web analytics

Padding pockets, not houses

Written By: - Date published: 12:45 pm, August 11th, 2009 - 45 comments
Categories: housing insulation - Tags: ,

Just a month into the Government’s housing insulation programme and John Key has had to launch an inquiry into rorting by contractors who are taking the subsidy but also increasing their prices, and so pocketing a good part of the subsidy themselves rather than passing it on to the consumer as intended. That’s a bad outcome because it doesn’t decrease the cost of insulation to homeowners as much as could be, and so fewer people are taking up the opportunity than otherwise might.

Why didn’t the Key Government see this coming? Basic economics tells you that without controls in place to prevent it any subsidy will be at least partially kept by the supplier – the tighter supply is (ie. the less elastic it is) the greater the portion of the subsidy the suppliers will keep.

daydream believerHere’s how it works. The higher price the higher supply (S) and lower demand (D).

Now, add a subsidy (thick green line). In dream world, all this subsidy is passed on to the consumer, so the price falls by the full amount of the subsidy (P->P1) and the suppliers supply the amount demanded by consumers at that price (Q->Q1).

In the real world, it’s different. A new supply curve (S1) can be plotted that is the amount of the subsidy below the original supply line. Where the new supply line intersects with D gives the new level of price and quantity – note, it’s not as low as the full subsidy and quantity is less than what would be demanded if the full subsidy was passed on.

That’s pretty basic stuff. It’s what happens if you just hand a wad of cash to suppliers and say ‘here, this is to pay for part of Jack and Jane’s insulation’ without any controls or oversight. It’s how markets work, why would the supplier pass on all the benefit to the consumer? They probably can’t afford to anyway because demand at the fully subsidised price would out-strip their ability to supply at that price plus subsidy, and they don’t need to because all suppliers are running full tilt – rather than being price takers, the suppliers have a lot of market power, they can charge higher prices if they choose, bringing down demand but pocketing more cash themselves.

The Key Government should have seen this coming and set up mechanisms to prevent it, such as the government doing the insulation itself with sub-contracting if need be as a monopolistic buyer. Again, this looks like more sloppy work from this government, with the result that what is meant to be assistance to make Kiwis’ homes warmer has become a gravy-train for business.

45 comments on “Padding pockets, not houses ”

  1. infused 1

    There is always going to be a few people that abuse it. Anything for a dig at the govt though eh?

    • Draco T Bastard 1.1

      Actually Infused, it’s a dig at private businesses rorting taxpayers – again.

      • Tigger 1.1.1

        I would have thought NACT would love this show of entrepreneurism – isn’t this just the free market at work? If you don’t like the prices, don’t shop there. Why an ‘investigation’? Why the need to put ‘controls’ in place? It goes against everything they stand for.

  2. vto 2

    You make a point mr marty, but it does make me laugh at the irony etc. I mean, what on earth do people expect? It has been shown time and time and time again over the years that govt interference creates anomolies and disturbances in pricing structures. This is the main cry of Act. And you have just shown that they are in fact right when it comes to exactly these situations.

    And then you advocate further interference to right the earlier interference.. hee hee, bound to fail.

    Govt interferes once and it doubles the complication, interferes twice and it quadruples, interfere three times and multiply it by nine.

    I truly do not understand the left’s blind allegiance to more govt.

    I’m not saying insulation is bad or anything else, just highlighting this minor but eternal truism. I do giggle …

    • Quoth the Raven 2.1

      I generally agree with what you’re saying vto, but don’t tar the left with the same social democrat brush.

    • r0b 2.2

      You do understand, don’t you vto, that the whole global economic crisis that is in progress right now, arose from the withdrawal of government regulation?

      Capitalism doesn’t work unless it is regulated by government. When governments relax regulation and capitalism eats itself, it needs rescuing by good old fashioned taxpayer funded socialist big government bailouts.

      For a local example on a small scale – look at leaky houses. Relax regulations, market forces screw up, leaky home owners turn to government to fix it.

      Capitalism doesn’t work unless it is regulated by government. (Even then it doesn’t work long term, as governments’ inability to deal with the inescapable boundaries of resource limitation and climate change are going to show us big time over the next few decades).

      • vto 2.2.1

        r0b, “the whole global economic crisis that is in progress right now, arose from the withdrawal of government regulation?”. Disagree – it is without doubt a part of the reason but it is simplistic in the extreme to place all liability there. Big topic for another day.

        I dont disagree re the necessity for a central organisation to oversee relationships within a society. It too is a truism. It is just the extent that it goes too. imo, most of the time too far.

        For the record, leaky homes arose not just from what you say but also other factors.

        See the problem seems to be the lack of quality intervention and regulation. Leaky home / building code intervention is a classic example. Poor quality govt intervention. It is a very very common trait and until govt can demonstrate that quality will be a result then it should err on the side of caution and avoid interference. Unfortunately it seems to do the opposite all the time and just crash on in knocking things over and causing all manner of destruction – a bit like that ad a while ago which showed a bull wandering thru a china shop. Reckon you could get a bull to roam thru a china shop without knocking things all over the place ? ? ?

        • Akldnut 2.2.1.1

          vto correct me if I’m wrong but aren’t you agreeing with rOb!
          lack of quality intervention and regulation = Relax regulations, market forces screw up

          • vto 2.2.1.1.1

            Not quite. What I suggest is that in circumstances where govt intervention is required (which requires very careful thought and consideration (is that possible in politics?)) then that intervention should only proceed if it can be demonstrably proved that it will be quality intervention. example – clearly the insulation intervention is poor quality.

            It does not follow that a lack of intervention equates to market madness.

            Anyway, the insulation example may be a brilliant example of market forces, if it was left alone from this point. Imagine – all these ‘rip-off’ installers gouging the system by seeing an opportunity to hike prices and gain more profit will directly lead to more people entering the insulation installation business which in turns drives competition and better prices.

        • Draco T Bastard 2.2.1.2

          You seem to come at it far too simplistically vto. You see regulations that aren’t 100% effective and call for their total removal instead of the logical, but far more complex and costly, step of making the regulations better. I think part of the problem is that western society has become far too precise as far as the laws go. People stick to the letter of the law and manage to breach the spirit of it.

          Laws, IMO, need to be general which will catch actions that aren’t supposed to be caught but that can be defined in court.

      • Quoth the Raven 2.2.2

        r0b – Weren’t you reading some free-market anti-capitalist work? Maybe it isn’t ringing true for you, but you ought to read more of it. You’re mixing your terminology I thought at least you’d come away with getting that right.

        • Bill 2.2.2.1

          Quoth.

          Markets encourage buyers and sellers to seek advantage, ie rip one another off. The better you are at it, the richer you become and the richer you become, the more power gravitates towards you. And the more power you have, the better positioned you are to take advantage of market dynamics to rip off your neighbour….who should not, under any circumstances be considered to be your neighbour, as opposed to your competitor.

          Free markets can never be considered as anti-capitalist. Capitalism might reasonably be seen as the institutionalising of the power that gravitated towards those who were either very adept at securing ‘an edge’ ; ripping people off or who used military might to take what they couldn’t secure by other means in a free market environment.

          Government intervention keeps the whole shabang rolling along and offers some protection to the more disadvantaged, the environment etc…until the corporates and bankers capture the state apparatus and then, well the trains will run on time I guess.

          Before that point, it might be said that governments of a social democratic persuasion are in the business of regulation; trying to encourage a hyena (the market) to roll on it’s back to have its belly rubbed.

        • r0b 2.2.2.2

          Yeah sorry QtR – you are quite correct I’m behind in my reading!

  3. Bright Red 3

    One month in and it’s a big enough problem that an inquiry has to be launched. That’s not normal, background-level abuse infused.

  4. tsmithfield 4

    The obvious way to sort the problem is to increase the supply side of the equation. That is, make more contractors qualified to offer the insulation subsidy.

    I agree with VTO though, it is somewhat amusing to see people from the left side of the spectrum complaining about the effects of government intervention. Talk about the pot calling the kettle black.

    • Daveo 4.1

      The way I read it, the complaint is that the Government’s actions were poorly conceived.

      This isn’t an argument about the principle of Government “intervention”, which is a highly ideologically loaded term in the first place.

    • Draco T Bastard 4.2

      And the supply side is going to be fixed with Pixie Dust right?

    • Bright Red 4.3

      ts. Your argument is like if I were to complain that the baby had been thrown out with the bathwater and you said ‘well, that’s what giving the baby a bath gets you’.

      It’s a question of making your policy so that you get to bath the baby then keep the baby but throw out the bathwater.

  5. darryl 5

    ACC, Insulation, DPB, Ministers housing subsidies, Ministers travel perks…. wherever you find a subsidy you will also find a rort.

  6. BLiP 6

    Classic National Inc – steal someone else’s idea, throw it to the wolves, and then feign shock horror when their business mates turn out to be greedy thieving bastards. Still, at least its keeping a couple more public servants employed – unless National Inc has contracted out the investigation?

    Bunch of numpties.

  7. TightyRighty 7

    Funny thing is, those same graphs can be used to show how beneficiaries, or bennies as the left like to call them, can exploit the system.

    • Ari 7.1

      What, by pocketing money they’re supposed to spend to stay alive?

      Yeah, sounds like a swell idea. *rolls eyes*

  8. Ari 8

    I can just imagine it now… “But we couldn’t POSSIBLY regulate a business subsidy! Regulations are bad on their own, but a regulated subsidy? That’s like scrubbing a slug!” 😉

  9. Zaphod Beeblebrox 9

    Maybe they could increase building apprenticeships and training courses for builders. Or is it a step to far for this government to think ten minutes ahead!

  10. bill brown 10

    “Well look, those Greens made us do it, and now look what a mess they’ve got us in”

  11. Tom M 11

    Marty, you’ve got your graphs a bit confused – you measure the subsidy differently in both (and incorrectly on the first one), which is why you get different results. The only way you’ll get a difference is if you adjust the elasticities – yours are the same on both graphs – all you’ve done is reduce the subsidy, which even you should admit isn’t going to affect its incidence.

    The real problem though is in your theoretical explanation. No microeconomist will ever tell you that the incidence of subsidy is determined by whether or not the subsidy is regulated, and they are right.

    The reason prices don’t go down all the way after a subsidy is simple – most businesses face upward sloping cost-curves, at least in the short run. So when they produce more (as is the goal of a subsidy), it costs them more per unit to produce their good. This is reflected in the price. So if you regulate to make them ‘pass on the subsidy’, you’ll just make them produce at a loss. That’s the standard supply and demand analysis, and it makes a great case for why we shouldn’t subsidise home insulation.

    • Bright Red 11.1

      The first graph is wrong on purpose… see it’s title?

      The second graph looks like this graph of the incidence of a subsidy http://hsc.csu.edu.au/economics/global_economy/tut10/image1.gif

      You’re failing to realise that the point was to make home insulation cheaper for people – increase consumer surplus without increasing producer surplus. Good policy design could have done that, a simple subsidy never could. That’s probably why the solution Marty presents isn’t regulation like, say, setting price controls on insulators. it’s:

      “The Key Government should have seen this coming and set up mechanisms to prevent it, such as the government doing the insulation itself with sub-contracting if need be as a monopolistic buyer. “

      • Tom M 11.1.1

        No, the first graph is identical to the second in all necessary features – he just gets the result he wants by measuring the amount subsidy incorrectly.

        If you have auxiliary goals, that’s fine. But that’s not what this post is about – it seems to be just complaining about how the price doesn’t drop by the same amount as the subsidy, as if that should be some sort of surprise, or is due to avarice on behalf of the insulation firms.

        If the producers are making monopoly profits, that’s a completely different argument. But even in perfect competition, the price would be unlikely to drop by the full magnitude of the subsidy.

        Of course if you want full incidence on the consumers and to maximise their utility, the best method is a cash handout… 😉

      • Matt Nolan 11.1.2

        I agree with Tom here. It is ridiculous to claim that an outcome is “bad” based on a counterfactual that can’t happen.

        Although Marty does state it can’t happen, he also stated:

        “fewer people are taking up the opportunity than otherwise might”

        In order to say that this is a bad thing. Now, when the counterfactual isn’t realistic this isn’t a fair claim.

  12. tsmithfield 12

    Tom, I think the scheme can work. As mentioned, the problem is at the supply end. There are a lot of insulation firms not in the scheme at the moment. If they could be brought on stream as well, then the laws of supply and demand will bring the pricing back down.

    I agree that a subsidy scheme in itself can be quite ineffective if the only goal is to make insulation cheaper for consumers. However, there are other gains to be had:

    1. Stimulation to the economy in a time of recession.
    2. Reduction of green house gasses.
    3. Less draw on our electricity network due to better insulation.

    Furthermore, even if there are price increases as a result of the increased demand, the consumer should still be better off pricewise because there should still be a net gain even allowing for increases in price.

  13. Marty G. Just for the record, the lines called S1 in your two diagrams are NOT supply curves. The lines S are the supply curves in both diagrams, both pre and post subsidy.

  14. lampie 14

    Marty G. Just for the record, the lines called S1 in your two diagrams are NOT supply curves. The lines S are the supply curves in both diagrams, both pre and post subsidy.

    actually he has that right. A subsidy pushes the supply curve out.

    No, the first graph is identical to the second in all necessary features he just gets the result he wants by measuring the amount subsidy incorrectly.

    Tom is right. the first graph shows just the desired outcome, i.e. the affect of the subsidy

    the subsidy in graph two should be from e down to where s1 meets q

    • “actually he has that right. A subsidy pushes the supply curve out.”

      No it doesn’t. There can be only one supply curve on the diagram, if there were two which one of them do you read the quantity supplied off, for a given price?

  15. lampie 15

    supply could be agured as well

  16. lampie 16

    No it doesn’t. There can be only one supply curve on the diagram, if there were two which one of them do you read the quantity supplied off, for a given price?

    s1 is the supply curve after subsidy. there is a shift in supply, in this case, an increase in supply due to the subsidy hence why i would argue about supply been inelastic.

  17. lampie 17

    which one of them do you read the quantity supplied off, for a given price?

    There is an increase in quantity demanded (Q1). The new price is P1, hence the affect of a subsidy

    the point of the article is that P is still basically the current price after subsidy has been given to the producer instead of P1.

    Toms explanation sounds reasonable

    “If the producers are making monopoly profits, that’s a completely different argument. But even in perfect competition, the price would be unlikely to drop by the full magnitude of the subsidy.”

    Basically you could say the same for the subsidy with doctors. Pe = $60, Govt. introduces $40 subsidy which increases quantity demanded for a $20 fee to the consumer. Doctors try to reduce this demand by charging $30, hence the producer (doctors) get actually $70 than the original $60.

  18. “The Key Government should have seen this coming and set up mechanisms to prevent it, such as the government doing the insulation itself with sub-contracting if need be as a monopolistic buyer”

    Two things here:

    1) The fact that the surplus is split between consumers and producers isn’t necessarily a bad thing – even in perfect competition the fact that the cost of insulating houses rises in the quantity is sufficient for this result to hold.

    2) If the government sub-contracts to a monopolistic buyer the pricing issue will be the same. If the government gave the money to consumers instead of producers the pricing issue would be the same. And finally, if the government decided to make the stuff itself I highly doubt they would do so more efficiently.

    I agree with you that the government complaining about the fact that some of the surplus accrued to firms is dumb. However, I don’t really agree that there are alternate structures that would have changed the allocation of the surplus – and if even if there was (like the government taking control of the industry) I don’t think they are preferable.

  19. SPC 19

    It costs $3 B over 3 years to give $1000 pa to those with Kiwi Saver accounts. This money is borrowed.

    The same $3B could be used to give every household a $1500 voucher. This voucher used for insulation, heat pumps, double glazing or otherwise cashed in a Kiwi Saver account (making them compulsory at 2% from the full-time employee and employer).

    The money would still be borrowed but within a year or so our housing stock would be upgraded (resulting in falling energy demand – reducing market rate power prices to business users). This faster installation would create more jobs and when we need them most, 2009 and 2010.

    Whereas the current scheme has waste and distortion (only some are authorised etc) and is over too long a time frame.

  20. SPC 20

    I am not buying into the opening argument or Matt Nolans (2) derived from it.

    Vouchers in the hands of consumers gives them power in the market – and they are either happy with deals now or they having the voucher in their hand can simply wait for a better deal. If they are not being restricted to only some suppliers, consumers can enable those businesses offering the best deals to grow their business.

    We already know what happened in solar water heating, so no one should be surprised by the problem that has arisen and it is not just supply and demand but a limited market (some are in the loop and some are not – consumers only access their saving via the business thus uncontrolled demand for the government largesse).

Links to post

Recent Comments

Recent Posts

  • Building back better
    It’s a three-week recess in Parliament – so, no bills are going through the House and no select committees are meeting. But the hard work of our ministers continues, and many of our MPs are back in their electorates, taking the opportunity to meet with local communities and businesses about ...
    6 days ago
  • Greens call for a Warrant of Fitness for rental homes
    The Green Party is launching a petition today calling on the Government’s Healthy Homes Standards to be backed up with a proper Warrant of Fitness (WoF) for rental homes. ...
    1 week ago
  • Securing our recovery: By the numbers
    Our plan to secure New Zealand’s recovery from COVID-19 is working, with the past three months seeing the second-highest number of people moved off a main benefit into work since records began. ...
    2 weeks ago
  • More Kiwis in work through recovery plan
    The latest statistics show the Government’s focus on jobs is working. The net number of people on a main benefit dropped by around 11,190 people during the past three months, with around 31,240 people moving off a benefit into work. ...
    2 weeks ago
  • Green Party appoints new Chief of Staff
    The Green Party has appointed a new Parliamentary Chief of Staff, Robin Campbell. ...
    2 weeks ago

  • Christchurch’s Youth Hub ‘set to go’ thanks to further Government funding
    Construction of New Zealand’s first, purpose-built centre for youth well-being is ready to get underway thanks to an extra $2.5 million of COVID-19 response funding, Housing Minister and Associate Minister of Finance, Megan Woods announced today.  “The Christchurch Youth Hub is about bringing together all the things young people need ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Next step to protect Milford Sound Piopiotahi
    Expert group lays out plan to better protect iconic UNESCO World Heritage site Milford Sound Piopiotahi and its surrounds Funding confirmed for dedicated unit and Establishment Board to assess the recommendations and provide oversight of the process from here Milford Opportunities Project a test case for transformational change in tourism ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Funding for projects to reduce waste from construction and demolition
    The Government has announced funding for projects in Auckland and the lower North Island to help reduce construction and demolition waste. “Construction is the main source of waste sent to landfill, and much of this could be reduced, reused and recovered,” Environment Minister David Parker said. “The Government is funding ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Plan to eliminate hepatitis C as a major health threat by 2030
    A plan to eliminate hepatitis C in New Zealand, reducing liver cancer and the need for liver transplants, has been released today by Associate Minister of Health Dr Ayesha Verrall. “Around 45,000 New Zealanders have hepatitis C, but only around half know they have it,” said Ayesha Verrall. “Symptoms often ...
    BeehiveBy beehive.govt.nz
    24 hours ago
  • School upgrades and new classrooms for West Coast, Tasman and Canterbury
    A funding injection from Budget 2021 to complete four shovel ready projects and new classrooms at six schools and kura will provide a real boost to local communities, Minister Dr Megan Woods announced today. “This Government has committed to providing quality fit for purpose learning environments and 100,000 new student ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Warmer Kiwi Homes smashes annual target
    The Government's highly successful insulation and heating programme, Warmer Kiwi Homes, is celebrating a key milestone with the completion of more than 38,000 insulation and efficient heater installs in the year to the end of June, smashing its target of 25,000 installs for the year. “The Warmer Kiwi Homes scheme ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Exemption granted for Wallabies to enter NZ
    Bledisloe Cup rugby will be played in New Zealand after the Australian rugby team received an economic exemption to enter New Zealand. Travel between Australia and New Zealand was suspended on Friday for at least eight weeks following the worsening of the COVID outbreak across the Tasman. New Zealanders have ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Minister of Foreign Affairs makes three diplomatic appointments
    Foreign Affairs Minister Nanaia Mahuta today announced three New Zealand Head of Mission appointments. They are: Mike Walsh as Ambassador to Iran Michael Upton as Ambassador to Ethiopia and the African Union Kevin Burnett as Ambassador to Indonesia Iran “Aotearoa New Zealand has a long-standing and constructive relationship with Iran, despite a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Enhanced Task Force Green Approved for West Coast and Marlborough
    The Government has activated Enhanced Task Force Green (ETFG) in response to the West Coast and Marlborough floods, Social Development and Employment Minister Carmel Sepuloni announced today. “To assist with the clean-up, up to $500,000 will be made available to support the recovery in Buller and Marlborough which has experienced ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Govt support for upgrade of Eden Park players facilities
    Minister for Sport and Recreation Hon Grant Robertson has announced funding to upgrade the players facilities at Eden Park ahead of upcoming Women’s World Cup events. Eden Park is a confirmed venue for the Rugby World Cup 2021, the ICC Women’s Cricket World Cup 2022, and a proposed venue for matches of ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • More jobs and quicker public transport motoring towards West Auckland
    Work to improve public transport for West Aucklanders and support the region’s economic recovery by creating hundreds of jobs has officially kicked off, Transport Minister Michael Wood announced today. Michael Wood and Auckland Mayor Phil Goff this morning marked the start of construction on the Northwestern Bus Improvements project. It ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government backs critical health research
    Research into some of New Zealanders’ biggest health concerns including cancer, diabetes, and heart disease is getting crucial support in the latest round of health research funding, Health Minister Andrew Little announced today. The funding, awarded through the Health Research Council of New Zealand, covers 31 General Project grants ($36.64 ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Bay of Islands hospital facilities to bring services closer to home
    Prime Minister Jacinda Ardern and Health Minister Andrew Little have joined a ceremony to bless the site and workers for Phase Two of the redevelopment of the Bay of Islands Hospital in Kawakawa today. The new building will house outpatients and primary care facilities, as well as expanded renal care ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Raukokore re-imagined with ‘smart’ relocatable rent to own housing
    Iwi, Crown Partnership Relocatable, fully insulated housing, connected to a new solar plant Provides a pathway to home ownership New housing in the remote eastern Bay of Plenty community of Raukokore shows how iwi and Crown agencies can work together effectively to provide warm, dry, energy efficient homes in a ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Cabinet accepts Turkish authorities’ request for the managed return of three NZ citizens
    Cabinet has agreed to the managed return of a New Zealand citizen and her two young children from Turkey, Prime Minister Jacinda Ardern announced today. The three have been in immigration detention in Turkey since crossing the border from Syria earlier this year. Turkey has requested that New Zealand repatriate ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt delivers more classrooms so children can focus on learning
    Extra Government investment in classrooms and school building projects will enable students and teachers to focus on education rather than overcrowding as school rolls grow across the country, Prime Minister Jacinda Ardern and Associate Education Minister Kelvin Davis say. The pair visited Ruakākā School in Whangārei today to announce $100 ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New station a platform for AirportLink to take off
    Every Aucklander with access to the rail network will now have a quick and convenient trip to the airport, Transport Minister Michael Wood and Auckland Mayor Phil Goff said during the official opening of the new Puhinui Interchange today. The new interchange links the rail platform with a new bus ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • 10 days sick leave for employees delivered
    Legislation doubling employees’ minimum sick leave entitlement to 10 days comes into effect today, bringing benefits to both businesses and employees, Workplace Relations and Safety Minister Michael Wood announced today. “Our Government is delivering on a key manifesto commitment to help Kiwis and workplaces stay healthy,” Michael Wood said. “COVID-19 ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Prime Minister congratulates Fiame Naomi Mata’afa on Election Win
    Prime Minister Jacinda Ardern tonight congratulated Prime Minister-elect Fiame Naomi Mata’afa on her victory in the Samoa’s general election. “New Zealand has a special relationship with Samoa, anchored in the Treaty of Friendship. We look forward to working with Samoa’s new government in the spirit of partnership that characterises this ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Quarantine Free Travel with Australia suspended
    Quarantine Free Travel from all Australian states and territories to New Zealand is being suspended as the Covid situation there worsens, Prime Minister Jacinda Ardern and COVID-19 Response Minister Chris Hipkins announced today. From 11.59pm today Australians will no longer be able to enter New Zealand quarantine-free. This will be ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Growing conservation efforts in Gisborne
    A big injection of Jobs for Nature funding will create much-needed jobs and financial security for families in TeTairāwhiti, and has exciting prospects for conservation in the region, Conservation Minister Kiri Allan says. “The projects target local communities most affected by the economic consequences of COVID 19 and are designed ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Flood recovery given further assistance
    The Government is contributing a further $1 million to help the flood battered Buller community, Acting Emergency Management Minister Kris Faafoi announced today. “Buller is a small community which has found itself suddenly facing significant and ongoing welfare costs. While many emergency welfare costs are reimbursed by Government, this money ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Funding for five projects to reduce food waste
    The Government is funding five projects to help address the growing problem of food waste, Environment Minister David Parker announced today. “New Zealand households throw away nearly 300,000 tonnes of food every year, half of which could still be eaten. By supporting these initiatives, we’re taking steps to reduce this ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Temporary Accommodation Service activated for West Coast flooding event
    The Temporary Accommodation Service (TAS) has been activated today - meaning residents on the West Coast of the South Island and in the Marlborough region hit by flooding over the weekend can now access help finding temporary accommodation, announced Associate Minister of Housing (Public Housing) Poto Williams in Westport today. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Pause to Quarantine Free Travel from South Australia to New Zealand
    Quarantine Free Travel from South Australia to New Zealand will be paused from 11.59am (NZT) tonight, COVID-19 Response Minister Chris Hipkins has announced. However, people currently in the state who ordinarily live in New Zealand will be able to return on “managed return” flights starting with the next available flight, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand condemns malicious cyber activity by Chinese state-sponsored actors
    New Zealand has established links between Chinese state-sponsored actors known as Advanced Persistent Threat 40 (APT40) and malicious cyber activity in New Zealand. “The GCSB has worked through a robust technical attribution process in relation to this activity. New Zealand is today joining other countries in strongly condemning this malicious ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Remarks to Diplomatic Corps
    It is a pleasure to be with you all this evening. Some of you may have been surprised when you received an invitation from the Minister of Disarmament and Arms Control, and I would forgive you if you were. New Zealand is unique in having established a Ministerial portfolio ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Early Pfizer shipment boosts vaccine schedule
    The largest shipment of the Pfizer vaccine to date has arrived into New Zealand two days ahead of schedule, and doses are already being delivered to vaccination centres around the country, COVID-19 Response Minister Chris Hipkins says. “The shipment of more than 370,000 doses reached New Zealand yesterday, following a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Backing for Bay of Islands predator free effort
    The Government is throwing its support behind an ambitious project to restore native biodiversity and build long-term conservation careers, Conservation Minister Kiri Allan says. Predator Free Bay of Islands aims to eradicate predators from the three main peninsulas in the region, and significantly reduce their impact throughout the wider 80,000-plus ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government commits $600,000 to flood recovery
    The Government is contributing $600,000 to help residents affected by the weekend’s violent weather with recovery efforts. Acting Minister for Emergency Management Kris Faafoi and Agriculture Minister Damien O’Connor have been in the Buller district this afternoon to assess flood damage and support the local response effort. They have announced ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government assisting local responses to heavy rainfall and high wind
    Acting Minister of Emergency Management Kris Faafoi says Central Government is monitoring the severe weather across the country, and is ready to provide further support to those affected if necessary. “My thoughts are with everyone who has been affected by this latest event, particularly communities on the West Coast and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • PM Ardern chairs APEC Leaders’ meeting on COVID-19
    New Zealand Prime Minister Jacinda Ardern has chaired a meeting of Leaders representing the 21 APEC economies overnight. “For the first time in APEC’s history Leaders have come together for an extraordinary meeting focused exclusively on COVID-19, and how our region can navigate out of the worst health and economic ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health Minister welcomes progress on nurses’ pay
    The New Zealand Nurses Organisation’s decision to take the Government’s improved pay offer to members and to lift strike notices is a positive move towards settling district health board nurses’ pay claims, Health Minister Andrew Little said. “It’s encouraging that the discussions between NZNO and DHBs over the nurses’ employment ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Boost for Pacific regional business
    Pacific businesses will get a much-needed financial boost as they recover from the effects of the COVID-19 pandemic thanks to the new Pacific Aotearoa Regional Enterprise Fund, said Minister for Pacific Peoples Aupito William Sio.  The new $2 million fund will co-invest in Pacific business projects and initiatives to create ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • PM Ardern call with President Biden
    Prime Minister Jacinda Ardern spoke with US President Biden this morning, ahead of the APEC Informal Leaders’ Retreat on COVID-19. “President Biden and I discussed the forthcoming APEC leaders meeting and the critical importance of working together as a region to navigate out of the COVID-19 pandemic”, Jacinda Ardern said. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Renewed partnership creates jobs for New Zealand youth
    The Government has signed a new memorandum of understanding (MoU) with the Mayors Taskforce for Jobs, strengthening the partnership to get more young people into work.  The Mayors Taskforce for Jobs (MTFJ) is a nationwide network of all Mayors in New Zealand, who are committed to making sure all young ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • South Island areas prioritised in tourism fund
    Five South Island areas are prioritised in the latest round of decisions from a tourism fund that is supporting infrastructure projects from Cape Reinga to Stewart Island and the Chathams. Tourism Minister Stuart Nash has announced details of 57 nationwide projects to receive support from the Tourism Infrastructure Fund (TIF). ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New code sets clear expectations for learner safety and wellbeing in tertiary education
    A new code of practice for the pastoral care of domestic tertiary and international students will be in place from January next year, Education Minister Chris Hipkins announced today The code, which makes clear that creating an environment that supports learning and wellbeing is a shared responsibility between tertiary providers, ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • First TAB New Zealand Board appointments announced
    The members of the first TAB NZ Board come with experience in racing and sport administration, business and governance, the betting industry, broadcasting and gambling harm minimisation. “This Board will progress from the excellent work done by the interim board, put in place in August 2020,” Grant Robertson said. “The ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Northland Maori Pathways initiative introduced
    The Government has today launched Māori Pathways at Northland Region Corrections Facility, a ground-breaking series of initiatives designed in partnership with Māori to reduce re-offending and improve outcomes for whānau. A key part of the Hōkai Rangi strategy, Māori Pathways looks to achieve long-term change and involves a number of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago