Possible $1.5b in tax cuts in 2008

Written By: - Date published: 2:55 pm, December 18th, 2007 - 43 comments
Categories: tax - Tags: , ,

From Stuff:

Cullen said “uncertainties” still existed, but Treasury had “significantly” lifted its revenue forecasts which meant the $1.5b in tax cuts in addition to more spending could be factored in to the budget.

“This figure is very soft as no decisions have been taken on the timing, size, shape or scope of our personal tax cuts,” Cullen said.

Cullen has also reemphasised that:

“I can say, however, that the Labour-led government’s personal tax cuts will meet the four tests that I have previously outlined. We will cut personal taxes:

– Without borrowing to do so
– Without cutting services
– Without exacerbating inflationary pressures
– Without creating greater inequalities in our society”

Cullen’s release is here.

43 comments on “Possible $1.5b in tax cuts in 2008 ”

  1. dave 1

    Heg guys have you seen the polls lately? Key is preferred PM

  2. Tane 2

    Thanks Dave, there’s a thread for that conversation over here:
    http://www.thestandard.org.nz/?p=874

  3. Kimble 3

    Without borrowing to do so – National wouldnt have, the truth nobody has ever suggested borrowing to fund tax cuts

    Without cutting services – National wouldnt have but they would have worked to increase the efficiency of those services so that the money is spent better, something labour obviously doesnt care about, all that matters to them is the amount of money that is spent

    Without exacerbating inflationary pressures – they have as much chance as National would have in this endeavour

    Without creating greater inequalities in our society – Note they didnt say reducing inequalities.

  4. I agree with Kimble that both can hold with tax cuts. In regards to the other two points, I have a couple of questions I would like to be enlightened about.

    “”¢ Without exacerbating inflationary pressures
    “¢ Without creating greater inequalities in our society”

    What do we define as inequalities? How do we achieve both of these by only using tax cuts, or do we require a change in the composition of spending as well?

  5. Sam Dixon 5

    Matt Nolan –
    “”¢ Without creating greater inequalities in our society”

    What do we define as inequalities?”

    Some people have heaps more than others.

    If you cut tax for rich people more than poor people you will increase inequality.

    “How do we achieve both of these by only using tax cuts, or do we require a change in the composition of spending as well?”
    you misconstrue Cullen’s points, he’s not tlaking aobut ‘solving’ inflation or inequality, he’s talking aobut not making htem worse with tax cuts.

  6. Billy 6

    Fuck. United are backtrackingon support of the EFB.

  7. Tane 7

    Without borrowing to do so – National wouldnt have, the truth nobody has ever suggested borrowing to fund tax cuts

    Kevin List: How much will we be borrowing, in a hypothetical universe?

    John Key: We did some calculations prior to the election. You may remember we originally had said we thought over the term of the first, or over the period of the first term of the National Government, we were likely to borrow $3 billion more than what the current projections had been for the Labour Government.

    http://www.scoop.co.nz/stories/HL0606/S00216.htm

  8. “If you cut tax for rich people more than poor people you will increase inequality.”

    Maybe, it really depends on the incidence of tax. The more inelastic demand is for a certain type of labour, then the less of the tax cut that labour group ultimately receives. As demand for highly skilled – highly paid labour is highly inelastic, a greater tax cut for these groups may not lead to higher income groups having a larger increase in income.

    Furthermore, what do we mean when we say cutting taxes more for the rich than the poor. If we cut everyones tax liability by 30%, the rich would get more than the poor (if the incidence of tax was equal between groups), by virtue of their higher income.

    “you misconstrue Cullen’s points, he’s not tlaking aobut ‘solving’ inflation or inequality”

    Fair point, sorry about that. However, if we were define inequality as ‘giving more to the rich than the poor’ then it seems like a difficult task to achieve that and not cause inflationary pressures. This comes from the fact that we keep inequality constant in this case by increasing the progressivity of the tax system (or in a broader sense of inequality we could leave the tax system just as progressive). However, this will increase effective marginal tax rates, reducing firms labour supply.

    Given that people will try to spend some part of their tax cut, and given that labour supply and thereby output have fallen, we will have inflation. As a result, there will by definition be a trade-off between these goals.

    If this is the case, then we cannot have tax cuts under those conditions.

  9. Pascal's bookie 9

    I genuinely don’t understand this ‘not borrowing to fund tax’ cut stuff.

    If a gov’t runs a deficit and cuts taxes such that otherwise there would not have been a deficit, then surely, in any sense other than the semantic they are borrowing money to fund a tax cut.

    I realise that you can put the borrowing in a seperate box marked ‘infrastructure’ or ‘kitten purchases’ or whatever and say that the deficit springs from that, but the fact remains that you have cut taxes now, and borrowed money for spending that will have to be repaid by taxes in the future. eg GWBush.

  10. Pascal’s bookie (great name by the way), I think the point is that we have a structural surplus, which means that in the long-run tax revenue will exceed spending. As a result, we can cut taxes by the size of that structural surplus, and we will not have to ‘borrow’ in order to fund it.

    You are exactly right that tax cuts beyond this, without a corresponding reduction in permanent spending, would require tax increases in the future. However, a tax cut that is the size of the structural surplus is entirely consistent with no long-term borrowing.

  11. Kimble 11

    Tane, was he talking about borrowing to pay for tax cuts?

    Nope, you dirty liar.

    “The postcard says that National would borrow wisely to pay for roading and infrastructure.”

    This is the borrowing he was refering to. Borrowing to build infrastructure is perfectly rational.

  12. “This is the borrowing he was refering to. Borrowing to build infrastructure is perfectly rational.”

    I agree with Kimble. Infrastructure is an investment that benefits future generations as well as the current one. It is fairer to borrow and spread the liability for the construction of these assets over the lifetime of the asset, then to force the current generation to pay the whole cost of the investment.

  13. Matthew Pilott 13

    Matt Nolan,

    If tax levels remained the same, there would be more money around for infrastructure in the first place. Kimble is trying to distort it by saying that on one hand, we won’t borrow for tax cuts, but yes we will borrow to spend elsewhere. This is, of course, saying National wants six, not half a dozen.

    In essence – don’t cut taxes and you don’t need to borrow! Key’s spin was, I thought, a really transparent effort to muddy the waters. Seems to have worked on some…

    Now, I like your point regarding infrastructure. I had not thought of it in those terms before. However (I guess this is where I disagree :)), the cost of borrowing is always greater than that of funding a project outright. It could be construed as burdening future generations with debts to pay for what we need now – those generations will have their own needs to fund, which will only be achievable if we’ve paid our share…

    If NZ can keep up with requirements, there wouldn’t need to be a borrowing cost at all, which benefits everyone, apart from the rich private backers (who would take their cut via tolls or interest payments).

  14. Pascal's bookie 14

    Thanks Matt.

    I understand your point about spreading the cost of the investment over the lifetime of the asset but worry about the moral hazard involved in having politicians making the argument.

    Afterall they are after the votes now, the electorate will have moved on in 5 years (let alone 30) and it is difficult to gaurantee that the loans will always be affordable over their lifetime. Maybe ‘affordable’ is too strong a word but I hope you catch my drift. The pollies have an incentive to spend lots now, and pay for most of it later, whether or not the investment is good will not be known till later, when those pollies are gone baby gone. The electorate has a tendency to fall for it.

  15. Kimble 15

    No Matthew you are once again wrong.

    There are very good arguments for funding infrastructure with debt. Dont blame me for your lack of understanding.

    The fact remains that Key wasnt saying that his government would borrow to turn around immediately and pay it out as tax cuts. Quite frankly it is retarded to even suggest that he did.

    “the cost of borrowing is always greater than that of funding a project outright”

    It depends on what else that money could be used for. If you can invest and get a rate of 10%, why not borrow at 7.5% and get a free 2.5%?

    Pascal, it sounds as if you are talking about climate change measures. Plenty of moral hazard there with politicians pandering for votes now, promising all sorts of reductions in CO2, but having the day of reckoning be well past their use by date.

  16. Pascal's bookie 16

    Except Kimble, in the climate change debate, the pollies are asking that voters face higher costs now for possible future benefits/lower costs. So it’s exactly the opposite. Apart from that, good analogy.

  17. Kimble 17

    Moral hazard is moral hazard. The quibble you have raised over timing changes nothing. Votes now, comeupance later. But hey, you go ahead and keep grasping at straws.

  18. Pascal's bookie 18

    So even accepting your logic, which I don’t for reasons that are obvious, it wasn’t a bad analogy but rather an obvious tu quoque position. awesome.

    Lord, grant me the strength to bear the idiots that can’t be helped, the patience to help those that can, and the wisdom to know the difference. Amen.

  19. Lampie 19

    There are very good arguments for funding infrastructure with debt. Dont blame me for your lack of understanding

    Why borrow if you have the cash?

  20. Santi 20

    “Tax cuts are a path to inequality. They are the promises of a visionless and intellectually bankrupt people” said Helen Clark at the 2000 Labour Party conference.

    Wow. How times have changed! It goes to show that socialist Labour will do whatever it takes to stay in power.

    Corrupt to the bone, these people are contortionists of the lowest order.

  21. Lampie 21

    What year is it?

  22. Kimble 22

    “Why borrow if you have the cash?”

    Because paying for infrastructure isn’t like buying a house, Lampie.

    You will find a better explanation elsewhere than I can give at the moment, just do a little digging.

    The point is, Tane once again relies on misquoting Key in order to find anything objectionable to say about the man.

  23. Lampie 23

    No, it’s not like buying a house but no need to borrow if you budget and still make a surplus is there? If you borrow for other things and still give tax cuts, it really is defeating the purpose i.e. living beyound your means. Only real winner is a short term benefit to the tax payer. If you can fund your expenses within your budget and still have a little left over (well 8 billion sounds more than a little) then revenue could be decreased (revenue is a bit hmmmm wrong to say).

  24. Lampie 24

    mind you depends if we are talking long term or short. Short term yeah, speeding up projects by issuing bonds, too right. long term hmmm nah, mind you define short term 10-15 years is most likely short for a Govt.

  25. Wayne 25

    “Tax cuts are a path to inequality. They are the promises of a visionless and intellectually bankrupt people” said Helen Clark at the 2000 Labour Party conference.

    No she didn’t, she said: “Tax cuts are a path to inequality and underdevelopment in today’s circumstances. They are the promises of vision-less and intellectually bankrupt people”

    [http://www.thestandard.org.nz/?p=643]

    You’re deliberately misquoting Clark for political gain. How hypocritical.

  26. Kimble 26

    Lampie, you are really trying and that is good. I am not going to bother explaining why, as I said, others have done it much better elsewhere. Go find what they have said, educate yourself.

    But let the record show that Tane has lied once again. He has been caught using a quote completely out of context and then lying about what Key was saying.

  27. Wayne 27

    Kimble you’re trying hard with the “lying” tag aren’t you? Follow the link Tane has provided and you’ll find the article is entitled “Scoop Talks To Key About Tax Cuts”. It’s pretty clear any talk about borrowing for infrastructure is being done in the context of tax cuts. Stop trying to label people liars when you can’t even do your basic research.

  28. AncientGeek 28

    Actually I think that Kimble is correct in what he says about raising debt for infrastructure. However he is also wrong at a government level because of the intergenerational issues with the super system.

    The only reason for putting in infastructure is to ensure that there is a return over the longer term. ie that the return off putting it in now will pay off over the long term. Thats a classic Nett Present Value (NPV) calculation against an alternate use of the money. Typically calculating against the cash flows in present values into the safest possible investment – usually calculated as bank interest. The more risky the investment – the higher you make the discount rate.

    Since most of the return accrues in the future, then the costs should also transfer to the future generations. That allows the available cash to be used for things that have more return in the short-term.

    BTW: The reason why governments do this kind of long term investment is because businesses are typically risk adverse past the medium term, and the risk in long-term investment is high – as reflected in discount rates. Look at investments by governments before; Think Big, Marsden B, the tar-sealing of the rural road system, etc. I don’t think any of those paid back the initial investment. Others like Huntly power, the main road network, the phone system, etc have.

    However at present, the opposite applies. Currently we have incurred a future liability with a aging population and our superannuation and health system. These require that future tax-paying generations pay for the current generations when they need those services. At this point this cannot be changed to a more equitable inter-generational basis in less than a 20 years basis (even if you wanted to).

    So the best possible uses of cash now on an intergenerational basis (and NPV) is to put the money into investments that ensure that make sure that the next generations of taxpayers are not too heavily burdened in taxes by past decisions. There is a less altruistic reason for current voters as well – if the burden isn’t reduced by current voters – then you virtually guarantee a tax-payer revolt later, and a reduction in benefits.

    The safest investment is to put the money ‘in the bank’ – effectively something like the Cullen fund. The next safest investment is to do something like KiwiSaver – effectively to reduce the need to increase super because people have their own supporting investment. The risker strategies are to put investment into infastructure that means the economy is more capable of paying for it – ie education, job creation, physical infatructure etc.

    The riskiest investment of cash now is probably taxcuts because until you do it, you can’t really figure out the probable economic effects in 20 years. Therefore you have to put a really high discount rate on it. This is because there isn’t that much evidence supporting the assertion that says a taxcut will be used by the recipients in better investments or savings that benefit the economy in the long term.

  29. AncientGeek 29

    BTW: The all time best government investment in the past has got to have been the water and sewerage systems in the late 19th and early 20th centuries. The nett effect of these has been to increase the effective working life of the whole population, and therefore our ability to pay for everything else since.

  30. Lampie 32

    This is good too

    “New Zealand operates a simple and transparent tax system relative to other countries. Our overall level of taxation – as a share of the economy – is one of the lowest in the OECD.”

  31. Lampie 33

    BTW: The all time best government investment in the past has got to have been the water and sewerage systems in the late 19th and early 20th centuries. The nett effect of these has been to increase the effective working life of the whole population, and therefore our ability to pay for everything else since.

    Isn’t that more local?? As I supply equipment to water treatment which are serviced by Councils.

    Basically Kimble, roads mainly have been disregarded by Govts. past for too long and now we are paying catchup. Been able to increase allocation to these means less borrowings yeah?

  32. Lampie 34

    Or is it local just recently?

  33. Lampie 35

    Crutch of the argument is, why borrow and decrease revenue at the same time? Regardless saying we need to borrow for this or that and also we shall cut taxes at the same time. Your robbing peter to pay paul (however you say it).

  34. Kimble 36

    Wayne, Key would only be talking about borrowing money to cut taxes IF you believe that infrastructure spending should be done using ‘cash’.

    That is a separate argument. Key’s position is that it shouldnt be. This is the context that is important.

    The truth is that Tane has taken what Key said, ignored what Key meant, ignored this vital context, and is going around telling people (though not in so many words) that Key is going to borrow money to pay straight back out in taxes.

    What is that if not dishonest?

  35. Matthew Pilott 37

    Kimble, however you spin it, if he cuts taxes and then borrows to spend on infrastructure the net effect is the same. There is simply no more basic way to illustrate that.

    There are very good arguments for funding infrastructure with debt. Dont blame me for your lack of understanding.

    There’s a critical difference between understanding a concept and agreeing with it Kimble, I can’t see how you would fail to make that distinction and assume you were lying here.

    It depends on what else that money could be used for. If you can invest and get a rate of 10%, why not borrow at 7.5% and get a free 2.5%?” Amusing that you would even suggest this in the same comment in which you called another concept retarded by the way. Given this scenario, can you point me to these lenders? I want to borrow $30 million at 7.5% so I can invest it at 10%. Cheers.

  36. Kimble 38

    The example was simply to illustrate a point Matthew, that debt is not always bad. What you can do with the debt may provide a greater return than the cost.

    The only way Key would be saying what you think he is saying, would be if he believed infrastructure should be paid for using cash. Given that he doesnt, he is not saying what you think he is.

  37. Lampie 39

    Think you may have missed the point of what everyone else is saying.

    why borrow and decrease revenue at the same time?

    We borrow now to spend on infrastructure, we just don’t need to borrow as much. Key suggest $3 billion more than we are currently borrowing to spend on roads as well as reducing revenue collection. He is banking that the infrastructure will deliver the difference (plus other means such as expenditure spending).

    Bit like I cut your income but your expenses have increased while your building your rental.

  38. Kimble 40

    Consider this. Government can borrow at the risk-free rate. The cost of future payments can be brought back to todays dollars by discounting at the risk free rate.

    http://en.wikipedia.org/wiki/Discount

    So $100m borrowed at the risk free rate and paid back over 30 years, in todays dollars, equals $100m.

    So the government can either spend $100m today, or borrow and end up paying back $100m in todays dollars.

    Think about it.

    Captcha: interfering curries

  39. Kimble 41

    Also consider,

    If the discount rate is higher than the risk free rate, then the present value of the project is actually LOWER than the cash amount to be spent now.

  40. Rumpole 42

    Wayne
    Either things have changed since 2000 to make tax cuts appropriate or they havn’t. If they havn’t then Cullens tax cuts are vote bribes. If they have then unless the circumstances changed very recently then Cullen has been lying to us about their affordability or adviseability. Bollard appears to be warning against cuts on inflationery grounds so perhaps dividing the surplus equally between all taxpayeningimmigrationrs and placing the proceeds in a personal retirement account is the way to go. Not sure if pure beneficiaries should be included as they may not have contributed so giving them a share would increase inequality with taxpayers.

  41. Lampie 43

    Still missing the point of the argument with your accounting 101 stuff, I’m sure our friends at Treasury would really have that sorted from day 1. Give them some credit, thought you might had a look at those links with the borrowing programme, even Key mentions it.

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    The KakaBy Bernard Hickey
    3 days ago
  • The Kākā’s Journal of Record for Thursday, July 11
    TL;DR: The top six announcements, rulings, reports, surveys, statistics and research around housing, climate and poverty in Aotearoa’s political economy in the day to 6:00 am on Thursday, July 11 are:Economy: Te Pūtea Matua The Reserve Bank of New Zealand (RBNZ) announced its Monetary Policy Committee decided to hold the ...
    The KakaBy Bernard Hickey
    3 days ago
  • Farmers’ revenge meets Green resistance
    If there was one issue that united farmers in opposition to the Labour Government, it was the battle of the waterways between farmers and Environment Minister David Parker. Parker won the first round with his 2020 National Policy Standard on Freshwater Management (NPSFM) which imposed tough new standards on waterways ...
    PolitikBy Richard Harman
    4 days ago
  • Personal Reflections: 10th July
    Please note: This is a personal reflection and does not refer to politics. These entries are not sent to subscribers.Text within this block will maintain its original spacing when publishedHubris and Pride Out of the fire and into the frying pan? Swimming with the big sharks Tonight, I am excited. ...
    Mountain TuiBy Mountain Tui
    4 days ago
  • Oh Vienna
    Nothing can warm your heart like the sight of your daughter stepping off a train. Mary-Margaret arrived on Saturday to ride with us to Vienna.You know your way around a bike? the guy at the hire shop asks her. Yep. She’s ridden them on rail trails, Auckland’s mean streets, commutes ...
    More Than A FeildingBy David Slack
    4 days ago
  • Geoffrey Miller: New Zealand forges deeper ties with NATO
    Christopher Luxon is finding his foreign policy feet. Now eight months into the job, New Zealand’s Prime Minister is in Washington DC this week to attend the NATO summit. It is the third year in a row that Wellington has been invited to the annual gathering of the North Atlantic ...
    Democracy ProjectBy Geoffrey Miller
    4 days ago
  • Climate Change: National’s carbon capture fantasy
    As the climate crisis has grown worse, the tactics of the polluting industries have shifted. From denying climate change, they then moved on to pushing "carbon capture" - dumping their emissions underground rather than in the atmosphere. It's a PR scam, intended to prolong the life of the industry we ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Harsh Truths.
    The Way We Were: An indelible mark was left upon a whole generation of New Zealanders by the Great Depression and World War II; an impression that not only permitted men and women of all classes and races to perceive the need to work together for the common good, but also ...
    4 days ago
  • Explainer: Simeon Brown's CCUS Announcement
    Sources for the data and research:Peter Milne: Time’s up on Gorgon’s five years of carbon storage failureSimon Holmes a Court: "Does best CCS power station in world provide model for Australia?" Chris Vanderstock: "The truth about Carbon Capture and Storage"   "Sunk Costs": documenting CCS's failure to meet every, single, target, ...
    Mountain TuiBy Mountain Tui
    4 days ago
  • The Kiwirail Interislander saga continues
    This morning, 1 News is reporting that the cancellation of the i-Rex ferries has so far cost taxpayers $484 million.That's almost half a billion dollars. That could probably fund thousands of new doctors, maybe complete a few hospital rebuilds, or how about money for our experienced police so they don’t ...
    Mountain TuiBy Mountain Tui
    4 days ago
  • Bernard’s Chorus for Wednesday, July 10
    As foreshadowed in legislation passed quietly under urgency just before Christmas, the Transport Minister has personally watered down standards for car imports in a way expected to add millions of tonnes to our climate emissions Photo: Lynn Grieveson / The KākāTL;DR: My top six things to note around housing, climate ...
    The KakaBy Bernard Hickey
    4 days ago
  • Christopher Luxon's business acumen
    It’s April, and the relatively new Prime Minister of New Zealand is on his first overseas mission to South East Asia.Christopher Luxon walks into the room. A warm smile on his face. A hand extended to his counterpart.“We are open for business,” he says confidently. “New Zealand is under new ...
    Mountain TuiBy Mountain Tui
    4 days ago
  • Meet New Zealand's Russell Brand?
    Hi,There is an all too common story within the guru community, and we see it play out again and again. The end is nearly always the same — a trail of victims and confusion left in the guru’s wake.As seen in the recent case of Russell Brand, the guru simply ...
    David FarrierBy David Farrier
    4 days ago
  • Why is the Government flooring it on unsafe speeds?
    Feedback closes midnight Thursday 11 July, on the draft speed-setting rule. See our previous post on the subject for details, and guidance on having your say. Among other things, it proposes to raise speeds in cities back up to a universal 50km/h (with no option of 30km/h), and will restrict safe ...
    Greater AucklandBy Greater Auckland
    4 days ago
  • American Boy
    Take me on a trip, I'd like to go some dayTake me to New York, I'd love to see LAI really want to come kick it with youYou'll be my American boy…Love letters straight from the heart. Hmm, I think that’s a different tune, but that’s where we’ll begin. With ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Bernard's Pick 'n' Mix for Wednesday, July 10
    Photo by Jannis Brandt on UnsplashTL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 7:00 am are:Investigation: Benefitting from the misery of others. Over 40% of emergency housing funding went to a concentrated group ...
    The KakaBy Bernard Hickey
    4 days ago
  • The Kākā’s Journal of Record for Wednesday, July 10
    Photo by Mr Cup / Fabien Barral on UnsplashTL;DR: The top six announcements, reports and research around housing, climate and poverty in Aotearoa’s political economy in the day to 6:30 am on Wednesday, July 10 are:Climate: Minister for Transport Simeon Brown announced changes to the Clean Car Importer Standard that ...
    The KakaBy Bernard Hickey
    4 days ago
  • How rural families are saving thousands with electric vehicles
    This is a re-post from Yale Climate Connections by Daisy Simmons (Photo credit: Automotive Rhythms / CC BY-NC 2.0) Some people thought Juliana Dockery and her husband Sean were being impractical when they bought an electric vehicle in 2022. Why? Like one in five Americans, they live in a rural area ...
    4 days ago
  • Love to complete it all
    Photo credit: Rob DickinsonThis is my wish for you: Comfort on difficult days, smiles when sadness intrudes, rainbows to follow the clouds, laughter to kiss your lips, sunsets to warm your heart, hugs when spirits sag, beauty for your eyes to see, friendships to brighten your being, faith so that ...
    Mountain TuiBy Mountain Tui
    5 days ago
  • Climate Change: What’s left of the Emissions Reduction Plan?
    In 2019, Parliament, in a supposed bipartisan consensus, passed the Zero Carbon Act. The Act established long-term emissions reduction targets, and a cycle of five-yearly budgets and emissions reduction plans to meet them, with monitoring by the independent Climate Change Commission. In theory this was meant to ensure that the ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • The President They Have Got.
    “This cannot be real life!” Confronted with the choice of recommitting themselves to the myth of Joe Biden, or believing the evidence of their own eyes, those Americans not already committed to Donald Trump will reach out instinctively for the President they wish they had – blind to the President they ...
    5 days ago
  • Has Progressivism Peaked?
    Let’s Go Crazy! AOC (Alexandria Ocasio-Cortez) rarks-up the voters of New York’s 16th Congressional District.HAVE WE MOVED past peak progressivism? Across the planet, there are signs that the surge of support for left-wing causes and personalities, exemplified by the election of the democratic socialist Alexandria Ocasio Cortez (AOC) to the US House ...
    5 days ago
  • The Kākā’s Dawn Chorus for July 9
    TL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy in the last day are:Labour may be looking at signing up for an Irish style 33% inheritance tax instead of or as well as a capital gains tax;Sam Stubbs has proposed the Government sell ...
    The KakaBy Bernard Hickey
    5 days ago
  • Mr Luxon goes to Washington.
    Once fastened servile now your getting sharpMoving oh so swiftly with such disarmI pulled the covers over him shoulda' pulled the alarmTurned to my nemesis a fool no fucking godTuesday morning usually provides something to write about with a regular round of interviews for the Prime Minister across Newshub, TVNZ, ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Kiwirail at Councils Transport & Infrastructure Committee
    Last week at the Council’s Transport and Infrastructure Committee, Kiwirail gave an update about the state of the network and the work they’re doing to get it ready for the opening of the City Rail Link. There were a few aspects that stood out to me so I’ve pulled them ...
    Greater AucklandBy Greater Auckland
    5 days ago
  • Bernard's Pick 'n' Mix for Tuesday, July 9
    Photo by City Church Christchurch on UnsplashTL;DR: The top six links elsewhere I’ve spotted around housing, climate and poverty in Aotearoa’s political economy in the last day to 8:00 am are:Scoop: Waipareira Trust political donations probe referred to Charities Registration Board NZ Herald-$$$’s Matt NippertScoop: Migrant whistleblowers speak out after ...
    The KakaBy Bernard Hickey
    5 days ago
  • What’s next after Supreme Court curbs regulatory power: More focus on laws’ wording, less on the...
    This article by Robin Kundis Craig, Professor of Law, University of Kansas is republished from The Conversation under a Creative Commons license. Read the original article. Federal Chevron deference is dead. On June 28, 2024, in a 6-3 vote, the Supreme Court overturned the 40-year-old legal tenet that when a federal ...
    5 days ago
  • The folly of retreat in the face of defeat
    Note: This is a long readPolitical discourse on social media taught me that bad faith operators and tactics are not only prevalent, they are widespread and effective.Thanks for reading Mountain Tui! Subscribe for free to receive new posts and support my work.Their objectives are much narrower than one might imagine.The ...
    Mountain TuiBy Mountain Tui
    5 days ago
  • The Parent Zone
    Hi,I am about to wing my way back to New Zealand for the Webworm popup this Saturday in Auckland — can’t wait to see some of you there! In the meantime, I highly recommend the latest pet thread over on the Webworm app. All I’ll say is that readers here ...
    David FarrierBy David Farrier
    5 days ago
  • Tuesday: The Kākā’s Journal of Record for July 9
    Photo by Alex Zaj on UnsplashTL;DR: The top six announcements, speeches, news conferences reports and research around housing, climate and poverty in Aotearoa’s political economy in the day to 6:00 am on Tuesday, July 9 are:Politics: Full news conference: 'Please resign', Chloe Swarbrick tells Darleen Tana RNZ VideoPaper: Increasing speed ...
    The KakaBy Bernard Hickey
    5 days ago
  • Breaking up is so hard to do
    The fundamental weakness of the waka jumping legislation is once again on display, as the Greens seem reluctant to trigger it to remove Darleen Tana from Parliament altogether. Tana has been suspended from the Greens Caucus while it had barrister Rachel Burt investigate allegations that she had been involved in ...
    PolitikBy Richard Harman
    6 days ago
  • Gordon Campbell on the privatising of state housing provision, by stealth
    Kāinga Ora’s “independent review” was carried out by the same National Party leader whose own administration’s inadequate housing build – and selling of state houses- had caused Kāinga Ora to embark on its crash building programme in the first place. To use a rugby analogy, this situation is exactly like ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • “Laser focused on the cost of living crisis”
    Cartoonist credit: Christopher Slane ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • Gordon Campbell on the elections in France, Iran and Britain
    As Werewolf predicted a week ago, it was premature to call Emmanuel Macron’s snap election call “a bitter failure” and “a humiliating defeat” purely on the basis of the first round results. In fact, it is the far-right that has suffered a crushing defeat. It has come in third in ...
    WerewolfBy lyndon
    6 days ago
  • The UK needs proportional representation
    Like a lot of people, I spent Friday watching the UK election. There's the obvious joy at seeing the end of 14 years of Tory chaos, but at the same time the new government does not greatly enthuse me. In order to win over the establishment, Starmer has moved UK ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Bernard's Chorus for Monday, July 8
    TL;DR: Thanks for the break, and now I’m back. These are the top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy in the last day or so:Chris Bishop’s pledge to ‘flood the market’ with land to build new houses both out and up remains dependent ...
    The KakaBy Bernard Hickey
    6 days ago
  • French Left Wins Big
    Usually I start with some lyrics from the song at the end of the newsletter, to set the mood. But today I’m going to begin with a bit of a plea. About six weeks ago I decided to make more of my writing public with the hope that people would ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • Satire: It's great our Prime Minister is so on the ball
    ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • This is the real reason David Seymour needs to reinterpret the Treaty of Waitangi
    This is republished from an earlier write upDavid Seymour is part of the ACT Party. He's backed by people like Alan Gibbs, and Koch money. He grew up as a right wing lobbyist - tick tick tick. All cool and fine - we know.What's also been clear is a fervent ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • Going for Housing Growth: Filling the housing donut?
    Hot take: it should be affordable to live in Auckland. You may not be surprised to learn I’m not the only one with this hot take. Indeed, the Minister of Housing recently took the notable step of saying house prices should come down, something common wisdom says should be a politically ...
    Greater AucklandBy Scott Caldwell
    6 days ago
  • Bernard's Pick 'n' Mix for Monday July 9
    TL;DR: As of 6:00 am on Monday, July 9, the top six links elsewhere I’ve spotted around housing, climate and poverty in Aotearoa’s political economy in the last day or so are:Scoop: Probation officer sacked for snooping is linked to alleged spy Jian Yang. Corrections dismissed Xu Shan over his ...
    The KakaBy Bernard Hickey
    6 days ago
  • What has the Government done for you so far?
    List effective 1 July 2024Consumer and household (note: road and car costs are under infrastructure)Cancelled half-price public transport fares for under-25s and free fares for under-13s funding, scrapping the Labour government-era subsidies. The change will not affect pre-existing discounts funded directly by councils.Cut funding for free budgeting services. One third of the ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • The Kākā’s Journal of Record for Monday, July 8
    Photo by Amador Loureiro on UnsplashTL;DR: As of 6:00 am on Monday, July 8, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last three days were:Local Government Minister Simeon Brown announced the Coalition Government would not be responding to ...
    The KakaBy Bernard Hickey
    6 days ago
  • The Kākā’s diary for the week to July 15 and beyond
    TL;DR: The six key events to watch in Aotearoa-NZ’s political economy in the week to July 15 include:PM Christopher Luxon is travelling to Washington this week to attend a NATO meeting running from Tuesday to Thursday. Parliament is not sitting this week.The RBNZ is expected to hold the OCR on ...
    The KakaBy Bernard Hickey
    6 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #27
    A listing of 31 news and opinion articles we found interesting and shared on social media during the past week: Sun, June 30, 2024 thru Sat, July 6, 2024. Story of the week Our Story of the Week is brought to us by Dr. Ella Gilbert, a researcher with the British ...
    7 days ago
  • The Great Splintering: Thoughts on the British Election
    I can remember 1997. Even living on the other side of the world, having a Scottish father and Welsh grandfather meant I acquired a childhood knowledge of British politics via family connections (and general geekery). And yes, I inherited the dark legends of that evil folk-devil, Margaret Thatcher. So when ...
    7 days ago
  • 2% royalties for mining? Deal!
    Snapshot postToday, Shane Jones was courageous enough to front Q&A with Jack Tame. Thanks for reading Mountain Tui ! Subscribe for free to receive new posts and support my work.Jack Tame is a bit of a legend. And that’s only because he strikes me as a good journalist i.e. well ...
    Mountain TuiBy Mountain Tui
    7 days ago

  • Prime Minister wraps up US visit in California
    Prime Minister Christopher Luxon has finished a successful four-day visit to the United States with meetings in California on his final day focusing on innovation and investment.  “It has been fantastic to be in San Francisco today seeing first-hand the deepening links between New Zealand and California. “New Zealand company, EV Maritime, ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Prime Minister leads Indo-Pacific Four at NATO
    Prime Minister Christopher Luxon today chaired a meeting of the Indo-Pacific Four (IP4) countries – Australia, Japan, the Republic of Korea and New Zealand. The IP4 met in the context of NATO’s Summit in Washington DC hosted by President Biden. “Prosperity is only possible with security,” Mr Luxon says. “We need ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • District Court judges appointed
    Attorney-General Hon Judith Collins today announced the appointment of three new District Court Judges.   The appointees, who will take up their roles in July and August at the Manukau, Rotorua and Invercargill courts, are:   Matthew Nathan Judge Nathan was admitted to bar in New Zealand in 2021, having previously been ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Urgent review into Wairoa flood response begins
    Environment Minister, Penny Simmonds today announced the terms of reference for a rapid review into the Wairoa flood response. “The Wairoa community has raised significant concerns about the management of the Wairoa River bar and the impact this had on flooding of properties in the district,” says Ms Simmonds. “The Government ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • NZDF’s Red Sea deployment extended
    New Zealand has extended its contribution to the US-led coalition working to uphold maritime security in the Red Sea, Defence Minister Judith Collins and Foreign Minister Winston Peters announced today. “The decision to extend this deployment is reflective of the continued need to partner and act in line with New ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government provides support to tackle tax debt and compliance
    New compliance funding in Budget 2024 will ensure Inland Revenue is better equipped to catch individuals who are evading their tax obligations, Revenue Minister Simon Watts says. “New Zealand’s tax debt had risen to almost $7.4 billion by the end of May, an increase of more than 50 per cent since 2022. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Taking action to reduce road cones
    The Coalition Government is taking action to reduce expenditure on road cones and temporary traffic management (TTM) while maintaining the safety of workers and road users, Transport Minister Simeon Brown says.  Rolling out a new risk-based approach to TTM that will reduce the number of road cones on our roads.  ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Celebrating 100 years of progress
    Te Arawa Lakes Trust centenary celebrations mark a significant milestone for all the important work done for the lakes, the iwi and for the Bay of Plenty region, says Māori Crown Relations: Te Arawhiti and Māori Development Minister Tama Potaka. The minister spoke at a commemorative event acknowledging 100 years ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Foreign Minister to travel to Korea and Japan
    Foreign Minister Winston Peters will travel to the Republic of Korea and Japan next week.    “New Zealand enjoys warm and enduring relationships with both Korea and Japan. Our relationships with these crucial partners is important for New Zealand’s ongoing prosperity and security,” says Mr Peters.    While in the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Huge opportunity for educators and students as charter school applications open
    Associate Education Minister David Seymour says today is another important step towards establishing charter schools, with the application process officially opening.  “There has already been significant interest from groups and individuals interested in opening new charter schools or converting existing state schools to charter schools,” says Mr Seymour. “There is ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Decreasing gas reserves data highlights need to reverse oil and gas exploration ban
    MBIE’s annual Petroleum Reserves report detailing a 20 per cent reduction in New Zealand’s natural gas reserves shows the need to reverse the oil and gas exploration ban, Energy Minister Simeon Brown says.“Figures released by MBIE show that there has been a 20 per cent reduction in New Zealand’s natural ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Providers of military assistance to Russia targeted in new sanctions
    Foreign Minister Winston Peters has announced further sanctions as part of the Government’s ongoing response to Russia’s illegal invasion of Ukraine.    “Russia’s continued illegal war of aggression against Ukraine is a direct and shocking assault on the rules-based order. Our latest round of sanctions targets Russians involved in that ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • OECD report shows New Zealand is a red tape state
    Minister for Regulation David Seymour says that the OECD Product Market Regulation Indicators (PMRI) released this morning shows why New Zealanders sorely need regulatory reform. “This shocker result should end any and all doubt that the Government must go to war on red tape and regulation,” says Mr Seymour.  “The ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government unveils five-point climate strategy
    The coalition Government is proud to announce the launch of its Climate Strategy, a comprehensive and ambitious plan aimed at reducing the impacts of climate change and preparing for its future effects, Climate Change Minister Simon Watts says. “The Strategy is built on five core pillars and underscores the Government’s ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • National Bowel Screening Programme reaches 2 million life-saving screening kits
    The National Bowel Screening Programme has reached a significant milestone, with two million home bowel screening kits distributed across the country, Health Minister Dr Shane Reti announced today.   “This programme, which began in 2017, has detected 2,495 cancers as of June 2024. A third of these were at an early ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Granny flats popular with all ages
    More than 1,300 people have submitted on the recent proposal to make it easier to build granny flats, RMA Reform Minister Chris Bishop and Building and Construction Minister Chris Penk say. “The strong response shows how popular the proposal is and how hungry the public is for common sense changes to make ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • $25 million boost for conservation
    Toitū te taiao – our environment endures!  New Zealanders will get to enjoy more of our country’s natural beauty including at Cathedral Cove – Mautohe thanks to a $25 million boost for conservation, Conservation Minister Tama Potaka announced today.  “Te taiao (our environment) is critical for the country’s present and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Zealand increases support for Ukraine
    Prime Minister Christopher Luxon and Foreign Minister Winston Peters have announced a further $16 million of support for Ukraine, as it defends itself against Russia’s illegal invasion. The announcement of further support for Ukraine comes as Prime Minister Luxon attends the NATO Leaders’ Summit in Washington DC. “New Zealand will provide an additional ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Country Kindy to remain open
    Associate Education Minister David Seymour says that Country Kindy in Manawatu will be able to remain open, after being granted a stay from the Ministry of Education for 12 weeks. “When I heard of the decision made last week to shut down Country Kindy I was immediately concerned and asked ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government lifts Indonesian trade cooperation
    New export arrangements signed today by New Zealand and Indonesia will boost two-way trade, Trade and Agriculture Minister Todd McClay says. Mr McClay and Dr Sahat Manaor Panggabean, Chairman of the Indonesia Quarantine Authority (IQA), signed an updated cooperation arrangement between New Zealand and Indonesia in Auckland today. “The cooperation arrangement paves the way for New Zealand and Indonesia to boost our $3 billion two-way trade and further ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Carbon capture framework to reduce emissions
    A Carbon Capture, Utilisation and Storage (CCUS) framework has been released by the Coalition Government for consultation, providing an opportunity for industry to reduce net CO2 emissions from gas use and production, Energy Minister Simeon Brown says. “Our Government is committed to reducing red tape and removing barriers to drive investment ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Faster consenting with remote inspections
    The Government is progressing a requirement for building consent authorities to use remote inspections as the default approach so building a home is easier and cheaper, Building and Construction Minister Chris Penk says. “Building anything in New Zealand is too expensive and takes too long. Building costs have increased by ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Revision programme presented to Parliament
    A new revision programme enabling the Government to continue the progressive revision of Acts in New Zealand has been presented to Parliament, Attorney-General Judith Collins announced today. “Revision targets our older and outdated or much-amended Acts to make them more accessible and readable without changing their substance,” Ms Collins says. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government aligns Clean Car Importer Standard with Australia to reduce vehicle prices for Kiwis
    The Government will be aligning the Clean Car Importer Standard with Australia in order to provide the vehicle import market with certainty and ease cost of living pressures on Kiwis the next time they need to purchase a vehicle, Transport Minister Simeon Brown says.“The Government supports the Clean Car Importer ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • NZQA Board appointments
    Education Minister Erica Stanford has today announced three appointments to the New Zealand Qualifications Authority (NZQA). Kevin Jenkins has been appointed as the new Chair of the NZQA Board while Bill Moran MNZM has been appointed as the Deputy Chair, replacing Pania Gray who remains on the Board as a ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • More support for Wairoa clean-up
    A further $3 million of funding to Wairoa will allow Wairoa District Council to get on with cleaning up household waste and sediment left by last week’s flooding, Emergency Management and Recovery Minister Mark Mitchell says.  In Budget 24 the Government provided $10 million to the Hawke’s Bay Region to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister thanks outgoing Secretary for Education
    Education Minister Erica Stanford has today thanked the outgoing Secretary for Education. Iona Holsted was appointed in 2016 and has spent eight years in the role after being reappointed in May 2021. Her term comes to an end later this year.  “I acknowledge Iona’s distinguished public service to New Zealand ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister concludes local government review
    Local Government Minister Simeon Brown has concluded the Future for Local Government Review and confirmed that the Coalition Government will not be responding to the review’s recommendations.“The previous government initiated the review because its Three Waters and resource management reforms would have stripped local government of responsibility for water assets ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Consultation begins on new cancer medicines
    Associate Health Minister for Pharmac David Seymour says today’s announcement that Pharmac is opening consultation on new cancer medicines is great news for Kiwi cancer patients and their families. “As a result of the coalition Government’s $604 million funding boost, consultation is able to start today for the first two ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 50 years on, Niue and NZ look to the future
    A half-century after pursuing self-government, Niue can count on New Zealand’s steadfast partnership and support, Deputy Prime Minister Winston Peters says. “New Zealand and Niue share a unique bond, forged over 50 years of free association,” Mr Peters says. “We are looking forward to working together to continue advancing Niue’s ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Upgrading system resulting in faster passport processing
    Acting Internal Affairs Minister David Seymour says wait times for passports are reducing, as the Department of Internal Affairs (the Department) reports the highest ever monthly figure for digital uptake in passport applications.  “As of Friday 5 July, the passport application queue has reduced by 34.4 per cent - a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Roads of National Significance moving at pace
    Transport Minister Simeon Brown has welcomed news that the NZ Transport Agency (NZTA) is getting on with the Government’s first seven Roads of National Significance (RoNS) projects expected to begin procurement, enabling works and construction in the next three years.   “Delivering on commitments in our coalition agreements, we are moving ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New school for Flat Bush
    The Coalition Government is building for roll growth and easing pressure in Auckland’s school system, by committing to the construction of a new primary school, Education Minister Erica Stanford says. As part of Budget 24’s $456 million injection into school property growth, a new primary school (years 1-6) will be ...
    BeehiveBy beehive.govt.nz
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  • Dr Shane Reti's speech to Iwi-Maori Partnership Boards, Rotorua
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