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The next oil spike(s)

Written By: - Date published: 4:01 pm, April 13th, 2009 - 13 comments
Categories: economy, transport - Tags: ,

Remember the oil spike? Over the course of the last 4-5 years, oil kept on breaking records, culminating in a massive spike to reach $150 last June. Why did that happen? Some people want to dismiss it as just a speculative bubble but they forget that speculators come to a market that has a fundamental driver of price change. They magnify that price change (and speculation cuts both ways, right now, there’s negative speculation in oil through short-selling) but there’s a real reason for the price change.

That reason ought to be very worrying – our capacity to produce oil was not increasing as fast as our demand for the stuff. The consequence was that the spare capacity buffer evaporated, and that, in turn, prompted the price spike.

oil-capacity-crunch

Well, so what, some might argue. The price went up, it destroyed demand and prompted more investment in capacity. The buffer was restored. The price fell. That’s how markets are meant to work. Crisis over.

Not quite. Demand destruction came at a terrible price, a global recession and the capacity issue is not solved, indeed the economic situation has set us up for another capacity crunch in the near future.

Don’t believe me, look at what the International Energy Agency is saying. The collapse of the oil price and the drying up of credit worldwide have been a double punch on investment in oil production capacity. $100 billion in new oil projects has been cancelled because funding for them has gone and there are many other potential projects that can’t get off the ground when there is no credit and the extraction costs are too high to guarantee a profit based on current prices.

Oil projects take 5-10 years from initial exploration to commercial production, and existing fields’ production declines at predictable rates. That means we have a very clear idea now of what capacity will be like in coming years. Right now, we are not investing enough. The IEA has warned that because of this, there will not be enough capacity to meet demand as the world comes out of recession. They predict that the end of the recession will see demand recover particular from India and China, and that will see the capacity cushion disappear once more sparking another super-spike.

The oil market appears to agree. A barrel of oil for delivery in June 2010 is currently going for $129, compared to $50 a barrel for delivery in May 2009. Another oil spike is coming as soon as the economy starts to recover and it will slam the still delicate world economy back into recession.

Economics turns a single geologic peak into a prolonged series of alternating price super-spikes and deep recessions.

multi-spike

Every time the global economy gets back on its feet, the demand for oil climbs and approaches the stalling or falling capacity to produce oil, sending the price sky-high until the global economy cannot bear it any longer. The nature of private investment may only serve to worsen this trend. During the spikes, it will be all aboard for speculators drving the price higher and there’s investment in both oil capacity and oil alternatives. But come the economic crash the money dries up, the oil and oil alternative investment gets canned because the short-term profit has gone, so that the world stays oil dependent and short on oil production, ingredients for the next spike.

If this is how peak oil will manifest, it’s going to be a long and bumpy ride down for economies addicted to oil. Getting off as soon as possible would be wise.

Clinton Smith (PS in the past I posited that the oil spike caused the global recession by crippling the housing market. Others (eg these jokers) are arguing this in more detail. I’ll write a synopsis for The Standard some time)

[update: jarbury has a post on the same issues. He adds some important quotes from The Last Oil Shock

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13 comments on “The next oil spike(s)”

  1. Stephen 1

    Are you personally going to go long on oil then? Sounds profitable.

  2. Very interesting post. I agree the the world seems likely to end up stuck in an oil-spike, recession, oil-spike, recession, cycle unless we somehow wean ourselves from relying on oil so much.

    New Zealand’s greatest reliance on oil is for transportation, and in particular due to our automobile dependent cities. Even more reason to promote public transport.

    I have blogged on this exact issue in the last couple of days. People might find it interesting reading: http://www.jarbury.net/index.blog/1364571/peak-oil-transport-the-economy-etc/

  3. chris 3

    I’m looking into going long on oil after this, should cover the increse in petrol costs

  4. It all comes down to when the world’s economy comes out of recession, and how long it is before the next oil spike whacks it back into recession.

    If it takes longer than expected, then oil prices will still be low. Alternatively, if the economy recovers really quick and oil demand rebounds you will end up with a big spike, knocking the world back into recession and causing oil prices to plummet again.

  5. Good post and succinctly put. I have read a few people suggest that this is our future. It seems abundantly clear to me that peak oil has arrived.

    If I can simplify what will happen the earth’s economy will stagger onto its feet again, fuel consumption will rise, the price will spike, economic dislocation will ensue and we will be plunged into another recession. This process will continue to repeat.

    The only way out is to break our (the World’s) dependence on oil. This will have the associated benefits for New Zealand of reducing our carbon footprint and also reducing our balance of payments problems. Obama gets it. Key does not.

    So we need to build compact cities, boost up and electrify rail and stop building motorways.

    Why did I feel this surge of depression when I typed the last sentence?

    • jarbury 5.1

      I suppose that in NZ we’re somewhat lucky in that most of our oil is just for transportation, rather than for heating and power supply. This is why we really need to focus on revolutionising our transport system towards a future that is not based on oil-dependence. Labour had the right idea with electric cars, but they’re not really either a short-term (too expensive) or long-term (scarcity of resources to make the batteries) solution.

      Auckland is one of the, if not THE, most car dependent cities in the world. That needs to change, and it certainly won’t change with Steven Joyce stealing money from public transport to build super-highways.

  6. Rich 6

    The article on house prices vs oil is interesting, but I’m not sure on the directions of causation.

    I think that people’s willingness to live in exurbs has increased as a result of inflated house prices in central districts, coupled with the general fetishisation of home ownership. That asset bubble also caused people to demand to take on unrealistic debts, which the banking system facilitated (in NZ through fringe finance companies, elsewhere through complex financial products). The root cause of this was government’s refusal to constrain the asset price bubble, rather than the criminality of individuals in the banking industry, which appears to be the consensus promoted by left- and right- at the moment.

    In terms of policy measures that could help us with this, I’d consider that suppressing house price inflation and preventing development outside existing core metropolitan areas would be sensible. Also, as I suggested here a two-tier petrol pricing scheme would help limit the impact of oil schocks while reducing discretionary consumption.

    • Draco T Bastard 6.1

      he root cause of this was government’s refusal to constrain the asset price bubble,

      Which came about due to the rather stupid belief that the free-market would regulate itself. Such deregulation would be possible if people had full knowledge of the market and the banking cartel (and others) have made sure that that is impossible to get. Probably so that their criminal actions aren’t known.

  7. Rich 7

    It’s easy to come up with a conspiracy theory about groups of criminal bankers. Not dissimilar to what the ruling classes did in another time and country – throw some scapegoats to the wolves in the hope that they could carry on regardless.

    People are easily convinced (not least when the television has house pr0n for two hours a night) that everyone will benefit from the wonders of property “appreciation”. It was obvious to me that this was a bubble – you can’t have a stable society where a rentier class lives well off assets and the rest struggle to pay for somewhere to live.

    When an average house costs 4-5 times average earnings, the only way people can afford to buy will be by taking an imprudent loan. Banks and finance companies, trying to make profits, found a way to make those loans. The government could have stopped them, but didn’t because it was scared to kill the fiction that everyone had a chance of becoming a wealthy asset owner.

  8. “Obama gets it. Key does not.

    So we need to build compact cities, boost up and electrify rail and stop building motorways.

    Why did I feel this surge of depression when I typed the last sentence?”

    Probably because you know deep in your heart that Obama’s most important action so far has been to ensure the automaker bailouts are conditional on delivering the technology that the USA needs to break it’s oil dependency and the other options are either too slow, preposterously expensive or short sighted budget sacrifice.

    • Actually my depression is caused by our local leaders rather than by Obama.

      I agree with your comment about Obama’s plan. He has been as astute as his pre-election campaign suggested that he would be. At a superficial level I wanted him to go really hard and the (w)bankers and easy on the car manufacturers. I wanted him to hang bankers and preserve the jobs of auto workers.

      He has done the opposite.

      He has insisted on the preservation of the new technology. The possibility is that GM will go to the wall but a new company will emerge with the right to produce the electric volt. No more 4wds, electric cars only. This could have a significant effect on US fleet efficiency.

      As for my leaders, well, what can I say? They sabotaged the standards for lightbulbs on the basis of “freedom”. When William Wallace uttered that word I do not think that he meant the preservation of the ability to pollute the world.

  9. Snook 9

    Peak Oil has arrived – future growth is not possible. As Richard Heinberg has said in many interviews the world will suffer a series of depressions and each one will be progressively worse. Mankind has squandered this precious one-time gift of nature so we can feel pumped about how clever, important and wasteful we are.

    John Key needs to take the Steady State Economy 101 course and cancel all new motorway/highway construction – Transmission Gully would be our greatest folly riddled with fault lines as it is. Rail electrification, new rail feeder services and subsidised transport need to be implemented immediately so that people will think themselves crazy to even think of owning a car.

    Our petrol consumption needs to be rationed and everything to do with energy put on a wartime footing. As the investment banker Matt Simmons, author of Twilight in the Desert says, employers need to liberate their workers who can work at home and pay on productivity. This man has researched the Saudia Arabia reserves situation and believes the Saudis are sugar coating how vast their reserves are. Matt also says that most of the drilling rigs are knackered and at least 25 years old and are not being replaced.

    As for GM and Chrysler, they’re toast and should not be saved. These companies couldn’t make a fuel efficient car if they tried such is their Freudian preoccupation with size. Time for the auto workers and those in associated industries to retrain for rail careers and working on the land because fossil fuel based machinery will become an expensive white elephant with price spikes and possible disruptions to supply. The price of oil based fertilisers and insecticides have increased massively also so expect the price of food to skyrocket.

    There won’t be too much affordable fuel in the next few years when oil well declines such as these are considered. Ghawar is the largest oil well in the world and the amount of salt water injection required to keep up the well pressure for pumping has increased significantly.

    Fieldname, country (peak year) peak/present rates, decline %:

    Ghawar, Saudi Arabia (1980) 5588/5100, -8.73%
    Cantarell, Mexico (2003) 2054/1675, -18.45%
    Safaniyah, Saudi Arabia (1998) 2128/1408, -33.83%
    Rumaila N&S, Iraq (1979) 1493/1250, -16.28%
    Greater Burgan, Kuwait (1972) 2415/1170, -51.55%
    Samotlor, Russia (1980) 3435/903, -73.71%
    Ahwaz, Iran (1977) 1082/770, -28.84%
    Zakum Abu Dhabi, UAE (1998) 795/674, -15.22%

    If you don’t have a bike get one now, start walking and be prepared that your current job may not exist in a few years. A lot of people will return to working on the land and probably for a lot less money.

    Serfs up!

    • Snook, I presume you live in Auckland or Wellington. Only that half of the population instictively think “Rail electrification, new rail feeder services and subsidised transport”. Have a look at the MoT’s ongoing household travel survey. It reveals that the regions with the lowest use of cars for commuting are rural, and that’s without taking into account those who work at home, which is very common in rural areas. Basicly those who live in small towns live cloe enough to where they work so that they can and do walk or cycle to work, just like Copenhagen and Amsterdam.

      We don’t have to worry about city trucks and buses, they can easily swap their diesel engines with electric motors and lead/carbon batteries. Intercity trucks can be replaced by coastal shipping since there will be plenty of international ships lying idle. The railways won’t be able to quintuple it’s rolling stock fast enough to be of any immediate use.

      Half of our car travel, measured in km rather than time or number of trips, is for leisure purposes so it can be sacrificed for no financial cost. Unfortunately it will crash GDP, which pretty much confirms that GDP is a nonsense measure.

      Your last paragraph is absolutely spot on and the main reason why rail electrification, new rail feeder services and subsidised transport will be a folly of the same magnitude as Transmission Gully.

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    No Right TurnBy Idiot/Savant
    1 week ago
  • Retailing of vaping products – New NZ Research
    Dr Lindsay Robertson, Dr Jerram Bateman, Professor Janet Hoek Members of the public health community hold divergent views on how access to vaping products or electronic nicotine delivery systems (ENDS) products should be arranged. Some believe ENDS should be as widely available as smoked tobacco and argue for liberal ...
    SciBlogsBy Public Health Expert
    1 week ago
  • Justice for Bomber
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    No Right TurnBy Idiot/Savant
    1 week ago
  • Britain’s climate tyranny was unlawful
    Last month, in response to a wave of protests by Extinction Rebellion, the British government purported to ban their protests from the whole of London. It was a significant interference with the freedoms of expression and assembly, and another sign of the country's decline into tyranny. But now, a court ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • More crime from the spies
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    No Right TurnBy Idiot/Savant
    1 week ago
  • Vaccination, compulsion, and paternalism for the lower orders
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    SciBlogsBy Eric Crampton
    1 week ago
  • Global Protests Rage On: But Slogans Are Not Plans.
    Feeding The Flames: It is simply not enough to demand an end to “corruption”, or “inequality”, or the overbearing influence of the authorities in Beijing. These are just “lowest common denominator” demands: the sort of slogans that pull people onto the streets. They are not a plan.WHERE’S THE PLAN? Across ...
    1 week ago
  • 11,000 employed under Labour
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Boycott this democratic fraud
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Why Mars is cold despite an atmosphere of mostly carbon dioxide
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    SciBlogsBy Guest Author
    2 weeks ago
  • Climate Change: Ban private jets
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Climate Change: Untold Suffering
    That's what we face if we don't stop climate change, according to a warning from 11,000 scientists:The world’s people face “untold suffering due to the climate crisis” unless there are major transformations to global society, according to a stark warning from more than 11,000 scientists. “We declare clearly and unequivocally ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • The left and violent misogyny
    by Phil Duncan Here’s just a few of the kind of threats issued day in and day out against gender-critical women – feminists, marxists, etc – overwhelmingly by MEN (albeit men identifying as women). “Kill all Terfs”. “Shoot a Terf today”. “All terfs deserve to be shot in the head”. ...
    RedlineBy Admin
    2 weeks ago
  • Imperialism and the iPhone
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    RedlineBy Admin
    2 weeks ago
  • The freshwater mussel housing crisis: eviction by invasive weeds?
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    SciBlogsBy Guest Author
    2 weeks ago
  • Back it up Luxon: endorsing the destructive past is not actually the way forward
    And to think he gave all the potential goodwill away with that moronic, cult-like statement (repeated ad nauseam by many National hardliners) that Key is quite simply “the greatest PM we ever had”… Installation complete: this was nothing ...
    exhALANtBy exhalantblog
    2 weeks ago
  • Good riddance
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Climate Change: D-Day
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Winston is right
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    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Media impartiality
    Sky's economics editor, Ed Conway has posted a Twitter thread responding to a claim that - as far as I can see - Labour never made:
    Are NHS operation cancellations at an all-time high? That's the impression you might have been left with if you read this story from the ...
    2 weeks ago
  • Finish what’s on your plate
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    SciBlogsBy Genomics Aotearoa
    2 weeks ago
  • Gainful Employment: A Cautionary Tale.
    Transformative Politics: The idea is to turn each recipient into an unwitting accomplice in their own transformation. From interested observer to hyped-up activist, sharing our messages promiscuously with ‘friends’. You’ll be part of an ever-expanding circulatory system, Jennifer, for the ideas that will win us the election.”JENNIFER SKITTERED her chair ...
    2 weeks ago
  • New Zealand should not fund bigotry
    Two years ago, the Cook Islands government announced that it was planning to join the civilised world and decriminalise consensual homosexual sex between men. Now, they've reversed their position, and decided to criminalise lesbians into the bargain:Two years ago, in a step welcomed by many people including the gay and ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • New Fisk
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • More tyranny in Australia
    The boycott is a fundamental tool of protest. By choosing who we buy from, we can send a message, and hopefully change corporate behaviour. Historically, boycotts have been effective, for example over apartheid in South Africa and Israel, in forcing divestment from Myanmar, and in ending bus segregation in the ...
    No Right TurnBy Idiot/Savant
    2 weeks ago

  • Kiwis to have their say on End of Life Choice
    Jenny Marcroft MP, Spokesperson for Health New Zealand First backs the public to decide on the End of Life Choice Bill via a referendum at the 2020 General Election. The Bill, with New Zealand First’s referendum provision incorporated, passed its final reading in Parliament this evening. New Zealand First Spokesperson for ...
    3 days ago
  • Addressing miscarriages of justice
    Darroch Ball, Spokesperson for Justice New Zealand First is proud that a key Coalition Agreement commitment which will provide for a more transparent and effective criminal justice system has been realised. Legislation to establish the Criminal Cases Review Commission, an independent body focused on identifying and responding to possible miscarriages of ...
    4 days ago
  • Week That Was: Historic action on climate change
    "Today we have made a choice that will leave a legacy... I hope that means that future generations will see that we, in New Zealand, were on the right side of history." - Jacinda Ardern, Third Reading of the Zero Carbon Bill ...
    1 week ago
  • Tax-free deployments for Kiwi troops
    Darroch Ball, New Zealand First List MP A Member’s bill has been proposed that would provide income tax exemptions for all New Zealand Defence Force (NZDF) personnel while on operational deployment overseas. The Income Tax (Exemption for Salary or Wages of NZDF Members on Active Deployment) Amendment Bill proposed by New Zealand First ...
    1 week ago
  • A balanced Zero Carbon Bill passed
    Rt Hon Winston Peters, New Zealand First Leader New Zealand First is proud to have brought common sense to the Climate Change Response (Zero Carbon) Amendment Bill, which passed its final reading in Parliament today. Party Leader Rt Hon Winston Peters says months of hard work went into negotiating a balanced ...
    1 week ago
  • Paramedics’ status to be recognised
    Jenny Marcroft MP, Spokesperson for Health New Zealand First has listened to calls to recognise paramedics as registered health professionals under the Health Practitioners’ Competence Assurance Act (the Act). Today, the Coalition Government announced plans for paramedics to be registered as health practitioners under the Act, and the establishment of a ...
    2 weeks ago
  • Week That Was: 2,000 teachers in two years
    We began the week by commemorating the New Zealand Wars and celebrating a major increase in the number of teachers. Then, we were busy supporting offenders into work and getting our rail back on track after years of underinvestment. And that's just the start! ...
    2 weeks ago
  • Winning an election one conversation at a time
    In October I was sworn in as the Mayor of Lower Hutt. It’s the privilege of my life to serve Hutt people as their Mayor. There is something really special to be able to serve the community where I was raised, and where I live.   ...
    2 weeks ago
  • Closer cooperation with Korean horse racing industry
    Rt Hon Winston Peters, Deputy Prime Minister, Minister for Racing Racing Minister Winston Peters met with Korea Racing Authority Chairperson Nak Soon Kim in Seoul today to discuss closer cooperation between the New Zealand and Korean horse racing industries. As part of the visit to the Seoul Racecourse, Mr Peters witnessed ...
    3 weeks ago
  • Otago to lead digital creativity
    Hon Shane Jones, Minister for Regional Economic Development The Provincial Growth Fund (PGF) is investing $10 million to establish Otago as the centre of New Zealand’s creative digital industry over the next ten years, Regional Development Minister Shane Jones announced today. “The initiative will bring us closer to the vision of ...
    3 weeks ago
  • Young Otago students encouraged to take on forestry careers
    Hon Shane Jones, Minister for Regional Economic Development The Provincial Growth Fund (PGF)’s skills and employment programme will help young Otago people into long-term forestry careers, Regional Economic Development Minister Shane Jones announced today. Te Ara Mahi will invest $63,000 in the 2020 school year to support eight 17 and 18 ...
    3 weeks ago
  • PGF backing Dunedin’s waterfront ambitions
    Hon Shane Jones, Minister for Regional Economic Development The Provincial Growth Fund (PGF) will support local plans to revitalise and stimulate economic development opportunities in Otago, Regional Economic Development Minister Shane Jones has announced. The four Regional Economic Development Ministers have approved an in-principle investment of $19.9 million towards the region’s ...
    3 weeks ago
  • M. Bovis eradication progress welcomed
    Mark Patterson, Spokesperson for Primary Industries New Zealand First is pleased to have received the Technical Advisory Group (TAG) report on the Coalition Government’s Mycoplasma bovis eradication efforts, which shows significant progress in the fight against the disease. New Zealand First Spokesperson for Primary Industries, Mark Patterson, says the report’s findings ...
    3 weeks ago
  • PGF boosts Otago’s engineering and manufacturing sector
    Hon Shane Jones, Minister for Regional Economic Development Hon David Parker, Minister for Trade and Export Growth The Provincial Growth Fund (PGF) is investing to support economic growth opportunities for Otago’s engineering and manufacturing sectors, Regional Development Minister Shane Jones and Trade and Export Minister David Parker announced today. Almost $20 million ...
    3 weeks ago
  • Minister Peters discusses Pacific challenges and denuclearisation in Seoul
    Rt Hon Winston Peters, Deputy Prime Minister, Minister of Foreign Affairs Foreign Minister Winston Peters and his South Korean counterpart, Kang Kyung-wha, discussed in Seoul today opportunities to work more closely in the Pacific and the situation on the Korean Peninsula. Mr Peters and Minister Kang confirmed New Zealand and the ...
    3 weeks ago
  • PGF supports high speed broadband for marae at Parihaka Pa
    Hon Shane Jones, Minister for Regional Economic Development  Hon Nanaia Mahuta, Minister for Māori Development The three marae in the historic Parihaka Pa complex in Taranaki have been upgraded to high speed broadband with the support of the Provincial Growth Fund (PGF), Regional Economic Development Minister Shane Jones announced today. “Connecting the ...
    3 weeks ago
  • Advancing Pacific Partnerships 2019 launched
    Hon Ron Mark, Minister of Defence Minister of Defence Ron Mark will today launch the Advancing Pacific Partnerships 2019 Defence Assessment  during a speech at Te Papa.  The Assessment outlines how Defence will partner with our Pacific Island neighbours and invest in Pacific regional security architecture. The Plan aligns with the Coalition ...
    3 weeks ago
  • PGF funding could transform Gisborne company into “beacon of employment” in two years
    A new Provincial Growth Fund investment could create about 80 new jobs in Gisborne over the next two years, turning a local small business into a “beacon of employment” in the process. Regional Economic Development Parliamentary Under-Secretary Fletcher Tabuteau said the PGF’s Te Ara Mahi funding stream would provide $1.6m ...
    3 weeks ago

  • Fairer rules for tenants and landlords
    The Government has delivered on its promise to the over one million New Zealanders who now rent to make it fairer and more secure, Associate Minister of Housing (Public Housing) Kris Faafoi has announced today. Both renters and landlords will benefit from the suite of practical changes to the Residential ...
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    2 hours ago
  • Food industry asked to step up fight against obesity
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    BeehiveBy beehive.govt.nz
    1 day ago
  • Modern emergency care for Queenstown area
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    BeehiveBy beehive.govt.nz
    2 days ago
  • Contraception important for New Zealanders
    Associate Health Minister Julie Anne Genter says today’s release of sexual and reproductive health data reinforces the significance of the Government’s commitment to providing free or very low-cost contraception. The Ministry of Health today published statistics from the Ministry of Health’s 2014/15 Health Survey. “It is important people can make ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • NZ medical staff and measles vaccines going to Samoa
    Foreign Minister Winston Peters has announced that at the request of the Samoan Government, New Zealand will be providing further support to Samoa as it faces a worsening measles outbreak. “In response to a request from the people of Samoa, New Zealand is providing 3000 measles, mumps and rubella (MMR) ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Disability Action Plan 2019 – 2023
    “The new Disability Action Plan 2019–2023 moves us towards the inclusive and accessible New Zealand that this government has committed to,” Minister for Disability Issues Carmel Sepuloni announced today.  “The Action Plan was designed by disabled people, their family and supporters, the disability sector and government agencies. It will ensure ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Joint Statement – Third Singapore-New Zealand Defence Ministers’ Meeting
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Sexual Violence Legislation Bill has its first reading
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Streamlined business invoicing a step closer
    Streamlined payment practices are a step closer for Kiwi businesses with the formal launch of New Zealand’s e-Invoicing framework. Small Business Minister Stuart Nash says the government has now established the structure to enable automated and direct data exchange between the accounting systems of buyers and sellers. “The move to ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • More frontline biosecurity officers protecting NZ
    Another 51 quarantine officers and four new biosecurity detector dog teams will help protect New Zealand from invasive pests and diseases this summer, says Biosecurity Minister Damien O’Connor. “The Government is delivering on its commitment to strengthen New Zealand’s biosecurity system and support our valuable primary sector “New Zealand’s flora, fauna ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ space economy worth $1.69 billion
    A new report has found New Zealand’s space sector contributed $1.69 billion to the economy in the last financial year and employs 12,000 people, Minister for Economic Development Phil Twyford announced today. The report by Deloitte was commissioned by the Ministry of Business, Innovation and Employment and shows New Zealand ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Chair for Royal Commission into Abuse
    Judge Coral Shaw has been appointed as the new Chair of the Royal Commission into Historical Abuse in State Care and in the Care of Faith-based Institutions, Internal Affairs Minister Tracey Martin announced today. "Judge Shaw, who is currently one of the inquiry commissioners, is extremely well qualified for the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Better mental health facilities for Palmerston North
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    BeehiveBy beehive.govt.nz
    3 days ago
  • Bowel Screening hits halfway point
    The roll out of the National Bowel Screening Programme has reached the halfway mark, with 10 out of 20 District Health Boards now part of the programme. MidCentral DHB, which covers Palmerston North, Manawatu and surrounding districts, this week became the latest to DHB to offer free bowel screening to ...
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    3 days ago
  • More vaccines for meningococcal disease
    The Government welcomes PHARMAC’s decision to fund a vaccine to protect young people from meningococcal disease from 1 December this year. “Meningococcal disease is a serious threat which people at higher risk should be protected from,” says Associate Health Minister Julie Anne Genter. “The combined pharmaceutical budget was increased by ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Fisheries innovation projects supported
    Groups involved with innovative fisheries research projects are encouraged to apply for government support in the latest funding round from the Sustainable Food and Fibre Futures programme. Fisheries Minister Stuart Nash says the SFF Futures funding is designed to be flexible enough to support small or large projects across a ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government fixes culturally arranged marriage visa issue
    The Government has fixed an issue affecting how Immigration New Zealand has processed visa applications for culturally arranged marriages, which will now see a consistent process applied which ensures people with legitimate arranged marriages can visit New Zealand while also preventing any rorting of the system. Earlier this year Immigration ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Extension for Royal Commission into Mosque attacks
    The Royal Commission into the Attacks on Christchurch Mosques will report back on 30 April 2020 to give it more time to hear submissions and consider information, Internal Affairs Minister Tracey Martin announced today. The Royal Commission was originally scheduled to report back to Government by 10 December 2019. “There has ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Terrorism and Trade on agenda as Foreign Minister visits the United States
    Foreign Minister Winston Peters will travel to Washington DC today to attend a ministerial meeting focused on defeating ISIS, and to continue pursuing New Zealand’s trade opportunities. Mr Peters will participate in a meeting of Foreign and Defence Ministers from key countries contributing to the Global Coalition to Defeat ISIS. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Hoiho get extra support alongside 168 community conservation groups backing nature
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    4 days ago
  • New safety measures for modified pistols
    Controls on assault rifles and semi-automatic firearms are to be broadened to include some types of pistols, under changes to a bill currently making its way through Parliament. Police Minister Stuart Nash has tabled a Supplementary Order Paper to the Arms Legislation Bill, which is currently before a Select Committee ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister of Defence to visit Singapore and Thailand
    Minister of Defence Ron Mark will travel to Singapore today to conduct a counterpart visit and to co-chair the third annual Singapore-New Zealand Defence Ministers’ Meeting with his counterpart, Minister for Defence Dr Ng Eng Hen. “Singapore is one of our most important defence partners in the region, and our ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Future secured for Salisbury School
    Nelson’s Salisbury School is to be rebuilt, creating a modern and suitable learning environment for students at the residential special school, Education Minister Chris Hipkins and Associate Education Minister Tracey Martin announced today. The school for girls aged 8-15, in Richmond, was earmarked for closure by National until the process ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Resource management reform options released
    The panel undertaking a comprehensive review of the Resource Management Act has identified the main issues to be addressed and options for reform and is calling for feedback to inform its final report.  In July the Government announced the comprehensive review of the resource management system, including the RMA - ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Criminal Cases Review Commission established
    An important safety valve has been added to New Zealand’s criminal justice system with the third reading of the Criminal Cases Review Commission Bill today. The Criminal Cases Review Commission (CCRC) will investigate claimed miscarriages of justice. “We’ve seen how our justice system can very occasionally get things spectacularly wrong, ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Racing Industry destined to be on-track
    Racing Minister Winston Peters welcomes the tabling of the Racing Industry Transition Agency (RITA) 2019 Annual Report in Parliament today. He says the 2019 Annual Report marks the point when New Zealand’s racing industry’s decline was arrested and a turnaround started. RITA’s 2019 Annual Report recorded an industry net profit ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New Zealand firefighter support to Queensland
    The New Zealand Government is today sending 21 firefighters to help fight the ongoing catastrophic Australian bushfires. “The fires in Australia are in some of the toughest, most challenging conditions ever,” says Internal Affairs Minister Tracey Martin.  “As of yesterday morning, there were 100 active bushfire-related incidents across Queensland and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Supporting all schools to succeed
      More frontline support for schools through a new education agency, as part of a redesigned Ministry of Education More support for principals and school boards including through a new centre of leadership and local leadership advisor roles New independent disputes panels for parents and students Management of school property ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Reform to support better outcomes for Māori learners and whānau
    The Government’s reform of the Tomorrow’s Schools system is a watershed moment in education and an opportunity to create meaningful change for ākonga Māori and their whānau, Associate Education Minister Kelvin Davis said today. “Last year through Kōrero Mātauranga | Education Conversation, Māori teachers, parents, ākonga, whānau, hapū and iwi ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Infrastructure pipeline growing
    Infrastructure Minister is welcoming the first of many updated project pipelines from the newly established New Zealand Infrastructure Commission today. The New Zealand Infrastructure Commission, Te Waihanga, has released an expanded pipeline of major capital projects – another crucial step towards delivering better infrastructure outcomes. “The first iteration of the ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Tighter firearms law to further improve safety
    Tougher gun laws designed to improve public safety through firearms prohibition orders are proposed in a new document released for public input. Police Minister Stuart Nash says firearms prohibition orders (FPOs) would give new powers to Police to ensure high-risk individuals come nowhere near firearms. “We have already prohibited the ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • New TVNZ chair & directors confirmed
    Andy Coupe has been confirmed as TVNZ’s new Board Chair. “Mr Coupe has strong commercial and capital markets experience and TVNZ has benefited from his technical knowledge of business and finance, as well as his extensive governance experience,” the Minister of Broadcasting, Communications and Digital Media Kris Faafoi said.  Andy ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Hutt Road cycle path officially opened
    Associate Minister of Transport Julie Anne Genter today officially opened a separated pathway, following the completion of the Kaiwharawhara Stream bridge, which will improve safety for cyclists and pedestrians along Hutt Road.  The $6.8m Hutt Road project provides a separated path for cycling and pedestrians, the replacement of informal parking ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Announcement of new Ambassador to Russia
    Foreign Affairs Minister Winston Peters today announced the appointment of career diplomat Si’alei van Toor as New Zealand’s next Ambassador to Russia. “I’m pleased to appoint Ms van Toor to this position. She brings a wealth of experience to the role having previously served as Senior Trade Adviser to the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Half Year Economic and Fiscal Update
    The Treasury’s 2019 Half Year Economic and Fiscal Update (HYEFU) will be released on Wednesday December 11, Finance Minister Grant Robertson says. The Coalition Government will publish the 2020 Budget Policy Statement at the same time, outlining the priorities for Budget 2020. Further details on arrangements for the release will ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Giving a Boost to Kiwi small businesses
    A new initiative to better support small businesses through hands-on mentoring and advice has been launched by the Minister for Small Business. The first event in the Kiwi Business Boost series of regional workshops and online tools has been launched in Wairoa by Stuart Nash. “The Business Boost initiative combines ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Nearly three quarters of Rolleston connected to UFB
    The latest Quarterly Connectivity Report shows that more and more New Zealanders are moving to Ultra-fast Broadband (UFB), with Rolleston having the highest uptake at 74 per cent, as at the end of September. “This means that nearly three quarters of Rolleston’s households and businesses have moved to ultra-fast services. ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Historic day for landmark climate change legislation in New Zealand
    The passing of the Climate Change Response (Zero Carbon) Amendment Bill will help ensure a safe planet for our kids and grandkids, the Minister for Climate Change James Shaw said today. The landmark legislation which provides a framework to support New Zealanders to prepare for, and adapt to, the effects ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Release of Oranga Tamariki Practice Review
    The review of Oranga Tamariki practice around the planned uplift of a Hastings baby in May shows significant failings by the Ministry and that the planned and funded changes to shift from a child crisis service to a proper care and protection service need to be accelerated, Children’s Minister Tracey ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Minister wishes students success in exams
    Education Minister Chris Hipkins has wished students the best of luck for this year’s NCEA and New Zealand Scholarship exams which start tomorrow. Around 140,000 students will have participated in 119 NCEA and New Zealand Scholarship exams by the end of the exam period on 3 December. “I want to ...
    BeehiveBy beehive.govt.nz
    1 week ago