National’s lolly scramble tax cuts

Written By: - Date published: 8:34 am, September 19th, 2020 - 55 comments
Categories: covid-19, Economy, election 2020, health, Judith Collins, paul goldsmith, tax, uncategorized - Tags:

What a surprise!  What does a right wing party do when it is facing annihilation but promise tax cuts that favour the rich, even though a month ago it said it would not.

From Thomas Coughlan at Stuff from August 6 this year:

It has been an eventful week for Goldsmith. He’s faced down attacks from the Government over his goal of reducing New Zealand’s core Crown debt-to-GDP ratio to 30 per cent in a decade – attacks Goldsmith labelled as “scaremongering”. Then, on Wednesday morning, Goldsmiths’ leader, Judith Collins ruled-out tax cuts for National’s election platform

Goldsmith had been working on a tax package with former leader Simon Bridges. The part that got announced was a plan to index tax brackets to wage growth, stopping “bracket creep”, which saw people’s taxes rise as wage inflation put them into ever higher tax brackets.

The other part of that plan involved tax cuts and it’s been shelved for now. Goldsmith believes there’s simply too much borrowing to justify it.

“I’m sure we will have an opportunity to do that down the line,” Goldsmith said.

But with the Government slated to borrow $60b over the course of the next year, the Government needs revenue.

“These are eyewatering sums,” Goldsmith said of the borrowing, nothing that at the peak of the lockdown the Government was borrowing about a billion dollars – the equivalent of the Pharmac budget – every four days.

But while tax cuts may be off the table, its only for the time being.

“Once we get the economy up and running again, New Zealanders can be assured that the National party will always be looking for opportunities to reduce the tax burden,”

Fast forward to yesterday when National announced that it would bring in tax cuts.  It appears that sub 30% polling has persuaded National that it should reverse its former position.  Even if the promised cuts are temporary.  And it brought out a tax calculator.  This has been done before.  It worked in the past but we live in interesting times.

We are in the middle of a pandemic and the Government has already shelled out tens of billions of dollars to protect jobs and make sure the health response was up to scratch.

Which it has done, rather successfully.  With luck it may be that we have seen off the second community outbreak of the disease.  And the Government is getting ready for the next wave.   Future waves will occur.  We need to make sure we have the resources ready for when the next one happens.

And debt is piling up.  This week’s PREFU suggested that in the short term things are looking better than previously anticipated.  Unemployment is not as bad as Treasury thought and the rebound in growth is better than anticipated.  But longer term things look grimmer.  It will take the world longer to bounce back to business as usual.  Air travel and tourism will be screwed for longer than we thought.  The environment may thank us for this but the bean counters will not.

Judith described the PREFU as catastrophic.  You would think that she would stick to her earlier announced position.

So what does a responsible political party do?  Make sure that the state has the resources available so that it can meet the next wave and resource the health response or engage in a lolly scramble?

National chose the lolly scramble.  Even though previously it said it would not.

This is a sign of desperation, an attempt to preserve the support they have rather than put them into a position where they could win power.  I can confidently say that the average kiwi prefers that the Government continues to do its job, rather than have enough for a couple of cups of extra coffee each week.

It has worked in the past but this time I don’t think so.  Appealing to kiwi’s better sense is currently much more potent than appealing to their greed.

55 comments on “National’s lolly scramble tax cuts ”

  1. PsyclingLeft.Always 1

    In your Link…

    "His elevation to the coveted finance portfolio raised eyebrows in Wellington. He's possibly the most libertarian, or Right-wing person to hold the shadow finance portfolio. "

    Yea we've had those before. And his connections with Banks,Brash et al should raise alarms from all NZ (apart from the Few)

  2. Dennis Frank 2

    Election bribes are traditional. So are conservatives. So we expect this. JC's ruse of announcing National would not campaign on tax cuts was a momentary lapse into innovation. Then she remembered it's a woman's prerogative to change her mind – traditional saying. So back to the future again.

    Farrar: "This provides New Zealanders with a real choice – a Government that will help people through the tough times by temporarily reducing taxes, or a Government that will increase taxes." https://www.kiwiblog.co.nz/2020/09/national_promises_tax_cuts_for_16_months_to_help_families_through_covid_recovery.html

    Buying votes is a natural consequence of blending democracy & capitalism. Presuming pollsters are still sampling, closing off mid-week to enable public release next Friday, we'll find out how many centrists chose the money instead of the bag…

    • dv 2.1

      Farrar: "This provides New Zealanders with a real choice – a Government that will help people through the tough times by temporarily reducing taxes, or a Government that will increase taxes."

      YES Farrar those people earning over 180k pa (ONLY $3500 a WEEK Geez) will be REALLY struggling. Shame on Labour

    • mpledger 2.2

      They are not after centrists with this policy, they are trying to buy back the people who fled to Act.

      • Dennis Frank 2.2.1

        You could be right. I've been thinking since ACT approached the threshold that there's more going on than just tacit creation of a coalition partner that's not dependent on Epsom. Next poll shows ACT dropping back to 3% would prove it.

        • mikesh 2.2.1.1

          It seems to me that Epsom may consider voting for Goldsmith this time, thinking that ACT, on 6.5% will make it into parliament anyway, while Goldsmith may not get in as a list MP if National finishes with an overhang. In that case it would only need ACT to fall below 5% to find themselves out of parliament.

          • Dennis Frank 2.2.1.1.1

            Think you've got logic on your side but could go either way. Nats seeking to bolster ACT vs Nats seeking optimal brand strength via status quo. Next poll will probably show them close to the threshold, so waverers will require a tip from head office!

  3. Tricledrown 3

    Tax cuts for the well off Crumbs for the majority,National don't know the difference between the average wage and the median wage.

    National are targeting mainly National voters with a short term bribe.Much of that money will end up in speculative investments such as property as the well off don't need to spend all of their money.

    The best way to stimulate the economy would be a flat payment say $50 dollars a week then those on incomes under the average wage will spend that money in the economy.

    • Draco T Bastard 3.1

      Tax cuts for the well off Crumbs for the majority

      National will be looking for a way to sweep up the crumbs.

      National don't know the difference between the average wage and the median wage.

      And they don't want to know. All they consider worth knowing is who's rich and can be brought onto their side.

      The best way to stimulate the economy would be a flat payment say $50 dollars a week then those on incomes under the average wage will spend that money in the economy.

      More than likely. In fact, that's pretty much the reason why a UBI would work.

      But National sees money going out to poor people as being theirs and so, in their minds, it should all be going to them. So, they're supportive of the government borrowing/creating money and having it going straight out to businesses but not of money going out to poor people even though that money would then be spent at businesses.

  4. Jester 4

    I actually think its a smart move by National to finally address the 'bracket creep'. Nats should have done it back in 2015 or so, and I think Labour should too. The >$70k top tax rate has been there since at least 2009. I think this would have been better than raising the minimum wage rate even. Paying 30% or 33% tax on income over $48k is way too high.

    Labour should raise the brackets and bring in other higher rates for high earners. eg. 33% applies after say $100k, 36% after say $150k and 39% after $180k or something like that.

    • Tricledrown 4.1

      Jester we have some of the lowest taxes in the world let bracket creep work the country is in a crisis the well off have enough money the rest of us are battling.

      Taxes have been going down for 30 years inequality has grown exponentially as a result.

      NZ has the worst inequality in the OECD.

    • mikesh 4.2

      Bracket creep is a problem only if rates of inflation are relatively high. At zero inflation, progressive tax rates operate exactly as intended, moving taxpayers to a higher rate when their income increases. However, when the rate of inflation exceeds increases in 'real' income (as opposed to nominal income) then bracket creep can be a problem. At today's low inflation rates, though, it shouldn't be a major concern.

      • Foreign waka 4.2.1

        Except every one out there can tell you that the current numbers are BS. Perhaps we can take TV's, cars and washing machines out of the weekly basket?

        As far as I know and everyone out there buying the groceries for the family, the cost has increased in the time before Corona and now by at least 4% average. Fact.

        Rents are on the up, petrol has stagnated, but 55% of its price are taxes anyway. Fact.

        Can we please deal in facts rather than constantly getting some spreadsheet figures passed on with a lot of gobbledegook to hoodwink the wider population.

        My council rates have gone up 5%, in an area called one of the poorest in NZ. Fact.

        I have been told that there will be no increase but maybe some reduced hours or even restructuring at my company. Fact.

        Now all that means that I pay more but certainly wont have more income, in fact it could be less or nothing even.

        So, I think a lot of people are in a similar position if not already on the no income variance.

        I honestly do not care whether there is an increment at 50k or 80k or 180k. What I do care about is that the income is liveable. Any legislation has to look at min income needed to not just survive but to participate in society.

        Everything else is just navel gazing by those who make assumptions.
        There is a place for providing academic advise but if an abstract becomes a life philosophy for all one better get the facts straight.

      • Grafton Gully 4.2.2

        Moving taxpayers to a higher rate when their income increases penalises higher skill and higher productivity. Taxing capital gains from residential property speculation is another option, but not under Ardern's watch. She fronts a government that penalises higher income earners and gives free range to speculators.

        • Draco T Bastard 4.2.2.1

          Moving taxpayers to a higher rate when their income increases penalises higher skill and higher productivity.

          No it doesn't.

          Or maybe what we should be asking is when income goes from being about skill to just bludging from the other workers?

          https://www.youtube.com/watch?v=qBH-6aFMVUM&feature=youtu.be

          • Grafton Gully 4.2.2.1.1

            A single person business painting houses makes more money the more houses they paint and they paint more because they paint them better, are reliable and a pleasure to deal with. Why should the state take more money from them than from an unreliable painter who earns less because they paint fewer houses ?

            • woodart 4.2.2.1.1.1

              if its a business the tax rate is capped at 33%? no matter how many houses are painted.

            • mikesh 4.2.2.1.1.2

              The only way around that would be to impose a poll tax. As far as I know that has only been tried twice in British history: Once by Richard II which, fortunately for him, was successfully put down and the ringleaders sent to the gallows. The second was by Margaret Thatcher, who also almost faced an uprising. Lucky for her we a little more civilized these days, but only slightly.

            • Draco T Bastard 4.2.2.1.1.3

              The unreliable painter is probably painting more houses.

              I have family in the building industry and the stories about unreliability all come down to the people doing it fast – which results in the job needing to be redone.

              And then there's the simple fact that, in physical jobs like painting, there's no real way to do it faster due to physical constraints. There's little difference in speed between an experienced painter and an inexperienced painter which means that their income would be about the same.

              And then it's a self-employed people that you're talking about which would mean that they probably don't even have an income equal to the minimum wage.

        • Incognito 4.2.2.2

          The steepest increase in income tax rate for individuals is at $48k pa, going up from 17.5 to 30% on any extra dollar earned above and beyond $48k (up to $70k, of course). They’ll still take home more so it is not penalising them, it is called progressive tax. Over $70k pa there are no extra or additional ‘penalties’. The lowest-paid workers are the ones who are penalised the most in our society as far as all taxes are concerned and they can barely make a decent living off their hard-earned income.

          • Grafton Gully 4.2.2.2.1

            They take home more, but proportionately less the more they earn, which is a disincentive to earning more and if earning more depends on skill and productivity then these qualities are undervalued (rather than "penalised").

            The hard earned income of the lowest paid would increase if they were unionised and the unions were powerful enough to negotiate an increase. The fact that they are not unionised tells me they don't know that a union can improve their conditions or, for whatever reason they can live with their current situation. Does employment law in NZ prevent unionisation ?

  5. http://www.stuff.co.nz/southland-times/news/454946/The-block-of-cheese-Budget-2008

    National leader John Key said after nine years of refusing to lower personal taxes, Dr Cullen had admitted he was wrong but delivered just $16 a week to the average wage earner.

    "That's the equivalent of a family size block of cheese a couple of weeks out from the election." Mr Key said it was a desperate and cynical move. "It was far too little and it was far too late."

    Desperate and cynical, you say, but now you'll have to earn over 50k to get just a $12 valumetric slab.

    • mikesh 5.1

      Did Cullen admit he was wrong to offer $16.00 p/w, or wrong to run surpluses. In a booming economy keynesianism suggests that surpluses would be appropriate.

      • The Al1en 5.1.1

        Just quoting from the article I linked to for context where it showed the $16 figure, but the pertinent point in relation to this topic is 'Mr Key said it was a desperate and cynical move' and 'far too little and it was far too late', so what does it make this tax bribe?

      • Pat 5.1.2

        The quote was from Key….so Cullen very likely admitted nothing of the sort

    • George 5.2

      So for an unskilled worker.. possibly working 2 jobs to make ends meet .. would that give them 2 blocks of cheese? Or would secondary tax reduce that to one block and a pack of cheese slices?

  6. barry 6

    Goldsmith will have to prove that he is not innumerate after failing to understand the Greens' simple tax policy earlier. After Joyce's howler last election, it is par for the course.

    Of course Goldsmith didn't write the Nats' policy himself, but it will be interesting if he can prove that he understands it. Might be some interesting debates.

    • mikesh 6.1

      Earlier on Goldsmith seemed to not understand how the GST system works. He wanted to refund firms' GST payments, not realizing that it is the customers who pay GST, not the firms themselves. It would have been better to suggest that GST be abolished altogether. Firms might then benefit indirectly by dint of the fact that their customers had more money to spend.

  7. Kay 7

    Benefits are taxed. So kind of the Nats to increase them by a few dollars, even briefly. Nah, just kidding. The system is rigged so the net benefit payments don't change with tax cuts…fancy that. Guess they don't want our votes?

  8. NZJester 8

    What National are going for tax cuts? I am shook.

    (Saying this with an extremely sarcastic tone in my voice)

    We know where that money would be coming from, they would start with a slash and burn of the budgets of the health system, police and other important public services again to pay for that tax cut. Then they will find some reason to raise taxes on just the poor people of NZ. Another increase in G.S.T. under National. Because even though the T in G.S.T. stands for Tax it is not a Tax increase according to what they said last time they increased it.

    Another term under National will see the numbers below the poverty line in NZ increase even faster.

  9. Draco T Bastard 9

    But longer term things look grimmer. It will take the world longer to bounce back to business as usual.

    Longer term we have to accept that things aren't going to bounce back to business as usual. Which means that international trade is going to decline and that means that we have to develop our economy beyond being a mere farm.

    National chose the lolly scramble. Even though previously it said it would not.

    This is a sign of desperation, an attempt to preserve the support they have rather than put them into a position where they could win power.

    And people are going to recognise it as a lolly scramble and that it only really benefits the rich. It may be that this lolly scramble of National's could lose National even more support.

  10. Foreign waka 10

    Talking about taxes, debt and monetary policies.

    Here is something to read, maybe of interests?

    The Degeneration of Capitalism into Neo-Feudalism” – Dr. Sam Vaknin

    https://youtu.be/g5gnD44sqNI

    Pandemic Slaves and Their Neo-feudal Lords: Envy-fuelled Global Insurrection

    https://youtu.be/6CAE9sEfSp4

  11. Incognito 11

    Flippery-flop, that’s the sound of Judith Collins riding roughshod over promises made a month ago. What will she ‘promise’ next week or the week thereafter? It is obvious now that National’s tax cuts were never off the table and that only the press release had to be tweaked after the PREFU on Wednesday.

  12. ScottGN 12

    Amongst other things National are going to scrap the winter energy payment. They are actually going to campaign on taking money off pensioners in order to give it to the most highly payed NZers? I can’t wait to see Ardern hammer Collins with this in the debates.

  13. Here's another one. Deeply cynical, as even Fran O'Sullivan pointed out in her Herald piece.

    https://twitter.com/nealejones/status/1306766141021253633?s=20

    • Wensleydale 14.1

      The big end of town gets all the presents, and the grubby serfs get coal again (and probably a rent increase). Merry Christmas from Ebeneezer Collins. When was the last time the National Party had a new idea?

      • George 14.1.1

        National hasn't had a new or visionary idea since 1960 something. Which pretty much reflects the age of it's supporters. It's applying tired economic approaches to a world that needs future proofing. It's going to disappear in the near future "like a miracle" to use an expression of one of their idealised figures …in my personal opinion. They're old hat.

    • Graeme 14.2

      They're after donations to fund their lifestyle and ego, not votes

  14. George 15

    The tax cuts also don't seem to factor in the possibility of a serious outbreak of covid-19. So if by some miracle national get in and they have a serious breach or outbreak… and there's a need for a stimulus, support or recovery package…they have given a chunk of it away in tax cuts? Not exactly fiscally prudent. I am also gathering from them taking that quite significant risk financially that they aren't planning to go head on with lockdowns if there were to be any further outbreaks? Because they prepared to empty the war chest with tax cuts. Makes you think. I am assuming of course. But it looks like they are going to approach covid with a " suck it up" and carry on trading philosophy like the Brits…who are just now bracing for the second wave….

  15. PsyclingLeft.Always 16

    Inequality in NZ (not much change )

    "Between 1982 and 2011, New Zealand's gross domestic product grew by 35%. Almost half of that increase went to a small group who were already the richest in the country. During this period, the average income of the top 10% of earners in New Zealand (those earning more than $72,000)[1] almost doubled going from $56,300 to $100,200. The average income of the poorest tenth increased by 13% from $9700 to $11,000.[2]

    In 2013 over a dozen different reports were released which focused on the issue and the need to develop agreed ways of describing and measuring poverty.[24] However, the National Government resisted these attempts maintaining that "endless arguments about definition and measurement are a waste of time"

    https://en.wikipedia.org/wiki/Economic_inequality_in_New_Zealand

    Unequal NZ….

    "The richest 1 per cent of Kiwis have bagged 28 per cent — $42 billion — of the wealth created in a single year.

    Meanwhile, the poorest 1.4 million people (30 per cent of the population), got barely 1 per cent — $1.5b — of all the wealth created in 2017."

    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11979151

    "So the rich are getting richer." ( We know )

    "[The top 20 percent of Kiwi households surveyed in the past year] collectively holds about 70 percent of total household net worth. These net worth statistics tell us that wealth is unevenly distributed across the population, and this is unchanged from three years ago," labour market and households senior manager Jason Attewell said.

    https://www.rnz.co.nz/news/national/378268/the-richest-households-are-now-worth-1-point-75-million-survey

    Part of the problem… (37 properties …?! wtf)

    "Mr Goodwin, 74, has 37 properties in Auckland and Waikato generating $14,500 a week in rent."

    https://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11527498

    nats are NEVER gonna change. They are always about looking after the Few…at the top end of NZ Inequality

    • George 16.1

      Psychlingleftalways…The good news about that is there's fewer of them to vote the nats in. The rest of the voting public just have to see past their smoke and mirrors.

  16. ken 18

    The stench of desperation is hurting my nose.

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  • Geoffrey Miller: Wang Yi’s perfectly-timed, Aukus-themed visit to New Zealand
    Timing is everything. And from China’s perspective, this week’s visit by its foreign minister to New Zealand could be coming at just the right moment. The visit by Wang Yi to Wellington will be his first since 2017. Anniversaries are important to Beijing. It is more than just a happy ...
    Democracy ProjectBy Geoffrey Miller
    2 days ago
  • The Kaka’s diary for the week to March 25 and beyond
    TL;DR: The key events to watch in Aotearoa-NZ’s political economy in the week to March 18 include:China’s Foreign Minister visiting Wellington today;A post-cabinet news conference this afternoon; the resumption of Parliament on Tuesday for two weeks before Easter;retiring former Labour Finance Minister Grant Robertson gives his valedictory speech in Parliament; ...
    The KakaBy Bernard Hickey
    2 days ago
  • Bitter and angry; Winston First
    New Zealand First Leader Winston Peters’s state-of-the-nation speech on Sunday was really a state-of-Winston-First speech. He barely mentioned any of the Government’s key policies and could not even wholly endorse its signature income tax cuts. Instead, he rehearsed all of his complaints about the Ardern Government, including an extraordinary claim ...
    PolitikBy Richard Harman
    2 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #11
    A listing of 35 news and opinion articles we found interesting and shared on social media during the past week: Sun, March 10, 2024 thru Sat, March 16, 2024. Story of the week This week we'll give you a little glimpse into how we collect links to share and ...
    2 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #11
    A listing of 35 news and opinion articles we found interesting and shared on social media during the past week: Sun, March 10, 2024 thru Sat, March 16, 2024. Story of the week This week we'll give you a little glimpse into how we collect links to share and ...
    2 days ago
  • Out of Touch.
    “I’ve been internalising a really complicated situation in my head.”When they kept telling us we should wait until we get to know him, were they taking the piss? Was it a case of, if you think this is bad, wait till you get to know the real Christopher, after the ...
    Nick’s KōreroBy Nick Rockel
    2 days ago
  • Bring out your Dad
    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    3 days ago
  • Bring out your Dad
    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    3 days ago
  • Bring out your Dad
    Happy fourth anniversary, Pandemic That Upended Bloody Everything. I have been observing it by enjoying my second bout of COVID. It’s 5.30 on Sunday morning and only now are lights turning back on for me.Allow me to copy and paste what I told reader Sara yesterday:Depleted, fogged and crappy. Resting, ...
    More Than A FeildingBy David Slack
    3 days ago
  • The bewildering world of Chris Luxon – Guns for all, not no lunch for kids
    .“$10 and a target that bleeds” - Bleeding Targets for Under $10!.Thanks for reading Frankly Speaking ! Subscribe for free to receive new posts and support my work.This government appears hell-bent on either scrapping life-saving legislation or reintroducing things that - frustrated critics insist - will be dangerous and likely ...
    Frankly SpeakingBy Frank Macskasy
    3 days ago
  • Expert Opinion: Ageing Boomers, Laurie & Les, Talk Politics.
    It hardly strikes me as fair to criticise a government for doing exactly what it said it was going to do. For actually keeping its promises.”THUNDER WAS PLAYING TAG with lightning flashes amongst the distant peaks. Its rolling cadences interrupted by the here-I-come-here-I-go Doppler effect of the occasional passing car. ...
    3 days ago
  • Manufacturing The Truth.
    Subversive & Disruptive Technologies: Just as happened with that other great regulator of the masses, the Medieval Church, the advent of a new and hard-to-control technology – the Internet –  is weakening the ties that bind. Then, and now, those who enjoy a monopoly on the dissemination of lies, cannot and will ...
    3 days ago
  • A Powerful Sensation of Déjà Vu.
    Been Here Before: To find the precedents for what this Coalition Government is proposing, it is necessary to return to the “glory days” of Muldoonism.THE COALITION GOVERNMENT has celebrated its first 100 days in office by checking-off the last of its listed commitments. It remains, however, an angry government. It ...
    3 days ago
  • Can you guess where world attention is focussed (according to Greenpeace)? It’s focussed on an EPA...
    Bob Edlin writes –  And what is the world watching today…? The email newsletter from Associated Press which landed in our mailbox early this morning advised: In the news today: The father of a school shooter has been found guilty of involuntary manslaughter; prosecutors in Trump’s hush-money case ...
    Point of OrderBy Bob Edlin
    3 days ago
  • Further integrity problems for the Greens in suspending MP Darleen Tana
    Bryce Edwards writes – Is another Green MP on their way out? And are the Greens severely tarnished by another integrity scandal? For the second time in three months, the Green Party has secretly suspended an MP over integrity issues. Mystery is surrounding the party’s decision to ...
    Point of OrderBy poonzteam5443
    3 days ago
  • Jacqui Van Der Kaay: Greens’ transparency missing in action
    For the last few years, the Green Party has been the party that has managed to avoid the plague of multiple scandals that have beleaguered other political parties. It appears that their luck has run out with a second scandal which, unfortunately for them, coincided with Golraz Ghahraman, the focus ...
    Democracy ProjectBy bryce.edwards
    3 days ago
  • Bernard’s Dawn Chorus with six newsey things at 6:46am for Saturday, March 16
    TL;DR: The six newsey things that stood out to me as of 6:46am on Saturday, March 16.Andy Foster has accidentally allowed a Labour/Green amendment to cut road user chargers for plug-in hybrid vehicles, which the Government might accept; NZ Herald Thomas Coughlan Simeon Brown has rejected a plea from Westport ...
    The KakaBy Bernard Hickey
    4 days ago
  • How Did FTX Crash?
    What seemed a booming success a couple of years ago has collapsed into fraud convictions.I looked at the crash of FTX (short for ‘Futures Exchange’) in November 2022 to see whether it would impact on the financial system as a whole. Fortunately there was barely a ripple, probably because it ...
    PunditBy Brian Easton
    4 days ago
  • Elections in Russia and Ukraine
    Anybody following the situation in Ukraine and Russia would probably have been amused by a recent Tweet on X NATO seems to be putting in an awful lot of effort to influence what is, at least according to them, a sham election in an autocracy.When do the Ukrainians go to ...
    4 days ago
  • Bernard’s six stack of substacks at 6pm on March 15
    TL;DR: Shaun Baker on Wynyard Quarter's transformation. Magdalene Taylor on the problem with smart phones. How private equity are now all over reinsurance. Dylan Cleaver on rugby and CTE. Emily Atkin on ‘Big Meat’ looking like ‘Big Oil’.Bernard’s six-stack of substacks at 6pm on March 15Photo by Jeppe Hove Jensen ...
    The KakaBy Bernard Hickey
    4 days ago
  • Buzz from the Beehive Finance Minister Nicola Willis had plenty to say when addressing the Auckland Business Chamber on the economic growth that (she tells us) is flagging more than we thought. But the government intends to put new life into it:  We want our country to be a ...
    Point of OrderBy Bob Edlin
    4 days ago
  • National’s clean car tax advances
    The Transport and Infrastructure Committee has reported back on the Road User Charges (Light Electric RUC Vehicles) Amendment Bill, basicly rubberstamping it. While there was widespread support among submitters for the principle that EV and PHEV drivers should pay their fair share for the roads, they also overwhelmingly disagreed with ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Government funding bailouts
    Peter Dunne writes – This week’s government bailout – the fifth in the last eighteen months – of the financially troubled Ruapehu Alpine Lifts company would have pleased many in the central North Island ski industry. The government’s stated rationale for the $7 million funding was that it ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Two offenders, different treatments.
    See if you can spot the difference. An Iranian born female MP from a progressive party is accused of serial shoplifting. Her name is leaked to the media, which goes into a pack frenzy even before the Police launch an … Continue reading ...
    KiwipoliticoBy Pablo
    4 days ago
  • Treaty references omitted
    Ele Ludemann writes  – The government is omitting general Treaty references from legislation : The growth of Treaty of Waitangi clauses in legislation caused so much worry that a special oversight group was set up by the last Government in a bid to get greater coherence in the public service on Treaty ...
    Point of OrderBy poonzteam5443
    4 days ago
  • The Ghahraman Conflict
    What was that judge thinking? Peter Williams writes –  That Golriz Ghahraman and District Court Judge Maria Pecotic were once lawyer colleagues is incontrovertible. There is published evidence that they took at least one case to the Court of Appeal together. There was a report on ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 15
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Climate Scorpion – the sting is in the tail. Introducing planetary solvency. A paper via the University of Exeter’s Institute and Faculty of Actuaries.Local scoop: Kāinga Ora starts pulling out of its Auckland projects and selling land RNZ ...
    The KakaBy Bernard Hickey
    4 days ago
  • The day Wellington up-zoned its future
    Wellington’s massively upzoned District Plan adds the opportunity for tens of thousands of new homes not just in the central city (such as these Webb St new builds) but also close to the CBD and public transport links. Photo: Lynn Grieveson / The KākāTL;DR: Wellington gave itself the chance of ...
    The KakaBy Bernard Hickey
    4 days ago
  • Weekly Roundup 15-March-2024
    It’s Friday and we’re halfway through March Madness. Here’s some of the things that caught our attention this week. This Week in Greater Auckland On Monday Matt asked how we can get better event trains and an option for grade separating Morningside Dr. On Tuesday Matt looked into ...
    Greater AucklandBy Greater Auckland
    4 days ago
  • That Word.
    Something you might not know about me is that I’m quite a stubborn person. No, really. I don’t much care for criticism I think’s unfair or that I disagree with. Few of us do I suppose.Back when I was a drinker I’d sometimes respond defensively, even angrily. There are things ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • The Hoon around the week to March 15
    Photo: Lynn Grieveson / The KākāTL;DR: The five things that mattered in Aotearoa’s political economy that we wrote and spoke about via The Kākā and elsewhere for paying subscribers in the last week included:PM Christopher Luxon said the reversal of interest deductibility for landlords was done to help renters, who ...
    The KakaBy Bernard Hickey
    5 days ago
  • Labour’s policy gap
    It was not so much the Labour Party but really the Chris Hipkins party yesterday at Labour’s caucus retreat in Martinborough. The former Prime Minister was more or less consistent on wealth tax, which he was at best equivocal about, and social insurance, which he was not willing to revisit. ...
    PolitikBy Richard Harman
    5 days ago
  • Skeptical Science New Research for Week #11 2024
    Open access notables A Glimpse into the Future: The 2023 Ocean Temperature and Sea Ice Extremes in the Context of Longer-Term Climate Change, Kuhlbrodt et al., Bulletin of the American Meteorological Society: In the year 2023, we have seen extraordinary extrema in high sea surface temperature (SST) in the North Atlantic and in ...
    5 days ago
  • Melissa remains mute on media matters but has something to say (at a sporting event) about economic ...
     Buzz from the Beehive   The text reproduced above appears on a page which records all the media statements and speeches posted on the government’s official website by Melissa Lee as Minister of Media and Communications and/or by Jenny Marcroft, her Parliamentary Under-secretary.  It can be quickly analysed ...
    Point of OrderBy Bob Edlin
    5 days ago
  • The return of Muldoon
    For forty years, Robert Muldoon has been a dirty word in our politics. His style of government was so repulsive and authoritarian that the backlash to it helped set and entrench our constitutional norms. His pig-headedness over forcing through Think Big eventually gave us the RMA, with its participation and ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Will the rental tax cut improve life for renters or landlords?
    Bryce Edwards writes –  Is the new government reducing tax on rental properties to benefit landlords or to cut the cost of rents? That’s the big question this week, after Associate Finance Minister David Seymour announced on Sunday that the Government would be reversing the Labour Government’s removal ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Geoffrey Miller: What Saudi Arabia’s rapid changes mean for New Zealand
    Saudi Arabia is rarely far from the international spotlight. The war in Gaza has brought new scrutiny to Saudi plans to normalise relations with Israel, while the fifth anniversary of the controversial killing of Jamal Khashoggi was marked shortly before the war began on October 7. And as the home ...
    Democracy ProjectBy Geoffrey Miller
    5 days ago
  • Racism’s double standards
    Questions need to be asked on both sides of the world Peter Williams writes –   The NRL Judiciary hands down an eight week suspension to Sydney Roosters forward Spencer Leniu , an Auckland-born Samoan, after he calls Ezra Mam, Sydney-orn but of Aboriginal and Torres Strait ...
    Point of OrderBy poonzteam5443
    5 days ago
  • It’s not a tax break
    Ele Ludemann writes – Contrary to what many headlines and news stories are saying, residential landlords are not getting a tax break. The government is simply restoring to them the tax deductibility of interest they had until the previous government removed it. There is no logical reason ...
    Point of OrderBy poonzteam5443
    5 days ago
  • The Plastic Pig Collective and Chris' Imaginary Friends.
    I can't remember when it was goodMoments of happiness in bloomMaybe I just misunderstoodAll of the love we left behindWatching our flashbacks intertwineMemories I will never findIn spite of whatever you becomeForget that reckless thing turned onI think our lives have just begunI think our lives have just begunDoes anyone ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Who is responsible for young offenders?
    Michael Bassett writes – At first reading, a front-page story in the New Zealand Herald on 13 March was bizarre. A group of severely intellectually limited teenagers, with little understanding of the law, have been pleading to the Justice Select Committee not to pass a bill dealing with ram ...
    Point of OrderBy poonzteam5443
    5 days ago
  • Gordon Campbell on National’s fantasy trip to La La Landlord Land
    How much political capital is Christopher Luxon willing to burn through in order to deliver his $2.9 billion gift to landlords? Evidently, Luxon is: (a) unable to cost the policy accurately. As Anna Burns-Francis pointed out to him on Breakfast TV, the original ”rock solid” $2.1 billion cost he was ...
    5 days ago
  • Bernard's Top 10 @ 10 'pick 'n' mix' for March 14
    TL;DR: My top 10 news and analysis links this morning include:Today’s must-read: Jonathon Porritt calling bullshit in his own blog post on mainstream climate science as ‘The New Denialism’.Local scoop: The Wellington City Council’s list of proposed changes to the IHP recommendations to be debated later today was leaked this ...
    The KakaBy Bernard Hickey
    5 days ago
  • No, Prime Minister, rents don’t rise or fall with landlords’ costs
    TL;DR: Prime Minister Christopher Luxon said yesterday tenants should be grateful for the reinstatement of interest deductibility because landlords would pass on their lower tax costs in the form of lower rents. That would be true if landlords were regulated monopolies such as Transpower or Auckland Airport1, but they’re not, ...
    The KakaBy Bernard Hickey
    5 days ago
  • Cartoons: ‘At least I didn’t make things awkward’
    This is a re-post from Yale Climate Connections by Tom Toro Tom Toro is a cartoonist and author. He has published over 200 cartoons in The New Yorker since 2010. His cartoons appear in Playboy, the Paris Review, the New York Times, American Bystander, and elsewhere. Related: What 10 EV lovers ...
    5 days ago
  • Solving traffic congestion with Richard Prebble
    The business section of the NZ Herald is full of opinion. Among the more opinionated of all is the ex-Minister of Transport, ex-Minister of Railways, ex MP for Auckland Central (1975-93, Labour), Wellington Central (1996-99, ACT, then list-2005), ex-leader of the ACT Party, uncle to actor Antonia, the veritable granddaddy ...
    Greater AucklandBy Patrick Reynolds
    5 days ago
  • I Think I'm Done Flying Boeing
    Hi,Just quickly — I’m blown away by the stories you’ve shared with me over the last week since I put out the ‘Gary’ podcast, where I told you about the time my friend’s flatmate killed the neighbour.And you keep telling me stories — in the comments section, and in my ...
    David FarrierBy David Farrier
    6 days ago
  • Invoking Aristotle: Of Rings of Power, Stones, and Ships
    The first season of Rings of Power was not awful. It was thoroughly underwhelming, yes, and left a lingering sense of disappointment, but it was more expensive mediocrity than catastrophe. I wrote at length about the series as it came out (see the Review section of the blog, and go ...
    6 days ago
  • Van Velden brings free-market approach to changing labour laws – but her colleagues stick to distr...
    Buzz from the Beehive Workplace Relations and Safety Minister Brooke van Velden told Auckland Business Chamber members they were the first audience to hear her priorities as a minister in a government committed to cutting red tape and regulations. She brandished her liberalising credentials, saying Flexible labour markets are the ...
    Point of OrderBy Bob Edlin
    6 days ago
  • Why Newshub failed
    Chris Trotter writes – TO UNDERSTAND WHY NEWSHUB FAILED, it is necessary to understand how TVNZ changed. Up until 1989, the state broadcaster had been funded by a broadcasting licence fee, collected from every citizen in possession of a television set, supplemented by a relatively modest (compared ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Māori Party on the warpath against landlords and seabed miners – let’s see if mystical creature...
    Bob Edlin writes  –  The Māori Party has been busy issuing a mix of warnings and threats as its expresses its opposition to interest deductibility for landlords and the plans of seabed miners. It remains to be seen whether they  follow the example of indigenous litigants in Australia, ...
    Point of OrderBy Bob Edlin
    6 days ago
  • There’s a name for this
    Every year, in the Budget, Parliament forks out money to government agencies to do certain things. And every year, as part of the annual review cycle, those agencies are meant to report on whether they have done the things Parliament gave them that money for. Agencies which consistently fail to ...
    No Right TurnBy Idiot/Savant
    6 days ago

  • Government moves to quickly ratify the NZ-EU FTA
    "The Government is moving quickly to realise an additional $46 million in tariff savings in the EU market this season for Kiwi exporters,” Minister for Trade and Agriculture, Todd McClay says. Parliament is set, this week, to complete the final legislative processes required to bring the New Zealand – European ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Positive progress for social worker workforce
    New Zealand’s social workers are qualified, experienced, and more representative of the communities they serve, Social Development and Employment Minister Louise Upston says. “I want to acknowledge and applaud New Zealand’s social workers for the hard work they do, providing invaluable support for our most vulnerable. “To coincide with World ...
    BeehiveBy beehive.govt.nz
    7 hours ago
  • Minister confirms reduced RUC rate for PHEVs
    Cabinet has agreed to a reduced road user charge (RUC) rate for plug-in hybrid electric vehicles (PHEVs), Transport Minister Simeon Brown says. Owners of PHEVs will be eligible for a reduced rate of $38 per 1,000km once all light electric vehicles (EVs) move into the RUC system from 1 April.  ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Trade access to overseas markets creates jobs
    Minister of Agriculture and Trade, Todd McClay, says that today’s opening of Riverland Foods manufacturing plant in Christchurch is a great example of how trade access to overseas markets creates jobs in New Zealand.  Speaking at the official opening of this state-of-the-art pet food factory the Minister noted that exports ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • NZ and Chinese Foreign Ministers hold official talks
    Minister of Foreign Affairs Winston Peters met with Chinese Foreign Minister Wang Yi in Wellington today. “It was a pleasure to host Foreign Minister Wang Yi during his first official visit to New Zealand since 2017. Our discussions were wide-ranging and enabled engagement on many facets of New Zealand’s relationship with China, including trade, ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Kāinga Ora instructed to end Sustaining Tenancies
    Kāinga Ora – Homes & Communities has been instructed to end the Sustaining Tenancies Framework and take stronger measures against persistent antisocial behaviour by tenants, says Housing Minister Chris Bishop. “Earlier today Finance Minister Nicola Willis and I sent an interim Letter of Expectations to the Board of Kāinga Ora. ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Speech to Auckland Business Chamber: Growth is the answer
    Tēna koutou katoa. Greetings everyone. Thank you to the Auckland Chamber of Commerce and the Honourable Simon Bridges for hosting this address today. I acknowledge the business leaders in this room, the leaders and governors, the employers, the entrepreneurs, the investors, and the wealth creators. The coalition Government shares your ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Singapore rounds out regional trip
    Minister Winston Peters completed the final leg of his visit to South and South East Asia in Singapore today, where he focused on enhancing one of New Zealand’s indispensable strategic partnerships.      “Singapore is our most important defence partner in South East Asia, our fourth-largest trading partner and a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister van Velden represents New Zealand at International Democracy Summit
    Minister of Internal Affairs and Workplace Relations and Safety, Hon. Brooke van Velden, will travel to the Republic of Korea to represent New Zealand at the Third Summit for Democracy on 18 March. The summit, hosted by the Republic of Korea, was first convened by the United States in 2021, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Insurance Council of NZ Speech, 7 March 2024, Auckland
    ICNZ Speech 7 March 2024, Auckland  Acknowledgements and opening  Mōrena, ngā mihi nui. Ko Andrew Bayly aho, Nor Whanganui aho.  Good morning, it’s a privilege to be here to open the ICNZ annual conference, thank you to Mark for the Mihi Whakatau  My thanks to Tim Grafton for inviting me ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Five-year anniversary of Christchurch terror attacks
    Prime Minister Christopher Luxon and Lead Coordination Minister Judith Collins have expressed their deepest sympathy on the five-year anniversary of the Christchurch terror attacks. “March 15, 2019, was a day when families, communities and the country came together both in sorrow and solidarity,” Mr Luxon says.  “Today we pay our respects to the 51 shuhada ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech for Financial Advice NZ Conference 5 March 2024
    Speech for Financial Advice NZ Conference 5 March 2024  Acknowledgements and opening  Morena, Nga Mihi Nui.  Ko Andrew Bayly aho, Nor Whanganui aho. Thanks Nate for your Mihi Whakatau  Good morning. It’s a pleasure to formally open your conference this morning. What a lovely day in Wellington, What a great ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Early visit to Indonesia strengthens ties
    Foreign Minister Winston Peters held discussions in Jakarta today about the future of relations between New Zealand and South East Asia’s most populous country.   “We are in Jakarta so early in our new government’s term to reflect the huge importance we place on our relationship with Indonesia and South ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • China Foreign Minister to visit
    Deputy Prime Minister and Minister of Foreign Affairs Winston Peters has announced that the Foreign Minister of China, Wang Yi, will visit New Zealand next week.  “We look forward to re-engaging with Foreign Minister Wang Yi and discussing the full breadth of the bilateral relationship, which is one of New Zealand’s ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Minister opens new Auckland Rail Operations Centre
    Transport Minister Simeon Brown has today opened the new Auckland Rail Operations Centre, which will bring together KiwiRail, Auckland Transport, and Auckland One Rail to improve service reliability for Aucklanders. “The recent train disruptions in Auckland have highlighted how important it is KiwiRail and Auckland’s rail agencies work together to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Celebrating 10 years of Crankworx Rotorua
    The Government is proud to support the 10th edition of Crankworx Rotorua as the Crankworx World Tour returns to Rotorua from 16-24 March 2024, says Minister for Economic Development Melissa Lee.  “Over the past 10 years as Crankworx Rotorua has grown, so too have the economic and social benefits that ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government delivering on tax commitments
    Legislation implementing coalition Government tax commitments and addressing long-standing tax anomalies will be progressed in Parliament next week, Finance Minister Nicola Willis says. The legislation is contained in an Amendment Paper to the Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill issued today.  “The Amendment Paper represents ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Significant Natural Areas requirement to be suspended
    Associate Environment Minister Andrew Hoggard has today announced that the Government has agreed to suspend the requirement for councils to comply with the Significant Natural Areas (SNA) provisions of the National Policy Statement for Indigenous Biodiversity for three years, while it replaces the Resource Management Act (RMA).“As it stands, SNAs ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government classifies drought conditions in Top of the South as medium-scale adverse event
    Agriculture Minister Todd McClay has classified the drought conditions in the Marlborough, Tasman, and Nelson districts as a medium-scale adverse event, acknowledging the challenging conditions facing farmers and growers in the district. “Parts of Marlborough, Tasman, and Nelson districts are in the grip of an intense dry spell. I know ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government partnership to tackle $332m facial eczema problem
    The Government is helping farmers eradicate the significant impact of facial eczema (FE) in pastoral animals, Agriculture Minister Todd McClay announced.  “A $20 million partnership jointly funded by Beef + Lamb NZ, the Government, and the primary sector will save farmers an estimated NZD$332 million per year, and aims to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZ, India chart path to enhanced relationship
    Foreign Minister Winston Peters has completed a successful visit to India, saying it was an important step in taking the relationship between the two countries to the next level.   “We have laid a strong foundation for the Coalition Government’s priority of enhancing New Zealand-India relations to generate significant future benefit for both countries,” says Mr Peters, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Ruapehu Alpine Lifts bailout the last, say Ministers
    Cabinet has agreed to provide $7 million to ensure the 2024 ski season can go ahead on the Whakapapa ski field in the central North Island but has told the operator Ruapehu Alpine Lifts it is the last financial support it will receive from taxpayers. Cabinet also agreed to provide ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action to drive better cancer services
    Health Minister Dr Shane Reti says the launch of a new mobile breast screening unit in Counties Manukau reinforces the coalition Government’s commitment to drive better cancer services for all New Zealanders. Speaking at the launch of the new mobile clinic, Dr Reti says it’s a great example of taking ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action to drive better cancer services
    Health Minister Dr Shane Reti says the launch of a new mobile breast screening unit in Counties Manukau reinforces the coalition Government’s commitment to drive better cancer services for all New Zealanders. Speaking at the launch of the new mobile clinic, Dr Reti says it’s a great example of taking ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
    Unlocking economic growth and land for housing are critical elements of the Government’s plan for our transport network, and planned upgrades to State Highway 29 (SH29) near Tauriko will deliver strongly on those priorities, Transport Minister Simeon Brown says. “The SH29 upgrades near Tauriko will improve safety at the intersections ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Work begins on SH29 upgrades near Tauriko
    Unlocking economic growth and land for housing are critical elements of the Government’s plan for our transport network, and planned upgrades to State Highway 29 (SH29) near Tauriko will deliver strongly on those priorities, Transport Minister Simeon Brown says. “The SH29 upgrades near Tauriko will improve safety at the intersections ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Fresh produce price drop welcome
    Lower fruit and vegetable prices are welcome news for New Zealanders who have been doing it tough at the supermarket, Finance Minister Nicola Willis says. Stats NZ reported today the price of fruit and vegetables has dropped 9.3 percent in the 12 months to February 2024.  “Lower fruit and vege ...
    BeehiveBy beehive.govt.nz
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  • Statement to the 68th United Nations Commission on the Status of Women
    Tēnā koutou katoa and greetings to you all.  Chair, I am honoured to address the sixty-eighth session of the Commission on the Status of Women. I acknowledge the many crises impacting the rights of women and girls. Heightened global tensions, war, climate related and humanitarian disasters, and price inflation all ...
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  • Speech to Auckland Business Chamber
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