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Pre-budget roundup

Written By: - Date published: 7:03 am, May 19th, 2011 - 25 comments
Categories: bill english, budget 2011, economy - Tags: ,

So, today is Budget day. The big stuff has all been pretty well signposted, tinkering with KiwiSaver, Working for Families, and student loan eligibility. The devil will be in the details of all the cuts that get made to try and limit the damage in health and education.

I was going to do a roundup of the best pre-budget punditry, but I find there isn’t much need to go beyond two excellent pieces by Gordon Campbell and Tim Watkin. Gordon Campbell writes:

On the lead-up to the Budget

Throughout his government’s first term, the role of Prime Minister John Key has been to be the bringer of good news, the guy who carries the ‘times are tough but the future is rosy’ message – while Finance Minister Bill English has been the bad news bearer, underlining the need to tighten our belts, for eternity.

Hopefully, both of them remember the last time that National launched an austerity Budget, and Ruth Richardson sent the economy into a near-death spiral. Evidently, Don Brash retains no memory of seeing “The Mother of All Budgets” before, and he’d like to play it again and see how it ends.

The Key vs English contrary impulses are set to collide on Thursday when the bad times are to be painted as being so dire as to justify cutbacks in some big ticket public schemes (Kiwisaver, Working for Families) and require further job losses among public servants – but without snuffing out the recovery that Key keeps telling us is just around the bend and beyond the hill once the combo of high commodity prices, Rugby World Cup spending and insurance money for the Christchurch rebuild begins to work its magic.

Interesting that none of the elements of the magic combo are any of National’s doing.

Key is used to decking the same objects in wildly different garb, depending on context. Routinely, the level of government debt is touted in overseas contexts by Key as one of the jewels in the crown of the New Zealand economy at only 34% of GDP while – domestically – the same figure is portrayed as a scandal that needs be pared back below 30% as soon as possible.

In essence, Thursday’s Budget will be a collision between ideology – its always a good time to shrink central government and try to drown it in the bath – and a reality that doesn’t square convincingly with the austerity message. …

On one level the changes [to KiwiSaver] are likely to entail a 180 degree reversal of the cuts to employer contributions that the same government recently introduced. How can this zigzag possibly be rationalised? Simultaneously, Key hinted at this week’s press conference that employers may be able to treat Kiwisaver contributions as being at least partially in lieu of wage increases to employees. In other words, the changes are shuffling the shells under which the government is hiding a shrinking number of beans.

And from Tim Watkin:

It’s the end of the world, and I feel fine

So, in two days time Bill English will announce that we have the largest deficit EVER by a New Zealand government. All round the world folk have seen stories of how our deficit will be $15-17 billion. Cue wailing and gnashing of teeth.

Certainly, no-one will want to sit back and admire such a deficit. Both National and Labour are inclined to lead the breast-beating, for opposite political reasons. National wants to justify cuts to government spending, Labour wants to damn the government for its economic mismanagement.

So the message has been that our economy is in dire straits and drastic action (cuts or a change of government, depending on who’s spinning) is required.

But is it really that bad? We’ve got our biggest population ever and we’ve just been through – or we’re arguably still at the tail end of – one of the largest economic crises the world has known. So you’d expect the government to have spent more. …

Thing is, we’re not. Like Greece, that is. The government debt has never been a problem; indeed it hit historic lows under Michael Cullen. We bottomed out in 2008 with a public debt that was just 20% of GDP. (There are several sources for this, each slightly different. But here are the OECD figures as one example).

Watkin then looks at historical government debt, finding it as high as 248% of GDP in 1933, and remaining up to 95% as late as 1951.

So yes, it [debt] has climbed again. But that borrowing has kept the economy ticking over, which is what a responsible government with a low debt should do in tough times. It has stimulated a flat economy and carried the private sector. …

As I’ve written before, much of the supposed National-led government stimulus was in fact started under Labour; that which wasn’t was essentially some roads and the extra tax cuts. And those tax cuts were just about the most scatter-gun, favour-the-rich form of stimulus any government could have chosen.

My worry now is that the government seems to be signalling that its stimulus days are over. John Key’s pre-Budget speech left the impression that the government’s heavy lifting is done and it now reckons it’s time to stop spending and let the private sector take over. The PM repeatedly mocked Cullen’s stewardship during the 2000s and praised the growth and economic management of the 1990s.

We can all remember the unemployment, wage stagnation and cuts to public services that passed for “growth” in the ’90s, not to mention the lack of savings and higher public debt. And I’m not yet convinced that the economy is healthy enough to take the strain. It seems risky to me to whip the crutches away so soon. …

I think Watkin is giving the Nats a bit too much credit. How much has tax cuts to the rich really “stimulated” the economy? The money could have been much better spent.

Anyway, in a few hours, Bill English gets to deliver his third budget. Let’s hope, for the good of the country, that it is his last!

25 comments on “Pre-budget roundup”

  1. joe bloggs 1

    You’re way behind the times R0B.

    David Cunliffe’s already polled the electorate on how the budget has affected them, and a resounding 88% of voters pointed out the budget left them better off.

    • Can't fool me 1.1

      Bah! That poll was hijacked by the douchebags from Kiwiblog.

      • joe bloggs 1.1.1

        Clearly the right have far more douchebags than the left – that’s consistent with the political pollsters who have National streets ahead of Labour, but a rather unkind way to refer to the majority of the electorate…

        The raving lefty fan club that frequents this site had every opportunity to load the worse off vote to counteract the effects of the Penguin’s voters. Or don’t you have enough supporters to rally?

        As for Labour lame explanation – it was a computer glitch???!!! Oh spare us the agony of such a pathetic excuse!

    • Colonial Viper 1.2

      and a resounding 88% of voters pointed out the budget left them better off.

      That is clearly a poll of the rich Chinese vote, who indeed have been left better off by the NAT budget.

      • Jim Nald 1.2.1

        Better off at the expense of their children and grandchildren.
        Oh, and at this rate under Nats, there’s no future in NZ.
        They had better be putting aside money now –
        to spend on flying to Oz to visit their children and baby-sit their grandchildren there.

        • Colonial Viper 1.2.1.1

          I think the older generation who can will also consider moving to Australia – not just because the next generation has already gone there, but because they can afford decent public healthcare over there and decently paid professional clinicians. Have already been reading cases of that.

          And why would our future talented young study in NZ if student loans are not interest free any more? Might as well go study at an Australian university for the same rates as an Australian local, and enjoy a wider range of more specialised courses, better teaching facilities and better technology.

          NZ = Mexico of the South Pacific. Working hard on pushing New Zealanders across the ditch.

  2. PeteG 2

    How much has tax cuts to the rich really “stimulated” the economy?

    How much has tax cuts prevented a worse recession?
    How much of the tax cuts have gone towards reducing private debt?

    • RobC 2.1

      Back to the old tricks of answering a question with more questions, the first being a hypothetical one at that, one that cannot be answered.

      What was it again? Oh that’s right, pissing in the wind. 😀

      • PeteG 2.1.1

        Just responding to your old trick, making a claim that no one knows the answer to.

        Labour legs must be getting very wet.

    • Colonial Viper 2.2

      You’re absolutely right of course, more tax cuts means more borrowing from China. More borrowing from China means that we have to pay the Chinese more and more of an income stream of interest payments, which helps their economy.

      So our tax cuts, helps prevent the Chinese economy going into recession, because we get to send more ad more money over to them.

      You’re so fucking smart.

      How much of the tax cuts have gone towards reducing private debt?

      That’s handy. The rich pricks who got the most from the tax cuts, get to pay off their million dollar mansions even faster by pushing through cuts to public services.

      You really are a genius, chump.

      • joe bloggs 2.2.1

        I take my hat off to you CV – you really have mastered the politics of envy!

    • ZeeBop 2.3

      >How much has tax cuts to the rich really “stimulated” the economy?

      How much has tax cuts prevented a worse recession?
      How much of the tax cuts have gone towards reducing private debt?

      Farmers, NZ, sells lots of primary product overseas. Milk, logs, etc.
      Those profits need to be returned, remitted, and so there must be
      someone on the other side of that currency trade.

      Step in the debtors, the debtor borrows money at a higher rate
      (the risk premium) and pays in NZ dollars. So in walks the
      currency trader who takes those NZ dollars and gives them to
      farmers, exporters. And in the foreign country takes the
      farming profits in US$ and gives it to the lender as his interest.

      The tax cuts had very little, or negative effect, for most people in NZ.
      They went overwhelmingly to the top earners and will be paid for by
      service cuts to most people in NZ if National is returned in Nov.

      Now the problem. Globally the west has borrowed because of monetary
      reform of Conservatives parties, who saw decades of cheap oil and
      knew the economy would have to grow and so needed lubricating
      (easier credit). But Conservatives then told themselves not to look
      at what comes next (except to there most loyal richest contributors).
      Oil peaking and then trailing off.

      So basically the west has huge debts, and governments claiming they
      can export their way out of the crisis. And the east has huge calls on
      value that they don’t want to give up (become poorer again), that
      would harm their own exports if they started importing western goods,
      and now the icing on the cake, there isn’t enough resources globally
      to furnish their call on value if they did call it. And hell, the west can
      pay it back anyway. (well unless it paid back in some services rather
      than goods and why its astonishing how governments are letting a
      few media mogals hold back the media revolution, utube on steroids,
      broadband, tens of thousands of channels, massive decentralization
      of attention to a myriad of sources).

      So that’s the NZ economy, and the global crisis. So now to answer
      the questions. Did tax cut avert recession? No, spending rising
      would have temporarily helped relieved the recession. Tax cuts merely
      gave foreign banks more breathing room, and forced kiwis to
      cut back and start saving if they could, extending the recession
      (National figured kiwis would not change their habits and start
      saving or cutting back).

      Tax cuts merely extended the time that private debt could be rolled
      over. Eventually the snake in the global fiscal imbalance has to be
      faced. NZ could be hit hard when energy inputs to farming become
      prohibitively expensive, exposed as it is to the global market and
      ease to which foreign domiciled can own NZ, without a National
      concern to the future freedom, economic and social of kiwis.

      Independence.

      A CGT would mean kiwis would expand the home economy,
      draw back expats, and start a massive revival in NZ, as capital
      gain would be harder won and so worth holding on to rather
      than selling to the world cheap.

      Oh, and National suk.

  3. Herodotus 3

    “… All round the world folk have seen stories of how our deficit will be $15-17 billion…”
    I am still confused. We borrow $300m lately increased to $380m/week. Now about 1/2 is to cover refinancing (as stated o a few posts here). So then we are just extending/rolling over our debt profile, the remaining $130m/week is to cover cash deficiencies. Now $130*52 = about $8b. I am aware of increases/decreases of investments (I take giving world wide markets these to be gains) So where is this other $8b being sourced from?

    • Colonial Viper 3.1

      You can’t be expecting NAT numbers to make sense here, when their main goal is to manufacture a crisis to justify their enriching of the already wealthy.

    • RobC 3.2

      Herodotus, my understanding is the operating deficit is in the order of $16 billion.

      However, the Govt also has investments/assets. I believe (mainly thanks to the Cullen fund) the actual red ink is somewhere around $10 billion for the year.

      • Herodotus 3.2.1

        From my rough numbers I get about a $10b cash deficit which should be reduced by gains of investments NZSF Cullen etc. There is additional refinancing as EQC has to withdraw monies lent to govt and the govt has to go offshore to replace this. So as you and I have a similar viewpoint where is the other $6-$8b gone? This is not Africa,the Americas or the Middle East where monies get depositied into Switzerland ;-).
        So again if we have a deficit of $15b and we are borrowing $8b to cover the cash issues where are the missing monies??????

        • Herodotus 3.2.1.1

          This link has helped solve part of my problem, but why has the $6b Chch EQ in the accounts, from what I am aware the only cost nationally has been EQC payouts to the 1st quake, and I am 100% positive that $6b has not been paid out, so in that case we could have in the future operating surpluses but still requiring to borrow as we fund the Chch rebuild. That wuld be a great headline. Surplus but borrowings increase.
          Nice to see something easily understood and conveying a message simlpy. Well done David 🙂
          http://blog.labour.org.nz/index.php/2011/05/19/budget-faq-6-why-the-debt-hole/comment-page-1/#comment-177387

  4. hobbit 4

    “How much has tax cuts to the rich really “stimulated” the economy? The money could have been much better spent.”

    It’s. Not. Your. Money.

    • Colonial Viper 4.1

      That’s correct. It’s not your money. It’s. Our. Money. Money which belongs to the public, to the common wealth of New Zealanders. By stealing it, you are stealing from all of us, and from the country.

      • Jim Nald 4.1.1

        And our future generations.
        The ones who are left here and not already in Oz or another country.

    • south paw 4.2

      How ironic hobbit’s statement is when you consider rich pricks like Eric Watson, Mark Hotchin and the others whose self enriching activities don’t end up in the headlines.

      • joe bloggs 4.2.1

        Not forgetting Phil Goff, Cunliffe, Mallard, Hodgson, Dyson, and all the other Labour hacks – all of them leaching decent six figure salaries off the sweat of the workers.

        If your bosses are true ideologues they should take pay cuts and earn $30k a year.

  5. Anthony 5

    Tax cuts could have been stimulatory (to the retail sector anyway) if they went to the part of the population that actually has to spend them. They were upside down.

    National do live in upside down land though.

  6. RobC 6

    Rob, you missed the best line from Campbell’s piece:

    “Treasury forecasts – which have about the same predictive accuracy as your daily horoscope” 😀

  7. randal 7

    dont diss the treasury forecasts. they are made to assist the manques and parvenus extract every last penny they can before they get booted out.

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    Frankly SpeakingBy Frank Macskasy
    6 days ago
  • Life in Lock Down: Day 7
    . . April 1: Day seven of living in lock-down… This morning I had a brief chat with one of my neighbours, “D” (social distance between us, a good three or four metres). I learned he had resigned from his previous job and had been hired by another company – ...
    Frankly SpeakingBy Frank Macskasy
    6 days ago
  • RIP The Listener, New Zealand’s pioneering voice
    Funnily enough, my thought as I start this post is whether it will be well written enough. Or should that be well enough written? Because so much of what I know about good writing came from my two stints at The Listener, which this morning was shut down due to ...
    PunditBy Tim Watkin
    6 days ago
  • OK, Britney: stop sniping at National for doing its job
    With normal democratic procedures in abeyance, there were two ways to go. First, it was open for the government to dissolve itself and invite the National Party to join a ministry of national salvation. That would have lessened the democratic deficit of the times by having a team of rivals without ...
    PunditBy Liam Hehir
    6 days ago
  • Helpful tips for parents during lockdown
    Dr Kirsty Ross Children and young people can respond differently in times of distress. This also varies by age and developmental stage, with younger children having more magical and imaginative thinking, and older children having more awareness and knowledge of the issues our communities are facing (which brings up ...
    SciBlogsBy Guest Author
    6 days ago
  • Skeptical Science New Research for Week #13, 2020
    7 days ago
  • Hungary is now a dictatorship
    Hungary has been a virtual dictatorship for a decade now, as Prime Minister Viktor Orbán has gradually eroded its democracy. But now, its official, with the passage of an indefinite emergency law allowing rule by decree:Hungary’s parliament has passed a new set of coronavirus measures that includes jail terms for ...
    No Right TurnBy Idiot/Savant
    7 days ago
  • A new Ministry of Works
    While the economy is on pause under lockdown, the government is beginning to plan how to cope with the post-lockdown, post-tourism, post-export education world we will eventually find ourselves in. They're planning a lot of infrastructure spending as economic stimulus, and have asked for proposals which can start the moment ...
    No Right TurnBy Idiot/Savant
    7 days ago
  • Capture: Well spaced out
    It's my distraction,  setting up tiny scenes to photograph.  I've got stuck on the Babushka dolls for now.  Something about their bubble shape.  Something about their never changing, smiling features, suggesting persistent equanimity.  Can we get through everything that is being thrown at us and keep at least a tiny ...
    7 days ago
  • Life in Lock Down: Day 6
    . . March 31: Day six of living in lock-down… This time I managed to sleep a little longer and the alarm woke me at the pre-set time: 6.55am. Then remembered I was working a later shift and could’ve slept in. Oh well, there are things to do at home. ...
    Frankly SpeakingBy Frank Macskasy
    7 days ago
  • March ’20 – NZ blogs sitemeter ranking
    Image credit: Diamond Harbour School Blogs I notice a few regulars no longer allow public access to the site counters. This may happen accidentally when the blog format is altered. If your blog is unexpectedly missing or ...
    7 days ago
  • Hard News: Poll Pot and the partisans
    Yesterday's Horizon poll showing support for a "Yes" vote in this year's cannabis referendum sliding into the majority for the first time in a year looked like good news for reformers – and it probably is. But the result warrants some scrutiny.The poll is the fifth in a series commissioned ...
    7 days ago
  • Why those bubbles are so important
    For almost a week now, every one of us who isn’t an essential worker has been confined to their bubble. We are allowed to go shopping for groceries, to visit the doctor, and to get a bit of exercise if we stay local. The reason we are doing this is ...
    SciBlogsBy Siouxsie Wiles
    7 days ago
  • A Government System That Works
    The Covid-19 saga will no doubt produce many twists and turns for us before it is finally brought to an end. But one thing it has shown us – and what comfort it should bring us – is that our country’s government is in good hands. I am not thinking ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • Smashing down the barriers: Where are we at with COVID vaccines?
    In the absence of a vaccine or a cure for a deadly disease, staying home in your bubble is what you do, the concept is not new.  To the best of my knowledge last time we did this in NZ was for polio, in the years before a vaccine came ...
    SciBlogsBy Helen Petousis Harris
    1 week ago
  • National Network on Cuba (USA): “Cuban medical solidarity is a pillar of its society and is founde...
    The following statement was released on March 28 by the National Network on Cuba, a coalition of 40 groups, based in the United States. In recent weeks, Cuba has deployed hundreds of medical providers to over a dozen countries in Europe, Asia, as well as to their neighbors in Latin ...
    RedlineBy Admin
    1 week ago
  • Alarming decrease in calves increases fears for endangered Hector’s dolphin
    This has been a terrible summer for Hector’s dolphins. The first indication was very low numbers of dolphin sightings during late spring and early summer. The Otago University Marine Mammal Research Team has carried out routine dolphin surveys at Banks Peninsula for more than 30 years. In all that time, ...
    SciBlogsBy Otago Marine Science
    1 week ago
  • Time for Grant Robertson to reveal package #2?
    On March 17, Finance Minister Grant Robertson was quick out of the blocks with an economic rescue package to help businesses through the inevitable recession resulting from the coronavirus pandemic. Robertson had pulled together a scheme in short order that so far seems to have saved many jobs. In his ...
    PunditBy Tim Watkin
    1 week ago
  • Saving lives
    The purpose of the lockdown is to save lives, by reducing the spread of covid-19. We won't know if its really working for another week, but given the devastation that will result if it doesn't - 14,000 dead is the optimistic scenario - its definitely worth trying. But pausing the ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Life in Lock Down: Day 5
    . . March 30: Day five of living in lock-down… Woke up still in darkness. Alarm hadn’t gone off. Turn to radio clock; it’s a few minutes after 6am… I lie there in the dark, waiting to drift off to sleep… but it ain’t happening. Clock ticks over to 6.55 ...
    Frankly SpeakingBy Frank Macskasy
    1 week ago
  • Speaker: Les Gray: the man who told the truth
    The story of Les Gray, the public sector psychologist who told the truth about his use of cannabis and set off a storm, has a special place in the lore of cannabis reform in New Zealand.When Paul Shannon interviewed Gray for the 'Dope and Hope' issue of Planet magazine in ...
    1 week ago
  • Why now? Historical specificity and the perfect storm that has created trans identity politics
    by Phil Duncan For Marxists, a key concern about social trends is their context – not just their causes, but why they happen when they do.  Events and phenomena have causes, but they also are time or period-specific. While much of the left have capitulated recently to postmodernism, most notably ...
    RedlineBy Admin
    1 week ago
  • Time for a living wage for supermarket workers
    Since the lockdown began, we've all suddenly been reminded who the actually essential workers in our society are: not the people at the top who pay themselves the big bucks and rort the perks, but the people at the bottom they screw over and squeeze: cleaners, warehouse staff, truck drivers ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Hard News: MUSIC: Lockdown Grooves
    Kia ora! As I've watched nearly all my remaining work vanish over the past couple of days, it has occured to me that one good way to keep me away from arguing with fools on Twitter all the time (in the knowledge that all we're really doing is processing our ...
    1 week ago
  • A place of greater safety?
    Aotearoa New Zealand has committed to trying to extirpate the virus that causes COVID-19 from its shores. To do that, as a society we’ve moved to “Level 4”. That means adapting to unprecedented restrictions on our personal freedoms, particularly to our rights to move freely and associate with friends and ...
    PunditBy Andrew Geddis
    1 week ago
  • The police and public trust
    When the Prime Minister declared a state of emergency last week, she handed the police powers to enforce it. And almost immediately, we started hearing about heavy-handed, arbitrary "enforcement" by police who (at best) cared more about order than law, or (more likely) had no idea what the rules were ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Life in Lock Down: Day 4
    . . Lock Down: Day 4 – A photo essay with observations . March 29: Usual wake up routine as RNZ snaps on my radio-clock. Jim Mora’s voice slowly enters my conciousness; there’s talk of a second wave of covid19 taking hold in South Korea; the week in Parliament – ...
    Frankly SpeakingBy Frank Macskasy
    1 week ago
  • COVID-19 vs New Zealand
    Yesterday, New Zealand recorded its first Covid-19 related death on the West Coast. Unfortunately this is unlikely to be the only fatality, with the virus now being found in every region of the country.However despite the significant danger, people are still unfortunately breaching lockdown rules.There’s really only one main very ...
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming Digest #13
    Story of the Week... Toon of the Week... Coming Soon on SkS... Climate Feedback Claim Review... SkS Week in Review... Poster of the Week... Story of the Week... ‘Misinformation kills’: The link between coronavirus conspiracies and climate denial   Grist / Rob Kim / Stringer / CSA Images  Scientific ...
    1 week ago
  • Rāhui day 4
    The kids did surprisingly well today – meltdown count was about 3, and mostly fairly short ones. (And a fourth while I was writing.) Game-wise I had a go at Fell Seal: Arbiter’s Mark. It’s a fairly standard RPG with turn-based combat and what they call a “mature storyline” (it ...
    The little pakehaBy chrismiller
    1 week ago
  • Letter to a friend
    by Don Franks Hi David, Nice hearing from you, I’m glad to hear you’re getting by okay in these grim times. You asked how’s it going for us back here in New Zealand. You would have heard that the whole country is locked down and with breaks for exercise and ...
    RedlineBy Daphna
    1 week ago
  • Life in Lock Down: Day 3
    . . Lock Down: Day 3 – A photo essay with observations . March 28: First day of the first weekend in Lock Down. It feels like it’s been weeks since only Level 3 was declared last Tuesday, only four days ago. Woke up this morning to RNZ; coffee; toast, ...
    Frankly SpeakingBy Frank Macskasy
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming News Roundup #13
    A chronological listing of news articles linked to on the Skeptical Science Facebook Page during the past week, i.e., Sun, Mar 22, 2020 through Sat, Mar 28, 2020 Articles Linked to on Facebook Sun, Mar 22, 2020 In Just 10 Years, Warming Has Increased the Odds of Disasters by Chelsea Harvey, ...
    1 week ago

  • NZ horticulture sector feeding Kiwis and the world during COVID-19
    More New Zealanders are taking up the chance to work in horticulture as the sector keeps New Zealanders fed and in jobs during the COVID-19 Alert Level 4 lockdown. “Our horticulture sector has long been one of New Zealand’s export star performers, contributing around $6 billion a year to our ...
    BeehiveBy beehive.govt.nz
    3 hours ago
  • Work to repurpose PGF funds begins
    The Provincial Development Unit is working through applications and projects to see where Provincial Growth Fund money can be repurposed for initiatives deemed more critical to fighting the economic impacts of the COVID-19 pandemic, Regional Economic Development Minister Shane Jones says. “We need to be throwing everything we have at ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • A million workers supported by Govt wage subsidy
    The Government’s wage subsidy to protect jobs and keep workers and businesses connected during the lockdown has now supported over a million New Zealanders, with $6.6 billion already paid out. “We’re supporting businesses to pay wages, and stay connected with their workers so that we are all in a better ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Government helps Pacific communities fight COVID
    The Government is stepping up efforts to help protect New Zealand’s Pacific communities in the fight against COVID-19. Cabinet has agreed that $17 million will be allocated to support a COVID-19 Pacific Response Package, which will: Support Pacific health and disability services facing increased demand; Ramp up public health messaging ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Statement from the Prime Minister on Dr David Clark
    “Yesterday evening the Health Minister advised me of his trip to a beach during the lockdown and offered his resignation,” Jacinda Ardern said.  “Under normal conditions I would sack the Minister of Health. What he did was wrong, and there are no excuses.  “But right now, my priority is our ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Statement from David Clark
    Last night as part of my preparation for the Epidemic Response Committee, I provided the Prime Minister with a complete picture of my activity outside my home during Alert Level 4.  That included the fact that on the first weekend of the Alert Level 4 lockdown I drove my family ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • COVID-19 mental health support begins
    A range of support is being rolled out across New Zealand to help people look after their mental health during COVID-19 Health Minister David Clark said this morning. “COVID-19 has brought a lot of uncertainty into our lives and many of us will be feeling some level of distress or ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • New Zealanders in Peru to be assisted by Government charter flight
    The New Zealand Government has made arrangements to charter a flight for New Zealanders stranded in Peru to depart the country, following agreement with the Chilean government to allow the necessary transit through Chile, Foreign Affairs Minister Winston Peters announced today. “Like many travellers around the world at the moment, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • COVID-19 Hospital Preparation Well Advanced
    Hospital preparations for COVID-19 are well advanced says Health Minister David Clark. “Hospitals across New Zealand are repurposing buildings and training staff to get ready for COVID-19 patients. This gives me confidence that we are well prepared for any potential increase in COVID-19 patients needing hospital level care,” said David ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Further measures to support businesses
    The Government will be introducing legislation to make changes to the Companies Act to help companies facing insolvency due to COVID-19 to remain viable and keep New Zealanders in jobs. The temporary changes include: Giving directors of companies facing significant liquidity problems because of COVID-19 a ‘safe harbour’ from insolvency ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Govt’s COVID plan, economic strength recognised
    The Government’s plan to cushion the blow of COVID-19 by supporting incomes, jobs and businesses, and position the economy to recover has been backed by another international report. International credit rating agency Moody’s today reaffirmed its highest Aaa credit rating on New Zealand, saying the economy is expected to remain ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Funding certainty for sports through COVID-19
    National sports organisations have been given certainty of funding to ensure they can remain viable through the COVID-19 pandemic, Sport and Recreation Minister Grant Robertson announced today. “The global spread of COVID-19 has had a significant impact on sport and recreation in New Zealand, including the cancellation or postponement of ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Butchers now allowed to process pork
    Changes have been made to allow butchers to process pork, only for supply to supermarkets or other processors or retailers that are open, Agriculture Minister Damien O’Connor has announced. “We carefully weighed the risk of allowing butchers to open their shops for retail customers, but the risk of spreading COVID-19 ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Essential workers leave scheme established
    Essential workers who take leave from work to comply with public health guidance are being supported with a leave scheme to ensure they will continue to receive income, say the Minister of Workplace Relations and Safety Iain Lees-Galloway and Minister for Social Development, Carmel Sepuloni. A number of essential businesses ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt WhatsApp helps share COVID-19 information
    A Government WhatsApp channel has been launched to help make information more easily accessible and shareable in the fight against COVID-19. Govt.NZ, which is free to use on any mobile device, will carry information and news for the public, businesses, healthcare providers, not for profits and local government. It can ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Managed departure plan for stranded foreign nationals enables safe, orderly exit
    The Government has announced a plan to enable the safe, orderly exit of tens of thousands of stranded foreign nationals from New Zealand during the current COVID-19 Alert Level 4 restrictions, Deputy Prime Minister and Foreign Minister Winston Peters has said. “When we moved into lockdown a week ago, the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government delivers COVID-19 support to GPs and Pharmacies
    Health Minister Dr David Clark says the Government is delivering on its commitment to support general practice doctors and nurses, and pharmacies on the front-line of our fight against COVID-19. "For us to overcome COVID-19, we need community health services such as general practice and community pharmacy to step up ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Susan Thomas the new Chief High Court Judge
    Justice Susan Thomas has been appointed Chief High Court Judge, Attorney-General David Parker announced today.  She replaces Justice Geoffrey Venning who has resigned from the position.   David Parker paid tribute to Justice Venning, who he said had stewarded the High Court very capably over the last five years.   “On behalf ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Business Finance Guarantee – applications open
    Businesses can start applying to their banks for loans under the Business Finance Guarantee Scheme set up to support the New Zealand economy during the COVID-19 pandemic. “We’re moving quickly to protect New Zealand businesses, jobs and the economy during this unprecedented global economic shock,” Finance Minister Grant Robertson said. ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Work starts on ways to fast-track consents to boost recovery from Covid-19 downturn
    Work is underway looking at measures to speed up consents for development and infrastructure projects during the recovery from COVID 19, to provide jobs and stimulate our economy.  Environment Minister David Parker said the COVID-19 pandemic is a serious global crisis that will have a wide ranging and lasting impact ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Advance payments to support contractors
    Advance payments will be made to transport construction industry contractors to retain the workforce and ensure it is ready to quickly gear up to build projects which will be vital to New Zealand’s COVID-19 economic recovery, Transport Minister Phil Twyford announced today. He said keeping the workforce required to build ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government seeks infrastructure projects
    The Government has tasked a group of industry leaders to seek out infrastructure projects that are ready to start as soon as the construction industry returns to normal to reduce the economic impact of the COVID-19 pandemic, Economic Development Minister Phil Twyford and Infrastructure Minister Shane Jones say. The Infrastructure ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Health system scaled up to prepare for COVID-19
    Work to scale up the health system in preparation for COVID-19 was today outlined by Health Minister David Clark, as he reported back to the new Epidemic Response Committee. “We are well placed to contain the spread of COVID-19. We have taken early and decisive action at our borders, and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Essential media COVID-19 guidelines refined
    The Government is refining its COVID-19 essential business guidance to include the distribution of news publications for communities which are hard to reach. The Minister of Broadcasting, Communications and Digital Media, Kris Faafoi, said the move was in recognition of the importance for New Zealanders who might be harder to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supermarkets able to open on Easter Sunday
    The Government is ensuring supermarkets can open on Easter Sunday so we can buy groceries, but stay closed on Good Friday allowing workers to take a break. This provides a balanced approach and ensures we avoid large queues that two days closure may cause. “Supermarkets will be able to open ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand defence personnel conclude mission at Taji
    Following the successful conclusion of the Building Partner Capacity (BPC) mission at Taji, New Zealand defence personnel are returning to New Zealand from Iraq, in accordance with the Cabinet decision made in June 2019, Foreign Affairs Minister Winston Peters and Defence Minister Ron Mark announced today. “New Zealand is very ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • State of National Emergency extended
    The State of National Emergency to help stop the spread of COVID-19 has been extended for a further seven days, Minister of Civil Defence Peeni Henare said. The initial declaration on March 25 lasted seven days and can be extended as many times as necessary. “Since we went into isolation ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Strong Govt books support ‘go hard, go early’ response
    New Zealand’s ability to go hard and go early in the fight against COVID-19 has been underpinned by strong Government finances and the growing economy heading into this global pandemic, Finance Minister Grant Robertson says. The Treasury today released the Crown financial statements for the eight months to the end ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Christchurch Hospital Hagley ICU to open to support COVID-19 response
    Health Minister Dr David Clark says 36 new intensive care beds at Christchurch Hospital’s new Hagley building are being fast tracked so they are available for treatment of COVID-19 patients.   The Ministry of Health is working with contractor CPB and Canterbury DHB to enable access to the hospital’s ICU, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government supports Air NZ freight flights
    The Government has fast-tracked up to $1 million to help Air New Zealand move urgent freight to and from New Zealand, with the first flight to Shanghai leaving tonight, Transport Minister Phil Twyford announced today. Phil Twyford says it’s crucial that trade in vital goods such as medical supplies and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Tariff concessions on COVID-19 related products
    New Zealand will temporarily remove tariffs on all medical and hygiene imports needed for the COVID-19 response. Trade and Export Growth Minister David Parker and Commerce and Consumer Affairs Minister Kris Faafoi said today that the New Zealand Customs Service will apply tariff concessions to all diagnostic reagents and testing ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Clarification of modification to wage subsidy scheme
    Minister of Finance Grant Robertson has clarified that the changes to the wage subsidy scheme announced yesterday mean that employers should be passing on the full subsidy to workers, except in the case where the person’s normal income is less than the level of the subsidy. “We still want employers ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Face masks flowing to DHBs
    Medical face masks from the national reserve supply are now being distributed to District Health Boards, while at the same time local production is being ramped up. Yesterday more than 640,000 masks were sent to DHBS – that is an immediate two week supply, with more to follow in coming ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • COVID-19: Further steps to protect New Zealanders’ jobs
    The Government has made modifications to the wage subsidy scheme to ensure people don’t lose their jobs during the national lockdown. These changes will soften the impact of COVID-19 on workers, families and businesses, and position them to exit the lockdown and look to recovery, Finance Minister Grant Robertson says. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Tax relief for Mycoplasma Bovis farmers
    Farmers whose herds were culled in response to the outbreak of Mycoplasma bovis will be able to minimise the tax treatment of their income in some circumstances. Revenue Minister Stuart Nash says Cabinet has agreed to change the law. It means farmers may be eligible to spread their income over ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • $27 million for NGOs and community groups to continue providing essential services
    A $27 million dollar package, effective immediately, is being provided to social sector services and community groups to ensure they can continue to provide essential support to communities as we stay at home as a nation to stop the spread of COVID-19, Minister for Social Development Carmel Sepuloni announced. “At ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Statement on guilty plea of March 15 terrorist
    “The guilty plea today will provide some relief to the many people whose lives were shattered by what happened on March 15,” Prime Minister Jacinda Ardern said. “These guilty pleas and conviction bring accountability for what happened and also save the families who lost loved ones, those who were injured, ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • COVID-19 updates
    The Prime Minister is holding daily press conferences to update New Zealanders on the Government's response to COVID-19. Links to videos and transcripts of these updates below. These transcripts also include All of Government press conferences led by Director Ministry of Health's Director-General of Health Dr Ashley Bloomfield. 25 March: Live update from the Prime ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Police numbers break through 10,000 mark
    Frontline Police numbers have broken through the 10,000 mark for the first time in history as officers step forward to keep the community safe during the COVID19 lockdown. “Two Police graduations in Auckland and Wellington in the past week have been conducted in unprecedented circumstances,” Police Minister Stuart Nash said. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Urgent tax measures for economic recovery
    Urgent legislation has been passed to support the package of economic and social measures needed to recover from the impact of the coronavirus outbreak. “The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill will cushion New Zealanders from the worst economic impacts of the COVID-19 outbreak,” said Revenue Minister ...
    BeehiveBy beehive.govt.nz
    2 weeks ago