gathers pace. New contracts to expand youth-specific services across the Northland, Waitematā and Auckland District Health Board areas have been confirmed, providing ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New hospital facilities mean fewer trips to Auckland for Northlanders
    Northlanders will no longer automatically have to go to Auckland for lifesaving heart procedures like angiograms, angioplasty and the insertion of pacemakers, thanks to new operating theatres and a cardiac catheter laboratory opened at Whangārei Hospital by Health Minister Andrew Little today. The two projects – along with a new ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Fair Pay Agreements to improve pay and conditions for essential workers
    The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today. Fair Pay Agreements will set minimum standards for all employees and employers in an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Establishment of the new Māori Health Authority takes first big step
    Sir Mason Durie will lead a Steering Group to provide advice to the Transition Unit on governance arrangements and initial appointments to an interim board to oversee the establishment of the Māori Health Authority. This Group will ensure that Māori shape a vital element of our future health system, Minister ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Cycle trails move up a gear in Central
    Work on new and upgraded cycle trails in Queenstown, Arrowtown and Central Otago is moving up a gear as two significant projects pass further milestones today. Tourism Minister Stuart Nash has announced new funding for the Queenstown Trails Project, and will also formally open the Lake Dunstan Trail at Bannockburn ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Picton ferry terminal upgrade consent fast-tracked
    The planned upgrade of the Waitohi Picton Ferry terminal has been approved under the fast-track consenting process.  Environment Minister David Parker today welcomed the decision by the expert consenting panel to approve the Waitohi Picton Ferry Precinct Redevelopment Project.    The project will provide a significant upgrade to the ferry facilities ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Quarantine Free Travel with New South Wales paused
    COVID-19 Response Minister Chris Hipkins has announced his intention to pause Quarantine Free Travel from New South Wales to New Zealand while the source of infection of the two cases announced in Sydney in the last two days is investigated.  Whole genome sequencing has linked the case yesterday to a recent ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Covid-19 immigration powers to be extended
    The passing of a bill to extend temporary COVID-19 immigration powers means continued flexibility to support migrants, manage the border, and help industries facing labour shortages, Immigration Minister Kris Faafoi said. “Over the past year, we’ve made rapid decisions to extend visas, vary visa conditions and waive some application requirements ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • “Supporting a Trade-Led Economic Recovery”
    Trade Policy Road Show SpeechManukau, Auckland   Kia ora koutou – nau mai, haere mai ki Manukau, ki Tāmaki.   Good morning everyone, and thank you for this opportunity to discuss with you current global challenges, opportunities and the Government’s strategy in support of a trade-led recovery from the economic ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Building consent numbers at an all-time high
    A record 41,028 new homes have been consented in the year ended March 2021 March 2021 consent numbers the highest since the 1940s Record number of new homes consented in Auckland The number of new homes consented is at an all-time high, showing a strong and increasing pipeline of demand ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Whānau-centred support for parents and tamariki
    Up to 60 whānau in Counties Manukau will be supported through the first three years of their parenthood by a new whānau-centred model of care, said Associate Health Minister, Hon Aupito William Sio. “Providing this support to young parents is something we have to get right. It’s a priority both ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ backs moves to improve global access to COVID vaccines
    New Zealand welcomes and strongly supports the announcement made by the United States Trade Representative to work for a waiver of IP protections on COVID-19 vaccines at the WTO, Trade Minister Damien O’Connor said. “New Zealand supports equitable access to COVID vaccines for all. No one is safe from the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Tourism communities: support, recovery and re-set plan
    TIHEI MAURI ORA Tuia te whakapono Tuia te tumanako Tuia te aroha Tuia te hunga ora Ki te hunga ora Tihei Mauri ora Ka nui te mihi ki a koutou Tena koutou, tena koutou, tena koutou katoa. Thank you, Hilary and thank you, Chris, and everyone at TIA for this ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Support, recovery and re-set plan for tourism communities
    Five South Island tourist communities targeted for specialist support Pressure on Māori tourism operators and Conservation facilities recognised Domestic and international-facing tourism agencies put on more secure footing Long-term plan to re-set tourism with a focus on sustainability, industry standards and regional economic diversification A plan to ensure the immediate ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech on NZ Rail Plan
    Check against delivery E ngā mana, e ngā reo, e ngā karanga maha o te wa, tēnā koutou, tēnā koutou, tēnā tātou katoa. Ki ngā mana whenua o Taranaki Whānui anō nei aku mihi ki a koutou. Nōku te hōnore kia haere mai ki te whakanuia tēnei huihuinga whakahirahira. Nō ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government hits massive milestone in Violence Prevention & Elimination
    Minister for Family and Sexual Violence Marama Davidson announced a major milestone at a hui in South Auckland today, with the launch of the national engagement process on the prevention and elimination of family and sexual violence. “There is no room for violence in our lives – there is no ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Fee waiver extended for conservation tourism businesses
    Tourism businesses operating on public conservation land will have another six months of fees waived to help them adjust to the downturn in international visitors in the wake of the COVID-19 pandemic, Acting Minister of Conservation Dr Ayesha Verrall has announced. "We acknowledge it has been a difficult year for ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • ‘Lua Wave’ to future-proof Pasifika Festivals in Aotearoa
    Pasifika festival organisers will receive additional support to adapt to the COVID-19 environment thanks to the Government’s newly launched ‘Lua Wave’ component of the Pasifika Festivals Initiative, Minister for Arts, Culture and Heritage Carmel Sepuloni announced today. “This initiative has not only been to support festival organisers to recover from ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Crown accounts show confidence in Govt economic plan
    The Government’s financial accounts continue to reflect the resilience of the economy and confidence in the Government’s economic recovery plan. The Crown accounts for the nine months to the end of March 2021 show both OBEGAL and the operating balance remain better than forecast in the Half Year Economic and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Energy Trusts of NZ Autumn Conference
    It’s a pleasure to be here today. Thank you Karen [Sherry] for the introduction and thanks to the Energy Trusts Executive for inviting me to speak at tonight’s event. It is an exciting time to come to speak to trustees of distribution companies. For many decades the electricity industry was ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New partnership to grow Māori success in STEM
    A new partnership with the Pūhoro STEM Academy will support thousands more rangatahi Māori to participate and succeed in the fields of science, technology, and innovation, Associate Education Minister Kelvin Davis announced today. Since 2016, Pūhoro has worked with Māori students to build their capability and create pathways to employment ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Rail builds platform for economic recovery
    Transport Minister Michael Wood and State-Owned Enterprises Minister Dr David Clark today released the Government’s long term vision for a sustainable rail network that supports our economic recovery. New Zealand Rail Plan lays out how the Government is building a resilient, reliable and safe network, as well as the indicative ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ and UK agree to lift the pace of free trade talks
    New Zealand and the United Kingdom have agreed to rapidly lift the tempo of talks, as the two countries enter a new phase in free trade negotiations, Trade and Export Growth Minister Damien O’Connor announced today. “UK Secretary of State for International Trade, Liz Truss, and I spoke today about ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Counter-Terrorism Legislation Bill passes first reading
    The Counter-Terrorism Legislation Bill has passed its first reading and will now be considered by Parliament’s Justice select committee. “The Bill updates and improves New Zealand’s counter-terrorism legislation and ensures that the right legislative tools are available to intervene early and prevent harm,” Minister of Justice Kris Faafoi said. “The ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Statement on The Speaker and Annual Review Debate
    “The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. “Any investigation of claims of sexual assault should be in a manner ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Govt motoring towards zero-carbon buses and protecting drivers’ conditions
    Transport Minister Michael Wood is seeking feedback on options for the next phase of the Public Transport Operating Model (PTOM) review to better protect bus drivers’ pay conditions, and also achieving the Government’s target of fully decarbonising the public transport bus fleet by 2035. Michael Wood said investing in our ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Drop in unemployment shows Govt economic plan is working
    The Government’s economic recovery plan continues to be reflected in the labour market, with more people in work and unemployment falling. Stats NZ figures show employment rose by 15,000 in the March quarter, with 14,000 more women in work. The unemployment rate fell from 4.9 percent to 4.7 percent. This ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government sets pay and workforce expectations for the Public Sector
    The Government’s Workforce Policy Statement issued today sets out its expectations for pay and employment relations in the Public Sector, the Minister of Finance and Minister for the Public Service say. “New Zealand has had an exceptionally successful health and economic response to COVID-19. This has been supported by the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Author Ben Brown is New Zealand’s first Te Awhi Rito Reading Ambassador
    Lyttleton writer Ben Brown (Ngāti Mahuta, Ngāti Koroki, Ngāti Paoa) will be New Zealand’s first Te Awhi Rito Reading Ambassador, promoting the value of reading for children and young people, Internal Affairs Minister Jan Tinetti announced today. A poet and award-winning author, Ben Brown writes books, non-fiction and short stories ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Celebrating New Zealand’s firefighters this International Firefighters’ day
    With two fire stations already complete, and building underway on 16 fire stations around the country, today we celebrate International Firefighters’ Day for the important role firefighters have in keeping communities across the country safe, says Minister of Internal Affairs, Jan Tinetti. The work is progressing due to Government funding ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Ron Brierley knighthood to go
    Ron Brierley has written to the Clerk of the Executive Council to tender his resignation as a Knight Bachelor. The Queen has been informed. The forfeiture follows the Prime Minister initiating the process to remove his Knighthood. The Clerk of the Executive Council wrote to him on 6 April 2021 ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Employment boost for rural communities
    The Government is continuing to create opportunities for at-risk rangatahi overcome barriers to employment, education or training with the next tranche of He Poutama Rangatahi programmes, Minister for Social Development and Employment Carmel Sepuloni announced today. “We’re focused on supporting rangatahi to get what they need to progress in the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pre-Budget speech to Wellington Chamber of Commerce
    Thank you for the invitation to speak today, it is great to be here.  I mean that both sincerely and literally. For this equivalent speech last year I took part virtually, beaming in from the Beehive Theatrette with only a socially distanced press gallery bearing silent witness. You are a ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Budget 2021 reprioritises nearly $1 billion
    The Government’s strong pandemic response and the better than expected economic recovery means not all the money allocated in the COVID-19 Response and Recovery Fund has been spent, Grant Robertson said in his annual pre-Budget speech to the Wellington Chamber of Commerce this morning. “As part of Budget preparation I ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech on Digital Identity Trust Framework
    I'd like to start by thanking Graeme, David and Ben from NZTech and Digital Identity New Zealand for inviting me to speak to you. I’m so sorry I can’t be there in person, but I want to acknowledge those of you who are, including some of this country’s top tech ...
    BeehiveBy beehive.govt.nz
    6 days ago