For landlords. If your business is too highly geared it is your fault, not the customers. You are using your customers to buy the house for you. You wouldn't get loans for a normal business, if the outgoings were so close to the costs. It is only the banks expectations that you will, in fact, make a large profit in the end from capital gains, that they base their lending on.
That so many can borrow beyond the rentals earnings, as a going concern, is a consequence of steeply rising prices. Especially if they already have other houses as collateral. And a prime cause of the whole merry go round.
The same thing has happened with farms, where banks will lend on the land, at levels way in excess of any possible earnings from a going concern farm, in the expectations of the land making huge gains on sale.
No one who simply wants a home, or to farm can keep up.
Exactly. Landlords, whether one or multiple property owners, are hardly the entrepreneurial geniuses ‘housing the nation’ that their spokespeople try to portray.
If interest rates rise, Accomodation Supplements are canned or reduced, or a CGT instituted, it will be tears at bedtime and w-w-wailing for bailouts.
After so many years, untaxed or lightly taxed profits from property are a no-go area for the main Parliamentary parties apart from Māori and Greens perhaps.
But the answer is there–supply–start a Govt. Dept., fully publicly owned, to plonk modular houses and apartments from one end of the country to other until everyone is housed satisfactorily. And institute rent control right now to send “a signal” while plans are actioned.
"hardly the entrepreneurial geniuses housing the nation"……….lol. Couldn't of put it better. As I commented in my time being a landlord it was money for jam……..easiest "work" I have every done!
That's because as a person who has only 'worked' to earn a living you don't really grasp what it is to put a price on 'risk'. And the very basic bit of landlording you did didn't involve much risk and with maybe only a handful of tenants involved you never struck a bad one.
But ask yourself this – why do you think the banks won't lend to just anyone and everyone who wants a home? If they would do that then there would be no need for anyone to ever rent.
Red Logix. Often appreciate your point of view, so don't want to get into a battle with you. I am sorry if the new housing regulations are proving stressful for you, really I am.
I have run my own business since 2006. So I have an idea about risk. Before that I was a paid employee, and have done a wide range of jobs.
Most of us live very conservative, safe lives, we avoid real risk like the plague. We default to the idea of labour being the only 'real' measure of money (I still have this hard-wired into me) – but a few among us escape this trap.
One day I got a 40 min helicopter ride sitting next to Phillipe Pascal, the man who had raised U$7.5b for this project. This is real risk, and getting to success was incredibly hard work for everyone involved. I worked most of 2019 on this site, it was an amazing experience and I watched this with some pride.
It's transformed the economy of a whole country. Of course the anti-capitalists here will line up to take pot-shots, and to be fair as with anything human there are flaws and failings that can be rightly criticised. But how many among us here at The Standard – can say that we've achieved something like this?
Is that all that's important to you? Something to attack? It's odd how you've expressed no interest in how it's transformed the lives of the local communities. People getting out of poverty and all that.
But yes there was considerable labour conflict on site for a period. On my first rotation I arrived completely unaware of a major riot that had occurred in another location (it's a huge site, it takes an hour to drive from the coast where I was working to the mine entrance). There were multiple unions active on site, but one of them was determined to gain leverage and literally shut the place down for weeks. Gangs of men in trucks patrolled around the site, throwing rocks, confronting anyone they met, stopping supplies, cutting communications, wrecking offices and camps. It was really very violent and dangerous and I was totally cut off from the outside world along with a small team of Australians (just the six of us) in one of the smaller camps on the coast for four weeks.
In the end it was us, a couple of managers, some cooks and a dozen heavily armed security guards, hunkered down keeping a very low profile. We got through it OK, and we actually got a lot of work done without anyone else breathing down our neck. But it was more of an adventure than advertised.
The union did have something of a valid complaint in that while there were many thousands of skilled ex-pat workers onsite who were there legitimately and authorised by the govt labour dept, there was also a large Chinese labour contractor who was blatantly breaking the rules and undercutting the local labour. It's not necessarily and easy or quick thing to solve, sure you can ditch the problematic contractor, but that leaves you with a big gap in resource. Eventually the govt and First Quantum found a way around it all – but as with anything in Latin America it took way longer than you or I would think reasonable.
So there is something for you to be outraged over.
RL – I'm not sure that there has been a lot of risk in residential property investment over the last two decades? As you yourself said yesterday, "And the simple answer is that for several generations now the only reliable investment in this country has been property."
I absolutely don't blame people or think they are evil for acting in a financially rational manner – we all want our families to eat. I might however raise an eyebrow (Judith style) when people try to glamourise that rationality as some sort of virtue – such as providing homes for people, or wealth creation, or risk taking.
In terms of the linked video, although some business enterprises do involve remarkable people with vision and a bravery in the face of risk, it's not really the norm. Most businesses are risk averse. Innovation and new product development is hard – it is much easier to turn a profit by cutting labour costs, outsourcing to low-wage economies, monopoly/cartel behaviour, ticket-clipping, externalising costs (environmental, social) onto the taxpayer, etc..
Disclaimer: In an earlier life before the venture capitalists decided that two Indians and half a German could do my job for less money – I had the financial resources to invest in residential property. I decided not to – partly because although it was low-risk it was also a lot of hassle, plus I had vague thoughts that maybe it wasn't particularly socially responsible. I claim no virtue in this decision, it is just how things work out.
For most landlords with just the one unit (usually an ex-family home) – it's not very risky at all. But then the returns are pretty modest as well. It's only when you start leveraging up a stack of 10 or more that it becomes substantially more difficult. But relatively few get there, Pareto’s law applies to landlording too.
it is much easier to turn a profit by cutting labour costs, outsourcing to low-wage economies, monopoly/cartel behaviour, ticket-clipping, externalising costs (environmental, social) onto the taxpayer, etc..
Each one of those is worth several posts and many threads, but in general yes there are many commercial activities that fall somewhere on a very broad spectrum between pure labour and pure entrepreneur. And I agree that not all of them have equal social merit.
And yes there are plenty of unpleasant, ego-driven, status-seeking people in the business world doing things we find ethically deplorable. The transformation of the human heart lies in our future. But for the time being at least capitalism gives these people something to do other than actual war, rape and pillage.
Unlike the promoters of marxist utopia's, I don't defend capitalism because I think it's any kind of ideal. It's not even very ideological, it's really just a handful of economic tools and ideas that have evolved into something incredibly complex and pervasive. And as such I expect it will continue to evolve into new forms as our social horizons and moral vision expand.
Yeah, that would be something to see. We should have followed immediately after Australia removed them.
In Australia the percentage of IO loans for residential was quite high..from memory 30 or 40%. Not sure how many are IO in NZ but probably similar as it’s been encouraged.
Im stirring….I dont think they will (immediately) especially without waiting to see how the package plays out, but the option is there.
“Nearly 40% of bank lending to residential property investors is on interest-only arrangements – RBNZ tight-lipped on whether this is too high, but raises concerns over leverage”
Yeah, everybody else was prepared for the pandemic and could see it coming as soon as that bat fled that cave except for those who find themselves financially struggling. Clearly, they made bad personal choices and should suffer the consequences.
Is this comment too much ‘lefty resentment’ or too ‘RWNJ’? What do you think?
The already rich are on the line heading upwards – getting richer because of a range of Government policies aimed at responding to Covid-19. Meanwhile, renters, beneficiaries and the working poor are getting poorer because their rents are rising, their incomes are falling and they have received barely any more direct help than they got before the pandemic.
This isn’t a binary issue, and continuing to frame it as such is unhelpful. Personally I feel for anyone who is struggling to pay their bills regardless of what they are, one would argue these people are on the lower leg of the ‘K recovery’ like the working poor and renters etc.
We are all closer to becoming destitute than becoming a billionaire.
How many riding the 'up elevator' reallywant all elevators to go up?
It would be a great 'trick' to pull off – in the meantime we can beef up redistribution so that the 'down escalator' travels more slowly.
Really don't understand how a bit more redistribution could put everyone on the down escalator – can you talk me through it? Lets say the Government instituted a wealth tax or some other policy that resulted in the transfer of 2% of your wealth to those on the 'down escalator.' How might that transfer put you on the ‘down escalator‘?
I'm curious as to why you think the financial security of everyone on the up escalator is so marginal – seems to me that the opposite is true. I write as someone on the 'up escalator.' Sure, my position is towards the bottom of that escalator, but it feels secure to me – a 2% wealth tax would barely affect me.
In my view your answer [Redistribution] really amounts to taking everyone off the up and putting them on the down. Very marxist. – RL @11:02 am
RL, please can you talk/walk me through how ‘a bit more‘ redistribution could put everyone on the ‘down escalator‘? Note that I’m definitely not seeking some sort of Marxist utopia – that wouldn’t suit me at all. But a bit more redistribution sure could go a long way to slowing that ‘down escalator‘, and there but for the grace of God…
“I believe that with great wealth comes great responsibility, a responsibility to give back to society and a responsibility to see that those resources are put to work in the best possible way to help those most in need.” – Gates
And, while I've never met anyone who told me that they thought poverty was/is a good thing, I believe that some on the 'up escalator' have become overly reliant on relative poverty – for example, those that can't cope when the tap of cheap labour is turned off.
Historically the only place where poverty could operate as a virtue was within the very specific settings of some form of monastic lifestyle. In particular it only works where sex and having family is prohibited.
I'm curious as to why you think the financial security of everyone on the up escalator is so marginal – seems to me that the opposite is true. @11:43 am
RL, please can you talk/walk me through how ‘a bit more‘ redistribution could put everyone on the ‘down escalator‘? @12:08 pm
Probably my misinterpretation, in which case apologies.
RL, I've never met anyone who personally sought out poverty, which is a pity really because I'm sure their worldview would be interesting.
Well I have been in the fortunate position to have met some one like that. He sleeps "rough" here in Thames and I get to meet him on a regular basis. I've often discussed with him the possibility of moving in to better accommodation than behind his favourite building. But his chosen site is where he prefers. He is his own person and while he would like to have someplace he could have a shower on occasions and a place to heat up some food, the lifestyle he chooses is his own, and at the moment suits him. Although tangata whenua, he claims no river and no mountain, he claims no one. He is a very spiritual person, preferring his own company.
Of the 20 or so rough sleepers in our town I have written on their behalf to the 4 ministers and associate ministers responsible for housing and homeless persons, suggesting that they consider working with a local ngos towards the establishment of a Hub where these people could have shelter, a shower, meet, and share food. Funding would be directed to the employment of staff for the supervision of the centre. I have not received any response.
A decent answer is well beyond the scope of a short comment. But in brief the answer I would offer is that we already do a great deal of redistribution (especially around education, health and security) to ensure everyone gets a reasonable equal opportunity.
But it's much harder and far more problematic to ensure equal outcomes. Some element of competitive innovation or 'doing better' has to be built in otherwise most people simply stop bothering. The Soviet Union was the great example — "they pretend to pay us, we pretend to work".
Perhaps we could make more progress if we worried less about the material measures of wealth inequality, and started to ask more questions around what defines true wealth and what are the best uses it can be put to? And in this I keep coming back to the concept of a social and economic life based on ideas of duty and service.
Sorry – that does fall short of answering your question.
@Macro (1:52 pm) – thanks for that. Your vision of a 'homeless(ness) Hub' is very valuable and positive. I hope that you continue your lobbying and are (eventually) successful.
My brother lives in Thames now, and we know the place well. It's likely you'll bump into him one day.
Your rough sleeper is essentially what we used to call a 'hermit'. Single men who have stepped outside of society have always existed in our history. It's just that our climate and DoC don't really let them live on mountain tops these days.
And respect for you willingness to reach out to him and advocate for those in a similar position. It's not an easy task helping people and I sincerely look up to those who are good at it.
@RL (2:02 pm) – that's helpful. Tbh I reckon many of those on the 'down escalator' couldn't give a toss about ensuring "equal outcomes" – they just need a bit more help. As to how to fund it, well, there's no getting around the fact that NZ is (on the whole) a wealthy country.
And I think your observation that some seem overly concerned about material wealth is on the money – focusing on the inequality of material wealth is so punitive.
Wow my 'creaming it" comment has really struck a nerve. Maybe I should be more careful with my language.
The people I object to are the ones who own property, rent it out, will push the rents up no matter the impact on the tenants, because they have over leveraged and scream and howl that its not fair, not owning that most likely they are in a far better position than their tenants, the consequences for which could mean eviction, trying to find another place to live in an over priced under supplied market, may forgo back necessities to keep a roof over their head by paying the rent increase, have no hope of ever buying their own digs. Their situation is always in the fore front of my mind. As was young first home buyers being out bid by investors, some of who turn out to be unhappy because now they will have to hold on to the property longer and gradually no longer be able to claim interest as a tax deduction.
But yes I will be more careful with my language in future. I am not here to inflame things
Checked the Australian figure. Three years ago 25% of all residential property loans were interest only so not as bad as I thought. Still that's a huge number.
"Interest-only home loans used to rival their principal and interest (P&I) repayment counterparts, accounting for around 40% of all outstanding mortgage balances in the mid-2010s. But that was before regulatory bodies introduced measures to slow down this form of lending. The Australian Prudential Regulation Authority (APRA) imposed a 30% restriction on the number of home loans issued by banks that could be interest-only in 2017."
As a mortgage underwriter in Australia, we are seeing a rise of interest only owner occupied loan applications, scraping through in terms of serviceability. LVR's ranging wildly, but not exceeding 80%.
This is quite eye opening coming back to underwriting from my secondment with the COVID19 hardship response team, as there was a push for borrowers who reached maximum assistance (6-10 months moratorium) to go interest only. I wouldn't really like to consider what % our portfolio is on IO repayments, treading water.
Yup. We were never tempted to go interest only either. Only speculators or the very marginal go down that path. Long term investors want to get the mortgage paid off eventually and IO doesn't get you there.
For owner occupiers (not investors) is interest only still cheaper than rents? It gives people time to recover without losing a deposit or being subjected to the renting merry go around.
Yesterday I commented that landlords were creaming it and I got howls of protests about overgeneralizing and most landlords aren't like that and what do you think being a land lord is……a social service.
KJT you are spot on. If their business is too geared it is their fault/responsibility. They took a risk with an investment and it didn't work out…….maybe, they made a poor business decision.
The govt actually had to take very significant action on this. Just like they did with Covid.
I also commented that I was a landlord once when I had to move city and thought it possible I would move back home and wanted to hold onto my home. This was a few years back now. Being a landlord is money for jam. Its like a hobby really. You have a property manager, your accountant sets things up vey nicely for you. Occasionally you have to make decisions about ………actually I am struggling to think of what decisions I had to make. Oh thats right, if the tenants request things, which I was always happy to go along with as I had a small mortgage and I was happy to use the low rent I was charging to make improvements for them.
It would be interesting to know how many landlords are highly geared. If interest rates went back up to 5% or 6% if they could cope with that. Hopefully they have been smart enough to realise that the current interest rates are as low as they have ever been and at some point may increase and have budgeted for that. I do feel for any landlord that has recently purchased a rental and have only say 80% equity, as this will be a game changer for them now that the interest non deductibility is phased in. Like I say, the non deductibility is like them receiving an interest rate rise, so hopefully they have budgeted for the possible increase.
My guess is that many long-term 'buy and hold' landlords who have been in the business for more than say 15 yrs will have a total LVR under 60%. The reason why is that the price inflation we have been seeing means that any new property you purchase is going to be negative cash flow for many years, and there is a real limit to how often you can do that.
But what is also happening is that while interest rates are low for the moment, but at the same time other fixed costs like rates and insurance have increased dramatically. We have one unit where the latest insurance bill now consumes 22% of the rent.
Interestingly here in Australia one of the internal rules the banks are using to check the serviceability of new lending is to assess what would happen with an interest rate of 6.45%. So they understand that the current low rates are not likely to last forever. Indeed as the current generation of boomers retire over the next few years, and transition from the greatest investors of all time, to the greatest consumers of capital there is a real argument that rates could easily go over 10% again.
That 5-7% aligns with our experience here in Australia.
Where interest rates will go in future depends a lot on how long govts around the world can keep printing money to keep them where they are now. If they fail in this, then all bets are off, I don't think anyone knows how that will play out.
That so many can borrow beyond the rentals earnings, as a going concern, is a consequence of steeply rising prices.
80% of landlords never go beyond the one unit – because it's not as easy as you portray. If you're negatively geared (as we were for a long period – at 9% interest rates that was inevitable even when we never went over 60% LVR), the bank isn't going to lend more to you just because you queue up and smile sweetly.
Banks don't look at just the increased equity, they look at your serviceability and past a certain age your exit strategy as well. The idea that you can borrow without limit is just wrong. The relatively few people who do manage to get to more than 10 units have negotiated a tricky balance of cash flow, costs, lots of leg work – plus a bit of luck – to get there. Most people don't want to do that because the risk goes up substantially and it becomes close to a full time job to manage. No-one is portraying landlords as 'entrepreneurial geniuses' – in normal times it was always considered a relatively modest strategy that took decades to pay off. People don't want to play casino with their life savings.
Well as I've said elsewhere, established owners with little or no borrowing will be very happy – this govt has just eliminated virtually any new competition in the rental market.
"It is only the banks expectations that you will, in fact, make a large profit in the end from capital gains, that they base their lending on."
Isn't more the ease of claiming the security for the loan than the expected capital gain? That's of course buoyed by record capital gains that're occurring at the moment, but are banks really lending against what they think a future sale price might reach?
Its both…the banks want the income stream and are happy to extend the credit in a rising market because should you default they have an asset of increased value that they can dispose (or preferably releverage) with a reduced fear of loss…..and the fees theyll add.
That would appear a strange anomaly….and the fact his unit still has quake damage is appalling….though I wonder if the units are earmarked to be replaced so upgrades are avoided.
I don't know the answer to this, but are you saying that banks are lending against a projected value of the asset, rather than its actual value at the time of the lending?
Taking out a mortgage only pushes up the prices of whatever product you are selling. The ideal situation is where an investor is sufficiently cashed up that he can invest without borrowing. Alternatively, he might be able to get an interest free loan. Long live Social Credit!
Someone dial 111, Judith Collins is involved in another train wreck on the radio.
From the thoroughly fake sounding surprise greeting (akin to real estate agent photos in the paper), to the assertions that rent controls never work anywhere, to the antagonistic tone taken when challenged on her assertions.
Can anyone be harmed by excessive schadenfreude? I may need medical attention.
“Behold,” he could have said, “the reality of global trade. Behold the tankers full of the oil that warms the climate and keeps the vile House of Saud in power. Behold the trillion tonnes of cheap consumer goods, from the factories of Asia to the landfills of Europe. Just look at it all. It cannot be sustainable. And how easily we could wean ourselves off it. Ladies and gentlemen, it is not too late.”
It's incredibly lazy for people like Bennett to write snarky pieces like this, in complete ignorance of how the world works. Virtually everything about his modern comfortable life has been enabled by just this 'global trade' that he sneers at. He just doesn't know it.
People like him would stand by cheering when the house burned down because they didn't like the decor in the upstairs bathroom.
Well I guess he got paid for churning out his silly bit of click-bait – which is about the sum total of it's merit.
I suspect Mr Bennet knows pretty well what provides for his lifestyle and I also suspect he isnt a big consumer of frippery…sadly nuance is becoming in increasingly short supply as is humour.
Well I'll give Bennett credit for having the curiosity and energy to ask the question and chase down some answers. How well he succeeded might be gauged by some of the review comments.
But the question is certainly worth asking – and the answer lies very much buried within CCP policy and their basic purpose for money. In the West we view money as a tool to enable economically worthwhile productivity, market pricing being a tool to manage this. The CCP uses money as a tool to maximise employment and maintain social stability, price being of relatively lesser importance – if any in the case of the underpants.
How is it that NZ prisoners are not allowed access to the internet while Putin's most feared opposition incarcerated in the most punishing gulag Russia has , can operate an Instagram account ?
People we manage in our prisons do not have access to computers with internet connection so cannot use email.
Navalny said in a post on Instagram that he had been given six reprimands over two weeks, and that two reprimands would be technically enough for a prison tribunal send a prisoner to a punishment cell.
Ask Kim Hill to ask that question next she does a piece on this, or any news/current events show on RNZ for that matter, I am sure they will be only too willing to shift from the established narrative.
When Peters couldn't answer a question or didn't want to answer a question, he would turn it into a he said/she said argument so that the question was never answered. Only he was better at doing it than Judith.
His statements seemed to me to be at least as general as were those of Judith Collins. However not a single one was questioned in any way and no evidence was requested for any of them. And people still think that Radio NZ is "impartial"?
The renter advocate's statements may have been general alwyn but they were much clearer and far less equivocal than Judith Collins. I almost had the feeling she was being deliberately ambiguous for the sake of it.
Having said that, I agree with you that some RNZ radio hosts are not always impartial. There are one or two of them who enjoy arguing for the sake of it which doesn't achieve much imo.
Please when you address a particular commenter put the name or pseudo. I want to know what about and to whom you are talking, Some people certainly cry out to be called w…s and I want to see if you have picked the right one in my opinion.
By no means – some people handle the powers of petty bureaucracy generously, others become martinets.
Freedom campers, once merely known as campers, are losing the local version of allemansrätten to a failure of local government imagination.
Not so keen on extending the generalization to teachers however – most do their best within the constraints of a system that gives them relatively little freedom of action.
Is it just me or do others feel like these calls for, in this case tech entrepreneurs, everyone to move to a new silicon valley (NZ) more than a bit arrogant and condescending? Have they not noticed that a lot of people live here already and that they may have a different view about others deciding to "invade" their country? Maybe we actually don't want them? It's not like Silicon Valley has made life wonderful for all the people who live or used to live in the area. Some studies have shown that incomers in places like Seattle and Portland have just pretty much displaced existing populations.
And aren’t a bunch of them just selfish opportunists leeching off the work of others?
Even worse are the US Republicans that go "I'll move to NZ" as if they have some absolute right to turn up here and enjoy living that results from policy that is pretty much everything that they have always worked against.
ACC is just plain wrong here. There's nothing in the Act that requires instruments to be used in order for an injury to be regarded as a treatment injury. It's ACC hunting for ways to shaft the claimant yet again.
Sepuloni is being weak here. As minister she has more power than what people are led to believe. In this case she just needs to tell ACC to pull its head in.
A major problem, amongst many, with ACC is that they're assumed to have more power than they in fact have. ACC has become so arrogant in its drive to find ways of refusing cover and kicking people off compensation that it now actively challenges cases in the courts where someone's appealed a decision based on legislation the government has introduced for a specific purpose. In other words, ACC sees no problem setting out to (mis)use the judicial process to thwart clear legislative intent.
Sepuloni needs to start looking at the real problems at ACC instead of believing what those nasty pricks at ACC head office so deceivingly tell her is the case. ACC operates in a very dark place. It's a great opportunity for Sepuloni to create a lasting legacy by successfully taking them on. The only problem is that I don't think she's got the guts or the smarts to do it. A pity.
NZ – one wonders just where our systems of control went – now it seems anything goes.
A woman was crashed into by a Lime Scooter in 2019. The Court has to decide whether it is a vehicle! You get injured first, and then that prompts someone who has authority to decide whether it is safe, should be used etc.
Christensen credited the two scarves she had been wearing to combat the cold with saving her life.
McIntyre has been on trial before Judge Christopher Field, who had to consider whether a Lime Scooter was a vehicle under the Land Transport Act. Because Christensen had one foot on the bus, he also had to consider whether she was a passenger or a pedestrian…
McIntyre was sentenced to pay $4000 reparations to her.
How long can the perp string the payments out and what happens if nothing is paid? Do our Courts serve the little person? Well as Flanders and Swann chirruped, it all makes work for the working man [Judge] to do; virtually making law on the hoof, said in the kindest way of course.
Future Proofed: KiwiRail needs to become an all-electrically-powered, broad-gauged, and comprehensively re-equipped state-owned enterprise with state-of-the-art locomotives and rolling-stock. An infrastructure project of massive proportions and prodigious expense is required. But, when it is completed, New Zealand will have a sustainable, twenty-first century transportation network, capable of carrying both passengers ...
Back in December, the government purchased Ihumatāo. Officially the purchase was for a housing project, but whether any houses actually get built (and who will own them) is subject to negotiation. And now, the Auditor-General has ruled the purchase unlawful: The deal struck by the government and Fletcher Building ...
Speculation about the National Party’s leadership has died down, after a fortnight of rumours and overt positioning by supposed challengers to Judith Collins. She lives on as leader for a bit longer, and Christopher Luxon and Simon Bridges have been put in their place. National now desperately needs to focus ...
The government is planning to reform the health system. But in the leadup, they've issued new guidance for DHB members, gagging them from criticising the government: A new code of conduct banning health board members from making “political comment” may have been timed to dull criticism of imminent changes ...
Susan St John & Terry Baucher The bright line test has been extended to ten years. Tax deductibility for the cost of a mortgage for landlords is to be removed. These steps are a start, but there is more to be done. In Susan and Terry, we have two advocates ...
As New Zealand and Australia celebrated its close ties with the opening of the Trans-Tasman Covid-19 bubble, Foreign Minister Nanaia Mahuta today was looking a little further north. Shortly after those first flights had taken off, reminding us all of the world beyond our shores, Mahuta gave just her second ...
Recently I was told I needed to go to the Youtube channel of Dr Sam BaileyA and watch one of her videosB. So I did. This particular video is called The Truth About Virus Isolation, and yes it’s on Youtube, and no I’m not linking directly because I refuse to ...
This is a re-post from Yale Climate Connections by Peter Sinclair This edition of Yale Climate Connections’ “This Is Not Cool” video explores the “disinformation ecosystem” in and beyond the issue of global climate change. “How did we get here?” independent videographer Peter Sinclair asks rhetorically at the start of the ...
Once upon a time, the left fought for the universal right to freedom of speech. Today, many self-proclaimed progressives cheer on the censorship of their political opponents. But it’s not just right-wingers who suffer from cancel culture. The left itself is often the primary victim. Dan Kovalik is a labour lawyer, peace ...
For Our Own Good? Police officers knocking on New Zealanders’ doors on account of what they might think, or what they have said, is more likely to make the rest of us think we are living in Nazi Germany – not drawing lessons from it. The disharmony such heavy-handed state ...
by Don Franks Details of proposed new hate speech laws have been revealed in a December Cabinet paper obtained by Newsroom. The paper, seeking to “strengthen the protections against hate speech”, would extend existing provisions against incitement and hate speech. It would also move hate speech offences from the Human Rights Act to ...
Listing of articles linked to on the Skeptical Science Facebook Page during the past week: Sun, Apr 11, 2021 through Sat, Apr 17, 2021 Not having had a chance to garner much attention by the time last week's review was published, the last article in that batch - First-Ever Observations From ...
Every year in April, the trees start changing colour, the clocks go back an hour, and the national greenhouse gas figures are released and promptly forgotten. They take fifteen months to prepare, so by the time they come out it’s very easy for commentators to point out that they are ...
While checking my spam folder (before yeeting the contents permanently) I noticed that I’d been sent a bunch of email ‘newsletters’ from the group “Voices for Freedom.” Out of interest I opened one, just in case the contents were worth a post or two – & indeed they were. The ...
Humans are hard-wired to classify, categorise and compare, or in other words, to taxonomize. We may be born tabula rasa but quickly are taught that the world is divided into types of things, subtypes of those and assorted other categories. The operative term is “taught” rather than “realise.” Taxonomies are ...
The Labour Government received plaudits this week for its historic announcement that it will ban the live export of animals by sea. It’s said to be a world first. The decision comes after years of pressure, which increased after last year’s tragedy when the ship Gulf Livestock 1 left New ...
As one does on a Friday evening, I yesterday made a point of heading along to the Dunedin Public Library’s event, Mystery in the Library. This was a panel of local crime-fiction writers, and a follow-up to a similar one in April 2019 (no prizes for guessing why ...
Now is about the time that the Government is getting its Budget Strategy togetherIn the week before the budget – the 2021 one is to be delivered on Thursday 20 May – there is a strange ritual in which all the commentariat and lobbyists (who are not necessarily distinct from ...
Climate Change Minister James Shaw has admitted that the government is not doing enough on climate change: Appearing on Breakfast alongside Greenpeace director and former Green Party leader Russel Norman, the current Greens co-leader was asked: “Are you as Government living up to promise of delivery implicit in those ...
We can all agree that a free press (and free media more generally) are important factors in a well-functioning democracy. But I am beginning to wonder if they provide us with an unalloyed benefit. I am an avid consumer of daily news – whether delivered by the press or by ...
Yes They Can - So Why Don't They? In matters relating to child poverty, homelessness, mental health, climate change and, of course, Covid-19, the answers are right in front of the Government's collective nose - often in the form of reports it has specifically commissioned. Why can’t Jacinda and her ...
Richard Edwards, Janet Hoek, Anaru Waa, George Thomson, Nick Wilson (author details*) We congratulate the NZ Government on its proposed Action Plan for the Smokefree Aotearoa 2025 goal. Here we examine the evidence for three key ideas outlined in the plan: permitting tobacco products to be sold in only ...
Punished, But Not Prevented: Though bitterly contested by those firmly convinced that the Christchurch Mosque Shootings represent something more than the crime of a Lone Wolf terrorist, the Royal Commission’s finding that no state agency could have prevented Brenton Tarrant from carrying out his deadly intent – except by chance ...
The Government has announced it intends making sex self-identification possible this year, as a priority. That would mean anyone could change the sex documented on their birth certificate by a simple declaration that they “identify” as the opposite sex. Speak Up For Women have launched a campaign encouraging New Zealanders ...
The travel bubble with Australia has not brought room for others to come into the MIQ system from overseas. Instead, spaces are being decommissioned. Why? The system is leaky. The government cannot afford to let riskier people into those spaces, because the system can’t handle them. My column in Insights ...
A Second Term Labour-led Government in New Zealand,a new Biden-led Administration in the US, a continuance of the Johnson Government in the UK: different approaches to major issues, same global problems – and discontent rising. Some warranted, some unwarranted, but as each emerges from the Covid pandemic, what ...
I will update this post as new information comes to handWhat has happened? Recently the vaccine safety watch dogs in Europe noted reports of unusual types of blood clots in people vaccinated with the AstraZeneca (AZ) COVID-19 vaccine. This prompted investigations across many countries to ascertain what, why, and ...
Alex Ford, University of Portsmouth and Gary Hutchison, Edinburgh Napier UniversityWithin just a few generations, human sperm counts may decline to levels below those considered adequate for fertility. That’s the alarming claim made in epidemiologist Shanna Swan’s new book, “Countdown”, which assembles a raft of evidence to show that ...
Just like last year, this year's General Assembly of the European Geosciences Union (EGU) will happen virtually instead of in person in Vienna. Contrary to last year, the organizers decided early on to hold their conference online and planned for it accordingly (quite a difference to last year's scramble where they switched ...
Time for a strange rant. A very strange rant. But bear with me, because this is serious business. A True Story, by Lucian of Samosata is not Science-Fiction. What on earth am I talking about? Well, it was one of those Wikipedia rabbit holes. I was reading ...
By Kate Evans for UndarkOne of New Zealand’s most spectacular fossil sites originated 23.2 million years ago. It was formed in a valley dotted with small volcanoes, when rising magma deep below the Earth’s surface came into contact with groundwater. Lava and water don’t mix — they explode. The ...
A Thorn In Their Side: As Chair of the Auckland Regional Council, Mike Lee made sure Auckland’s municipal resources remained in Aucklanders’ hands. Not surprisingly the neoliberal powers-that-be (in both their centre-left and centre-right incarnations) hated this last truly effective standard-bearer for democratic-socialist values and policies.MIKE LEE is the closest ...
It’s always something of a shock to come across a page run by a health-focused business that contains substantial misinformation. This one left me gobsmacked, given the sheer number of statements that are demonstrably untrue. And while a fair bit of the content is prefaced by the statement that it’s ...
Previously (9 February) I wrote about how business consultants Ernst & Young were used to do a hatchet job on the former senior management team at Canterbury District Health Board (CDHB). While this hatchet job was planned in 2019 its gestation was much longer. Its underlying causes involved differences in ...
Flying beneath the radar of guilt Fight or Flight: How Advertising for Air Travel Triggers Moral Disengagement(open access) by Stubenvoll & Neureiter not only takes an interesting approach to decomposing the effects of airline travel advertisements but also helps us to understand the general psychological landscape of our often conflicted ...
Yesterday I got told to “do some research” &, by extension, to think critically. The biologist in me cringed a little when I read it (and not because of the advice about doing research). Biology teachers I know suggested that perhaps everyone should take the NCEA standard that ...
Lis Ku, De Montfort University Since the onset of the pandemic, everyone from newspaper columnists to Twitter users has advanced the now idea that extroverts and introverts are handling the crisis differently. Many claim that introverts adapt to social distancing and isolation better than extroverts, with some even suggesting that ...
A friend of mine pointed me in the direction of this blog post by New Zealand’s “Plan B” group. While initially this group opposed the government’s use of lockdowns to manage covid19 outbreaks in this country, they seem to have since moved on to opposing the rollout of vaccines against ...
Twenty years after it invaded, the US is finally leaving Afghanistan. What's surprising is that it took them so long - its been clear for over a decade that their presence there was pointless and just pissing people off. But imperial pride leads to exactly this sort of stupidity. Their ...
The government has announced that it will ban the export of livestock by sea. Huzzah! A vile, cruel and unconscionable trade will be ended! But there's a catch: the ban won't kick in until 2023, giving farmers two ful years to continue to profit from extreme animal cruelty. But why ...
Today is unexpectedly a Member's Day - the Business Committee granted it early in the year, to make up for time list to government business. First up is a two-hour debate on the budget policy statement, with questions to Ministers, replacing the general debate. Then its the second reading of ...
. . Two stories which appeared almost side-by-side on RNZ’s website. Parent, Miranda Cross, was quoted as saying; “I think the expectations are that we can at least send our kids to school where they will receive an education.” An American parent would probably demand; “I think the expectations are ...
Time for reviewing something a bit different. Move over Tolkien adaptations, hello Japanese splatter movie. Specifically, a certain 2009 movie called Vampire Girl vs. Frankenstein Girl. I watched this one a few days ago with some acquaintances, never having seen it before, and not being familiar with the manga ...
This is a re-post from Yale Climate Connections by Jeff Masters, PhD An above-average Atlantic hurricane season is likely in 2021, the Colorado State University (CSU) hurricane forecasting team says in its latest seasonal forecast issued April 8. Led by Dr. Phil Klotzbach, with coauthors Dr. Michael Bell and Jhordanne Jones, the CSU ...
How seriously does the Māori Party take issues of corruption and the untoward influence of big money in politics? Not very, based on how it’s handling a political finance scandal in which three large donations were kept hidden from the public. The party is currently making excuses, and largely failing ...
The annual inventory report [PDF] of New Zealand's greenhouse gas emissions has been released, showing a significant increase in emissions: (Note that this is UNFCCC accounting, not the weird fudged figures the Climate Change Commission is using). Emissions increased by almost 2 million tons in 2019, from 80.6 MT ...
The melody from the classic movie Wizard of Oz echoes as Jacinta Ruru explains what inspired her to attend university, and her ambition to help create a more just society in Aotearoa. Jacinta, who affiliates to Raukawa and Ngāti Ranginui, specialises in the research areas of indigenous peoples and the law. ...
Stuff reports that National is refusing to back the Climate Change Commission's recommendations, which is apparently a Bad Thing: The National Party says it can’t support the Climate Change Commission’s draft plan to cut New Zealand’s greenhouse gas emissions unless changes are made. If National maintains this position when ...
Driven, accountable, unafraid to test limits and connected to the communities she serves are traits that come to mind when thinking about Dr Anne-Marie Jackson. (Ngāti Whātua, Ngāpuhi, Ngāti Kahu o Whangaroa, Ngāti Wai) She specialises in Māori physical education and health research disciplines while incorporating tikanga Māori and Te ...
This is my first post for a while. I have been a bit overwhelmed by other work in the last several weeks, with teaching and other commitments, and the blog has sadly suffered. But I’m still here. This morning, while sitting in a car in the permanent traffic jam through ...
Predatory Morality: Is geopolitical consultant, Paul Buchanan, right? Does the rest of the world truly monitor New Zealand’s miniscule contribution to the international arms trade so closely? Are foreign chancelleries truly so insensitive to their own governments’ complicity in the world’s horrors that they expect all other sovereign states to ...
Anna Källén, Stockholm University and Daniel Strand, Uppsala University A middle-aged white man raises his sword to the skies and roars to the gods. The results of his genetic ancestry test have just arrived in his suburban mailbox. His eyes fill with tears as he learns that he is “0.012% ...
March 2021 The housing crisis right now in New Zealand is one of our biggest contributors to income and wealth inequality. “With the explosive increase in sales and prices, those with houses have their income and/or wealth rapidly increasing, and those who are not on the property ladder are falling ...
Samoans went to the polls on Friday, and delivered a stinging blow to Prime Minister Tuilaepa Aiono Sailele Malielegaoi one-party state. Pre-election Malielegaoi's Human Rights Protection Party had controlled 44 of 49 seats in Parliament, while using restrictive standing orders to prevent there from even being a recognised opposition in ...
Prof Nick Wilson, Dr Jennifer Summers, Prof Michael BakerIn this blog we briefly consider a new Report from a European think tank that aims to identify an optimal COVID-19 response strategy. It considers mortality data, GDP impacts, and mobility data and suggests that COVID-19 elimination appears to be superior ...
Something I missed on Friday: the Māori Party has been referred to police over failure to disclose donations over $30,000. Looking at the updated return of large donations, this is about $320,000 donated to them by three donors - John Tamihere, the National Urban Māori Authority, and Aotearoa Te Kahu ...
Stormy Seas: Will Jacinda Ardern's Labour Government stand behind the revolutionary proposals contained in He Puapua – the 20-year plan devised by a government appointed working group to realise the UN Declaration on the Rights of Indigenous Peoples in Aotearoa/New Zealand?“GETTING AHEAD of the story” is one of the most ...
We have not been fans of the Climate Change Commission’s draft report. New Zealand has an Emissions Trading Scheme with a binding cap, and a declining path for net emissions in the covered sector. Measures taken within the covered sector cannot reduce net emissions. NZU not purchased by one sector get ...
For several decades under Labour and National-led governments New Zealand has claimed to have an independent (and sometimes autonomous) foreign policy. This foreign policy independence is said to be gained by having a “principled but pragmatic” approach to international relations: principled when possible, pragmatic when necessary. More recently NZ foreign ...
This video produced in Seattle looks at the gender identity curriculum used in schools in the US. A thin veneer of pseudoscience is being used to indoctrinate children with an ideology based on scientific and medical inaccuracies. ...
For once, I have written my submission on a bill with enough time to spare to both enocurage any of you who wants to make a submission to do so as well, and to give you time to spot the typos in mine.Louisa Wall's Harmful Digital Communications (Unauthorised Posting of Intimate ...
A friend found a concerning FB post (see below – this is a public post & so I have not redacted the name) & – as you do – immediately queried it with Southern Cross Life & Health Insurance as well as sending the screenshot to me¹. We both read ...
Judith Collins’ National Party leadership is under more scrutiny, with increased talk in the media of her being replaced by brand new MP Christopher Luxon. For many commentators it’s just a question of “when” rather than “if” Collins is replaced. While others ponder whether Luxon really has what it takes ...
I tēnei tau i Waitangi, I whakahua ake te Tira o Te Mātāwaka o te Pātī Kākāriki i tā rātau aronga matua, ki te waihanga I tētahi Manatū Hauora Māori, mā Māori te kawe, mā Māori ngā whakahaere. Ko tā te tira; Kua rongohia ngā karanga a ngā Tangata Whenua, ...
During Waitangi this year the Green Party’s Te Mātāwaka caucus announced their priority for an independent Māori Health Authority. We have heard the call from Tangata Whenua wanting any authority to be independent, and properly resourced. ...
The Greens welcome $6.6 million from the Government’s $455 million programme to increase access to mental health and addiction services for our Pasifika communities in Auckland and Wellington. ...
The Green Party is putting a Member’s Bill into the ballot today which will be a significant step towards overhauling the Social Security Act by embedding a tikanga Māori framework into the welfare system. ...
The Green Party have reaffirmed their strong commitment to the union movement in Aotearoa New Zealand by renewing a Memorandum of Understanding (MoU) with E Tū. ...
Soon, more kids in Aotearoa will have access to the in-school mental health support that has boosted the resilience of tamariki and whānau in Canterbury. ...
The Green Party supports the open letter released today by a cross-sector coalition calling for the Government to treat all drug use as a health issue, to repeal and replace the Misuse of Drugs Act 1975. ...
Small businesses are not only the heart of our economy – they’re also the heart of our communities. They provide important goods and services, as well as great employment opportunities. They know and love their locals. And after a tough year, they need our support! ...
Green Party spokesperson for Pacific Peoples Teanau Tuiono MP, supports the demand from Pasifika communities fighting for climate action as their homelands are more at risk in the Pacific region. ...
The Green Party supports the six demands for climate action put forward by School Strike for Climate NZ, who are striking across the country today. ...
The Ministry of Justice Māori victimisation report, released today, reinforces what we already know about the impact of systemic racism in Aotearoa and that urgent action is needed. ...
Ricardo Menéndez March’s Members Bill to ensure that disabled New Zealanders do not face discrimination for having a disability assist dog was today pulled from the biscuit tin to be debated in Parliament. ...
More than one million people will be better off from today, thanks to our Government’s changes to the minimum wage, main benefits and superannuation. ...
On Wednesday morning, Minister of Health Andrew Little and Associate Minister of Health (Māori) Peeni Henare are announcing major health reforms. You can watch the announcement live here from 8am Wednesday. ...
New research into the probability of an Alpine Fault rupture reinforces the importance of taking action to plan and prepare for earthquakes, Acting Minister for Emergency Management Kris Faafoi says. Research published by Dr Jamie Howarth of Te Herenga Waka - Victoria University of Wellington today, shows there is a ...
Foreign Minister Nanaia Mahuta and Defence Minister Peeni Henare today announced that New Zealand is deploying a Royal New Zealand Air Force P-3K2 Orion maritime patrol aircraft in support of United Nations Security Council (UNSC) sanctions on North Korea. The Resolutions, adopted unanimously by the UNSC between 2006 and 2017, ...
The Transmission Gully Interim Review has found serious flaws at the planning stage of the project, undermining the successful completion of the four-lane motor north of Wellington Infrastructure Minister Grant Robertson and Transport Minister Michael Wood said. Grant Robertson said the review found the public-private partnership (PPP) established under the ...
Foreign Minister Nanaia Mahuta announced today that Australian Foreign Minister Hon Marise Payne will visit Aotearoa New Zealand for the first face-to-face Foreign Ministers’ Consulations since the COVID-19 pandemic began. “Australia is New Zealand’s closest and most important international partner. I’m very pleased to be able to welcome Hon Marise ...
Hundreds more families who were separated by the border closure will be reunited under new border exceptions announced today, Immigration Minister Kris Faafoi said. “The Government closed the border to everyone but New Zealand citizens and residents, in order to keep COVID-19 out, keep our economy open and keep New ...
Hon Nanaia Mahuta, Foreign Minister 8.30am, 19 April 2021 [CHECK AGAINST DELIVERY] Speech to the NZCC Korihi Pō, Korihi Ao E rongo e turia no Matahau Nō Tū te winiwini, Nō Tū te wanawana Tū Hikitia rā, Tū Hapainga mai Ki te Whai Ao, Ki te Ao Mārama Tihei Mauri ...
The Government is supporting a new project with all-wool New Zealand carpet company, Bremworth, which has its sights on developing more sustainable all-wool carpets and rugs, Agriculture Minister Damien O’Connor announced. The Ministry for Primary Industries is contributing $1.9 million towards Bremworth’s $4.9 million sustainability project through its Sustainable Food ...
New Zealand is providing further support to Timor-Leste following severe flooding and the recent surge in COVID-19 cases, Foreign Affairs Minister Nanaia Mahuta announced today. “Our thoughts are with the people of Timor-Leste who have been impacted by the severe flooding and landslides at a time when the country is ...
A ceremony has been held today in Gisborne where the unclaimed medals of 28 (Māori) Battalion C Company soldiers were presented to their families. After the Second World War, returning service personnel needed to apply for their medals and then they would be posted out to them. While most medals ...
New Zealand has today added its voice to the international condemnation of the malicious compromise and exploitation of the SolarWinds Orion platform. The Minister Responsible for the Government Communications Security Bureau, Andrew Little, says that New Zealand's international partners have analysed the compromise of the SolarWinds Orion platform and attributed ...
An expert consenting panel has approved the Queenstown Arterials Project, which will significantly improve transport links and reduce congestion for locals and visitors in the tourism hotspot. Environment Minister David Parker welcomed the approval for the project that will construct, operate and maintain a new urban road around Queenstown’s town ...
Economic and Regional Development Minister Stuart Nash says a landmark deal has been agreed with Amazon for The Lord of the Rings TV series, currently being filmed in New Zealand. Mr Nash says the Memorandum of Understanding (MoU) secures multi-year economic and tourism benefits to New Zealand, outside the screen ...
The Government welcomes the findings from a rapid review into the health system response to lead contamination in Waikouaiti’s drinking water supply. Sample results from the town’s drinking-water supply showed intermittent spikes in lead levels above the maximum acceptable value. The source of the contamination is still under investigation by ...
Transport Minister Michael Wood today marked the start of construction on the New Zealand Upgrade Programme’s Papakura to Drury South project on Auckland’s Southern Motorway, which will create hundreds of jobs and support Auckland’s economic recovery. The SH1 Papakura to Drury South project will give more transport choices by providing ...
CHECK AGAINST DELIVERY E ngā mana, e ngā reo, e ngā karanga maha o te wa, tēnā koutou, tēna koutou, tēna tātou katoa. Ki ngā mana whenua, ko Ngāi Tahu, ko Waitaha, ko Kāti Māmoe anō nei aku mihi ki a koutou. Nōku te hōnore kia haere mai ki te ...
Transport Minister Michael Wood today marked the completion of upgrades to State Highway 20B which will give Aucklanders quick electric bus trips to and from the airport. The State Highway 20B Early Improvements project has added new lanes in each direction between Pukaki Creek Bridge and SH20 for buses and ...
The Government is putting in place a review of the work being done on animal welfare and safety in the greyhound racing industry, Grant Robertson announced today. “While Greyhound Racing NZ has reported some progress in implementing the recommendations of the Hansen Report, recent incidents show the industry still has ...
The infringement fee for using a mobile phone while driving will increase from $80 to $150 from 30 April 2021 to encourage safer driving, Transport Minister Michael Wood announced today. Michael Wood said too many people are still picking up the phone while driving. “Police issued over 40,000 infringement notices ...
Pacific people in New Zealand will be better supported with new mental health and addiction services rolling out across the Auckland and Wellington regions, says Aupito William Sio. “One size does not fit all when it comes to supporting the mental wellbeing of our Pacific peoples. We need a by ...
New measures are being proposed to accelerate progress towards becoming a smokefree nation by 2025, Associate Minister of Health Dr Ayesha Verrall announced. “Smoking or exposure to second-hand smoke kills around 12 people a day in New Zealand. Recent data tells us New Zealand’s smoking rates continue to decrease, but ...
More children will be able to access mental wellbeing support with the Government expansion of Mana Ake services to five new District Health Board areas, Health Minister Andrew Little says. The Health Minister made the announcement while visiting Homai School in Counties Manukau alongside Prime Minister Jacinda Ardern and Associate ...
The Government’s COVID-19 response has meant a record number of people moved off a Benefit and into employment in the March Quarter, with 32,880 moving into work in the first three months of 2021. “More people moved into work last quarter than any time since the Ministry of Social Development ...
A stocktake undertaken by France and New Zealand shows significant global progress under the Christchurch Call towards its goal to eliminate terrorist and violent extremist content online. The findings of the report released today reinforce the importance of a multi-stakeholder approach, with countries, companies and civil society working together to ...
Racing Minister Grant Robertson has announced he is appointing Elizabeth Dawson (Liz) as the Chair of the interim TAB NZ Board. Liz Dawson is an existing Board Director of the interim TAB NZ Board and Chair of the TAB NZ Board Selection Panel and will continue in her role as ...
The Government has announced that the export of livestock by sea will cease following a transition period of up to two years, said Agriculture Minister Damien O’Connor. “At the heart of our decision is upholding New Zealand’s reputation for high standards of animal welfare. We must stay ahead of the ...
WORKSHOP ON LETHAL AUTONOMOUS WEAPONS SYSTEMS Wednesday 14 April 2021 MINISTER FOR DISARMAMENT AND ARMS CONTROL OPENING REMARKS Good morning, I am so pleased to be able to join you for part of this workshop, which I’m confident will help us along the path to developing New Zealand’s national policy on ...
For the first time, all 18 prisons in New Zealand will be invited to participate in an inter-prison kapa haka competition, Corrections Minister Kelvin Davis announced today. The 2021 Hōkai Rangi Whakataetae Kapa Haka will see groups prepare and perform kapa haka for experienced judges who visit each prison and ...
The Government has introduced the Counter-Terrorism Legislation Bill, designed to boost New Zealand's ability to respond to a wider range of terrorist activities. The Bill strengthens New Zealand’s counter-terrorism legislation and ensures that the right legislative tools are available to intervene early and prevent harm. “This is the Government’s first ...
Coal boiler replacements at a further ten schools, saving an estimated 7,000 tonnes of carbon dioxide over the next ten years Fossil fuel boiler replacements at Southern Institute of Technology and Taranaki DHB, saving nearly 14,000 tonnes of carbon dioxide over the next ten years Projects to achieve a total ...
Attorney-General David Parker today announced the appointment of Cassie Nicholson as Chief Parliamentary Counsel for a term of five years. The Chief Parliamentary Counsel is the principal advisor and Chief Executive of the Parliamentary Counsel Office (PCO). She is responsible for ensuring PCO, which drafts most of New Zealand’s legislation, provides ...
Every part of Government will need to take urgent action to bring down emissions, the Minister for Climate Change, James Shaw said today in response to the recent rise in New Zealand’s greenhouse emissions. The latest annual inventory of New Zealand’s greenhouse gas emissions shows that both gross and net ...
Commerce and Consumer Affairs Minister David Clark says Aotearoa New Zealand has become the first country in the world to introduce a law that requires the financial sector to disclose the impacts of climate change on their business and explain how they will manage climate-related risks and opportunities. The Financial ...
Exceptional employment practices in the primary industries have been celebrated at the Good Employer Awards, held this evening at Parliament. “Tonight’s awards provided the opportunity to celebrate and thank those employers in the food and fibres sector who have gone beyond business-as-usual in creating productive, safe, supportive, and healthy work ...
Applications are now invited from all councils for a slice of government funding aimed at improving tourism infrastructure, especially in areas under pressure given the size of their rating bases. Tourism Minister Stuart Nash has already signalled that five South Island regions will be given priority to reflect that jobs ...
Tēnā koutou e ngā maata waka Tenā koutou te hau kāinga ngā iwi o Te Whanganui ā TaraTēnā koutou i runga i te kaupapa o te Rā. No reira, tēnā koutou, tēnā koutou, tēnā tatou katoa. It is a pleasure to be here tonight. Thank you Graeme (Peters, ENA Chief ...
The Construction Skills Action Plan has delivered early on its overall target of supporting an additional 4,000 people into construction-related education and employment, says Minister for Building and Construction Poto Williams. Since the Plan was launched in 2018, more than 9,300 people have taken up education or employment opportunities in ...
An innovative new Youth Justice residence designed in partnership with Māori will provide prevention, healing, and rehabilitation services for both young people and their whānau, Children’s Minister Kelvin Davis announced today. Whakatakapokai is located in South Auckland and will provide care and support for up to 15 rangatahi remanded or ...
Prime Minister Jacinda Ardern today expressed New Zealand’s sorrow at the death of His Royal Highness The Prince Philip, Duke of Edinburgh. “Our thoughts are with Her Majesty The Queen at this profoundly sad time. On behalf of the New Zealand people and the Government, I would like to express ...
We, the Home Affairs, Interior, Security and Immigration Ministers of Australia, Canada, New Zealand, the United Kingdom and the United States of America (the ‘Five Countries’) met via video conference on 7/8 April 2021, just over a year after the outbreak of the COVID-19 global pandemic. Guided by our shared ...
Source: The Conversation (Au and NZ) – By Amanda Porter, Senior Fellow (Indigenous Programs), The University of Melbourne Cultural warning: This article contains names and images of deceased Aboriginal and Torres Strait Islander people. This article also contains links to graphic footage of police violence. This month marks 30 years ...
Opinion - Speculation about National's leadership has died down, writes Bryce Edwards: Judith Collins lives on as leader, but the party desperately needs to rebuild. ...
Source: The Conversation (Au and NZ) – By Terri Seddon, Professor of Education, La Trobe University Federal Education Minister Alan Tudge has launched a six-month review into teacher education. The aim is to return Australian students to the top of international rankings in reading, maths and science by 2030. In ...
Source: The Conversation (Au and NZ) – By Michelle Staff, PhD Candidate, Australian National University “Suffragette white” is proving to be a popular fashion choice for women who want to make a statement. Most recently, former Australia Post CEO Christine Holgate donned a white jacket in her appearance before a ...
Source: The Conversation (Au and NZ) – By Natasha Yates, Assistant Professor, General Practice, Bond University Although the country’s vaccine rollout is not progressing entirely as planned, thousands of Australians continue to receive their COVID vaccines every week. As a general practitioner administering the AstraZeneca vaccine, I find it strange ...
In meeting virtually with President Joe Biden and 39 other world leaders, PM Jacinda Ardern should press home the need to confront the current global economic model based on limitless growth. ‘It has failed us,’ says Wise Response chair, Prof. Liz ...
Source: The Conversation (Au and NZ) – By Gail Iles, Senior Lecturer in Physics, RMIT University Yesterday at 9pm Australian Eastern standard time, the Ingenuity helicopter — which landed on Mars with the Perseverance rover in February — took off from the Martian surface. More importantly, it hovered for about ...
Source: The Conversation (Au and NZ) – By Ann Kayis-Kumar, Associate Professor, UNSW When Debbie (not her real name) lost her main client and was left without a reliable income, the sole trader sold her home and adjoining investment unit to pay off her debts and ensure she had the ...
Source: The Conversation (Au and NZ) – By Gail Iles, Senior Lecturer in Physics, RMIT University Yesterday at 9pm Australian Eastern standard time, the Ingenuity helicopter — which landed on Mars with the Perseverance rover in February — took off from the Martian surface. More importantly, it hovered for about ...
Source: The Conversation (Au and NZ) – By Frédérik Saltré, Research Fellow in Ecology for the ARC Centre of Excellence for Australian Biodiversity and Heritage, Flinders University CC BY-NDClimate Explained is a collaboration between The Conversation, Stuff and the New Zealand Science Media Centre to answer your questions about ...
Source: The Conversation (Au and NZ) – By Peter Martin, Visiting Fellow, Crawford School of Public Policy, Australian National University Of all the weak targets ever adopted by Australian governments, one of the weakest has to have been an unemployment rate “comfortably below six per cent” in last year’s budget. ...
The Transmission Gully interim review has found serious flaws at the planning stage of the 27km highway, “undermining” the successful completion of the four-lane motorway north of Wellington, according to Infrastructure Minister Grant Robertson and Transport Minister Michael Wood. Grant Robertson said the review found the public-private partnership (PPP) established ...
With less than 1% of Auckland Transport’s senior leaders of Pacific descent, Justin Latif asks what the council-controlled organisation is doing to turn that around.“It’s just a battle to be heard.”Kim* is of Pacific descent, has held a variety of roles across local government, and is very familiar with the ...
The Council of Trade Unions has today formally written to the Minister for Foreign Affairs, Hon. Nanaia Mahuta and the Minister for Trade, Hon. Damien O’Connor calling on them to take action to halt ratifying the Regional Comprehensive Economic Partnership ...
Two important omissions in the ministry's process for the sale and purchase of the land at Ihumātao means the deal is "unlawful" until it is validated by Parliament. ...
Last month, David Seymour MP and Nicola Willis MP wrote separately to our Office about the Government’s purchase of land at Te Puke Tāpapatanga a Hape (commonly referred to as Ihumātao). They had concerns about: $29.9 million of the appropriation ...
Kate Winslet descends on television once again to deliver a career-best performance in a cop drama that doesn’t quite deserve it, writes Sam Brooks.Let’s be up front about this: Kate Winslet is one of the greatest actors of her generation, and the reason you’re interested in Mare of Easttown at ...
Analysis by Bryce Edwards Political scientist, Dr Bryce Edwards. Speculation about the National Party’s leadership has died down, after a fortnight of rumours and overt positioning by supposed challengers to Judith Collins. She lives on as leader for a bit longer, and Christopher Luxon and Simon Bridges have been put ...
Responding To The Auditor-General’s Finding That The Government's $30 Million Ihumātao Deal Was Unlawful, New Zealand Taxpayers’ Union Spokesman Louis Houlbrooke Says:“Today we learn that the Government didn’t just capitulate to illegal occupiers ...
Foreign Affairs Minister Nanaia Mahuta has had a busy two days. Hard on the heels of echoing the title of a book edited by academic writer Manying Ip to headline an important policy speech, she was announcing the visit here this week of Australian Foreign Minister Marise Payne for ministerial ...
Source: The Conversation (Au and NZ) – By Amanda Porter, Senior Fellow (Indigenous Programs), The University of Melbourne Cultural warning: This article contains names and images of deceased Aboriginal and Torres Strait Islander people. This article also contains links to graphic footage of police violence. This month marks 30 years ...
"Hamilton City Council cannot justify contributing $10 million to an inland lagoon resort while it’s increasing rates by 8.9 percent," says New Zealand Taxpayers’ Union spokesman Louis Houlbrooke. “If the proposal makes good business ...
It’s embroidery, but not as you know it. Lema Shamamba’s intricate stitchwork features machine guns, severed limbs, people crying – and the logos of the global tech giants she holds responsible.CW: Violence, sexual assaultLema Shamamba fled the Democratic Republic of the Congo when armed militia started killing people in her ...
Covid-19 exacerbated existing levels of material and emotional hardship for people on low core benefit rates, a new study has found. Dr Louise Humpage, a sociologist at the University of Auckland who conducted the study in collaboration with Child ...
With consummate timing, Foreign Minister Nanaia Mahuta has stirred up another controversy days ahead of the first visit of her Australian counterpart, Marise Payne. New Zealand, she says, doesn’t want to use Five Eyes as the first point of contact on a range of issues that existed outside of its ...
Australia Week: The first day of the travel bubble was big news, so Tara Ward stayed home and watched it happen on the television. To mark the opening of the trans-Tasman bubble, The Spinoff is casting an eye across the ditch all week – read our Australia Week content here.The trans-Tasman ...
This year will be the 50th anniversary of the Melbourne Cup of greyhound racing. The Silver Collar is described by the Auckland Greyhound Racing Club as a ‘gruelling’ and ‘stamina-sapping affair,’ raced over an ‘extreme’ 779 meters, which is ...
Source: The Conversation (Au and NZ) – By Jamie Howarth, Senior lecturer, Te Herenga Waka — Victoria University of Wellington The Alpine Fault marks the boundary between the Pacific and Australian plates in the South Island of New Zealand.Author provided The chances of New Zealand’s Alpine Fault rupturing in ...
Last week in Wellington, a man was convicted of rape for removing his condom during sex without consent. For Frankie Bennett, who was subjected to a similar assault, it’s validating – but now we must stop using euphemisms to describe sex crimes. In 2018 I was “stealthed”; a man I was ...
Tuesday, 20 April 2021: Greenpeace has today launched a new petition calling on the New Zealand Government to ban seabed mining from the waters of Aotearoa. The petition calls on Prime Minister Jacinda Ardern to give New Zealand another world ...
Editor’s Note: Here below is a list of the main issues currently under discussion in New Zealand and links to media coverage. Click here to subscribe to Bryce Edwards’ Political Roundup and New Zealand Politics Daily. Today’s contentNZ-China relations: Mahuta Speech Tim Watkin (Pundit): Taniwha New Zealand shows its foreign policy ...
Kiwi Seafarers working internationally have been forgotten by the New Zealand government, their request for support keeps being ignored and their status as essential workers continues to be overlooked. Many Kiwi Seafarers are stuck outside of New Zealand ...
A small number of people have developed blood clots after receiving two types of the Covid-19 vaccine. Mirjam Guesgen explains what’s going on and how different countries are responding.What’s this I hear about blood clots and Covid-19 vaccines?Some people who received the AstraZeneca and Janssen vaccines are developing severe, in ...
Source: The Conversation (Au and NZ) – By Chris Reid, DECRA Research Fellow, Macquarie University Army ants (Eciton burchellii) are known for their vast foraging raids. Hundreds of thousands of ants flow like a river from their nest site, scouring the jungle as they prey on anything unable to escape ...
Source: The Conversation (Au and NZ) – By Lisa Kewley, Director, ARC Centre for Excellence in All-Sky Astrophysics in 3D, Australian National University It will take until at least 2080 before women make up just one-third of Australia’s professional astronomers, unless there is a significant boost to how we nurture ...
Source: The Conversation (Au and NZ) – By Mark Kenny, Professor, Australian Studies Institute, Australian National University Forget last week’s healthy 5.6% unemployment rate. It might be “comfortably below” the Coalition’s 6% threshold for commencing “fiscal repair” (another term for unpopular spending cuts), but the government is under unforeseen political ...
Source: The Conversation (Au and NZ) – By Nathan Bartlett, Associate Professor, School of Biomedical Sciences and Pharmacy, University of Newcastle Last week, the chief executive of Pfizer said anyone who receives its COVID-19 vaccine will probably need to have a third dose within 6-12 months after being fully immunised, ...
Source: The Conversation (Au and NZ) – By Gregory Moore, Doctor of Botany, The University of Melbourne Native deciduous trees are rare in Australia, which means many of the red, yellow and brown leaves we associate with autumn come from introduced species, such as maples, oaks and elms. One native ...
Source: The Conversation (Au and NZ) – By Ilan Noy, Chair in the Economics of Disasters and Climate Change, Te Herenga Waka — Victoria University of Wellington What have we lost because of the pandemic? According to our calculations, a lot — and many of the worst hit countries and ...
Source: The Conversation (Au and NZ) – By Ben Phillips, Associate Professor, Centre for Social Research and Methods, Director, Centre for Economic Policy Research (CEPR), Australian National University The good news from new research conducted by the Australian National University for Social Ventures Australia and the Brotherhood of St Laurence ...
Source: The Conversation (Au and NZ) – By Jen Webb, Dean, Graduate Research, University of Canberra In this series we pay tribute to the art we wish could visit — and hope to see once travel restrictions are lifted. She’s called Maman, and she emerged into the world in 1999, ...
Welcome to The Spinoff’s live updates for April 20, bringing you the latest news updated throughout the day. Get in touch at stewart@thespinoff.co.nz8.00am: Concerns euthanasia patients may take unapproved drugs, suffer prolonged deathAn investigation into how prepared New Zealand is to introduce euthanasia, following last year’s referendum, has uncovered concerns ...
The global movement to take leading academics out of lecture theatres and into pubs to present their latest research is returning to Auckland. Tonight, 20 University of Auckland lecturers will host talks in 10 local bars. The topics range from the search for alien life to the risks of vaping ...
Good morning and welcome to The Bulletin. In today’s edition: Mahuta moves away from Five Eyes in major speech, new research shows raised risk of Alpine fault quake, and trans-Tasman bubble opens on emotional day.Foreign minister Nanaia Mahuta has sought to continue a ‘best of both worlds’ approach to the ...
Business & Investing: The opening of the Tasman for tourists pushes Auckland Airport shares up, with Air NZ also benefiting; Plus Tilt Renewables wins bigger Mercury-PowAR deal ...
New Zealand is focusing purely on its own adaptations challenges - 'Impacts in My Backyard' - rather than the brutal climate impacts already being felt elsewhere. It's a gaping hole in our strategy, writes Dr Luke Harrington. We Kiwis are more concerned than ever about the significant and growing challenges of a ...
If history is any indication, we would expect the Covid pandemic to increase suicide rates. Dr Dennis Wesselbaum explains how that could be the case. New Zealand is the ninth happiest country in the world as reported in the 2021 World Happiness Report. Yet at the same time, New Zealand has the ...
From Wellington to Glasgow and home again, netball coach Gail Parata is helming the national champion Pulse side, and can call on her old room-mate for help. Dame Noeline Taurua and Gail Parata have a long relationship, once built on deception. Now among the best netball coaches in the world, the ...
Pilots and cabin crew can spend 20 days a month in isolation in order to link New Zealand to the rest of the world - but the hardest part is not feeling welcome when they come home. Matthew Scott reports. Touchdown in Hong Kong. In different times, pilots and ...
Graeme Lay on the problem of downsizing for the elderly Books, books, books: novels. short stories, poetry, anthologies, biographies, histories ... For many elderly people books are a treasured part of their households. Shelves and shelves of them; they're an integral part of our past. We remember when we bought ...
New research shows that the risk of the big one hitting the South Island’s spine is far higher than previously thought, write Ursula Cochran and lead researcher Jamie Howarth.Calculating the chance of an earthquake on a particular fault currently relies on the long geological earthquake record, which is both notoriously ...
A new TVNZ drama tells the story of a fictitious gang trying to go straight. Despite being funded as part of a major initiative to get Māori stories to screen, Vegas reinforces some centuries-old stereotypes, writes Leonie Hayden. Episode one of the new drama Vegas aired last night on TVNZ. ...
Australia Week: Nothing tests our mateship with Australia like the disputed delicacies both countries claim as their own. In the interest of diplomatic relations, Alice Neville sets the record straight.To mark the opening of the trans-Tasman bubble, The Spinoff is casting an eye across the ditch all week – read ...
An old-style Marxist's withering takedown on contemporary leftists - even likening today's left liberals with neoliberals - has lessons for our economic and political debate, writes Oliver Hartwich ...
A carefully worded speech on NZ-China relations from Nanaia Mahuta nevertheless carried some telling notes about how the Government plans to navigate the Great Power divide, Sam Sachdeva writes Nanaia Mahuta may lack the bombast of Winston Peters, but her greater willingness to stick to the MFAT-approved script makes it ...
Trans-Tasman quarantine-free flights are back on - as New Zealand's vaccination rollout's been described as shambolic, and Australia's as a failure. On the week that our travel bubble opens up with Australia, both sides of the Tasman have been criticised for falling behind in their vaccine roll outs. New ...
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra As Scott Morrison gradually pivots his climate policy towards embracing a target of net zero emissions by 2050, he is seeking to distinguish the government from “inner city” types and political opponents who’ve been marching ...
Source: The Conversation (Au and NZ) – By Michelle Grattan, Professorial Fellow, University of Canberra Peter Dutton has begun his tenure as defence minister by delivering a very public slap to his most senior military adviser, chief of the Australian Defence Force Angus Campbell. Dutton’s overriding of Campbell’s initial command ...
Source: The Conversation (Au and NZ) – By Tony Blakely, Professor of Epidemiology, Population Interventions Unit, Centre for Epidemiology and Biostatistics, Melbourne School of Population and Global Health, The University of Melbourne Coinciding with the Trans-Tasman travel bubble starting today, over the past week there have been murmurings Australia could ...
Source: The Conversation (Au and NZ) – By George Wilson, Honorary Professor, Australian National University The US Congress is considering a proposed law to ban the import and sale of kangaroo parts. Backed by a campaign called Kangaroos Are Not Shoes, the bill is aimed at stopping Nike, Adidas and ...
By Praneeta Prakash in Suva Fiji Prime Minister Voreqe Bainimarama says a breach in protocol in relation to the 53-year-old woman now testing positive of covid-19 should not have happened. The woman who was working as a maid in a border quarantine facility developed symptoms last Thursday, but continued working ...
The Pacific Newsroom Vanuatu’s capital island of Efate has gone into covid-19 lockdown for three days after a body was found on a beach near Port Vila. The body, which tested positive for covid, was that of a Filipino crewman from the British-flagged liquified petroleum gas carrier Inge Kosan, a ...
While the trans-Tasman bubble today is “a significant day” for New Zealanders, any moves to open the borders to other countries will need to be be based on hard evidence, the prime minister says. After months of discussions, the trans-Tasman bubble is officially open. The prime ministers of New Zealand ...
Asia Pacific Report newsdesk The local West Papua action group in Dunedin has met Taieri MP Ingrid Leary and raised human rights and militarisation issues that members believe the New Zealand government should be pursuing with Indonesia. Leary has a strong track record on Pacific human rights issues having worked ...
Source: The Conversation (Au and NZ) – By Katharine Kemp, Senior Lecturer, Faculty of Law, UNSW, and Academic Lead, UNSW Grand Challenge on Trust, UNSW The Federal Court has found Google misled some users about personal location data collected through Android devices for two years, from January 2017 to December ...
For landlords. If your business is too highly geared it is your fault, not the customers. You are using your customers to buy the house for you. You wouldn't get loans for a normal business, if the outgoings were so close to the costs. It is only the banks expectations that you will, in fact, make a large profit in the end from capital gains, that they base their lending on.
That so many can borrow beyond the rentals earnings, as a going concern, is a consequence of steeply rising prices. Especially if they already have other houses as collateral. And a prime cause of the whole merry go round.
The same thing has happened with farms, where banks will lend on the land, at levels way in excess of any possible earnings from a going concern farm, in the expectations of the land making huge gains on sale.
No one who simply wants a home, or to farm can keep up.
Exactly. Landlords, whether one or multiple property owners, are hardly the entrepreneurial geniuses ‘housing the nation’ that their spokespeople try to portray.
If interest rates rise, Accomodation Supplements are canned or reduced, or a CGT instituted, it will be tears at bedtime and w-w-wailing for bailouts.
After so many years, untaxed or lightly taxed profits from property are a no-go area for the main Parliamentary parties apart from Māori and Greens perhaps.
But the answer is there–supply–start a Govt. Dept., fully publicly owned, to plonk modular houses and apartments from one end of the country to other until everyone is housed satisfactorily. And institute rent control right now to send “a signal” while plans are actioned.
"hardly the entrepreneurial geniuses housing the nation"……….lol. Couldn't of put it better. As I commented in my time being a landlord it was money for jam……..easiest "work" I have every done!
easiest "work" I have every done!
That's because as a person who has only 'worked' to earn a living you don't really grasp what it is to put a price on 'risk'. And the very basic bit of landlording you did didn't involve much risk and with maybe only a handful of tenants involved you never struck a bad one.
But ask yourself this – why do you think the banks won't lend to just anyone and everyone who wants a home? If they would do that then there would be no need for anyone to ever rent.
Red Logix. Often appreciate your point of view, so don't want to get into a battle with you. I am sorry if the new housing regulations are proving stressful for you, really I am.
I have run my own business since 2006. So I have an idea about risk. Before that I was a paid employee, and have done a wide range of jobs.
Most of us live very conservative, safe lives, we avoid real risk like the plague. We default to the idea of labour being the only 'real' measure of money (I still have this hard-wired into me) – but a few among us escape this trap.
One day I got a 40 min helicopter ride sitting next to Phillipe Pascal, the man who had raised U$7.5b for this project. This is real risk, and getting to success was incredibly hard work for everyone involved. I worked most of 2019 on this site, it was an amazing experience and I watched this with some pride.
It's transformed the economy of a whole country. Of course the anti-capitalists here will line up to take pot-shots, and to be fair as with anything human there are flaws and failings that can be rightly criticised. But how many among us here at The Standard – can say that we've achieved something like this?
Well what were the flaws and failings that can be rightly criticised for this project?
Is that all that's important to you? Something to attack? It's odd how you've expressed no interest in how it's transformed the lives of the local communities. People getting out of poverty and all that.
But yes there was considerable labour conflict on site for a period. On my first rotation I arrived completely unaware of a major riot that had occurred in another location (it's a huge site, it takes an hour to drive from the coast where I was working to the mine entrance). There were multiple unions active on site, but one of them was determined to gain leverage and literally shut the place down for weeks. Gangs of men in trucks patrolled around the site, throwing rocks, confronting anyone they met, stopping supplies, cutting communications, wrecking offices and camps. It was really very violent and dangerous and I was totally cut off from the outside world along with a small team of Australians (just the six of us) in one of the smaller camps on the coast for four weeks.
In the end it was us, a couple of managers, some cooks and a dozen heavily armed security guards, hunkered down keeping a very low profile. We got through it OK, and we actually got a lot of work done without anyone else breathing down our neck. But it was more of an adventure than advertised.
The union did have something of a valid complaint in that while there were many thousands of skilled ex-pat workers onsite who were there legitimately and authorised by the govt labour dept, there was also a large Chinese labour contractor who was blatantly breaking the rules and undercutting the local labour. It's not necessarily and easy or quick thing to solve, sure you can ditch the problematic contractor, but that leaves you with a big gap in resource. Eventually the govt and First Quantum found a way around it all – but as with anything in Latin America it took way longer than you or I would think reasonable.
So there is something for you to be outraged over.
'Something of a valid complaint' sounds a tad grudging.
It is you, it seems, who is outraged that I should ask for an explanation of something you outlined.
But thanks anyway.
Interesting
RL – I'm not sure that there has been a lot of risk in residential property investment over the last two decades? As you yourself said yesterday, "And the simple answer is that for several generations now the only reliable investment in this country has been property."
I absolutely don't blame people or think they are evil for acting in a financially rational manner – we all want our families to eat. I might however raise an eyebrow (Judith style) when people try to glamourise that rationality as some sort of virtue – such as providing homes for people, or wealth creation, or risk taking.
In terms of the linked video, although some business enterprises do involve remarkable people with vision and a bravery in the face of risk, it's not really the norm. Most businesses are risk averse. Innovation and new product development is hard – it is much easier to turn a profit by cutting labour costs, outsourcing to low-wage economies, monopoly/cartel behaviour, ticket-clipping, externalising costs (environmental, social) onto the taxpayer, etc..
Disclaimer: In an earlier life before the venture capitalists decided that two Indians and half a German could do my job for less money – I had the financial resources to invest in residential property. I decided not to – partly because although it was low-risk it was also a lot of hassle, plus I had vague thoughts that maybe it wasn't particularly socially responsible. I claim no virtue in this decision, it is just how things work out.
For most landlords with just the one unit (usually an ex-family home) – it's not very risky at all. But then the returns are pretty modest as well. It's only when you start leveraging up a stack of 10 or more that it becomes substantially more difficult. But relatively few get there, Pareto’s law applies to landlording too.
it is much easier to turn a profit by cutting labour costs, outsourcing to low-wage economies, monopoly/cartel behaviour, ticket-clipping, externalising costs (environmental, social) onto the taxpayer, etc..
Each one of those is worth several posts and many threads, but in general yes there are many commercial activities that fall somewhere on a very broad spectrum between pure labour and pure entrepreneur. And I agree that not all of them have equal social merit.
And yes there are plenty of unpleasant, ego-driven, status-seeking people in the business world doing things we find ethically deplorable. The transformation of the human heart lies in our future. But for the time being at least capitalism gives these people something to do other than actual war, rape and pillage.
Unlike the promoters of marxist utopia's, I don't defend capitalism because I think it's any kind of ideal. It's not even very ideological, it's really just a handful of economic tools and ideas that have evolved into something incredibly complex and pervasive. And as such I expect it will continue to evolve into new forms as our social horizons and moral vision expand.
Tiger Mountain gave the bit of that statement "housing the nation" as a direct quote coming from landlord's spokespeople.
Who are these spokespeople? Where and when did they say it?
Consider the howls if the RBNZ takes ‘interest only ‘ finance off the table….
Yeah, that would be something to see. We should have followed immediately after Australia removed them.
In Australia the percentage of IO loans for residential was quite high..from memory 30 or 40%. Not sure how many are IO in NZ but probably similar as it’s been encouraged.
Im stirring….I dont think they will (immediately) especially without waiting to see how the package plays out, but the option is there.
“Nearly 40% of bank lending to residential property investors is on interest-only arrangements – RBNZ tight-lipped on whether this is too high, but raises concerns over leverage”
https://www.interest.co.nz/news/109356/nearly-40-bank-lending-residential-property-investors-are-interest-only-arrangements
Who cares about people struggling to pay the mortgage; they’re ‘creaming it’ \sarc
https://www.stuff.co.nz/business/124699937/covid19-mortgage-holiday-scheme-ends-with-3700-mortgages-still-in-repayment-deferral
Just goes to show how flawed the whole model is eh?
Yeah, everybody else was prepared for the pandemic and could see it coming as soon as that bat fled that cave except for those who find themselves financially struggling. Clearly, they made bad personal choices and should suffer the consequences.
Is this comment too much ‘lefty resentment’ or too ‘RWNJ’? What do you think?
I think that covid has simply highlighted that which was already there….and that is neither left nor right wing.
https://www.newsroom.co.nz/nzs-k-shaped-covid-19-recovery
https://thespinoff.co.nz/society/the-side-eye/25-03-2021/the-side-eyes-two-new-zealands-the-k-shape/
This isn’t a binary issue, and continuing to frame it as such is unhelpful. Personally I feel for anyone who is struggling to pay their bills regardless of what they are, one would argue these people are on the lower leg of the ‘K recovery’ like the working poor and renters etc.
We are all closer to becoming destitute than becoming a billionaire.
Yup – now ask yourself, how do we want to fix this?
With more people riding the up elevator or more on the down one?
Redistribution.
I am sure redistribution in the form of Accomodation Supplement is OK.
Just as we can only tolerate a certain amount of inequality, there is also probably a limit on how much redistribution is tolerable as well.
In my view your answer really amounts to taking everyone off the up and putting them on the down. Very marxist.
A much better trick would be to find a way to make all elevators go up.
In my view your answer really amounts to taking everyone off the up and putting them on the down. Very marxist.
You have constantly demonstrated you don't understand Marxism so your opinion on the ideology that motivated what I said is not appreciated.
A much better trick would be to find a way to make all elevators go up.
Ah yes, I too try to imagine as many as six impossible things before breakfast.
Apologies to Alice.
How many riding the 'up elevator' really want all elevators to go up?
It would be a great 'trick' to pull off – in the meantime we can beef up redistribution so that the 'down escalator' travels more slowly.
Really don't understand how a bit more redistribution could put everyone on the down escalator – can you talk me through it? Lets say the Government instituted a wealth tax or some other policy that resulted in the transfer of 2% of your wealth to those on the 'down escalator.' How might that transfer put you on the ‘down escalator‘?
I'm curious as to why you think the financial security of everyone on the up escalator is so marginal – seems to me that the opposite is true. I write as someone on the 'up escalator.' Sure, my position is towards the bottom of that escalator, but it feels secure to me – a 2% wealth tax would barely affect me.
How many riding the 'up elevator' really want all elevators to go up?
Have you ever met anyone who thought poverty was a good thing?
People vary a lot in what they think the causes of it are, and what the best solutions may be – but hardly anyone is for poverty.
RL, please can you talk/walk me through how ‘a bit more‘ redistribution could put everyone on the ‘down escalator‘? Note that I’m definitely not seeking some sort of Marxist utopia – that wouldn’t suit me at all. But a bit more redistribution sure could go a long way to slowing that ‘down escalator‘, and there but for the grace of God…
RL, I've never met anyone who personally sought out poverty, which is a pity really because I'm sure their worldview would be interesting.
And, while I've never met anyone who told me that they thought poverty was/is a good thing, I believe that some on the 'up escalator' have become overly reliant on relative poverty – for example, those that can't cope when the tap of cheap labour is turned off.
Historically the only place where poverty could operate as a virtue was within the very specific settings of some form of monastic lifestyle. In particular it only works where sex and having family is prohibited.
Makes historical sense.
Probably my misinterpretation, in which case apologies.
Well I have been in the fortunate position to have met some one like that. He sleeps "rough" here in Thames and I get to meet him on a regular basis. I've often discussed with him the possibility of moving in to better accommodation than behind his favourite building. But his chosen site is where he prefers. He is his own person and while he would like to have someplace he could have a shower on occasions and a place to heat up some food, the lifestyle he chooses is his own, and at the moment suits him. Although tangata whenua, he claims no river and no mountain, he claims no one. He is a very spiritual person, preferring his own company.
Of the 20 or so rough sleepers in our town I have written on their behalf to the 4 ministers and associate ministers responsible for housing and homeless persons, suggesting that they consider working with a local ngos towards the establishment of a Hub where these people could have shelter, a shower, meet, and share food. Funding would be directed to the employment of staff for the supervision of the centre. I have not received any response.
A decent answer is well beyond the scope of a short comment. But in brief the answer I would offer is that we already do a great deal of redistribution (especially around education, health and security) to ensure everyone gets a reasonable equal opportunity.
But it's much harder and far more problematic to ensure equal outcomes. Some element of competitive innovation or 'doing better' has to be built in otherwise most people simply stop bothering. The Soviet Union was the great example — "they pretend to pay us, we pretend to work".
Perhaps we could make more progress if we worried less about the material measures of wealth inequality, and started to ask more questions around what defines true wealth and what are the best uses it can be put to? And in this I keep coming back to the concept of a social and economic life based on ideas of duty and service.
Sorry – that does fall short of answering your question.
@Macro (1:52 pm) – thanks for that. Your vision of a 'homeless(ness) Hub' is very valuable and positive. I hope that you continue your lobbying and are (eventually) successful.
@Macro
My brother lives in Thames now, and we know the place well. It's likely you'll bump into him one day.
Your rough sleeper is essentially what we used to call a 'hermit'. Single men who have stepped outside of society have always existed in our history. It's just that our climate and DoC don't really let them live on mountain tops these days.
And respect for you willingness to reach out to him and advocate for those in a similar position. It's not an easy task helping people and I sincerely look up to those who are good at it.
@RL (2:02 pm) – that's helpful. Tbh I reckon many of those on the 'down escalator' couldn't give a toss about ensuring "equal outcomes" – they just need a bit more help. As to how to fund it, well, there's no getting around the fact that NZ is (on the whole) a wealthy country.
And I think your observation that some seem overly concerned about material wealth is on the money – focusing on the inequality of material wealth is so punitive.
Wow my 'creaming it" comment has really struck a nerve. Maybe I should be more careful with my language.
The people I object to are the ones who own property, rent it out, will push the rents up no matter the impact on the tenants, because they have over leveraged and scream and howl that its not fair, not owning that most likely they are in a far better position than their tenants, the consequences for which could mean eviction, trying to find another place to live in an over priced under supplied market, may forgo back necessities to keep a roof over their head by paying the rent increase, have no hope of ever buying their own digs. Their situation is always in the fore front of my mind. As was young first home buyers being out bid by investors, some of who turn out to be unhappy because now they will have to hold on to the property longer and gradually no longer be able to claim interest as a tax deduction.
But yes I will be more careful with my language in future. I am not here to inflame things
Checked the Australian figure. Three years ago 25% of all residential property loans were interest only so not as bad as I thought. Still that's a huge number.
Your 40% figure for Oz was correct.
"Interest-only home loans used to rival their principal and interest (P&I) repayment counterparts, accounting for around 40% of all outstanding mortgage balances in the mid-2010s. But that was before regulatory bodies introduced measures to slow down this form of lending. The Australian Prudential Regulation Authority (APRA) imposed a 30% restriction on the number of home loans issued by banks that could be interest-only in 2017."
https://www.savings.com.au/home-loans/interest-only-home-loans
As a mortgage underwriter in Australia, we are seeing a rise of interest only owner occupied loan applications, scraping through in terms of serviceability. LVR's ranging wildly, but not exceeding 80%.
This is quite eye opening coming back to underwriting from my secondment with the COVID19 hardship response team, as there was a push for borrowers who reached maximum assistance (6-10 months moratorium) to go interest only. I wouldn't really like to consider what % our portfolio is on IO repayments, treading water.
" I wouldn't really like to consider what % our portfolio is on IO repayments, treading water."
I wouldnt either….fortunately (or perhaps not) that sort of data is closely held.
Absolutely. Big non-believer in interest only repayments, would love to see their death.
Yup. We were never tempted to go interest only either. Only speculators or the very marginal go down that path. Long term investors want to get the mortgage paid off eventually and IO doesn't get you there.
For owner occupiers (not investors) is interest only still cheaper than rents? It gives people time to recover without losing a deposit or being subjected to the renting merry go around.
Yesterday I commented that landlords were creaming it and I got howls of protests about overgeneralizing and most landlords aren't like that and what do you think being a land lord is……a social service.
KJT you are spot on. If their business is too geared it is their fault/responsibility. They took a risk with an investment and it didn't work out…….maybe, they made a poor business decision.
The govt actually had to take very significant action on this. Just like they did with Covid.
I also commented that I was a landlord once when I had to move city and thought it possible I would move back home and wanted to hold onto my home. This was a few years back now. Being a landlord is money for jam. Its like a hobby really. You have a property manager, your accountant sets things up vey nicely for you. Occasionally you have to make decisions about ………actually I am struggling to think of what decisions I had to make. Oh thats right, if the tenants request things, which I was always happy to go along with as I had a small mortgage and I was happy to use the low rent I was charging to make improvements for them.
It would be interesting to know how many landlords are highly geared. If interest rates went back up to 5% or 6% if they could cope with that. Hopefully they have been smart enough to realise that the current interest rates are as low as they have ever been and at some point may increase and have budgeted for that. I do feel for any landlord that has recently purchased a rental and have only say 80% equity, as this will be a game changer for them now that the interest non deductibility is phased in. Like I say, the non deductibility is like them receiving an interest rate rise, so hopefully they have budgeted for the possible increase.
My guess is that many long-term 'buy and hold' landlords who have been in the business for more than say 15 yrs will have a total LVR under 60%. The reason why is that the price inflation we have been seeing means that any new property you purchase is going to be negative cash flow for many years, and there is a real limit to how often you can do that.
But what is also happening is that while interest rates are low for the moment, but at the same time other fixed costs like rates and insurance have increased dramatically. We have one unit where the latest insurance bill now consumes 22% of the rent.
Interestingly here in Australia one of the internal rules the banks are using to check the serviceability of new lending is to assess what would happen with an interest rate of 6.45%. So they understand that the current low rates are not likely to last forever. Indeed as the current generation of boomers retire over the next few years, and transition from the greatest investors of all time, to the greatest consumers of capital there is a real argument that rates could easily go over 10% again.
NZ banks vary as it is seen as a commercial decision around risk tolerance, but are usually in the range of 5-7%.
That 5-7% aligns with our experience here in Australia.
Where interest rates will go in future depends a lot on how long govts around the world can keep printing money to keep them where they are now. If they fail in this, then all bets are off, I don't think anyone knows how that will play out.
We have very little debt now. Our one property that still has a mortgage has that mortgage paid for by the rent. Doesn't cover anything else.
I know two larger professional landowners with LVR's hovering uncomfortably around 50%.
One is selling one property to bring that down.
The other is holding fire at the moment.
That so many can borrow beyond the rentals earnings, as a going concern, is a consequence of steeply rising prices.
80% of landlords never go beyond the one unit – because it's not as easy as you portray. If you're negatively geared (as we were for a long period – at 9% interest rates that was inevitable even when we never went over 60% LVR), the bank isn't going to lend more to you just because you queue up and smile sweetly.
Banks don't look at just the increased equity, they look at your serviceability and past a certain age your exit strategy as well. The idea that you can borrow without limit is just wrong. The relatively few people who do manage to get to more than 10 units have negotiated a tricky balance of cash flow, costs, lots of leg work – plus a bit of luck – to get there. Most people don't want to do that because the risk goes up substantially and it becomes close to a full time job to manage. No-one is portraying landlords as 'entrepreneurial geniuses' – in normal times it was always considered a relatively modest strategy that took decades to pay off. People don't want to play casino with their life savings.
Well as I've said elsewhere, established owners with little or no borrowing will be very happy – this govt has just eliminated virtually any new competition in the rental market.
One of the reasons banks can lend so much on houses is die to the rental market being propped by government subsidies,
"It is only the banks expectations that you will, in fact, make a large profit in the end from capital gains, that they base their lending on."
Isn't more the ease of claiming the security for the loan than the expected capital gain? That's of course buoyed by record capital gains that're occurring at the moment, but are banks really lending against what they think a future sale price might reach?
Its both…the banks want the income stream and are happy to extend the credit in a rising market because should you default they have an asset of increased value that they can dispose (or preferably releverage) with a reduced fear of loss…..and the fees theyll add.
I thought that this personal anecdote would fit into the housing discussion. He is the real person that all the commenters here have in their minds.
https://www.stuff.co.nz/national/300049683/new-zealands-twotiered-social-housing-system–a-massive-inequity
That would appear a strange anomaly….and the fact his unit still has quake damage is appalling….though I wonder if the units are earmarked to be replaced so upgrades are avoided.
I don't know the answer to this, but are you saying that banks are lending against a projected value of the asset, rather than its actual value at the time of the lending?
Im saying their desire to extend credit is enhanced in a rising market….and gave the reason why.
Taking out a mortgage only pushes up the prices of whatever product you are selling. The ideal situation is where an investor is sufficiently cashed up that he can invest without borrowing. Alternatively, he might be able to get an interest free loan. Long live Social Credit!
Someone dial 111, Judith Collins is involved in another train wreck on the radio.
From the thoroughly fake sounding surprise greeting (akin to real estate agent photos in the paper), to the assertions that rent controls never work anywhere, to the antagonistic tone taken when challenged on her assertions.
Can anyone be harmed by excessive schadenfreude? I may need medical attention.
Edit, A link should be up on RNZ site soon.
Here 'tis:
https://www.rnz.co.nz/national/programmes/morningreport/audio/2018789770/shane-reti-s-decision-not-to-get-vaccinated-with-government-his-to-explain-judith-collins
When it comes to Collins it can only be a wholesome schadenfreude.
“Behold,” he could have said, “the reality of global trade. Behold the tankers full of the oil that warms the climate and keeps the vile House of Saud in power. Behold the trillion tonnes of cheap consumer goods, from the factories of Asia to the landfills of Europe. Just look at it all. It cannot be sustainable. And how easily we could wean ourselves off it. Ladies and gentlemen, it is not too late.”
https://www.stuff.co.nz/opinion/300265195/the-bloke-who-blocked-the-suez-canal
Gotta love Joe Bennet
It's incredibly lazy for people like Bennett to write snarky pieces like this, in complete ignorance of how the world works. Virtually everything about his modern comfortable life has been enabled by just this 'global trade' that he sneers at. He just doesn't know it.
People like him would stand by cheering when the house burned down because they didn't like the decor in the upstairs bathroom.
Well I guess he got paid for churning out his silly bit of click-bait – which is about the sum total of it's merit.
I guess you didnt 'like' it then.
I suspect Mr Bennet knows pretty well what provides for his lifestyle and I also suspect he isnt a big consumer of frippery…sadly nuance is becoming in increasingly short supply as is humour.
There seems to be a cold war-ish Manichaean worldview, and the arguments are a false dilemma. No nuance allowed.
Indeed….grey is not bleak
"..It's incredibly lazy for people like Bennett to write snarky pieces like this, in complete ignorance of how the world works."
I offer this as a defence of Bennett:
https://www.goodreads.com/book/show/3322867-where-underpants-come-from
Well I'll give Bennett credit for having the curiosity and energy to ask the question and chase down some answers. How well he succeeded might be gauged by some of the review comments.
But the question is certainly worth asking – and the answer lies very much buried within CCP policy and their basic purpose for money. In the West we view money as a tool to enable economically worthwhile productivity, market pricing being a tool to manage this. The CCP uses money as a tool to maximise employment and maintain social stability, price being of relatively lesser importance – if any in the case of the underpants.
That's a very negative spin you've put on it. Could you maybe be more constructive?
How is it that NZ prisoners are not allowed access to the internet while Putin's most feared opposition incarcerated in the most punishing gulag Russia has , can operate an Instagram account ?
https://www.corrections.govt.nz/working_with_offenders/prison_sentences/being_in_prison/internet_and_mail
Ask Kim Hill to ask that question next she does a piece on this, or any news/current events show on RNZ for that matter, I am sure they will be only too willing to shift from the established narrative.
In case you hadn't heard, shocking, I know, but inmates across the world find ways to do shit they're not allowed to do.
/
https://www.tvnz.co.nz/one-news/new-zealand/exclusive-secret-gang-fight-club-at-mt-eden-prison-revealed-q01845
Last time I looked one didn't need an internet connection to run a fight club.
Smuggling smart phones in and out of boob doesn't require an internet connection either, genius.
/
Apparently not possible for Julian Assange however
British prisons must be run more stringently than Russian ones
And I'm trying to remember when any NZ prisoner ran a social media account and posted regularly, as Navalny does
You're the expert here Joe, let us know
He's in separates so it's hardly surprising he's unable to.
https://www.theguardian.com/society/2018/jul/09/tweeting-jailbirds-social-media-use-by-prisoners-triples
With meth deals and gangsta beats from inside, why not?
Because Navalny's supporters would never post anything on behalf of Navalny, right.
/
Quite a good wee clip…
Defending Glenn Greenwald and Critiquing the Post-Left
Over 21 min long; that’s not a “wee clip”. Why is it “quite good”, in your opinion?
If you didn't hear Judith Collins on RNZ morning report this morning I suggest you do. It was a complete train wreck.
You should to it because it was the sort of interview that triggers leadership challenges.
Yes thanks Sanctuary and Gsays…….started to listen but found it too excruiating. Who will be up to taking the poison challice?
She was doing a Winston Peters.
When Peters couldn't answer a question or didn't want to answer a question, he would turn it into a he said/she said argument so that the question was never answered. Only he was better at doing it than Judith.
Try listening to the interview with a renter's advocate Ashok Jacob a little later in the program.
https://www.rnz.co.nz/national/programmes/morningreport/audio/2018789782/tenants-advocacy-group-backs-rent-caps
His statements seemed to me to be at least as general as were those of Judith Collins. However not a single one was questioned in any way and no evidence was requested for any of them. And people still think that Radio NZ is "impartial"?
The renter advocate's statements may have been general alwyn but they were much clearer and far less equivocal than Judith Collins. I almost had the feeling she was being deliberately ambiguous for the sake of it.
Having said that, I agree with you that some RNZ radio hosts are not always impartial. There are one or two of them who enjoy arguing for the sake of it which doesn't achieve much imo.
Was he also lying?
Councils and council staff remind me of teachers – a large number of them aren't the sharpest knives in the drawer.
https://www.stuff.co.nz/national/politics/local-democracy-reporting/300264251/caravanners-fear-regional-bylaw-the-end-of-freedom-camping-as-we-know-it
I don't usually descend to personal abuse.
You really are a wanker aren't you.
Stephen D and others
Please when you address a particular commenter put the name or pseudo. I want to know what about and to whom you are talking, Some people certainly cry out to be called w…s and I want to see if you have picked the right one in my opinion.
There is a certain mindset that turns ugly when embiggened by secondhand authority.
You mean mine Stuart? It probably does need a wipe with white vinegar (that is the recommended Green cleansing method).
By no means – some people handle the powers of petty bureaucracy generously, others become martinets.
Freedom campers, once merely known as campers, are losing the local version of allemansrätten to a failure of local government imagination.
Not so keen on extending the generalization to teachers however – most do their best within the constraints of a system that gives them relatively little freedom of action.
Is it just me or do others feel like these calls for, in this case tech entrepreneurs, everyone to move to a new silicon valley (NZ) more than a bit arrogant and condescending? Have they not noticed that a lot of people live here already and that they may have a different view about others deciding to "invade" their country? Maybe we actually don't want them? It's not like Silicon Valley has made life wonderful for all the people who live or used to live in the area. Some studies have shown that incomers in places like Seattle and Portland have just pretty much displaced existing populations.
And aren’t a bunch of them just selfish opportunists leeching off the work of others?
Even worse are the US Republicans that go "I'll move to NZ" as if they have some absolute right to turn up here and enjoy living that results from policy that is pretty much everything that they have always worked against.
https://www.stuff.co.nz/business/124699041/nasa-chief-scientist-says-nz-should-become-a-worldwide-silicon-valley
https://www.stuff.co.nz/national/health/300266100/women-struggle-for-treatment-as-acc-changes-policy-on-perineal-tears
ACC is just plain wrong here. There's nothing in the Act that requires instruments to be used in order for an injury to be regarded as a treatment injury. It's ACC hunting for ways to shaft the claimant yet again.
Sepuloni is being weak here. As minister she has more power than what people are led to believe. In this case she just needs to tell ACC to pull its head in.
A major problem, amongst many, with ACC is that they're assumed to have more power than they in fact have. ACC has become so arrogant in its drive to find ways of refusing cover and kicking people off compensation that it now actively challenges cases in the courts where someone's appealed a decision based on legislation the government has introduced for a specific purpose. In other words, ACC sees no problem setting out to (mis)use the judicial process to thwart clear legislative intent.
Sepuloni needs to start looking at the real problems at ACC instead of believing what those nasty pricks at ACC head office so deceivingly tell her is the case. ACC operates in a very dark place. It's a great opportunity for Sepuloni to create a lasting legacy by successfully taking them on. The only problem is that I don't think she's got the guts or the smarts to do it. A pity.
What power does Sepuloni have to change ACC operational policy?
In cases where ACC gets the law so blatantly wrong she can tell them to sort their shit out.
I have mercifully limited history with ACCand I sure ain't defending them, I just haven't seen a responsible Minister step in like that – or rarely.
NZ – one wonders just where our systems of control went – now it seems anything goes.
A woman was crashed into by a Lime Scooter in 2019. The Court has to decide whether it is a vehicle! You get injured first, and then that prompts someone who has authority to decide whether it is safe, should be used etc.
https://www.rnz.co.nz/news/national/439566/man-found-guilty-of-careless-use-of-lime-scooter
The 65-year-old woman, Debra Christensen, received a concussion, facial cuts and bruises as well as bruises to her hip, chest-wall, cheek, chin and hand.
She bit through her tongue and could have lasting nerve damage.
Christensen credited the two scarves she had been wearing to combat the cold with saving her life.
McIntyre has been on trial before Judge Christopher Field, who had to consider whether a Lime Scooter was a vehicle under the Land Transport Act.
Because Christensen had one foot on the bus, he also had to consider whether she was a passenger or a pedestrian…
McIntyre was sentenced to pay $4000 reparations to her.
How long can the perp string the payments out and what happens if nothing is paid? Do our Courts serve the little person? Well as Flanders and Swann chirruped, it all makes work for the working man [Judge] to do; virtually making law on the hoof, said in the kindest way of course.
In an ideal world, the lawyers for both parties would be paid either out of or after reparations are paid.