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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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    15 hours ago
  • Government makes further inroads on predatory lenders
    Mobile traders and truck shops must adhere to responsible lending requirements Interest rate cap on high-cost loans Lenders prohibited from offering further credit to an applicant who has taken two high-cost loans in the past 90 days The Minister of Commerce and Consumer Affairs, Kris Faafoi, has signalled an end ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • New survey shows wage subsidy a “lifeline” for businesses, saved jobs
    94% of firms say wage subsidy had positive impact on cashflow 62% of firms say support helped to manage non-wage costs like rent A survey of business that have received the Government’s wage subsidy show it has played a significant role in saving jobs, and freed up cash flow to ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Tax changes support economic recovery
    New legislation introduced to Parliament today will support growth and assist businesses on the road to economic recovery, said Revenue Minister Stuart Nash. “The Taxation (Annual Rates for 2020-21, Feasibility Expenditure, and Remedial Matters) Bill proposes that businesses can get tax deductions for ‘feasibility expenditure’ on new investments,” said Mr ...
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    20 hours ago
  • $4.6 million financial relief for professional sports
    Sport and Recreation Minister Grant Robertson has welcomed the first release of funds from the $265 million Sport Recovery Package announced as part of Budget 2020. Sport NZ has announced that $4.6 million in funding will go to the Wellington Phoenix, NZ Warriors, Super Rugby teams and the ANZ Premiership ...
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    22 hours ago
  • Critical support for strategic tourism assets
    An iconic New Zealand tourism attraction and the country’s 31 Regional Tourism Organisations are the first recipients of support from the $400 million Tourism Sector Recovery Plan, to help position the sector for recovery from COVID-19, Tourism Minister Kelvin Davis announced today. The plan includes a Strategic Tourism Assets Protection ...
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    23 hours ago
  • Supporting Kiwi businesses to resolve commercial rent disputes
    The Government will legislate to ensure businesses that suffered as a result of the COVID-19 response will get help to resolve disputes over commercial rent issues, Justice Minister Andrew Little announced today. A temporary amendment to the Property Law Act will insert a clause in commercial leases requiring a fair ...
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    1 day ago
  • Prompt payments to SMEs even more urgent
    The Minister for Small Business says new data from Xero highlights the urgency of prompt payment practices to small and medium enterprises as we move into economic recovery. Last month Government ministers wrote to significant private enterprises and the banking industry to request they join efforts by government agencies to ...
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    1 day ago
  • Free period products in schools to combat poverty
    Young people in Waikato will be the first to have free access to period products in schools in another step to support children and young people in poverty,” Prime Minister Jacinda Ardern said.  During term 3, the Ministry of Education will begin providing free period products to schools following the ...
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    2 days ago
  • Response to charges in New Plymouth
    The Minister of Police Stuart Nash has issued the following statement in response to charges filed against three Police officers this morning in the New Plymouth District Court. “Any incident involving a loss of life in Police custody is taken very seriously. The charges today reflect the gravity of the ...
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    2 days ago
  • Govt boosts innovation, R&D for economic rebuild
    $196 million for Crown Research Institutes $150 million for R&D loan scheme $33 million for Māori research and development opportunities $12 million for the Nationally Significant Collections and Databases $10 million to help maintain in-house capability at Callaghan Innovation New Zealand’s entrepreneurs, innovators and crown researchers will benefit from a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Temporary changes to NCEA and University Entrance this year
    Further temporary changes to NCEA and University Entrance (UE) will support senior secondary school students whose teaching and learning have been disrupted by COVID-19. “The wellbeing of students and teachers is a priority. As we are all aware, COVID-19 has created massive disruption to the school system, and the Government ...
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    2 days ago
  • Extended terms for the directors of the Racing Industry Transition Agency
    Minister for Racing Winston Peters today announced that the terms for the directors of the Racing Industry Transition Agency (RITA) have been extended to 30 June 2021. Due to the COVID-19 crisis the transition period has been extended to ensure that the Racing Industry Bill can complete its progress through ...
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    2 days ago
  • Healthy Homes Standards statement of compliance deadline extended
    The deadline for landlords to include detailed information in their tenancy agreements about how their property meets the Healthy Homes Standards, so tenants can see the home they are renting is compliant, has been extended from 1 July 2020 to 1 December 2020.  The Healthy Homes Standards became law on 1 July 2019. The Standards are ...
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    3 days ago
  • Criminal Cases Review Commission board appointments announced
    Justice Minister Andrew Little today announced details of further appointments to the Criminal Cases Review Commission. “I am pleased to announce Paula Rose QSO OStJ as Deputy Chief Commissioner for a term of five years commencing on 15 June 2020,” said Andrew Little. “I am also pleased to announce the ...
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    3 days ago
  • Release of initial list of supported training to aid COVID-19 recovery
    The Targeted Training and Apprenticeships Fund (TTAF) will pay costs of learners of all ages to undertake vocational education and training The fund will target support for areas of study and training that will give learners better employment prospects as New Zealand recovers from COVID-19 Apprentices working in all industries ...
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    3 days ago
  • Emission trading reforms another step to meeting climate targets
    The Emissions Trading Scheme (ETS) will finally start to cut New Zealand’s greenhouse gas pollution as it was originally intended to, because of changes announced today by the Minister for Climate Change, James Shaw. The changes include a limit on the total emissions allowed within the ETS, rules to ensure ...
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    3 days ago
  • Queen’s Birthday Honours highlights Pacific leadership capability in Aotearoa
    Minister for Pacific Peoples Aupito William Sio says the Queen’s Birthday 2020 Honours List provides an abundance of examples that Pacific people’s leadership capability is unquestionable in Aotearoa. “The work and the individuals we acknowledge this year highlights the kind of visionary examples and dedicated community leadership that we need ...
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    4 days ago
  • Govt backing horticulture to succeed
    The Government is backing a new $27 million project aimed at boosting sustainable horticulture production and New Zealand’s COVID-19 recovery efforts, says Agriculture Minister Damien O’Connor. “Our horticulture sector has long been one of New Zealand’s export star performers, contributing around $6 billion a year to our economy. During and ...
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    4 days ago
  • Applications open for forestry scholarships
    Applications have opened for 2021 Ngā Karahipi Uru Rākau – Forestry Scholarships, which will support more Māori and women to pursue careers in forestry science, says Forestry Minister Shane Jones. “I’m delighted Te Uru Rākau is offering Ngā Karahipi Uru Rākau – Forestry Scholarships for the third year running. These ...
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    4 days ago
  • Excellent service to nature recognised
    The Queen’s Birthday 2020 Honours List once again highlights the dedication by many to looking after our native plants and wildlife, including incredible work to restore the populations of critically endangered birds says Minister of Conservation Eugenie Sage. Anne Richardson of Hororata has been made an Officer of the New ...
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    4 days ago
  • Wetlands and waterways gain from 1BT funding
    The Government will invest $10 million from the One Billion Trees Fund for large-scale planting to provide jobs in communities and improve the environment, Agriculture Minister Damien O’Connor and Forestry Minister Shane Jones have announced. New, more flexible funding criteria for applications will help up to 10 catchment groups plant ...
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    5 days ago
  • New fund for women now open
    Organisations that support women are invited to apply to a new $1,000,000 fund as part of the Government’s COVID-19 response. “We know women, and organisations that support women, have been affected by COVID-19. This new money will ensure funding for groups that support women and women’s rights,” said Minister for ...
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    5 days ago
  • Govt supports King Country farmers to lift freshwater quality
    Healthier waterways are front and centre in a new project involving more than 300 King Country sheep, beef and dairy farmers. The Government is investing $844,000 in King Country River Care, a group that helps farmers to lift freshwater quality and farming practice, Agriculture Minister Damien O’Connor announced today. “Yesterday ...
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    7 days ago
  • Libraries to help with jobs and community recovery
    A major funding package for libraries will allow them to play a far greater role in supporting their communities and people seeking jobs as part of the economic recovery from COVID-19. “Budget 2020 contains over $60 million of funding to protect library services and to protect jobs,” says Internal Affairs ...
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    7 days ago
  • Support for arts and music sector recovery
    A jobseekers programme for the creative sector and four new funds have been set up by the Government to help our arts and music industry recover from the blow of COVID-19. Thousands of jobs will be supported through today’s $175 million package in a crucial economic boost to support the ...
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    7 days ago
  • Legislative changes to support the wellbeing of veterans and their families
    Minister for Veterans Ron Mark has welcomed the First Reading of a Bill that will make legislative changes to further improve the veterans’ support system.  The Veterans’ Support Amendment Bill No 2, which will amend the Veterans’ Support Act 2014, passed First Reading today. The bill addresses a number of ...
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    7 days ago
  • Christ Church Cathedral – Order in Council
    Views sought on Order in Council to help fast track the reinstatement of the Christ Church Cathedral  The Associate Minister for Greater Christchurch Regeneration, Hon Poto Williams, will be seeking public written comment, following Cabinet approving the drafting of an Order in Council aimed at fast-tracking the reinstatement of the ...
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    1 week ago
  • New Zealanders’ human rights better protected in new Bill
    The law setting out New Zealanders’ basic civil and human rights is today one step towards being strengthened following the first reading of a Bill that requires Parliament to take action if a court says a statute undermines those rights. At present, a senior court can issue a ‘declaration of ...
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    1 week ago
  • Deep concern at Hong Kong national security legislation
    Foreign Affairs Minister Winston Peters today reiterated the deep concern of the New Zealand Government following confirmation by China’s National People’s Congress of national security legislation relating to Hong Kong. “New Zealand shares the international community’s significant and long-standing stake in Hong Kong’s prosperity and stability,” Mr Peters said. “New Zealand ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government invests in New Zealand’s cultural recovery
    Thousands of artists and creatives at hundreds of cultural and heritage organisations have been given much-needed support to recover from the impact of COVID-19, Prime Minister and Minister for Arts, Culture and Heritage Jacinda Ardern announced today. “The cultural sector was amongst the worst hit by the global pandemic,” Jacinda ...
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    1 week ago
  • Better protection for New Zealand assets during COVID-19 crisis
    Key New Zealand assets will be better protected from being sold to overseas owners in a way contrary to the national interest, with the passage of the Overseas Investment (Urgent Measures) Bill. The Bill, which passed its third reading in Parliament today, also cuts unnecessary red tape to help attract ...
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    1 week ago
  • Cleaning up our rivers and lakes
    Setting higher health standards at swimming spots Requiring urban waterways to be cleaned up and new protections for urban streams Putting controls on higher-risk farm practices such as winter grazing and feed lots Setting stricter controls on nitrogen pollution and new bottom lines on other measures of waterway health Ensuring ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Record year for diversity on Govt boards
    The Government is on the verge of reaching its target of state sector boards and committees made up of at least 50 percent women, says Minister for Women Julie Anne Genter and Minister for Ethnic Communities Jenny Salesa. For the first time, the Government stocktake measures the number of Māori, ...
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    1 week ago
  • New appointments to the Commerce Commission
    The Commerce and Consumer Affairs Minister and Broadcasting, Communications and Digital Media Minister, Kris Faafoi, has today announced the appointment of Tristan Gilbertson as the new Telecommunications Commissioner and member of the Commerce Commission. “Mr Gilbertson has considerable experience in the telecommunications industry and a strong reputation amongst his peers,” ...
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    1 week ago
  • Historic pay equity settlement imminent for teacher aides
    The Ministry of Education and NZEI Te Riu Roa have agreed to settle the pay equity claim for teacher aides, Education Minister Chris Hipkins announced today. This will see more than 22,000 teacher aides, mostly women, being valued and paid fairly for the work they do. “Teacher aides are frontline ...
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    1 week ago
  • Govt delivers security for construction subcontractors
    Subcontractors will have greater certainty, more cashflow support and job security with new changes to retention payments under the Construction Contracts Act says Minister for Building and Construction, Jenny Salesa. A recent review of the retentions money regime showed that most of the building and construction sector is complying with ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand and Singapore reaffirm ties
    Prime Minister Jacinda Ardern and Singapore Prime Minister Lee Hsien Loong have marked the first anniversary of the New Zealand-Singapore Enhanced Partnership with a virtual Leaders’ Meeting today. The Enhanced Partnership, signed on 17 May 2019, provides the framework for cooperation across the four main areas of trade, defence and ...
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    1 week ago
    On 17 May 2019, New Zealand and Singapore established an Enhanced Partnership to elevate our relations. The Enhanced Partnership – based on the four pillars of trade and economics, security and defence, science, technology and innovation, and people-to-people links – has seen the long-standing relationship between our countries strengthen over the ...
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    1 week ago
  • Government investment supports the acquisition of new Interislander ferries
    State-Owned Enterprises Minister Winston Peters has welcomed KiwiRail’s announcement that it is seeking a preferred shipyard to build two new rail-enabled ferries for the Cook Strait crossing. “This Government is committed to restoring rail to its rightful place in New Zealand. Bigger, better ships, with new technology are yet another ...
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    1 week ago