The lie of the “fiscally neutral” tax cuts

Written By: - Date published: 3:50 pm, April 4th, 2012 - 46 comments
Categories: economy, john key, national, tax - Tags: ,

Back in 2009 National told us that their tax cuts for the rich were “fiscally neutral”. It didn’t sound likely, and some of us said so at the time. The excellent Keith Ng at Public Address ferreted out the details:

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.

In other words, the only way the Nats could claim to balance the books was to invent a fudge factor — an unknown and unknowable boost to “growth” — to cancel out the cost. But it’s not happening. It was clear in 2010 that it wasn’t happening, but the Nats kept making excuses. So here we are in 2012 and of course…

Lower tax take hits govt finances

The government took in less revenue than expected from income tax, company tax and GST in the eight months ended February 29, widening its operating deficit more than forecast. …

Source deductions were $200 million below forecast “as the labour market and employment and wage growth have been weaker than expected,” the Treasury’s chief financial officer Fergus Walsh said. Corporate tax was $193 million below forecast “as business profitability was weaker that expected,” he said. Goods and services tax was $369 million below forecast, though much of this reflected above-forecast earthquake-related insurance refunds and excluding these, the tax take from GST was near to expectations, the Treasury said. …

Total tax revenue in the first eight months of the fiscal year was $35.35 billion, compared to a forecast in the PREFU of $36.18 billion.

National’s tax cuts were not and are not fiscally neutral, they are costing us in extra borrowing every year. But Key is still out there telling the lie:

Meanwhile, speaking on TV One’s Breakfast programme on Monday morning, Key defended the tax cuts made in the 2010 Budget, having been asked whether they were in fact neutral.

“They literally were neutral,” Key said.

Bollocks.

46 comments on “The lie of the “fiscally neutral” tax cuts ”

  • Comments are now closed

  1. Draco T Bastard 1
    4 April 2012 at 4:00 pm

    But Key is still out there telling the lie:

    You didn’t really think anything else would happen did you? NACT have to make up excuses and tell lies so that their delusion doesn’t fall apart.

  2. ad 2
    4 April 2012 at 4:09 pm

    Currently waiting for a devastating critique from the Labour Finance Spokesperson.

    Any time you’re ready Parker.

    • Kotahi Tane Huna 2.1
      4 April 2012 at 4:12 pm

      Parker doesn’t need to say anything – especially not to satisfy your bludging sense of entitlement. The devastating critiques are coming think and fast from Bernard Hickey et al. Why have a dog and bark yourself?

      • Jimmy 2.1.1
        4 April 2012 at 4:22 pm

        Because Bernard Hickey et al. won’t be aiming to form the next government.

        • ad 2.1.1.1
          4 April 2012 at 5:00 pm

          And because it’s his job, simple as that.

          We are all entitled to expect that a guy who thinks he can take on this government in teh Finance portfolio, and stands in public office to do so, actually does.

          Expecting the media professionals to do that job, simply shows you are ignorant of the difference between a media commentator and a politician.

          • Rob 2.1.1.1.1
            4 April 2012 at 5:41 pm

            I see, I can understand Kotahi Tane Huna confusion here. He feels that all Labour has to do is cruise through the next 2 .5 years , without saying or doing anything , because suddenly the great unwashed will recognise their huge mistake and vote labour back in again, because that’s where Labour deserve to be.

            However , the rest of us actually vote for peole that have some form of policy ,direction and are prepared to get off their arse and explan it to us.

            • Kotahi Tane Huna 2.1.1.1.1.1
              4 April 2012 at 5:51 pm

              I have no doubt that Labour will make their own statements on the issues as they see fit, and I have no doubt that they will not follow any wingnut timetable in doing so. But from my perspective, I can see how full of shit this government is without being spoonfed.

              Rob, the policy direction that you have been duped into supporting has destroyed wealth every single time it has been implemented anywhere in the whole world. Unless you can cite one single example to the contrary, that is. So your assertion that you are a member of a group that “vote for peole (sic) that have some form of policy direction” is amusing, to be charitable.

              • Rob …
                4 April 2012 at 7:18 pm

                I am actually unsure of what policy direction you think I have been duped into supporting, so I cannot offer a contrary view. If you mean that I vote for policies , sure I do and lots of people do, that is why political parties of all nature rise and fall from election to election. People change their vote depending on who they think is offering them and what they care about the best outcome.

                Now, so what is amusing to you given your statement ” So your assertion that you are a member of a group that “vote for peole (sic) that have some form of policy direction” is amusing, to be charitable.”

                • Kotahi Tane Huna …
                  5 April 2012 at 6:25 am

                  @Rob: your support for asset sales, for example.

                  @Muzza: “different” as in “different” policies, “different” priorities, “different” demographics, “different” philosophies.

                  • Muzza …
                    5 April 2012 at 6:30 am

                    The people sure, the politicians, that’s another story altogether now isn’t it !

                    • Kotahi Tane Huna …
                      5 April 2012 at 7:15 am

                      I am reminded of Nandor Tanczos’ valedictory speech. “I came to Parliament thinking that the members were all a bunch of bastards, and I was wrong.”

              • Muzza …
                5 April 2012 at 6:21 am

                Speaking of being duped, those who reckon the left is different from the right overall, duped !

      • Anthony Bull 2.1.2
        5 April 2012 at 12:29 am

        hahaha – the “devastating” critique of Bernard Hickey?

        The same guy who also predicted the housing market values crashing by 40% by 2010, and has suggested the way out of the recession is by printing hundreds of millions of dollars so that it devalues the property market?

        Do you take Bernard Hickey seriously?

    • David H 2.2
      4 April 2012 at 8:28 pm

      I’m waiting for any devastating critique from ANYONE in the Labour Party. They are USELESS. They need a clean out All the Auntie Helen govt movers and shaker should have gone. But no they pulled strings and now we have a dead duck leading a dead duck party.

      • Colonial Viper 2.2.1
        4 April 2012 at 8:42 pm

        Cunliffe is economic development spokesperson. This is not his department.

        • Balanced View 2.2.1.1
          4 April 2012 at 8:56 pm

          My friend Viper! Funny comment, I’m guessing you are asserting that Cunliffe is the dead duck David H has referred to?

          • lprent 2.2.1.1.1
            4 April 2012 at 9:45 pm

            I think that he was referring to the widespread perception that John Key isn’t enjoying being PM any more and that the recent events in National with those nasty wee backstabbing knives have been part of the jostling for the succession.

            Why would you think Cunnliffe is a dead duck?

        • Hami Shearlie 2.2.1.2
          4 April 2012 at 9:35 pm

          I wish it was his department CV!

  3. The Baron 3
    4 April 2012 at 4:27 pm

    So the simple answer is that the earthquake wiped out the fiscal neutrality. Not really a lie then is it, unless you consider the definition of “lying” to include “being unable to predict a massive earthquake”.

    Note the use of WERE in Key’s comments – prior to the earthquake, they WERE neutral. It’s called past tense. Note that it is you, R0B that has tried to make them present tense in your commentary (though I haven’t watched the video to check that, can’t from current location).

    If that present tense isn’t in that video, does that make you a liar then, R0B, for putting words in someone’s mouth to make up a basis for criticism?

    Regardless, I think a better argument is the “cancel the tax cuts because you can’t afford them any more thanks to the earthquake” – but that was last year’s meme, right?

    I guess you’ve decided its better to be shrill and hyperbolic rather than sensible with this year’s warbling. Maybe this doesn’t make you a liar per se, but it does encourage other, less than kind labels.

    • r0b 3.1
      4 April 2012 at 4:43 pm

      That’s some of the most pathetic excusifying I’ve ever seen TB.

      The material quoted is about tax take, and only tax take (not other factors that affect the books, like commodities prices, or costs of the quake). Tax take is down on predictions across the whole economy (not just in Christchurch). Furthermore it was down in 2010 before the major quake in February 2011 (see the link in the original post). So the quake is a (small) factor in tax take especially post February 2011 – but no excuse for the broad deficit that we’re seeing.

      If you want to read some proper analysis of the economics of the quake – try this.

      I realise the strain of defending this awful government is proving difficult for you right wingers TB, but even so that response from you was truly desperate.

      • ad 3.1.1
        4 April 2012 at 5:13 pm

        Totally with you Rob – that tax cut for the rich was one of the stupidest things I’ve ever seen, making the state so weak when it was time actually answer the call of a national crisis. And quarter after quarter we’ve seen that it made no positive impact on economic growth at all.

      • The Baron 3.1.2
        4 April 2012 at 5:22 pm

        I think your missing my point in your hurry to scream LIAR, R0B.

        Is there anything in this video where Key claims that these tax cuts are still fiscally neutral now? Or does he simply restate his assertion that they were fiscally neutral when they were designed, and that the unforseeable economic impact of the earthquake ruined that design?

        If he doesn’t say that they are still fiscally neutral, then I am hardly being a defensive fanboi – I’m simply pointing out that it isn’t really lying if you failed to predict the economic impact of the Chch earthquake. I realise that that doesn’t make such a good hysterical headline for you to slap the Govt with like the good one-eyed loyalist you are, but it is simply more truthful.

        Get where I am coming from?

        • r0b 3.1.2.1
          4 April 2012 at 5:50 pm

          Is there anything in this video where Key claims that these tax cuts are still fiscally neutral now?

          I’ll try to make it simple TB. The cuts were not fiscally neutral when they were introduced. They have not been fiscally neutral at any time in the past, they are not fiscally neutral now, they will not be fiscally neutral any time in the future, they cost money. All statements to the effect that would be, are, or were at any time “fiscally neutral” are lies.

          I think your missing my point in your hurry to scream LIAR, R0B.

          You’re the only one screaming TB.

        • lprent 3.1.2.2
          4 April 2012 at 5:54 pm

          Nope. You are wrong.

          Keith Ng nailed it at the time. Bill and John lied at the time the budget was passed because it depended on a myth.

          Marginal taxcut’s don’t stimulate the economy and cause more tax revenues. They just reduce the taxtake

          They never have and they never will. That is a complete myth spun by people wanting to have a free lunch.

          If there are really really high tax rates, a repressed economy, and a BIG tax cut then you may get a economic stimulus.

          But NZ has some of the lowest total taxes in any country I deal with – once you look at total tax take at national, state, payroll, medicare, and local level and include other mandatory taxes. The economy is entirely free and open, therefore little taxcuts do nothing. This has been proven several times.

          So why did National and the treasury try it again, pushing their magic numbers into the budget to make it ‘neutral’?

          Well there are the idiots around who will believe almost anything becaus ethey are too stupid to read history. You as I remember it were one of them

      • Rob 3.1.3
        4 April 2012 at 5:48 pm

        rOb , we were really forecasting a good solid growth in the South Island for our business. We had released new products, expanded distribution brought on a new sales manager to get the team huming, thinks were looking OK after the a torrid time since 08.

        Nek Minit . i think you get what happened next and then again , then again and again, till some people got killed and more housed got destroyed, the people started to leave.

        Pull your head in.

        • r0b 3.1.3.1
          4 April 2012 at 5:53 pm

          rOb , we were really forecasting a good solid growth in the South Island for our business. We had released new products, expanded distribution brought on a new sales manager to get the team huming, thinks were looking OK after the a torrid time since 08.

          Very happy for your Rob. And all that was because of National’s tax cuts was it? No.

          Nek Minit . i think you get what happened next and then again ,

          Yeah, I was there, I’ll never forget what happened. And yes it will have had an effect on the economy. But it doesn’t explain the nation wide drop in tax take, which was happening in 2010 before the quake.

          Pull your head in.

          Open your eyes.

        • rosy 3.1.3.2
          4 April 2012 at 7:04 pm

          Nek Minit? NACT didn’t have a plan to respond. There were huge calls for a levy to fund the Christchurch rebuild and this idea appeared to have a lot of public support. What happened? Nothing.

    • Kotahi Tane Huna 3.2
      4 April 2012 at 4:56 pm

      “Regardless, I think a better argument is the “cancel the tax cuts because you can’t afford them any more thanks to the earthquake” – but that was last year’s meme, right?”

      It still applies, Baron – the government could easily boost the economy by returning tax to pre 2008 levels and spending some of those $$ – not on Follies like the RONS, but on simple basic things like adult education and better wages for nurses and teachers.

      Taxation never deterred anyone from making a profit. In the USA, for example:

      “Tax increases are followed by economic growth. Three of the four high-growth periods cited previously followed significant tax hikes. The fourth, the Truman-Eisenhower years, began with a top tax rate of 91 percent– it couldn’t get much higher.” Larry Beinhart.

    • Enough is Enough 3.3
      4 April 2012 at 5:05 pm

      The tax take and economy were on the slide well before Christchurch began rocking so bzzzzz try again.

      The economics of the quake are interesting aren’t they. At the moment National blames the quake for their mismanagement of the economy.

      In two years time when the economy will be experencing some positive growth off the back of the Christchurch rebuild, National will claim that growth is down to their management of the economy.

      Don’t let the idiots have it both ways.

  4. tc 4
    4 April 2012 at 4:46 pm

    Beatson uncovered this when he had blinglish on Stratos years ago in what was an interview that should be shown to all the kiddies in our MSM trying to be journalists as a lesson on how to interview a politician.

    Now the facts are in lets watch the MSM dismember them for the ongoing lies and complete failure to not only stimulate but cost us billions in the process……yeah right !

  5. jack 5
    4 April 2012 at 4:49 pm

    They were never neutral. People are buying less, look at the treasury report. 1.2 billion short of forecast. Gst receipts are down.. Key said that the tax cuts were suppose to stimulate the economy and gst receipts would be up.. Key just wants to put New Zealand into more debt to sell off the assets. Ask Key if he knew about the Bretherens involved in the campaign of 2005… He said no, but fact shows he helped put the meetings together. Everything that comes out of his mouth is a lie.. and I voted for him in 2008.. I lean toward the right.. but Key is leaning towards GREED for himself and his mates.

    • shreddakj 5.1
      4 April 2012 at 5:53 pm

      I too voted for Key in ’08 and now I think even the greens are too moderate. You are right though, Key does not have the best interests of NZ at heart.

  6. Blue 6
    4 April 2012 at 6:52 pm

    Natonomics 101:

    1. Cut taxes. Say growth will make up for it.
    2. Insist that growth would have made up for it, if not for….
    3. Borrow money to pay bills. Hope no one notices that borrowing money incurs interest, and therefore costs the country more than it would if we just paid a reasonable amount of tax and paid our bills from that revenue.
    4. Sweat. Realise that most people don’t know and don’t care what is going on with boring stuff like politics and economics. They like tax cuts. Breathe sigh of relief.
    5. Fire a few public servants. Eat some chocolate. Stir up some concern about beneficiaries. Think about what to do next.

    • prism 6.1
      4 April 2012 at 9:13 pm

      Blue
      😀

    • seeker 6.2
      4 April 2012 at 9:30 pm

      Too true Blue yet again, unfortunately, especially:

      “4. Sweat. Realise that most people don’t know and don’t care what is going on with boring stuff like politics and economics. They like tax cuts. Breathe sigh of relief.”

    • Jenny 6.3
      5 April 2012 at 6:12 am

      6. Move to Hawaii permanently.

  7. bad12 7
    4 April 2012 at 11:40 pm

    ”Imagine how big the deficit in the Governments tax take would have been had National not raised GST”,unquote John Key,

    Slippery stands on the Parliaments floor and derisively laughs when questioned by the Greens Russell Norman on the size of the hole in the Governments tax take,

    Axchully Slippery we can imagine the size of the Governments revenue deficit in taxation if National had of not raised GST,around 1.9 billion dollars annually…

  8. Ed 8
    5 April 2012 at 8:32 am

    The link to Keith Ng ferreting out details detail doesn’t work. Should it be
    http://publicaddress.net/onpoint/?start=30 ?

  9. bad12 9
    5 April 2012 at 9:10 am

    The macro-economics of having given tax cuts to high income earners is well documented by various economists and university studies,

    The brief concise and precise prognosis says simply that up to 75% of such largesse when passed to high income earners will simply disappear from the economy what % of the given tax cuts disappear from the economy is simply dictated by the size of the cuts and how high up the income ladder the tax cuts reach,

    We could here get bogged down in percentages of this and degrees of that but the ECONOMIC RULE makes what we have said above a truism no matter which country indulges in such tax cutting,

    When tax cuts for high income earners are in essence ”paid for” by those on low and fixed incomes being taxed more,(GST rise), then the income loss to Government from the tax revenue stream is magnified,

    A simple macro-economic comparison with a income boost for the low and fixed income earner and the same tax cut in strict dollar equality when given to the high income earner says this,

    The low and fixed income earner with their windfall considering they ”need” some items of new clothing will head off to the Ware Whare and spend all or part of their higher income,

    The high income earner considering the same ”need” is very likely to be off to Sydney Australia to fulfill such wardrobe requirements,

    Thus part or all of the tax cut to the high earner is removed from the NZ economy,and in this our first example of how such income tax cuts to the high earner simply disappear from the NZ economy we have perhaps over-simplified,

    However,the list of ways such a windfall of income tax cuts for the high income earner find to leave the NZ economy is long and we have deliberately made the analogy simple so that if the Member from Dipton or His master Slippery stumble across it here they might have the inkling of a clue as to just what they have accomplished,

    The above of course only applies if you believe that the tragic out-come of the tax cuts,a 1 billion hole in the Governments revenue stream from taxation was an un-forseen accident…

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

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

    Chris Bishop has enthusiastically dubbed himself and Simeon Brown “the Infra Boys”, but they need to take note of the sums around their roading dreams. Photo: Lynn GrievesonMōrena. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Tuesday, September ...
    The KakaBy Bernard Hickey
    3 days ago
  • Media Link: “AVFA” on the politics of desperation.

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

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

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

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

    This is a guest post by Ben van Bruggen of The Urban Room,.An earlier version of this post appeared on LinkedIn. All images are by Ben. Have you noticed that there’s almost nowhere on Queen Street that invites you to stop, sit outside and enjoy a coffee, let alone ...
    Greater AucklandBy Guest Post
    4 days ago
  • Hipkins challenges long-held Labour view Government must stay below 30% of GDP

    Hipkins says when considering tax settings and the size of government, the big question mark is over what happens with the balance between the size of the working-age population and the growing number of Kiwis over the age of 65. Photo: Lynn Grieveson / The KākāMōrena. Long stories short; here’s ...
    The KakaBy Bernard Hickey
    4 days ago
  • Your invite to Webworm Chat (a bit like Reddit)

    Hi,One of the things I love the most about Webworm is, well, you. The community that’s gathered around this lil’ newsletter isn’t something I ever expected when I started writing it four years ago — now the comments section is one of my favourite places on the internet. The comments ...
    David FarrierBy David Farrier
    4 days ago
  • Seymour’s Treaty bill making Nats nervous

    A delay in reappointing a top civil servant may indicate a growing nervousness within the National Party about the potential consequences of David Seymour’s Treaty Principles Bill. Dave Samuels is waiting for reappointment as the Chief Executive of Te Puni Kokiri, but POLITIK understands that what should have been a ...
    PolitikBy Richard Harman
    4 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #36

    A listing of 34 news and opinion articles we found interesting and shared on social media during the past week: Sun, September 1, 2024 thru Sat, September 7, 2024. Story of the week Our Story of the Week is about how peopele are not born stupid but can be fooled ...
    Skeptical Science
    4 days ago
  • Time for a Change

    You act as thoughYou are a blind manWho's crying, crying 'boutAll the virgins that are dyingIn your habitual dreams, you knowSeems you need more sleepBut like a parrot in a flaming treeI know it's pretty hard to seeI'm beginning to wonderIf it's time for a changeSong: Phil JuddThe next line ...
    Nick’s KōreroBy Nick Rockel
    4 days ago
  • Security Politics in Peripheral Democracies: Excerpt Six.

    The “double shocks” in post Cold War international affairs. The end of the Cold War fundamentally altered the global geostrategic context. In particular, the end of the nuclear “balance of terror” between the USA and USSR, coupled with the relaxation … Continue reading → ...
    KiwipoliticoBy Pablo
    4 days ago
  • Buried deep

    Here's a bike on Manchester St, Feilding. I took this photo on Friday night after a very nice dinner at the very nice Vietnamese restaurant, Saigon, on Manchester Street.I thought to myself, Manchester Street? Bicycle? This could be the very spot.To recap from an earlier edition: on a February night ...
    More Than A FeildingBy David Slack
    5 days ago
  • Security Politics in Peripheral Democracies, Excerpt Five.

    Military politics as a distinct “partial regime.” Notwithstanding their peripheral status, national defense offers the raison d’être of the combat function, which their relative vulnerability makes apparent, so military forces in small peripheral democracies must be very conscious of events … Continue reading → ...
    KiwipoliticoBy Pablo
    5 days ago
  • Leadership for Dummies

    If you’re going somewhere, do you maybe take a bit of an interest in the place? Read up a bit on the history, current events, places to see - that sort of thing? Presumably, if you’re taking a trip somewhere, it’s for a reason. But what if you’re going somewhere ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • Home again

    Hello! Here comes the Saturday edition of More Than A Feilding, catching you up on anything you may have missed. Share Read more ...
    More Than A FeildingBy David Slack
    6 days ago
  • Dead even tie for hottest August ever

    Long stories short, here’s the top six news items of note in climate news for Aotearoa-NZ this week, and a discussion above between Bernard Hickey and The Kākā’s climate correspondent Cathrine Dyer:The month of August was 1.49˚C warmer than pre-industrial levels, tying with 2023 for the warmest August ever, according ...
    The KakaBy Bernard Hickey
    6 days ago
  • The Hoon around the week to Sept 7

    The podcast above of the weekly ‘Hoon’ webinar for paying subscribers on Thursday night features co-hosts and talking about the week’s news with:The Kākā’s climate correspondent on the latest climate science on rising temperatures and the debate about how to responde to climate disinformation; and special guest ...
    The KakaBy Bernard Hickey
    6 days ago
  • Have We an Infrastructure Deficit?

    An Infrastructure New Zealand report says we are keeping up with infrastructure better than we might have thought from the grumbling. But the challenge of providing for the future remains.I was astonished to learn that the quantity of our infrastructure has been keeping up with economic growth. Your paper almost ...
    PunditBy Brian Easton
    6 days ago
  • Councils reject racism

    Last month, National passed a racist law requiring local councils to remove their Māori wards, or hold a referendum on them at the 2025 local body election. The final councils voted today, and the verdict is in: an overwhelming rejection. Only two councils out of 45 supported National's racist agenda ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • Homage to Simeon Brown

    Open to all - happy weekend ahead, friends.Today I just want to be petty. It’s the way I imagine this chap is -Not only as a political persona. But his real-deal inner personality, in all its glory - appears to be pure pettiness & populist driven.Sometimes I wonder if Simeon ...
    Mountain TuiBy Mountain Tui
    6 days ago
  • Government of deceit

    When National cut health spending and imposed a commissioner on Te Whatu Ora, they claimed that it was necessary because the organisation was bloated and inefficient, with "14 layers of management between the CEO and the patient". But it turns out they were simply lying: Health Minister Shane Reti’s ...
    No Right TurnBy Idiot/Savant
    6 days ago
  • The professionals actually think and act like our Government has no fiscal crisis at all

    Treasury staff at work: The demand for a new 12-year Government bond was so strong, Treasury decided to double the amount of bonds it sold. Photo: Lynn GrievesonMōrena. Long stories short; here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Friday, September ...
    The KakaBy Bernard Hickey
    6 days ago
  • Weekly Roundup 6-September-2024

    Welcome to another Friday and another roundup of stories that caught our eye this week. As always, this and every post is brought to you by the Greater Auckland crew. If you like our work and you’d like to see more of it, we invite you to join our regular ...
    Greater AucklandBy Greater Auckland
    7 days ago
  • Security Politics in Peripheral Democracies; Excerpt Four.

    Internal versus external security. Regardless of who rules, large countries can afford to separate external and internal security functions (even if internal control functions predominate under authoritarian regimes). In fact, given the logic of power concentration and institutional centralization of … Continue reading → ...
    KiwipoliticoBy Pablo
    7 days ago
  • A Hole In The River

    There's a hole in the river where her memory liesFrom the land of the living to the air and skyShe was coming to see him, but something changed her mindDrove her down to the riverThere is no returnSongwriters: Neil Finn/Eddie RaynerThe king is dead; long live the queen!Yesterday was a ...
    Nick’s KōreroBy Nick Rockel
    7 days ago
  • Bright Blue His Jacket Ain’t But I Love This Fellow: A Review and Analysis of The Rings of Power E...

    My conclusion last week was that The Rings of Power season two represented a major improvement in the series. The writing’s just so much better, and honestly, its major problems are less the result of the current episodes and more creatures arising from season one plot-holes. I found episode three ...
    A Phuulish FellowBy strda221
    7 days ago
  • Who should we thank for the defeat of the Nazis

    As a child in the 1950s, I thought the British had won the Second World War because that’s what all our comics said. Later on, the films and comics told me that the Americans won the war. In my late teens, I found out that the Soviet Union ...
    Open ParachuteBy Ken
    1 week ago
  • Skeptical Science New Research for Week #36 2024

    Open access notables Diurnal Temperature Range Trends Differ Below and Above the Melting Point, Pithan & Schatt, Geophysical Research Letters: The globally averaged diurnal temperature range (DTR) has shrunk since the mid-20th century, and climate models project further shrinking. Observations indicate a slowdown or reversal of this trend in recent decades. ...
    Skeptical Science
    1 week ago
  • Join us for the weekly Hoon on YouTube Live at 5pm

    Photo by Jenny Bess on UnsplashCome and join us for our weekly ‘Hoon’ webinar with paying subscribers to The Kākā for an hour at 5 pm.Jump on this link on YouTube Livestream for our chat about the week’s news with special guests:5.00 pm - 5.10 pm - Bernard and ...
    The KakaBy Bernard Hickey
    1 week ago
  • Media Link: Discussing the NZSIS Security Threat Report.

    I was interviewed by Mike Hosking at NewstalkZB and a few other media outlets about the NZSIS Security Threat Report released recently. I have long advocated for more transparency, accountability and oversight of the NZ Intelligence Community, and although the … Continue reading → ...
    KiwipoliticoBy Pablo
    1 week ago
  • How do I make this better for people who drive Ford Rangers?

    Home, home again to a long warm embrace. Plenty of reasons to be glad to be back.But also, reasons for dejection.You, yes you, Simeon Brown, you odious little oik, you bible thumping petrol-pandering ratfucker weasel. You would be Reason Number One. Well, maybe first among equals with Seymour and Of-Seymour ...
    More Than A FeildingBy David Slack
    1 week ago
  • A missed opportunity

    The government introduced a pretty big piece of constitutional legislation today: the Parliament Bill. But rather than the contentious constitutional change (four year terms) pushed by Labour, this merely consolidates the existing legislation covering Parliament - currently scattered across four different Acts - into one piece of legislation. While I ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Nicola Willis Seeks New Sidekick To Help Fix NZ’s Economy

    Synopsis:Nicola Willis is seeking a new Treasury Boss after Dr Caralee McLiesh’s tenure ends this month. She didn’t listen to McLiesh. Will she listen to the new one?And why is Atlas Network’s Taxpayers Union chiming in?Please consider subscribing or supporting my work. Thanks, Tui.About CaraleeAt the beginning of July, Newsroom ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Inflation alive and kicking in our land of the long white monopolies

    The golden days of profit continue for the the Foodstuffs (Pak’n’Save and New World) and Woolworths supermarket duopoly. Photo: Lynn Grieveson / The KākāMōrena. Long stories short; here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Thursday, September 5:The Groceries Commissioner has ...
    The KakaBy Bernard Hickey
    1 week ago
  • The thermodynamics of electric vs. internal combustion cars

    This is a re-post from The Climate Brink by Andrew Dessler I love thermodynamics. Thermodynamics is like your mom: it may not tell you what you can do, but it damn well tells you what you can’t do. I’ve written a few previous posts that include thermodynamics, like one on air capture of ...
    Skeptical Science
    1 week ago
  • Security Politics in Peripheral Democracies: Excerpt Three.

    The notion of geopolitical  “periphery.” The concept of periphery used here refers strictly to what can be called the geopolitical periphery. Being on the geopolitical periphery is an analytic virtue because it makes for more visible policy reform in response … Continue reading → ...
    KiwipoliticoBy Pablo
    1 week ago
  • Venus Hum

    Fill me up with soundThe world sings with me a million smiles an hourI can see me dancing on my radioI can hear you singing in the blades of grassYellow dandelions on my way to schoolBig Beautiful Sky!Song: Venus Hum.Good morning, all you lovely people, and welcome to the 700th ...
    Nick’s KōreroBy Nick Rockel
    1 week ago
  • I Went to a Creed Concert

    Note: The audio attached to this Webworm compliments today’s newsletter. I collected it as I met people attending a Creed concert. Their opinions may differ to mine. Read more ...
    David FarrierBy David Farrier
    1 week ago
  • Government migration policy backfires; thousands of unemployed nurses

    The country has imported literally thousands of nurses over the past few months yet whether they are being employed as nurses is another matter. Just what is going on with HealthNZ and it nurses is, at best, opaque, in that it will not release anything but broad general statistics and ...
    PolitikBy Richard Harman
    1 week ago
  • A Time For Unity.

    Emotional Response: Prime Minister Christopher Luxon addresses mourners at the tangi of King Tuheitia on Turangawaewae Marae on Saturday, 31 August 2024.THE DEATH OF KING TUHEITIA could hardly have come at a worse time for Maoridom. The power of the Kingitanga to unify te iwi Māori was demonstrated powerfully at January’s ...
    Bowalley Road
    1 week ago
  • Climate Change: Failed again

    National's tax cut policies relied on stealing revenue from the ETS (previously used to fund emissions reduction) to fund tax cuts to landlords. So how's that going? Badly. Today's auction failed again, with zero units (of a possible 7.6 million) sold. Which means they have a $456 million hole in ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Security Politics in Peripheral Democracies: Excerpt Two.

    A question of size. Small size generally means large vulnerability. The perception of threat is broader and often more immediate for small countries. The feeling of comparative weakness, of exposure to risk, and of potential intimidation by larger powers often … Continue reading → ...
    KiwipoliticoBy Pablo
    1 week ago
  • Nicola Willis’s Very Unserious Bungling of the Kiwirail Interislander Cancellation

    Open to all with kind thanks to all subscribers and supporters.Today, RNZ revealed that despite MFAT advice to Nicola Willis to be very “careful and deliberate” in her communications with the South Korean government, prior to any public announcement on cancelling Kiwirail’s i-Rex, Willis instead told South Korea 26 minutes ...
    Mountain TuiBy Mountain Tui
    1 week ago
  • Satisfying the Minister’s Speed Obsession

    The Minister of Transport’s speed obsession has this week resulted in two new consultations for 110km/h speed limits, one in Auckland and one in Christchurch. There has also been final approval of the Kapiti Expressway to move to 110km/h following an earlier consultation. While the changes will almost certainly see ...
    Greater AucklandBy Matt L
    1 week ago
  • What if we freed up our streets, again?

    This guest post is by Tommy de Silva, a local rangatahi and freelance writer who is passionate about making the urban fabric of Tāmaki Makaurau-Auckland more people-focused and sustainable. New Zealand’s March-April 2020 Level 4 Covid response (aka “lockdown”) was somehow both the best and worst six weeks of ...
    Greater AucklandBy Guest Post
    1 week ago

  • New Bill to crack down on youth vaping

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

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

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

    Technology companies are among the startups which will benefit from increases to current thresholds of exempt employee share schemes, Science, Innovation and Technology Minister Judith Collins and Revenue Minister Simon Watts say. Tax exempt thresholds for the schemes are increasing as part of the Taxation (Annual Rates for 2024-25, Emergency ...
    BeehiveBy beehive.govt.nz
    5 hours ago
  • Getting the healthcare you need, when you need it

    The path to faster cancer treatment, an increase in immunisation rates, shorter stays in emergency departments and quick assessment and treatments when you are sick has been laid out today. Health Minister Dr Shane Reti has revealed details of how the ambitious health targets the Government has set will be ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Targeted supports to accelerate reading

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

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

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

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

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

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

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

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

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

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

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

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

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

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

    The Education Minister has established a Māori Education Ministerial Advisory Group made up of experienced practitioners to help improve outcomes for Māori learners. “This group will provide independent advice on all matters related to Māori education in both English medium and Māori medium settings. It will focus on the most impactful ways we can lift ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government welcomes findings of NZ Superannuation Fund review

    The Government has welcomed the findings of the recent statutory review into the Guardians of New Zealand Superannuation and the New Zealand Superannuation Fund, Minister of Finance Nicola Willis says. The 5-yearly review, conducted on behalf of Treasury and tabled in Parliament today, found the Guardians of New Zealand Superannuation ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • First of five new Hercules aircraft takes flight

    Defence Minister Judith Collins today welcomed the first of five new C-130J-30 Hercules to arrive in New Zealand at a ceremony at the Royal New Zealand Air Force’s Base Auckland, Whenuapai. “This is an historic day for our New Zealand Defence Force (NZDF) and our nation. The new Hercules fleet ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Have your say on suicide prevention

    Today, September 10 is World Suicide Prevention Day, a time to reflect on New Zealand’s confronting suicide statistics, Mental Health Minister Matt Doocey says. “Every death by suicide is a tragedy – a tragedy that affects far too many of our families and communities in New Zealand. We must do ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Action to grow the rural health workforce

    Scholarships awarded to 27 health care students is another positive step forward to boost the future rural health workforce, Associate Health Minister Matt Doocey says. “All New Zealanders deserve timely access to quality health care and this Government is committed to improving health outcomes, particularly for the one in five ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Pharmac delivering more for Kiwis following major funding boost

    Associate Health Minister with responsibility for Pharmac David Seymour has welcomed the increased availability of medicines for Kiwis resulting from the Government’s increased investment in Pharmac. “Pharmac operates independently, but it must work within the budget constraints set by the Government,” says Mr Seymour. “When our Government assumed office, New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Sport Minister congratulates NZ’s Paralympians

    Sport & Recreation Minister Chris Bishop has congratulated New Zealand's Paralympic Team at the conclusion of the Paralympic Games in Paris.  “The NZ Paralympic Team's success in Paris included fantastic performances, personal best times, New Zealand records and Oceania records all being smashed - and of course, many Kiwis on ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government progresses response to Abuse in Care recommendations

    A Crown Response Office is being established within the Public Service Commission to drive the Government’s response to the Royal Commission into Abuse in Care. “The creation of an Office within a central Government agency was a key recommendation by the Royal Commission’s final report.  “It will have the mandate ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Passport wait times back on-track

    Minister of Internal Affairs Brooke van Velden says passport processing has returned to normal, and the Department of Internal Affairs [Department] is now advising customers to allow up to two weeks to receive their passport. “I am pleased that passport processing is back at target service levels and the Department ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New appointments to the FMA board

    Commerce and Consumer Affairs Minister has today announced three new appointments and one reappointment to the Financial Markets Authority (FMA) board. Tracey Berry, Nicholas Hegan and Mariette van Ryn have been appointed for a five-year term ending in August 2029, while Chris Swasbrook, who has served as a board member ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • District Court judges appointed

    Attorney-General Hon Judith Collins today announced the appointment of two new District Court judges. The appointees, who will take up their roles at the Manukau Court and the Auckland Court in the Accident Compensation Appeal Jurisdiction, are: Jacqui Clark Judge Clark was admitted to the bar in 1988 after graduating ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Government makes it faster and easier to invest in New Zealand

    Associate Minister of Finance David Seymour is encouraged by significant improvements to overseas investment decision timeframes, and the enhanced interest from investors as the Government continues to reform overseas investment. “There were about as many foreign direct investment applications in July and August as there was across the six months ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New Zealand to join Operation Olympic Defender

    New Zealand has accepted an invitation to join US-led multi-national space initiative Operation Olympic Defender, Defence Minister Judith Collins announced today. Operation Olympic Defender is designed to coordinate the space capabilities of member nations, enhance the resilience of space-based systems, deter hostile actions in space and reduce the spread of ...
    BeehiveBy beehive.govt.nz
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  • Government commits to ‘stamping out’ foot and mouth disease

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