web analytics

Padding pockets, not houses

Written By: - Date published: 12:45 pm, August 11th, 2009 - 44 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.

44 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

  • Climate resilience packages for regions
    The Government is providing an investment totalling more than $100 million for regions to protect against and mitigate the effects of climate change, Deputy Prime Minister Winston Peters and Infrastructure Minister Shane Jones have announced. Six regions will receive funding from the $3 billion allocated to infrastructure projects from the ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Southern Waikato shovel ready projects get the green light
    Three major local projects at Te Kuiti and Otorohanga have been given the money to get moving after the impact of Covid 19, says the Minister of Māori Development Hon Nanaia Mahuta.  The projects range from a Sports Centre for Te Kuiti, a redevelopment of the Otorohanga  Kiwi House and ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • New Zealand extends Middle East and Africa peace support deployments
    The Coalition Government has extended three New Zealand Defence Force deployments to the Middle East and Africa by two years, Foreign Affairs Minister Winston Peters and Defence Minister Ron Mark announced today.  “These deployments promote peace in the Middle East and Africa by protecting civilians and countering the spread of ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Govt progress on climate change essential, risk assessment shows
    The release of the National Climate Change Risk Assessment shows that the progress this Government has made to solve the climate crisis is essential to creating cleaner and safer communities across New Zealand. “Because of this report, we can see clearer than ever that the action our Government is taking ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • $10m sport recovery fund open for applications
    The second round of the Community Resilience Fund is now open for applications for sport and recreation organisations experiencing financial hardship between 1 July and 30 September 2020. “The fund opens today for five weeks – closing on September 6. The amount awarded will be decided on a case-by-case basis ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Rakitū Island declared latest predator free island
    Minister of Conservation Eugenie Sage today declared Rakitū Island, off the coast of Aotea/Great Barrier Island, predator free. “I’m delighted to announce that with rats now gone, Rakitū is officially predator free. This is a major milestone because Rakitū is the last DOC administered island in the Hauraki Gulf Marine ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Funding to restore significant Māori sites in the Far North
    The Provincial Growth Fund is investing $8.75 million to restore significant historic sites at Ōhaeawai in the Far North, upgrade marae and fund fencing and riparian planting. Regional Economic Development Minister Shane Jones made the announcements following a service at the historic St Michael’s Anglican Church at Ōhaeawai today.  Just ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Big boost for Chatham Islands’ economy
    The Chatham Islands will receive close to $40 million for projects that will improve its infrastructure, add to its attraction as a visitor destination, and create jobs through a planned aquaculture venture, Infrastructure Minister Shane Jones has announced. “The COVID-19 pandemic has had a devastating impact on the islands, first ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • More initiatives to reduce energy hardship
    The Government is delivering more initiatives to reduce energy hardship and to give small electricity consumers a voice, Energy and Resources Minister Megan Woods said today. “In addition to the initiatives we have already delivered to support New Zealand families, we are responding to the Electricity Price Review with further ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Turning the tide for hoiho/yellow-eyed penguin
    Government, iwi, NGOs and rehabilitation groups are working together to turn around the fortunes of the nationally endangered hoiho/yellow-eyed penguin following a series of terrible breeding seasons.  The Minister of Conservation Eugenie Sage helped launch the Five Year Action Plan at the annual Yellow-Eyed Penguin symposium in Dunedin today. “I ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Taskforce ready to tackle tourism challenges
    The membership of the Tourism Futures Taskforce has now been confirmed, Tourism Minister Kelvin Davis announced at an event at Whakarewarewa in Rotorua today. “The main purpose of the independent Tourism Futures Taskforce is to lead the thinking on the future of tourism in New Zealand,” Kelvin Davis said. Joining ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Investing in the tourism sector’s recovery
    More than $300 million in funding has been approved to protect strategic tourism businesses, drive domestic tourism through regional events and lift digital capability in the tourism industry, Tourism Minister Kelvin Davis announced today. A $400 million Tourism Recovery Package was announced at Budget 2020, and with today’s announcements is ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Permits to be required for exporting hard-to-recycle plastic waste
    From 2021 permits will be required for New Zealanders wanting to export hard-to-recycle plastic waste. The Associate Minister for the Environment, Eugenie Sage, today announced the requirements as part of New Zealand’s commitments to the Basel Convention, an international agreement of more than 180 countries which was amended in May ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Growth in new building consents shows demand is still high
    The building and construction sector is still showing strong growth, with the number of new dwellings consented up more than 8 per cent compared to last year, reflecting a welcome confidence in the Government’s COVID-19 response package, Minister for Building and Construction Jenny Salesa says. “While it is still too ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • $23 million for Bay of Plenty flood protection
    Government investment of $23 million for Bay of Plenty flood protection will allow local communities to address long-standing flood risks and provide jobs, Deputy Prime Minister Winston Peters and Under-Secretary for Regional Economic Development Fletcher Tabuteau announced in Rotorua today. These projects are being funded by the Infrastructure Reference Group’s (IRG) shovel ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Rotorua benefits from over $62 million boost
    Investment for projects that will create hundreds of jobs in Rotorua were announced today by Deputy Prime Minister Winston Peters and Under-Secretary for Regional Economic Development Fletcher Tabuteau. These projects will provide opportunities for economic development in a region that has been hard hit by COVID-19,” Winston Peters said. Fletcher ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Increased counselling support for all students
    For the first time, primary schools will have access to funding for counsellors for their students, Associate Education Minister Tracey Martin announced today. “A major investment of $75.8 million will provide greater access to guidance counsellors to help primary and secondary school students deal with mental health and wellbeing issues,” ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Report of the Government Inquiry into Operation Burnham released
    Defence Minister Ron Mark today welcomed the release of the Report of the Government Inquiry into Operation Burnham and related matters, and the Government response.  “I thank the Inquiry for their thorough and detailed report, on a highly complex issue. I accept the recommendations of the report, and fully support ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • 1BT funds create jobs and lasting benefits
    Forestry Minister Shane Jones has announced $6 million of One Billion Trees funding for seven regional initiatives to create jobs and provide long-lasting environmental and economic benefits. The projects range from improving one of the poorest-quality water catchments in Otago to restoring 52km of waterways around Hokianga Harbour. Six of the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Kawerau projects to receive $5.5 million from Provincial Growth Fund
    Deputy Prime Minister Winston Peters today announced $5.5 million in funding from the Provincial Growth Fund (PGF) for two Kawerau projects and says this is a significant boost for the people of Kawerau. “These projects will bring much-needed investment and will create up to 60 jobs for locals,” Mr Peters ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • $5 million for Kaingaroa Village Redevelopment
    Kaingaroa Village in the Bay of Plenty is to get $5 million to help fund a comprehensive upgrade of its infrastructure, facilities and housing, Under-Secretary for Regional Economic Development Fletcher Tabuteau announced today. Mr Tabuteau travelled to the remote village to make the announcement, telling Kaingaroa residents how the funding ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • $18 Million Funding Boost for Bay of Plenty Business Park
    The Rangiuru Business Park project near Te Puke is getting $18 million from the Provincial Growth Fund (PGF), Under-Secretary for Regional Economic Development Fletcher Tabuteau announced today. “This is all about unlocking the potential of this region. When it’s finished, the Rangiuru Business Park will be the Bay of Plenty’s ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Town revitalisation and aquaculture investments create jobs in Ōpōtiki
    Deputy Prime Minister Winston Peters has today announced that a $26 million investment in Ōpōtiki will see important public amenities upgraded and further progress made on new aquaculture opportunities. “The people of Ōpōtiki have been waiting decades for real investment in key infrastructure, and support for the incredible aquaculture opportunities ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister congratulates the Cook Islands community for its 9th year of Language Weeks
    The Minister for Pacific Peoples, Aupito William Sio wishes to congratulate the Cook Islands community throughout Aotearoa for the 9th year of Te ‘Epetoma o Te Reo Māori Kūki ‘Āirani, the Cook Islands Language Week.  “This is a proud milestone that reflects on the huge effort made by the Cook ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Construction underway on longest section of Glen Innes to Tāmaki Drive Shared Path
    Aucklanders in the Eastern Suburbs will soon have more ways to get around, with Transport Minister Phil Twyford and Associate Transport Minister Julie Anne Genter kicking off construction on Section 2 of Te Ara Ki Uta Ki Tai, the Glen Innes to Tāmaki Drive Shared Path today. The Glen Innes ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • 350,000 More Measles Vaccines for Massive Immunisation Campaign
    The Government is stepping up the fight against measles and protecting hundreds of thousands more young adults by investing up to $40 million for a year-long measles-catch-up campaign and $23 million to fully fund and develop the National Immunisation Solution, Associate Minister of Health Julie Anne Genter announced at Mangere ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Operation Burnham report released
    Attorney-General David Parker has today released the findings of the Government inquiry held into Operation Burnham and related events. The operation took place on 21-22 August 2010 in Tirgiran Valley, Afghanistan, and was carried out by NZSAS troops and other nations’ forces operating as part of the International Security Assistance ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Locally-led solutions at centre of new community resilience fund
    From tomorrow, community groups around New Zealand can apply to a $36 million fund established to encourage locally-led solutions as communities rebuild and recover from COVID-19, announced Minister for Social Development Carmel Sepuloni and Minister for Community and Voluntary Sector Poto Williams. “The Community Capability and Resilience Fund (CCRF) builds ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Securing healthy futures for all Māori
    The Government has committed to improving Māori health and wellbeing over the next five years. The Associate Minister of Health (Māori Health) today released Whakamaua: Māori Health Action Plan 2020-2025 which sets the pathway towards achieving healthy futures for all Māori. “As kaitiaki of the system, the Ministry of Health ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New standards for existing marine farms provide consistency
    New environmental standards will make the re-consenting of existing marine farms more consistent across the country.  The new regulations for the National Environmental Standards for Marine Aquaculture (NES-MA) will come into effect on 1 December, Environment Minister David Parker and Fisheries Minister Stuart Nash said.   “The NES-MA removes complexities and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government signs Accord reinvigorating commitment to Far North iwi
    Today marks a milestone as the Minister for Social Development Carmel Sepuloni and Minister for Māori Development Nanaia Mahuta co-sign an Addendum – with the Iwi Chairs of Te Rarawa, Ngāi Takoto and Te Aupōuri – to the Te Hiku o Te Ika Iwi-Crown Social Development and Wellbeing Accord (the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Veterans Support Amendment Bill No 2 passes third reading
    The Veterans’ Support Amendment Bill (No 2) passed its third reading today and will become law, announced Minister for Veterans Ron Mark.  This amends the Veterans’ Support Act 2014 in response to recommendations from the 2018 review of the operation of the Act by Professor Ron Paterson.  “Veterans have been ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Racing Safety Development Fund open for applications
    Minister for Racing Winston Peters says race courses can improve safety with this year’s first round of funding from the Racing Safety Development Fund. The Racing Safety Development Fund makes available $990,000 for distribution over two funding rounds for the 2020/21 financial year. “The racing industry is integral to the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Boost to agri-education with reopening of Taratahi
    The Government’s commitment to increase primary sector jobs and opportunities has been further boosted today with the re-opening of the Taratahi Agriculture Centre, says Agriculture Minister Damien O’Connor. The Wairarapa-based training centre is reopening its doors after two years to deliver industry taster and familiarisation courses, to help workers displaced ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Acknowledging ethnic community response during COVID-19
    New Zealanders are being invited to help recognise the work of the many “unsung heroes” in our ethnic communities during COVID-19. “Aotearoa New Zealand is home to 920,000 people who identify their ethnicity as Middle Eastern, Latin American, African, Asian, and Continental European. During the extraordinary time of the COVID-19 ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government to subsidise arbitration and mediation to resolve commercial rent disputes
    The Government is allocating $40 million to assist with the cost of mediation and arbitration for New Zealand businesses and landlords to resolve issues about adjusting rent as they face the economic impacts of COVID-19, Justice Minister Andrew Little said. The Government had previously announced funding to improve access to ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Roadside drug driver testing Bill introduced
    The Government has announced details of a planned new law to give Police the power to conduct random roadside drug testing of drivers, Associate Transport Minister Julie Anne Genter and Minister of Police Stuart Nash announced today. The Land Transport (Drug Driving) Amendment Bill was introduced to the house today ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Boost to upgrade state housing to be warmer, drier, healthier homes
    More warmer, drier homes and a big building boost for regional centres across New Zealand are two of the major benefits from a $500 million investment in the upgrade and renewal of state homes. Associate Housing Minister Kris Faafoi has confirmed the multi-million dollar expansion of the Kāinga Ora – ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Makeover for iconic waterfront destination
    The Government will provide $8 million towards the revitalisation of the Paihia waterfront in the iconic Bay of Islands, Infrastructure Minister Shane Jones has announced. The Bay of Islands is the cornerstone of Northland tourism and Paihia the hub for maritime-based tourism and recreation in the area. “Weather and economic ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Dates confirmed for Christchurch Hospital Hagley move
    Health Minister Chris Hipkins welcomes confirmation of Canterbury DHB’s move into state-of-the-art Christchurch Hospital Hagley building which will serve the community well for decades to come.  The Ministry of Health is on track to hand over the facility on 10 August 2020. Sterile Services is due to be operational on ...
    BeehiveBy beehive.govt.nz
    5 days ago