The curious case of Liz Truss

Written By: - Date published: 6:57 am, January 17th, 2023 - 34 comments
Categories: Austerity, Brexit, Financial markets, uk politics - Tags: , , , , ,

Originally published on Nick Kelly’s blog The premiership of Liz Truss will be remembered for many years to come. She will be remembered as being the shortest-serving former UK prime minister (for now), resigning after seven weeks. It will be remembered that only two days after going to Balmoral to meet the monarch, Queen Elizabeth II passed away having served 70 years on the throne, making Truss her 15th and final PM. People will also remember the Truss premiership for plunging already bad Conservative Party polling numbers down to record lows, giving the opposition Labour Party an unprecedented 30% lead. But the main thing her seven weeks as Prime Minister will be remembered for – destroying the longstanding myth that the Conservative Party are good at managing the economy.

As outlined in a post earlier this year in a global economic crisis, governments, in the short term at least, are limited in what they can do to remedy the situation. However, the one thing governments can certainly do is not make the situation worse. In this Liz Truss and former Chancellor Kwasi Kwarteng failed spectacularly.

The now infamous ‘mini budget’ or “Growth Plan” of 23 September 2022 caused the pound to hit an all-time low against the US dollar, and force the Bank of England to intervene to prevent chaotic drops in gilts prices from stinging pension funds and threatening financial stability. How on did the UK’s natural party of government, the party of sound money and fiscal responsibility manage to get it all so badly wrong? And so quickly?

Since 2008, as pointed out in my last blog post, right-of-centre governments have stepped back from full Thatcherite free market policies due to the fact that these policies directly resulted in the crisis of the last decade. Whilst free market and trickle-down economics may no longer be electorally viable, there remain many true believers in the small government crusade.

The decline and fall of Boris Johnson as PM was entirely of his own making and had been on the cards for some time. During the period, the disquiet within the Conservative Party was not so much over “Party-Gate” but the increase in taxes, namely National Insurance, to keep their manifesto commitment to fund social care, a policy area where previous governments have failed to grasp the nettle. Tory Party members were furious that a Conservative Government had raised taxes, and former Chancellor Rishi Sunak was in their eyes to blame. Enter Liz Truss.

Truss, on becoming Foreign Secretary in early 2022, began doing these strange photos where she was imitating former Tory Prime Minister Margaret Thatcher. This Thatcher cosplay was matched by sound-bite rhetoric about free markets and individualism. This really played to the home crowd with supporters in the Tory Party claiming “in Liz we Truss.”

Warnings from former Chancellor Sunak that the programme announced by Liz Truss when running for leader would make the economic situation worse were ignored by the party membership. In Liz they Trussed, in early September she became Conservative Party leader and Prime Minister.

A decade before coming to power, a group of right-leaning Tory MPs authored a book titled Britannia Unchained, a treatise, arguing that Britain should adopt a different and radical approach to business and economics or risk “an inevitable slide into mediocrity.” These MPs belonged to the Conservative Party ‘Free Enterprise’ group and included Liz Truss and the person a decade later she was to appoint as Chancellor, Kwasi Kwarteng.

In a later attempt to shift the blame to former Prime Minister Liz Truss for what happened, claiming he warned her the government were moving too fast. Kwarteng has not yet apologised for his mini budget on 23 September or the catastrophic fallout. In fact, his frustration seems more with the fact that Truss ended up sacking him, not long before being forced to resign herself. The truth is, the throwing caution to the wind approach of slashing taxes, removing restrictions on banker bonuses, and slashing other regulations such as IR35 were all consistent with what he and Truss had argued in Britannia Unchained a decade earlier. And these ideas found favour with the Conservative Party membership – with the idealised view of Thatcher’s vision of small government, deregulation and low taxation. For the general public, this was not so much ‘Britannia Unchained’ as ‘Libertarians Unhinged.’

Where this mini-budget really hit the rocks, especially with the financial markets, was the unfunded tax cuts and spending increases. The Tories, having implemented austerity policies during their first term in office with the Lib Dems, found out the hard way that underfunding the Police or the NHS was simply not an option. The 2017 election where they lost their overall majority, and Corbyn’s Labour had an unexpected surge in support largely due to increased turnout by young voters, was largely due to an anti-austerity backlash. In Kwarteng’s mini-budget, the solution was that the government borrow to pay for tax cuts and spending increases. The former Chancellor argued that cutting taxes and red tape this would stimulate economic growth meaning the government would soon be able to repay the debt.

Many were surprised to see financial markets react to a right-wing Tory budget in this way. Threats of capital withdrawal and other measures are not uncommon when centre-left governments try to implement their agenda. Yet here we had a right-wing budget and the market responded badly. One issue was that Truss and Kwarteng completely ignored the Office for Budget Responsibility before preparing the mini-budget. This office was set up by former Conservative Chancellor George Osborne, in response to his claims that Labour had acted financially irresponsibly when in power. This office was designed to be a check and balance for the left, yet it was the right who fell foul of it. One of Britain’s key selling points is that is a rules-based economy. By not consulting the OBR before the mini-budget, Truss and Kwarteng damaged Britain’s brand.

Cutting taxes at a time of high inflation is not a terribly smart move as it will drive up inflation further. Borrowing money to cut taxes and increase spending is what the Government in Greece did prior to the 2008 financial crash, with devastating consequences. Add both of these to a world economy struggling in the wake of the pandemic and the Russian invasion of Ukraine, it is no surprise that the markets reacted as they did.

Within days, Truss was forced to sack Kwarteng and announce a U-turn on the mini-budget, to much tormenting that “the lady is for turning” with reference to Margaret Thatcher’s famous quote. Within 44 days of becoming Prime Minister, Truss announced her resignation, having days earlier replaced her friend Kwazi Kwarteng with Jeremy Hunt as Chancellor and almost all measures in the mini-budget had to be reversed.

It was would easy to blame Truss and Kwarteng for this specular failure. Many have cited her shocking performances in the media as why ultimately she resigned and question how someone got to the highest level of public office when so clearly unable to perform. Leadership qualities play a significant role, and in modern politics media presentation is critical. But this was not a problem of style and presentation alone, as abysmal as this was under the Truss premiership.

The initial reaction to the Mini Budget in September was very positive from many in the Conservative Party and their cheerleaders in the tabloid media.

For Tory Party members and Daily Mail readers, this was the budget they had been waiting for. Far from being a surprise, the mini-budget was implementing not just the promises of Truss’s leadership campaign, but the wishes of many rank-and-file Conservatives. After enduring Sunak’s National Insurance increase the free market wing of the party finally had their way, at last, a true Tory budget. Never mind Britannia Unchained, this was Conservative Party unleashed.

The ‘get Brexit done/anti-Jeremy Corbyn’ coalition that won the Conservatives the 2019 election now finds itself in tatters. Not only were so-called red wall voters from the North East of England put off by the return of trickle-down economics, but polls show that large swaths of traditionally Conservative voting south of England were also in despair. Within the Conservative Party, those who still subscribed to Edmund Burke’s view that no “generation should be arrogant enough as to only think of themselves” and that borrowing for tax cuts would harm future generations, found themselves in the minority. In fact, the enduring influence of one-nation conservatism made popular by Benjamin Disraeli, of pragmatism and paternalism was replaced with an unwavering belief in small government and the market.

That Conservative MPs managed to avoid another membership ballot and Rishi Sunak replacing Liz Trus is the topic of the next blog post. Needless to say Conservative MPs, many from Constituencies once considered save tory, are now terrified by recent polls. Allowing the party membership a say risked a further dose of trickle-down right-wing economics, making the Tories unelectable for a long time. It was the party members who supported Truss, while in the first round, only 50 backed Truss for leader, though other candidates who had MP backing early on also espoused not dissimilar economic views.

Some who supported Truss may now have reflected on what happened and perhaps realise that these policies not only do not work, but electorally they are poison. But many on the right will blame it on Truss, her leadership style and the speed with which she tried to implement the reforms. In many ways, the fact that the mini-budget changes were done quickly and communicated poorly was a good thing, as it meant these policies were reversed quickly. A more media-savvy and gradual implementation would have done more harm in the long term. It is no accident that since 2008, free market trickle-down economics has been out of fashion. The Truss premiership has been a timely reminder that these policies do not work and should not be tried again.

34 comments on “The curious case of Liz Truss ”

  1. Tony Veitch 1

    there remain many true believers in the small government crusade.

    Christopher Luxon and David Seymour, to name two local examples.

    Plus all exploiters of other (bottom-feeders) people both here and elsewhere.

    Small government means few regulations and lax enforcement – an exploiters wet dream.

    • Bearded Git 1.1

      With the Granny Herald doing a passable imitation of the Daily Mail.

      • tc 1.1.1

        Stuff must be feeling left out but with Damien grant, brook Sabin, Pagani, Dunne, prebble etc I'm sure they'll be competitive in this election year of spin.

        • Mike the Lefty 1.1.1.1

          While the election campaign is running Stuff will probably be running critically important stories about which politicians own poodles, and how difficult it is to look after your poodle when you are a busy politician.

    • Gosman 1.2

      Liz Truss didn't support small government. She was going to impose a price cap on energy payments that would have cost 150 billion pounds. She promised NOT to cut government spending.

      https://www.cnbc.com/2022/10/12/uk-pm-truss-says-she-will-not-cut-public-spending-to-fund-tax-cuts.html

    • tinderdry6 1.3

      I am deeply suspicious of 'big government'. It seems to me the larger a share of GDP is consumed by the public sector, the less efficient it becomes. And there are a number of studies that support that view.

      "Small government means few regulations and lax enforcement – an exploiters wet dream."

      Do you have any evidence for this?

      • Tony Veitch 1.3.1

        Just off the top of my head – leaky house debacle of the 1990s (Nat government).

        Pike River mining disaster, courtesy of Nat governments.

        RSA workers exploited by unscrupulous horticulturalists.

        I'm sure a 5 minute Google search will confirm all of the above, and others.

        • tinderdry6 1.3.1.1

          There are a number of problems with your response.

          Leaky home crisis:

          1. The leaky homes crisis incorporated houses built before the 1991 Building Act, some as early as 1988. The causes of these are well documented here, and happened prior to the 1991 Act,

          2. The 1991 Act introduced a system of self regulation that relied heavily on Council issued and monitored building consents. The leaky homes crisis was a failure of government implementation as much as regulation.

          Pike River

          The regulations governing the operation of Pike River date to 1992, but the drift wasn't constructed until 2007. A closer look at the disaster shows just how culpable government departments were, along with poor company management and an overly compliant union.

          The Pike River mine permit was approved by the Ministry of Economic Development in 1997.

          Some quotes:

          "MED approved the issue of Pike’s mining permit in 1997. Its focus was the economic benefits to New Zealand. MED did not fully apply the criteria set out in its coal policy programme, which included requirements to check the experience of the applicant and its proposed mining methods, and to ensure that these represented good mining practice. In terms of the coal programme, health and safety, which is intrinsic to good mining practice, was not MED’s concern. MED did not consult DOL so no one looked at the health and safety implications of the proposed mine."

          And:

          "Because Pike was assumed to be a ‘best practice’ and ‘compliant’ employer the inspectors adopted a low-level compliance approach. This proved ineffective, as was most evident regarding the need to provide two emergency exits from the mine. In mid-2009 the main ventilation shaft was designated the second means of egress out of the mine. To use it involved a 110m ladder climb that was physically exhausting in normal conditions, but probably impossible in an emergency. In April 2010 an inspector told the mine manager that the shaft, although technically compliant, was not a suitable emergency escapeway. In August DOL advised Pike by letter that a new egress was required ‘as soon as possible’.[8] In November 2010 Pike said a new egress would be established by mid-2011. DOL considered this unsatisfactory, but took no further action before the explosion."

          This is a failure of government oversight. Not exactly inspiring examples in favour of bigger government.

        • Thinker 1.3.1.2

          How quickly Tinderdry forgets the mobilisation of the public sector from the first covid crisis.

          The private sector would be just finalising their alliances and submitting their RFPs about now…

          • tinderdry6 1.3.1.2.1

            Ah but I'm not arguing against public services, per se. In fact, I am a supporter of a mixed economy with government intervention, particularly in long term planning and in regulating the excesses of the market. However, my argument, supported by studies I referred to, is simply that "the larger a share of GDP is consumed by the public sector, the less efficient it becomes."

      • Drowsy M. Kram 1.3.2

        "Small government means few regulations and lax enforcement – an exploiters wet dream."

        Do you have any evidence for this?

        Just an opinion (we all have 'em): You'd have to be a fool not to 'follow the money.'

        Small government costs

        The SEC [Securities and Exchange Commission] during the Bush II administration operated on a bare bones budget and was staffed by incompetent bureaucrats and political hacks. As a result, Wall Street collapsed and the stock market crashed because of weak regulations and lax enforcement of rules.

        Does a $700 billion bailout of Wall Street by President Bush ring a bell? Of course, this was followed by an $800 billion stimulus by President Obama that saved the economy from falling into a deep depression. Both actions increased the national debt considerably.

        • tinderdry6 1.3.2.1

          "…and was staffed by incompetent bureaucrats and political hacks."

          There's your problem. Not small government. Incompetent bureaucrats and political hacks inhabit governments of all sizes. Unfortunately.

          • Drowsy M. Kram 1.3.2.1.1

            There's your problem.

            There's our problem – that and selective quoting wink

            The SEC [Securities and Exchange Commission] during the Bush II administration operated on a bare bones budget and was staffed by incompetent bureaucrats and political hacks.

            We see what we wanr to see – what serves our interests. Follow the money.

            https://en.wikipedia.org/wiki/OpenSecrets

            • tinderdry6 1.3.2.1.1.1

              So were the subsequent problems caused by the bare bones budget or the incompetent bureaucrats and political hacks?

              • Drowsy M. Kram

                Would be a bit of both, don't you think – that small government "bare bones budget" could have contributed to the staffing issues, imho.

                Might have been other forces at work to ensure the SEC was staffed by “incompetent bureaucrats and political hacks” – it was the Bush II presidency.

                https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission#Commission_members

                • tinderdry6

                  "that small government "bare bones budget" could have contributed to the staffing issues, imho."

                  Perhaps the expression 'bare bones' simply means lean and efficient. Perhaps it means considering a lesson we learn in the private sector that by employing the best people, you actually often require less people.

                  • Drowsy M. Kram

                    Perhaps the expression 'bare bones' simply means lean and efficient.

                    Another lesson we might learn is that when an opinion piece is titled "Small government costs", the expression "bare bones budget" simply doesn’t mean what you want it to mean – context, my dear boy, context.

                    This is an impressive crowd. The haves and the have mores. Some people call you the elite. I call you my base. – Bush II (in waiting)

                    • Incognito

                      We all know that only private schools, for example, hire only the best teachers because they can best teach bigger and more classes than the mediocre ones who work at public schools teaching boring mediocre kids of mediocre parents with mediocre jobs – often in the public sector, of course – living in mediocre houses in average suburbs. Only the best are good enough to rise to the top of success, which is the lesson they teach & learn so well at private schools and in the private sector, if you are good enough to get a foot in the door, that is – having contacts aka relationships is just a lucky coincidence. In fact, this absurd yet addictively compelling (self-)belief and that you are someone special, with all the self-righteous entitlement associated with it, is almost a requirement for a successful career in the private sector. \sarc

    • Thinker 1.4

      Small government ought to come with fewer MPs. But, you never see National or ACT pushing for that.

      • tinderdry6 1.4.1

        Totally agree. In fact fewer MP's would be a good idea even if we didn't agree on the size of government overall!

      • Gosman 1.4.2

        You are mistaking Parliament for Government. They are too different things. You can have smaller Government with either a smaller or larger Parliament but on balance Parliamentary oversight on government is a good thing and therefore you want sufficient MP's to do that.

  2. Gosman 2

    Again you misunderstand the cause of the failure of Liz Truss's policies. The issue was not the cutting of taxes or regulations. It was that these were also accompanied by increased government spending. The Market's rejected such a fiscally irresponsible approach and the UK government suddenly had to pay higher rates on it's borrowing.

    She could either have raised taxes to fund her spending committments OR cut spending to afford to give a tax cut but she couldn't do both. She tried to and paid the price.

    • bwaghorn 2.1

      So the person that he right-wing of the UK thought was their best and brightest, was economically illiterate?

      • Gosman 2.1.1

        This is a good article from the Right leaning Spectator magazine about here policies written just before she resigned.

        "This is all a fatal combination of miscalculation and hubris. Truss and her Chancellor Kwasi Kwarteng clearly thought the markets would speak their language and fund their tax cuts. They thought their confrontational attitude towards the UK’s financial institutions would go down a treat. They were wrong on both counts – but these were bad assumptions. Having spent my twenties working tirelessly to promote the nuances of free-enterprise, growth-maximising policies, I am horrified and infuriated to see the words ‘Growth Plan’ plastered across a economic plan that paid less lip service to fiscal discipline than a Gordon Brown Budget."

        https://www.spectator.co.uk/article/truss-is-hurting-the-free-market-cause/

    • Nic the NZer 2.2

      Lol. How much did guilt yields rise? Who actually pulled the plug on the Truss govt?

      • Gosman 2.2.1

        The markets killed the plug on her time as Prime Minister.

        "They say power corrupts. I think perhaps it gives you amnesia, because there was a time, not too long ago, when Truss was well versed in free-market policy and seemed to understand economic reality – that the markets don’t respond like an audience at Tory conference. Markets need – we all need – to know that there is a plan. For her to blame the caustic market reaction to her borrow-and-spend mini-Budget on left-wing whingeing is simply to be in denial."

        https://www.spectator.co.uk/article/truss-is-hurting-the-free-market-cause/

        • Nic the NZer 2.2.1.1

          Such violence to the kings english. I'm sure the UK population will be assured that the markets can get a new PM when ever they choose.

    • adam 2.3

      Good to see you arguing for the same shit show to happen here Gossy. Like the spin, impressive.

      At least you’re consistent.

      ACT a nightmare in the making – our economy is going to fall over if these muppets get their ideological shitfuckery into government.

      • Gosman 2.3.1

        We've already established that what did it in for Liz Truss was the fact she was fiscally irresponsible and that led to the Markets to reject her via ditching government debt and the Pound. ACT is not fiscally irresponsible because it is going to cut wasteful government spending alongside tax cuts.

        • Incognito 2.3.1.1

          It is very irresponsible to have a repeal razor gang starting a bonfire of regulations and cuts to the public sector that is there for (almost) everyone whilst proclaiming that it is pretty much guaranteed aka promised that the market will come to the rescue and do a better job. For the mythical market saviours and Knights of the Round Business Table to ride into town they will remove as many obstacles & objections and make the ride as easy & smooth (and pretty legal) as they can to pave the way with the heads of the great unwashed as cobblestones. The ones who pay no or very little net tax and have no or very little net wealth (e.g., assets) won’t be any better off and most likely worse off. Who are they again??

          • Gosman 2.3.1.1.1

            Why would cutting the Ministries of Women and Culture cause any issues?

            • Incognito 2.3.1.1.1.1

              Are you giving us the heads up on what ACT will be cutting when given the chance? It is always good to hear this from an insider and a reliable source such as you.

              What “issues” are you referring to? Life or death issues? Economic collapse issues? What criteria do you use to determine if it is an "issue"?

              I have no idea how you’d cut Culture out of the Ministry of Arts, Culture and Heritage and can only assume ACT and you will cut the whole lot because you deem it ‘wasteful’. Does this mean we won’t see David again on DWTS?

              As to cutting the Ministry of Women, do you think the job is done or that it is done close enough?

              For example:

              In 2022, the national gender pay gap – the gap between men’s and women’s median hourly pay – was 9.2 percent.

              https://women.govt.nz/gpg

              Are you a woman, Gosman, or a sealion?

              Would cutting your commenting privileges here cause any issues for you?

              • Gosman

                Having a dedicated ministry does not guarantee nor preclude something happening if it did not exist.

  3. tWiggle 3

    This Led By Donkeys clip is a good backgrounder on the input of economic think-tanks to the disastrous economic strategy of Liz Truss's government.

    https://youtu.be/IRDLIOME47c

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    TL;DR: As of 6:00 am on Thursday, July 25, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day were:The Abuse in Care Royal Commission of Inquiry published its final report yesterday.PM Christopher Luxon and The Minister responsible for ...
    The KakaBy Bernard Hickey
    2 days ago
  • A tougher line on “proactive release”?

    The Official Information Act has always been a battle between requesters seeking information, and governments seeking to control it. Information is power, so Ministers and government agencies want to manage what is released and when, for their own convenience, and legality and democracy be damned. Their most recent tactic for ...
    No Right TurnBy Idiot/Savant
    3 days ago
  • 'Let's build a motorway costing $100 million per km, before emissions costs'

    TL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy today are:Transport and Energy Minister Simeon Brown is accelerating plans to spend at least $10 billion through Public Private Partnerships (PPPs) to extend State Highway One as a four-lane ‘Expressway’ from Warkworth to Whangarei ...
    The KakaBy Bernard Hickey
    3 days ago
  • Lester's Prescription – Positive Bleeding.

    I live my life (woo-ooh-ooh)With no control in my destinyYea-yeah, yea-yeah (woo-ooh-ooh)I can bleed when I want to bleedSo come on, come on (woo-ooh-ooh)You can bleed when you want to bleedYea-yeah, come on (woo-ooh-ooh)Everybody bleed when they want to bleedCome on and bleedGovernments face tough challenges. Selling unpopular decisions to ...
    Nick’s KōreroBy Nick Rockel
    3 days ago
  • Casey Costello gaslights Labour in the House

    Please note:To skip directly to the- parliamentary footage in the video, scroll to 1:21 To skip to audio please click on the headphone icon on the left hand side of the screenThis video / audio section is under development. ...
    Mountain TuiBy Mountain Tui
    3 days ago
  • Why is the Texas grid in such bad shape?

    This is a re-post from the Climate Brink by Andrew Dessler Headline from 2021 The Texas grid, run by ERCOT, has had a rough few years. In 2021, winter storm Uri blacked out much of the state for several days. About a week ago, Hurricane Beryl knocked out ...
    3 days ago
  • Gordon Campbell on a textbook case of spending waste by the Luxon government

    Given the crackdown on wasteful government spending, it behooves me to point to a high profile example of spending by the Luxon government that looks like a big, fat waste of time and money. I’m talking about the deployment of NZDF personnel to support the US-led coalition in the Red ...
    WerewolfBy lyndon
    3 days ago
  • The Kākā’s Pick 'n' Mix for Wednesday, July 24

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 7:40 am on Wednesday, July 24 are:Deep Dive: Chipping away at the housing crisis, including my comments RNZ/Newsroom’s The DetailNews: Government softens on asset sales, ...
    The KakaBy Bernard Hickey
    3 days ago
  • LXR Takaanini

    As I reported about the city centre, Auckland’s rail network is also going through a difficult and disruptive period which is rapidly approaching a culmination, this will result in a significant upgrade to the whole network. Hallelujah. Also like the city centre this is an upgrade predicated on the City ...
    Greater AucklandBy Patrick Reynolds
    3 days ago
  • Four kilograms of pain

    Today, a 4 kilogram report will be delivered to Parliament. We know this is what the report of the Royal Commission of Inquiry into Abuse in State and Faith-based Care weighs, because our Prime Minister told us so.Some reporter had blindsided him by asking a question about something done by ...
    More Than A FeildingBy David Slack
    3 days ago
  • The Kākā’s Journal of Record for Wednesday, July 24

    TL;DR: As of 7:00 am on Wednesday, July 24, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:Beehive: Transport Minister Simeon Brown announced plans to use PPPs to fund, build and run a four-lane expressway between Auckland ...
    The KakaBy Bernard Hickey
    3 days ago
  • Luxon gets caught out

    NewstalkZB host Mike Hosking, who can usually be relied on to give Prime Minister Christopher Luxon an easy run, did not do so yesterday when he interviewed him about the HealthNZ deficit. Luxon is trying to use a deficit reported last year by HealthNZ as yet another example of the ...
    PolitikBy Richard Harman
    3 days ago
  • A worrying sign

    Back in January a StatsNZ employee gave a speech at Rātana on behalf of tangata whenua in which he insulted and criticised the government. The speech clearly violated the principle of a neutral public service, and StatsNZ started an investigation. Part of that was getting an external consultant to examine ...
    No Right TurnBy Idiot/Savant
    4 days ago
  • Are we fine with 47.9% home-ownership by 2048?

    Renting for life: Shared ownership initiatives are unlikely to slow the slide in home ownership by much. Photo: Lynn Grieveson / The KākāTL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy today are:A Deloitte report for Westpac has projected Aotearoa’s home-ownership rate will ...
    The KakaBy Bernard Hickey
    4 days ago
  • Let's Win This

    You're broken down and tiredOf living life on a merry go roundAnd you can't find the fighterBut I see it in you so we gonna walk it outAnd move mountainsWe gonna walk it outAnd move mountainsAnd I'll rise upI'll rise like the dayI'll rise upI'll rise unafraidI'll rise upAnd I'll ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Waimahara: The Singing Spirit of Water

    There’s been a change in Myers Park. Down the steps from St. Kevin’s Arcade, past the grassy slopes, the children’s playground, the benches and that goat statue, there has been a transformation. The underpass for Mayoral Drive has gone from a barren, grey, concrete tunnel, to a place that thrums ...
    Greater AucklandBy Connor Sharp
    4 days ago
  • A major milestone: Global climate pollution may have just peaked

    This is a re-post from Yale Climate Connections Global society may have finally slammed on the brakes for climate-warming pollution released by human fossil fuel combustion. According to the Carbon Monitor Project, the total global climate pollution released between February and May 2024 declined slightly from the amount released during the same ...
    4 days ago
  • The Kākā’s Pick 'n' Mix for Tuesday, July 23

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 7:00 am on Tuesday, July 23 are:Deep Dive: Penlink: where tolling rhetoric meets reality BusinessDesk-$$$’s Oliver LewisScoop: Te Pūkenga plans for regional polytechs leak out ...
    The KakaBy Bernard Hickey
    4 days ago
  • The Kākā’s Journal of Record for Tuesday, July 23

    TL;DR: As of 6:00 am on Tuesday, July 23, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:Health: Shane Reti announced the Board of Te Whatu Ora- Health New Zealand was being replaced with Commissioner Lester Levy ...
    The KakaBy Bernard Hickey
    4 days ago
  • HealthNZ and Luxon at cross purposes over budget blowout

    Health NZ warned the Government at the end of March that it was running over Budget. But the reasons it gave were very different to those offered by the Prime Minister yesterday. Prime Minister Christopher Luxon blamed the “botched merger” of the 20 District Health Boards (DHBs) to create Health ...
    PolitikBy Richard Harman
    4 days ago
  • 2500-3000 more healthcare staff expected to be fired, as Shane Reti blames Labour for a budget defic...

    Long ReadKey Summary: Although National increased the health budget by $1.4 billion in May, they used an old funding model to project health system costs, and never bothered to update their pre-election numbers. They were told during the Health Select Committees earlier in the year their budget amount was deficient, ...
    Mountain TuiBy Mountain Tui
    4 days ago
  • Might Kamala Harris be about to get a 'stardust' moment like Jacinda Ardern?

    As a momentous, historic weekend in US politics unfolded, analysts and commentators grasped for precedents and comparisons to help explain the significance and power of the choice Joe Biden had made. The 46th president had swept the Democratic party’s primaries but just over 100 days from the election had chosen ...
    PunditBy Tim Watkin
    5 days ago
  • Solutions Interview: Steven Hail on MMT & ecological economics

    TL;DR: I’m casting around for new ideas and ways of thinking about Aotearoa’s political economy to find a few solutions to our cascading and self-reinforcing housing, poverty and climate crises.Associate Professor runs an online masters degree in the economics of sustainability at Torrens University in Australia and is organising ...
    The KakaBy Steven Hail
    5 days ago
  • Reported back

    The Finance and Expenditure Committee has reported back on National's Local Government (Water Services Preliminary Arrangements) Bill. The bill sets up water for privatisation, and was introduced under urgency, then rammed through select committee with no time even for local councils to make a proper submission. Naturally, national's select committee ...
    No Right TurnBy Idiot/Savant
    5 days ago
  • Vandrad the Viking, Christopher Coombes, and Literary Archaeology

    Some years ago, I bought a book at Dunedin’s Regent Booksale for $1.50. As one does. Vandrad the Viking (1898), by J. Storer Clouston, is an obscure book these days – I cannot find a proper online review – but soon it was sitting on my shelf, gathering dust alongside ...
    5 days ago
  • Gordon Campbell On The Biden Withdrawal

    History is not on the side of the centre-left, when Democratic presidents fall behind in the polls and choose not to run for re-election. On both previous occasions in the past 75 years (Harry Truman in 1952, Lyndon Johnson in 1968) the Democrats proceeded to then lose the White House ...
    WerewolfBy lyndon
    5 days ago
  • Joe Biden's withdrawal puts the spotlight back on Kamala and the USA's complicated relatio...

    This is a free articleCoverageThis morning, US President Joe Biden announced his withdrawal from the Presidential race. And that is genuinely newsworthy. Thanks for your service, President Biden, and all the best to you and yours.However, the media in New Zealand, particularly the 1News nightly bulletin, has been breathlessly covering ...
    Mountain TuiBy Mountain Tui
    5 days ago
  • Why we have to challenge our national fiscal assumptions

    A homeless person’s camp beside a blocked-off slipped damage walkway in Freeman’s Bay: we are chasing our tail on our worsening and inter-related housing, poverty and climate crises. Photo: Photo: Lynn Grieveson / The KākāTL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy ...
    The KakaBy Bernard Hickey
    5 days ago
  • Existential Crisis and Damaged Brains

    What has happened to it all?Crazy, some'd sayWhere is the life that I recognise?(Gone away)But I won't cry for yesterdayThere's an ordinary worldSomehow I have to findAnd as I try to make my wayTo the ordinary worldYesterday morning began as many others - what to write about today? I began ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • A speed limit is not a target, and yet…

    This is a guest post from longtime supporter Mr Plod, whose previous contributions include a proposal that Hamilton become New Zealand’s capital city, and that we should switch which side of the road we drive on. A recent Newsroom article, “Back to school for the Govt’s new speed limit policy“, ...
    Greater AucklandBy Guest Post
    5 days ago
  • The Kākā’s Pick 'n' Mix for Monday, July 22

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 7:00 am on Monday, July 22 are:Today’s Must Read: Father and son live in a tent, and have done for four years, in a million ...
    The KakaBy Bernard Hickey
    5 days ago
  • The Kākā’s Journal of Record for Monday, July 22

    TL;DR: As of 7:00 am on Monday, July 22, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:US President Joe Biden announced via X this morning he would not stand for a second term.Multinational professional services firm ...
    The KakaBy Bernard Hickey
    5 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #29

    A listing of 32 news and opinion articles we found interesting and shared on social media during the past week: Sun, July 14, 2024 thru Sat, July 20, 2024. Story of the week As reflected by preponderance of coverage, our Story of the Week is Project 2025. Until now traveling ...
    6 days ago
  • I'd like to share what I did this weekend

    This weekend, a friend pointed out someone who said they’d like to read my posts, but didn’t want to pay. And my first reaction was sympathy.I’ve already told folks that if they can’t comfortably subscribe, and would like to read, I’d be happy to offer free subscriptions. I don’t want ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • For the children – Why mere sentiment can be a misleading force in our lives, and lead to unex...

    National: The Party of ‘Law and Order’ IntroductionThis weekend, the Government formally kicked off one of their flagship policy programs: a military style boot camp that New Zealand has experimented with over the past 50 years. Cartoon credit: Guy BodyIt’s very popular with the National Party’s Law and Order image, ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • A friend in uncertain times

    Day one of the solo leg of my long journey home begins with my favourite sound: footfalls in an empty street. 5.00 am and it’s already light and already too warm, almost.If I can make the train that leaves Budapest later this hour I could be in Belgrade by nightfall; ...
    More Than A FeildingBy David Slack
    6 days ago
  • The Chaotic World of Male Diet Influencers

    Hi,We’ll get to the horrific world of male diet influencers (AKA Beefy Boys) shortly, but first you will be glad to know that since I sent out the Webworm explaining why the assassination attempt on Donald Trump was not a false flag operation, I’ve heard from a load of people ...
    David FarrierBy David Farrier
    6 days ago
  • It's Starting To Look A Lot Like… Y2K

    Do you remember Y2K, the threat that hung over humanity in the closing days of the twentieth century? Horror scenarios of planes falling from the sky, electronic payments failing and ATMs refusing to dispense cash. As for your VCR following instructions and recording your favourite show - forget about it.All ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Bernard’s Saturday Soliloquy for the week to July 20

    Climate Change Minister Simon Watts being questioned by The Kākā’s Bernard Hickey.TL;DR: My top six things to note around housing, climate and poverty in Aotearoa’s political economy in the week to July 20 were:1. A strategy that fails Zero Carbon Act & Paris targetsThe National-ACT-NZ First Coalition Government finally unveiled ...
    The KakaBy Bernard Hickey
    1 week ago
  • Pharmac Director, Climate Change Commissioner, Health NZ Directors – The latest to quit this m...

    Summary:As New Zealand loses at least 12 leaders in the public service space of health, climate, and pharmaceuticals, this month alone, directly in response to the Government’s policies and budget choices, what lies ahead may be darker than it appears. Tui examines some of those departures and draws a long ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Flooding Housing Policy

    The Minister of Housing’s ambition is to reduce markedly the ratio of house prices to household incomes. If his strategy works it would transform the housing market, dramatically changing the prospects of housing as an investment.Leaving aside the Minister’s metaphor of ‘flooding the market’ I do not see how the ...
    PunditBy Brian Easton
    1 week ago
  • A Voyage Among the Vandals: Accepted (Again!)

    As previously noted, my historical fantasy piece, set in the fifth-century Mediterranean, was accepted for a Pirate Horror anthology, only for the anthology to later fall through. But in a good bit of news, it turned out that the story could indeed be re-marketed as sword and sorcery. As of ...
    1 week ago
  • The Kākā's Chorus for Friday, July 19

    An employee of tobacco company Philip Morris International demonstrates a heated tobacco device. Photo: Getty ImagesTL;DR: The top six things I’ve noted around housing, climate and poverty in Aotearoa’s political economy on Friday, July 19 are:At a time when the Coalition Government is cutting spending on health, infrastructure, education, housing ...
    The KakaBy Bernard Hickey
    1 week ago
  • The Kākā’s Pick 'n' Mix for Friday, July 19

    TL;DR: My pick of the top six links elsewhere around housing, climate and poverty in Aotearoa’s political economy in the last day or so to 8:30 am on Friday, July 19 are:Scoop: NZ First Minister Casey Costello orders 50% cut to excise tax on heated tobacco products. The minister has ...
    The KakaBy Bernard Hickey
    1 week ago
  • Weekly Roundup 19-July-2024

    Kia ora, it’s time for another Friday roundup, in which we pull together some of the links and stories that caught our eye this week. Feel free to add more in the comments! Our header image this week shows a foggy day in Auckland town, captured by Patrick Reynolds. ...
    Greater AucklandBy Greater Auckland
    1 week ago
  • Weekly Climate Wrap: A market-led plan for failure

    TL;DR : Here’s the top six items climate news for Aotearoa this week, as selected by Bernard Hickey and The Kākā’s climate correspondent Cathrine Dyer. A discussion recorded yesterday is in the video above and the audio of that sent onto the podcast feed.The Government released its draft Emissions Reduction ...
    The KakaBy Bernard Hickey
    1 week ago
  • Tobacco First

    Save some money, get rich and old, bring it back to Tobacco Road.Bring that dynamite and a crane, blow it up, start all over again.Roll up. Roll up. Or tailor made, if you prefer...Whether you’re selling ciggies, digging for gold, catching dolphins in your nets, or encouraging folks to flutter ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • Trump’s Adopted Son.

    Waiting In The Wings: For truly, if Trump is America’s un-assassinated Caesar, then J.D. Vance is America’s Octavian, the Republic’s youthful undertaker – and its first Emperor.DONALD TRUMP’S SELECTION of James D. Vance as his running-mate bodes ill for the American republic. A fervent supporter of Viktor Orban, the “illiberal” prime ...
    1 week ago
  • The Kākā’s Journal of Record for Friday, July 19

    TL;DR: As of 6:00 am on Friday, July 19, the top six announcements, speeches, reports and research around housing, climate and poverty in Aotearoa’s political economy in the last day are:The PSA announced the Employment Relations Authority (ERA) had ruled in the PSA’s favour in its case against the Ministry ...
    The KakaBy Bernard Hickey
    1 week ago
  • The Hoon around the week to July 19

    TL;DR: The podcast above of the weekly ‘hoon’ webinar for paying subscribers last night features co-hosts and talking with:The Kākā’s climate correspondent talking about the National-ACT-NZ First Government’s release of its first Emissions Reduction Plan;University of Otago Foreign Relations Professor and special guest Dr Karin von ...
    The KakaBy Bernard Hickey
    1 week ago
  • Skeptical Science New Research for Week #29 2024

    Open access notables Improving global temperature datasets to better account for non-uniform warming, Calvert, Quarterly Journal of the Royal Meteorological Society: To better account for spatial non-uniform trends in warming, a new GITD [global instrumental temperature dataset] was created that used maximum likelihood estimation (MLE) to combine the land surface ...
    1 week ago

  • Joint statement from the Prime Ministers of Canada, Australia and New Zealand

    Australia, Canada and New Zealand today issued the following statement on the need for an urgent ceasefire in Gaza and the risk of expanded conflict between Hizballah and Israel. The situation in Gaza is catastrophic. The human suffering is unacceptable. It cannot continue.  We remain unequivocal in our condemnation of ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • AG reminds institutions of legal obligations

    Attorney-General Judith Collins today reminded all State and faith-based institutions of their legal obligation to preserve records relevant to the safety and wellbeing of those in its care. “The Abuse in Care Inquiry’s report has found cases where records of the most vulnerable people in State and faith‑based institutions were ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • More young people learning about digital safety

    Minister of Internal Affairs Brooke van Velden says the Government’s online safety website for children and young people has reached one million page views.  “It is great to see so many young people and their families accessing the site Keep It Real Online to learn how to stay safe online, and manage ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Speech to the Conference for General Practice 2024

    Tēnā tātou katoa,  Ngā mihi te rangi, ngā mihi te whenua, ngā mihi ki a koutou, kia ora mai koutou. Thank you for the opportunity to be here and the invitation to speak at this 50th anniversary conference. I acknowledge all those who have gone before us and paved the ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Employers and payroll providers ready for tax changes

    New Zealand’s payroll providers have successfully prepared to ensure 3.5 million individuals will, from Wednesday next week, be able to keep more of what they earn each pay, says Finance Minister Nicola Willis and Revenue Minister Simon Watts.  “The Government's tax policy changes are legally effective from Wednesday. Delivering this tax ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Experimental vineyard futureproofs wine industry

    An experimental vineyard which will help futureproof the wine sector has been opened in Blenheim by Associate Regional Development Minister Mark Patterson. The covered vineyard, based at the New Zealand Wine Centre – Te Pokapū Wāina o Aotearoa, enables controlled environmental conditions. “The research that will be produced at the Experimental ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Funding confirmed for regions affected by North Island Weather Events

    The Coalition Government has confirmed the indicative regional breakdown of North Island Weather Event (NIWE) funding for state highway recovery projects funded through Budget 2024, Transport Minister Simeon Brown says. “Regions in the North Island suffered extensive and devastating damage from Cyclone Gabrielle and the 2023 Auckland Anniversary Floods, and ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Indonesian Foreign Minister to visit

    Indonesia’s Foreign Minister, Retno Marsudi, will visit New Zealand next week, Foreign Minister Winston Peters has announced.   “Indonesia is important to New Zealand’s security and economic interests and is our closest South East Asian neighbour,” says Mr Peters, who is currently in Laos to engage with South East Asian partners. ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Strengthening partnership with Ngāti Maniapoto

    He aha te kai a te rangatira? He kōrero, he kōrero, he kōrero. The government has reaffirmed its commitment to supporting the aspirations of Ngāti Maniapoto, Minister for Māori Development Tama Potaka says. “My thanks to Te Nehenehenui Trust – Ngāti Maniapoto for bringing their important kōrero to a ministerial ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Transport Minister thanks outgoing CAA Chair

    Transport Minister Simeon Brown has thanked outgoing Chair of the Civil Aviation Authority, Janice Fredric, for her service to the board.“I have received Ms Fredric’s resignation from the role of Chair of the Civil Aviation Authority,” Mr Brown says.“On behalf of the Government, I want to thank Ms Fredric for ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Test for Customary Marine Title being restored

    The Government is proposing legislation to overturn a Court of Appeal decision and amend the Marine and Coastal Area Act in order to restore Parliament’s test for Customary Marine Title, Treaty Negotiations Minister Paul Goldsmith says.  “Section 58 required an applicant group to prove they have exclusively used and occupied ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Opposition united in bad faith over ECE sector review

    Regulation Minister David Seymour says that opposition parties have united in bad faith, opposing what they claim are ‘dangerous changes’ to the Early Childhood Education sector, despite no changes even being proposed yet.  “Issues with affordability and availability of early childhood education, and the complexity of its regulation, has led ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Kiwis having their say on first regulatory review

    After receiving more than 740 submissions in the first 20 days, Regulation Minister David Seymour is asking the Ministry for Regulation to extend engagement on the early childhood education regulation review by an extra two weeks.  “The level of interest has been very high, and from the conversations I’ve been ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government upgrading Lower North Island commuter rail

    The Coalition Government is investing $802.9 million into the Wairarapa and Manawatū rail lines as part of a funding agreement with the NZ Transport Agency (NZTA), KiwiRail, and the Greater Wellington and Horizons Regional Councils to deliver more reliable services for commuters in the lower North Island, Transport Minister Simeon ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government moves to ensure flood protection for Wairoa

    Local Government Minister Simeon Brown has announced his intention to appoint a Crown Manager to both Hawke’s Bay Regional and Wairoa District Councils to speed up the delivery of flood protection work in Wairoa."Recent severe weather events in Wairoa this year, combined with damage from Cyclone Gabrielle in 2023 have ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM speech to Parliament – Royal Commission of Inquiry’s Report into Abuse in Care

    Mr Speaker, this is a day that many New Zealanders who were abused in State care never thought would come. It’s the day that this Parliament accepts, with deep sorrow and regret, the Report of the Royal Commission of Inquiry into Abuse in Care.  At the heart of this report are the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government acknowledges torture at Lake Alice

    For the first time, the Government is formally acknowledging some children and young people at Lake Alice Psychiatric Hospital experienced torture. The final report of the Royal Commission of Inquiry into Abuse in State and Faith-based Care “Whanaketia – through pain and trauma, from darkness to light,” was tabled in Parliament ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government acknowledges courageous abuse survivors

    The Government has acknowledged the nearly 2,400 courageous survivors who shared their experiences during the Royal Commission of Inquiry into Historical Abuse in State and Faith-Based Care. The final report from the largest and most complex public inquiry ever held in New Zealand, the Royal Commission Inquiry “Whanaketia – through ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Half a million people use tax calculator

    With a week to go before hard-working New Zealanders see personal income tax relief for the first time in fourteen years, 513,000 people have used the Budget tax calculator to see how much they will benefit, says Finance Minister Nicola Willis.  “Tax relief is long overdue. From next Wednesday, personal income ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Paid Parental Leave improvements pass first reading

    Workplace Relations and Safety Minister Brooke van Velden says a bill that has passed its first reading will improve parental leave settings and give non-biological parents more flexibility as primary carer for their child. The Regulatory Systems Amendment Bill (No3), passed its first reading this morning. “It includes a change ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Rebuilding the economy through better regulation

    Two Bills designed to improve regulation and make it easier to do business have passed their first reading in Parliament, says Economic Development Minister Melissa Lee. The Regulatory Systems (Economic Development) Amendment Bill and Regulatory Systems (Immigration and Workforce) Amendment Bill make key changes to legislation administered by the Ministry ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • ‘Open banking’ and ‘open electricity’ on the way

    New legislation paves the way for greater competition in sectors such as banking and electricity, Commerce and Consumer Affairs Minister Andrew Bayly says. “Competitive markets boost productivity, create employment opportunities and lift living standards. To support competition, we need good quality regulation but, unfortunately, a recent OECD report ranked New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Charity lotteries to be permitted to operate online

    Minister of Internal Affairs Brooke van Velden says lotteries for charitable purposes, such as those run by the Heart Foundation, Coastguard NZ, and local hospices, will soon be allowed to operate online permanently. “Under current laws, these fundraising lotteries are only allowed to operate online until October 2024, after which ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Accelerating Northland Expressway

    The Coalition Government is accelerating work on the new four-lane expressway between Auckland and Whangārei as part of its Roads of National Significance programme, with an accelerated delivery model to deliver this project faster and more efficiently, Transport Minister Simeon Brown says. “For too long, the lack of resilient transport connections ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Sir Don to travel to Viet Nam as special envoy

    Sir Don McKinnon will travel to Viet Nam this week as a Special Envoy of the Government, Foreign Minister Winston Peters has announced.    “It is important that the Government give due recognition to the significant contributions that General Secretary Nguyen Phu Trong made to New Zealand-Viet Nam relations,” Mr ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Grant Illingworth KC appointed as transitional Commissioner to Royal Commission

    Minister of Internal Affairs Brooke van Velden says newly appointed Commissioner, Grant Illingworth KC, will help deliver the report for the first phase of the Royal Commission of Inquiry into COVID-19 Lessons, due on 28 November 2024.  “I am pleased to announce that Mr Illingworth will commence his appointment as ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ to advance relationships with ASEAN partners

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