Softening up

Written By: - Date published: 2:22 pm, March 5th, 2009 - 26 comments
Categories: ACC, economy, spin - Tags:

A few points on the ACC issue and one on Kiwirail.

Nick Smith says that, with assets of $10 and liabilities of $21 billion, if ACC were an insurance company it would have gone under years ago. But it’s not an insurance company. Because its costs can be met by the sovereign revenue raising power of the Crown, it doesn’t need to be solvent any more than WINZ does. That said, building up a pool of reserves against future liabilities now will allow lower levies in the future and hedges against the rising number of claims from baby-boomers. Both National and Labour have policies of doing so and the ratio of unfunded liability to assets has improved in the last decade.

Part of the so-called ‘blow out’ is attributed to ACC’s financial assets losing value due to the credit crunch. That’s no reason to cut services. Unless you believe this is the end of capitalism as we know it (in which case we have bigger problems), the stock-market will recover and so will the value of ACC’s assets.

ACC spends next to nothing on admin (far less than health insurance companies in the US do) and it doesn’t make a profit. Nearly all the money it takes in is paid out covering health costs or compensation for lost income. ACC can’t control the price of health-care. There are only two ways to cut ACC’s costs significantly: cut the services (ie. cover less medical treatment, give less income compensation) or reduce the people who get covered. Private insurers do both by denying vast numbers of claims and by pricing people out of getting cover altogether. National has committed to universal coverage, so it will slash services instead starting with physiotherapy.

Physiotherapy is highly cost-efficient because it accelerates rehabilitation (getting people off treatment and compensation faster) and it prevents minor injuries becoming major ones that need more expensive treatment. Cutting the relatively small cost of physio is penny wise, pound foolish.

Competition cannot make accident compensation cheaper. The bulk of costs are outside the insurers’ control, ACC already has much more efficient admin, and private insurers need to make a profit. Profits don’t come out of thin air and they can’t come by slashing what is already minimal admin. To make a profit while not charging higher levies than ACC, private insurers would have to cream off the most profitable customers, leaving the taxpayer to pay for the rest, and avoid paying out for claims whenever possible.

Finally, a point on Kiwirail. Bill English says it has negative value. Of course, that’s untrue in the sense that it has assets that could be broken up and sold for a return. And even if it’s true in the sense that it won’t give any profit to government as a going concern, and will require the Government to put in more money, so what? If that were the criteria for whether owning an asset is worthwhile, we should get rid of the state highway system for a start – it costs the Government over a billion a year and there’s nearly nil revenue. It’s the externalities that matter. Having a working rail system, liking a working road system, allows the economy to work much better than it otherwise could. That produces tremendous wealth, even though it doesn’t show up on Kiwirail’s balance sheet.

In the past fortnight, we’ve seen some extremely dodgy economic arguments from the Government on ACC, Kiwirail, and the Cullen Fund. Clearly, this is part of a softening up exercise. You can expect major cuts are coming in the Budget.

26 comments on “Softening up ”

  1. The only problem with your post Steve, is that a Government Department working for people and not for profit will be seem absolutely absurd and illogical to the righties out there.

  2. BLiP 2

    Surprise surprise.

    Wonder if those nongs that voted National are beginning to realise what they’ve done?

    • gingercrush 2.1

      Yes I think they have. It also seems that former supporters of the Labour party have seen that a government run by National is far better than any government run by Labour. That would certainly explain National’s high polling in both the TV2 and TV3 political polls.

      • leftrightout 2.1.1

        This is dead right, who could possibly argue with the absoluteness of those polls.

        • bobo 2.1.1.1

          Lets see the polls after the new changes kick in and actually directly effect individuals before we get carried away with high poll ratings.

    • Akldnut 2.2

      Blip I doubt it, if they were sucked in in the first instance then they sure aren’t gonna see this coming. Most of the people I work with don’t even know whats going on and they all switched from Lab to the Gnats. Idiots

  3. Matthew Pilott 3

    Given that a frequent refrain from the Right is that the Government shouldn’t be in the business of turning a profit (and I agree, but from an ideologically polar perspective), what do you think they’d make of hearing that Kiwirail isn’t going to turn in megabox?

    I don’t get it – it’s an important piece of infrastructure, it’s not as if the Government is doing what the private sector wants to be doing (I guess because there’s not enough money to be made) so what is the problem with it? I suppose that’s the cue for bandwidth-wasting talk of train sets and financial constraints – the govt has spent $22bn on roads in the last 14 years or so – makes the trains seem a bargain, even after the private sector has largely negleted and asset-stripped rail.

  4. Rich 4

    Basically, I’ve been paying ACC for 5 years and never made a claim. Now National are going to steal the coverage that I’ve paid for.

    ACC provides a service that costs a fortune in countries with a private insurance / litigation model. In the UK, my rego was $500 and my insurance about $2,500. In NZ, on the same car, I was paying well below half of that amount.

    It’s the point Labour didn’t get over – the Nats might give out a few dollars in (soon to be cancelled) tax cuts, but they’ll claw it all straight back with the money people will need to pay for basic services.

  5. Greg 5

    Does anybody remember what happened to quoted private insurence levies when National was in the process of privitising it in the late 90’s? They plummeted! How can you argue that ACC is efficient in light of this?

    Also the private insurence/litigation model is not the only other option. I’d advocate a compulsary private insurence model. Everyone is covered, they just get to choose by whom.

  6. vinsin 6

    John Key was on bfm this morning doing the same softening talk around ACC. I imagine if he keeps talking about astronomical figures people could be scared into privatization, which is definitely coming unless Johnkey gets scared that his popularity might take a huge beating from the fallout of scraping ACC.

  7. George Darroch 7

    Does anybody remember what happened to quoted private insurence levies when National was in the process of privitising it in the late 90’s? They plummeted! How can you argue that ACC is efficient in light of this?

    They decreased somewhat. That’s because as private companies, they were able to offer cheaper services to their clients – businesses. They did this by cutting back on payouts to employees. As you would expect them to.

    ACC on the other hand is run for the benefit of everybody, including those pesky little employees. Never mind that prompt and comprehensive treatment and compensation have a great number of social and economic benefits.

    ACC is extremely efficient at providing high quality care in the interest of everyone – as independent reviews have shown. It is not efficient at providing low cost care in the interest of business owners.

    Privatisation, says National and cheerleader David Farrar -” that is the way of the world”. Meanwhile, the rest of the world looks at ACC in envy, and wonders how they can implement such a system – just have a look at the public health (sorry, banned word) literature.

  8. Greg.
    a) the private insurers have a big interest in getting lots of businesses to come on board in the first place to bed in privatisation. So like any new provider trying to make an impact on a market by offering low costs up front, then rising them later.
    b) any private insurer will attempt to cream off the most profitable clients, so they offer good rates to them, leaving the taxpayer to shoulder the burden of the rest.

    See, the money for the priavte insurers’ profits can’t come out of thin air and it can’t come out of cuting admin (there’s bugger all to cut).. it’s got to come out of either creaming and dumping the rest on we taxpayers or by not paying out for claims.

    • Greg 8.1

      Thats the brilliant part Steve. Everyone thought they were loss leading – but they weren’t – quite the reverse actually. Insurence premiums were higher than they had to be because the insurence companies had to cover themselves for the possibility that Labour might get into power and reverse the privitisation (indeed this is exactly what happened).

  9. “we should get rid of the state highway system for a start – it costs the Government over a billion a year and there’s nearly nil revenue”

    I take it you don’t own a car or a diesel truck! As such you won’t have fallen victim to our predatory police traffic division either (that would be almost everybody in a uniform too by the way).

  10. On Kiwirail, you say “so what” if it doesn’t make a profit. Well let’s look at the record here:
    – $665 million to buy a company that had a publicly listed market value of around two-thirds of that, and wasn’t able to pay its bills (track access charges) is a LOT of capital from taxpayers. If you don’t generate a return from that capital it is a destruction of that wealth from taxpayers. It is clear you could not sell Kiwirail as a going concern or as scrap for anything near what has been paid for it. Why destroy the wealth of taxpayers (and continue to do so by taking more money to pour down this depreciating “asset”) to subsidise the freight movements largely of Solid Energy, Fonterra, freight forwarding companies and forestry companies?
    – The notion that the State Highway costs a billion with nearly nil revenue is abject nonsense. It cost $1.3 billion in the year ended 30 June 2008 and the National Land Transport Fund generates $1.8 billion across all roads (with the majority generated from state highways). $632 million is spent on local roads as well from that. Add the soon to be dedicated Crown revenue component of fuel excise adds another $300 million. The state highway network generates enough revenue to maintain AND improve it.

    Prove the “tremendous wealth” it generates, because it is basically a transfer from taxpayers to the forestry, dairy and coal businesses. The externality arguments are at best marginal, the evidence from the previous government’s own Surface Transport Costs and Charges study was that, when specific case studies on freight traffic were undertaken, the difference between rail and road was small, and in one case road freight had LOWER externalities than rail.

    In short, you’ve subscribed to the faith based belief that rail is somehow “good” and deserves large amounts of taxpayer largesse to keep it viable. You have no evidence of this.

    Matthew: If it is such an important piece of infrastructure you have to ask why freight forwarding, forestry, dairy and coal businesses can’t pay the full costs of using it. They pay for electricity, which is a far more important piece of infrastructure, but somehow when it is trains people’s brains turn to mush, go all gooey and say “they are different”.

    • Matthew Pilott 10.1

      Given the private industry has made such a hash of management of the NZ’s rail, yet managed to pull a fair bit of cash out of it over the years even without the sale cost, perhaps you’d do well to work on the odd rational conclusion yourself before accusing others’ brains of having mushy qualities, libertyscott.

      It’s funny that you described the exact conditions that lead most people to the obvious and correct conclusion, yet you are entirely unable to see it – I’ve never seen such a stark example of ideological blindness before.

  11. Murray 11

    “Because its [ACC’s] costs can be met by the sovereign revenue raising power of the Crown, it doesn’t need to be solvent any more than WINZ does.”

    You lot just love spending other peoples money don’t you.
    A message for all you do-gooders out there, do good with your own money.

  12. vinsin 12

    I found this particularly good cartoon in the granny today

    http://www.nzherald.co.nz/politics/news/article.cfm?c_id=280&objectid=10560215&ref=rss

    worth a look if you’re down for a chuckle.

  13. Stan 13

    Private Insurers were set to enter the market place some years ago but Helen & the labour Government vetoed it. Its a well known fact that private insurers can operate more efficiently than Government bureaucracy. Economists have long joked that if you give a Government department a dollar for a service you will be lucky if see ten cents of that reaching its destrination. This is true the world over,
    Government departments are like a snowball rolling down a hill they increase in size and speed alarmingly.
    I am not at all surprised to ACC in the gun, $14,000 to prison escaper paid out after an ankle broken jumping over a prison wall. The list goes on.
    NZ needs to privatise this sector and quickly,

  14. Matthew Pilott 14

    Its a well known fact that private insurers can operate more efficiently than Government bureaucracy.

    Define “efficiently”, champ.

    By hiring screeds of lawyers to find loopholes in order to screw people out of payouts, thus reducing the benefits from the system while keeping the costs the same?

    No thanks Stan.

  15. Matthew: The private sector made money out of it because the economy came out of recession in the mid 1990s, and there was precious little need to pour capital into it. However, once there was a need for renewals there was not enough surplus to make it a profitable investment.

    So what is the obvious conclusion Matthew, that the rail network is capital intensive, and without focusing on what it is good at (instead of thinking it is some saviour) the surpluses the profitable parts of the business generates get soaked up propping up uneconomic routes like Northland and Napier-Gisborne.

    I take off my ideological hat on all of this, because this is actually my profession. I personally love railways, I know a damned sight more about railways in NZ than you ever will, you probably can’t draw a map of every single line in NZ and know the difference between a DX, DC and DBR, I can. I would like all lines to run profitably with several trains a day, but I also know that it’s unreasonable to expect others to subsidise this – which for me is enthusiasm about railways, and for you is a political act of religious worship.

    Railways in NZ can be saved, if only a hard head is applied to the network, and the profitable parts allowed to thrive of themselves, and generate enough money to invest in new trains and renewed infrastructure profitably. Like the road transport sector does.

  16. Matthew Pilott 16

    I support railways and you support railways. My support of railways is gooey mushy and yours isn’t, because you profess to know more about them than I do. You clearly seem to know me well, and personally, which is strange – I tend to avoid those I see as obnoxious. Maybe you’re nicer in person – or maybe you don’t know me at all and are talking out your arse. That aside, what’s the argument here?

    I wasn’t specifically arguing for a way it should be done, so what was the point of you blazing in here with bollocks like “but somehow when it is trains people’s brains turn to mush, go all gooey and say “they are different’” apart from an attempt to waste my time with your self-important chest-thumping and one-eyed, bigoted assumptions… Who said rail was ‘some kind of saviour‘? Is there an imaginary Matthew here that you’re engaged in discussions with?

    I said “it’s an important piece of infrastructure”. Maybe you need to rethink your interpretation of ‘taking off your ideological hat’ because you sure as hell can’t think rationally in this thread, so either you’ve a mental disorder, or ideology makes you imagine things in other people’s comments when it comes to trains.

    Again, work on those rational conclusions.

    Start with this: The private sector made money out of it because the economy came out of recession in the mid 1990s, and there was precious little need to pour capital into it. However, once there was a need for renewals there was not enough surplus to make it a profitable investment.

    What’s the logical conclusion there? What do you usually call it when a company makes profits from a form of natural monopoly but invests none of those profits into the upkeep (let alone further investment) of that monopoly and it subsequently does poorly, or needs a hefty capital injection?

  17. Matthew: Fair point Matthew I shouldn’t have made a kneejerk reaction, I was largely blindly reacting to the bollocks behind the original post regarding roads, I apologise.

    Why is it important infrastructure? It is hardly a natural monopoly otherwise it could extract monopoly rents and we wouldn’t be discussing this as the private owner would be having a great time. The only commodity that hasn’t got a relatively easy replacement mode (though there is one which isn’t cheap) is the coal traffic, which as I said is profitable and would stand on its own.

    It is notable that when Tranzrail offered to Solid Energy, Fletcher Forestry and Fonterra to sell all the rolling stock, and in one case the line itself, they all refused. It wasn’t THAT important to their businesses.

    If you read the ISCR presentation which Frogblog discussed a week or so ago you’ll find that TranzRail DID put a lot of money into sleepers, although track replacement was less that state ownership the long term trend of state ownership before that from the 1980s was not high anyway. Yes Tranzrail ran down a business that wasn’t worth replacing, a perfectly legitimate action for a business that sees the return on capital from replacing assets isn’t worth it. The reason the government got into this was because TranzRail announced it was closing the Napier-Gisborne, and Rotorua lines as part of this wind down of the unprofitable parts of the network, and the rest is history. Had it been allowed to wind down (although I’d have open access on closed lines if others want to run trains), it would naturally shrink to the economically rational profitable network.

    A report from the early 1990s by The Treasury investigated what would happen if the entire rail network went under (for freight, not Wellington commuter services), the conclusion was that the additional RUC collected would cover road maintenance costs, but that the only location where there would be serious issues was Wellington – because Ngauranga Gorge had no room for additional capacity. Railways are not road, electricity or water, they are a duplicate infrastructure that either should add value or go.

  18. RedLogix 18

    So while most other developed nations in Europe, China, Russia, are building (or planning to build) new, modern, high speed and conventional rail networks as hard out as they can… Mr Libertarian Scott tells us that the New Zealand railways are a ‘duplicate infrastructure’ and presumably because he doesn’t believe they add value, (despite his barely credible claim to be a great rail enthusiast), that they should be ripped up.

    LibertyScott is a professional, he knows lots of facts and numbers in this area, but he uses them to bullshit us:

    The notion that the State Highway costs a billion with nearly nil revenue is abject nonsense. It cost $1.3 billion in the year ended 30 June 2008 and the National Land Transport Fund generates $1.8 billion across all roads (with the majority generated from state highways). $632 million is spent on local roads as well from that. Add the soon to be dedicated Crown revenue component of fuel excise adds another $300 million. The state highway network generates enough revenue to maintain AND improve it.

    In other words he claims that road users fully pay for their road network. But of course this is spread over ALL road users, trucking companies only pay a small portion of this, while incurring much of the costs in terms of loading designs and repairs. Big trucks cause many, many times the damage to roads than do normal vehicles. It is the normal car user who subsidises the trucking industry, while the rail industry is made to ‘pay all it’s way’.

    Frankly if I am going to have to pay to subsidise heavy transport in one form or another, I would much sooner the money was spent on trains, getting the big ugly behemouths off the road and making life more pleasant for us ordinary folk who are actually paying.

    If ever you had to spend 30 mins crawling over the Rimutaka Hill Rd behind a couple of laden logging trucks, whose loads damn well should be on rail wagons in the perfectly good tunnel under the hill…. then you would know exactly where I am coming from.

  19. expat 19

    Stevie says “You can expect major cuts are coming in the Budget.”

    Thats because the country is nearly insolvent again.

    get it?

    [lprent: The country is having to go into debt largely because of the taxcuts. There was no ‘surplus’, it was a myth created by the NACT’s selectively using the wrong figures from the government accounts. It was then taken up by morons like you who have no conception of fiscal responsibility over the longer term and who think that the world always runs in a bull market.

    Of course NACT being caught in a political/fiscal trap of their own making will make the wrong decision and make arbitrary cuts because they are too impatient (and probably incompetent) to make the cost-saving structural changes in any effective manner. They should reverse the taxcuts. That would be fiscally responsible, and ensure that the current generations largely pay for their excesses rather than future ones.

    Get it?

    expat is in auto-moderation so I can embellish his comments because most lack a basic level of understanding. However I’m sure that he can be brought up to standard with a lot of work]

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    The podcast above of the weekly ‘Hoon’ webinar for paying subscribers on Thursday night features co-hosts and talking about the week’s news with:The Kākā’s climate correspondent on the latest climate science on rising temperatures and the climate implications of the US Presidential elections; and special guests Janet ...
    The KakaBy Bernard Hickey
    4 days ago
  • Do or do not. There is no try

    1. Upon receiving evidence that school lunches were doing a marvellous job of improving outcomes for students, David Seymour did what?a. Declared we need much more of this sort of good news and poured extra resources and funding into them b. Emailed Atlas network to ask what to do next c. Cut ...
    More Than A FeildingBy David Slack
    4 days ago
  • Dangerous ground

    The Waitangi Tribunal has reported back on National's proposed changes to gut the Marine and Coastal Area Act and steal the foreshore and seabed for its greedy fishing-industry donors, and declared it to be another huge violation of ti Tiriti: The Waitangi Tribunal has found government changes to the ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Climate Change: National wants to cheat on Paris

    In 2016, the then-National government signed the Paris Agreement, committing Aotearoa to a 30 (later 50) percent reduction in emissions by 2030. When questioned about how they intended to meet that target with their complete absence of effective climate policy, they made a lot of noise about how it was ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Treasury warned Govt lower debt limits meant less ‘productivity-enhancing investment’

    Treasury’s advice to Cabinet was that the new Government could actually prudently carry net core Crown debt of up to 50% of GDP. But Luxon and Willis instead chose to portray the Government’s finances as in such a mess they had no choice but to carve 6.5% to 7.5% off ...
    The KakaBy Bernard Hickey
    4 days ago
  • Is the Media Complicit?

    This is a long read. Open to all.SYNOPSIS: Traditional media is at a cross roads. There is a need for those in the media landscape, as it stands, to earn enough to stay afloat, but also come across as balanced and neutral to keep its audiences.In America, NYT’s liberal leaning ...
    Mountain TuiBy Mountain Tui
    4 days ago
  • Black Friday

    It's Black Friday, the end of the weekYou take my hand and hold it gently up against your cheekIt's all in my head, it's all in my mindI see the darkness where you see the lightSong by Tom OdellFriday the 13th, don’t be afraid.No, really, don’t. Everything has felt a ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Weekly Roundup 13-September-2024

    Ooh, Friday the thirteenth. Spooky! Is that why certain zombie ideas have been stalking the landscape this week, like the Mayor’s brainwave for a motorway bridge from Kauri Point to Point Chev? Read on and find out. This roundup, like all our coverage, is brought to you by the Greater ...
    Greater AucklandBy Greater Auckland
    4 days ago
  • Skeptical Science New Research for Week #37 2024

    Open access notables Early knowledge but delays in climate actions: An ecocide case against both transnational oil corporations and national governments, Hauser et al., Environmental Science & Policy: Cast within the wide context of investigating the collusion at play between powerful political-economic actors and decision-makers as monopolists and debates about ‘the modern ...
    5 days ago
  • What it is

    I liked what Kieran McAnulty had to say about the Treaty Principles bill this morning so much I've written it down and copied it out for you. He was saying that rather than let this piece of ordure spend six months in Select Committee, the Prime Minister could stop making such ...
    More Than A FeildingBy David Slack
    5 days ago
  • A government-funded hate campaign

    Cabinet discussed National's constitutionally and historically illiterate "Treaty Principles Bill" this week, and decided to push on with it. The bill will apparently receive a full six month select committee process - unlike practically every other policy this government has pushed, and despite the fact that if the government is ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • How Substack works to take (some) craziness out of America’s elections

    I spoke with Substack co-founder yesterday, just before the Trump-Harris debate, about how Substack is doing its thing during the US elections. He talks in particular about how Substack’s focus on paid subscriptions rather than ads has made political debate on the platform calmer, simpler, deeper and more satisfying ...
    The KakaBy Bernard Hickey
    5 days ago
  • Kamala Harris Did Something Unthinkable

    Hi,Yesterday me and a bunch of friends gathered in front of the TV, ate tortillas, drank wine, and watched the debate between Kamala Harris and Donald Trump.Some of you may have joined in on the live Webworm chat where we shared thoughts, jokes and memes — and a basic glee ...
    David FarrierBy David Farrier
    5 days ago
  • Kamala Harris Did Something Unthinkable

    Hi,Yesterday me and a bunch of friends gathered in front of the TV, ate tortillas, drank wine, and watched the debate between Kamala Harris and Donald Trump.Some of you may have joined in on the live Webworm chat where we shared thoughts, jokes and memes — and a basic glee ...
    David FarrierBy David Farrier
    5 days ago
  • Kamala Harris Did Something Unthinkable

    Hi,Yesterday me and a bunch of friends gathered in front of the TV, ate tortillas, drank wine, and watched the debate between Kamala Harris and Donald Trump.Some of you may have joined in on the live Webworm chat where we shared thoughts, jokes and memes — and a basic glee ...
    David FarrierBy David Farrier
    5 days ago
  • David Seymour is such a loser

    For paid subscribersNot content with siphoning off $230,000,000 of taxpayers money for his hobby projects - and telling everyone his passion is education and early childcare - an intersection painfully coincidental to the interests of wealthy private families like Sean Plunkett’s1 backers, the Wright Family, Seymour is back in the ...
    Mountain TuiBy Mountain Tui
    5 days ago
  • Cross-party consensus: there’s no pipeline without good faith

    There’s been a lot of talk recently about a cross-party agreement to develop a pipeline for infrastructure, including transport. Last month, outgoing CRL boss Sean Sweeney talked about the importance of securing an enduring infrastructure programme. He outlined the high costs of the relentless political flip-flopping of priorities, which drives ...
    Greater AucklandBy Connor Sharp
    5 days ago
  • Voters love this climate policy they’ve never heard of

    This is a re-post from Yale Climate Connections by Karin Kirk The Inflation Reduction Act is the Biden administration’s signature climate law and the largest U.S. government investment in reducing climate pollution to date. Among climate advocates, the policy is well-known and celebrated, but beyond that, only a minority of Americans ...
    5 days ago
  • ACC wants to administer inflation at more than double the RBNZ’s target rate

    ACC levies are set to rise at more than double the inflation rate targeted by the RBNZ. Photo: Lynn GrievesonKia ora. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Thursday, September 12:The state-owned monopoly for accident insurance wants ...
    The KakaBy Bernard Hickey
    5 days ago
  • Harris vs Trump

    We’ve been selected to rock your asses 'til midnightThis is my term, I've shaved off my perm, but it's alrightI solemnly swear to uphold the ConstitutionGot a rock 'n' roll problem? Well we got a solutionLet us be who we am, and let us kick out the jams, yeahKick out ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Treaty Bill “a political stunt”

    Prime Minister Christopher Luxon appears to have given ACT Leader David Seymour more than he has been admitting in the proposals to go forward with a Treaty Principles Bill.All along, Luxon has maintained that the Government is proceeding with the Bill to honour the coalition agreement.But that is quite specific.It ...
    PolitikBy Richard Harman
    5 days ago
  • An average 219 NZers migrated each day in July

    Kia ora. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Wednesday, September 11:Annual migration of New Zealanders rose to a record-high 80,963 in the year to the end of July, which is more than double its pre-Covid levels.Two ...
    The KakaBy Bernard Hickey
    6 days ago
  • What you’re wanting to win more than anything is The Narrative

    Hubris is sitting down on election day 2016 to watch that pig Trump get his ass handed to him, and watching the New York Times needle hover for a while over Hillary and then move across to Trump where it remains all night to your gathering horror and dismay. You're ...
    More Than A FeildingBy David Slack
    6 days ago
  • National’s automated lie machine

    The government has a problem: lots of people want information from it all the time. Information about benefits, about superannuation, ACC coverage and healthcare, taxes, jury service, immigration - and that's just the routine stuff. Responding to all of those queries takes a lot of time and costs a lot ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Christopher Luxon: A Man of “Faith” and “Compassion” Speaks on the Treaty Pr...

    Synopsis: Today - we explore two different realities. One where National lost. And another - which is the one we are living with here. Note: the footnote on increased fees/taxes may be of interest to some readers.Article open.Subscribe nowIt’s an alternate timeline.Yesterday as news broke that the central North Island ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • Member’s Day

    Today is a Member's Day. First up is the third reading of Dan Bidois' Fair Trading (Gift Card Expiry) Amendment Bill, which will be followed by the committee stage of Deborah Russell's Family Proceedings (Dissolution for Family Violence) Amendment Bill. This will be followed by the second readings of Katie ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Northern Expressway Boondoggle

    Transport Minister Simeon Brown has been soaring high with his hubris of getting on and building motorways but some uncomfortable realities are starting to creep in. Back in July he announced that the government was pushing on with a Northland Expressway using an “accelerated delivery strategy” The Coalition Government is ...
    6 days ago
  • Never Enough

    However much I'm falling downNever enoughHowever much I'm falling outNever, never enough!Whatever smile I smile the mostNever enoughHowever I smile I smile the mostSongwriters: Robert James Smith / Simon Gallup / Boris Williams / Porl ThompsonToday in Nick’s Kōrero:A death in the Emergency Department at Rotorua Hospital.A sad homecoming and ...
    Nick’s KōreroBy Nick Rockel
    6 days ago
  • Question Two of The Kākā Project of 2026 for 2050 (TKP 26/50)

    Kia ora.Last month I proposed restarting The Kākā Project work done before the 2023 election as The Kākā Project of 2026 for 2050 (TKP 26/50), aiming to be up and running before the 2025 Local Government elections, and then in a finalised form by the 2026 General Elections.A couple of ...
    The KakaBy Bernard Hickey
    6 days ago
  • Why is God Obsessed with Spanking?

    Hi,If you’ve read Webworm for a while, you’ll be aware that I’ve spent a lot of time writing about horrific, corrupt megachurches and the shitty men who lead them.And in all of this writing, I think some people have this idea that I hate Christians or Christianity. As I explain ...
    David FarrierBy David Farrier
    6 days ago
  • Inside the public service

    In 2023, there were 63,117 full-time public servants earning, on average, $97,200 a year each. All up, that is a cost to the Government of $6.1 billion a year. It’s little wonder, then, that the public service has become a political whipping boy castigated by the Prime Minister and members ...
    PolitikBy Richard Harman
    6 days ago
  • New Models Show Stronger Atlantic Hurricanes, and More of Them

    This is a re-post from This is Not Cool Here’s an example of some of the best kind of climate reporting, especially in that it relates to impacts that will directly affect the audience. WFLA in Tampa conducted a study in collaboration with the Department of Energy, analyzing trends in ...
    7 days ago
  • Where ever do they find these people?

    A riddle wrapped in a mystery inside an enigma, is how Winston Churchill described the Soviet Union in 1939.  How might the great man have described the 2024 government of New Zealand, do we think? I can't imagine he would have thought them all that mysterious or enigmatic. I think ...
    More Than A FeildingBy David Slack
    7 days ago
  • Motorway madness

    How mad is National's obsession with roads? One of their pet projects - a truck highway to Whangārei - is going to eat 10% of our total infrastructure budget for the next 25 years: Official advice from the Infrastructure Commission shows the government could be set to spend 10 ...
    No Right TurnBy Idiot/Savant
    7 days ago
  • Our transport planning system is fundamentally broken

    Ever since Wayne Brown became mayor (nearly two years ago now) he’s been wanting to progress an “integrated transport plan” with the government – which sounded a lot like the previous Auckland Transport Alignment Project (ATAP) with just a different name. It seems like a fair bit of work progressed ...
    1 week ago
  • Thou Shalt Not Steal

    And they taught usWhoa-oh, black woman, thou shalt not stealI said, hey, yeah, black man, thou shalt not stealWe're gonna civilise your black barbaric livesAnd we teach you how to kneelBut your history couldn't hide the genocideThe hypocrisy to us was realFor your Jesus said you're supposed to giveThe oppressed ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • How mismanagement, not wind and solar energy, causes blackouts

    This is a re-post from Yale Climate Connections In February 2021, several severe storms swept across the United States, culminating with one that the Weather Channel unofficially named Winter Storm Uri. In Texas, Uri knocked out power to over 4.5 million homes and 10 million people. Hundreds of Texans died as a ...
    1 week ago
  • The ‘Infra Boys’ Highway to Budget Hell

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    The KakaBy Bernard Hickey
    1 week ago
  • Media Link: “AVFA” on the politics of desperation.

    In this podcast Selwyn Manning and I talk about what appears to be a particular type of end-game in the long transition to systemic realignment in international affairs, in which the move to a new multipolar order with different characteristics … Continue reading ...
    KiwipoliticoBy Pablo
    1 week ago
  • The cost of flying blind

    Just over two years ago, when worries about immediate mass-death from covid had waned, and people started to talk about covid becoming "endemic", I asked various government agencies what work they'd done on the costs of that - and particularly, on the cost of Long Covid. The answer was that ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Seymour vs The Clergy

    For paid subscribers“Aotearoa is not as malleable as they think,” Lynette wrote last week on Homage to Simeon Brown:In my heart/mind, that phrase ricocheted over the next days, translating out to “We are not so malleable.”It gave me comfort. I always felt that we were given an advantage in New ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Unstoppable Minister McKee

    All smiles, I know what it takes to fool this townI'll do it 'til the sun goes downAnd all through the nighttimeOh, yeahOh, yeah, I'll tell you what you wanna hearLeave my sunglasses on while I shed a tearIt's never the right timeYeah, yeahSong by SiaLast night there was a ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Could outdoor dining revitalise Queen Street?

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    Greater AucklandBy Guest Post
    1 week ago
  • Hipkins challenges long-held Labour view Government must stay below 30% of GDP

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    The KakaBy Bernard Hickey
    1 week ago
  • Your invite to Webworm Chat (a bit like Reddit)

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    David FarrierBy David Farrier
    1 week ago

  • Enabling rural recovery works in Hawke’s Bay

    Cabinet has approved an Order in Council to enable severe weather recovery works to continue in the Hawke’s Bay, Environment Minister Penny Simmonds and Minister for Emergency Management and Recovery Mark Mitchell say. “Cyclone Gabrielle and the other severe weather events in early 2023 caused significant loss and damage to ...
    BeehiveBy beehive.govt.nz
    51 mins ago
  • FamilyBoost childcare payment registrations open

    From today, low-to-middle-income families with young children can register for the new FamilyBoost payment, to help them meet early childhood education (ECE) costs. The scheme was introduced as part of the Government’s tax relief plan to help Kiwis who are doing it tough. “FamilyBoost is one of the ways we ...
    BeehiveBy beehive.govt.nz
    1 hour ago
  • Prioritising victims with tougher sentences

    The Government has today agreed to introduce sentencing reforms to Parliament this week that will ensure criminals face real consequences for crime and victims are prioritised, Justice Minister Paul Goldsmith says. "In recent years, there has been a concerning trend where the courts have imposed fewer and shorter prison sentences ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Targets data confirms rise in violent crime

    The first quarterly report on progress against the nine public service targets show promising results in some areas and the scale of the challenge in others, Prime Minister Christopher Luxon says. “Our Government reinstated targets to focus our public sector on driving better results for New Zealanders in health, education, ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Asia Foundation Board appointments announced

    Foreign Minister Winston Peters has announced the appointments of Hone McGregor, Professor David Capie, and John Boswell to the Board of the Asia New Zealand Foundation.  Bede Corry, Secretary of Foreign Affairs and Trade, has also been appointed as an ex-officio member. The new trustees join Dame Fran Wilde (Chair), ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Endeavour Fund projects for economic growth

    New Zealand’s largest contestable science fund is investing in 72 new projects to address challenges, develop new technology and support communities, Science, Innovation and Technology Minister Judith Collins says. “This Endeavour Fund round being funded is focused on economic growth and commercial outputs,” Ms Collins says. “It involves funding of more ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Social Services Providers Whakamanawa National Conference 16 September 2024

    Thank you for the introduction and the invitation to speak to you here today. I am honoured to be here in my capacity as Minister for the Prevention of Family and Sexual Violence, and Minister for Children. Thank you for creating a space where we can all listen and learn, ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Parihaka infrastructure upgrades funded

    The Government will provide a $5.8 million grant to improve water infrastructure at Parihaka in Taranaki, Regional Development Minister Shane Jones and Māori Development Minister Tama Potaka say. “This grant from the Regional Infrastructure Fund will have a multitude of benefits for this hugely significant cultural site, including keeping local ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Serious assaults down 22% in Auckland CBD

    Cross-government action to tackle crime and antisocial behaviour in Auckland is getting traction, says Police Minister Mark Mitchell. “Our central cities should be great places to live and work, but in recent years they have become hot spots for crime and anti-social behaviour. In Auckland, businesses and residents suffered as ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Increased certainty for contractors coming

    Workplace Relations and Safety Minister Brooke van Velden says upcoming changes to the Employment Relations Act will provide greater certainty for contractors and businesses. “These changes to legislation are necessary to ensure businesses and workers have more clarity from the start of their contracting arrangement. It is an ACT-National coalition ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Draft critical minerals list released for consultation

    A draft list of minerals deemed essential to New Zealand’s economy and strengthening its mineral resilience has been released for consultation, Resources Minister Shane Jones says. The draft Critical Minerals List identifies 35 minerals essential to economic functions, are in demand internationally, and face high risk of supply disruption domestically ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government eliminates $190 million in trade barriers to boost the economy

    The Government has successfully removed trade barriers affecting nearly $190 million worth of exports to help grow the economy, Minister for Trade and Agriculture Todd McClay today announced.  “In the past year, we have resolved 14 Non Tariff Barriers (NTBs), returning significant value to kiwi exporters. These efforts directly boost our ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Reo Māori the ‘beating heart’ of Aotearoa New Zealand

    From private business to the Paris Olympics, reo Māori is growing with the success of New Zealanders, says Minister for Māori Development Tama Potaka. “I’m joining New Zealanders across the country in celebrating this year’s Te Wiki o te Reo Māori – Māori Language Week, which has a big range ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Need and value at forefront of public service delivery

    New Cabinet policy directives will ensure public agencies prioritise public services on the basis of need and award Government contracts on the basis of public value, Minister for the Public Service Nicola Willis says. “Cabinet Office has today issued a circular to central government organisations setting out the Government’s expectations ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister to attend Police Ministers Council Meeting

    Police Minister Mark Mitchell will join with Australian Police Ministers and Commissioners at the Police Ministers Council meeting (PMC) today in Melbourne. “The council is an opportunity to come together to discuss a range of issues, gain valuable insights on areas of common interest, and different approaches towards law enforcement ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Bill to crack down on youth vaping

    The coalition Government has introduced legislation to tackle youth vaping, Associate Health Minister Casey Costello announced today. “The Smokefree Environments and Regulated Products Amendment Bill (No 2) is aimed at preventing youth vaping.  “While vaping has contributed to a significant fall in our smoking rates, the rise in youth vaping ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Interest in agricultural and horticultural products regulatory review welcomed

    Regulation Minister David Seymour, Environment Minister Penny Simmonds, and Food Safety Minister Andrew Hoggard have welcomed interest in the agricultural and horticultural products regulatory review. The review by the Ministry for Regulation is looking at how to speed up the process to get farmers and growers access to the safe, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Bill to allow online charity lotteries passes first reading

    Minister of Internal Affairs Brooke van Velden says the Government is moving at pace to ensure lotteries for charitable purposes are allowed to operate online permanently. Charities fundraising online, such as those run by the Heart Foundation, Coastguard NZ, Auckland Rescue Helicopter Trust and local hospices will continue to do ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Tax exempt threshold changes to benefit startups

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    5 days ago
  • Getting the healthcare you need, when you need it

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    BeehiveBy beehive.govt.nz
    5 days ago
  • Targeted supports to accelerate reading

    The coalition Government is delivering targeted and structured literacy supports to accelerate learning for struggling readers. From Term 1 2025, $33 million of funding for Reading Recovery and Early Literacy Support will be reprioritised to interventions which align with structured approaches to teaching. “Structured literacy will change the way children ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Survivors invited to Abuse in Care national apology

    With two months until the national apology to survivors of abuse in care, expressions of interest have opened for survivors wanting to attend. “The Prime Minister will deliver a national apology on Tuesday 12 November in Parliament. It will be a very significant day for survivors, their families, whānau and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Rangatahi inspire at Ngā Manu Kōrero final

    Ehara taku toa i te toa takitahi, engari he toa takitini kē - My success is not mine alone but is the from the strength of the many. Aotearoa New Zealand’s top young speakers are an inspiration for all New Zealanders to learn more about the depth and beauty conveyed ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Driving structured literacy in schools

    The coalition Government is driving confidence in reading and writing in the first years of schooling. “From the first time children step into the classroom, we’re equipping them and teachers with the tools they need to be brilliant in literacy. “From 1 October, schools and kura with Years 0-3 will receive ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Labour’s misleading information is disappointing

    Labour’s misinformation about firearms law is dangerous and disappointing, Associate Justice Minister Nicole McKee says.   “Labour and Ginny Andersen have repeatedly said over the past few days that the previous Labour Government completely banned semi-automatic firearms in 2019 and that the Coalition Government is planning to ‘reintroduce’ them.   ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Govt takes action on mpox response, widens access to vaccine

    The Government is taking immediate action on a number of steps around New Zealand’s response to mpox, including improving access to vaccine availability so people who need it can do so more easily, Health Minister Dr Shane Reti and Associate Health Minister David Seymour announced today. “Mpox is obviously a ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Next steps agreed for Treaty Principles Bill

    Associate Justice Minister David Seymour says Cabinet has agreed to the next steps for the Treaty Principles Bill. “The Treaty Principles Bill provides an opportunity for Parliament, rather than the courts, to define the principles of the Treaty, including establishing that every person is equal before the law,” says Mr Seymour. “Parliament ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government unlocking potential of AI

    Science, Innovation and Technology Minister Judith Collins today announced a programme to drive Artificial Intelligence (AI) uptake among New Zealand businesses. “The AI Activator will unlock the potential of AI for New Zealand businesses through a range of support, including access to AI research experts, technical assistance, AI tools and resources, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government releases Wairoa flood review findings

    The independent rapid review into the Wairoa flooding event on 26 June 2024 has been released, Environment Minister Penny Simmonds, Local Government Minister Simeon Brown and Emergency Management and Recovery Minister Mark Mitchell announced today. “We welcome the review’s findings and recommendations to strengthen Wairoa's resilience against future events,” Ms ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Promoting faster payment times for government

    The Government is sending a clear message to central government agencies that they must prioritise paying invoices in a timely manner, Small Business and Manufacturing Minister Andrew Bayly says. Data released today promotes transparency by publishing the payment times of each central government agency. This data will be published quarterly ...
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    6 days ago
  • Acknowledgement to Kīngi Tuheitia speech

    E te māngai o te Whare Pāremata, kua riro māku te whakaputa i te waka ki waho moana. E te Pirimia tēnā koe.Mr Speaker, it is my privilege to take this adjournment kōrero forward.  Prime Minister – thank you for your leadership. Taupiri te maunga Waikato te awa Te Wherowhero ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Interim fix to GST adjustment rules to support businesses

    Inland Revenue can begin processing GST returns for businesses affected by a historic legislative drafting error, Revenue Minister Simon Watts says. “Inland Revenue has become aware of a legislative drafting error in the GST adjustment rules after changes were made in 2023 which were meant to simplify the process. This ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Strong uptake for cervical screening self-test

    More than 80 per cent of New Zealand women being tested have opted for a world-leading self-test for cervical screening since it became available a year ago. Minister of Health Dr Shane Reti and Associate Minister Casey Costello, in her responsibility for Women’s Health, say it’s fantastic to have such ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Ministry for Regulation’s first Strategic Intentions document sets ambitious direction

    Regulation Minister David Seymour welcomes the Ministry for Regulation’s first Strategic Intentions document, which sets out how the Ministry will carry out its work and deliver on its purpose. “I have set up the Ministry for Regulation with three tasks. One, to cut existing red tape with sector reviews. Two, ...
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    7 days ago
  • Māori Education Advisory Group established

    The Education Minister has established a Māori Education Ministerial Advisory Group made up of experienced practitioners to help improve outcomes for Māori learners. “This group will provide independent advice on all matters related to Māori education in both English medium and Māori medium settings. It will focus on the most impactful ways we can lift ...
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