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OECD sounding the alarm

Written By: - Date published: 10:26 am, June 10th, 2015 - 84 comments
Categories: class war, economy, housing - Tags: , , ,

As widely reported this morning the OECD is sounding the alarm on our “rockstar” economy. The Herald:

OECD’s stark NZ property warning

Dramatic house price growth is burdening Kiwi households with debt and putting the nation’s financial stability at risk, the OECD warns.

“Rapid population growth and a low responsiveness of supply have led to housing and urban infrastructure constraints. In particular, house prices have risen sharply in Auckland, the largest city, eroding affordability and raising financial-stability risks,” the report says.

Paris-based OECD economist David Carey told the Herald house price growth was a threat to financial stability, especially if New Zealand was rocked by another recession where unemployment spiked and homeowners could no longer maintain mortgage repayments, leading to forced sales. Other threats included a rise in global interest rates, a slowing Chinese economy and falling dairy prices.


In the biennial report the OECD echoes warnings from the Reserve Bank that Auckland’s superheated housing market is a risk to the economy and urges the government to increase housing supply in the region.

“Housing poses some risks to the otherwise sound financial sector,” the report said. … “The house prices are higher than they need to be and that’s having a lot of negative effects on people’s wellbeing and on Auckland’s growth.”


While New Zealand is doing well compared to many other countries, there are inequalities in living standards and wages are low.
The government should do more to stem the rise in poverty and inequality in New Zealand, the report says.

Greater focus is needed on improving the lives of the most disadvantaged, particularly children from low income families.

The OECD says the economic reforms in the 1980s and 1990s are still being felt. Lower and middle income families suffering the most, due in part to higher than average unequal employment prospects and shortage of affordable housing for low-income families.

On Stuff:

OECD report: NZ needs more housing for poor, less obesity

New Zealand needs more housing for the poor, and less fat on the hips of the average Kiwi, according to a report from the OECD. The country should also look at road tolls in the form of “congestion charging” to help fix traffic jams in the big cities.

In its latest report on New Zealand, the OECD’s key recommendations included raising the supply of social housing for low income households. The government should also increase targeted housing subsidies for the poor not in local or central government provided housing.


OECD calls for New Zealand to ease housing burden on poor

The OECD wants the Government to do more to ease the burden of housing costs on low income families in New Zealand.

The report’s authors acknowledge that the Government is moving to address the concerns raised. However the OECD specifically recommends that the Government raise the supply of social housing for low income households. In addition it calls for an increase in the number of targeted housing subsidies for low income households that are not in social housing. It also calls for strengthening the focus of social spending on lifting the long term outcomes of the disadvantaged.

Plenty to think about in that report. Freeing up Auckland land for private development and sale at market rates isn’t going to cut it.

84 comments on “OECD sounding the alarm ”

  1. linda 1

    New Zealand house holds are the third most indebted in the world our total debt is over $510 billion dollars in short we are screwed .most of debt is housing debt its unplayable I guess in time new Zealand could be Greece.

    • Phil 1.1

      New Zealand’s total debt is not $510b. I assume you got that number from John Pemberton’s website or somewhere similar? It’s a grossly over inflated figure because it double-counts substantial portions of borrowing and doesn’t properly account for intermediaries.

      If you’re going to compare us to Greece, in the most high level terms only, then the number that matters is $153.9 billion – our net international liability position.
      That works out at about 65% of GDP. The equivalent Greek number is north of 120% GDP.

      We’re NOTHING like Greece.

      • Gosman 1.1.1

        But don’t let the facts get in a way of a good leftist meme that is being pushed.

        • aerobubble

          Yeah, what’s needed is plane loads of cashed up investor residents to turn up and save the day, letting over indebt kiwis move off the red hot Auckland housing volcano. Only problem, the right wing meme, of it’ll be fine you can stay put and your house will be worth more. The facts of life dips it is that moneyed elite does not want to spend govt taxes a new city south of Auckland, Auckland housing was always going to cost, being on a isthmus and at the end of the world, I.e. small demand yet little land forcing market behaviors that sit on land and hike prices to compete with mostly Sydney.

          No, your basic problem is nz is run by rightwing moneyed dipshits, yet now we are moving into a globalized world that makes most of their memes either irrelevant or down right self destructive.

          • Gosman

            Wow. What an incoherent rant. New Zealands current policy mix is very mainstream. The countries attempting to follow more radical leftists policies are failing miserably and the ones following moderate left wing economic approaches aren’t doing much better. In short there is no viable practical alternative you can point to which is better.

            • The Other Mike

              Yeah maybe, but the conclusion is spot on.

            • Lloyd

              Funny how we depend on a communist country – China, to increase its demand for milk powder to get us out of our economic shit……

              • Phil

                China hasn’t been a communist country in any meaningful economic sense since the late 80’s.

                • I would suggest that any country that treats its workers as disposable and where power is wielded by a select few is by definition not a communist country.

                  That they’ve branded it as communist (USSR, PRC et al.) doesn’t mean shit if the means of production are not owned and controlled by the local communities.

                  I am at a loss to find an example of a communist movement that has not been subverted by power hungry sociopaths for their own purposes once it achieved power .


                  Cuba probably comes closest where the means of production is owned by the dictatorship on behalf of the people.

            • Stuart Munro

              New Zealand’s current policy mix is barking mad – you’re just a toady for the fools in office. Anything, Anything! would be better than borrowing three hundred million a week for unsustainable tax cuts.

              This is an absurdly incompetent government without a shred of financial credibility – Greece? They have the Germans looking over their shoulders on a monthly basis. If the Germans were looking at Bill they’d’ve called for his dismissal in 2008 – he simply cannot improve the economy with these insane policies.

              He means instead to profit from wrecking it.

              • John

                Things are so bad and the financial management is so incompetent that Kiwis around the world are coming home, immigrants want to come here, and few people are leaving.

                Even the impossible has happened, and decades of brain drain has stopped.

                And now another impossibility – the govt has just unexpectedly hit surplus.

                But don’t let the facts ruin your doomsday cult.

                • ropata

                  As the OECD just pointed out, FJK’s unsustainable bubble economy is based on lies. NZ is a nice place to live for millionaire immigrants and the already wealthy. The landed gentry don’t give a shit if poor Polynesians die in cheap houses unfit for habitation, or that workers are killed at twice the annual road toll, or that police teachers and nurses cannot afford to live here. Just import a few thousand more cheap Filipinos and put them in tin shacks.

                  John and his ilk (sir scrooge bob jones) are ignorant of the other side of NZ.

            • Plan B

              You may not be spot on with that thought Singapore is outwards looking, some might say we are inward looking. Singapore has out performed us since the 1960s. Their focus is not on land speculation. In fact policy for policy they seem to have more things right than we do

            • aerobubble

              Our Senate, one twenty senators, is to lazy and incompetent to keep up with mainstream global self destruction policy making, its caught between copying stupid and benefit by sitting on their hands as we get better as the global economies are more influenced by big distortist money.

              Of course you believe there is no viable alternative, its the same opinion as those distorting governments globally to make their daily bread.

      • Colonial Rawshark 1.1.2

        If you’re going to compare us to Greece, in the most high level terms only, then the number that matters is $153.9 billion – our net international liability position.

        in a financial crisis scenario like the OECD warns about, the value and liquidity of the assets that offset our debt to give us that “net international liability position” cannot be relied upon.

        • Phil

          It’s equally true that the value of our liabilities will fall in a crisis scenario, as well.

          • Colonial Rawshark

            Theoretically in that situation NZ as a country and as individual households could cut liabilities by defaulting on debt repayments, forcing bond holders to suffer ‘haircuts’. That’s an ugly contentious business though.

            • Phil

              No, that’s not what I mean.

              Most NZ borrowing from the rest of the world falls into two categories:
              1) bank borrowing from financial markets
              2) direct investment in NZ company equity.

              The money that NZ bank’s borrow from overseas is ‘hedged’ using interest rate and exchange rate forward contracts. If a bank borrows 1 USD today that has to be repaid in a year’s time, it knows with certainty what the exchange rate on that $1USD will be, when it comes time to repay. The ‘price’ of the NZD:USD exchange rate is fixed in advance for that trade.

              In the event of a crisis, the value of the NZD will fall. If you owed 1USD that was not hedged, it would take more NZD to meet your 1USD obligation when it comes time to repay.

              The accounting treatment for hedges and the way interest payments on these transactions are calculated means that, in real terms, a substantial fall in the NZD would lead to a reduction in the liability that NZ banks owed offshore.

              On the second point:
              Say your a foreign investor in an NZX listed company. There’s a financial crisis of some sort and you decide that you want to pull your investment out of NZ. You can’t just ‘withdraw’ your shares. There needs to be a willing buyer on the other side of the transaction to take over ownership of those shares at an agreed price.

              What happens when there are more sellers than buyers? Prices fall. A fall in the NZX has lots of different consequences, but one of those consequences is that the value of what we owe the rest of the world falls.

              • Colonial Rawshark

                What happens when there are more sellers than buyers? Prices fall. A fall in the NZX has lots of different consequences, but one of those consequences is that the value of what we owe the rest of the world falls.

                Look, that’s a nonsense. Please justify your inference that asset price destruction changes what NZ individuals, companies, or the Crown, owes to foreign based holders of those assets.

                • Phil

                  I don’t have the time to explain basic accounting principles to you.

                  • Colonial Rawshark

                    OK my question is simple – you say it is a liability on NZ’s books, but where is the obligation to repay these foreign share holders?

      • Colonial Rawshark 1.1.3

        If you’re going to compare us to Greece, in the most high level terms only, then the number that matters is $153.9 billion – our net international liability position.
        That works out at about 65% of GDP. The equivalent Greek number is north of 120% GDP.

        Following up from Linda’s comments – she is right in that NZ household debt is sky-high.

        According to the RBNZ it is at 160% of disposable household income: almost 3x what it was in the early 1990s.


        • aerobubble

          Greece recklessly looked the other way, as even the middle classes dodged taxes.
          NZ difference, is kiwis are too nice that they expect poorer and poorer outcomes, and let the top half pay even less tax, as this will stimulate growth like there was a cheap oil tsunami washing the global economy. Trust in the right to ignore the basics, Thaterism did not grow the economy, cheap high density liquid middle eastern oil did. The idea that we get richer by lowering taxes on the wealthiest is farfetched at best (i.e one off middle eastern oil) and down right feckless stupidity the rest of time. we should be paying to keep govt in balance, re-raising taxes progressively back to some fairer balance. Its just absurd that the right say there are very few foreigner buying homes yet that we need to lower top taxes to attract them here, which is it?

          • Gosman

            What level of tax burden is “fair” in your mind? What percentage of the economy should the State take up?

            • Colonial Rawshark

              It’s not about the percentage of the pie, it’s about the size of the pie. And if state spending into the economy puts money into our pockets and into company profits, why not?

              • In Vino

                Nice irony.
                One could also reasonably say that the state needs to take up 90% of the economy, because that is what the 1% steal if the state allows them to.

            • aerobubble

              Commonsense would dictate that all adults available in case of natural emergencies, war, should be healthy, fed, housed, that they have something to defend and not take up with isil or whatever. Commonsense would dictate that every child could read, could access education needed for our businesses, be able to learn as their families aren’t holding them back from school as they have no shoes… etc.
              Every year that there is a short all taxes should be raised progressively, taking from those who have everything and would not notice the drop in their portfolios of finance wealth.
              Work should mean getting ahead, not living in a damp house and your kids getting sick while the local supermarket sells you a roasting chicken that instead of roasts boils and steams in the water that comes off because some national party voted liked the bonuses he gets from selling a 1.4 chicken as a 1.6.
              National party thinking of take no prisoners has a tipping point, Karl Marx knew that, so yeah capitalism works to match supply and demand, all good until the minions of stupid think it will solve all ills even their stupidity.

              • aerobubble

                Evidence based govt, leaky homes, high house prices, kids starving, mold, etc, all indicate higher taxation is required from the top down. They have the money to bid up on homes, geez would the housing market notice… …no.

            • Mark Craig

              Well in 1982 it was 66% for the the top 40% of earners according to the National Party at the time ,no GST of course but huge sales taxes on luxuries like beer wine cometics ,Tv’s cameras etc etc .Gst is a massive fraud perpetuated on the low paid by a right wing fruit loop by the name of Roger Douglas .There is a special hot place in hell waiting for the old fraud

        • Phil

          That debt hasn’t just magic’ed up out of nowhere and been wasted on hookers and coke. At the same time household financial assets have grown as well.


          NZ household balance sheet:

          Dec 1998 -> Dec 2014
          Financial Assets: 217.7b -> 614.2b
          Financial Liabilities: 45.0b -> 152.8b
          Net Financial Wealth: 172.7b -> 461.4b

          Note that ‘financial assets’ does not include residential property, but financial liabilities does include residential mortgages.

          The take-away point to this is that there are ample assets held by NZ households to back up our NZ household debt. This is well understood by ‘the market’ and is one of the main reasons we’re paying around about 4% interest on long-term NZD debt in global markets and not the mid-teens rates that the Greeks are paying.

          • Colonial Rawshark

            The vast majority of household assets are held by less than 20% of households; the vast majority of household debt is held by the bottom 80% of households. In other words, the distribution of that debt is critical to the wellbeing of NZers overall.

            And when GFC2 comes, those magical Auckland property prices may will disappear, along with those bubblicious fictitious asset valuations which mark to market is currently helping the balance sheets look good – so far.

            • Phil

              Citation needed? Like, you know, actual data on breakdowns of household asset composition? I honestly don’t know if that information exists for NZ – i haven’t looked.

              But, without wanting to be glib about it, banks don’t lend money to people that can’t pay it back.

              • Colonial Rawshark

                But, without wanting to be glib about it, banks don’t lend money to people that can’t pay it back.


                • Phil

                  Greece has not (yet!) defaulted.

                  Also, the structure and nature of bank lending to individuals is substantially different to bank lending to governments.

            • John Shears

              And when GFC2 comes, those magical Auckland property prices may will disappear, along with those bubblicious fictitious asset valuations which mark to market is currently helping the balance sheets look good – so far.

              Bubblicious ….. Now there is a word.

          • RedLogix

            I’m sorry but a fair chunk of what the markets imagine are ‘assets’ are really nothing more than bits of wood and concrete plonked on a chunk of land.

            Did you ever stop to think that a typical Auckland villa in say Birkenhead with a sea view – nowadays selling for something north of $1m – was probably built about 50 -70 years ago for a few hundred quid?

            And yet somehow over those decades it may have changed hands 10 – 20 times and the banks have probably made something in the order of a million dollars of mortgage interest on it?

            That’s why the bank considers it an asset. It’s the certainty of all the money they know they can make on it over time.

            • Colonial Rawshark

              Ah yes of course.

              And ten to twenty times changing hands, don’t forget real estate agent fees of 3% to 4% each time.

            • Phil

              Did you miss the bit where I said “Note that ‘financial assets’ does not include residential property”?

          • David

            Money spent on hookers and coke is never wasted.

            • Lloyd

              Money spent on hookers just like money given to “beneficiaries” always goes back into the economy. Since we don’t grow coca in New Zealand money spent on coke is a loss to the economy.

      • linda 1.1.4

        Debt can only be serviced by screwing savers with low interest rates extend and pretend will only get you so far.

      • keyman 1.1.5

        NZ total debt is fuckin high it ridiculously high those irresponsible wanks who borrowed have to pay it back i think debtor prisons will be needed and no strategic defaults in new Zealand hahahaha!

      • David H 1.1.6

        “We’re NOTHING like Greece.”


        But Key is working on it.

  2. Paaparakauta 2

    You want austerity economics ?

    Have a look at this ..


    Since its takeover of a smaller rival manufacturer last year, workers of three major unions– the FIM (Italian Confederation of Workers’ Trade Unions), UILM (Italian Labour Union) and FIOM (Italian General Confederation of Labour) have fought Whirlpool to retain their jobs across Italy. While the company announced in April that it would cut 1,350 jobs, UILM leader Gianluca Ficco says the total losses may amount to 2,000 jobs. The Caserta plant in southeast Italy that employs 850 workers will be shut down entirely and, for the first time, researchers and office workers will be let go in mass as well. Whirlpool’s job cuts will contribute even more economic hardship to Italy, where the unemployment rate stands at 12.7 percent and 42.6 percent among young people. The Italian Industry Minister Federica Guidi called the company’s actions “disgraceful” and the Labor Minister Giuliano Poletti said the plan was “unacceptable”. Italian workers agree. In April and May, workers blocked
    major highways between Rome and Naples protesting the policies of Whirlpool. This Friday, June 12th, another general strike will be held in Italy over the plans of the Whirlpool Corporation to cut nearly one-third of workers at its plants across Italy.

    Benton Harbor, Michigan presents a case study for the results of Whirlpool’s austerity economics. The city was once the company’s corporate headquarters and industrial base, providing jobs and economic security for residents of the town. But when Whirlpool decided to shutter its Benton Harbor factories and moved to Mexico (where it paid workers $70 a week), the community declined and its majority black population was thrown into economic despair. [.. see link above for more ]

    • Colonial Rawshark 2.1

      Relying on corporate employers who are headquartered out of London or New York and only interested in their own profits, and pay no attention to the costs foisted on to local communities that they don’t give a shit about, is a capitalist hiding to nothing.

    • Gosman 2.2

      I always find it bizarre that leftists think a company should continue employing people even when they have conditions imposed on them that make it unattractive to do so. Whirlpool doesn’t have to employ anyone in Italy and going on Strike to force them to do so is unlikely to make them want to stay.

      • Colonial Rawshark 2.2.1

        Yep. Always best to remember that corporate responsibility to the community is zero.

        • Phil

          How about the corporate responsibility to the unemployed workers in another country that they can’t afford to employ because a bunch of Italians are jamming the local motorway?

          How about the corporate responsibility to the family in a developing nation that cannot afford a heater because the costs of manufacturing and shipping from Italy are so much higher than if the same company was manufacturing locally.

          We can play this game all night, if you want…

          • Colonial Rawshark

            The corporates have zero responsibility to any of those things, you know it, and their track record over decades proves it. Major investors first, other 1% shareholders second, everyone else can wait in line.

            • Phil

              The corporates have zero responsibility to any of those things,

              You’re right, they don’t.

              In the last 30 years, the rapid rise of living standards in developing nations, in large part a result of foreign direct investment in manufacturing and technology, is a huge positive to massive portions of the worlds population.

              Companies haven’t invested in developing nations because of corporate responsibility. They’ve done so because it’s good for their bottom line and it just so happens to have been really good for developing nation living standards too.

              • Anno1701

                “Companies haven’t invested in developing nations because of corporate responsibility. They’ve done so because it’s good for their bottom line and it just so happens to have been really good for developing nation living standards too.”

                Really ?

                Spent a bit of time in these factories have we ?



              • Colonial Rawshark

                They’ve done so because it’s good for their bottom line and it just so happens to have been really good for developing nation living standards too.

                Yeah, I have Chinese river water full of arsenic, cadmium and lead that I want you to take a drink of.

                • Phil

                  And, of course, none of the blame for environmental degradation or non-existent workplace standards can be laid at the door of hopelessly corrupt governments that have a long history of failure to protect their citizens from even the most menial of hazards?

                  I’m not going to defend the appalling practices that some companies have a history of. They’re scum and deserve to be punished.

                  But, at the same time, I’m also not going to ignore that, on balance, the lives of about 3 billion people are demonstrably better than their parents could have ever imagined in their wildest dreams. A large part of the reason is that western companies have heavily invested in their nations.

                  • Mark Craig

                    Holy sheet Fool ,how is the American middle class travelling ,right now .The statistics I am reading tell me they have reverted severely .
                    By the way tell us how the USA is going to pay back the $16 trillion or so it is in the hole. ( mainly to the incompetent Commie Chinese huh? ) How is Nz going to pay back the $ 100 billion Dill English has borrowed .If you cannot or will not go and join the far queue you idiot

          • RedLogix

            How about we do the corporate ‘play workers off against each other to see who’ll do the job for next to nothing’ game?

            Everywhere in the world over the last few decades, wages share of GDP has been declining while the capitalist share increases.

            And righties – who typically imagine themselves as little masters of the universe – all think this is a good thing.

          • The Murphey

            Its not a game

            Any case its above your understanding given your comments here

      • Anno1701 2.2.2

        Then the plant workers should seize the means of production them selves by force if necessary !

  3. Marvellous Bearded Git 3

    The OECD report also recommended a congestion charge for Auckland.

    This has worked in London. The technology is there. It is a no-brainer.

    • Tracey 3.1

      It also recommended greater spending on public transport in Auckland.

      Given this Government doesn’t want to back the Rail loop and associated public transport needs AND doesn’t think the housing price situation is a problem we have to assume this is the other OECD. The one they don’t agree with (see my post below for the other OECD)

    • Colonial Rawshark 3.2

      This has worked in London. The technology is there. It is a no-brainer.

      The technology has been around for one or two decades…

      • Roflcopter 3.2.1

        A congestion charge is worthwhile, but London’s congestion charge mechanism is flawed.

        It charges a set amount per year, irrespective of the number of times you go in and out of London, so people just figure that into their overall outgoings.

        A better approach is to charge on a per-visit basis, so people actually start thinking about whether or not to be in London in a car.

  4. Tracey 4

    Bill English is now in a conundrum given he believes wholeheartedly in OECD research and observations

    For example

    “New Zealand was one of only six developed economies in which both income inequality and disposable income inequality was flat or slightly better between 2007 and 2011, according to the Organisation for Economic Cooperation and Development.

    In its latest report, which looks at the impact of the global financial crisis on inequality across 33 developed economies, the OECD confirms New Zealand performed relatively well through the GFC and its aftermath, Finance Minister Bill English says…

    “However, this Government ran large deficits and borrowed through that period to continue its significant support programmes. At the same time, we also set a track back to surplus and supported an economic recovery that is now delivering more jobs and higher incomes.

    “This latest OECD research confirms that while inequality increased in many OECD countries during the global financial crisis, this was not the case in New Zealand.”


    and Parata

    “In New Zealand, we see the work of the OECD on international education indicators, and Education-at-a- Glance, to be of significant value.

    It provides one of the few ways we are able to view the performance of our system in an international context.

    In particular, we recognise and support the value and importance of investment in people, skills and education, in the current global economic context, that has been a theme of recent Education-at-a-Glance publications.

    These publications show us that New Zealand is doing well in a number of areas”


    • Gosman 4.1

      Your point being what? The OECD provides a lot of data on a lot of different topics. It is not unusual that a government will select the data it deems favourable and ignore recommendations it disagrees with. It is hardly going to outsource the role of policy development to the OECD.

      • Tracey 4.1.1

        It speaks volumes that your two comments on this thread do not address anything in the actual OECD report.

        FOG thinking

  5. Bob 5

    OECD’s stark NZ property warning
    “Rapid population growth and a low responsiveness of supply have led to housing and urban infrastructure constraints. In particular, house prices have risen sharply in Auckland, the largest city, eroding affordability and raising financial-stability risks,” the report says.
    So the OECD doesn’t think property investors are a problem? The problem is purely increased demand with a supply that isn’t keeping up. Isn’t that why the Government just freed up 500ha of land in the latest budget? To give supply a chance outstrip demand, which, based on the excerpt above, will solve the nations financial stability issues. Well glad that is sorted then…
    This report seems as flawed as the Governments response to Auckland housing!

  6. Tom Gould 6

    Relax, folks, it turns out the “alarm” is over too much red tape and other hindrances to unfettered growth and exploitation and all we actually needed to do was ask Phil O’Reilly and the other uber-Tory sycophants. The problem, it seems, is easily solved if we simply got rid of the Auckland metropolitan limit, and any labour and consenting laws, then houses would suddenly become affordable and plentiful.

  7. Draco T Bastard 7

    Freeing up Auckland land for private development and sale at market rates isn’t going to cut it.

    But it will help to make a few of National’s mates richer through capital gain rather than working/producing value.

  8. OMBE 8

    “Freeing up Auckland land for private development and sale at market rates isn’t going to cut it.”
    1) The Housing NZ being tendered is below market value. ref. HNZ tender for McLennans block in Takanini.
    2) Regardless, it wont cut it alone. No Silver bullet. Need to do more such as, including limiting non-residents to buying only new houses. Lower LVR for NZ residents for new build.
    3) Watercare (Akl City Owned) needs to pull finger, they are holding back development on thousands of houses due to inability to keep up with infrastructure demand.

    • linda 8.1

      It not a simple matter to extend infurstructure. Case in point is city intercipter project would t start to 2017 and completed in to 2020s and only one pipe to take the growth from out west these special housing areas that were rejected were reject because there to far away from town supply serwage infurstructure and roaring link. Smith is blowing hot air there do nothing government has left it way to late

    • linda 8.2

      It not a simple matter to extend infurstructure. Case in point is city intercipter project would t start to 2017 and completed in to 2020s and only one pipe to take the growth from out west these special housing areas that were rejected were reject because there to far away from town supply serwage infurstructure and roaring link. Smith is blowing hot air there do nothing government has left it way to late

  9. John 9

    What a bugger we’ve had such a good economy that heaps of Kiwis are coming home from Australia and elsewhere, and those here are deciding not to leave.

    Which past Labour Party leader was it that said Nationals policies would never stop the brain drain in a million years?

    • Stuart Munro 9.1

      It’s not National bringing them back it’s that idiot Hockey munting the Ozzie economy. They should’ve stuck with Rudd – everyone liked him except the Labour party insiders.

    • Grant 9.2

      Tell it to Fonterra.

  10. Churtle 10

    I think that if you want to see what’s wrong with the NZ economy you need to go here


    and you will discover that as a country we have been buying more than we sell for 40 odd years.

    That is why we need a government that will build our economy so that we produce more of what we need, import less and export more.

    More importantly we need to concentrate on our own people to ensure that the opportunity to participate in society is ensured by investment in healthy families, free education (including tertiary & trades) and genuine full employment. In other words we need to organise the economy to work for the people – not solely for “investors”.

    We need a LEFT government !!!

  11. DH 11

    And the Govts response is to cut interest rates which will not only push up prices but reward further those already basking in their handsome profits .

    There’s a simple way to slow down growth in house prices and that’s to cut back the terms banks are giving on mortgages.

    Mortgages used to be for 20 years, then the banks stretched them out to 25 yrs, and now they’re 30 years. That unquestionably pushes up house prices, the price of houses is determined largely by how much people can pay on the mortgage.

    It’s basic maths…..

    a $500k mortgage at 5.5% over 30yrs is $654 per week
    a $500k mortgage at 5.5% over 20yrs is $792 per week

    If $654 week is the maximum a person can afford to pay then they’d only be able to borrow $413,000 if the term was cut to 20yrs.

    Preventing property investors from taking out interest-only loans would also slow down growth in house prices.

    I think there’s a need for people to start assuming that this house price growth is deliberate Government policy. There is absolutely no question that the Govt and the RBNZ have the tools to stop it. That they don’t stop it is pretty overwhelming proof they’re behind it.

  12. Neil 12

    But our glorious leader says there is no housing crisis.

  13. linda 13

    we need madame guillotine and a revolution

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    19 hours ago
  • Five Power Defence Arrangements Defence Ministers’ Joint Statement
    The Defence Ministers from Australia, Malaysia, New Zealand, Singapore and United Kingdom reaffirmed their nations’ continued commitment to the Five Power Defence Arrangements (FPDA), and commended the achievements over the past 49 years as the FPDA moves towards its 50th Anniversary in 2021.  The Ministers recognised the FPDA’s significant role ...
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    19 hours ago
  • Jobs for Nature funding protects health of Hawke’s Bay waterways
    A joint Government and Hawke’s Bay Regional Council project will invest $4.2 million to protect local waterways, enhance biodiversity and employ local people, Environment Minister David Parker announced today.   Over two years, the Hāpara Takatū Jobs for Nature project will fence 195km of private land to exclude stock from vulnerable ...
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    23 hours ago
  • New Year border exception for seasonal workers in the horticulture and wine industries
    2000 additional RSE workers to enter New Zealand early next year employers must pay these workers at least $22.10 an hour employers will cover costs of managed isolation for the RSE workers RSE workers will be paid the equivalent of 30 hours work a week while in isolation From January ...
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    1 day ago
  • Government increases support for New Zealanders to work in seasonal jobs
    The Government is offering further financial support for unemployed New Zealanders to take on seasonal work. These new incentives include: Up to $200 per week for accommodation costs $1000 incentive payment for workers who complete jobs of six weeks or longer increasing wet weather payments when people can’t work to ...
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    1 day ago
  • Government receives Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mos...
    Minister for Internal Affairs Jan Tinetti has today received the Royal Commission of Inquiry report into the Terrorist Attack on Christchurch Mosques, and will table it in Parliament on Tuesday December 8. “I know this will have been a challenging process for whānau, survivors and witnesses of the terrorist attack ...
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    2 days ago
  • New Zealand Government to declare a climate emergency
    The Government will declare a climate emergency next week, Climate Change Minister James Shaw said today.                                       “We are in the midst of a climate crisis that will impact on nearly every ...
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    2 days ago
  • Call for urgent action on Pacific conservation
    A declaration on the urgency of the global biodiversity crisis and the need for immediate, transformative action in the Pacific was agreed at a pan-Pacific conference today. The 10th Pacific Islands Conference on Nature Conservation and Protected Areas is taking place this week across the Pacific.  Minister of Conservation Kiritapu ...
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    2 days ago
  • Speech from the throne
    E aku hoa i te ara o te whai, Kia kotahi tā tātou takahi i te kō, ko tōku whiwhi kei tō koutou tautoko mai. Ko tāku ki a koutou, hei whakapiki manawa mōku. He horomata rangatira te mahi, e rite ai te whiwhinga a te ringatuku, me te ringakape ...
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    2 days ago
  • Keynote address to Chartered Accountants Australia and New Zealand conference
    Speech to the CAANZ conference - November 19, 2020 Thank you, Greg, (Greg Haddon, MC) for the welcome. I’d like to acknowledge John Cuthbertson from CAANZ, the Commissioner of Inland Revenue Naomi Ferguson, former fellow MP and former Minister of Revenue, Peter Dunne, other guest speakers and CAANZ members. I ...
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    3 days ago
  • Expert independent advisory group appointed to strengthen the future of Māori broadcasting
    A panel of seven experts are adding their support to help shape the future of Māori broadcasting, Minister for Māori Development Willie Jackson has announced today. “Today I will meet with some of the most experienced Māori broadcasters, commentators and practitioners in the field. They have practical insights on the ...
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    3 days ago
  • Government to review housing settings
    New Zealand’s stronger-than-expected economic performance has flowed through to housing demand, so the Government will review housing settings to improve access to the market, the Finance Minister Grant Robertson announced today. “Our focus is on improving access to the housing market for first home buyers and ensuring house price growth ...
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    4 days ago
  • Crown accounts reflect Govt’s careful economic management
    The better-than-expected Crown accounts released today show the Government’s careful management of the COVID-19 health crisis was the right approach to support the economy. As expected, the Crown accounts for the year to June 2020 show the operating balance before gains and losses, or OBEGAL, was in deficit. However that ...
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    4 days ago
  • Community launch marks next step in addressing racism in education
    The launch of Te Hurihanganui in Porirua today is another important milestone in the work needed to address racism in the education system and improve outcomes for Māori learners and their whānau, Associate Education Minister Kelvin Davis says. Budget 2019 included $42 million over three years to put Te Hurihanganui ...
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    4 days ago
  • Government to consider recommendations on DNA use in criminal investigations
    The Minister of Justice has received the Law Commission’s recommending changes to the law governing the way DNA is used in criminal investigations. The report, called The Use of DNA in Criminal Investigations – Te Whahamahi I te Ira Tangata I ngā Mātai Taihara, recommends new legislation to address how ...
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    4 days ago
  • Speech to Wakatū Nelson regional hui on trade
    First, I want to express my thanks to Te Taumata for this hui and for all the fantastic work you are doing for Māori in the trade space. In the short time that you’ve been operating you’ve already contributed an enormous amount to the conversation, and developed impressive networks.  I ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Speech to Primary Industries Summit
    Thank you for the opportunity to speak to you today about the significant contribution the food and fibres sector makes to New Zealand and how this Government is supporting that effort. I’d like to start by acknowledging our co-Chairs, Terry Copeland and Mavis Mullins, my colleague, Agriculture Minister Damien O’Connor, ...
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    4 days ago
  • Fast track referrals will speed up recovery and boost jobs and home building
    The Government is taking action to increase jobs, speed up the economic recovery and build houses by putting three more projects through its fast track approval process. “It’s great to see that the fast-track consenting process is working. Today we have referred a mix of potential projects that, if approved, ...
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    5 days ago
  • Papakāinga provides critically needed homes in Hastings
    A papakāinga opened today by the Minister for Māori Development the Hon Willie Jackson will provide whānau with much needed affordable rental homes in Hastings. The four home papakāinga in Waiōhiki is the first project to be completed under the ‘Hastings Place Based’ initiative. This initiative is a Government, Hastings ...
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    7 days ago
  • New Zealand ready to host APEC virtually
    Prime Minister Jacinda Ardern took over the leadership of APEC earlier today, when she joined leaders from the 21 APEC economies virtually for the forum’s final 2020 meeting. “We look forward to hosting a fully virtual APEC 2021 next year. While this isn’t an in-person meeting, it will be one ...
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    1 week ago
  • Revival of Māori Horticulturists
    The rapid revival of Māori horticulture was unmistakeable at this year’s Ahuwhenua Trophy Awards, with 2020 marking the first time this iconic Māori farming event was dedicated to horticulture enterprises. Congratulating finalists at the Awards, Māori Development Minister Willie Jackson said growing large-scale māra kai is part of Māori DNA. ...
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    1 week ago
  • Emergency benefit to help temporary visa holders
    From 1 December, people on temporary work, student or visitor visas who can’t return home and or support themselves may get an Emergency Benefit from the Ministry of Social Development, Social Development and Employment Minister Carmel Sepuloni announced today. Previously, temporary visa holders in hardship because of COVID-19 have had ...
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    1 week ago
  • School sustainability projects to help boost regional economies
    Forty one schools from the Far North to Southland will receive funding for projects that will reduce schools’ emissions and save them money, Education Minister Chris Hipkins announced today. This is the second round of the Sustainability Contestable Fund, and work will begin immediately. The first round announced in April ...
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    1 week ago
  • Farmer-led projects to improve water health in Canterbury and Otago
    More than $6 million will be spent on helping farmers improve the health of rivers, wetlands, and habitat biodiversity in Canterbury and Otago, as well as improving long-term land management practices, says Agriculture Minister Damien O’Connor. Four farmer-led catchment group Jobs for Nature projects have between allocated between $176,000 and ...
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    1 week ago
  • Tupu Aotearoa continues expansion to Pacific communities in Nelson, Marlborough, Tasman & Northl...
    Pacific communities in Nelson, Marlborough, Tasman and Northland will benefit from the expansion of the Tupu Aotearoa programme announced today by the Minister for Pacific Peoples, Aupito William Sio. The programme provides sustainable employment and education pathways and will be delivered in partnership with three providers in Northland and two ...
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    1 week ago
  • New primary school and classrooms for 1,200 students in South Island
    Education Minister Chris Hipkins unveiled major school building projects across the South Island during a visit to Waimea College in Nelson today. It’s part of the Government’s latest investment of $164 million to build new classrooms and upgrade schools around the country. “Investments like this gives the construction industry certainty ...
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    1 week ago
  • Minister of Māori Development pays tribute to Rudy Taylor
      Today the Minister of Māori Development, alongside other Government Ministers and MP’s said their final farewells to Nga Puhi Leader Rudy Taylor.  “Rudy dedicated his life to the betterment of Māori, and his strong approach was always from the ground up, grassroots, sincere and unfaltering”  “Over the past few ...
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    1 week ago
  • Prime Minister to attend APEC Leaders’ Summit
    Prime Minister Jacinda Ardern will attend the annual APEC Economic Leaders’ Meeting and associated events virtually today and tomorrow. “In a world where we cannot travel due to COVID-19, continuing close collaboration with our regional partners is key to accelerating New Zealand’s economic recovery,” Jacinda Ardern said. “There is wide ...
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    1 week ago
  • Speech to Infrastructure NZ Symposium
    Tena Koutou, Tena Koutou and thank you for inviting me to speak to you today. This is a critical time for New Zealand as we respond to the damage wreaked by the global COVID-19 pandemic. It is vital that investment in our economic recovery is well thought through, and makes ...
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    1 week ago
  • Pike River 10 Year Anniversary Commemorative Service
    Tēnei te mihi ki a tātau katoa e huihui nei i tēnei rā Ki a koutou ngā whānau o te hunga kua riro i kōnei – he mihi aroha ki a koutou Ki te hapori whānui – tēnā koutou Ki ngā tāngata whenua – tēnā koutou Ki ngā mate, e ...
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    1 week ago
  • Huge investment in new and upgraded classrooms to boost construction jobs
    Around 7,500 students are set to benefit from the Government’s latest investment of $164 million to build new classrooms and upgrade schools around the country. “The election delivered a clear mandate to accelerate our economic recovery and build back better. That’s why we are prioritising construction projects in schools so more ...
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    1 week ago
  • Keeping Pike River Mine promises 10 years on
    Ten years after the Pike River Mine tragedy in which 29 men lost their lives while at work, a commemorative service at Parliament has honoured them and their legacy of ensuring all New Zealand workplaces are safe. Prime Minister Jacinda Ardern attended the event, along with representatives of the Pike ...
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    1 week ago
  • Additional testing to strengthen border and increase safety of workers
    New testing measures are being put in place to increase the safety of border workers and further strengthen New Zealand’s barriers against COVID-19, COVID-19 Response Minister Chris Hipkins said today. “These strengthened rules – to apply to all international airports and ports – build on the mandatory testing orders we’ve ...
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    1 week ago
  • More public housing delivered in Auckland
    The Government’s investment in public housing is delivering more warm, dry homes with today’s official opening of 82 new apartments in New Lynn by the Housing Minister Megan Woods. The Thom Street development replaces 16 houses built in the 1940s, with brand new fit-for-purpose public housing that is in high ...
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    1 week ago
  • Agreement advanced to purchase up to 5 million COVID-19 vaccines
    The Government has confirmed an in-principle agreement to purchase up to 5 million COVID-19 vaccines – enough for 5 million people – from Janssen Pharmaceutica, subject to the vaccine successfully completing clinical trials and passing regulatory approvals in New Zealand, says Research, Science and Innovation Minister Megan Woods. “This agreement ...
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    1 week ago
  • Jobs for Nature funding will leave a conservation legacy for Waikanae awa
    Ninety-two jobs will be created to help environmental restoration in the Waikanae River catchment through $8.5 million of Jobs for Nature funding, Conservation Minister Kiritapu Allan announced today. “The new funding will give a four-year boost to the restoration of the Waikanae awa, and is specifically focussed on restoration through ...
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    1 week ago
  • New Dunedin Hospital project progresses to next stage
    As the new Dunedin Hospital project progresses, the Government is changing the oversight group to provide more technical input, ensure continued local representation, and to make sure lessons learnt from Dunedin benefit other health infrastructure projects around the country. Concept design approval and the release of a tender for early ...
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    1 week ago
  • Jump in apprentice and trainee numbers
    The number of New Zealanders taking up apprenticeships has increased nearly 50 percent, and the number of female apprentices has more than doubled. This comes as a Government campaign to raise the profile of vocational education and training (VET) begins. Prime Minister Jacinda Ardern and Education Minister Chris Hipkins announced ...
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    1 week ago
  • ReBuilding Nations Symposium 2020 (Infrastructure NZ Conference opening session)
    Tena koutou katoa and thank you for the opportunity to be with you today. Can I acknowledge Ngarimu Blair, Ngati Whatua, and Mayor Phil Goff for the welcome. Before I start with my substantive comments, I do want to acknowledge the hard work it has taken by everyone to ensure ...
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    1 week ago
  • New Zealand's biosecurity champions honoured
    Biosecurity Minister Damien O’Connor has paid tribute to the winners of the 2020 New Zealand Biosecurity Awards. “These are the people and organisations who go above and beyond to protect Aotearoa from pests and disease to ensure our unique way of life is sustained for future generations,” Damien O’Connor says. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago