web analytics

Spin-busting: ‘A growth problem, not a debt problem’

Written By: - Date published: 10:42 am, August 4th, 2008 - 28 comments
Categories: economy, national, spin - Tags:

To justify borrowing for tax cuts, National’s new line is that New Zealand has ‘a growth problem, not a debt problem’. Untrue.

New Zealand’s growth has been faster in recent years than trend, faster than it was under National, and faster than growth in our major trade partners.

We are in a shallow recession right now but that’s because a) we’ve grown so quickly in the last 8 years that there is little spare capacity for growth in the economy and b) the world is experiencing the beginning of peak oil, that has put petrol prices to record prices, hamstringing the global economy, including New Zealand.

Moreover, National’s borrowing plan would not break us out of the present recession. It’s not roads we are short on; it’s invesmtnet in workers’ skills, a low-carbon transport infrastructure, and more private sector investment in private businesses that are needed. With our economy still basically at full capacity, all National’s borrowing will do is cause inflation.

We don’t have a growth problem: New Zealand has grown as fast as it could for the last decade leading to record-low unemployment and record high wage increases. National’s borrowing would not increase growth (more investment by private business in their capital would help, but business owners continue to prioritise profits over investment). So, we’re left with the real reason for National’s debt plan – to pay for tax cuts.

28 comments on “Spin-busting: ‘A growth problem, not a debt problem’ ”

  1. outofbed 1

    Alternatively of course, National could reduce those extra borrowing costs by further sales of state assets – such as Kiwibank or TVNZ in its second term – as the bills start mounting. In other words, the future sale of Kiwibank will not have been due to any shortcomings in performance on its part ultimately, it will have been required to pay for National’s election bribes during 2008. Cut taxes now, and strip mine state assets later yes, it will be interesting to watch Key trying to defend the indefensible over the course of this election campaign.

    this nails it

  2. Draco TB 2

    Yep, Nationals plan seems to be:
    1.) Cut taxes
    2.) Borrow to fund the tax cuts
    3.) Sell off assets to keep the incoming cash flow so they can cut taxes even more
    4.) Pauperize and bankrupt NZ

  3. vto 3

    If labour is responsible for the growth then labour is responsible for this current ‘shallow recession’, as you call it (but try being realistic and cll it what it is, namely the start of a massive meltdown. good one labour).

  4. vto. you’re smarter than this, you can do better.

    Just because government can influence the economy does not mean that every thing that happens to the economy is due to the Government (note – I didn’t say in the article that our above trend gorwth over the last decade was due in whole or in part to the Laobur-led Govts). You have to be able to point to cause and effect in each instance.

    Likewise, some borrowing can be good if done at the right times for the right reasons, but that doesn’t mean that I’ve boxed myself into supporting any borrowing at any time.

    Just because when it rains my head gets wet does not mean that if my head is wet it must be raining.

    As to the recession, I see us coming out of this with less than 1% of GDP loss – that’s what the experts are predicting too. However, in the medium term the global economy is in for a rocky ride from peak oil and we can expect signficant periods of larger recession.

  5. vto 5

    It has always got to me that pretty much through the entire term of this labour govt Cullen and Clark have consistently crowed about how their good deeds have resulted in the recent economic growth. Everybody knows that the recent growth was due to two things – the previous policies put in place during the nineties and before – and the healthy world economy.

    So if Cullen claims responsibility for that, which he has for a long time, then he is also responsible for this meltdown. (of course, he is in fact responsible for zip all, but he is the one who has claimed it)

    Re the meltdown, I wager the meltdown will be significantly greater than 1%. Did you notice the building consent stats last week? At the same level as January 2001 – don’t know if you were around then but those were dire times. And then seasonally adjusted those stats and the consents are at I think a 32 year low.

    And when are we allowed to start talking about a run on one of the big banks?

  6. SweeetD 6

    If our growth has been so wonderful, how come we are dropping down the OECD scale? Once upon a time HC had a dream to get NZ into the top half of the OECD. NZ does have a growth problem, pretty graphs do not change this.

    [we’re not in the top half of the OECD because we fell so far behind in the 1980s and 1990s, even a decade of fast growth has not been enough to close the gap. We’ve dropped one place in OECD rankings because Greece (or is it Korea?) is also growing fast and over took us but we are both closing on the higher ranked OECD countries. Even if we did have a growth problem, National has no solution to it. SP]

  7. rave 7

    Key is Bush lite crude.
    Infrastructure to slash and burn oil won by wars for oil.
    Big boys toys destroy lives.

  8. vto 8

    Ah yes Sweeeetd I keep forgetting about that. Back into the top half of the OECD it was. But we have in fact gone the other way – the reason? Sweet f a in the way of growth-promoting policies. This govt has squandered an amazing opportunity. They have just sat on their arse (when it comes to economic matters) and gorged themselves.

    The government is rich and the people are poor.

  9. Quoth the Raven 9

    So according to you vto National can’t be blamed for the slow growth, high unemployment, slow wage growth, higher level of poverty and two years of recession when it was in power and Labour can’t be responsible for the strong economic growth that New Zealand has had since they’ve been in power but the shallow period of growth we’re in now is solely down to Labour. How? Vto do you take LSD, like everyday?

  10. Felix 10

    The government is rich and the people are poor.

    Funny how I never hear poor people saying that.

    Perhaps it’s because what you actually mean is “the govt redistributes the wealth of the country to ensure that the poor are not so poor”

    Nah, you’re probably right, the govt collects money to make itself “rich”.

  11. vto 11

    LSD looks like your prerogative QtR … “the shallow period of growth we’re in now”. There is no growth now QtR. It is actually contracting.

    And I din’t say what you said I said. Cullen, I said, is the one who has claimed it all for himself. He is the one who claims the good but blames other for the bad. Duh. That was the point of the point.

  12. Quoth the Raven 12

    My mistake vto I should’ve said negative growth and you did say Cullen is not to blame for for this meltdown. Maybe I have been taking LSD today. Anyway remember when I pointed out that Bernard Hickey had written this about Labour’s last budget:
    Whatever happened to their mantra that they wouldn’t pay for tax cuts by running up debts? Their (quite powerful) argument that it wasn’t right for National to pay for tax cuts with debt is now dead as the proverbial. Their rebuttal that the debt is only paying for infrastructure is, strictly speaking, true, but debt wouldn’t have to be raised without the tax cuts. There’s no getting away from this. They are raiding the Reserve Bank’s cookie jar and borrowing from foreigners for an irresponsible spending and tax cutting budget.

    I was wondering whether Hickey would be critical of National’s plans. After saying that you’d be sure he would be. Well, he’s come out defending National’s plans, hypocracy anyone?

  13. vto 13

    QtR the hypocrisy is as thick as cowshed shit in both camps on various matters. It seems to be an unfortunate political reality.

    Re borrowing to pay for tax cuts – well people aren’t silly. The govt budget is pretty much a household budget. As long as you’ve got any debt then the argument can so very easily be made that the debt could be for anything in the budget. If you go out and pay cash for a wide screen telly and then borrow for a house then clearly the house debt could be written up as telly debt. The debt can be applied anywhere.

    So it is with this issue – are the borrowings for tax cuts? or infrastructure? or kiwisaver? or the Cullen fund? Or for students free loans? The list goes on.

    But I think there is a little difference in that when you borrow to pay for a house you do so because there is no other realistic way for the vast majority of people to buy a house. And imo it is similar with certain larger items in the national interest. eg. infrastructure.

    And another related matter – imo it is unfair to require this generation to use its cash for infrastructure that spans generations. Sure, obviously it would be fantastic to leave our grandkids etc a debt free set of amazing infrastructure, but we aint rich enough to do that (unless Southland becomes the next Arabian Peninsula). And there is a limit to how much one generation should be required to undergo hardship for the following generations.

  14. lprent 14

    vto: Actually I agree. What I disagree on is what they want to raise debt on. If it spans generations then there should be a fairly high expectation that it will in fact benefit future generations.

    Obviously I’m reasonably sensitive about this because I’m in the generation that the previous John Key (Sir Robert Muldoon) used that argument on my parents. Consequently I’ve not only had to help pay for restructuring the useless command economy he left, but also the debt. This was debt to pay for infrastructure that would ensure that my generation would be wealthy enough to pay for easily (right – like that happened). The infrastructure was to be paid for by debt, and that meant that muldoon could pay for SMP’s for his constituency – the rural community.

    Does this sound familiar… Translate SMP’s into tax-cuts and to me it rings with a horrible cackle.

    In two examples that the Nat’s want to raise debt to ensure growth, roads and fibre to the home – I don’t believe that either will benefit my families kids. To date all I have heard is some vague waffle that essentially comes down to “…have faith in muldoon ummm Key. You just need a leader with courage.” rather than some actual numbers and risk assessments.

    Bugger off – I’m too old to be caught by that crap, and so will a significant portion of the voters. We’ve seen it all before – and we paid for the tee-shirt many time over.

  15. Draco TB 15

    But I think there is a little difference in that when you borrow to pay for a house you do so because there is no other realistic way for the vast majority of people to buy a house. And imo it is similar with certain larger items in the national interest. eg. infrastructure.

    IMO, this is wrong. A nation should never have to borrow for infrastructure. All that really needs to be done is that income taxes need to be raised to cover the investment and once finished the taxes get dropped again. This has the advantage that government spending will remain inflation neutral unlike deficit spending which forces inflation upwards.

    And another related matter – imo it is unfair to require this generation to use its cash for infrastructure that spans generations.

    I’ve addressed this part here.

  16. Matthew Pilott 16

    Just a quick point, the difference between a govt budget and a houehold is that it does not earn an income as such. It can set a income level as required and can choose to set that at the level of expenditure. So the tv/mortgage example doesn’t quite work – a government could choose to fund everything through cash inflows, not debt, a household does not have the option.

    So when we can afford something but choose to reduce government income and fund it by debt there is no household equivalent. If anything it would be like making two purchases, one funded by debt and the other funded from income.

  17. vto 17

    Wasn’t Muldoon’s think big more actually setting up some industries that could be of value in the future, rather than actual infrastructure. The methanol plant for example. Muldoon was out of control in many other ways too though so perhaps a little different. And as for SMP’s for his constituency – student loans paid by the workers (I refuse to call them free) are the same thing politically. Throw the money at some people you want to vote for you.

    Draco, I have to disagree a great deal. Tax is something that should be used with absolute caution. It’s not just some pool of money that the wgtn power freaks can just dip into at will (tho many do seem to think that way). My point on the political spectrum is such that the people and their own financials come first, the government second. The current govt’s attitude to this is the reverse – witness Cullen’s many words over the years betraying his philosophy here. It is not right.

  18. Draco TB 18

    Draco, I have to disagree a great deal. Tax is something that should be used with absolute caution.

    I agree – there would have to be some very strict rules about such use and probably the use of an independent institution like the RBNZ but I’m not about to speculate on that just ATM.

    My point on the political spectrum is such that the people and their own financials come first, the government second.

    I’m of the opinion that there’s no difference. The individual needs society to achieve what they want and vice versa. There needs to be a balance between the two though. If the government takes too much then the people suffer and the economy collapses but if the government takes too little then government services collapse, the people suffer and the economy collapses. I think Cullen has been trying to walk this fine line and doing a fairly good job of it so far.

  19. Quoth the Raven 19

    Farrar has demonstrated the same hypocracy when it comes to National’s plans and Labour’s budget:
    The Labour line of not borrowing for tax cuts is dead and discredited. Now as I have said, I actually do not have a problem with borrowing for capital investment so long as the operating surplus (OBEGAL) remains positive and large enough to cover the Cullen Fund and a buffer on top of that. But OBEGAL will not be high enough to even cover the Cullen Fund until 2016.

    So where does that leave National’s increased borrowing?

    He has in fact cut them so much he needs to borrow money to put into his Cullen Fund. Anyone else doing that would be howled down. It is indeed a “poison pill’ budget like in 1990 designed to force the next Government to run a deficit or cut spending.

    There will be spending cuts regardless of who is in office. The only difference is Labour calls them “reprioritisation’.

    So this will make it tougher for National. they certainly will be able to deliver tax cuts larger than these ones, but not massively larger unless they get more rigorous with saying no to various spending proposals.

    National’s just promised billions of new spending has Farrar changed his tune now. Okay so DPF is not as bad as Hickey but it’s still poor form. I’m not registered with kiwiblog so can anyone who is bring up the right’s collective amnesia around Labour’s last budget.

  20. Swampy 20

    “Obviously I’m reasonably sensitive about this because I’m in the generation that the previous John Key (Sir Robert Muldoon) used that argument on my parents. Consequently I’ve not only had to help pay for restructuring the useless command economy he left, but also the debt. This was debt to pay for infrastructure that would ensure that my generation would be wealthy enough to pay for easily (right – like that happened). The infrastructure was to be paid for by debt, and that meant that muldoon could pay for SMP’s for his constituency – the rural community.

    Does this sound familiar ”

    What sounds familiar is
    – Blame National for all the bad in the economy
    – Give Labour credit for fixing National’s mistakes

    So Roger Douglas’s reforms of the late 1980s must have been 100% right, never mind that they have been roundly condemned by the Left in general.

    Muldoon followed in the footsteps of a long line of previous governments, National and Labour. He cannot wholly be held responsible for the situation NZ found itself in at the time he was in office. Nor can it be reasonable to pretend there was a major difference between the policies of Roger Douglas and Ruth Richardson.

  21. Swampy 21

    “If the government takes too much then the people suffer and the economy collapses but if the government takes too little then government services collapse, the people suffer and the economy collapses. I think Cullen has been trying to walk this fine line and doing a fairly good job of it so far.”

    No, Cullen and Co have pushed the envelope too far in the direction of the government pushing the private sector out of too many parts of the marketplace so the government can have a greater share or a monopoly.

  22. Kevyn 22

    Correct me if I’m wrong, but isn’t GDP only a measure of consumption quantity rather than consumption quality? As such I can improve my quality of life and reduce the GDP at the same time. For instance the money I spend on an imported cylinder wrap is money I can’t spend on something made in NZ. Once I have installed the wrap my spending on NZ made electricity will fall and I might spend that saved money on a subscription to a foreign magazine. Since the magazine is imported it doesn’t count in the GDP. Now, I am still using as much hot water as did before, thus getting the same standard of living in that regard, but I am also enjoying a new source of reading pleasure so in that respect my standard of living has improved. Yet by using energy more efficiently I have reduced the GDP.

    So is fixating on growing the GDP actually a good thing? In the context of borrwing for roads as a means to increase GDP it seems this will actually work more sucessfully than borrowing to improve the railways. Firstly because imports aren’t included in the GDP spending heaps of money importing wagons and locomotives and electricla equipment won’t increase the GDP whereas spending heap on locally produced cement and gravel and rebar and employing lots of people to put it all together will increase GDP. Whatever impact the two investment option may have on future fuel and vehicle imports is irrelevant if the motivation is confined solely to growing the GDP. But the impact on the balance of payments is going to be quite different and that might affect my future quality of life much more than the artficially grown GDP might.

  23. r0b 23

    I know a lot of debates here feature “GDP”, but it’s actually a very odd measure. Some of the issues are discussed here:
    or here:
    an alternative is described here:
    and many other places e.g. here:

  24. Kevyn 24

    r0b, Excellent links. Just what I wanted.

    The graph at the 2nd link shows a remarkable coincidence between abrupt changes in the GPI trend and some of the most surprising abrupt changes in the US car buyers preferences. Maybe America’s GPI mood-swings are detected soonest by astute car designers and legislators; or the car is so central to American life that their satisfaction/disatisfaction shows up there first.
    The first long plateau ends when the Lee Iococca’s Mustang starts the pony car horsepower race.
    The next plateau begins when Congress enacts federal mandatory vehicle safety standards.
    That plateau ends when OPEC starts pushing Americans into small imports.
    The next plateau begins when Lee Iococca joins Chrysler and launches the MPV (mini passenger van) as the new American station wagon.
    That plateau ends when Chrysler-Jeep launch the SUV.
    Unfortunately the graph stops before either the Hummer or Prius were released. The tables in the Genuine Progress Indicator 2006 have much less dramatic trend changes but they are still there. The GPI actually goes up when the Hummer/Escalade and other mega-SUVs are released, dips at 9/11 then continues rising slowly. The last year is 2004. Eagerly awaiting for an update covering the Prius release and 2006 fuel price surge.

    I wonder if our GPI is reflected in house prices or sizes?

  25. lprent 25


    What sounds familiar is
    – Blame National for all the bad in the economy
    – Give Labour credit for fixing National’s mistakes

    If the hat fits – then wear it. The track record of National is exactly that within my adult life. They simply do not seem to be able to do anything right.

    Of course I’ve only really had 2 national governments that I’ve observed closely.

    The first was Muldoon and that started with the long-term fuckup called national superannuation with its classic passing of costs to future generations. It ended with an economy that was massively constrained by paying the interest on government debt.

    The second was Bolger’s that started with the Mother of All Budgets that drastically cut benefit payments and massively deepened a recession. For all of the excuses that some people use for that budget, there was no need to do it fiscally (no world bank leaning down the back, and having some borrowing capabilities), it was done for purely ideological reasons.

    In the last 9 years, the national opposition has looked like the same set of blind faith ideologues that cause problems. This one just appears to want to do everything covertly and to get in by badmouthing the government rather than showing their own long-term policies. Reminds me of muldoon in 1975, and also sounds like a recipe for another disaster for NZ.

    Labour is less dangerous to have in power because they actually use their brains. They aren’t perfect but they don’t make long-term screw ups like the Nat’s routinely do. I’d argue with a lot of the policy decisions, but at least they tend to be thought out.

  26. vto 26

    Hey Draco (way back up there somewhere) you referred to there needing to be a balance between the people and the government when it comes to taxtion. Of course.

    Between the people and society you mentioned. This is wrong imo. The govt is not society. The people together are society. The govt is an appendage that can carry out some jobs for that society.

    This is where the philosophical differences between left and right crop up. I do nto accept govt as some sort of over-arching representative of my society. At all. My society is the people around me, the first concentric ring around me being my immediate family. Next concentric ring, wider family and friends. Next the local community. Next the district.. etc until the nation state is reached.

    The importance seemingly placed by th left on the position of govt in our society is what turns me off it. It is poorly placed and by its own nature is incapable of performing those tasks hurled at it by, generally, the left. The results of that poor placement are thick on the ground.

Links to post

Recent Comments

Recent Posts

  • Foreign Minister Nanaia Mahuta to attend NATO meeting
    Minister of Foreign Affairs, Nanaia Mahuta, departs for Europe today, where she will attend a session of the NATO Foreign Ministers Meeting in Brussels and make a short bilateral visit to Sweden.  “NATO is a long-standing and likeminded partner for Aotearoa New Zealand. It is valuable to join a session of ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Secure all-of-government facility to be built at Whenuapai
    A secure facility that will house protected information for a broad range of government agencies is being constructed at RNZAF Base Auckland (Whenuapai), Public Service, Defence and GCSB Minister Andrew Little says. The facility will consolidate and expand the government’s current secure storage capacity and capability for at least another ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Flu vaccine to protect Kiwis this winter
    From today, 1.8 million flu vaccines are available to help protect New Zealanders from winter illness, Minister of Health Ayesha Verrall has announced. “Vaccination against flu is safe and will be a first line of defence against severe illness this winter,” Dr Verrall said. “We can all play a part ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Congratulations to Professor Rangi Mātāmua – New Zealander of the Year
    Associate Minister of Arts, Culture and Heritage Willow-Jean Prime has congratulated Professor Rangi Mātāmua (Ngāi Tūhoe) who was last night named the prestigious Te Pou Whakarae o Aotearoa New Zealander of the Year. Professor Mātāmua, who is the government's Chief Adviser Mātauranga Matariki, was the winner of the New Zealander ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Further sanctions on Russian and Belarusian political and military figures
    The Minister of Foreign Affairs Nanaia Mahuta has announced further sanctions on political and military figures from Russia and Belarus as part of the ongoing response to the war in Ukraine. The International Criminal Court (ICC) has issued an arrest warrant for Russia’s Commissioner for Children’s Rights Maria Alekseevna Lvova-Belova ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Ambitious new housing development for Whangārei
    A new public housing development planned for Whangārei will provide 95 warm and dry, modern homes for people in need, Housing Minister Megan Woods says. The Kauika Road development will replace a motel complex in the Avenues with 89 three-level walk up apartments, alongside six homes. “Whangārei has a rapidly ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • CPTPP bolstered by decision on UK accession
    New Zealand welcomes the substantial conclusion of negotiations on the United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), Trade and Export Growth Minister Damien O’Connor announced today. “Continuing to grow our export returns is a priority for the Government and part of our plan to ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Ngā Iwi o Taranaki and the Crown initial Taranaki Maunga collective redress deed (rua reo)
    Ngā Iwi o Taranaki and the Crown initial Taranaki Maunga collective redress deed Ngā Iwi o Taranaki and the Crown have today initialled the Taranaki Maunga Collective Redress Deed, named Te Ruruku Pūtakerongo, Minister for Treaty of Waitangi Negotiations Andrew Little says. “I am pleased to be here for this ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Dates announced for 2023 Pacific language weeks
    Minister for Pacific Peoples Barbara Edmonds has announced the 2023 Pacific Language week series, highlighting the need to revitalise and sustain languages for future generations. “Pacific languages are a cornerstone of our health, wellbeing and identity as Pacific peoples. When our languages are spoken, heard and celebrated, our communities thrive,” ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Over a quarter of New Zealanders to get cost of living relief from tomorrow
    880,000 pensioners to get a boost to Super, including 5000 veterans 52,000 students to see a bump in allowance or loan living costs Approximately 223,000 workers to receive a wage rise as a result of the minimum wage increasing to $22.70 8,000 community nurses to receive pay increase of up ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Thousands of community nurses getting April pay boost
    Over 8000 community nurses will start receiving well-deserved pay rises of up to 15 percent over the next month as a Government initiative worth $200 million a year kicks in, says Minister of Health Dr Ayesha Verrall. “The Government is committed to ensuring nurses are paid fairly and will receive ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Speech to Taranaki Chamber of Commerce and TOI Foundation breakfast
    Tākiri mai ana te ata Ki runga o ngākau mārohirohi Kōrihi ana te manu kaupapa Ka ao, ka ao, ka awatea Tihei mauri ora Let the dawn break On the hearts and minds of those who stand resolute As the bird of action sings, it welcomes the dawn of a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government takes next step to lift artists’ incomes
    The Government is introducing a scheme which will lift incomes for artists, support them beyond the current spike in cost of living and ensure they are properly recognised for their contribution to New Zealand’s economy and culture.    “In line with New Zealand’s Free Trade Agreement with the UK, last ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ stands with Vanuatu on climate at UN
    New Zealand is welcoming a decision by the United Nations General Assembly to ask the International Court of Justice to consider countries’ international legal obligations on climate change. The United Nations has voted unanimously to adopt a resolution led by Vanuatu to ask the ICJ for an advisory opinion on ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • More Police deployed to the frontline
    More Police officers are being deployed to the frontline with the graduation of 59 new constables from the Royal New Zealand Police College today. “The graduation for recruit wing 364 was my first since becoming Police Minister last week,” Ginny Andersen said. “It was a real honour. I want to ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Aotearoa New Zealand committed to an enduring partnership with Vanuatu
    Foreign Minister Nanaia Mahuta met with Vanuatu Foreign Minister Jotham Napat in Port Vila, today, signing a new Statement of Partnership — Aotearoa New Zealand’s first with Vanuatu. “The Mauri Statement of Partnership is a joint expression of the values, priorities and principles that will guide the Aotearoa New Zealand–Vanuatu relationship into ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government delivers levy change to support Fire and Emergency
    The Government has passed new legislation amending the Fire and Emergency New Zealand (FENZ) levy regime, ensuring the best balance between a fair and cost effective funding model. The Fire and Emergency New Zealand (Levy) Amendment Bill makes changes to the existing law to: charge the levy on contracts of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Next steps for New Zealand’s organic regulations
    The Government has passed the Organic Products and Production Bill through its third reading today in Parliament helping New Zealand’s organic sector to grow and lift export revenue. “The Organic Products and Production Bill will introduce robust and practical regulation to give businesses the certainty they need to continue to ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Govt helps to protect New Zealanders digital identities
    The Digital Identity Services Trust Framework Bill, which will make it easier for New Zealanders to safely prove who they are digitally has passed its third and final reading today. “We know New Zealanders want control over their identity information and how it’s used by the companies and services they ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Cyclone Taskforce focused on locally-led recovery
    The full Cyclone Gabrielle Recovery Taskforce has met formally for the first time as work continues to help the regions recover and rebuild from Cyclone Gabrielle. The Taskforce, which includes representatives from business, local government, iwi and unions, covers all regions affected by the January and February floods and cyclone. ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Law changed to protect subcontractors
    Changes have been made to legislation to give subcontractors the confidence they will be paid the retention money they are owed should the head contractor’s business fail, Minister for Building and Construction Megan Woods announced today. “These changes passed in the Construction Contracts (Retention Money) Amendment Act safeguard subcontractors who ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New congestion busting harbour crossing options unveiled
    Transport Minister Michael Wood has unveiled five scenarios for one of the most significant city-shaping projects for Tāmaki Makaurau in coming decades, the additional Waitematā Harbour crossing. “Aucklanders and businesses have made it clear that the biggest barriers to the success of Auckland is persistent congestion and after years of ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New law enhances safety and security in the aviation sector
    The Government has passed new legislation that ensures New Zealand’s civil aviation rules are fit for purpose in the 21st century, Associate Transport Minister Kiri Allan says. The Civil Aviation Bill repeals and replaces the Civil Aviation Act 1990 and the Airport Authorities Act 1966 with a single modern law ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Coroners Amendment Bill passes third reading
    A Bill aimed at helping to reduce delays in the coronial jurisdiction passed its third reading today. The Coroners Amendment Bill, amongst other things, will establish new coronial positions, known as Associate Coroners, who will be able to perform most of the functions, powers, and duties of Coroners. The new ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Review into Stuart Nash’s communications with donors
    The Prime Minister has asked the Cabinet Secretary to conduct a review into communications between Stuart Nash and his donors. The review will take place over the next two months.  The review will look at whether there have been any other breaches of cabinet collective responsibility or confidentiality, or whether ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • 600 more workers to support recovery
    The new Recovery Visa to help bring in additional migrant workers to support cyclone and flooding recovery has attracted over 600 successful applicants within its first month. “The Government is moving quickly to support businesses bring in the workers needed to recover from Cyclone Gabrielle and the Auckland floods,” Michael ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Bills to vet school boards, contractors pass first reading
    Bills to ensure non-teaching employees and contractors at schools, and unlicensed childcare services like mall crèches are vetted by police, and provide safeguards for school board appointments have passed their first reading today. The Education and Training Amendment Bill (No. 3) and the Regulatory Systems (Education) Amendment Bill have now ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Bill recognises unique role and contribution of Wānanga and Kura Kaupapa Māori
    Wānanga will gain increased flexibility and autonomy that recognises the unique role they fill in the tertiary education sector, Associate Minister of Education Kelvin Davis has announced. The Education and Training Amendment Bill (No.3), that had its first reading today, proposes a new Wānanga enabling framework for the three current ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Foreign Affairs Minister talks to the Vanuatu Government on Pacific issues
    Foreign Affairs Minister Nanaia Mahuta will travel to Vanuatu today, announcing that Aotearoa New Zealand will provide further relief and recovery assistance there, following the recent destruction caused by Cyclones Judy and Kevin. While in Vanuatu, Minister Mahuta will meet with Vanuatu Acting Prime Minister Sato Kilman, Foreign Minister Jotham ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Major investment to support the safety of frontline Police and communities
    The Government is backing Police and making communities safer with the roll-out of state-of-the-art tools and training to frontline staff, Police Minister Ginny Andersen said today. “Frontline staff face high-risk situations daily as they increasingly respond to sophisticated organised crime, gang-violence and the availability of illegal firearms,” Ginny Andersen said.  ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Further laws passed to keep communities safe from gang offending
    The Government has provided Police with more tools to crack down on gang offending with the passing of new legislation today which will further improve public safety, Justice Minister Kiri Allan says. The Criminal Activity Intervention Legislation Bill amends existing law to: create new targeted warrant and additional search powers ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Standard kerbside recycling part of new era for waste system
    The Government today announced far-reaching changes to the way we make, use, recycle and dispose of waste, ushering in a new era for New Zealand’s waste system. The changes will ensure that where waste is recycled, for instance by households at the kerbside, it is less likely to be contaminated ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New laws will crack down on gang profits and criminal assets
    New legislation passed by the Government today will make it harder for gangs and their leaders to benefit financially from crime that causes considerable harm in our communities, Minister of Justice Kiri Allan says. Since the Criminal Proceeds (Recovery) Act 2009 came into effect police have been highly successful in ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Stuart Nash dismissed from Cabinet
    This evening I have advised the Governor-General to dismiss Stuart Nash from all his ministerial portfolios. Late this afternoon I was made aware by a news outlet of an email Stuart Nash sent in March 2020 to two contacts regarding a commercial rent relief package that Cabinet had considered. In ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Tax incentive to boost housing passes third reading
    Legislation to enable more build-to-rent developments has passed its third reading in Parliament, so this type of rental will be able to claim interest deductibility in perpetuity where it meets the requirements. Housing Minister Dr Megan Woods, says the changes will help unlock the potential of the build-to-rent sector and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Law levels playing field for low-emissions commuting
    A law passed by Parliament today exempts employers from paying fringe benefit tax on certain low emission commuting options they provide or subsidise for their staff.  “Many employers already subsidise the commuting costs of their staff, for instance by providing car parks,” Environment Minister David Parker said.  “This move supports ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • 40 years of Closer Economic Relations with Australia
    Today marks the 40th anniversary of Closer Economic Relations (CER), our gold standard free trade agreement between New Zealand and Australia. “CER was a world-leading agreement in 1983, is still world-renowned today and is emblematic of both our countries’ commitment to free trade. The WTO has called it the world’s ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Amendments to mass arrivals legislation
    The Government is making procedural changes to the Immigration Act to ensure that 2013 amendments operate as Parliament intended.   The Government is also introducing a new community management approach for asylum seekers. “While it’s unlikely we’ll experience a mass arrival due to our remote positioning, there is no doubt New ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Progress on public service pay adjustment
    The Government welcomes progress on public sector pay adjustment (PSPA) agreements, and the release of the updated public service pay guidance by the Public Service Commission today, Minister for the Public Service Andrew Little says. “More than a dozen collective agreements are now settled in the public service, Crown Agents, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Further legislation introduced to support cyclone recovery
    The Government has introduced the Severe Weather Emergency Recovery Legislation Bill to further support the recovery and rebuild from the recent severe weather events in the North Island. “We know from our experiences following the Canterbury and Kaikōura earthquakes that it will take some time before we completely understand the ...
    BeehiveBy beehive.govt.nz
    6 days ago

Page generated in The Standard by Wordpress at 2023-04-02T02:49:31+00:00