Scrap the spending cap

Written By: - Date published: 8:45 am, July 23rd, 2018 - 152 comments
Categories: business, class war, debt / deficit, Economy, economy, grant robertson, jacinda ardern, labour, monetary policy - Tags:

The Government’s self imposed budget responsibility rules have come under fire.  The rules are these:

  1. The Government will deliver a sustainable operating surplus across an economic cycle.
  2. The Government will reduce the level of Net Core Crown Debt to 20% of GDP within five years of taking office.
  3. The Government will prioritise investments to address the long-term financial and sustainability challenges facing New Zealand.
  4. The Government will take a prudent approach to ensure expenditure is phased, controlled, and directed to maximise its benefits. The Government will maintain its expenditure to within the recent historical range of spending to GDP ratio.
  5. The Government will ensure a progressive taxation system that is fair, balanced, and promotes the long-term sustainability and productivity of the economy.

But the rules are being criticised as being too restrictive and preventing the Government from taking the steps that it needs to take to repair the damage from the past decade of indifference.

From Patrick O’Meara at Radio New Zealand:

The government’s being warned it has no chance of fixing run down public services unless it ditches its self-imposed spending rules.

Jacinda Ardern’s Labour-led coalition promised to loosen the fiscal straitjacket of the previous National administration to rebuild public services, and pledged in the Budget to spend an extra $24 billion more over the next four years.

Under its budget responsibility rules, the government pledged to keep spending at 30 percent of GDP, and reduce net debt to 20 percent of GDP by 2022.

But the government’s efforts have fallen short of the expectations of some, who argue it’s not nearly enough.

“If we stick to those caps for anything more than the next couple of years then we won’t get anywhere near solving the infrastructure deficits that we’ve had across this country, built up over the last couple of decades,” BERL chief economist Ganesh Nana said.

“There’s a lot of catching up to be done.”

Salvation Army social policy analyst Alan Johnson said there was a real danger that the crisis in mental health, social housing and well-being of older New Zealanders would become ingrained.

“One of the things with those caps is that they were literally straight out of the National Party rule book, which was disappointing that both the Greens and the Labour Party signed up for them even before the election.

“They are unnecessary and they could be relaxed I think without a massive impact on our credit rating, and the cost of capital and borrowing,” Mr Johnson said.

The cap on expenditure to GDP is very conservative.  This table compiled by the OECD suggests that the 30% cap is much lower than most overseas nations.

The top five nations, all with figures over 50%, are in a variety of different shapes.  Greece is one of them, but the others include Belgium, Denmark, France and Finland. Australia is at 36% and the UK is at 42%.  Our 30% figure appears to be excessively cautious.

The Net Core Crown Debt to GDP figure is also very cautious.  Again from OECD figures suggest that our proposal is very conservative.  Australia is on 64%.  Most nations are on 50% plus.

There is plenty of wriggle room.  Helen Clark and Michael Cullen left the accounts in outstanding shape and National’s parsimonious nature has kept debt relatively low.

But we have a major problem and we have urgent infrastructure that needs to be built.

Labour’s caution is motivated by political concerns rather than economic concerns.  But we live in times where conventional rules should be disregarded.

152 comments on “Scrap the spending cap ”

  1. gsays 1

    It’s not as if, by sticking to these rules, business and farming folk are going to see or say that Labour are good stewards of the economy.

    Potentially they will get the worse from both sides: the tax and spend motif will be repeated and the many at the bottom of the inequality heap will not make real gains.

    • Draco T Bastard 1.1

      It’s not as if, by sticking to these rules, business and farming folk are going to see or say that Labour are good stewards of the economy.

      Of course they won’t – especially as the economy continues to limp along and private debt soars.

      • cleangreen 1.1.1

        100% Draco the government need to honour there promises over a “self uimposed spending cap”.
        As if they dont fullfil their promises to restore all “run down public services” then they will just be a one term government.

        It was Jacinda that recently challenged us to keep Labour in check to keep their promises made to us all.

        We are still waiting for their promises made to restore the Gisborne rail system again, so we are checkig this promise made into the cart of promises to be addressed yet by Labour.

        http://gisborneherald.co.nz/localnews/2437884-135/labour-greens-united-on-rail
        QUOTE.
        Labour-Greens united on rail
        Published: August 23, 2016 11:17AM
        ‘Wrong government in place’ to make rail a reality: Labour and Greens.
        Labour-Greens united on rail
        Published: August 23, 2016 11:17AM
        QUOTE;
        ‘Wrong government in place’ to make rail a reality: Labour and Greens.
        THE Labour and Green parties last night committed to re-opening the entire length of the Gisborne to Napier rail line but pointed out that would only happen if the National Party was removed from office.
        but pointed out that would only happen if the National Party was removed from office. UNQUOTE;
        We say to labour;
        We will hold your Government to account here.as Jacinda has requested we do so in her speech at Waitangi day 2018.
        Labour has promised in the Gisborne Herald press to reopen the rail services to Gisborne from Napier in 2016 before the election.
        Please reply to this request for a meeting please as soon as able.

  2. Glenn 2

    Totally agree, scrap the spending cap. If Labour/NZFirst/Greens wants to risk being a one term government then keep the cap on.
    Folk voted for a change yet the money is not there to implement them under the present rules. Increase the spending on improving infrastructure, housing and health and projects we can be proud of … otherwise National will spend it….on tax cuts for their rich mates.

    • dukeofurl 2.1

      The post is incorrect and compares different spending counted by OECD and what is NZ ‘core spending’

      There could be 15% difference as the OECD includes local government spending which is supposed to be around 10% of central government spending ( I tried looking it up but Stats is a mess as they change everything all the time- no wonder they screwed up the census)

      • Craig H 2.1.1

        The Tax Working Group figures said local body rates are about 10% of GDP. Spending is probably close to that, even with the fees.

  3. Pat 3

    Theres an excellent case to be made for doing so but there are a couple of things to consider.
    Firstly it will be used as a rock of ‘broken promise’ to beat the coalition with and that will have effect.
    Secondly we have capacity and time restraints that mean the use of any additional funding is unlikely to show effect before the next election.

    My hope is the required detailed planning is done over the next 18 months to enable the Gov to approach the next election with a well presented package that indeed does relax the cap and has a robust defence to the inevitable criticism that will be launched …..if i am disappointed in that hope then I suspect the future for Labour is grim indeed.

    • The Chairman 3.1

      I concur, Pat. There is an excellent case to be made for doing so.

      However, I disagree that it becoming a rock to beat them with will have any great effect. Evident by the overwhelming public support for the catch up work required, Labour will be able to keep the public on board.

      As for capacity and time restraints. In some instances, capacity constraints can be filled from offshore. And filling those capacity constraints will help Labour meet the time restraints, improving their ability to get more done. Therefore, there is scope for them to do more.

      But here’s the kicker, they are currently failing to meet the spending of their own self imposed cap. Only spending about 28% of GDP opposed to the 30% cap they self imposed. Hence, allowing them around another $6 billion to play with without even having to break their own self imposed rules.

      Additionally, it’s my understanding that if Labour fail to spend more now, things will worsen.

      • Pat 3.1.1

        there are restraints in planning also…that work takes time and as evidenced by Hiwibuild hasnt been done prior to election ( a serious failing IMO)….and any training package could easily be met within current cap.

        Its all very well to allocate funds but as Shane Jones is discovering it is somewhat more problematic to purposefully and effectively disperse them.

        Things will likely get worse with delay but they will not necessarily improve with poorly planned and connected spending

        Also they may be projected to remain under cap at the moment but they are exactly that…projections and how confident are you in those tax take and GDP projections?

        • The Chairman 3.1.1.1

          No one is suggesting poorly planned spending. So you can put that concern to bed.

          People are calling for a larger injection to help meet the massive shortfalls faced, better providing the Government with the means to urgently act. We have deepening problems, thus there is no time to delay.

          If there are also planning restraints, they to can largely be overcome by more funding and fast tracking.

          Regardless of their accuracy, as projections are the measure in use, then meeting the cap within those projections is fine. Moreover, as the self imposed cap is so conservative, there is little additional risk if projections turn out worse than projected.

          • Pat 3.1.1.1.1

            Care to nominate a couple of substantial projects that could be implemented in the next 18 months ?

            • Molly 3.1.1.1.1.1

              Yes. Create a transition fund to install an electric vehicle charging infrastructure throughout NZ, particularly in the regions. Small to mid-sized business owners can apply for their business to have a charger on site, and in return they will have an increasing number of vehicles stopping for up to 20min at a time. Great deal for small regional cafes and restaurants, invests in transitioning infrastructure, and encourages the use of non-fossil fuels. Particularly, beneficial for business as tourist buses are encouraged to become fossil free.

              Also, invest in warehouse development of kitset houses, run by the government. Improve design and technology, while training apprentices to build.

              • Pat

                would imagine those sorts of things may be covered under the Climate Change Commissions mandate to develop the pathway to Carbon Zero 2050, thats not planned to be set up until next year although theres an interim committee in place since April…that is a huge body of work that will require a lot of interconnected policy whos work for the immediate is already budgeted for

            • The Chairman 3.1.1.1.1.2

              It’s not about what projects I care to nominate. It’s about Labour doing more (with their own projects) to address our deepening problems. And while there are challenges and hurdles to overcome, it’s about ensuring the money to do more is available.

              The calls for more investment are growing louder, yet Labour aren’t even spending up to their own self imposed cap. Equating to around a $6 billion shortfall in this years spending alone.

              • Pat

                got nothing then huh….aint quite so easy eh?

                • The Chairman

                  Again, Pat. It’s not about what I’ve got. And nobody said it was going to be easy. This is about lack of funding being a problem holding this Government back from better achieving its own objectives in addressing the shortfalls. For which, evidently you have no plausible defence.

                  • Pat

                    it is not about a lack of funding in the short term, as stated previously, it is about a lack of capacity and planning…, the planning is now being done and hopefully that planning will lead to increased capacity for which the required additional funding will then be provided.

                    It is understandable that many wish to see underinvestment in society remedied but it needs to be understood that writing a cheque does not magically create the healthcare workforce, social workers, public transport and housing (to name a few) required….the work that can be done before the next election cycle has been funded….and we will find out in due course whats on offer from that point on.

                    But then again expecting a rational response from an angry electorate may be expecting too much…..especially if theyre determined to be dissatisfied

                    • The Chairman

                      “It is not about a lack of funding in the short term…”

                      Indeed it is.

                      As I mentioned above, more funding can help overcome capacity constraints.

                      For example, the nurses dispute. Paying them more now is required to attract new nurses and maintain experienced ones. Enabling them to build up sufficient staffing levels going forward.

                      People aren’t being irrational here. It’s the Government’s current stance that is flawed.

                      Even you conceded those speaking out have put froward an excellent case.

                      Therefore, to now imply the electorate are irrational and merely angry as if it’s somehow not the Governments fault is an interesting stance for you to now take.

                  • Pat

                    an excellent case for removing the fiscal cap…not the timing of the removal….as seems to constantly pass you by.

                    As to the nurses dispute they have been offered more and there is no reason why additional training placements cannot be instituted within current budget…I note training is 3 years so any future trainees wont be qualified prior to the next election.

                    I never apportioned blame for an angry electorate and it is ridiculous of you to attempt to suggest that even had I it was the 8 month old admin I would apportion it to.

                    You are nothing if not consistent Chairman

                    • The Chairman

                      As I highlighted above, the timing is now. Which is evidently passing you by.

                      Nurse are adamant more money than what has already been offered is required.

                      And while additional training placements may be facilitated within the current budget, there isn’t enough funding being offered to attract new nurses and maintain the experienced ones. Which is vital to building and maintain staffing levels and filling those training placements going forward.

                      So once again, you have no plausible argument.

                    • Pat

                      lol…you have made no case for now at all….you havnt addressed one aspect of HOW more funds can be utilised to improve circumstances BEFORE the next election cycle….you continue your one man mission to display faux concern for those impacted by inequality and have nothing practical to offer other than complaint.

                      Keep up the good work

                    • The Chairman

                      Providing nurses with more funding now will improve circumstances before the next election cycle. Allowing voters to see the Government is on the right path albeit if benefits are yet to be fully realised.

                      Additionally, your personal potshot at me merely reaffirms you have no plausible argument.

    • Draco T Bastard 3.2

      Secondly we have capacity and time restraints that mean the use of any additional funding is unlikely to show effect before the next election.

      There are certainly some constraints but available people isn’t really one of them as we have quite a few unemployed that need training.

      My hope is the required detailed planning is done over the next 18 months to enable the Gov to approach the next election with a well presented package that indeed does relax the cap and has a robust defence to the inevitable criticism that will be launched …

      And my hope is that they finally realise how money should work in the country and why that makes foreign ownership/investment bad.

      Your hope hope is more likely to come to pass.

      • Pat 3.2.1

        My hope is at least realistic

        • Draco T Bastard 3.2.1.1

          Considering all the evidence my hope should be realistic but the politicians are still too enamoured of the rich and the failed political-economics of the capitalists and so won’t even go there.

          • Pat 3.2.1.1.1

            as I have said before the problem of politicians is solved by convincing the voting public ..and in all honesty that is where your problem lies, convince the public and the politicians are bound to follow….I;ve yet to see an argument that will do that.

            Whether we like it or not a large proportion of the population are comfortable with their lifestyle and an increasing proportion have known no other.

            • Draco T Bastard 3.2.1.1.1.1

              convince the public and the politicians are bound to follow…

              If that were true then we wouldn’t be signed up to any FTAs, the TPPA wouldn’t have been signed and marijuana would have been legalised years ago.

              There are numerous other policies where the government, of both Labour and National, have failed to do what the people want.

              • Pat

                and yet they keep getting the votes

                • Draco T Bastard

                  Is there really anyone else to vote for?
                  Will any other party make the necessary fundamental changes in policy?
                  Will any other party simply listen to the people?

                  • Pat

                    agree the current options are limited, but in the case of TPP there was the Greens and they barely made the cut, The message would be that if none of the parties are offering the policies then theres a place for a new party or activism within the existing…..neither appears to be occurring (with the exception of a poorly performed TOP)

                    UK Labour are an example of what can happen if the numbers are there….IF.

                • KJT

                  If you look carefully, you will see that it only takes a minority of swinging voters to change the Government.

                  Hence the emotional appeals to the things that parties focus groups, say will motivate swing voters. Evidence free policies like, “tough on crime” and “fiscal responsibility” seem to work with these people.

                  “Representative Democracy”does not reflect the will of the majority, except by accident.

                  • Pat

                    I am well aware that swing voters can change election outcomes…however the impact of those swing voters is diminished with high participation rates AND you will note I’m sure that I mentioned broad based appeal…..representative democracy works when its participated in.

                    It may not provide you with the result you desire but it does deliver what the majority have selected

  4. Rosemary McDonald 4

    I can see there’s a moral imperative to relax the cap, but it would be unconscionable if extra spending went to those private firms who have already profited greatly from lucrative government contracts and their ilk.

    Sort out price gouging and overpriced contracts that allow firms to fail dismally and get away virtually unscathed.

    https://www.radionz.co.nz/news/national/358512/middlemore-failed-to-pursue-millions-in-leaky-building-claim

    Bring back the Ministry of Works,

    Renationalise the power supply.

    • Gosman 4.1

      Yes please relax the spending limit to buy back the entire electricity network. You will spend billions and billions and won’t achieve anything note worthy and will be made to look like chumps.

      • Draco T Bastard 4.1.1

        And all the blame will be on the Key government for selling it against the wishes of the people in the first place.

    • cleangreen 4.2

      1000% correct rosemary;

      Best suggestion for the day is your suggestion here;

      Bring back the Ministry of Works,

      Renationalise the power supply.

  5. Ad 5

    We’re a brittle economy coming off a growth boom. That means save hard for the tough times ahead.

    And we have a state that wants to spend $28b on infrastructure but is struggling to spend it.

    Central govt is being the debt example the private sector should follow.

    Government is on right course.

  6. greywarshark 6

    Yesterday I listened to RadioNZ who had NZ Initiative talking about something. I thought where is Berl and Ganesh Nana with some balanced discussion? So great to hear this today. Let’s hear more from him and Bernard Hickey and I await Rod Oram back on Tuesdays on the citizens’ Nationalk Radio.

  7. James 7

    Why not? What’s one more broken promise ?

    • BM 7.1

      This, it’s not like this government has any credibility left.

      Trash the economy, tax everyone up the wazoo, the way it’s going this is a one-term government and once this one’s gone the left won’t see power again for a very long time.

      COL, you’ve got around 2 years left you may as well go for broke.

  8. Why on earth would they back down on their core economic belief?

    There’s a part of me almost feels sorry for Labour. I get the impression they were voted in by people so desperate for change that they voted for what they (i)want(i/) Labour to be…not what Labour clearly announced as actual policy. ie Centrism, fiscal austerity and embracing, enabling and entrenching some ‘interesting’ theories on the ‘Future of Work’

    Then again, they did fudge and obfuscate over some pretty important policies like TPP…so in actual fact I don’t feel too badly.

    Just a little sad for the bemused middle classes, and a gut wrenching sickness for those people becoming further entrenched in poverty and hopelessness with even less hope for a Government led economic system that enables social mobility.

    • dukeofurl 8.1

      They said they would renegotiate the TPP to account for some core issues and they did

      Did you not read the actual promise?

      It is important that trade agreements are carefully negotiated, and that provisions in theseagreements do not undercut the regulatory sovereignty of New Zealand.
      Labour opposes the sale of our farms, homes, state-owned enterprises, and monopoly infrastructure to overseas buyers. Investment protocols in trade agreements should not prevent a future government controlling such sales.
      The current National government traded away these rights in NZ’s Free Trade Agreement with South Korea and in the proposed Trans Pacific Partnership. Ceding this was wrong in principle. It was also unnecessary, given that other countries including Australia retained their rights to do so.
      Labour will renegotiate theseprovisions

      if you have an ‘ultra’ view on these things thats fine but dont use that to say its fudges. Dont forget the TPP was done and dusted, all finished . It was only because US refused to ratify that we had a second chance

      • Siobhan 8.1.1

        Erm, thats EXACTLY my point.
        I know there policoes.
        And you know their policies.
        Bully for us.
        A number of otherwise aware people I know seem to have been under the impression Labour ‘wouldn’t sign’..

        possibly the source of their confusion is explained by the following chart…

        https://thestandard.org.nz/the-new-government-and-the-tppa-11/

        • dukeofurl 8.1.1.1

          Wheres the item ‘where some people’ were under the impression labour wouldnt sign ?
          Yes I know people and Im one of them , half read lots of things and form impressions from that. We can often project what we want onto what others are saying- to be honest political parties can be skilled at those almost there commitments.
          But I dont see ‘wouldnt sign’ while you probably see it ‘everywhere’

          • Siobhan 8.1.1.1.1

            Sorry bad linkage…I’m trying to show the chart halfway down the page…”citizens campaign group It’s Our Future released their own ten bottom lines, and a report card on the various political parties”, which indicates a lack of clarity on some points from Labour.

            For the third time..I absolutely knew they would sign, and that they said they would sign..there are people who dreamed up the belief they wouldn’t.

            Just like there are some people who think Labour will back away from ‘austerity’ budget constraints.

            Again, and I can’t stress this enough..wishful thinking was a big player in this last election. And Labour were happy to allow the ‘positive/lets just do this’ vibe to take centre stage rather than the reality of policy.

            If some groups are now disappointed, that’s down to their own delusions about what the current Labour Party stand for.

            • dukeofurl 8.1.1.1.1.1

              Dont know that there is big voices out there now saying
              “we didnt want you to do this’

              Sure if big bad Monster Corp comes over from US and then wants to sue us, then maybe it will become an issue again, but really dont know why you are even concerned right now.
              To me there are bigger issues to resolve than should be’s/could be’s from last year.

            • Grey Area 8.1.1.1.1.2

              Siobhan +1

  9. Blazer 9

    Steve Keen -barking mad or the real deal?Looks compelling to me.

    https://youtu.be/287Cu5me0Og

    • Draco T Bastard 9.1

      A quick and accurate summary of the true position that government should be in.

    • corodale 9.2

      They should be begging folk like Keen to join a Royal Commission to investigate Prosperity, but call the report “Progressive Austerity” or some crap, so as not to draw too much attention from goons.

  10. dukeofurl 10

    Those graphs dont seem right. They state they are ‘General government spending’
    while labours promise was more nuanced
    core Crown spending is managed around a trend of 30% of GDP.’

    The charts dont even show the 2015 numbers for NZ to see where we are now.

    There seems to be a definition of ‘Core Crown Expenses’
    https://treasury.govt.nz/publications/model/functional-classification-core-crown-expenses

    The gist of it is ‘ This is an accrual measure of expenses and includes non-cash items such as depreciation on physical assets.’

    The OECD defintion of general government spending is this:
    General government spending generally consists of central, state and local governments, and social security fund
    https://data.oecd.org/gga/general-government-spending.htm

    So it includes local government spending, as the other items are central government in NZ ( but not always in other countries)

    So that is the problem, using OECD numbers and labours promise is apples to oranges as it doesnt account for
    1) accrual spending is less than cash spending
    2) local government spending ( 11% of government spend)

    • mickysavage 10.1

      You might be right about local government spend. I can’t access the document they are relying on. Local government spend was about 4% of GDP so it would not make a major difference.

  11. Draco T Bastard 11

    1. The Government will deliver a sustainable operating surplus across an economic cycle.
    2. The Government will reduce the level of Net Core Crown Debt to 20% of GDP within five years of taking office.
    3. The Government will prioritise investments to address the long-term financial and sustainability challenges facing New Zealand.
    4. The Government will take a prudent approach to ensure expenditure is phased, controlled, and directed to maximise its benefits. The Government will maintain its expenditure to within the recent historical range of spending to GDP ratio.
    5. The Government will ensure a progressive taxation system that is fair, balanced, and promotes the long-term sustainability and productivity of the economy.

    1. The government, if operating correctly, would never have a surplus and the deficit should never exceed the growth in the economy
    2. The government should never be in debt because it can create the money that it needs.
    3. A country should never have financial issues as the government can create money
    4. Government expenditure should be based upon what needs to be done, if the resources are available and if we have the people to do it thus used to ensure full employment. Government expenditure can be used to make the resources available of course by developing local sources.
    5. I’m enthusiastic for the government to put in place 100% taxation on incomes over the PMs. Unfortunately, I doubt that the government would do something that progressive as they’re stuck in the delusional idea that taxation should never be above 50% and they even like mentioning the possibility of even going that high. Thus we can assume that they won’t really put in place the necessary progressive taxation.

    One through four can be done through a Sovereign Money system while taking money creation off of the private banks and banning foreign ownership/investment.

    • Gosman 11.1

      Why has NO country on the planet been able to implement successfully what you advocate Draco?

      • Draco T Bastard 11.1.1

        They have. The US Greenback, and their Colonial Scrip. The UK’s sticks and other well run systems around the world. The problem is that our representatives keep selling us out to the capitalists.

        https://www.youtube.com/watch?v=WVxWPkMXOmw

        • Gosman 11.1.1.1

          But if it worked so well then there would be little resistance to it.

          • dukeofurl 11.1.1.1.1

            Why not go for a jog down 1935 lane again. But we dont live in that world anymore

          • Draco T Bastard 11.1.1.1.2

            There is massive resistance to it from the capitalists who get their unearned income from the present failed system. They wouldn’t be rich and powerful any more even if they had lots of money.

            And the politicians are owned by the capitalists.

            • Gosman 11.1.1.1.2.1

              Nice conspiracy theory there . Even if true it does mean my side of the political divide is much better at ruining your side of the political divide’s plans. That must really annoy you that you have these amazing ideas that will lead to prosperity for the vast majority of the population but they keep getting nixed by people who think like me. You know this will happen yet you can’t stop it and every place your ideas (or a variation of them) is attempted the same thing happens over and over again.

              • Adrian Thornton

                @Gosman, It is incredible to me that you would actually feel proud to support an ideology based on greed, exploitation and extraction…and here I was thinking that the human project was evolution, you know , slowly evolving toward something higher, unfortunately, during this ‘selfish’ epoch, your ideology drags us backwards towards the primeval mud pool….well done.

                • Gosman

                  People who think like me run the World. People like you Adrian keep failing to change the World.

                  • No you are wrong…very wrong, ‘people who think like me’ gave the world most what is good about it as a human citizen….
                    All Worker rights.
                    All Women’s rights.
                    All Children’s rights.
                    All Disabled rights.
                    All animal rights
                    Fought to end slavery.
                    In Fact the defense of the very air you breath, water you drink and the planet you inhabit is mainly done by ‘people who think like me’.

                    had the long term vision to build the infrastructure of public hospitals, schools and housing etc that has been the backbone of western democracy over the last 100 years.

                    But then your ideology is so short term, so selfish that none of this would ever occur to a hollowed out husk of a human as you seem to be so proud to be.

              • Draco T Bastard

                Not a conspiracy theory but research.

                • corodale

                  Certainly it is a conspiracy. The FED, ECB, etc don’t plan in public, they conspire behind closed doors, and dictate policy without democratic controls. Careful with reseach, most of those publishers (Pearsons et al) are owned by Black Rock et al, which is chaired by board members of FED banks. It’s a small circle up there.

      • Tricledrown 11.1.2

        Gooseman China

  12. The Chairman 12

    The calls to lift Government spending restrictions are getting louder.

    Nurses, teachers, and others in the public sector want more money. The Salvation Army, BERL, Action Against Poverty and others are all calling for the Government to loosen their fiscal straitjacket.

    Can Jacinda hear them? Will she show leadership and take action?

    Will she insist her finance minister at least meet their own self imposed spending cap? Is she going to make a captain call or is she happy to let Grant hold the party back?

    No surprises, National are opposed to Labour lifting their self imposed cap.

    • dukeofurl 12.1

      Jacinda ?

      The cabinet makes these calls collectively

      • The Chairman 12.1.1

        The call made was 30% of GDP. Jacinda is party leader, therefore one would expect her to show leadership and get her finance minister to tow the line.

  13. adam 13

    Repeal the Reserve Bank Act, stop the tinkering.

    • Grey Area 13.1

      From the party which has never apologised for Rogernomics? Doubt it.

    • Gosman 13.2

      They have already altered it significantly. Why would repealing it help?

      • adam 13.2.1

        *sigh* Gossy for someone who supports capitalism you are rather weak on the function of legislation to support capitalism and its working. I thought some basics on how laws enable this construct of a market would be somthing you’d understand, instead a silly question. *sigh*

        • Gosman 13.2.1.1

          Following your logic we were less Capitalist before the Reserve Bank Act was passed. How did this manifest itself?

          • adam 13.2.1.1.1

            Really, you don’t know the difference between a mixed economy and a regressive one?

            You’re showing a real lack of understanding of basic economic ideas here Gossy.

            • Gosman 13.2.1.1.1.1

              Umm… we are still a mixed economy.

              • adam

                *sigh* come on Gossy, this is a regressive economy. You have never lived in a mixed economy have you? There is a facade of a mixed economy, hell even Bismarck knew you need give somthing.

                Anyone who runs with the delusion that this is a mixed economy need their head examined. It has things which look like a mixed economy, but the reality is somthing quite different these days. There is no universal health care, and there is no continuous knowledge development education. Two things which underpin a mixed economy.

                So your delusions to drag NZ further to the right economically are that, delusional. Next you’ll tell me there are things like free markets and fairies at the end of the garden.

                • Gosman

                  I suggest that it is your subjective bias that classifies this as a “regressive economy” nothing objective. At what stage does a mixed economy become a “regressive” one?

                • Gosman

                  What is “continuous knowledge development education.”?

                • Gosman

                  In what way is our health care system not universal?

                  • adam

                    Do you read?

                    • Gosman

                      Yes. In what way is our health system not universal?

                    • adam

                      Again, do you read? Never heard of waiting lists or Phamac? What about doctors fees or prescription fees?

                      It’s like talking to an idiot.

                    • Gosman

                      We have always had Doctor’s fees and waiting lists on the Public health system. Does that mean we have always been a “Regressive economy”?

                      https://www.parliament.nz/en/pb/research-papers/document/00PLSocRP09031/new-zealand-health-system-reforms

                      https://teara.govt.nz/en/primary-health-care

                    • adam

                      Your lies are outstanding. Never paid for a doctor before 1989. Never had any prescription fees either till the 5th national government.

                    • Gosman

                      Check my link

                      “A two-tier health system had developed, where hospital care was free but GPs charged high fees. From the 1970s governments tried to change this. From 1992 they subsidised GP visits for poorer people through community services cards.”

                      People paid for GP visits pre 1984.

                      If you have evidence to the contrary then produce it.

                    • adam

                      Did you live here pre 1984? I know you did not, so you don’t really know how it worked do you. You have this idea of it but no understanding. GP visits were free for the under 18, as with dental.

                      Also anyone with a disability had access to a doctor with no fee. Admittedly the list of doctors for disabled was limited, and this was folded into the hospital budget at the time.

                      Also there was ACC, which covered a chunk of doctors visits pre 1984.

                      And I see you ran from prescriptions.

                      Come on Gossy, if you didn’t realise we been living in a regressive economy since the introduction of the Reserve Bank Act your more of an ideology than I thought.

                    • Gosman

                      You claimed that noone paid for Doctors fees. Now you are claiming some people did but many different. However what level of payment for Doctors visits stop the Health care system being universal?

                    • adam

                      Back to questions…

                      Oh dear I point out you were wrong and this is the response, poor Gossy.

                    • Gosman

                      You didn’t point out I was wrong. I stated that people paid for Doctors vists pre 1984 and provided a link to that. I never stated that EVERYBODY paid for Doctors visits pre 1984. It was you who argued that they didn’t. You still haven’t shown that Doctor’s visits did not cost anybody pre 1984.

                • Gosman

                  Additionally, why do you think those two things you mention are indicative of a mixed economy?

                  • adam

                    Argue, or make a statement sometime can you? Or are you just being an idiot because you can? I’m at ad hominem because of this way you chose to argue, which is like talking to a two year old.

                    Make a point Gossy, use your words.

                    • Gosman

                      My argument is that those two things you mention are in no way indicative of a mixed economy and even if they were, by your own definition, we have never been a mixed economy and neither has most of the the rest of the World.

                    • adam

                      Oh so you can use your words. How about you do that in the future with me rather than acting like a complete idiot?

                    • Gosman

                      No, I ask you to justify your nonsense by asking you questions about your position. As I pointed out your views have no basis in reality. We have NEVER had a Universal health care system based on your own definition and as for continuously obtaining knowledge that is just gobbledygook you made up. There is no basis for claiming either one of those two things are what defines a mixed economy. You just unilaterally decided to use them with no logical reason.

                    • adam

                      Wow, you can construct more than one sentence.

                      Bloody nora – break out the ticker tape!

                      By the way, your the one who argues for nonsuch, free markets and capitalism. What next Gossy faires and gnolls?

                    • Gosman

                      I have never argued for nonsuch. I don’t even know what nonsuch is.

    • corodale 13.3

      Jane Kelsey covers this clearly in her book Fire Economcy. There are four or so major Acts to change, plus international agreements. This would require a minimum of several terms of govt under democratic Select Committe process. A credit rating dark age. And equally brutal and prolonged media attack. Direct control from Finance Minister in response to National Crisis (eg. housing, poverty) is about the only way. Independant foreign policy is a good start. And this term of austerity will also help, to beat the public down into a mood for anarchy.

  14. the other pat 14

    “here is plenty of wriggle room. Helen Clark and Michael Cullen left the accounts in outstanding shape and National’s parsimonious nature has kept debt relatively low.”
    um am i getting types of debt confused?….clarke and co left us with 8 bill in debt and the natzi party left us 100 billion and yeah i know there was earthquakes…..

  15. SaveNZ 15

    Better the government and councils borrows cheaper than use PPP’s which are expensive and restrictive and takes away control from the public. The tubes in London tried private PPP’s and now getting rid of them as they did not work.

    NZ is a small country we can not afford to pay massive premiums to private businesses for ‘accounting’ purposes.

    (In UK call PPP’s, PFI’s)

    “UK PFI debt now stands at over £300bn for projects with an original capital cost of £55bn”

    https://www.theguardian.com/commentisfree/2017/aug/30/pfi-britain-hospital-trust-debt-burden-tax

    “Conservatively estimated, the trusts appear to be paying a risk premium of about 30% of the total construction costs, just to get the hospitals built on time and to budget, a sum that considerably exceeds the evidence about past cost overruns.”

    For roads:

    This report: https://image.guim.co.uk/sys-files/Society/documents/2004/11/24/PFI.pdf

    found that PPP “contracts are considerably more expensive than the cost of conventional procurement”, resulting in higher returns for the companies running the PPP’s compared to their industry peers.

    While hard to compare because of the opaque nature of many contracts and large amounts of subcontracting out, it looked like the actual cost of capital of the PPP’s was 11% compared to Treasure borrowing of 4.5% i.e. 6.5% higher. This is supposed to represent the cost of risk transfer but in practice there was no risk transfer so it’s money for nothing.

    “In conclusion, the road projects appear to be costing more than expected as reflected in net present costs that are higher than those identified by the Highways Agency (Haynes and Roden 1999), owing to rising traffic and contract changes. It is, however, impossible to know at this point whether or not VFM (value for money) has been or is indeed likely to be achieved because the expensive element of the service contract relates to maintenance that generally will not be required for many years.”

    Overall, for both roads and hospitals they concluded there was no risk transfer and not value for money.

  16. Michelle 16

    I agree with some that have said we need to spend we need to spend wisely not willy nilly. It has become increasingly obvious we need to spend big and much of the money will go directly back into the economy and businesses which can only be good. I know we need to make sure we have money for disasters/emergencies and a contingency plan. And we can do this to but for the first time I think we should borrow if we have to, while rates are low. I don’t like borrowing or having any debt myself like many other NZers I have a mortgage and that is enough debt for me I don’t like to buy things I cant pay for I prefer to either go without or buy second hand and make do. But people need more money to survive and we are not a poor country. I think our government can take the lead by starting with paying our public servants more, fixing our run down infrastructure, investing in research and development, investing in clean green technology, investing in innovative ideas, product and services, investing in modern education to upskill NZers and prepare them for the future. Our government needs to help make our country cleaner, greener and lets be the leaders like we use to be. I have faith in NZers I believe with the right investment, leadership and plan we can do what ever we set our minds to, we have done it before and we can do it again. Lets not waste any time.

    • SaveNZ 16.1

      If the government spend the money wisely on employing Kiwi tax payers on good wages and conditions to deliver quality service, all will be well. This has worked before for many governments.

      But now we are changing the equation, to the untried neoliberal Nat Lite way and spend money on overseas private companies to bringing in cheap labour that in subcontracted after subcontracted, with low wages and poor workmanship while the workers drive up house price and rents, take up hospital beds add to congestion and so forth, while creating poor quality products aka buildings that the rate payers then need to pay to remediate a decade later, then that government money is not well spent and actually creating bankruptcy of public services as they pay to do it, then again to remediate it, while creating low wage, high living economies.

      If they need these skilled workers for construction, why are they not paying them skilled rates aka $100k… (actually $120 – $180k so they can afford that ‘affordable Kiwibuild house, sarc) everything is a drive to the bottom, with the middle classes as the insurer’s of the risk not the corporations. If they had to pay $100k+ for a experienced construction worker then guess what makes those Kiwi apprentices look like good value.

      And HELPS decent construction firms win the contracts who have well paid experienced people, NOT the dross who undercut, relying on cutting corners or immigration scams…

      We actually have human resource firms trafficking people who are coming to NZ without even a job so that firm can ‘mark up’ their labour for profit… it’s not a good look for people who work in this country when this is becoming widespread!

      • Gosman 16.1.1

        “If the government spend the money wisely on employing Kiwi tax payers on good wages and conditions to deliver quality service, all will be well. This has worked before for many governments.”

        Which governments did this work well for?

    • Gosman 16.2

      “It has become increasingly obvious we need to spend big and much of the money will go directly back into the economy and businesses which can only be good.”

      Not at all. Sometimes having massive government spending going directly in to the economy can be very bad indeed.

      • SaveNZ 16.2.1

        Using low wages to control inflation is leading to poverty and us becoming 3rd world. Not only that, our constant foreign investment is keeping our interest rates higher than other western countries.

        Better ways are needed than 60% of people being given low wages, while other’s make a killing and speculate on our currency for a start as well as poverty and bad living conditions creating a burgeoning prison population. Meanwhile the western world has the opposite problem in many cases aka deflation.

      • corodale 16.2.2

        This Govt would make profitable investments. This is obvious to all the genuine folk at this sociallist blog. The last 9 years seem to have left you rather synical. The majority of MPs in this govt are actually genuine intellent humanitarians, a fresh change, so be happy.

        • Gosman 16.2.2.1

          I am sure everybody who invests THINKS they will make profitable investments. What will LIKELY happen is that Politicians won’t be able to help themselves to invest for political rather than economic gain. This means the investments are unlikely to be profitable long term.

  17. cleangreen 17

    What’s wrong with using prison labour to re-build our rail lines and roads again as they did in other tight times folks?
    Makes sense when against National was always saying “it is not viable”.
    Well paying contractors may not be viable, but using ‘indentured prisoners labour’ the state taxpayers are already paying them would definitely be a ‘viable’ case.

    • SaveNZ 17.1

      I would not mind as long as it was only voluntary labour aka prisoners who wanted to do it, and for minor offence prisoners only and strictly controlled. At least prisoners already have a place to live and not adding to the housing crisis!

  18. UncookedSelachimorpha 18

    Problem is, most of the discussion is completely divorced from any comprehension of how government finance and economies actually work.


    Why the federal budget is not like a household budget:

    “Until people understand the basic realities of monetary economics we cannot have a meaningful discussion of government finances. Rather than worrying about deficits and surpluses we should be asking whether the economy would benefit from greater or lesser government expenditure or taxation. “

    Repeat after me: the Australian economy is not like a household budget:

    “The federal government does not need anybody else’s money in the form of taxation or borrowing in order to spend. They can create money. The reason they tax and borrow is to take money out of the economy so that their spending does not cause inflation or affect official interest rates. In other words, taxation and government debt are tools for economic management, not for revenue raising.”

    • Gosman 18.1

      Yes, that is what they all think until it all turns in to a Hyper-inflationary mess.

      • Tricledrown 18.1.1

        Gooseman so where is that hyper inflation going to come from when we have an open economy and inflation is what most economies want to happen to encourage savings over borrowing.
        Poor wage growth leads to more borrowing and speculation.

        • Gosman 18.1.1.1

          Inflation does not encourage savings over borrowing. In fact the opposite can occur.

          • Tricledrown 18.1.1.1.1

            Gooseman you know nothing except how to disagree with everyone including yourself.
            The Japanese economy trying to reinflate their economy to get some growth.
            US economy is experiencing inflation from growth.

      • Nic the NZer 18.1.2

        Hyper inflations are supply side phenomena. That is why economies under sanctions are the ones which exhibit extreme inflation rates.

        • Pat 18.1.2.1

          something not to be discounted in a world of diminishing resources and fiat currency….especially in a net import economy.

        • Gosman 18.1.2.2

          No they aren’t. This is just made up explanation to explain the outcome of bad fiscal and monetary policies by a nation. Please explain how sanctions lead to Hyper-inflation.

          • Nic the NZer 18.1.2.2.1

            Have you never seen the inflation rates in countries under sanctions? Recently for example Iran. Often abates with sanction lifting too.

            • Gosman 18.1.2.2.1.1

              Ummm… you are mistaking causation with correlation.

              Please explain HOW sanctions lead to hyper-inflation because I can give you plenty of examples of countries under sanctions regimes where they don’t suffer hyper-inflation.

              https://www.jstor.org/stable/25602947?seq=1#page_scan_tab_contents

              • Pat

                “Can’ lead to (hyper)inflation….simple supply and demand, especially for necessities….reduce supply and you essentially create a bidding war…countries under sanction may not produce all necessities although sanctions are usually targeted to mitigate this risk.

              • Nic the NZer

                Sure, so sanctions restrict availability of certain goods. This leads to price hikes by suppliers who ration their ability to on supply those goods. Price hikes are counted under inflation.

                No, I did not say sanctions always cause hyper-inflation. But there have been many examples of countries hitting around the 50% per anum mark for multiple years.

  19. Michael 19

    Labour may be in office but it is not in power. The Budget Responsibility Rules are a neoliberal straitjacket that Labour (and the Greens) donned voluntarily in an effort to suck up to the “business community” last year. While the fatcats (and the narrow-minded, grasping and venal collection that comprise our “small-business community”) spurned Labour’s overtures, they will insist that the government takes no action to relieve pressing social problems because to do so will “damage business confidence”. Labour is hoist on its own petard: by wanting to appear friends to everyone, it ends up satisfying no one.

  20. Cynical Jester 20

    I don’t understand why we have a labour led govt if they won’t do things that labour led govts are elected to do, and don’t blame NZF it’s labours own cowardice

    When this government was formed it promised systemic change. So far it has a D- score on delivering change. I’m tired of speeches and promises and so is the electorate. Homelessness and mental health has been basically untouched by this government.

    It’s a case of dammed if you do and dammed if you don’t.

    I’d rather a one term government that really tried to change things rather than a government that is more interested in staying in power like this government.

    They might be voted out if they ditch it, they might be voted out if they don’t. Labour has wasted nearly a third of this term (the only guaranteed term they have ) trying to be a continuation of the Clark years. Pull finger and do something. Noone wants Jacinda to be like Helen Clark, my generation voted for change , so let’s ACTUALLY do this no more speeches , no more promises just do it or you must change your name to the Liberal party and keep the status quo. Labour govts are reforming governments so stop acting like National and let’s do this…

    • greywarshark 20.1

      CynicalJester
      We have reached High Noone i think. Time to step out into the street, face the problems, look them in the eye (which Labour has had time to do)and take them on and vanquish them. Do one of those fancy comedic fights where the guy looks like he’s going to adopt some ritual moves for attack, and while he is waving one hand in the air, he punches his opponent in the stomach with the other while he isn’t paying attention, or kicks his legs from under him.

      Sp come on Labour,. come up with your practical, pragmatic moves and confuse the monster with some theatrical moves that excite the snoring or anoyed citizens. The monster? – (probably a bunch of bureaucrats highly paid to be Sir Humphreys). If necessary use the Troy horse subterfuge and surprise. ‘No-one expects the Spanish Inquisition’ said the Pythons. Or turn the political game into a French farce where they do get to bed together and give us some laughs. Do a Winston, he just laughed at everyone and said you don’t know what you are talking about to opposition, and went ahead and got some of his projects through.

      Do something Labour, we paid our moneys and took our chances, but now we expect you to deliver the goods and to do that you must play at being real politicians.

    • Draco T Bastard 20.2

      +111

  21. Craig H 21

    Labour and the Greens agreed to the fiscal straitjacket to basically alleviate business concerns, and now business are whining like little so-and-sos because Labour are going to act like its name and enact labour-friendly employment law amendments. Stuff ’em, says I – cast off the straitjacket and make business really whine.

    • Gosman 21.1

      Why did Labour and The Greens want to alleviate business concerns in the first place?

  22. Nic the NZer 22

    Mickey once again profers the myth that Labours prior surpluses were a bastion of economic responsibility. The truth is rather more of a mixed bag.

    When the government is running a surplus it is, by accounting, reducing the income of the non government sector (e.g the economy). If the economy is going to have income growth then (ignoring the external sector, which wasn’t helping at the time) this additional spending must be coming from a rising private sector debt level. So the surpluses happen on the basis of rising debt on a shrinking income.

    Surpluses and deficits are a political game. Truely wise economic management looks at the impact of government spending on the overall economy (and society).

  23. corodale 23

    V.good little article. “Labour’s caution is motivated by political concerns rather than economic concerns…”

    Yes, its the image of responsable-house-keeper that will sway voters to re-elect her, now in the mid-term.

    If she can admit she was wrong about austerity, close to election, she can show she is human and developing, still worthy of a second chance. The Govt will then be ready with the experience to apply real change.

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    The mediocrity who stands to be a Prime Minister has a litany.He uses it a bit like a Koru Lounge card. He will brandish it to say: these people are eligible. And more than that, too: These people are deserving. They have earned this policy.They have a right to this policy. What ...
    More Than A FeildingBy David Slack
    3 days ago
  • More “partnerships” (by the look of it) and redress of over $30 million in Treaty settlement wit...
    Buzz from the Beehive Point of Order has waited until now – 3.45pm – for today’s officially posted government announcements.  There have been none. The only addition to the news on the Beehive’s website was posted later yesterday, after we had published our September 26 Buzz report. It came from ...
    Point of OrderBy Bob Edlin
    3 days ago
  • ALEX HOLLAND: Labour’s spending
    Alex Holland writes –  In 2017 when Labour came to power, crown spending was $76 billion per year. Now in 2023 it is $139 billion per year, which equates to a $63 billion annual increase (over $1 billion extra spend every week!) In 2017, New Zealand’s government debt ...
    Point of OrderBy poonzteam5443
    3 days ago
  • If not now, then when?
    Labour released its fiscal plan today, promising the same old, same old: "responsibility", balanced books, and of course no new taxes: "Labour will maintain income tax settings to provide consistency and certainty in these volatile times. Now is not the time for additional taxes or to promise billions of ...
    No Right TurnBy Idiot/Savant
    3 days ago
  • THE FACTS:  77% of Kiwis believe NZ is becoming more divided
    The Facts has posted –        KEY INSIGHTSOf New Zealander’s polled: Social unity/division 77%believe NZ is becoming more divided (42% ‘much more’ + 35% ‘a little more’) 3%believe NZ is becoming less divided (1% ‘much less’ + 2% ‘a little less’) ...
    Point of OrderBy poonzteam5443
    3 days ago
  • Gordon Campbell on the cynical brutality of the centre-right’s welfare policies
    The centre-right’s enthusiasm for forcing people off the benefit and into paid work is matched only by the enthusiasm (shared by Treasury and the Reserve Bank) for throwing people out of paid work to curb inflation, and achieve the optimal balance of workers to job seekers deemed to be desirable ...
    3 days ago
  • Wednesday’s Chorus: Arthur Grimes on why building many, many more social houses is so critical
    New research shows that tenants in social housing - such as these Wellington apartments - are just as happy as home owners and much happier than private tenants. Photo: Lynn Grieveson / The KākāTL;DR: The election campaign took an ugly turn yesterday, and in completely the wrong direction. All three ...
    The KakaBy Bernard Hickey
    3 days ago
  • Old habits
    Media awareness about global warming and climate change has grown fairly steadily since 2004. My impression is that journalists today tend to possess a higher climate literacy than before. This increasing awareness and improved knowledge is encouraging, but there are also some common interpretations which could be more nuanced. ...
    Real ClimateBy rasmus
    3 days ago
  • Bennie Bashing.
    If there’s one thing the mob loves more than keeping Māori in their place, more than getting tough on the gangs, maybe even more than tax cuts. It’s a good old round of beneficiary bashing.Are those meanies in the ACT party stealing your votes because they think David Seymour is ...
    Nick’s KōreroBy Nick Rockel
    3 days ago
  • The kindest cuts
    Labour kicks off the fiscal credibility battle today with the release of its fiscal plan. National is expected to follow, possibly as soon as Thursday, with its own plan, which may (or may not) address the large hole that the problems with its foreign buyers’ ban might open up. ...
    PolitikBy Richard Harman
    3 days ago
  • Green right turn in Britain? Well, a start
    While it may be unlikely to register in New Zealand’s general election, Britain’s PM Rishi Sunak has done something which might just be important in the long run. He’s announced a far-reaching change in his Conservative government’s approach to environmental, and particularly net zero, policy. The starting point – ...
    Point of OrderBy xtrdnry
    4 days ago
  • At a glance – How do human CO2 emissions compare to natural CO2 emissions?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    4 days ago
  • How could this happen?
    Canada is in uproar after the exposure that its parliament on September 22 provided a standing ovation to a Nazi veteran who had been invited into the chamber to participate in the parliamentary welcome to Ukrainian President Zelensky. Yaroslav Hunka, 98, a Ukrainian man who volunteered for service in ...
    4 days ago
  • Always Be Campaigning
    The big screen is a great place to lay out the ways of the salesman. He comes ready-made for Panto, ripe for lampooning.This is not to disparage that life. I have known many good people of that kind. But there is a type, brazen as all get out. The camera ...
    More Than A FeildingBy David Slack
    4 days ago
  • STEPHEN FRANKS: Press seek to publicly shame doctor – we must push back
    The following is a message sent yesterday from lawyer Stephen Franks on behalf of the Free Speech Union. I don’t like to interrupt first thing Monday morning, but we’ve just become aware of a case where we think immediate and overwhelming attention could help turn the tide. It involves someone ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Competing on cruelty
    The right-wing message calendar is clearly reading "cruelty" today, because both National and NZ First have released beneficiary-bashing policies. National is promising a "traffic light" system to police and kick beneficiaries, which will no doubt be accompanied by arbitrary internal targets to classify people as "orange" or "red" to keep ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Further funding for Pharmac (forgotten in the Budget?) looks like a $1bn appeal from a PM in need of...
    Buzz from the Beehive One Labour plan  – for 3000 more public homes by 2025 – is the most recent to be posted on the government’s official website. Another – a prime ministerial promise of more funding for Pharmac – has been released as a Labour Party press statement. Who ...
    Point of OrderBy Bob Edlin
    4 days ago
  • Bryce Edwards: The Vested interests shaping National Party policies
    As the National Party gets closer to government, lobbyists and business interests will be lining up for influence and to get policies adopted. It’s therefore in the public interest to have much more scrutiny and transparency about potential conflicts of interests that might arise. One of the key individuals of ...
    Democracy ProjectBy bryce.edwards
    4 days ago
  • Labour may be on way out of power and NZ First back in – but will Peters go into coalition with Na...
    Voters  are deserting Labour in droves, despite Chris  Hipkins’  valiant  rearguard  action.  So  where  are they  heading?  Clearly  not all of them are going to vote National, which concedes that  the  outcome  will be “close”. To the Right of National, the ACT party just a  few weeks  ago  was ...
    Point of OrderBy tutere44
    4 days ago
  • GRAHAM ADAMS: Will the racists please stand up?
    Accusations of racism by journalists and MPs are being called out. Graham Adams writes –    With the election less than three weeks away, what co-governance means in practice — including in water management, education, planning law and local government — remains largely obscure. Which is hardly ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Gordon Campbell on whether Winston Peters can be a moderating influence
    As the centre-right has (finally!) been subjected to media interrogation, the polls are indicating that some voters may be starting to have second thoughts about the wisdom of giving National and ACT the power to govern alone. That’s why yesterday’s Newshub/Reid Research poll had the National/ACT combo dropping to 60 ...
    4 days ago
  • Tuesday’s Chorus: RBNZ set to rain on National's victory parade
    ANZ has increased its forecast for house inflation later this year on signs of growing momentum in the market ahead of the election. Photo: Lynn Grieveson / The KākāTL;DR: National has campaigned against the Labour Government’s record on inflation and mortgage rates, but there’s now a growing chance the Reserve ...
    The KakaBy Bernard Hickey
    4 days ago
  • After a Pittsburgh coal processing plant closed, ER visits plummeted
    This is a re-post from Yale Climate Connections by Katie Myers. This story was originally published by Grist and is part of Covering Climate Now, a global journalism collaboration strengthening coverage of the climate story. Pittsburgh, in its founding, was blessed and cursed with two abundant natural resources: free-flowing rivers and a nearby coal seam. ...
    4 days ago
  • September-23 AT Board Meeting
    Today the AT board meet again and once again I’ve taken a look at what’s on the agenda to find the most interesting items. Closed Agenda Interestingly when I first looked at the agendas this paper was there but at the time of writing this post it had been ...
    4 days ago
  • Electorate Watch: West Coast-Tasman
    Continuing my series on interesting electorates, today it’s West Coast-Tasman.A long thin electorate running down the northern half of the west coast of the South Island. Think sand flies, beautiful landscapes, lots of rain, Pike River, alternative lifestylers, whitebaiting, and the spiritual home of the Labour Party. A brief word ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Big money brings Winston back
    National leader Christopher Luxon yesterday morning conceded it and last night’s Newshub poll confirmed it; Winston Peters and NZ First are not only back but highly likely to be part of the next government. It is a remarkable comeback for a party that was tossed out of Parliament in ...
    PolitikBy Richard Harman
    4 days ago
  • 20 days until Election Day, 7 until early voting begins… but what changes will we really see here?
    As this blogger, alongside many others, has already posited in another forum: we all know the National Party’s “budget” (meaning this concept of even adding up numbers properly is doing a lot of heavy, heavy lifting right now) is utter and complete bunk (read hung, drawn and quartered and ...
    exhALANtBy exhalantblog
    5 days ago
  • A night out
    Everyone was asking, Are you nervous? and my response was various forms of God, yes.I've written more speeches than I can count; not much surprises me when the speaker gets to their feet and the room goes quiet.But a play? Never.YOU CAME! THANK YOU! Read more ...
    More Than A FeildingBy David Slack
    5 days ago
  • A pallid shade of Green III
    Clearly Labour's focus groups are telling it that it needs to pay more attention to climate change - because hot on the heels of their weaksauce energy efficiency pilot programme and not-great-but-better-than-nothing solar grants, they've released a full climate manifesto. Unfortunately, the core policies in it - a second Emissions ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • A coalition of racism, cruelty, and chaos
    Today's big political news is that after months of wibbling, National's Chris Luxon has finally confirmed that he is willing to work with Winston Peters to become Prime Minister. Which is expected, but I guess it tells us something about which way the polls are going. Which raises the question: ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • More migrant workers should help generate the tax income needed to provide benefits for job seekers
    Buzz from the Beehive Under something described as a “rebalance” of its immigration rules, the Government has adopted four of five recommendations made in an independent review released in July, The fifth, which called on the government to specify criteria for out-of-hours compliance visits similar to those used during ...
    Point of OrderBy Bob Edlin
    5 days ago
  • Letter To Luxon.
    Some of you might know Gerard Otto (G), and his G News platform. This morning he wrote a letter to Christopher Luxon which I particularly enjoyed, and with his agreement I’m sharing it with you in this guest newsletter.If you’d like to make a contribution to support Gerard’s work you ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • LINDSAY MITCHELL: Alarming trend in benefit numbers
    Lindsay Mitchell writes –  While there will not be another quarterly release of benefit numbers prior to the election, limited weekly reporting continues and is showing an alarming trend. Because there is a seasonal component to benefit number fluctuations it is crucial to compare like with like. In ...
    Point of OrderBy poonzteam5443
    5 days ago
  • BRIAN EASTON: Has there been external structural change?
    A close analysis of the Treasury assessment of the Medium Term in its PREFU 2023 suggests the economy may be entering a new phase.   Brian Easton writes –  Last week I explained that the forecasts in the just published Treasury Pre-election Economic and Fiscal Update (PREFU 2023) was ...
    Point of OrderBy poonzteam5443
    5 days ago
  • CRL Progress – Sep-23
    It’s been a while since we looked at the latest with the City Rail Link and there’s been some fantastic milestones recently. To start with, and most recently, CRL have released an awesome video showing a full fly-through of one of the tunnels. Come fly with us! You asked for ...
    5 days ago
  • Monday’s Chorus: Not building nearly enough
    We are heading into another period of fast population growth without matching increased home building or infrastructure investment.Photo: Lynn Grieveson / The KākāTL;DR: Labour and National detailed their house building and migration approaches over the weekend, with both pledging fast population growth policies without enough house building or infrastructure investment ...
    The KakaBy Bernard Hickey
    5 days ago
  • Game on; Hipkins comes out punching
    Labour leader Chris Hipkins yesterday took the gloves off and laid into National and its leader Christopher Luxon. For many in Labour – and particularly for some at the top of the caucus and the party — it would not have been a moment too soon. POLITIK is aware ...
    PolitikBy Richard Harman
    5 days ago
  • Tax Cut Austerity Blues.
    The leaders have had their go, they’ve told us the “what?” and the “why?” of their promises. Now it’s the turn of the would be Finance Ministers to tell us the “how?”, the “how much?”, and the “when?”A chance for those competing for the second most powerful job in the ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • MIKE GRIMSHAW:  It’s the economy – and the spirit – Stupid…
    Mike Grimshaw writes – Over the past 30-odd years it’s become almost an orthodoxy to blame or invoke neoliberalism for the failures of New Zealand society. On the left the usual response goes something like, neoliberalism is the cause of everything that’s gone wrong and the answer ...
    Point of OrderBy poonzteam5443
    6 days ago
  • 2023 SkS Weekly Climate Change & Global Warming News Roundup #38
    A chronological listing of news and opinion articles posted on the Skeptical Science Facebook Page during the past week: Sun, Sep 17, 2023 thru Sat, Sep 23, 2023. Story of the Week  Opinion: Let’s free ourselves from the story of economic growth A relentless focus on economic growth has ushered in ...
    6 days ago
  • The End Of The World.
    Have you been looking out of your window for signs of the apocalypse? Don’t worry, you haven’t been door knocked by a representative of the Brian Tamaki party. They’re probably a bit busy this morning spruiking salvation, or getting ready to march on our parliament, which is closed. No, I’ve ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Climate Town: The Brainwashing Of America's Children
    Climate Town is the YouTube channel of Rollie Williams and a ragtag team of climate communicators, creatives and comedians. They examine climate change in a way that doesn’t make you want to eat a cyanide pill. Get informed about the climate crisis before the weather does it for you. The latest ...
    1 week ago
  • Has There Been External Structural Change?
    A close analysis of the Treasury assessment of the Medium Term in its PREFU 2023 suggests the economy may be entering a new phase. Last week I explained that the forecasts in the just published Treasury Pre-election Economic and Fiscal Update (PREFU 2023) was similar to the May Budget BEFU, ...
    PunditBy Brian Easton
    1 week ago
  • Another Labour bully
    Back in June, we learned that Kiri Allan was a Parliamentary bully. And now there's another one: Labour MP Shanan Halbert: The Labour Party was alerted to concerns about [Halbert's] alleged behaviour a year ago but because staffers wanted to remain anonymous, no formal process was undertaken [...] The ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Climate Change: Ignoring our biggest problem
    Its that time in the election season where the status quo parties are busy accusing each other of having fiscal holes in a desperate effort to appear more "responsible" (but not, you understand, by promising to tax wealth or land to give the government the revenue it needs to do ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • JERRY COYNE: A good summary of the mess that is science education in New Zealand
    JERRY COYNE writes –  If you want to see what the government of New Zealand is up to with respect to science education, you can’t do better than listening to this video/slideshow by two exponents of the “we-need-two-knowledge-systems” view. I’ve gotten a lot of scary stuff from Kiwi ...
    Point of OrderBy poonzteam5443
    1 week ago

  • New community-level energy projects to support more than 800 Māori households
    Seven more innovative community-scale energy projects will receive government funding through the Māori and Public Housing Renewable Energy Fund to bring more affordable, locally generated clean energy to more than 800 Māori households, Energy and Resources Minister Dr Megan Woods says. “We’ve already funded 42 small-scale clean energy projects that ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Huge boost to Te Tai Tokerau flood resilience
    The Government has approved new funding that will boost resilience and greatly reduce the risk of major flood damage across Te Tai Tokerau. Significant weather events this year caused severe flooding and damage across the region. The $8.9m will be used to provide some of the smaller communities and maraes ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Napier’s largest public housing development comes with solar
    The largest public housing development in Napier for many years has been recently completed and has the added benefit of innovative solar technology, thanks to Government programmes, says Housing Minister Dr Megan Woods. The 24 warm, dry homes are in Seddon Crescent, Marewa and Megan Woods says the whanau living ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Te Whānau a Apanui and the Crown initial Deed of Settlement I Kua waitohua e Te Whānau a Apanui me...
    Māori: Kua waitohua e Te Whānau a Apanui me te Karauna te Whakaaetanga Whakataunga Kua waitohua e Te Whānau a Apanui me te Karauna i tētahi Whakaaetanga Whakataunga hei whakamihi i ō rātou tāhuhu kerēme Tiriti o Waitangi. E tekau mā rua ngā hapū o roto mai o Te Whānau ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Plan for 3,000 more public homes by 2025 – regions set to benefit
    Regions around the country will get significant boosts of public housing in the next two years, as outlined in the latest public housing plan update, released by the Housing Minister, Dr Megan Woods. “We’re delivering the most public homes each year since the Nash government of the 1950s with one ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Immigration settings updates
    Judicial warrant process for out-of-hours compliance visits 2023/24 Recognised Seasonal Employer cap increased by 500 Additional roles for Construction and Infrastructure Sector Agreement More roles added to Green List Three-month extension for onshore Recovery Visa holders The Government has confirmed a number of updates to immigration settings as part of ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Poroporoaki: Tā Patrick (Patu) Wahanga Hohepa
    Tangi ngunguru ana ngā tai ki te wahapū o Hokianga Whakapau Karakia. Tārehu ana ngā pae maunga ki Te Puna o te Ao Marama. Korihi tangi ana ngā manu, kua hinga he kauri nui ki te Wao Nui o Tāne. He Toa. He Pou. He Ahorangi. E papaki tū ana ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Renewable energy fund to support community resilience
    40 solar energy systems on community buildings in regions affected by Cyclone Gabrielle and other severe weather events Virtual capability-building hub to support community organisations get projects off the ground Boost for community-level renewable energy projects across the country At least 40 community buildings used to support the emergency response ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • COVID-19 funding returned to Government
    The lifting of COVID-19 isolation and mask mandates in August has resulted in a return of almost $50m in savings and recovered contingencies, Minister of Health Dr Ayesha Verrall announced today. Following the revocation of mandates and isolation, specialised COVID-19 telehealth and alternative isolation accommodation are among the operational elements ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Appointment of District Court Judge
    Susie Houghton of Auckland has been appointed as a new District Court Judge, to serve on the Family Court, Attorney-General David Parker said today.  Judge Houghton has acted as a lawyer for child for more than 20 years. She has acted on matters relating to the Hague Convention, an international ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government invests further in Central Hawke’s Bay resilience
    The Government has today confirmed $2.5 million to fund a replace and upgrade a stopbank to protect the Waipawa Drinking Water Treatment Plant. “As a result of Cyclone Gabrielle, the original stopbank protecting the Waipawa Drinking Water Treatment Plant was destroyed. The plant was operational within 6 weeks of the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt boost for Hawke’s Bay cyclone waste clean-up
    Another $2.1 million to boost capacity to deal with waste left in Cyclone Gabrielle’s wake. Funds for Hastings District Council, Phoenix Contracting and Hog Fuel NZ to increase local waste-processing infrastructure. The Government is beefing up Hawke’s Bay’s Cyclone Gabrielle clean-up capacity with more support dealing with the massive amount ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Taupō Supercars revs up with Government support
    The future of Supercars events in New Zealand has been secured with new Government support. The Government is getting engines started through the Major Events Fund, a special fund to support high profile events in New Zealand that provide long-term economic, social and cultural benefits. “The Repco Supercars Championship is ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • There is no recession in NZ, economy grows nearly 1 percent in June quarter
    The economy has turned a corner with confirmation today New Zealand never was in recession and stronger than expected growth in the June quarter, Finance Minister Grant Robertson said. “The New Zealand economy is doing better than expected,” Grant Robertson said. “It’s continuing to grow, with the latest figures showing ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Highest legal protection for New Zealand’s largest freshwater springs
    The Government has accepted the Environment Court’s recommendation to give special legal protection to New Zealand’s largest freshwater springs, Te Waikoropupū Springs (also known as Pupū Springs), Environment Minister David Parker announced today.   “Te Waikoropupū Springs, near Takaka in Golden Bay, have the second clearest water in New Zealand after ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More support for victims of migrant exploitation
    Temporary package of funding for accommodation and essential living support for victims of migrant exploitation Exploited migrant workers able to apply for a further Migrant Exploitation Protection Visa (MEPV), giving people more time to find a job Free job search assistance to get people back into work Use of 90-day ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Strong export boost as NZ economy turns corner
    An export boost is supporting New Zealand’s economy to grow, adding to signs that the economy has turned a corner and is on a stronger footing as we rebuild from Cyclone Gabrielle and lock in the benefits of multiple new trade deals, Finance Minister Grant Robertson says. “The economy is ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Funding approved for flood resilience work in Te Karaka
    The Government has approved $15 million to raise about 200 homes at risk of future flooding. More than half of this is expected to be spent in the Tairāwhiti settlement of Te Karaka, lifting about 100 homes there. “Te Karaka was badly hit during Cyclone Gabrielle when the Waipāoa River ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Further business support for cyclone-affected regions
    The Government is helping businesses recover from Cyclone Gabrielle and attract more people back into their regions. “Cyclone Gabrielle has caused considerable damage across North Island regions with impacts continuing to be felt by businesses and communities,” Economic Development Minister Barbara Edmonds said. “Building on our earlier business support, this ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New maintenance facility at Burnham Military Camp underway
    Defence Minister Andrew Little has turned the first sod to start construction of a new Maintenance Support Facility (MSF) at Burnham Military Camp today. “This new state-of-art facility replaces Second World War-era buildings and will enable our Defence Force to better maintain and repair equipment,” Andrew Little said. “This Government ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Foreign Minister to attend United Nations General Assembly
    Foreign Minister Nanaia Mahuta will represent New Zealand at the 78th Session of the United Nations General Assembly (UNGA) in New York this week, before visiting Washington DC for further Pacific focussed meetings. Nanaia Mahuta will be in New York from Wednesday 20 September, and will participate in UNGA leaders ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Midwives’ pay equity offer reached
    Around 1,700 Te Whatu Ora employed midwives and maternity care assistants will soon vote on a proposed pay equity settlement agreed by Te Whatu Ora, the Midwifery Employee Representation and Advisory Service (MERAS) and New Zealand Nurses Association (NZNO), Minister of Health Dr Ayesha Verrall announced today. “Addressing historical pay ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand provides support to Morocco
    Aotearoa New Zealand will provide humanitarian support to those affected by last week’s earthquake in Morocco, Foreign Minister Nanaia Mahuta announced today. “We are making a contribution of $1 million to the International Federation of Red Cross and Red Crescent Societies (IFRC) to help meet humanitarian needs,” Nanaia Mahuta said. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government invests in West Coast’s roading resilience
    The Government is investing over $22 million across 18 projects to improve the resilience of roads in the West Coast that have been affected by recent extreme weather, Prime Minister Chris Hipkins confirmed today.  A dedicated Transport Resilience Fund has been established for early preventative works to protect the state ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Government invests in Greymouth’s future
    The Government has today confirmed a $2 million grant towards the regeneration of Greymouth’s CBD with construction of a new two-level commercial and public facility. “It will include a visitor facility centred around a new library. Additionally, it will include retail outlets on the ground floor, and both outdoor and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Nanaia Mahuta to attend PIF Foreign Ministers’ Meeting
    Foreign Minister Nanaia Mahuta will attend the Pacific Islands Forum (PIF) Foreign Ministers’ Meeting, in Suva, Fiji alongside New Zealand’s regional counterparts. “Aotearoa New Zealand is deeply committed to working with our pacific whanau to strengthen our cooperation, and share ways to combat the challenges facing the Blue Pacific Continent,” ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • PREFU shows no recession, growing economy, more jobs and wages ahead of inflation
    Economy to grow 2.6 percent on average over forecast period Treasury not forecasting a recession Inflation to return to the 1-3 percent target band next year Wages set to grow 4.8 percent a year over forecast period Unemployment to peak below the long-term average Fiscal Rules met - Net debt ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • New cancer centre opens in Christchurch
    Prime Minister Chris Hipkins and Minister of Health Dr Ayesha Verrall proudly opened the Canterbury Cancer Centre in Christchurch today. The new facility is the first of its kind and was built with $6.5 million of funding from the Government’s Infrastructure Reference Group scheme for shovel-ready projects allocated in 2020. ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Government invests in top of the south’s roading resilience
    $12 million to improve the resilience of roads in the Nelson, Marlborough and Tasman regions Hope Bypass earmarked in draft Government Policy Statement on land transport $127 million invested in the top of the south’s roads since flooding in 2021 and 2022 The Government is investing over $12 million to ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • New Zealanders continue to support the revitalisation of te reo as we celebrate Te Wiki o te Reo Mā...
    Ko tēnei te wiki e whakanui ana i tō tātou reo rangatira. Ko te wā tuku reo Māori, e whakanuia tahitia ai te reo ahakoa kei hea ake tēnā me tēnā o tātou, ka tū ā te Rātū te 14 o Mahuru, ā te 12 o ngā hāora i te ahiahi. ...
    BeehiveBy beehive.govt.nz
    3 weeks ago

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