web analytics

Selling assets to finance current account deficit = good?

Written By: - Date published: 2:00 pm, October 20th, 2010 - 54 comments
Categories: overseas investment - Tags: ,

I’m generally a fan of Gareth Morgan, but boy his facts are wrong in yesterday’s Herald column, and those false premises lead him to really bad conclusions. Basically, Morgan is trying to argue that we have to let foreigners buy our assets because if we don’t then they won’t buy our currency and lend us the money to buy more in imports than we make from exports. Morgan doesn’t explain why it’s a bad thing to not be able to fund overspending:

“Foreigners who sell us the imports we covet don’t really want to be paid in our quaint currency. So a pass-the- parcel process occurs until some foreigner is found who will either extend us credit (by holding our Reserve Bank’s IOUs) or buys one of our assets, thus giving us the foreign currency to buy those imports we crave…
… The only way this reality might come to an end is for the NZ dollar to fall so far that the price of imports we hanker for becomes sufficiently expensive that we pull our heads in and live within our (income) means.
That prospect is so surreal it’s not worth wasting time contemplating it.”

Well, let’s clear up one thing: New Zealand does not import more than it exports. Since the global economic crisis began, we have exported more than we imported nearly every quarter – exports have exceeded imports by $6 billion in the past 18 months.

True, in recent times we have tended to import more than we export but trade deficits only became the norm in New Zealand after 1995 (see Stats Infoshare). The cause? Neoliberalism, which hollowed out our domestic manufacturing so everything remotely high tech needs to be imported and brought in inflation-targeting which has resulted in New Zealand having a relatively high interest rate, creating the carry trade, which has kept our exchange rate up making imports cheap compared to domestic products.

Morgan seems to think there’s some inherent cultural stupidity about Kiwis that made us import more than we export in the years from 1995 to 2009. In fact, we were just responding to the market signals created by neoliberalism.

“If a foreign investor thinks the price of the asset reflects an attractive entry to the prospective profits that could flow, they will want to buy it – just like anyone else. The land’s not going anywhere, of course, it remains located right where it’s always been and over time its ownership will change – sometimes foreign, sometimes not. No big deal”

Um. It is a big deal because the reason we have a current account deficit is foreign owners of New Zealand assets (like farms) exporting the profits they make, and our banking system, now 90% owned by Australia, exporting its profits. In the past year, we sent $9 billion of profits overseas while exporting $3 billion more than we imported. To make up the difference, we had to sell assets and take on more debt. Insufficient exports and too many imports isn’t nearly as much of a problem as the huge flow of profits to foreign owners of New Zealand assets, including our debt.

The truth of the matter is that we’re selling off our assets to finance the outflow of profits from the other assets we’ve already sold off.

(btw, who else is pissed off with the vacuous ‘they can’t take the land away’ line? The productive capacity of the land is what is valuable, and that’s what we lose)

Morgan then goes on about a dairy farm he owns in Brazil:

“If instead I’d invested in dairying in New Zealand I would simply have pushed land prices up and, I’m reasonably sure, have made less money. So it’s being argued by the xenophobes that a win-win for New Zealand and Brazil is worse than if I’d spent my money developing a farm up the slopes of the Southern Alps.Get real. Foreign investment is how countries develop.”

No. Foreign investment is how developing countries like Brazil develop. A country with a relatively poor domestic economy can’t generate internally the capital it needs to grow. But it only works while a country is in the development phase with high growth rates to finance the foreign investment and increase domestic incomes. New Zealand is not a developing country – it has the growth profile and, potentially, capital depth of a developed economy.

Let’s follow though Morgan’s horror scenario. He goes part of the way, then stops:

“Ban foreigners from buying our assets, though, and there certainly will be a sharp shock to the system.

If foreigners can’t use New Zealand dollars to buy New Zealand assets why would they be willing to hold New Zealand dollars?”

So what happens next? Foreigners are prevented from buying Kiwi farmland and strategic assets. Foreigners become less willing to hold Kiwi dollars, so the currency falls. That pushes up price of imports and make exports more competitive, so the current account balance improves. With less money flowing out as imports and more coming in from exports, New Zealand has more money domestically. That money can be used to fund capital development in place of foreign capital – New Zealand’s indebtedness to the rest of the world falls. Meanwhile, asset prices fall because a group of buyers has been excluded from the market, making it more affordable for Kiwis to buy them, leading to lower mortgages to the Aussie banks, and freeing up capital that was used to buy land for investment elsewhere.

We end up less indebted, with a deeper pool of domestic capital, with more competitive exports, with domestic manufacturing not being undercut buy cheaper imports, and we own our own assets. In return, you might have to buy a small LCD TV than you otherwise would have, or car rather than an SUV.

Yeah, that’s a real horror scenario, Gareth.

54 comments on “Selling assets to finance current account deficit = good?”

  1. M 1

    ‘That pushes up price of imports’

    This could breathe new life into domestic manufacturing if the price of imported stuff soars.

    How on earth will NZers be clothed and shod once the containers slow down or stop coming from China? There can’t be too many shoe manufacturers left in NZ – Minx springs to mind only because it’s been in the media a lot and there’s a custom shoe maker on the Kapiti Coast. Few people can afford designer duds and many people are unable to sew so they’ll be in a tight spot unless they have skilled family members or friends, assuming of course there are any fabrics to buy.

    • You mention shoes… When I grew up in Wainuiomata a lot of the locals were employed at the Bata factory – founded and owned, ironically, by the kind of foreign investor we do want, a fine man by the name of Frank Brugger. And those who didn’t work at Bata were employed down the road at Brugger Industries, who made fuel-efficient (better than 75%) woodburning stoves and car radiators amongst other things.

      There was hardly a pair of Kiwi feet which hadn’t at some point worn a pair of Bata Bullets, and the stoves were a feature of many homes in NZ as well as being exported all over the world.

      Frank Brugger, despite being undoubtedly the richest man in Wainuiomata and one of the wealthiest in NZ at the time (this was the 70s and early 80s, before asset-stripping and money trading made rich men out of people with no talent) but maintained a humble office in Wellington and gave, quietly and unostentatiously, to charity.

      AFAIK he never had industrial trouble at his plants – there were certainly no strikes – paid fairly and treated everyone well.

      It was the influx of cheap footwear (not that Bata Bullets were out of the reach of anyone I knew) and the collapse of the car manufacturing industry that led to the end of both these companies (there’s a Brugger Industries in Samoa, I believe, though I have no idea if they’re connected).

      No doubt Gareth Morgan would cheer the “efficiency” this represents. But Wainuiomata didn’t, in those days, need its own WINZ office which it has today. There wasn’t the domestic violence, or the other sorts of violence, which plague the place today.

      I wonder if, with a little bit of creative thinking by government – tax breaks to cover setup costs, for one thing – we couldn’t reinvigorate a community like Wainuiomata with manufacturing again. After all, as reports like this show, the “savings” from offshore manufacturing are often illusory.

      The idea that decent wages are driving manufacturing offshore is also a nonsense – wages account, on average, for 4% of the cost of manufacture in that study (which looks at US companies shifting manufacturing to South America, admittedly, so there could be differences in actual percentages if such a study were done in NZ).

      But let’s not accept the prevailing orthodoxy that there’s nothing we can do. Let’s at least look at the options, undertake some studies like that one, be a bit flexible in our tax policies instead of looking to milk the most out of everyone to hand back as illusory “tax cuts” to buy votes from a relatively tiny group of swinging voters.

      Let’s stop accepting crap like that mouthed by Morgan in that piece as being as unalterable as the laws of physics, and being too scared to challenge that orthodoxy lest we be called heretic.

      At least that’s what I’d like to do, given the chance…

      [Frank, a Czech immigrant (nowadays he’d probably be called a refugee) I believe passed away in 2000. It’s a source of regret that I didn’t tell him how much I admired him despite the assistance he gave to many community initiatives of which I was a part. I hope his family knew how many people thought him a truly great man].

      • Draco T Bastard 1.1.1

        I wonder if, with a little bit of creative thinking by government – tax breaks to cover setup costs, for one thing – we couldn’t reinvigorate a community like Wainuiomata with manufacturing again.

        Forget the tax breaks – just have the government finance it and then once its up and running hand the management over to the workers as a cooperative.

        After all, as reports like this show, the “savings” from offshore manufacturing are often illusory.

        A factory in NZ is just as efficient as the same factory in China. Sourced from local resources and selling to the local market only and it’s far more efficient. It also would be far smaller and unlikely to be making a profit but costs will be covered and the people working there will have a good living standard.

        • Rex Widerstrom 1.1.1.1

          But I like the idea of NZers (other than, but of course including, the workers in a particular business) having a financial interest in it. I think it builds a connectedness that otherwise wouldn’t exist… If I own a shoe factory and you own a market garden, if the weather means you have a bad season and I’m making a good profit out of my shoes, you can come to me for investment. I’ll do that (providing you have a sound business model) because if you go out of business, you and your employees won’t be able to buy my shoes (to use a ridiculously over-simplified example).

          A factory in NZ can be more efficient than one in China, in fact, because the Chinese one probably hasn’t been built with the same amount of ingenuity (something in which NZers excel) and most likely relies for its “efficiency” primarily on cheap labour costs.

          But while we might disagree on the exact shape of the solution we’re clearly both tired of the prevailing paradigm, as are a lot of others here. So why isn’t that seeping through to our Parliamentarians? I expect because candidate selection is tightly controlled so as to weed out any heretics who might frighten the ubiquitous “swinging voter” by proposing something different to the received “wisdom” being mouthed by the hundreds of other wannabes come election time.

          And so long as the elites keep choosing those who think and look and talk the way they do, we can’t expect change.

          • Draco T Bastard 1.1.1.1.1

            I think having control of the business is rather than just being another wage slave is enough. The idea is the people who work there can see just how well the business is going and make decisions that will affect that.

            Yeah, getting the people at the top to realise that capitalism has failed is a little difficult even though the people at the bottom already know this.

      • M 1.1.2

        Rex

        Wonderful post and a good history of Bata – I recall that no matter how dirty your shoes got the stars always shone through. NZ needs to get its manufacturing base back, employ its own people at liveable rates of pay and stop supporting the slave regime in China.

        If that were to happen then maybe we would start rising to the top of the OECD ladder again.

  2. Herodotus 2

    “…We end up less indebted, with a deeper pool of domestic capital, with more competitive exports, with domestic manufacturing not being undercut buy cheaper imports, and we own our own assets”
    So Marty what time period will this readjustment take and what unforseen consequence will be endured by us? Remember the Great Lab follow up comment regarding the economic pain that we were to endure from the ’84 changes. Agreed Lab kept promise .. There was pain !!!
    I am donot hold a degree in economics (But I do have a dart board) Whislt we have current account deficits we require overseas source of funding this will progressively get more expensive. There already are the likes of additional charges from banks as Global Liquidity Costs to cover additional borrowing costs from banks readjustments to longer term source of funds and increased local % of borrowed funds + some other targets.
    As Labour is tradable (if your reactions to this change hold true) then we loss our most unique and valuable resource human capital as they are tempted to follow the money ofshore.
    At the same time that Lab has commented on increasing wages and investing more, but no how?
    It is no good thinking that we have found a cure when the patient has already died.

  3. Bobby 3

    I agree up to a point but like Gareth you mising the next few steps

    NZ dollar devalues hence import prices increases

    Because we dont have the manufacturing capacity or expertise to produce what NZ’ers want we cant subsitute imports for NZ production

    Therefore large increases in inflation leading to a real decline in incomes, leading to all our talent going offshore leading to a cycle of declining productive, inflation and loss of talent

    But we still own the land hence can all live in thatched huts growing our own vegatables and good times will be had by all

    lesson – you cant deintegrate from the global economy unless you have something unqiue the world wants (like China has cheap labour). Unless that is the master plan – become the new China of the South Pacific?

    • Blighty 3.1

      National’s plan is to make us a low wage economy.

      And you’ve forgotten that with domestic production more competitive we can make use of a hell of a lot of idled manufacturing capital. Every city and town in this country has shuttered factories that can easily to reactiviated and equiped with new equipment.

      • Bobby 3.1.1

        Agreed you could reactivate it – but where would you buy the equipment, tools etc from?

        You would have to buy it offshore and high prices given the now weak NZD – making it uneconomic for a private enterprise to reactivate said factory

        Actually i see your master plan – the Goverment steps in and nationalises all these factories…..

        • Gosman 3.1.1.1

          Funnily enough this was the stated policy of Zanu-PF in Zimbabwe when their left wing policies destroyed their productive sector. They thought they could just command businesses to produce and threatened to nationalise any businesses which weren’t opperating at capacity.

        • bbfloyd 3.1.1.2

          Bob… so continuing to import for consumption is fine, while importing machinery/equipment for domestic production is bad? if i buy a pair of trousers made in china, then i pay for those trousers with money that i earned at my job(assuming i have one).. conversely, if i buy sewing machines made in china, then i would be paying for them from the proceeds of the clothing etc i would be selling.. when my trousers wear out(rapidly if they are chinese made, then i have to use more money out of my wages. i recoup nothing on the cost of those trousers, yet if my sewing machines wear out, then the cost will have been factored into the price i ask for my goods. and, of course, it allows me to continue earning… can you spot the difference yet?

          • Blighty 3.1.1.2.1

            Basically, Bobby is pro selling assets to pay for consumption. That’s a pretty f*cked up position.

            It’s better that we don’t learn to fish for ourselves, especially if we have to buy the fishing pole from offshore. It’s far better that we continue to pay someone else’s profits for doing the fishing, even though we have the spare capacity to fish ourselves and we can’t afford to keep buying fish from others.

            • Bobby 3.1.1.2.1.1

              I dont propose it there just no realistic alternative….the alternative outlined above would not work – thats what im pointing out as is Gareth.

              I actually agree that land should be NZ owned….

              • Colonial Viper

                Ah well when the NATs lose in 2011 we’ll show you a few realistic alternatives Bobby. Then you can watch and learn.

                Goodbye TINA hello gorgeous TARA

                There Are Real Alternatives 😀

                • Bobby

                  I look fwd to being educated!

                  Labour does do some good things – Kiwisaver is a brilliant idea – Nats stupid to prune it back. Should be expanded

                  • Herodotus

                    There are some here who comment that the current financial model (neo lib) has past its used by date, if they are correct then wait for this as if/when the world wide economy bursts and our funds go bust then where are we, at least internal investment there is something tangable to build on.
                    Kiwisaver is great for those being subsidised by those unable to benfit, more of the rich profiting from the worker.
                    Also investing the money offshore does what for promoting NZ economy? And Lab wants to greatly limit foreign investment then OK for us to invest overseas. Looks like Phil the Metronome will then have to swap sides again to keep the faith of his comments, now is Phil swinging to the right or left to keep the beat?

          • Bobby 3.1.1.2.2

            Can YOU spot the difference

            In your silly example its a consumer buying both the consumer good and the productive asset

            In the real word the productive asset is purchased by a private enterprise who need a return on that asset and who need capital to invest

            If you make it expensive to purchase input costs then prices need to rise to generate the required return, but in this high inflation, low wage utopia you created nobody can afford it.

            Hence private enterprise wont invest..there is no magic bullet here

            I have no real problem with moving away from a free trade / capitalist enivironment (despite my education and career being tied directly to it). I honestly believe humanity would be happier and our lives more meaningful if the focus of life moved from consumption, wealth to more basic needs and aims. But for it to work the WHOLE world would have to move at once. NZ cant be a leader in this…we would only be hurting ourselves.. mmm think i actually just proposed a global revolution oops

            • KJT 3.1.1.2.2.1

              Someone has to start.

            • bbfloyd 3.1.1.2.2.2

              Bob… you make far too many assumptions to have a valid point… 1) you assume any clothing i produce would be expensive. (have you a costings sheet handy?). 2)have you never heard of cottage industry? assumption 2 is that this wouldn’t be a viable option unless it could be done on a large enough scale immediately to attract investment capital… you really need to go to your local library and read up on how most businesses get off the ground..

              i appreciate your effort in putting forward an opinion, but i would prefer you spent a bit of time considering the examples i gave from a slightly wider perspective.

              a small (three/five person) clothing company would be relatively easy to set up and run, which could produce very efficiently, basic, good quality clothing at prices that would be competitive with imports on two levels.. 1)prices would beat worst, only marginally more expensive than chinese imports..2) the quality of those goods would be, without much effort at all, much higher than the imported product… meaning that it would probably fit better, as we aren’t all shaped like orientals, (which is the templates generally used for imported clothing), and also the items would tend to last much longer, which, of course, over a period of time. lets say one to two years, would result in actual savings to the consumer..

              • Bobby

                Lol – have you heard of specialisation – it is (was) the major driving force in the large increase in world GDP and standard of living over the last 200 years

                To suggest a cottage industry could get anywhere near the costs of Chinese production is laughable and shows a basic lack of knowledge of economic theory and general common sense.

                The destruction of NZ industry over the last 20 years proves my point (and these were large scale operations)

                Its not my number of assumptions that is the issue – it is your lack of understanding of basic economic conceptions that hinders your ability to interpret them

                Cottage industry as the solution….really that is hilarous!

                • bbfloyd

                  Bob… please try to read the whole post…. your cherry picking of points within is irritating.. and pointing to the status quo as justification for avoiding the issue i raised is facile semantics… if you want to discuss this intelligently, then i suggest you do more than react.

                  • Bobby

                    I did read it – and can dispute it with one word ‘specialisaiton’

                    I suggest you look the term up and learn why it such an economic driving force.

                    You are proposing a return to the 18th / 19th century…its really is laughable

                    If you proposal is so achievable why dont we see 100’s of small (3 – 5 person) clothing companies dotted around NZ? I will give you a hint the answer starts with ‘S’

              • bbfloyd

                the time to talk investment capital is once the company has achieved enough market share, and possibly by then, export potential to need significant expansion.

                • I’m in agreement with everything else you’ve written on this topic in this thread bbfloyd, but surely you’re not ruling out venture capital?

                  I know talking about the DFC is akin to goosing the vicar these days, and I don’t support bureaucrats “picking winners” and handing out taxpayer funds.

                  But when the DFC was withdrawn, the chances of a NZ startup getting venture capital went with it.

                  When I was actively in politics the lack of venture capital was the first equal complaint I heard (the other was the imbalance in the Family Court, but that’s another post). I was, frankly, amazed at how many ideas are out there that just need what is (in our terms) micro finance to produce a prototype and explore markets.

                  ABC Australia has a series called The New Inventors. Every week for an entire season they feature three product ideas that have at least some degree of potential. Converting just a third of those into businesses holds the potential to boost the country’s balance of payments (since many have export potential) and put thousands into work.

                  Australia, of course, is short of workers in the mining states so their strategy is to shift people from the non-mining states to fill the vacancies. NZ doesn’t have that luxury.

                  Just scroll through the inventions on that site and I’m certain you’ll see dozens of potential businesses. Sadly, the show often does a “where are they now” segment, and the inventors of a few series ago say they can’t find venture capital.

                  I reckon that if we incentivise genuine capitalism – taking risk in the hope of reward – and disincentivise property speculation, we’d be amazed at the explosion of inventiveness, business startups, employments and eventually exports that would result.

                  • lprent

                    Getting capital is still the biggest pain in the arse in doing startups. There are venture capitalists out there these days which is a let better than it was 15 years ago. They get an arm and a leg but are sometimes worth it. Most ventures still start with mortgaging a house…

                  • bbfloyd

                    sorry for the tardy reply rex.. no, i’m not ruling out venture capital. what i am saying though, is that historically, some of our most successful industries have started life as a “cottage industry”.. i would agree that once a business has become successful enough to look to move towards national, or international growth potential, then venture capital would be a necessary step.

                    i can easily envisage many small local businesses providing the goods we use every day at competitive prices. and making profits doing it. not large profits necessarily, but enough..

                    one of the major problems with the business models i have heard touted seem to be geared towards maximizing profit, ultimately at the expense of quality,and/or service.. i would regard this as regression rather than progression.

              • Uroskin

                Sounds exactly like Mike Baldwin’s ladies’ underwear factory on Coronation Street. Highly mythical even in soap opera terms. Delusional in real life – even at the high end (Italian underpants designers now offshore manufacturing too)

        • Rex Widerstrom 3.1.1.3

          Weak NZ dollar?! If you’re looking to buy your tools from the US there’s probably never been a better time for you (or indeed just about anyone else) to do so.

          The Australian dollar is nudging parity… of course Australians are eyeing cars and Disneyland holidays and US clothing labels bought on ebay. As usual the government has no plan to capitalise on the situation by encourging reinvigoration of the manufacturing sector. Indeed it’s lamenting the effect of parity on exports coz, you know, all Australians can do is grow food and dig holes in the ground…

          Too many people have been brought up over the past 20 years hearing this so that even those ostensibly on the left (like Australia’s present PM) treat it as though it’s writ in stone. It’s not, and if we think a little laterally then the falling US dollar could, for precisely the reasons you mention, make retooling a possibility.

          Then it’s a matter of rethinking our tax system to make property speculation unattractive and thus encourage productive investment…

          Of course I could have it completely wrong. But what annoys me is that no one (aside from a handful of people such as the report I’ve linked to above) are doing the research, and certainly not in NZ, because no one will challenge the prevailing orthodoxy.

          • Colonial Viper 3.1.1.3.1

            Just buy second hand tooling from Australia and the US. Not too expensive. Australia because they are upgrading and the US because their (non-military) industrial economy is on its last legs.

            That’s how China started.

    • KJT 3.2

      I am sure that denied imports, a whole lot of Kiwi number 8 wire entrepreneurs would soon find substitutes.

      That could well be the best thing that could happen for ordinary NZ’rs.

      We may even avoid becoming a casualty in the USA and China’s currency wars.

      Do you really think we are going to get out of debt by out exporting all the other Western nations that are trying to do the same thing.
      Not to mention getting more and more into debt from China to buy junk from China.

      • Blighty 3.2.1

        bobby and his ilk don’t believe in Kiwis’ abilities. they’re always talking down our ability to do anything ourselves.

        • Bobby 3.2.1.1

          Im sure the #8 kiwi spirit would come out in spades…im sure we would survive -we would just be a lot poorer. If thats a trade off you willing to make so be it!

          A lot of NZ’er would not make the trade off and would leave – and thats not a good thing no matter how you look at it

          • bbfloyd 3.2.1.1.1

            you mean they aren’t leaning in droves now? they have their own suburb in perth now.. get with reality bob…

            • Bobby 3.2.1.1.1.1

              Yeah they are – but could be a lot worse. At the moment the trade off is a 50% higher salary in Australia but move away from family / friends etc. Personally thats what is stopping me

              Are you honestly suggested that if (for example) the wage difference was 100% you would not see MORE people leaving?

              • KJT

                It is the wage difference plus high costs that see people leaving.

                Everyone is going to be poorer soon as lack of resources worldwide start to bite. Oil is not the only one.

                A country that is first in the race to a sustainable economy is likely to be better, not worse off.

                It is a problem that most of the people who can actually do things (Rather than juggle money and flip burgers) have left, but if we are a leader in the new world they may be motivated to come back.

                • Bobby

                  Agree with your basic premise but as i said before being the first to go down that path will cause a lot of hurt – better to be a follower

    • Draco T Bastard 3.3

      Because we dont have the manufacturing capacity or expertise to produce what NZ’ers want we cant subsitute imports for NZ production.

      I’m getting really pissed off with the idiots spouting this line. We probably do have the expertise and the manufacturing is just a question of development from applying that expertise. It’s how every single country has developed and the ones that developed fastest are the ones that did so with government intervention – not foreign investment.

    • infused 3.4

      “Because we dont have the manufacturing capacity or expertise to produce what NZ’ers want we cant subsitute imports for NZ production”

      Wrong. It’s that we shop for the cheapest price. Manufacturing cannot compete with imports.

  4. bbfloyd 4

    talking of kiwi’s abilities… was it not kiwi can do and ingenuity that gave us the opportunities to become a successful, wealthy country? a quote that may be relevant..” to know your past is to know our future”.

    i for one am sick of our looking to a future that is no more than an echo of what has gone on in the last twenty years. time to break the cycle of stupidity.

    • Bobby 4.1

      Got us to ‘where’ today – a continious decline in the OECD rankings since we lost our direct and preferred access to UK market a few decades ago?

    • KJT 4.2

      40 years of idiots in parliament. From Muldoon who taxed sunrise industries out of existence to pay welfare to farmers, Douglas who let his mates steal everything that was not nailed down to Key who thinks we will get rich by selling the remainder of our productive assets.

      look to successful countries, not failed States like the USA and UK.

  5. ZeeBop 5

    If only! The reasons kiwis left NZ to find work, careers, returned! If only the economy was not aplace
    for foreign speculators to make profits and no capital gain taxes to crimp them. The argument that
    we would not find the capital is disingenious since all those Kiwis who left will start returning in force.
    The developers won’t mind, it will mean a booming property market. Exporters won’t mind, larger
    more consistent consumption by Kiwis is actually a bugger buffer to build off to then export.
    One thing’s for sure, we’re catch Australia.

  6. Draco T Bastard 6

    Foreign investment is how countries develop.

    That has got to be the most stupid thing I’ve ever seen any economist say. Britain didn’t develop and become a major empire through foreign investment. In fact, such investment was out and out banned and they also tended to be having wars with the people who could have done the investment.

    Foreign investment is how developing countries like Brazil develop.

    And even then it’s still not needed as they already have the capital to develop their economy. They have the people, the education and the material resources. It’d be a little slower maybe but development would still happen.

    New Zealand is not a developing country – it has the growth profile and, potentially, capital depth of a developed economy.

    Actually, I think we at the point of having to develop a stable state-economy. One that produces enough to cover what we need (with the proviso that it be within ecological limits) and no more. And we have the capital depth – it’s not money that causes development to happen.

  7. Colonial Viper 7

    Gareth Morgan needed to switch off his economics brain to write that piece. Was someone holding a piece to his head? That’s what it read like.

  8. Gareth Oxymorgan ?
    This guy has been on record about climate change etc … didn’t he write a book about it or something?
    His ideas belong with the dynasores. Economic growth is killing your children’s futures
    But what the hell no one gives a toss.
    Keep paying into Kiwi Saver you 18 year olds, Oxymorgan thinks we will have an environment worth living in when you retire.
    Humans are no smarter than yeast.

  9. john 9

    I think Gareth Morgan is a really nice guy but his social and economic opinions are the failed ones of selfish greedy neoliberalism. Just as Jesus said it’s easier for a camel to pass thru the eye of a needle
    than a rich man to get to heaven. I think Gareth’s privilege from wealth completely blinds him to the social well being of all NZers, which is don’t sell off your free hold house to buy goodies from overseas! Otherwise you’re renting someone elses house (Who lives overseas and may not even be a kiwi!)while you enjoy your imported goodies.I know which I prefer!

    • bbfloyd 9.1

      John.. i agree that morgaging our future in order to have flash new toys to play with is short sighted stupidity.. gareth does seem like a nice bloke, when he’s not expounding his economic theories that is.

Links to post

Recent Comments

Recent Posts

  • Rāhui day 4
    The kids did surprisingly well today – meltdown count was about 3, and mostly fairly short ones. (And a fourth while I was writing.) Game-wise I had a go at Fell Seal: Arbiter’s Mark. It’s a fairly standard RPG with turn-based combat and what they call a “mature storyline” (it ...
    The little pakehaBy chrismiller
    53 mins ago
  • Letter to a friend
    by Don Franks Hi David, Nice hearing from you, I’m glad to hear you’re getting by okay in these grim times. You asked how’s it going for us back here in New Zealand. You would have heard that the whole country is locked down and with breaks for exercise and ...
    RedlineBy Daphna
    2 hours ago
  • Life in Lock Down: Day 3
    . . Lock Down: Day 3 – A photo essay with observations . March 28: First day of the first weekend in Lock Down. It feels like it’s been weeks since only Level 3 was declared last Tuesday, only four days ago. Woke up this morning to RNZ; coffee; toast, ...
    Frankly SpeakingBy Frank Macskasy
    10 hours ago
  • 2020 SkS Weekly Climate Change & Global Warming News Roundup #13
    A chronological listing of news articles linked to on the Skeptical Science Facebook Page during the past week, i.e., Sun, Mar 22, 2020 through Sat, Mar 28, 2020 Articles Linked to on Facebook Sun, Mar 22, 2020 In Just 10 Years, Warming Has Increased the Odds of Disasters by Chelsea Harvey, ...
    19 hours ago
  • Rāhui day 3
    I’m here in lockdown with my flatmate and her two girls (6 and 2) and it. is. a time. They’re usually really active so to start with the only boardgame in the house is the copy of Guess Who that the 6 year old got for her birthday. Flatmate commented ...
    The little pakehaBy chrismiller
    1 day ago
  • A test of civil society.
    The CV-19 (COVID) pandemic has seen the imposition of a government ordered national quarantine and the promulgation of a series of measures designed to spread the burden of pain and soften the economic blow on the most strategically important and most vulnerable sectors of society. The national narrative is framed ...
    KiwipoliticoBy Pablo
    1 day ago
  • Life in Lock Down: Day 2
    . . Lock Down: Day 2 – A photo essay with observations . March 27 – Day 2 of our Strange New World. The Park and Ride near my suburb, usually filled with hundreds of vehicles, had just… four; . . Another drive into Wellington City on a highway nearly ...
    Frankly SpeakingBy Frank Macskasy
    1 day ago
  • How Do You Feel? What Do You Think?
    Fortune's Children: Under extraordinary pressure, the leader of the Government and the leader of the Opposition will each show us what they are made of. Have they been blessed with intelligence, grace, wit, poise, toughness, empathy and humour – and in what measure? More importantly, to what extent have they ...
    2 days ago
  • Landlords are NOT an essential service
    If you’ve ever had the misfortune of having to rent a property on the open market in New Zealand, which is one of the most expensive in the entire world, you’ll likely be keenly aware of just how arrogant and entitled landlords and their real estate agents can be.Unfortunately for ...
    2 days ago
  • A “new Society” post-COVID19 will definitely emerge. The question is: on what path?
    Society-wise, aside from the specific morbidity shall we say of the medically-oriented aspects of this COVID-19 crisis, what is unfolding before the world is in more than one way an instructive study of humanity and reactions to a high intensity, high stress environment in real time. Friends, we are at ...
    exhALANtBy exhalantblog
    2 days ago
  • Raise the Bar: Everything you need to know about the wage subsidy
    Right now low waged and insecure workers are feeling the economic brunt of the looming #Covid19 Recession. In response legal advocate Toby Cooper* and hospitality and worker’s rights advocate Chloe Ann-King, are putting together a series of legal blogs about your employment rights: In this legal blog we outline some ...
    PosseBy chloeanneking
    2 days ago
  • The massacre of prisoners in Modelo jail, Bogota, March 21
    by Equipo Jurídico Pueblos and Gearóid Ó Loingsigh (25/03/2020) An escape plan in question On the night of March 21st and the early morning of the 22nd, the forces of the Colombian state stormed into the Modelo prison in Bogotá, murdering 23 prisoners and injuring 83, in response to the ...
    RedlineBy Admin
    2 days ago
  • We are not America
    When the government banned semi-automatic weapons in response to a terrorist atrocity, gun-nuts were outraged. Mired in toxic American gun culture, they thought owning weapons whose sole purpose was killing people was some sort of "constitutional right", a necessity for "defending themselves" against the government. Now, the Court of Appeal ...
    No Right TurnBy Idiot/Savant
    2 days ago
  • When will we know the lockdown is working?
    Just before midnight on Wednesday March 25, Aotearoa New Zealand entered a countrywide alert level four lockdown. For at least the next four weeks, everyone who isn’t an essential worker is confined to their bubble. We are doing this to stop the explosive growth in people contracting and dying from ...
    SciBlogsBy Siouxsie Wiles
    2 days ago
  • Lock Down: Day 1
    . . Lock Down: Day 1 – A photo essay with observations . Day one of the Level 4 nationwide lock-down (or, DefCon 4 as I sometimes cheekily call it) started at 11.59PM on 25 March. For a moment, most of the nation held it’s collective breath. In that brief ...
    Frankly SpeakingBy Frank Macskasy
    2 days ago
  • A Compelling Recollection.
    Broad, Sunlit Uplands: How those words fired my young imagination! Or, perhaps, it is more accurate to say: how those words fused, in my young mind, with the image printed on every packet of Fielder’s Cornflour. Always fascinated by history, especially modern history, I cannot hear Churchill’s wonderfully evocative words, even ...
    3 days ago
  • The Warehouse – where everyone gets a virus
    . . 24 March 2020 9.46AM Number of covid19 cases in Aotearoa New Zealand: 102 . As of 11.59 on Thursday, most of New Zealand will go into “lock down”. People will be expected not to travel to work; not to socialise; and to stay home. I will not be ...
    Frankly SpeakingBy Frank Macskasy
    3 days ago
  • Aggressive action to address climate change could save the world $145 trillion
    This is a re-post from Yale Climate Connections A respected research group, Project Drawdown, finds that deploying solutions consistent with meeting the Paris climate targets would cost tens of trillions of dollars globally. But crucially, those outlays would also yield long-term savings many times larger than the up-front costs. The new 2020 Drawdown ...
    3 days ago
  • After the Pandemic
    It will pass. What happens next? Not immediately, but longer term. There are many opinions, fewer certainties. Will it “change everything!” as many confidently, and contradictorily predict? In this post I look at how foresight can help bound some of the uncertainties so you can more objectively consider the future. ...
    SciBlogsBy Robert Hickson
    3 days ago
  • Coronavirus – Cuba shows the way
    We’ve been meaning t write something on Cuba and the coronavirus but have just discovered a very good article on the subject in the US left publication Jacobin.  The article looks at how Cuba, a poor country but one where capitalism has been done away with, is leading the way ...
    RedlineBy Admin
    3 days ago
  • Using privacy law to prevent the death penalty
    In 2018, El Shafee Elsheikh and Alexanda Kotey - two British citizens who had purportedly been stripped of their citizenship by the British government - were captured while fighting for Isis in Syria. The British government then conspired to hand them over to the US, and agreed to provide evidence ...
    No Right TurnBy Idiot/Savant
    3 days ago
  • It’s Time For Disaster Socialism.
    Transformers: The disaster of the Great Depression was transformed into a new and fairer society by the democratic socialism of the First Labour Government. The disaster of the Covid-19 Pandemic offers a similar transformative possibility to the Labour-NZ First-Green Government. Seize the time, Jacinda! You will never have a better ...
    4 days ago
  • Skeptical Science New Research for Week #12, 2020
    Tamper with The System? Well, we already are. But there's a difference between accidentally trickling sand into a precision gearbox versus formulating a plan to alter it on the fly with improvements in mind. One action is more or less innocently unscrupulous, the other amenable to earning an easy ...
    4 days ago
  • Avoidable hospitalisations: Helping our health system get through COVID-19
    Associate Prof George Thomson, Louise Delany, Prof Nick Wilson While it is possible that New Zealand can use intense public health controls to eradicate COVID-19 from the country – we must also plan for other scenarios where thousands of New Zealanders are sick – including many urgently hospitalised.1 Better resilience ...
    SciBlogsBy Public Health Expert
    4 days ago
  • Raise the Bar: 10 questions to ask your employer proposing redundancy
    Kia ora my name is Chloe Ann-King* and I am the founder of Raise the Bar, a campaign and non-profit that gives free legal aid, advocacy and tautoko to hospitality workers in Aotearoa. Right now all over our country hospo workers are being fired at will, having shifts cut or being ...
    PosseBy chloeanneking
    4 days ago
  • An equitable way to support business
    The Herald reports that the government is planning to lend billions of dollars to large businesses to keep them operating during the pandemic. As with mortgage relief, this is necessary: we need companies to stay in business, to reduce the economic damage and help things get restarted again when this ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Hard News: Together Alone
    We're about to do something unprecedented as a nation. We hope that by taking this extraordinary action before a single life in New Zealand has been lost to the deadly novel virus we will save tens of thousands of lives. Our  lives. We'll do it together, in households, in isolation ...
    5 days ago
  • Why timing is everything: ‘A time to refrain from embracing’ starts today
    “There is a time for everything,    and a season for every activity under the heavens.”So writes the author of Ecclesiastes, a book in the Old Testament that’s counted as a ‘wisdom’ book and written as if by an unnamed king of Jerusalem. But who would have thought there would be a time ...
    PunditBy Tim Watkin
    5 days ago
  • Dealing with the Covid-19 Tsunami.
    I was surprised when the prime minister described the Economic Response to Covid-19 package as the ‘largest peacetime government spend in New Zealand's history’. Reflecting – checking through history – I realised that the term ‘spend’ was crucial and the package had no income tax cuts. Even so, it has ...
    PunditBy Brian Easton
    5 days ago
  • What about renters?
    The government today announced the latest part of its pandemic relief package: a six-month mortgage holiday for people whose incomes have been affected by the pandemic. Which is great, because these people are going to need help, and that's what the government should be doing. At the same time, it ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Living within our means.
    Years ago the Argentine sociologist Carlos Weisman wrote a book titled “Living within our Means.” It was a critique of Argentine society that focused on the paradoxical question of why, in a land of plenty, there was so much economic instability, inequality, corruption and political turmoil. His conclusion was basically ...
    KiwipoliticoBy Pablo
    5 days ago
  • Transparency and the pandemic
    Parliament will be leading by example and adjourning tomorrow after a special sitting to consider an epidemic notice and state of emergency. Day-to-day oversight of the government will be delegated to a select committee. But that's not the only overight mechanism. The OIA will still be law, and (so far) ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • ‘Overjoyed’: a leading health expert on New Zealand’s coronavirus shutdown, and the challengin...
    Michael Baker, University of Otago Overjoyed. That’s not a word epidemiologists normally use, but that’s how I felt after hearing Prime Minister Jacinda Ardern’s announcement about New Zealand’s COVID-19 shutdown of everything except essential services for at least four weeks from midnight on Wednesday. More than anything, I just ...
    SciBlogsBy Public Health Expert
    5 days ago
  • One way to solve the housing crisis
    How much homelessness is caused by house hoarding? We're about to find out. The pandemic has destroyed tourism, which means that house hoarders who put their hoarded properties up as short-term tourist rentals are now offering them on the ordinary rental market:Property investors are pulling properties from Airbnb to offer ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • The pros and cons of planting trees to address global warming
    This is a re-post from Yale Climate Connections by Bruce Lieberman It seems like such a simple, straightforward, empowering idea: plant trees – a lot of trees – all over the world, and watch the planet’s temperature fall. Who doesn’t love a tree or two, even far more – the right ...
    6 days ago
  • Not a grand coalition, but a government of national salvation
    According to Newshub, Simon Bridges is open to joining a “grand coalition” with Labour as we hunker down to go into a month long lockdown. The idea is sound. Before now, the role of the opposition was to scrutinise and oppose. In the context of what almost amounts to a ...
    PunditBy Liam Hehir
    6 days ago
  • Raise the Bar: hospitality workers & wage subsidy entitlements
    Kia ora my name is Chloe Ann-King* and I am the founder of Raise the Bar, a campaign and non-profit that gives free legal aid, advocacy and tautoko to hospitality workers in Aotearoa. Right now all over our country hospo workers are being fired at will, having shifts cut or ...
    PosseBy chloeanneking
    6 days ago
  • Lifting our game against COVID-19
    We need to be lifting our game against COVID-19. You and I need to help those working to prevent the spread of COVID-19 while they’re trying to lift the testing and treatment efforts. We don’t want to be playing this game running backwards. Best to play it solidly forward, from ...
    SciBlogsBy Grant Jacobs
    6 days ago
  • The maths and ethics of minimising COVID-19 deaths in NZ
    Prof Tony Blakely, Prof Michael Baker, and Prof Nick Wilson The NZ Government must do more to clearly articulate its COVID-19 strategy: eradication or ‘flattening the curve’ mitigation. But to do so means understanding the maths and ethics of both these strategies. In this blog, we adapt our work for ...
    SciBlogsBy Public Health Expert
    6 days ago
  • All aboard the Covid Train
    A few days ago I was starting to write something about the pandemic, which now seems unconscionable. It took the form of a letter to an agony aunt:“Dear Deidre, I have an ugly confession. I am quite excited by Covid-19.”This is how the piece went:“I’m not a psychopath, honest. Although the ...
    PunditBy Phil Vine
    6 days ago
  • 2020 SkS Weekly Climate Change & Global Warming Digest #12
    Story of the Week... Toon of the Week... Climate Feedback Article Review... Coming Soon on SkS... Climate Feedback Claim Reviews... SkS Week in Review... Poster of the Week... Story of the Week... In Just 10 Years, Warming Has Increased the Odds of Disasters The likelihood of extreme events ...
    6 days ago
  • We are all socialists now
    Last week, the government announced a $12 billion initial package to support people during the pandemic. Today, the Reserve Bank is buying government bonds - effectively printing money - to keep up the money supply during the crisis. Normally such moves would have the right apoplectic. Instead, the National Party ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • A plea to experts: safeguard your role in public life
    I am a pundit, somebody who opines and comments on the news. There are no real qualifications to punditry though having a rudimentary way with words and good general knowledge helps. That is one reason there is a constant oversupply of would-be pundits and why it is quite hard to ...
    PunditBy Liam Hehir
    1 week ago
  • Enlightenment when?
    I recently encountered the following prescription from a Faculty of Education at a leading New Zealand University. At first I wondered if it was another product of the postmodern generator (http://www.elsewhere.org/journal/pomo/), designed to create gibberish in the postmodern form, but I’m told it is real: The “schooled” society: Towards the ...
    SciBlogsBy Michael Corballis
    1 week ago
  • What the Crisis Can teach Us
    The coronavirus pandemic has of course had a major impact on individual lives and on societies as a whole. But, long after the crisis has passed (assuming it does), we will begin to realise that its real and lasting significance lies in the lessons it has taught us, if only ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • Hammering home measures to stop COVID-19
    COVID-19 has plunged Aotearoa New Zealand (indeed, the world) into territory that, while maybe not totally unprecedented, certainly hasn’t been seen during the lifetimes of most of us here today. Our borders are closed to non-citizens, we’re being told not to gather in groups of more than 500 outside/100 inside, ...
    PunditBy Andrew Geddis
    1 week ago
  • What does ‘level two’ mean – and why does it matter?
    For the last few weeks, I’ve been urging you to prepare yourself, your family, business, and community for Covid-19. Now it’s time for real action.  Yesterday the director-general of health Dr Ashley Bloomfield announced another 13 confirmed cases of Covid-19 in New Zealand, bringing our total to date to 52. ...
    SciBlogsBy Siouxsie Wiles
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming News Roundup #12
    A chronological listing of news articles linked to on the Skeptical Science Facebook Page during the past week, i.e., Sun, Mar 15, 2020 through Sat, Mar 21, 2020 Editor's Pick Now Isn’t the Time to Forget About Our Climate Change Efforts   Tasha Tilberg, Lindsey Wixson, and Liu Wen photographed ...
    1 week ago
  • Is the Guardian becoming  a real newspaper again?
    by Jan Rivers The article has been corrected to show that it was Ewen MacAskill, former Guardian journalist and not Luke Harding who travelled to meet Edward Snowden with journalist Glenn Greenwald and filmmaker Laura Poitras.  Some of the Guardian’s well-known journalists who did not sign the protest letter are ...
    RedlineBy Daphna
    1 week ago
  • Life asserts itself regardless
    by Cultural Worker Late March 2020 amidst the virus. With gigs crashing and burning all around it was without much hope that I called a long standing rest home booking: “ Hi, I’m supposed to be entertaining at your place this afternoon – is it still on?” “”If you don’t ...
    RedlineBy Daphna
    1 week ago
  • Politics, the possible, and the pandemic
    Whenever people demand real change from their politicians, we're told that "politics is the art of the possible". The implication is that change isn't possible, so we'd better just get used to the sucky status quo. But now that there's a pandemic, a lot of things we were previously told ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • The Only Way Through This Crisis Is Together.
    Together: In leading New Zealand through the Covid-19 Pandemic, the Prime Minister could do a lot worse than allow herself to be guided by the spirit of collective sacrifice and co-operation that animated the New Zealanders of 80 years ago. Most Kiwis alive today have had no opportunity to prove their ...
    1 week ago
  • GFC vs Covid-19
    It is said that generals fight the last war. In the case of the early stages of the Global Financial Crisis (GFC) they had learned from the Great Depression of the 1930s and they fought intelligently and successfully. Later their advice would be ignored in favour of the Austerians who ...
    PunditBy Brian Easton
    1 week ago
  • Nobody Left Behind.
    Solidarity Forever: All over the world, the arrival of the Covid-19 virus has exposed the fragility of the walls we erect around ourselves and our loved ones. It has shattered our illusions of autonomy and revealed to us how utterly dependent we all are on other human-beings. Finally, we see ...
    1 week ago
  • Rebuilding a truly “Democratic” counter, or a “moderate Republican” bolt-hol...
    Looking across the various arguments for/against the leading candidates to take the Democratic Nomination, you might honestly be very hard pressed to tell. There are a number of things that have now started happening since Amy Klobuchar and “Mayor Pete” Buttigieg both threw the towel in and immediately (and ...
    exhALANtBy exhalantblog
    1 week ago
  • Abortion law reform a win for women
    by Daphna Whitmore Abortion is no longer in the Crimes Act in New Zealand. The law reform passed yesterday and now abortion is a medical matter between a woman and her doctor. Many women’s groups and progressive people have campaigned for reform for decades. The women’s liberation movement and some ...
    RedlineBy Daphna
    1 week ago
  • How to spot bogus science stories and read the news like a scientist
    Doug Specht, University of Westminster and Julio Gimenez, University of Westminster When fake news, misreporting and alternative facts are everywhere, reading the news can be a challenge. Not only is there plenty of misinformation about the coronavirus pandemic, climate change and other scientific topics floating around social media, you also ...
    SciBlogsBy Guest Author
    1 week ago
  • Why New Zealand needs to continue decisive action to contain coronavirus
    Michael Baker, University of Otago and Nick Wilson, University of Otago With some of the toughest border restrictions and a newly-announced NZ$500 million boost to health services, New Zealand is among a small number of countries with a strategy to contain the COVID-19 pandemic. New Zealand is also fortunate in ...
    SciBlogsBy Public Health Expert
    1 week ago
  • Parliament and the pandemic II
    As expected, the government has introduced a sessional order to allow Parliament to operate during the pandemic. You can read it on the Order Paper here, but the short version is that questions and motions can be filed electronicly, select committees can work remotely, and the the Business Committee can ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • When a virus goes viral: pros and cons to the coronavirus spread on social media
    Axel Bruns, Queensland University of Technology; Daniel Angus, Queensland University of Technology; Timothy Graham, Queensland University of Technology, and Tobias R. Keller, Queensland University of Technology News and views about coronavirus has spread via social media in a way that no health emergency has done before. Platforms like Twitter, Facebook, ...
    SciBlogsBy Guest Author
    1 week ago
  • How to survive 14 days of self-isolation
    So you’ve recently returned from overseas, come into contact with someone who tested positive, got a bit of a dry cough yourself or perhaps just want to self isolate for 14 days to avoid other people who might have COVID-19. Here are a few tips and tricks to help get ...
    2 weeks ago
  • Abortion Legislation Bill passes third reading
    Some fave speeches:     ...
    Boots TheoryBy Stephanie Rodgers
    2 weeks ago
  • Why Leadership Matters – More Than Anything.
    Our Good Fortune: Precisely because she has never been an ideologue (she calls herself a “pragmatic idealist”) Jacinda Ardern has a political nimbleness and spontaneity which, when infused with her exceptional emotional intelligence, produces spectacular demonstrations of leadership. Jacinda's empathic political personality contrasts sharply with the less-than-sunny ways of her ...
    2 weeks ago
  • Skeptical Science New Research for Week #11, 2020
    2 weeks ago
  • 68-51
    The Abortion Legislation Bill has just passed its third reading, 68-51. NZ First MPs bailed because their referendum amendment didn't pass, but there were plenty of MPs to provide a majority without them. The bill is a long way from perfect - most significantly, it subjects pregnant people who need ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • The ‘herd immunity’ route to fighting coronavirus is unethical and potentially dangerous
    As most of the world tries to suppress the coronavirus spread, some countries are going it alone – trying to manage the pandemic through so-called “herd immunity”. Herd immunity means letting a large number of people catch a disease, and hence develop immunity to it, to stop the virus spreading. ...
    SciBlogsBy Guest Author
    2 weeks ago
  • Eight new COVID-19 cases today. It’s no surprise when you look at some numbers
    So, as I sit at home with a very, very slight headache (i.e. not at work when I would otherwise be so), the now familiar figure of Ashley Bloomfield reports eight new confirmed cases of COVID-19  including two in Waikato. A surprise, given that we had just twelve yesterday? No. ...
    SciBlogsBy Marcus Wilson
    2 weeks ago
  • The WINZ Paradox versus the new COVID-19 Reality: Get real people, seriously…
    Many who advocated for, and voted for, the current Coalition – particularly those who voted Labour and the Green Party – expected to see a sea change in the reality of social services. A real, deep change of attitude, approach of process through which the system negotiates the difficult and ...
    exhALANtBy exhalantblog
    2 weeks ago
  • The Air New Zealand bailout
    Stuff reports that the government is going to have to throw $2 - 3 billion at Air new Zealand to get it through the pandemic. Good. While international routes are basicly closed, Air New Zealand is a strategic asset which is vital to our tourism industry, not to mentioning airfreight. ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Why NZ’s tough coronavirus travel rules are crucial to protecting lives at home and across the Pac...
    New Zealand’s border restrictions will come with significant job and business losses in the tourism sector, both at home and in the Pacific. But the new travel rules are absolutely necessary to protect the health of New Zealanders and people right across Pacific Islands, because New Zealand is a gateway ...
    SciBlogsBy Guest Author
    2 weeks ago
  • The tiniest of teeth
    Back in early 2018, as a shoddy legal tactic to try and avoid the prisoner voting ban being formally declared inconsistent with the BORA by the Supreme Court, Justice Minister Andrew Little floated the idea of greater legal protection for human rights. When the Supreme Court case didn't go the ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • One simple, common factor to success against COVID-19
    Professor Philip Hill and Associate Professor James Ussher Most infectious diseases have an Achilles heel, the secret is to find it. The question is if we don’t have a drug or a vaccine for COVID-19, is there something else we can do to beat it? Some people estimate that, without ...
    SciBlogsBy Guest Author
    2 weeks ago
  • National should isolate Simon Bridges
    The Coalition Governments $12.1 billion economic package to help combat the financial effects of COVID-19 was generally well received across the board, even amongst many business leaders who would normally be critical of a Labour led Government.However there was one glaringly obvious exception, Simon Bridges. The so-called leader of the ...
    2 weeks ago
  • How testing for Covid-19 works
    With confirmed cases of Covid-19 in New Zealand up to 12, many influential people are writing open letters and opinion pieces and doing press conferences asking why we aren’t pulling out all the stops and testing thousands of people a day like they are in South Korea. The thing is, ...
    SciBlogsBy Siouxsie Wiles
    2 weeks ago
  • The COVID-19 package and the limits of capitalism
    by Daphna Whitmore The willingness to put human life before business shows that sometimes capitalism is capable of suspending its relentless drive for profit. For a short time it can behave differently. Flatten the curve is the public health message since COVID-19 suddenly overwhelmed the hospital system in northern Italy. ...
    RedlineBy Daphna
    2 weeks ago

  • Tariff concessions on COVID-19 related products
    New Zealand will temporarily remove tariffs on all medical and hygiene imports needed for the COVID-19 response. Trade and Export Growth Minister David Parker and Commerce and Consumer Affairs Minister Kris Faafoi said today that the New Zealand Customs Service will apply tariff concessions to all diagnostic reagents and testing ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Clarification of modification to wage subsidy scheme
    Minister of Finance Grant Robertson has clarified that the changes to the wage subsidy scheme announced yesterday mean that employers should be passing on the full subsidy to workers, except in the case where the person’s normal income is less than the level of the subsidy. “We still want employers ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Face masks flowing to DHBs
    Medical face masks from the national reserve supply are now being distributed to District Health Boards, while at the same time local production is being ramped up. Yesterday more than 640,000 masks were sent to DHBS – that is an immediate two week supply, with more to follow in coming ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • COVID-19: Further steps to protect New Zealanders’ jobs
    The Government has made modifications to the wage subsidy scheme to ensure people don’t lose their jobs during the national lockdown. These changes will soften the impact of COVID-19 on workers, families and businesses, and position them to exit the lockdown and look to recovery, Finance Minister Grant Robertson says. ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Tax relief for Mycoplasma Bovis farmers
    Farmers whose herds were culled in response to the outbreak of Mycoplasma bovis will be able to minimise the tax treatment of their income in some circumstances. Revenue Minister Stuart Nash says Cabinet has agreed to change the law. It means farmers may be eligible to spread their income over ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • $27 million for NGOs and community groups to continue providing essential services
    A $27 million dollar package, effective immediately, is being provided to social sector services and community groups to ensure they can continue to provide essential support to communities as we stay at home as a nation to stop the spread of COVID-19, Minister for Social Development Carmel Sepuloni announced. “At ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Statement on guilty plea of March 15 terrorist
    “The guilty plea today will provide some relief to the many people whose lives were shattered by what happened on March 15,” Prime Minister Jacinda Ardern said. “These guilty pleas and conviction bring accountability for what happened and also save the families who lost loved ones, those who were injured, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • COVID-19 updates
    The Prime Minister is holding daily press conferences to update New Zealanders on the Government's response to COVID-19. Links to videos and transcripts of these updates below. These transcripts also include All of Government press conferences led by Director Ministry of Health's Director-General of Health Dr Ashley Bloomfield. 25 March: Live update from the Prime ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Police numbers break through 10,000 mark
    Frontline Police numbers have broken through the 10,000 mark for the first time in history as officers step forward to keep the community safe during the COVID19 lockdown. “Two Police graduations in Auckland and Wellington in the past week have been conducted in unprecedented circumstances,” Police Minister Stuart Nash said. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Urgent tax measures for economic recovery
    Urgent legislation has been passed to support the package of economic and social measures needed to recover from the impact of the coronavirus outbreak. “The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill will cushion New Zealanders from the worst economic impacts of the COVID-19 outbreak,” said Revenue Minister ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Further support for farmers and growers as drought persists
    From tomorrow, Government support for farmers and growers affected by drought will be expanded and extended across the country, with access to Rural Assistance Payments (RAPS) available throughout the North Island, parts of the South Island and the Chatham Islands, Social Development Minister Carmel Sepuloni announced. “These challenging conditions have ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19: Temporary changes to Education Act
    Parliament has passed amendments to legislation that give the Secretary of Education stronger powers to act in the fight to limit the spread of COVID-19, Education Minister Chris Hipkins said today. “They are part of a suite of changes passed under the COVID-19 Response (Urgent Management Measures) Legislation Bill,” Chris ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Canada, Australia, Chile, Brunei and Myanmar join NZ and Singapore in committing to keeping supply a...
    Canada, Australia, Chile, Brunei and Myanmar have joined forces with New Zealand and Singapore by committing to keep supply chains open and remove any existing trade restrictive measures on essential goods, especially medical supplies, in the face of the Covid-19 crisis.  Trade and Export Growth Minister David Parker today welcomed ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19: Rent increase freeze and more protection for tenants
    Immediate freeze on rent increases Tenancies will not be terminated during the lock-down period, unless the parties agree, or in limited circumstances Tenants who had previously given notice can stay in their if they need to stay in the tenancy during the lock-down period Tenants will still be able to ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Working together to protect businesses and workers
    As New Zealand unites to lock-down in the fight against COVID-19, the Finance Minister is urging all businesses and workers to stay connected over the next four weeks. “We understand the extreme pressure many businesses are under right now. I know most business owners think of their workers as family ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • State of National Emergency declared to fight COVID-19
    A State of National Emergency has been declared across the country as the Government pulls out all the stops to curtail the spread of COVID-19. “Today we put in place our country’s second ever State of National Emergency as we fight a global pandemic, save New Zealanders’ lives and prevent ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Prime Minister’s statement on State of National Emergency and Epidemic Notice
    Mr Speaker I wish to make a Ministerial Statement under Standing Order 347 in relation to the recent declaration of a State of National Emergency. Having considered the advice of the Director Civil Defence Emergency Management, the Minister of Civil Defence declared a State of National Emergency for the whole of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Deadline for domestic travel extended
    People needing to travel on domestic flights, trains and Cook Strait ferries to get home before the country moves into level 4 lock-down tomorrow night will be able to continue using the passenger services until midnight on Friday, Transport Minister Phil Twyford said today. Domestic passenger services, particularly ferries, have ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Mortgage holiday and business finance support schemes to cushion COVID impacts
    The Government, retail banks and the Reserve Bank are today announcing a major financial support package for home owners and businesses affected by the economic impacts of COVID-19. The package will include a six month principal and interest payment holiday for mortgage holders and SME customers whose incomes have been ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government working to keep air freight moving
    Minister of Transport Phil Twyford has today announced details of the Government’s support package to keep key air freight moving and ensure New Zealanders retain access to essential goods during the four-week level 4 lockdown. “The Government is working with airlines and air freight operators to ensure New Zealand’s key ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand moves to COVID-19 Alert Level 3, then Level 4 in 48 hours
    New Zealand moved up to COVID-19 Alert Level 3 – Restrict New Zealand to move up to COVID-19 Alert Level 4 – Eliminate, in 48 hours Two-staged approach to give people and businesses time to prepare  Level 3, from tomorrow Non-essential businesses must close All events and gatherings must be ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Prime Minister: COVID-19 Alert Level increased
    Good afternoon  The Cabinet met this morning to discuss our next actions in the fight against COVID-19.  Like the rest of the world, we are facing the potential for devastating impacts from this virus. But, through decisive action, and through working together, do we have a small window to get ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes significant economic decisions as NZ readies for Alert Level 4 in COVID-19 fight
    The Government is announcing significant further support for the economy, workers and businesses as the country unites to prepare for Alert Level 4 in the fight against COVID-19. Cabinet today agreed to remove the cap on the Government’s wage subsidy scheme, which will inject a further $4 billion into the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt backs RBNZ move to support economy with lower interest rates
    The Government is backing the Reserve Bank’s latest action to support the economy by reducing longer-term interest rates, meaning lower costs for businesses and mortgage holders, and a lower currency to help our exporters. The Minister of Finance has signed a memorandum of understanding and a letter of indemnity with ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Government statement on commercial cooperation during COVID-19
    The Government has asked the Commerce Commission to take account of the exceptional circumstances created by COVID-19 when monitoring business behaviour in coming weeks.   “The purpose of my request to the Commerce Commission is to make sure businesses can work together in ways that will allow them to provide ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand temporarily closes diplomatic posts in Barbados and Myanmar due to COVID-19
    The New Zealand Government has temporarily closed its High Commission in Bridgetown, Barbados and its Embassy in Yangon, Myanmar due to the COVID-19 pandemic, Foreign Minister Winston Peters says.   “Due to the increasing scarcity of air links in and out of Bridgetown and Yangon, and the pressure COVID-19 is placing ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supporting Māori communities and businesses through
    Associate Health and Whānau Ora Minister Peeni Henare has today announced the Government’s plan to support Māori communities and businesses in the face of COVID-19. “Our Government’s $12.1 billion economic package will help many Māori whānau, workers and businesses, whether it’s through wage subsidies, income support and worker redeployment, or ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Guidelines for hospitality establishments released
    The Government and the hospitality industry have worked together to produce guidelines to assist with managing and reducing transmission of COVID-19, Health Minister David Clark announced today.  The guidelines developed between the Government, Hospitality New Zealand and SkyCity Entertainment Group, set out how the new restrictions on physical distancing and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Nation steps up to COVID-19 Alert Level 2
    Four stage Alert System for COVID-19 announced New Zealand moved up to COVID-19 Alert Level 2 – Reduce Contact New Zealanders over 70 and those with certain medical conditions told to stay at home as much as they can to reduce risk of contact with the virus Workplaces to implement ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • PM Address – Covid-19 Update
    Kia ora koutou katoa I’m speaking directly to all New Zealanders today to give you as much certainty and clarity as we can as we fight Covid-19. Over the past few weeks, the world has changed. And it has changed very quickly. In February it would have seemed unimaginable to ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • NZ and Singapore commit to keeping supply and trade links open, including on essential goods and med...
    New Zealand and Singapore have jointly committed to keep supply chains open and to remove any existing trade restrictive measures on essential goods, especially medical supplies, in the face of the Covid-19 crisis. Trade and Export Growth Minister David Parker welcomed the commitment. “This is an important collective response, and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Joint Ministerial Statement by Singapore and New Zealand -Covid-19 situation
    JOINT MINISTERIAL STATEMENT BY SINGAPORE AND NEW ZEALAND AFFIRMING COMMITMENT TO ENSURING SUPPLY CHAIN CONNECTIVITY AMIDST THE COVID-19 SITUATION  The COVID-19 pandemic is a serious global crisis.  As part of our collective response to combat COVID-19, Singapore and New Zealand are committed to maintaining open and connected supply chains. We ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Transit between Australia and New Zealand
    Travel restrictions, closing our border to almost all travelers came into force from 23:59 on Thursday 19 March 2020 (NZDT).  All airlines were informed of these restrictions before they came into force. Immigration Minister Iain Lees-Galloway says “The transit of passengers between Australia and New Zealand has been agreed upon and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • $100 million to redeploy workers
    The Government has allocated $100 million to help redeploy workers affected by the economic impact of COVID-19, with the hard-hit region of Gisborne-Tairāwhiti to be the first helped, Economic Development Minister Phil Twyford, Forestry and Regional Economic Development Minister Shane Jones and Employment Minister Willie Jackson announced today. Phil Twyford ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • More support for wood processing
    The Provincial Growth Fund (PGF) is ramping up support for Tairāwhiti’s wood processing sector to bolster the region’s economy at a time of heightened uncertainty, Regional Economic Development Minister Shane Jones announced today. Following earlier announcements today of a regional support package for Tairāwhiti, Minister Jones has also announced a ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt steps in to protect Air New Zealand
    The Coalition Government has stepped in to protect Air New Zealand with a significant financial deal that protects essential routes and allows the company to keep operating. The Government and Air New Zealand have agreed a debt funding agreement through commercial 24-month loan facilities of up to $900 million*. The ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Stronger border measures to protect NZers from COVID-19
    The Government has taken further measures to protect New Zealanders from the COVID-19 virus, effectively stopping all people from boarding a plane to New Zealand from 11:59pm today, except for returning New Zealanders, Prime Minister Jacinda Ardern announced today.  New Zealanders’ partners, legal guardians or any dependent children travelling with ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Action on indoor gatherings and events to protect public health
    The Government has reinforced its commitment to protecting the health of New Zealanders from COVID-19 through the cancellation of indoor events with more than 100 people.  “Protecting the health of New Zealanders is our number one priority, and that means we need to reduce the risks associated with large gatherings,” ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealanders advised not to travel overseas
    The New Zealand Government is advising New Zealanders not to travel overseas due to COVID-19, Foreign Minister Winston Peters has announced. “We are raising our travel advice to the highest level: do not travel,” Mr Peters said. “This is the first time the New Zealand Government has advised New Zealanders ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt announces aviation relief package
    Transport Minister Phil Twyford today outlined the first tranche of the $600 million aviation sector relief package announced earlier this week as part of the Government’s $12.1 billion COVID-19 economic response. The initial part of the aviation package aims to secure the operators of New Zealand’s aviation security system, and ...
    BeehiveBy beehive.govt.nz
    1 week ago