R&D: Our future

Written By: - Date published: 6:27 am, May 25th, 2011 - 86 comments
Categories: business, labour - Tags: , , ,

National are bleating about Labour’s Research & Development tax credit – largely because as they have no economic plan of their own, so they can only talk about other parties’.  It’s a sad sight after 2.5 years of government.

Having worked all my life in the hi-tech productive exporting sector, I believe we need strong investment in R&D if we are to move forward as a country.  Sir Paul Callaghan’s brilliant address shows us that tourism won’t generate the revenue we need to catch Australia’s wealth.  Agriculture is great, but it’s not scalable.  Technology, on the other hand, is our second largest export sector (above meat!), and requires few resources other than brains and entrepreneurship.

In Sir Paul’s talk he mentions that we have 10 hi-tech companies that generate $5bn in revenue for the country – these without us trying.  If we could expand it to 100 companies that successful, we’d close the $45 billion wealth gap with Australia – National’s seemingly forgotten mantra.

So Labour have put out a plan to foster those companies and grow them and our economy.  At $800 million over 5 years, it will require $6.4 billion worth of R&D from the private sector.

But companies will only get it if they actually invest in R&D.  That’s why almost all OECD countries have R&D tax credits – it’s an effective way to get the private sector to invest.  Australia thinks it’s a good scheme – that’s why they’re currently implementing the scheme we had in 2008.  Our Treasury knows it’s a good scheme too – Bill English ignored their advice not to cut it when he came in.

And our businesses know it’s a good scheme.  The likes of Fisher & Paykel are praising it, even if Business NZ head Phil O’Reilly can’t bring himself to back good policy if it comes in Red.

Sir Paul gave a version of his address to the recent Labour Congress, which had a couple of extra slides, making fun of poor old Don Brash.  Don thought we invested well above OECD average in R&D, and concluded that R&D funding was not useful in his 2025 Taskforce report (never lets the facts get in the way of a good story…).  This Herald editorial seems to make the same mistake, complaining that we’ve “encouraged company research and development at public expense for years.”  But we haven’t really made much effort; our investment in R&D both public & private has been anaemic – we rank only above Mexico & Turkey in the OECD for our percentage R&D spend.  That’s right Don, not well above average but 3rd to bottom – and do we really want to be emulating those 2 economies?

China gets how important our hi-tech sector is, and reports on it.  National apparently don’t get it.  Whilst they pick a few winners with their TBG grants, the fact that the rest of the industry get nothing and that National cut $55million from skills training last year and are presiding over a massive skills deficit shows that they aren’t looking after its future.  Tax credits are great for the entrepreneurial start-ups we need (they get them before they make a profit), and the skilled workers in hi-tech will lift wages and help reduce income inequality.

.

Some quick thoughts on paying for it by introducing farmers to the ETS 2 years earlier…  Do you want to pay the tax for their pollution for them?  Everybody else will be paying in 2013, so it’s a question of fairness.  And National’s complaint that it’ll have agriculture in an ETS before anywhere else in the world… that’ll still be true in 2015 under their plan, so they can’t be that worried about it in reality.

And Red Alert pretty comprehensively deal with John Key’s “milk and cheese will be more expensive” lie.

86 comments on “R&D: Our future ”

  1. Putting it as simply as I can – Ben you haven’t got a clue.
    No energy = no technology
    I just hope you have children

    • Colonial Viper 1.1

      Robert you are the fool here. NZ has hydro and coal. We have great potential for wind and tidal generation.

      In the future we may not be able to sustain energy use at 600-700kW/h per household per month.

      But in this country at least, a figure close to that is entirely possible going forwards. Lifestyle adjustments will need to be made and people better get fitter, but it is not all doom and gloom like you suggest.

      By the way, a wooden cart wheel is considered low energy technology.

      • Afewknowthetruth 1.1.1

        Robert is absolutely right.

        Practically all the NZ hydro capacity was utilised decades ago. And if you think using coal is a good idea, you must be completely insane. There is no faster way to wreck the local environment and the global environment than to continue using coal.

        Of course, nothing NZ does will make any difference because the big game is being played out by the US and China, and both of them are committed to getting fossil fuels out of the ground and burnt as quickly as possible.

        So nobody has a future beyond 2030 or so anyway, whether fools try to do R&D in NZ or not. Actually, you’d better make that 2020, since little of the industrial system will be functioning 15 years after peak oil.

        We could prepare for the collapse of industrial civilisation, which is now underway, by implementing policies based on sanity, i.e. protection of what is left of the environment and establishing wide scale local food production.

        Sanity seems to be too hard for most people. They prefer the delusions of techno-fundamentalism -the irrational belief that everything has a highly technical solution.

        . .

        • Draco T Bastard 1.1.1.1

          Practically all the NZ hydro capacity was utilised decades ago.

          And we’ll have the benefits of those forever. We will have energy to power an industrial future. It won’t be as consumptive as today but we will have it.

          There is no faster way to wreck the local environment and the global environment than to continue using coal.

          Coal can be used in ways that don’t involve burning it. We may have to develop some of them but that’s what R&D is for.

          The real issue with Peak Oil isn’t industrialism per se but how much will be left? and how can we transport it? It’s the lack of transport (98% of transport today is powered by oil derived fuel) that’s really going to hit hard.

          We could prepare for the collapse of industrial civilisation, which is now underway, by implementing policies based on sanity, i.e. protection of what is left of the environment and establishing wide scale local food production.

          /agreed

          • PeteG 1.1.1.1.1

            Practically all the NZ hydro capacity was utilised decades ago.

            And we’ll have the benefits of those forever.

            No we won’t. Depends on how fast they fill up.

            Although large concrete gravity dams have a theoretical design life of 80-100 years, the actual lifespan of a dam is determined by the rate at which its reservoir fills with sediment. In severely eroding catchments, millions of cubic metres of sediment can be transported annually. The average lifespan of a large dam in China is 45 years.

            The Roxburgh dam will probably be the first large concrete gravity dam to be decommissioned in New Zealand. The obvious question is, when? In 2007, Contact Energy was granted consents to continue operating its dams on the Clutha River for another 35 years. It seems highly unlikely that the reservoir will remain viable until 2042.

            Lake Dunstan has slowed down the silting of Lake Roxburgh, but it has just moved the problem as is filling up quickly now, the Kawarau arm is noticeably silted already.

            • Draco T Bastard 1.1.1.1.1.1

              Silt can be dredged you idiot.

              • Lanthanide

                Everything I’ve ever seen about the siltation of hydro dams has suggested that it’s irreversible without destroying the dam.

                • Colonial Viper

                  I had thought that dredging of old hydrodams was pretty routine.

                  One example listed here.

                  http://www.anthonybates.co.uk/capital%20dredging/inland.htm

                • Draco T Bastard

                  Got link on that?

                  I certainly can’t think of any reason for it to be impossible. Difficult, yes, but not impossible.

                  • Lanthanide

                    No, no specific links, just everything I ever remember reading about siltation and dams is that it’s often impossible to solve.

                    Interview with this guy provides some background:

                    http://www.hcn.org/issues/43.6/muddy-waters-silt-and-the-slow-demise-of-glen-canyon-dam/siltation-expert-we-need-more-dams

                    He states that lots of dams built in 1960’s and 70’s were ‘designed’ to last 100 years, but he says they can be extended if proper management is done. This is likely the nugget behind the things I’ve read, and Pete’s statement.

                    Also:
                    “A couple of years ago, I did a study of the Tarbela Dam in Pakistan. The reservoir is 100 kilometers long and rapidly silting up. It provides 30 percent of the power and 50 percent of the irrigation water for 160 million people. Flushing is feasible there, but it would take the system out of commission for about three months, and then you need something else to fill in during that time. They don’t have that. In many places around the world, we need more dams. “

                    • Draco T Bastard

                      Both of those indicate that dredging is feasible but expensive. The question we need to ask is if it’s more expensive than decommissioning because it’s one or the other.

          • Robert Atack 1.1.1.1.2

            The NZ grid is 100% dependent on imported ‘wing dings’ such as ummm computers, copper wire and many many items made in factories dependent on coal fired power plants over seas
            The world has been set up like the Soviet Union was, with everyone dependent on each other for that magic stuff called technology, a good example would be a battery for your hybrid car, which travels nearly as far during its manufacture than during its use.
            Most of the power pylons going in and out of Haywards substation and all the way up the line need replacing …. like 20 years ago, they are about to start this project, if they can import the structural steel etc.
            We shouldn’t be so smug about our collective situation, even Japan is borrowing several power turbines from South Korea, as opposed to going down to the local energy shop and buying one off the shelf … this may be an indicator we are also at peak turbine 😉
            What are the logistics of getting a dredge into a dam?

            How about insulin for diabetics? They import that as well, and ‘they’ don’t even know how many weeks worth we have in storage, but what the hell most diabetics are Maori so who cares?

            • Draco T Bastard 1.1.1.1.2.1

              The NZ grid is 100% dependent on imported ‘wing dings’ such as ummm computers,

              Pretty sure it worked before we connected the computers up to it and I’m also pretty sure that, if we needed to, we could make the computers here to (We do, after all, seem to have some leading lights in the industry, Rakon, Tait Electronics). We have copper here as well, not much, but some. Throw in some recycling and we could probably maintain it into the foreseeable future.

              …if they can import the structural steel etc.

              Considering that we make the stuff here why would they be importing it?

              How about insulin for diabetics? They import that as well,

              And that means that we can’t make it here?

              What are the logistics of getting a dredge into a dam?

              I suppose it would be similar to getting the Earnslaw into Lake Wakatipu. The hard part would be deciding what to do with the silt after you’ve dredged it as you can’t put it back in the lake. Although, I’m thinking it would probably be fairly good nutrient source for farms.

              We can shift to being self-sufficient – we have the resources available.

              • McFlock

                The main issue is global warming, not peak oil (although PO is a bad thing). We’ve only been reliant on oil for what – 60 or 70 years? Air travel is an issue, but ships and trains don’t have to rely on oil.
                 
                And as for hydro, R&D might produce more stable and clean fission or even fusion reactors, not to mention alternative fuel sources for lower-efficiency transportation (i.e. cars the holiday highway is being built for).
                 
                Is there a problem? Yes. Will it be solved by the capital elite’s current gouging attitude? No. Should we expect the rapture at 2030? Probably not.

            • Colonial Viper 1.1.1.1.2.2

              The world has been set up like the Soviet Union was

              Well this is untrue for starters.

              When the collapse hit the USSR it was a land full of pretty fit, survival smart people used to adversity.

              Not at all like the automobile reliant fatlands of the US and other western countries.

  2. I completely agree re the need for promoting R&D, but think you guys need to be heading off this stuff from National and affiliated bloggers that says a tax break will only result in accountants getting creative to make non-R&D expenditure eligible for it. Given the almost obsessive unwillingness of NZ’s businesses to invest in R&D, that scenario is all too plausible – it really needs to have Labour address it convincingly.

    • PeteG 2.1

      I agree, in the past R&D credits have been little more than yet another tax “minimisation” loophole. Why would this be any different?

      And would Labour give with one hand and take with the other?
      Would they put company tax back up? They seem to be convinced that companies can “afford” a lot more expenditure.

      Would R&D credits help companies research ways of reducing their number of employees, especially if the minimum wage is bumped up?

      • RedLogix 2.1.1

        Would R&D credits help companies research ways of reducing their number of employees, especially if the minimum wage is bumped up?

        Higher labour costs give employers incentives to find better ways to get more value from them. This is the crucial factor missing in the NZ economy. While we have very high rates of labour force participation (ie lots of us work) and we work very long hours… we don’t create very much value for all this effort.

        If you have to dig a large hole it’s far better to employ one skilled driver at $50 per hour sitting on an expensive hydraulic digger than 20 coolies with spades earning a cup of rice per day. In the first case you might ask what happens to the 19 other people not driving the digger? What happens is that they are then available for other productive work, presumably similarly or more productive.

        This is where NZ is lagging the OECD badly… our labour is still so cheap that employers find it easier to use us like semi-skilled coolies than take the risk of investing in R&D and more productive plant and equipment.

        • PeteG 2.1.1.1

          So higher wage rates will encourage the replacement of cheap labour with machines?

          Those replaced will be available for other work, but other work may not be available.

          • Eddie 2.1.1.1.1

            PeteG, that is literally what the Luddites said. They were textile artisans who opposed mechanical looms, which meant that one person could do the work of many. They just saw the fact that this put lots of artisans out of work.

            But an economy is a dynamic system – higher productivity can destroy jobs but it means there is more free labour for the same amount of output. That allows new enterprises which create new jobs and higher total output, meaning a higher standard of living.

            Honestly, PeteG, this is the story of the industrial revolution and all progress. Do you oppose the assembly line, robot car construction, container shipping, office computers etc etc? All these innovations allow higher productivity and destroyed some jobs in the process but in the end mean more jobs and better pay and more output.

            The Left simply argues that the wage egg comes before the productivity chicken

          • Akldnut 2.1.1.1.2

            So higher wage rates will encourage the replacement of cheap labour with machines?

            So nothing is changing PeteG, this has been happening for decades

            Those replaced will be available for other work, but other work may not be available.

            Too late numbskull – we’re already at that stage

            • PeteG 2.1.1.1.2.1

              I know, and Eddie doesn’t seem to get it – we’re losing most of our coolie jobs to Asia, and if we put our base rates higher that will keep happening.

              If our minimum rates are pushed higher we squeeze out more workers, and there’s more pressure to raise Unemployment and other benefits to go with that, for an increasing number of unemployed.

              Add to that the pushed up pensions for a rapidly growing number of oldies.

              R&D should be trying to figure out how to pay for all of that. It hasn’t managed to keep up in the past.

              • wtl

                We can’t compete with Asia on a low wage basis so there is no point trying. You said yesterday that you weren’t supporting a “low wage low productivity” economy, but that’s exactly what you are suggesting, by saying that we should be competing with Asia on the basis of wage levels.

              • Colonial Viper

                Hey PeteG you are a moron.

                Just look at all the high tech, software and electronics companies based in Australia. They prove everyone of your assumptions wrong. Even with wage rates 40% higher than ours, they continue to prosper and have not been forced to offshore to China.

                You are a backward looking luddite scaremongerer.

                And so are your Money Masters.

                R&D should be trying to figure out how to pay for all of that. It hasn’t managed to keep up in the past.

                Gawd you have no idea how high tech research and development works do you? Obviously not doing an engineering or computer science major, you’re fit to become just another NZ politician.

        • Huginn 2.1.1.2

          Red Logix, you are so right!

          NZ has a serious problem with productivity.

          The R&D credit should be seen as one part of an overall strategy to improve productivity – raising the minimum wage is another.

          What’s missing is a commitment to improve the skills of the 19 other people who don’t get to drive the digger

          . . . oh, and of course a government that has some faith in the people of NZ.

    • lprent 2.2

      Sure it does. But that it is like saying that you should kill off the DPB because a small minority of people abuse it…. Oh wait.. They do say that…

      That is a regulatory function and has been done quite well. But the simple way to remove the game playing is to restrict into companies that either export or who are developing products for export. Quite simply NZ is a puddle of a market. Not one of the companies I have worked in over the last 20 years has gotten more than 10 percent of their revenues locally

      • PeteG 2.2.1

        How do you stop existing export related R&D being credited? If that’s all that happens it’s simply a tax credit for selected sectors.

        • wtl 2.2.1.1

          No f**king shit. It is a tax credit for sectors doing R&D for export. Isn’t that the point?

          Since PeteG and other National supports seem to think Kiwis are too dumb to design a tax credit system that is reasonably robust, its not surprising that they are against R&D – they probably think Kiwis don’t have the necessary brains for R&D.

          • PeteG 2.2.1.1.1

            If they get a tax credit for R&D they are already doing the benefits are limited.
            It’s very difficult to ensure it promotes additional R&D.

            • Colonial Viper 2.2.1.1.1.1

              You’re grasping at straws here.

              I thought you Righties were all about providing incentives to the market to get the private sector to do the right thing. But obviously you don’t believe your own tripe.

              • Draco T Bastard

                Righties aren’t about incentives. They’re about subsidising themselves and their mates with our money and protecting themselves from competition.

                • Colonial Viper

                  What? They help themselves to OUR money for their own benefit? Wait, isn’t that what they always accuse the Left of doing? 🙂

            • mickysavage 2.2.1.1.1.2

              Yep we should do stuff all like Turkey and Mexico.
               
              There is no way that we should be like Finland which has a comparable population, is at the end of the world, has little natural resources but does exceedingly well because at least in part they spend truckloads on R&D.

              • Colonial Viper

                Turkey’s doing pretty good these days comparatively…

                As an aside, Finland’s Nokia used to be a forestry and wood processing company.

  3. Tangled up in blue 3

    Not do mention the effect on job growth in the R&D industry because of $6.4 billion being spent there.

    Of course there will need to be strict rules on what constitutes R&D to prevent abuse.

  4. joe bloggs 4

    There’s clearly some benefit from increased investment in R&D spending – just look at the outstanding successes of the knowledge economy to see this.

    However Labour’s approach to funding this R&D is morally bankrupt and utterly despicable.

    Labour worked its little rocks off to convince the electorate that the Emmissions Trading Scheme was an environmental policy, and that the scheme would not raise tax.

    Now all of a sudden Labour’s proposing an ETS impost on farmers to pay for Research and Development.

    So… following the money trail – the proposed farm payments on ETS go into the consolidated accounts and get used to pay for other ‘stuff’… The ETS is nothing more than a way of getting money out of taxpayer pockets and handing it to the treasury for them to spend.

    Looks like a tax, sounds like a tax.

    • Colonial Viper 4.1

      Looks like a tax, sounds like a tax.

      Yeah its a tax, and its going to pay for R&D tax credits. Get over it.

      • joe bloggs 4.1.1

        And Red Alert pretty comprehensively deal with John Key’s “milk and cheese will be more expensive” lie.

        Just this morning Damien O’Conner admitted on NewstalkZB that consumer prices would rise as a result of Labour’s ETS impost on farmers.

        The sooner you get out of your ivory tower, CV, the better. You champagne-and-caviar-socialists just don’t get it, do you.

    • Draco T Bastard 4.2

      Now all of a sudden Labour’s proposing an ETS impost on farmers to pay for Research and Development.

      They don’t say that at all. They say that the savings we get from not subsidising farmers for the pollution they create will pay for it.

      Having said that, even if it was an extra tax rather than a removal of subsidies I still wouldn’t be against it. Hell, I don’t think it goes far enough and that we should be looking at getting state paid for R&D up to aprox. $1b/year – not a measly couple of hundred million.

  5. PeteG 5

    What sector are we likely to get the best bang for R&D buck? Food production.
    Who is going to pay for the R&D credits? Food producers.

    It seems to be a money shuffle to try and appear to be doing something, creating overheads and innefficiencies and interference.

    Why don’t they just tax them less and even the playing field, internally and internationally.

    • Colonial Viper 5.1

      Wow…more prognostication from someone who has no idea about R&D and is making stuff up as he goes along.

      Why don’t you view Prof Callaghan’s presentation that Ben linked to before you keep posting shite.

      • PeteG 5.1.1

        I’ve worked directly in R&D and in companies heavily into tech R&D, with export markets, for about fifteen years. And you?

        • mickysavage 5.1.1.1

          Well then share some of your experience with us.  I made the comment below that food does not seem to be an area where there is a great deal of gain to be made but that our high tech companies seem to be doing the best.
           
          What has worked PeteG?
           
          And what overseas models work best?
           
          This should be a debate about making something work, rather than just point scoring by criticising.  The country needs a plan and improving R&D by whatever means is vital.
           

          • PeteG 5.1.1.1.1

            Reducing company tax will help.

            Also direct government spending on R&D rather than subsidy shuffles, this ensures it is additioanl spending. Spin off to private enterprise when it is commercially ready.

            • Colonial Viper 5.1.1.1.1.1

              Reducing company tax will help.

              Frak off Mr 15 Year R&D professional.

              All reducing company profits tax will do is encourage companies to not invest in R&D and to instead try and suck out that money in terms of short term profits instead of putting it back into their business.

              You really have no idea. Lame. Especially lame for a 15 year high tech industry professional.

        • Colonial Viper 5.1.1.2

          I’ve worked directly in R&D and in companies heavily into tech R&D, with export markets, for about fifteen years. And you?

          Meh, more likely that you’re a young NAT kiddo not much older than 24, who has no idea how companies actually work. OR you have been asleep at your desk your whole working life. OR you started working when you were 9 years old.

          • PeteG 5.1.1.2.1

            You should stop making things up.

            In the 80s I worked for a manufacturing company, export and local market, doing product design, CNC programming and selling machine time to others doing R&D. Some of that was taken over by F&P and I moved and worked for them for a while.

            Then I replaced someone at Taunton Mews who is, I believe, well known here. Who do you think might have left a boot message in autoexec on a PC at 4XO that said something like:
            “I’ll be back tomorrow to finish fixing this- LP”?

            • Colonial Viper 5.1.1.2.1.1

              Meh. Your copy and paste impresses no one.

              Particularly since I know any number of people who still do that work now and you simply have no fraking idea about anything.

              From your two dimensional thinking patterns I’ll be surprised if you are older than 24, which means you were programming CNC machines (badly, given your inability to look at a problem from all sides) in your diapers.

            • Huginn 5.1.1.2.1.2

              Pete!
              What a fabulous career! You’ve been on fire, mate!
              In the mean time they’re still surfing the Knowledge Wave here . . .

              from 2007 ‘Optima Chief Operating Office, Andrew Goldie, says the technology, which he believes is a world first, could not have been successfully developed without the support of the Foundation for Research, Science and Technology which provided investment totaling almost $500,000 through its Technology for Business Growth (TBG) scheme.’
              http://www.frst.govt.nz/news/Ambulances_worldwide_pick_up_on_software

              and in 2011: ‘While the company is securing contracts in Europe and the United Kingdom, Mackay said North America remains the main focus. Optima’s growing number of “smart health” products continues the company’s move away from the industry it worked with when founded 13 years ago by students and staff at the University of Auckland’s engineering faculty.

              In its early years the company provided software models for airlines. Its first project was a system to manage crew rosters for Air New Zealand, saving the airline $14 million a year.’
              http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10723014

              Optima is one of a cluster of technology start-ups spun out under the 5th Labour Government.

              Not many minimum wage jobs in this sector – engineering grads start at $45k + with offers going out before finals to snap them up.

              • Huginn

                . . . and here’s another one
                a hi-tech Auckland start-up that ticks all the boxes.

                Derceto

                ‘gives water utilities the power to slash energy costs, lower carbon emissions and boost quality and resource efficiency . . .reduces energy bills by 10 to 20 percent, which can amount to savings of millions of dollars per year for many utilities.’

                http://www.derceto.com/about-us/About-us

        • rod 5.1.1.3

          and who do you work for now PeteG John Key’s office or Crosby Textor.

    • What sector are we likely to get the best bang for R&D buck? Food production.
       
      BZZZT wrong.
       
      As said by Sir Paul Callaghan the best performing tech sectors are those who then their product is described to you your response is “what the??”
       
      Labour did concentrate on the food sector a few years ago for disappointing results.  This is one aspect where a certain amount of free market can actually be beneficial, hence the tax credit.
       
      Gee did I just say that?
       

      • Colonial Viper 5.2.1

        Isn’t it odd how PeteG with “15 years experience” in high tech companies can get it all so wrong.

    • Draco T Bastard 5.3

      What sector are we likely to get the best bang for R&D buck? Food production.

      Nope, go read the post again and watch Paul Callaghan address (I was going to say “again” but it’s obvious that you haven’t watched it).

      Who is going to pay for the R&D credits? Food producers.

      Wrong again. The food producers are paying for the pollution they create. We, as taxpayers, will pay for the R&D tax credits.

      It seems to be a money shuffle to try and appear to be doing something, creating overheads and innefficiencies and interference.

      Only to the really stupid people such as yourself. To everybody else it’s necessary directing of the economy.

      Why don’t they just tax them less and even the playing field, internally and internationally.

      Because that results in the money being used for overseas holidays, BMWs and generally making a few people who think that having lots of stuff feel better about themselves rather than advancing the economy.

  6. Eddie 6

    It would release money to the government because currently the government is paying for agriculture.

    It’s not a tax. It’s the end of a subsidy.

  7. tsmithfield 7

    Whatever they gain in tax credits they will probably lose in the increased minimum wage. So, how exactly are employers better off with Labour at the helm?

    • wtl 7.1

      Do you really think that companies doing R&D are employing many people on the minimum wage?

    • Colonial Viper 7.2

      Whatever they gain in tax credits they will probably lose in the increased minimum wage.

      Gawd you righties are dumb.

      High tech industries don’t pay many of their workers minimum wage so they will barely be affected by a minimum wage increase. Unlike say, KFC.

      High tech industries pay their workers (assembly technicians, software engineers, testing personnel, lab staff, plus all the standard business functions of sales marketing etc) relatively well.

      And that’s the point of encouraging high tech, high value per employee businesses.

      EDIT – snap! WTL 🙂

      • Lanthanide 7.2.1

        We don’t pay anyone minimum wage at my work.

      • tsmithfield 7.2.2

        Duh. A factory that employees people on the minimum wage can also have a R&D department. Dairy factories for example. Don’t be so thick.

        • Colonial Viper 7.2.2.1

          Oooooh clever response!

          Trust me mate, Fisher & Paykel Healthcare and Raykon have only a few people on the minimum wage compared to service industries like fast food and cleaning. So its no problem.

        • Lanthanide 7.2.2.2

          What is a dairy factory?
           
          I have a hard time believing this is actually true, as well. Seems to me that they are very different business areas, and it’d be more likely that one or the other operation was a subsidiary.

          • Colonial Viper 7.2.2.2.1

            Fonterra does employ quite a few Masters and PhD types working on product and process development. But even so I suspect its a fairly low ratio compared to their ordinary process workers.

            • KJT 7.2.2.2.1.1

              Well! I know more than a few Fonterra factory process and farm workers. They are all on more than minimum wage.

              • Colonial Viper

                Seasonal workers employed by dairy farmers (not by Fonterra) often fall under the minimum wage as far as I know. Particularly if they are immigrants and particularly if you take into account the number of hours they are asked to work.

                A $32,000 p.a. salary where you have to work 55 hours a week…well, the math is clear.

                • KJT

                  My experience has been that seasonal workers are nominally paid minimum wage, but when you get into hours, accomadation payments and piecework, such as pickers are paid, it is well below.

  8. Lanthanide 8

    My work is highly placed on that list. They highlighted the R&D tax credit that Labour announced in the 2008 budget as a positive thing going forwards. Of course it never really eventuated ’cause National slashed it.

    It would have applied to the R&D work we are already doing. But I get the distinct impression they were intending to use the free’d up money to employ a few more people.

    • PeteG 8.1

      In that case it’s positive, but it’s effectively an employment subsidy.

      • Colonial Viper 8.1.1

        Yes it is also a subsidy for higher wages, better jobs, reducing our balance of payments deficit, and skill development/retention for the economy.

        You got a problem with that? You really have that much of a problem with NZ helping it’s industry and it’s skilled workers get ahead?

        Contrast that with NAT’s ETS scheme. An employment subsidy for farmers to pay foreign dairy workers less than the minimum wage. More your style, that.

      • Lanthanide 8.1.2

        What else were you expecting?
         
        Either we have a company that employs 100 staff, with 20 of them doing R&D, and with the tax credits, they re-structure and get 25 of their staff to do R&D: net increase in R&D being done by this company.
         
        Or we have a company that employs 100 staff, with 20 of them doing R&D, and with the tax credits they employ another 5 people to do R&D, and therefore have 25 doing R&D: net increase in R&D being done by this company.
         
        R&D doesn’t just magically happen. You need people to do it. The tax credit makes it cheaper to hire more people to do the work.

        Or, alternatively, they take the tax credits and use them to invest in new plant and equipment that makes them more efficient or opens up new products/market opportunities: more R&D being done by the company.

        Or, they were already in a difficult position, and the R&D tax credit will let them stay in business a little longer, or have to cut fewer staff: more R&D being done by the company than they otherwise would.

        By contrast, they didn’t make a single peep about the company tax being reduced from 30% to 28%.

  9. PeteG 9

    Departing expert reflects on a long taxing career – deputy Inland Revenue Department commissioner Robin Oliver:

    His proudest moment was when a meeting of New Zealand businesspeople and accountants rejected the previous government’s research and development tax credits as bad policy.

    “All the big four [accounting firms] had to pay off staff and close parts of their businesses, but they never lobbied to keep [the tax credits] because it wasn’t right in their view.”

    Hopefully if Labour bring it back it is right this time – for effectiveness, not for accountants.

    • Colonial Viper 9.1

      But helping farmers to shelter income is right in their view.

      So why would you believe these advisors to the big corporates PeteG?

      Why would you not believe instead the companies who make up the high tech sector?

    • Draco T Bastard 9.2

      All I can say is thankfully we got rid of that fuckwit. Now maybe we can start putting in place proper tax forms that actually help the country.

  10. Paul Campbell 10

    I run a small company – mostly there’s just me here – I’ve worked for startup companies most of my life, mostly in Silicon Valley, but I’ve moved back home to NZ.

    A budget or two ago the Nats axed the R&D tax credit only leaving a form which is really open to a few large established companies.

    In NZ (unlike Silicon Valley) you can’t have a bright idea, assemble a team, impress a few VCs, raise some money and go off and work for a couple of years to make a product for sale. Here they really expect us to have a product ready for sale the next day after you get financed – you need to have designed your product in your garage in your spare time which means we just can’t move as fast as that other team in the US with the same bright idea.

    We really need a way to bridge that gap – R&D funding for garages

  11. Afewknowthetruth 11

    Any discussion about the future that does not factor in collapse of the globalised economic arrangements over the period 2012-2015, due to declining internationally tradeable oil, is like debating how many angels can fit on a pinhead.

  12. Draco T Bastard 12

    …that’ll still be true in 2015 under their plan, so they can’t be that worried about it in reality.

    Except that JKey has said that they’ll review bringing them in in 2015 as well. Which, IMO, pretty much means that National wouldn’t bring them into the ETS in 2015.

    Agriculture is due to come into the ETS in 2015, but Key yesterday suggested a re-elected National government could push that date out further.

  13. randal 13

    they only have one plan and that is to sell the soe’s and get out.

  14. ZeeBop 14

    Can we have some of that R&D money spent on analysis about when too much milk production is harmful, when too much debt is taken on by farmers to pay for new dairy farms is too much. Seems we never consider when the limit is, and get into a situation where citizens are supporting the farm sector debt who pay little tax and those same citizens do pay tax and can’t afford to by milk. Seems to me we need to start with some government policy R&D. Its like we could never produce too much milk, export too much top soil, use too much water, expose ourselves to too much debt, because milk will make us all rich, yeehaa…

  15. Any R&D funds should only go to companies based in NZ and majority-owned by people who actually live here – whether as residents or citizens. The last thing we need is to be funding R&D for multi-nationals who use it to kill (or threaten to kill in order to ‘force’ buy-outs) our own start-ups through cut-throat competition.

    Over the years I’ve watched company after company be bought out and usually within a small number of years the operation here is scaled back and the jobs and intellectual property…and the profits….go overseas.

    If that’s all we’re going to get…then don’t waste our money.

    • Colonial Viper 15.1

      As part of any R&D funding, the Govt has got to get the first right of refusal on buying shares offered in a sell off. Other requirements around this could also be put in to place.

Links to post

Recent Comments

Recent Posts

  • Learning From Brexit
    Whether Britain leaving the European Union was right or wrong, good or bad is for the Brits to decide. But there are lessons about international trade to be learned from Brexit, especially as it is very unusual for an economy to break so completely from its major training partner.In Econ101 ...
    PunditBy Brian Easton
    9 hours ago
  • Bernard’s Chorus for Friday, July 12
    TL;DR: My top six things to note around housing, climate and poverty in Aotearoa’s political economy in the last day or so on the morning of Friday, July 12 are: Read more ...
    The KakaBy Bernard Hickey
    14 hours ago
  • Hot Damn! It's The Soggy Bottom Boys!
    Good morning lovely people, and welcome to another weekly review. One which saw the our Prime Minister in Washington, running around with all the decorum of Augustus Gloop with a golden ticket, seeking photo opportunities with anyone willing to shake his hand.Image: G News.He had his technique down to overcome ...
    Nick’s KōreroBy Nick Rockel
    17 hours ago
  • When an independent expert / advisory group is anything but ..
    OPINION: Yesterday, 1News reported that the Government's "independent" advisory group had recommended Kiwirail offload its ferries to another entity.Except this wasn't entirely new news at all, besides that it came formally from Nicola Willis’s advisory team.TVNZ is under significant cost pressure, and earlier this year, after expressing strong discontent with ...
    Mountain TuiBy Mountain Tui
    17 hours ago
  • The Kākā’s Pick 'n' Mix for Friday, July 12
    Photo by Alexander Schimmeck 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 9:00 am on Friday, July 12 are:Scoop: Ministerial group advises KiwiRail no longer run Cook Strait ferries 1News’ Julia RodenNews: ...
    The KakaBy Bernard Hickey
    17 hours ago
  • Weekly Roundup 12-July-2024
    Kia ora and welcome to another Friday roundup, in which we pull together some of the links and stories that caught our eye this week. Feel free to add more in the comments! The week in Greater Auckland On Monday, Scott delivered a delicious disquisition on donut cities, ...
    Greater AucklandBy Greater Auckland
    18 hours ago
  • The Kākā’s Journal of Record for Friday, July 12
    Photo by Dominik Scythe on UnsplashTL;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 Friday, July 11 are:Climate: Transport Minister Simeon Brown said in a release the Government's plan to reverse New ...
    The KakaBy Bernard Hickey
    20 hours ago
  • The Hoon around the week to July 12
    TL;DR: The podcast above of the weekly ‘hoon’ webinar for paying subscribers features co-hosts and talking with:The Kākā’s climate correspondent talking about the National-ACT-NZ First Government’s climate strategy ‘pamphlet’, its watering down of Clean Car Standards and its general lack of coherence;University of Otago Foreign Relations Professor ...
    The KakaBy Bernard Hickey
    20 hours ago
  • Casey Costello strikes again
    Summary: A track record of deception is becoming evident in the Government’s Coalition alliance. Ministers across all parties have been found to either lie without contrite, and/or act unlawfully and unreasonably. The rails are coming off quicker than a marshmallow induced fantasy train ride as the conductors throw caution to ...
    Mountain TuiBy Mountain Tui
    1 day ago
  • Skeptical Science New Research for Week #28 2024
    Open access notables Antarctic Bottom Water Warming, Freshening, and Contraction in the Eastern Bellingshausen Basin, Johnson et al., Geophysical Research Letters Cold winds blowing over polynyas (areas of ice-free water) on the Antarctic continental shelf create sea ice, forming very cold and somewhat salty, hence very dense, waters. These dense ...
    1 day ago
  • We're back! Join us for the weekly Hoon on YouTube Live
    Photo by Mathias Elle on UnsplashWe’re back after a three-week mid-winter break. I needed a rest, but back into it. We’re still with the ‘new’ day of the week (Thursday rather than Friday) when we have our ‘hoon’ webinar with paying subscribers to The Kākā for an hour at 5 ...
    The KakaBy Bernard Hickey
    1 day ago
  • Climate Change: National’s gas fantasy
    Yesterday the government released the advice on its proposal to repeal the offshore fossil gas exploration ban, including a Climate Implications of Policy Assessment statement, Cabinet paper, and Regulatory Impact Statement. I spent some time looking at these last night, and the short version is that the government's plan is ...
    No Right TurnBy Idiot/Savant
    1 day ago
  • A criminal minister
    RNZ reports that cancer minister Casey Costello has been reprimanded and forced to apologise by the Ombudsman for acting "contrary to law" in her handling of an OIA request: Associate Health Minister Casey Costello has been severely reprimanded by the Chief Ombudsman and forced to apologise for trying to ...
    No Right TurnBy Idiot/Savant
    1 day ago
  • Gordon Campbell on Luxon in the NATO pressure cooker
    New Zealand is one of six countries invited as onlookers to this week’s NATO summit in Washington. As such, PM Christopher Luxon will be made aware of the pressure on the 32 NATO member states (a) to increase their Defence spending (b) to become less militarily dependent on the US ...
    WerewolfBy lyndon
    2 days ago
  • Bernard’s Dawn Chorus for Thursday July 11
    TL;DR: My top six things to note around housing, climate and poverty in Aotearoa’s political economy in the last day or so on the morning of July 11 are:Climate: Climate Change Minister Simon Watts issued the National-ACT-NZ First Coalition Government’s climate strategy yesterday, including a three-page document with five bullet ...
    The KakaBy Bernard Hickey
    2 days ago
  • By George! Splendid streets take shape down south
    The revitalisation of Auckland city centre, especially around Wynyard Quarter, Te Komititanga, and Queen Street, is top of mind for Greater Auckland readers – but other cities around Aotearoa New Zealandare installing people-friendly streets. This guest post by Jessica de Heij, who grew up in the Netherlands and is an ...
    Greater AucklandBy Guest Post
    2 days ago
  • Bernard's Pick 'n' Mix for Thursday, July 11
    TL;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 7:30 am on July 11 are:Scoop: NZ First Minister acted 'contrary to law’. Casey Costello has been severely reprimanded by the Chief Ombudsman and forced ...
    The KakaBy Bernard Hickey
    2 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
    2 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
    2 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
    2 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
    2 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
    2 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
    2 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 ...
    2 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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 ...
    3 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
    3 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
    3 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 ...
    3 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 ...
    3 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
    4 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
    4 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
    4 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
    4 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 ...
    4 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
    4 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
    4 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
    4 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
    4 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
    5 days ago
  • “Laser focused on the cost of living crisis”
    Cartoonist credit: Christopher Slane ...
    Mountain TuiBy Mountain Tui
    5 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
    5 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
    5 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
    5 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
    5 days ago
  • Satire: It's great our Prime Minister is so on the ball
    ...
    Mountain TuiBy Mountain Tui
    5 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
    5 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
    5 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
    5 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
    5 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
    5 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
    5 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 ...
    5 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 ...
    5 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
    5 days ago
  • Aotearoa Says – No Diggity.
    Strictly biz, don't play aroundCover much ground, got game by the poundGetting paid is a forteEach and every day, true player wayOne month ago tens of thousands of Kiwis took to the streets to protest against the coalition’s Fast Track legislation. Concerned that it would prioritise some people making a ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • Strangers and others
    For a moment yesterday I thought I might have been trailing my old friend Simon Wilson across the Danube, over cobbled stones, and into the old town square of Linz. Same comfortable riding style, same jacket, same full head of hair, but no, different friend of cycling.There is a kindred ...
    More Than A FeildingBy David Slack
    6 days ago
  • Killing the Golden Goose of New Zealand's economy
    IntroductionIn New Zealand, the National party generally retains a reputation of being pro-business and pro-economy.Thanks for reading Mountain Tui ! Subscribe for free to receive new posts and support my work.The underlying assumption is National are more competent economic managers, and by all accounts Luxon and his team have talked ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • Newshub Signs Off
    Wait for the night, for the light at the end of an era'Cause it's love at the end of an eraThe last episode of Newshub, the final instalment of TV3 News, aired last night. Many of us who took the time to watch felt sad and nostalgic looking back over ...
    Nick’s KōreroBy Nick Rockel
    7 days ago
  • The Pharmac Fiasco
    If you don’t understand how things work you make foolish mistakes. To explain how the government got into its cancer drugs muddle, we need to explain first how New Zealand’s pharmaceutical purchasing system works. There is a parallel between Pharmac and the Reserve Bank of New Zealand. The Government sets ...
    PunditBy Brian Easton
    1 week ago
  • An unexpected honour.
    One can take many things as a budge of honour but this was somewhat unexpected. Was it something that I said? See line 3: https://mid.ru/en/foreign_policy/news/1959715/ ...
    KiwipoliticoBy Pablo
    1 week ago
  • An Ode to the British Tories
    The legend Jonathan Pie nails it in under 5 minutes. There is more, of course, but his summary is both fair and an outstanding take on the UK Conservative Party’s right wing legacy.Austerity, cuts to the public service, trickle down economics, corruption, policies favouring corporations and the wealthy, underinvesting in ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Knives out for Kāinga Ora
    Note this a longer read.TLDR: Bishop had always intended to shortchange Kāinga Ora and malign the Board and Executive. The $500,000 independent review of Kāinga Ora was anything but, and poses serious ethical issues in both conduct and outcomes. Kāinga Ora had a debt to assset ratio of 0.25 when ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Something's going to change
    If you’re selling your soul, working all dayOvertime hours for bullshit payNothing’s gonna change if all you do Is wish you could wake up and it not be trueJoin a union, fight for better payJoin a union, brother, organise todayYou’ll see where the problem really liesWhen the union comes around: ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Weekly Roundup 5-July-2024
    Welcome to the second half of the year! And another roundup of stories that caught our eye over the week. As always, feel free to add anything we’ve missed, in the comments. The fortnight on Greater Auckland Last week was a short week, but nonetheless action-packed: On Monday, ...
    Greater AucklandBy Greater Auckland
    1 week ago
  • How the team of 5 million lost the game
    A study of the 2020 election has found that though the swing to Labour was the biggest vote shift in New Zealand for more than a century, it was not structural. Indeed, the fundamental electoral forces that drove the result were not dissimilar to those that had emerged in the ...
    PolitikBy Richard Harman
    1 week ago
  • Skeptical Science New Research for Week #27 2024
    Open access notables Climate-driven deoxygenation of northern lakes, Jansen et al., Nature Climate Change: Oxygen depletion constitutes a major threat to lake ecosystems and the services they provide. Most of the world’s lakes are located >45° N, where accelerated climate warming and elevated carbon loads might severely increase the risk of ...
    1 week 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
    13 hours 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
    15 hours 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
    15 hours 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
    16 hours 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
    21 hours 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
    1 day 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
    2 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
    2 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
    2 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
    2 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
    2 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
    2 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    4 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
    4 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
    4 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
    4 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
    7 days 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
    1 week ago
  • Dr Shane Reti's speech to Iwi-Maori Partnership Boards, Rotorua
    Dr Shane Reti's speech to Iwi-Maori Partnership Boards, Thursday 4 July 2024    Mānawa maiea te putanga o Matariki Mānawa maiea te ariki o te rangi Mānawa maiea te Mātahi o te tau Celebrate the rising of Matariki Celebrate the rising of the lord of the skies Celebrate the rising ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Announcement of Mental Health Targets and Mental Health and Addiction Community Sector Innovation Fu...
    Kia Ora Koutou, Tena Koutou, Good Morning. Thank you Mahaki Albert for the warm welcome. Thank you, Prime Minister, and thank you everyone for coming today. When I look around the room this morning, I see many of our hard-working mental health and addictions workforce from NGO and Community groups, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Expert panel appointed to review Public Works Act
    An independent expert advisory panel has been appointed to review the Public Works Act to make it easier to build infrastructure, Minister for Land Information Chris Penk has announced.  “The short, sharp review demonstrates the Government’s commitment to progressing critical infrastructure projects and reducing excessive regulatory and legislative barriers, so ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Resources Minister heads to Australia with message – ‘NZ is open for business’
    A trip to Australia next week to meet mining sector operators and investors will signal New Zealand is once again open for business, Resources Minister Shane Jones says. The visit is also an opportunity to build relationships with Australian state and federal counterparts and learn from their experiences as New ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Prime Minister’s scholarships awarded
    New Zealand’s ability to engage with key trading partners is set to grow further with 20 scholarships awarded for groups to gain education experiences across Asia and Latin America, Tertiary Education and Skills Minister, Penny Simmonds says. Of the 20 scholarships, 12 have been awarded to groups travelling for study ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Next steps for Northwest Rapid Transit underway
    Transport Minister Simeon Brown has welcomed progress on Northwest Rapid Transit, as the NZ Transport Agency (NZTA) confirms next steps on the preferred option, a busway alongside State Highway 16 from Brigham Creek to Auckland City Centre. “The Government is committed to a rapid transit system that will support urban development, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Targets will drive improvement in mental health
    Reflecting the Government’s priority to improve the public services Kiwis rely on, including mental health care, Minister for Mental Health, Matt Doocey has today announced five mental health and addiction targets.  “The targets reflect my priorities to increase access to mental health and addiction support, grow the mental health and addiction ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New fund for mental health services set to open
    The first round of the government’s $10 million Mental Health and Addiction Community Sector Innovation Fund is set to open for applications later this month, Mental Health Minister Matt Doocey says.   “The Fund will support new and innovative initiatives that are focussed on increasing access to better mental health support, ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Going for Housing Growth speech
    Speech to the Real Estate Institute of New Zealand - 4 July 202 AcknowledgementsGood morning. Can I acknowledge Jen Baird and the team from REINZ. It’s good to be here with you this morning.IntroductionThis morning I’d like to talk to you about the Coalition Government’s plan to fix our housing crisis and ...
    BeehiveBy beehive.govt.nz
    1 week ago

Page generated in The Standard by Wordpress at 2024-07-12T14:05:31+00:00