Tax cuts don’t cause growth

Written By: - Date published: 6:51 am, May 24th, 2010 - 30 comments
Categories: budget 2010, economy, tax - Tags: ,

Tories claim that tax cuts “cause growth” in the economy. They “grow the pie”. How much growth exactly? How much growth from the budget tax cuts?

The Budget tax package is conservatively forecast to add about 1% to the size of the economy by 2017, says English.

1% ? By 2017 ? Pardon me if I am underwhelmed. That’s not even a real prediction of growth, that’s margin of error. Keith Ng:

This is actually a tax cut. It will cost $1.085b in the next four years. The only reason they can say it’s ‘revenue positive’ by 2013/14 is by adding a line called ‘Adjustment for macroeconomic effects’. That is, they argue that tax cuts will spur economic growth, and therefore the economy will grow faster, and so it’ll be revenue positive by 2013/14.

It would be unfair to call this magic money, but at the very least, it’s entirely theoretical money. Not only can we not know whether it’s real or not now, but we won’t know whether it’s real or not in 2013/14.

The reason the Nats aren’t predicting real growth is that they know it isn’t true. “Growth” is just one of the lines they run to keep us nodding dumbly while they hand huge cuts to the rich. Tax cuts don’t cause growth. Gordon Campbell took them to task on this:

Will the tax cuts deliver economic growth, savings, jobs and higher wages? For decades, right wing economists have claimed both here and overseas that tax cuts are a crucial engine of economic growth. Reality, as often as not, has begged to differ.

Here in New Zealand during the mid 1980s, a major package of tax cuts was followed by years of little or no growth, and ultimately, by a recession. In the early 1990s, Bill Clinton’s tax hikes immediately preceded the longest and most sustained economic boom in the US since the Second World War.

In 1998, the true believers in the National government were predicting that tax cuts would foster savings fully one third of that round of tax cuts, Treasury predicted, would be saved. They weren’t.

In 2000, the incoming government hiked up the top tax rate and this neither caused, nor prevented, a prolonged bout of economic good times. Ultimately, there is no essential link, either way, between tax cuts and economic growth.

Tax cuts haven’t caused growth historically in America:

The highest period of growth in U.S. history (1933-1973) also saw its highest tax rates on the rich: 70 to 91 percent. …

A review of American history makes the opposite case that conservatives would like it to make: high growth usually coincides with high taxes. During both world wars, taxes soared to record heights. And the supercharged economies that resulted produced high growth for decades afterwards. World War I was followed by the Roaring 20s; World War II was followed by the boom times of the 50s and 60s.

Tax cuts haven’t caused growth recently in America:

Myth 3: The economy has grown strongly over the past several years because of the tax cuts. Reality: The 2001-2007 economic expansion was sub-par overall, and job and wage growth were anemic.

Members of the Administration routinely tout statistics regarding recent economic growth, then credit the President’s tax cuts with what they portray as a stellar economic performance. But as a general rule, it is difficult or impossible to infer the effect of a given tax cut from looking at a few years of economic data, simply because so many factors other than tax policy influence the economy. What the data do show clearly is that, despite major tax cuts in 2001, 2002, 2003, 2004, and 2006, the economy’s performance between 2001 and 2007 was [far from] from stellar.

And in 2008? The American economy, despite all the recent Bush tax cuts, simply imploded.

The truth is that tax cuts come and go. Growth comes and goes. Sometimes cuts and growth coincide, sometimes they don’t. But no honest review of the long term historical picture can sustain the claim that “tax cuts cause growth”. They do not. So let’s not put up with this lie anymore!

30 comments on “Tax cuts don’t cause growth ”

  • Comments are now closed

  1. mickysavage 1
    24 May 2010 at 8:13 am

    The further problem with the tax cuts is that they will exacerbate the country’s balance of payments problem.

    Far too much of the shareholding in our listed companies is owned by overseas interests. The company tax cut will see the flow of dividends overseas increase.

    And the wealthy are fairly predictable in their spending habits. Give them extra money and they will either import more or take more overseas trips. Both types of behaviour will again cause the balance of payment problem to worsen.

  2. Bored 2
    24 May 2010 at 8:35 am

    Lets just see the tax cuts for what they really are, a massive transfer of the collective pool of cash earmarked for public expenditure) too the rich. What this means is less of any of the things we collectively use, such as health and education services for all etc etc.

    ROB is right, this is never going to deliver growth, the rich are grasping so hard for tax cuts because they have reached the limits of growth, or easy ways of gaining “productivity” in NZ. The mobile nature of capital means that those who get the greatest returns will invest in Somali factories, Honduran sweatshops and Phillipine call centres by way of international corporate shares.

    Which means we shall see declining services and more calls for efficiency and cost cutting. Meanwhile if you are a million dollar income person, who cares, you just buy what you need and damn the rest of us.

  3. Name 3
    24 May 2010 at 9:37 am

    Tax cuts can grow a nation’s economy if they stimulate it – ie if they are spent or invested on the means of production within it. New Zealand does not have that kind of economy.

    New Zealanders getting tax cuts are not going to spend the extra cash on the things New Zealand produces – who is going to buy more milk, butter, cheese, meat or seafood than they did before? And even if they did that would merely divert to the home market goods which would otherwise be exported and earn foreign exchange. To the extent tax cuts are spent on consumer goods they merely increase employment and profits in China, India, the US etc.

    No-one in their right mind will invest in New Zealand’s moribund stock market, which is anyway small enough to be played and creamed by even a moderately-sized hedge-fund. And who with any kind of mind at all would be stupid enough to invest with a Finance Company now?

    So about the only thing – apart from foreign jobs – that New Zealanders can spend their tax cuts on is their mortgage, which means everyone will be able to afford a bigger one, which means that property prices will go up across the board to soak up the extra buying power.

    • Zaphod Beeblebrox 3.1
      24 May 2010 at 9:50 am

      So true, be interesting to see what the effect of tax cuts will be on the Current Account deficit. Since the wealthy mainly consume things not produced in NZ, I’m tipping it will be fairly ugly.

      [Zaphod – there’s lots of junk in the name field when you write a comment – I keep deleting it – can you check – ta — r0b]

      • Draco T Bastard 3.1.1
        24 May 2010 at 1:33 pm

        The junk in the name field seems to happen at the servers end. It seems that it automatically puts “http://” in the web address field for instance.

    • Draco T Bastard 3.2
      24 May 2010 at 1:30 pm

      Tax cuts can grow a nation’s economy if they stimulate it ie if they are spent or invested on the means of production within it. New Zealand does not have that kind of economy.

      No country does. It’s really only the government, operating as the peoples administrators, that direct investment to grow the economy (and even then it will only be a socialist government that will do so). Individuals will only take the best option for them and that means, in this globalised economy, investing somewhere else where growth can be tapped for interest. NZ, and many other industrialized countries, don’t have that growth potential.

  4. randal 4
    24 May 2010 at 11:10 am

    rob you must kneow that the simple minded need some sort of myth legend slogan mantra to repeat ad nauseum. all leaders know that the purpose of propaganda is not to ensure compliance to the idea but to make sure that everyone is singing from the same songsheet and to ferret out backsliders.
    this sort of jingoistic tripe from national is tailor made to let the idiotes in the national party believe that they are actually doing something when all they are really doing is providing cover so the real issues are never examined. lets have the evidence of this assertion but you know and I know there is no evidence but as long as the gnats are in power they will just keep trotting out the same old tripe.

  5. nzfp 5
    24 May 2010 at 11:31 am

    Hey r0b,
    When you report “Tax cuts don’t cause growth” it really depends on the context of the cut. I understand as will the rest of your readers that you are refering to the tax cuts in the recently released National budget. However, it is important to remember that the National tax cuts – without appropriate land tax and regulation on the housing market – will very likely cause growth in the NZ housing market.

    Without land tax and regulation any available capital will be soaked up by the Banks as mortgage capitalization. Upper, and upper middle income earners with more cash, now have more capital available to them to bid up the prices of property which in turn increases spending (debt) which is the key indicator of GDP. The effect will be to worsen housing affordability and push house prices further out of reach of avearage New Zealanders, forcing families into requiring two incomes, greater debt and risk.

    Of course if the tax cuts took the form of high income taxes, land and economic rent tax and financial transaction taxes then we would see a stimulation of our economy. However, tax reforms such as these would result in the majority of the tax burden shifting from labour onto the rich and the banks which is exactly the demographic our Prime Minister, Deputy Prime Minister, and most of the sitting MP’s from any party are placed.

    There’s a couple of great coloquialism that go something like “don’t $#!t where you sleep” and “pigs might fly”.

  6. TightyRighty 6
    24 May 2010 at 12:21 pm

    if tax cuts don’t grow the pie, is it not a good thing that more of the pie remains in the hands of those who have earnt it?

    it isn’t really a given that the only form of investement outside of property is in the stock market in the form of individual stocks per se. a lot of kiwisaver funds, and even the cullen fund, are indexed against the NZSX and other foreign stock exchanges, and those portions of the funds can show a healthy return. In fact, investing in an indexed fund can show a better return on investement than property, without the absolute risk of investing in one company.

    So if a private individual with more of their income left in their pocket invests in one of these freely available indexed funds, and it shows a return, that grows the individuals pie right? now multiply that by all the individuals in the market, does that not grow the whole pie?

    • Bright Red 6.1
      24 May 2010 at 12:32 pm

      “if tax cuts don’t grow the pie, is it not a good thing that more of the pie remains in the hands of those who have earnt it? ”

      Are you saying that because you earn less than me, you don’t work as hard tighty? You lazy bugger.

      “blah blah blah, does that not grow the whole pie?”

      No, it doesn’t, the facts show it doesn’t. Sorry. Want to know why? Because the moeny for the tax cuts didn’t come out of thin air. If the tax cuts are spent or invested it’s only because others couldn’t spend or invest the money instead.

      • TightyRighty 6.1.1
        24 May 2010 at 12:56 pm

        i take it your first point is sarcasm, pretty weak sarcasm at that.

        Your second point though, well. Tax cuts are a reduction in revenue to the government, this is matched by an increase in after tax income for the individual and business that pay tax. it’s a book keeping thing.
        “If the tax cuts are spent or invested it’s only because others couldn’t spend or invest the money instead.” so it’s a bad thing that workers get to decide whether or not to consume or invest the difference in their income after tax cuts, as opposed to someone else doing it with their money?

        I know you like to attack the ideaology behind a message rather than the message itself, which was politically neutral, but can’t you see the reasoning of the message? if the cullen fund should not have had it’s contributions stopped, as the cullen fund is growing it’s pie, why shouldn’t tax cuts be able to grow the pie if they leave individuals extra income available for investing?

  7. Draco T Bastard 7
    24 May 2010 at 12:48 pm

    And in 2008? The American economy, despite all the recent Bush tax cuts, simply imploded.

    It’s probably more accurate to say that the US economy imploded because of the tax cuts.

    • TightyRighty 7.1
      24 May 2010 at 2:54 pm

      really? why? there seem to be several underlying factors to the bust in 2008. some can be traced back to the clinton era. and yet tax cuts caused the whole thing? i find it hard to believe that you can draw a plausible link between workers have more of their own money in their pockets and the implosion of an entire economy.

      • The Voice of Reason 7.1.1
        24 May 2010 at 3:19 pm

        Because, like here, the tax cuts went to the wealthy in Bush’s handout, not workers. Instead of having money to spend, American workers were encouraged to borrow to live the dream and it was that reckless lending that knackered the US economy.

        There is every chance that something similar will happen here, as workers borrow to cover the gap the Nats’ tax hike has created. Not to mention that the cuts in public services that will partially pay for this backhanded bung will impact most heavily on workers as well. Its Win/Win for the wealthy, Lose/Lose for the many.

        • TightyRighty 7.1.1.1
          24 May 2010 at 3:35 pm

          what tax hike for the workers? do you mean the adjustment to where the tax dollars come from to a more equitable tax on consumption rather than a regressive income tax? so that people can have a choice as to whether they want to consume everything now, or save a portion and be able to consume more in the future?

          • The Voice of Reason 7.1.1.1.1
            24 May 2010 at 8:11 pm

            What choice? What savers? Consumerism is compulsory in western society, haven’t you seen the ads? The tax cut on wages will be less than the increased outlay on the current NZ household budget with the new tax increase on consumption. And the promotion of consumption is what capitalism depends on. No spending, no capitalism.

            The simple fact is that workers will pay more tax under this bludgers’ budget, because the vast majority of us spend our income and more. The rich have choice, because they have more disposable income above that needed for daily sustenance by the rest of us. There is no point pretending this tax increase gives working people a choice. If you want to give them real choice, give them a wage rise. Hell, give ’em the company! Could hardly do worse than some of the plonkers running firms here, bleating that they can’t make a profit in the one of least regulated, lowest taxed business environments in the Western world.

      • Draco T Bastard 7.1.2
        24 May 2010 at 11:44 pm

        i find it hard to believe that you can draw a plausible link between workers have more of their own money in their pockets and the implosion of an entire economy.

        The money didn’t go to the workers but to the capitalists which increased the amount of hot money looking for a a high return investment in the financial economy. This was to the tune of a few hundred billion per year. It was this demand that increased the amount of high risk debts and fed the US housing bubble. I’d say it fed into ours as well.

  8. mickysavage 8
    24 May 2010 at 1:28 pm

    The only reason they can say it’s “revenue positive’ by 2013/14 is by adding a line called “Adjustment for macroeconomic effects’

    This is amazing. In other words put in an extra line for something which you have no proof will happen and essentially call it profit.

    It is the sort of thing that Merrill Lynch would do.

    Is there someone in the Government that used to work for ML?

    • Zaphod Beeblebrox 8.1
      24 May 2010 at 9:37 pm

      Maybe the NZ government can take out a deriviative on the increased income they think they will have in 3 years. Mr Merrill Lynch could then convert NZ inc. into a giant ponzi scheme. Not a bad way to buy an election- just keep putting off payment until you are out of power!

  9. ianmac 9
    24 May 2010 at 2:48 pm

    Tax cuts might be the least of our problems.
    Just been talking to an Economist and its way outside my ken. But the gist is that he believes that there is a huge shift happening that is greater than that any since cave-men or cave women. The cyclic pattern of boom and bust is about to implode in our lifetime. Causes such as peak oil, and the effects of global warming, and overpopulation could precipitate a massive collapse. These changes are unique to our era.
    To me as a non-economist it could be the big picture that we are missing; the elephant in the room sort of thing.

    • Zaphod Beeblebrox 9.1
      24 May 2010 at 9:42 pm

      Errr.. might pay for you to read the latest IPCC report. Unless we act now its almost a sure fire guarantee that food, water and fuel shortages will constrain future economic growth

      • Draco T Bastard 9.1.1
        24 May 2010 at 11:49 pm

        Actually, it’s already guaranteed. Peak Oil does that all by itself. AGW just adds to the calamity.

    • handle 9.2
      27 May 2010 at 12:34 am

      More please, Ian

  10. Peter Martin 10
    25 May 2010 at 12:14 am

    Interestingly the Angrybear blog has just done a post along these lines :’ Government Spending and Economic Expansions’.

    It was summarised …’while there were weren’t all that many recessions during which federal government spending as a share of GDP fell, those recessions tended to produce shorter, slower expansions than other recessions….Now… consider last week’s post, which showed that recessions during which marginal tax rates were followed by underperforming expansions. The two findings seem to suggest that when it comes to getting the economy moving again during and just after a recession, government spending seems to be more important than private sector spending.’

    http://www.angrybearblog.com/2010/05/government-spending-and-economic.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2FHzoh+%28Angry+Bear%29

    • Pascal's bookie 10.1
      25 May 2010 at 5:12 am

      Anyone would think that during and coming out of a recession, the private sector is more concerned with cutting costs and getting debt under control than investing in growth. That they are not confident about short term future sales so they retrench. And that especially when exports are also shakey that maybe the government can assist by providing some demand in the economy.

      • handle 10.1.1
        27 May 2010 at 12:37 am

        And lo, Bill English behaves as if he’s the private sector, not the government – just like he did in the late 90s. Silly scared lad that he is. We need grown-ups in charge.

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    Eric Crampton writes – Kainga Ora is the government’s house building agency. It’s been building a lot of social housing. Kainga Ora has its own (but independent) consenting authority, Consentium. It’s a neat idea. Rather than have to deal with building consents across each different territorial authority, Kainga Ora ...
    Point of OrderBy poonzteam5443
    1 day ago

  • Coalition promises – will the Govt keep the commitment to keep Kiwis equal before the law?
    Muriel Newman writes – The Coalition Government says it is moving with speed to deliver campaign promises and reverse the damage done by Labour. One of their key commitments is to “defend the principle that New Zealanders are equal before the law.” To achieve this, they have pledged they “will not advance ...
    Point of OrderBy poonzteam5443
    1 day ago

  • An impermanent public service is a guarantee of very little else but failure
    Chris Trotter writes –  The absence of anything resembling a fightback from the public servants currently losing their jobs is interesting. State-sector workers’ collective fatalism in the face of Coalition cutbacks indicates a surprisingly broad acceptance of impermanence in the workplace. Fifty years ago, lay-offs in the thousands ...
    Point of OrderBy poonzteam5443
    1 day ago

  • What happens after the war – Mariupol
    Mariupol, on the Azov Sea coast, was one of the first cities to suffer almost complete destruction after the start of the Ukraine War started in late February 2022. We remember the scenes of absolute destruction of the houses and city structures. The deaths of innocent civilians – many of ...
    Open ParachuteBy Ken
    1 day ago

  • Babies and benefits – no good news
    Lindsay Mitchell writes – Ten years ago, I wrote the following in a Listener column: Every year around one in five new-born babies will be reliant on their caregivers benefit by Christmas. This pattern has persisted from at least 1993. For Maori the number jumps to over one in three.  ...
    Point of OrderBy poonzteam5443
    1 day ago

  • Should the RBNZ be looking through climate inflation?
    Climate change is expected to generate more and more extreme events, delivering a sort of structural shock to inflation that central banks will have to react to as if they were short-term cyclical issues. Photo: Lynn Grieveson / The KākāMy pick of the six newsey things to know from Aotearoa’s ...
    The KakaBy Bernard Hickey
    1 day ago

  • Bernard's pick 'n' mix of the news links
    The top six news links I’ve seen elsewhere in the last 24 hours, as of 9:16 am on Thursday, April 18 are:Housing: Tauranga residents living in boats, vans RNZ Checkpoint Louise TernouthHousing: Waikato councillor says wastewater plant issues could hold up Sleepyhead building a massive company town Waikato Times Stephen ...
    The KakaBy Bernard Hickey
    1 day ago

  • Gordon Campbell on the public sector carnage, and misogyny as terrorism
    It’s a simple deal. We pay taxes in order to finance the social services we want and need. The carnage now occurring across the public sector though, is breaking that contract. Over 3,000 jobs have been lost so far. Many are in crucial areas like Education where the impact of ...
    Gordon CampbellBy lyndon
    1 day ago

  • Meeting the Master Baiters
    Hi,A friend had their 40th over the weekend and decided to theme it after Curb Your Enthusiasm fashion icon Susie Greene. Captured in my tiny kitchen before I left the house, I ending up evoking a mix of old lesbian and Hillary Clinton — both unintentional.Me vs Hillary ClintonIf you’re ...
    David FarrierBy David Farrier
    1 day ago

  • How extreme was the Earth's temperature in 2023
    This is a re-post from Andrew Dessler at the Climate Brink blog In 2023, the Earth reached temperature levels unprecedented in modern times. Given that, it’s reasonable to ask: What’s going on? There’s been lots of discussions by scientists about whether this is just the normal progression of global warming or if something ...
    Skeptical Science
    2 days ago

  • Backbone, revisited
    The schools are on holiday and the sun is shining in the seaside village and all day long I have been seeing bunches of bikes; Mums, Dads, teens and toddlers chattering, laughing, happy, having a bloody great time together. Cheers, AT, for the bits of lane you’ve added lately around the ...
    More Than A FeildingBy David Slack
    2 days ago

  • Ministers are not above the law
    Today in our National-led authoritarian nightmare: Shane Jones thinks Ministers should be above the law: New Zealand First MP Shane Jones is accusing the Waitangi Tribunal of over-stepping its mandate by subpoenaing a minister for its urgent hearing on the Oranga Tamariki claim. The tribunal is looking into the ...
    No Right TurnBy Idiot/Savant
    2 days ago

  • What’s the outfit you can hear going down the gurgler? Probably it’s David Parker’s Oceans Sec...
    Buzz from the Beehive Point  of Order first heard of the Oceans Secretariat in June 2021, when David Parker (remember him?) announced a multi-agency approach to protecting New Zealand’s marine ecosystems and fisheries. Parker (holding the Environment, and Oceans and Fisheries portfolios) broke the news at the annual Forest & ...
    Point of OrderBy Bob Edlin
    2 days ago

  • Will politicians let democracy die in the darkness?
    Bryce Edwards writes  – Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. ...
    Point of OrderBy poonzteam5443
    2 days ago

  • Matt Doocey doubles down on trans “healthcare”
    Citizen Science writes –  Last week saw two significant developments in the debate over the treatment of trans-identifying children and young people – the release in Britain of the final report of Dr Hilary Cass’s review into gender healthcare, and here in New Zealand, the news that the ...
    Point of OrderBy poonzteam5443
    2 days ago

  • A TikTok Prime Minister.
    One night while sleeping in my bed I had a beautiful dreamThat all the people of the world got together on the same wavelengthAnd began helping one anotherNow in this dream, universal love was the theme of the dayPeace and understanding and it happened this wayAfter such an eventful day ...
    Nick’s KōreroBy Nick Rockel
    2 days ago

  • Texas Lessons
    This is a guest post by Oscar Simms who is a housing activist, volunteer for the Coalition for More Homes, and was the Labour Party candidate for Auckland Central at the last election. ...
    Greater AucklandBy Guest Post
    2 days ago

  • Bernard's pick 'n' mix of the news links at 6:06 am
    The top six news links I’ve seen elsewhere in the last 24 hours as of 6:06 am on Wednesday, April 17 are:Must read: Secrecy shrouds which projects might be fast-tracked RNZ Farah HancockScoop: Revealed: Luxon has seven staffers working on social media content - partly paid for by taxpayer Newshub ...
    The KakaBy Bernard Hickey
    2 days ago

  • Fighting poverty on the holiday highway
    Turning what Labour called the “holiday highway” into a four-lane expressway from Auckland to Whangarei could bring at least an economic benefit of nearly two billion a year for Northland each year. And it could help bring an end to poverty in one of New Zealand’s most deprived regions. The ...
    PolitikBy Richard Harman
    2 days ago

  • Bernard's six-stack of substacks at 6:26 pm
    Tonight’s six-stack includes: launching his substack with a bunch of his previous documentaries, including this 1992 interview with Dame Whina Cooper. and here crew give climate activists plenty to do, including this call to submit against the Fast Track Approvals bill. writes brilliantly here on his substack ...
    The KakaBy Bernard Hickey
    3 days ago

  • At a glance – Is the science settled?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    Skeptical Science
    3 days ago

  • Apposite Quotations.
    How Long Is Long Enough? Gaza under Israeli bombardment, July 2014. This posting is exclusive to Bowalley Road. ...
    Bowalley Road
    3 days ago

  • What’s a life worth now?
    You're in the mall when you hear it: some kind of popping sound in the distance, kids with fireworks, maybe. But then a moment of eerie stillness is followed by more of the fireworks sound and there’s also screaming and shrieking and now here come people running for their lives.Does ...
    More Than A FeildingBy David Slack
    3 days ago

  • Howling at the Moon
    Karl du Fresne writes –  There’s a crisis in the news media and the media are blaming it on everyone except themselves. Culpability is being deflected elsewhere – mainly to the hapless Minister of Communications, Melissa Lee, and the big social media platforms that are accused of hoovering ...
    Point of OrderBy poonzteam5443
    3 days ago

  • Newshub is Dead.
    I don’t normally send out two newsletters in a day but I figured I’d say something about… the news. If two newsletters is a bit much then maybe just skip one, I don’t want to overload people. Alternatively if you’d be interested in sometimes receiving multiple, smaller updates from me, ...
    Nick’s KōreroBy Nick Rockel
    3 days ago

  • Seymour is chuffed about cutting early-learning red tape – but we hear, too, that Jones has loose...
    Buzz from the Beehive David Seymour and Winston Peters today signalled that at least two ministers of the Crown might be in Wellington today. Seymour (as Associate Minister of Education) announced the removal of more red tape, this time to make it easier for new early learning services to be ...
    Point of OrderBy Bob Edlin
    3 days ago

  • Bryce Edwards: Will politicians let democracy die in the darkness?
    Politicians across the political spectrum are implicated in the New Zealand media’s failing health. Either through neglect or incompetent interventions, successive governments have failed to regulate, foster, and allow a healthy Fourth Estate that can adequately hold politicians and the powerful to account. Our political system is suffering from the ...
    Democracy ProjectBy bryce.edwards
    3 days ago

  • Was Hawkesby entirely wrong?
    David Farrar  writes –  The Broadcasting Standards Authority ruled: Comments by radio host Kate Hawkesby suggesting Māori and Pacific patients were being prioritised for surgery due to their ethnicity were misleading and discriminatory, the Broadcasting Standards Authority has found. It is a fact such patients are prioritised. ...
    Point of OrderBy poonzteam5443
    3 days ago

  • PRC shadow looms as the Solomons head for election
    PRC and its proxies in Solomons have been preparing for these elections for a long time. A lot of money, effort and intelligence have gone into ensuring an outcome that won’t compromise Beijing’s plans. Cleo Paskall writes – On April 17th the Solomon Islands, a country of ...
    Point of OrderBy poonzteam5443
    3 days ago

  • Climate Change: Criminal ecocide
    We are in the middle of a climate crisis. Last year was (again) the hottest year on record. NOAA has just announced another global coral bleaching event. Floods are threatening UK food security. So naturally, Shane Jones wants to make it easier to mine coal: Resources Minister Shane Jones ...
    No Right TurnBy Idiot/Savant
    3 days ago

  • Is saving one minute of a politician's time worth nearly $1 billion?
    Is speeding up the trip to and from Wellington airport by 12 minutes worth spending up more than $10 billion? Photo: Lynn Grieveson / The KākāTL;DR: The six news items that stood out to me in the last day to 8:26 am today are:The Lead: Transport Minister Simeon Brown announced ...
    The KakaBy Bernard Hickey
    3 days ago

  • Long Tunnel or Long Con?
    Yesterday it was revealed that Transport Minister had asked Waka Kotahi to look at the options for a long tunnel through Wellington. State Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the ...
    Greater AucklandBy Matt L
    3 days ago

  • Smoke And Mirrors.
    You're a fraud, and you know itBut it's too good to throw it all awayAnyone would do the sameYou've got 'em goingAnd you're careful not to show itSometimes you even fool yourself a bitIt's like magicBut it's always been a smoke and mirrors gameAnyone would do the sameForty six billion ...
    Nick’s KōreroBy Nick Rockel
    3 days ago

  • What is Mexico doing about climate change?
    This is a re-post from Yale Climate Connections The June general election in Mexico could mark a turning point in ensuring that the country’s climate policies better reflect the desire of its citizens to address the climate crisis, with both leading presidential candidates expressing support for renewable energy. Mexico is the ...
    Skeptical Science
    3 days ago

  • State of humanity, 2024
    2024, it feels, keeps presenting us with ever more challenges, ever more dismay.Do you give up yet? It seems to ask.No? How about this? Or this?How about this?When I say 2024 I really mean the state of humanity in 2024.Saturday night, we watched Civil War because that is one terrifying cliff we've ...
    More Than A FeildingBy David Slack
    4 days ago

  • Govt’s Wellington tunnel vision aims to ease the way to the airport (but zealous promoters of cycl...
    Buzz from the Beehive A pet project and governmental tunnel vision jump out from the latest batch of ministerial announcements. The government is keen to assure us of its concern for the wellbeing of our pets. It will be introducing pet bonds in a change to the Residential Tenancies Act ...
    Point of OrderBy Bob Edlin
    4 days ago

  • The case for cultural connectedness
    A recent report generated from a Growing Up in New Zealand (GUiNZ) survey of 1,224 rangatahi Māori aged 11-12 found: Cultural connectedness was associated with fewer depression symptoms, anxiety symptoms and better quality of life. That sounds cut and dry. But further into the report the following appears: Cultural connectedness is ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Useful context on public sector job cuts
    David Farrar writes –    The Herald reports: From the gory details of job-cuts news, you’d think the public service was being eviscerated.   While the media’s view of the cuts is incomplete, it’s also true that departments have been leaking the particulars faster than a Wellington ...
    Point of OrderBy poonzteam5443
    4 days ago

  • Gordon Campbell On When Racism Comes Disguised As Anti-racism
    Remember the good old days, back when New Zealand had a PM who could think and speak calmly and intelligently in whole sentences without blustering? Even while Iran’s drones and missiles were still being launched, Helen Clark was live on TVNZ expertly summing up the latest crisis in the Middle ...
    Gordon CampbellBy lyndon
    4 days ago

  • Govt ignored economic analysis of smokefree reversal
    Costello did not pass on analysis of the benefits of the smokefree reforms to Cabinet, emphasising instead the extra tax revenues of repealing them. Photo: Hagen Hopkins, Getty Images TL;DR: The six news items that stood out to me at 7:26 am today are:The Lead: Casey Costello never passed on ...
    The KakaBy Bernard Hickey
    4 days ago

  • True Blue.
    True loveYou're the one I'm dreaming ofYour heart fits me like a gloveAnd I'm gonna be true blueBaby, I love youI’ve written about the job cuts in our news media last week. The impact on individuals, and the loss to Aotearoa of voices covering our news from different angles.That by ...
    Nick’s KōreroBy Nick Rockel
    4 days ago

  • Who is running New Zealand’s foreign policy?
    While commentators, including former Prime Minister Helen Clark, are noting a subtle shift in New Zealand’s foreign policy, which now places more emphasis on the United States, many have missed a key element of the shift. What National said before the election is not what the government is doing now. ...
    PolitikBy Richard Harman
    4 days ago

  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #15
    A listing of 31 news and opinion articles we found interesting and shared on social media during the past week: Sun, April 7, 2024 thru Sat, April 13, 2024. Story of the week Our story of the week is about adults in the room setting terms and conditions of ...
    Skeptical Science
    5 days ago

  • Feline Friends and Fragile Fauna The Complexities of Cats in New Zealand’s Conservation Efforts

    Cats, with their independent spirit and beguiling purrs, have captured the hearts of humans for millennia. In New Zealand, felines are no exception, boasting the highest national cat ownership rate globally [definition cat nz cat foundation]. An estimated 1.134 million pet cats grace Kiwi households, compared to 683,000 dogs ...

    Gareth’s WorldBy admin
    5 days ago

  • Or is that just they want us to think?
    Nice guy, that Peter Williams. Amiable, a calm air of no-nonsense capability, a winning smile. Everything you look for in a TV presenter and newsreader.I used to see him sometimes when I went to TVNZ to be a talking head or a panellist and we would yarn. Nice guy, that ...
    More Than A FeildingBy David Slack
    5 days ago

  • Fact Brief – Did global warming stop in 1998?
    Skeptical Science is partnering with Gigafact to produce fact briefs — bite-sized fact checks of trending claims. This fact brief was written by Sue Bin Park in collaboration with members from our Skeptical Science team. You can submit claims you think need checking via the tipline. Did global warming stop in ...
    Skeptical Science
    6 days ago

  • Arguing over a moot point.
    I have been following recent debates in the corporate and social media about whether it is a good idea for NZ to join what is known as “AUKUS Pillar Two.” AUKUS is the Australian-UK-US nuclear submarine building agreement in which … Continue reading → ...
    KiwipoliticoBy Pablo
    6 days ago

  • No Longer Trusted: Ageing Boomers, Laurie & Les, Talk Politics.
    Turning Point: “What has turned me away from the mainstream news media is the very strong message that its been sending out for the last few years.” “And what message might that be?” “That the people who own it, the people who run it, and the people who provide its content, really don’t ...
    Bowalley Road
    6 days ago

  • Mortgage rates at 10% anyone?
    No – nothing about that in PM Luxon’s nine-point plan to improve the lives of New Zealanders. But beyond our shores Jamie Dimon, the long-serving head of global bank J.P. Morgan Chase, reckons that the chances of a goldilocks soft landing for the economy are “a lot lower” than the ...
    Point of OrderBy xtrdnry
    6 days ago

  • Minister releases Fast-track stakeholder list
    The Government is today releasing a list of organisations who received letters about the Fast-track applications process, says RMA Reform Minister Chris Bishop. “Recently Ministers and agencies have received a series of OIA requests for a list of organisations to whom I wrote with information on applying to have a ...
    BeehiveBy beehive.govt.nz
    23 mins ago

  • Judicial appointments announced
    Attorney-General Judith Collins today announced the appointment of Wellington Barrister David Jonathan Boldt as a Judge of the High Court, and the Honourable Justice Matthew Palmer as a Judge of the Court of Appeal. Justice Boldt graduated with an LLB from Victoria University of Wellington in 1990, and also holds ...
    BeehiveBy beehive.govt.nz
    1 hour ago

  • Education Minister heads to major teaching summit in Singapore
    Education Minister Erica Stanford will lead the New Zealand delegation at the 2024 International Summit on the Teaching Profession (ISTP) held in Singapore. The delegation includes representatives from the Post Primary Teachers’ Association (PPTA) Te Wehengarua and the New Zealand Educational Institute (NZEI) Te Riu Roa.  The summit is co-hosted ...
    BeehiveBy beehive.govt.nz
    2 hours ago

  • Value of stopbank project proven during cyclone
    A stopbank upgrade project in Tairawhiti partly funded by the Government has increased flood resilience for around 7000ha of residential and horticultural land so far, Regional Development Minister Shane Jones says. Mr Jones today attended a dawn service in Gisborne to mark the end of the first stage of the ...
    BeehiveBy beehive.govt.nz
    2 hours ago

  • Anzac commemorations, Türkiye relationship focus of visit
    Foreign Affairs Minister Winston Peters will represent the Government at Anzac Day commemorations on the Gallipoli Peninsula next week and engage with senior representatives of the Turkish government in Istanbul.    “The Gallipoli campaign is a defining event in our history. It will be a privilege to share the occasion ...
    BeehiveBy beehive.govt.nz
    2 hours ago

  • Minister to Europe for OECD meeting, Anzac Day
    Science, Innovation and Technology and Defence Minister Judith Collins will next week attend the OECD Science and Technology Ministerial conference in Paris and Anzac Day commemorations in Belgium. “Science, innovation and technology have a major role to play in rebuilding our economy and achieving better health, environmental and social outcomes ...
    BeehiveBy beehive.govt.nz
    5 hours ago

  • Comprehensive Partnership the goal for NZ and the Philippines
    Prime Minister Christopher Luxon held a bilateral meeting today with the President of the Philippines, Ferdinand Marcos Jr.  The Prime Minister was accompanied by MP Paulo Garcia, the first Filipino to be elected to a legislature outside the Philippines. During today’s meeting, Prime Minister Luxon and President Marcos Jr discussed opportunities to ...
    BeehiveBy beehive.govt.nz
    16 hours ago

  • Government commits $20m to Westport flood protection
    The Government has announced that $20 million in funding will be made available to Westport to fund much needed flood protection around the town. This measure will significantly improve the resilience of the community, says Local Government Minister Simeon Brown. “The Westport community has already been allocated almost $3 million ...
    BeehiveBy beehive.govt.nz
    22 hours ago

  • Taupō takes pole position
    The Government is proud to support the first ever Repco Supercars Championship event in Taupō as up to 70,000 motorsport fans attend the Taupō International Motorsport Park this weekend, says Economic Development Minister Melissa Lee. “Anticipation for the ITM Taupō Super400 is huge, with tickets and accommodation selling out weeks ...
    BeehiveBy beehive.govt.nz
    23 hours ago

  • Cost of living support for low-income homeowners
    Local Government Minister Simeon Brown has announced an increase to the Rates Rebate Scheme, putting money back into the pockets of low-income homeowners.  “The coalition Government is committed to bringing down the cost of living for New Zealanders. That includes targeted support for those Kiwis who are doing things tough, such ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government backing mussel spat project
    The Coalition Government is investing in a project to boost survival rates of New Zealand mussels and grow the industry, Oceans and Fisheries Minister Shane Jones has announced. “This project seeks to increase the resilience of our mussels and significantly boost the sector’s productivity,” Mr Jones says. “The project - ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Government focused on getting people into work
    Benefit figures released today underscore the importance of the Government’s plan to rebuild the economy and have 50,000 fewer people on Jobseeker Support, Social Development and Employment Minister Louise Upston says. “Benefit numbers are still significantly higher than when National was last in government, when there was about 70,000 fewer ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Clean energy key driver to reducing emissions
    The Government’s commitment to doubling New Zealand’s renewable energy capacity is backed by new data showing that clean energy has helped the country reach its lowest annual gross emissions since 1999, Climate Change Minister Simon Watts says. New Zealand’s latest Greenhouse Gas Inventory (1990-2022) published today, shows gross emissions fell ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Earthquake-prone buildings review brought forward
    The Government is bringing the earthquake-prone building review forward, with work to start immediately, and extending the deadline for remediations by four years, Building and Construction Minister Chris Penk says. “Our Government is focused on rebuilding the economy. A key part of our plan is to cut red tape that ...
    BeehiveBy beehive.govt.nz
    1 day ago

  • Thailand and NZ to agree to Strategic Partnership
    Prime Minister Christopher Luxon and his Thai counterpart, Prime Minister Srettha Thavisin, have today agreed that New Zealand and the Kingdom of Thailand will upgrade the bilateral relationship to a Strategic Partnership by 2026. “New Zealand and Thailand have a lot to offer each other. We have a strong mutual desire to build ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Government consults on extending coastal permits for ports
    RMA Reform Minister Chris Bishop and Transport Minister Simeon Brown have today announced the Coalition Government’s intention to extend port coastal permits for a further 20 years, providing port operators with certainty to continue their operations. “The introduction of the Resource Management Act in 1991 required ports to obtain coastal ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Inflation coming down, but more work to do
    Today’s announcement that inflation is down to 4 per cent is encouraging news for Kiwis, but there is more work to be done - underlining the importance of the Government’s plan to get the economy back on track, acting Finance Minister Chris Bishop says. “Inflation is now at 4 per ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • School attendance restored as a priority in health advice
    Refreshed health guidance released today will help parents and schools make informed decisions about whether their child needs to be in school, addressing one of the key issues affecting school attendance, says Associate Education Minister David Seymour. In recent years, consistently across all school terms, short-term illness or medical reasons ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Unnecessary bureaucracy cut in oceans sector
    Oceans and Fisheries Minister Shane Jones is streamlining high-level oceans management while maintaining a focus on supporting the sector’s role in the export-led recovery of the economy. “I am working to realise the untapped potential of our fishing and aquaculture sector. To achieve that we need to be smarter with ...
    BeehiveBy beehive.govt.nz
    2 days ago

  • Patterson promoting NZ’s wool sector at International Congress
    Associate Agriculture Minister Mark Patterson is speaking at the International Wool Textile Organisation Congress in Adelaide, promoting New Zealand wool, and outlining the coalition Government’s support for the revitalisation the sector.    "New Zealand’s wool exports reached $400 million in the year to 30 June 2023, and the coalition Government ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Removing red tape to help early learners thrive
    The Government is making legislative changes to make it easier for new early learning services to be established, and for existing services to operate, Associate Education Minister David Seymour says. The changes involve repealing the network approval provisions that apply when someone wants to establish a new early learning service, ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • RMA changes to cut coal mining consent red tape
    Changes to the Resource Management Act will align consenting for coal mining to other forms of mining to reduce barriers that are holding back economic development, Resources Minister Shane Jones says. “The inconsistent treatment of coal mining compared with other extractive activities is burdensome red tape that fails to acknowledge ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • McClay reaffirms strong NZ-China trade relationship
    Trade, Agriculture and Forestry Minister Todd McClay has concluded productive discussions with ministerial counterparts in Beijing today, in support of the New Zealand-China trade and economic relationship. “My meeting with Commerce Minister Wang Wentao reaffirmed the complementary nature of the bilateral trade relationship, with our Free Trade Agreement at its ...
    BeehiveBy beehive.govt.nz
    3 days ago

  • Prime Minister Luxon acknowledges legacy of Singapore Prime Minister Lee
    Prime Minister Christopher Luxon today paid tribute to Singapore’s outgoing Prime Minister Lee Hsien Loong.   Meeting in Singapore today immediately before Prime Minister Lee announced he was stepping down, Prime Minister Luxon warmly acknowledged his counterpart’s almost twenty years as leader, and the enduring legacy he has left for Singapore and South East ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • PMs Luxon and Lee deepen Singapore-NZ ties
    Prime Minister Christopher Luxon held a bilateral meeting today with Singapore Prime Minister Lee Hsien Loong. While in Singapore as part of his visit to South East Asia this week, Prime Minister Luxon also met with Singapore President Tharman Shanmugaratnam and will meet with Deputy Prime Minister Lawrence Wong.  During today’s meeting, Prime Minister Luxon ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Antarctica New Zealand Board appointments
    Foreign Minister Winston Peters has made further appointments to the Board of Antarctica New Zealand as part of a continued effort to ensure the Scott Base Redevelopment project is delivered in a cost-effective and efficient manner.  The Minister has appointed Neville Harris as a new member of the Board. Mr ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Finance Minister travels to Washington DC
    Finance Minister Nicola Willis will travel to the United States on Tuesday to attend a meeting of the Five Finance Ministers group, with counterparts from Australia, the United States, Canada, and the United Kingdom.  “I am looking forward to meeting with our Five Finance partners on how we can work ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Pet bonds a win/win for renters and landlords
    The coalition Government has today announced purrfect and pawsitive changes to the Residential Tenancies Act to give tenants with pets greater choice when looking for a rental property, says Housing Minister Chris Bishop. “Pets are important members of many Kiwi families. It’s estimated that around 64 per cent of New ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • Long Tunnel for SH1 Wellington being considered
    State Highway 1 (SH1) through Wellington City is heavily congested at peak times and while planning continues on the duplicate Mt Victoria Tunnel and Basin Reserve project, the Government has also asked NZ Transport Agency (NZTA) to consider and provide advice on a Long Tunnel option, Transport Minister Simeon Brown ...
    BeehiveBy beehive.govt.nz
    4 days ago

  • New Zealand condemns Iranian strikes
    Prime Minister Christopher Luxon and Foreign Minister Winston Peters have condemned Iran’s shocking and illegal strikes against Israel.    “These attacks are a major challenge to peace and stability in a region already under enormous pressure," Mr Luxon says.    "We are deeply concerned that miscalculation on any side could ...
    BeehiveBy beehive.govt.nz
    5 days ago

  • Huge interest in Government’s infrastructure plans
    Hundreds of people in little over a week have turned out in Northland to hear Regional Development Minister Shane Jones speak about plans for boosting the regional economy through infrastructure. About 200 people from the infrastructure and associated sectors attended an event headlined by Mr Jones in Whangarei today. Last ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Health Minister thanks outgoing Health New Zealand Chair
    Health Minister Dr Shane Reti has today thanked outgoing Health New Zealand – Te Whatu Ora Chair Dame Karen Poutasi for her service on the Board.   “Dame Karen tendered her resignation as Chair and as a member of the Board today,” says Dr Reti.  “I have asked her to ...
    BeehiveBy beehive.govt.nz
    7 days ago

  • Roads of National Significance planning underway
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