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Zero is a cut

Written By: - Date published: 9:30 am, March 25th, 2011 - 24 comments
Categories: budget 2011 - Tags:

As we brace for this year’s budget it’s important to remember that no change is a cut. A dollar today buys nearly 5% less than it did a year ago and there are 1% more New Zealanders.

Not every piece of government spending is affected by domestic inflation or population growth but the bulk of it is. And that means that no nominal change in funding is a 6% cut.

Even Bill English has admitted as much, in response to questioning from Russel Norman:

Dr RUSSEL NORMAN (Co-Leader—Green) to the Minister of Finance: Does he agree that due to inflation, no new spending in the upcoming Budget is the equivalent of a cut in real terms?

Hon BILL ENGLISH (Minister of Finance) : It depends on which part of the Budget—and I am not trying to be clever about it. Some services will continue to get somewhere near an inflation adjustment, such as health and education. Inflation adjustments will continue to be made to income support programmes such as superannuation and benefits, which are very large components of the Government’s annual Budget. There will be services that will have no increase in spending, and that means they will be cut in real terms. We have a strong expectation that everyone supplying public services needs to focus on providing more services for less money, and that is not a new message.

This is the most subtle and insidious way that the Right can undermine public services, by letting inflation and population growth do the work for them. Even when it comes to health and education, the Nats can say ‘we’ve spent more than ever before’ but if that increase doesn’t match inflation and demographic needs, it’s a cut.

24 comments on “Zero is a cut”

  1. Lanthanide 1

    Wow, a very straightforward answer from Bill. I wonder why.

    He didn’t even drop in the usual attack on Labour, or claim that an aggressive recovery would make everything better again and not to worry out little heads about it.

  2. PeteG 2

    This sort of creepage is common – under Cullen it happened for nearly nine years, where no changes meant many people paid more income tax, year after year, as they crept up the brackets.

    But that doesn’t really affect the current argument – should we keep spending more and borrowing even more?

    • Bright Red 2.1

      false dichotomy. the spending could be funded by reserving tax cuts for the rich and subisdies for polluters.

    • Colonial Viper 2.2

      But that doesn’t really affect the current argument – should we keep spending more and borrowing even more?

      Government spending is the only thing keeping the economy going and stopping aggregate demand from dropping like a rock, since the private sector refuses to lift its game.

    • ianmac 2.3

      As a non-economist I thought that the famous “block of cheese cut” that Dr Cullen proposed then didn’t enact, was to counter the creep or is that fiscal drag. He decided that the cost/benefit was not worth it knowing that the then opposition would make capital out of it. (There. I used some economist speak!)

      • Herodotus 2.3.1

        The block of cheese was to be made every 3 years- based on the 3 years previous inflation figures – so we were still going backwards, wait 3 years to regain what was lost in our spending power. It did not take into account the initial years of the Lab govt. And people ask why Lab lost touch with the public. It was and still is damn hard to keep bread on the table. Just look at our current account deficit, we borrow to keep the masses: clothed, housed, fed and educated.
        It was tokenism at its lowest level.

        • Peter 2.3.1.1

          Every day you go to work your dollar is worth less. I’ll vote for the political party that can increase Real Income. Do you know any?

    • lprent 2.4

      Now that is begging the question.

      Or should we raise government revenues to ensure that we can borrow less (and pay less interest ofer the long term, which is the kicker with debt)?

      It is quite clear that the tax cuts over the last few years were unaffordable when we are in one of the cyclic recessions that happen too frequently to ignore. There aren’t enough cuts politically available to more than dent the fiscal debt situation.

      Or should we live in hope (as the government is at present) that the economy has a aggressive recovery? Something that shows absolutely no signs of happening to increase government revenues (ie the faith based argument).

      Or should we sell assets to reduce government debt in the short term, while making sure that the overall costs to the economy rise in the long term?

      I’m sure that there are many other alternatives that I haven’t covered. But your simplistic attempt to constrain the debate is so characteristically predictable… It is like watching a caricature you’d expect to see in a cartoon..

    • Lanthanide 2.5

      ianmac mentioned this at 2.3 although got the slogan wrong, and I want to really highlight it further.

      In 2005, Cullen proposed to index the tax thresholds to inflation. Initially, due to low inflation, this would not have made a big difference to after-tax income. As such, the National opposition called it the “chewing gum tax cut” and went apeshit over it. The media glommed it all up. Eventually Cullen scrapped it.

      Since we’ve just gone through several years of quite high inflation, I think that had Cullen enacted that threshold indexing, the bands would probably be a bit different than now. It seems highly likely the top band would be higher than $70k that National considers people to become ‘rich’ at (Under Labour it would be $75k right now, and $80k come 1st April 2011), although the middle band at $48k is probably about what it would’ve ended up at under Cullen’s deal.

      Anyone care to calculate what the thresholds would now be had that policy gone through? Marty? I’d do it myself but have no idea where to get inflation data from and not 100% sure I’d get it right.

      • Draco T Bastard 2.5.1

        Inflation Calculator would probably be a good place to start.

      • Herodotus 2.5.2

        As the adjustments were to be made every 3 years, we would have only expereinced 1 adjustsment so far in 2008, with anther adjusment this year and then there were new taxes to take this “gift” away from us.
        http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10368511
        “The move was derided as the “chewing gum” budget as it would have given many people just 67 cents a week more take home pay.
        Dr Cullen told MPs that the axed carbon tax had been tagged to fund the drop in revenue caused by raising the thresholds at which people moved into higher tax brackets. ”
        So it was not even intended to be a cut it was all smoke and mirrows. So Lanth we would all ghave been the poorer for it.

  3. ianmac 3

    Bill English also conceded that since all the Statistics NZ figures were not in because of the Earthquake damage, there could be a negative final growth figure. But he said, that was not important to look into the past (except to blame Labour for 9 long years…..) as we must look forward to improvement that is on the way.
    As Marty has shown, for we peasants things cost heaps more, and my neighbours and I hold Key and English to fix it like they promised!

    • PeteG 3.1

      The best thing we peasants can do if things are costing heaps more is to address our own budgets, sitting around expecting the government of the day to fix things for us is doomed to disappointment. We can’t always rely on a lolly scramble around election time, if that always happened the country would go broke. Hang on….

      • Bright Red 3.1.1

        I remember a few years back when the righties were complaining about Labour runnning huge surpluses and demanding more lollies by way of tax cuts, which National duly gave them with borrowed money.

      • M 3.1.2

        PeteG

        I don’t know what planet you inhabit but as one of those said peasants I can’t trim my costs anymore. Don’t know about you but eating and being clean rates pretty high on my list, and no, I don’t take five showers a day but try to be careful with energy as I’m a peaknik. I make most meals from scratch and food waste is kept to a minimum. I usually have celery in my garden as the price of it is outrageous and I can use this to make stock if there happens to be a chicken carcass from a roast meal.

        I do not expect a lolly scramble but I do expect to be able to get by without thinking what the hell am I going to do if my washing machine breaks down.

        The reason the country is going broke is because John Key and his coterie voted themselves a massive lolly scramble and managed to manufacture a financial crisis so that selling off assets would seem to be the sane and sensible choice.

        You might like to toady to this mob and be ready to swallow their crap but most aren’t or are getting to the stage where they aren’t willing to believe the crap NACT spout anymore.

  4. RedLogix 4

    Came home last night and announced to ‘her indoors’ that I was sick of working to support the family and I was going to quit. We could just go to the bank and live off borrowed money.

    When she went all peculiar on me I tried explaining that “well that’s how the govt is doing it, so why can’t we?”.

    For some reason this didn’t help.

    • ianmac 4.1

      Clever Red Logix. Yet Bill English keeps on explaining that he is just doing what a prudent housekeeper would do. Say what?

  5. sean14 5

    Marty – 4 days ago it was Slash and Burn, now it’s Zero is a Cut. What’s changed?

    • lprent 5.1

      It is the same thing – did you only read the title?

      Perhaps you should actually read the article. Come back and ask if you find any concepts that are too hard for you to understand. But please check with wikipedia first. You’ll find that the explanations for ‘inflation’ and ‘population growth’ are both in there

      • sean14 5.1.1

        The first paragraph of the Slash and Burn post talks about “Cuts of up to 32%”. That’s hardly the same as failing to compensate for inflation (unless the economy is in much, much worse shape than we are being led to believe).

        • lprent 5.1.1.1

          There are both.

          From what Bill English has been saying (you can find the links in the posts), some budget items are going to get severe cuts. Others like education and health are going to get increases, but increases that are less than or at best equal to the the inflation rate (in the latter case not increasing to cope with population increases is also a cut). There will be a range in between those points.

          It looks like all existing programs are going to get an effective cut in real terms on a per capita basis.

          The economy is actually in pretty bad shape. Not because particularly because of the business levels, which appear to have stopped dropping. It is because the governments revenues are not covering its expenditures. Basically the drop in company profits and the reduced numbers of people in work have markedly reduced the government revenue, while at the same time paying for all of those extra long-term unemployed has massively increased expenditure. And that was before the cost of the quakes is counted in.

          This is something that was completely predictable from when the tax cuts went through. Labour’s tax cuts would have been bad enough (and I disagreed with them) but at least they were spread over almost everyone including most of the people who are now unemployed. Nationals tax cuts were idiotic because they reduced the tax take from those who are still working in the recession.

          And you notice that the tax cuts haven’t particularly helped with a “aggressive recovery”? It was a silly idea more rooted in blind optimism than any rationale. Cutting costs in the governments expenditure is what NAct is now doing – the problem with that is that it will further depress the internal economy and further entrench and increase long term unemployment- just as it did in the early 90’s. That just delays any recovery for quite some time and uses debt to pay for the current ‘living’ expenses.

          Basically what NAct should have been doing is to reverse tax cuts (as being a silly error of judgement on their part) to a more sustainable revenue position. Then they’d be able to use their ability to raise debt into increasing the infrastructural projects now that we need to grow when a recovery takes place. It’d employ more people and prevent the issues that come from long-term unemployment slowing down any recovery.

  6. HC 6

    To put all this in very simple words: All low income earners, the beneficiaries and a larger and growing share of the so-called “middle class” are now going to be asked to pay even more for the tax cuts that only benefitted the truly high income earners!

    I think that Bill English was rather sombre about all this, because he senses that the voters could within coming months realise that they have been “done” by this government. Only the strongest supporters of National and ACT (the upper 5 % of income earners and asset owners) have benefitted from the tax cuts, while others have not seen any improvement or even seen a substantial worsening of their circumstances. The majority of voters may actually wake up at last and vote this crowd out. That is what Bill English, John Key and consorts are worried about most!

    Now I am really looking forward to being work-tested as a sickness beneficiary from May 2011 onwards! Having been on an invalid’s benefit for good reasons and then been put onto the sickness benefit due to apparently biased and totally unreasonable decisions by WINZ paid designated doctors and a similarly “un-independent” Medical Appeal Board, I will as a sick person have to compete with all the other well qualified and desperate people for probably just a part time job.

    That will do my health a hell of a good, will it not?

    This government has NO answers, NO plans, NO future direction, NO brains, NO sense of fairness, NO respect for the worse off and NO sympathy for those very much at the bottom end of the food trough.

    Sadly the Labour Party is lacking in direction, in serious determination and in honesty to really present a feasible alternative. I see a weak Phil Goff, a pathetically uneffective Annette King and many young upstarters that are still green behind their ears.

    Again voters will be faced with a choice between lesser evils. NZ politics is in a very, very dismal state of affairs. My vote will go to a more honest small party, and that is the only hope many of us have now.

    • ZeeBop 6.1

      I’m surprised oil prices are only $100 a barrel. And now Nuclear is in doubt, seen now rightly as prohibitively expensive when the cancer costs, risks are added in. Can you imagine that, oil $200 and all those foreign rugby fans having stayed at home, just as National go to the polls with having done nothing but hold back progress.

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    SciBlogsBy Public Health Expert
    1 week ago
  • One way to solve the housing crisis
    How much homelessness is caused by house hoarding? We're about to find out. The pandemic has destroyed tourism, which means that house hoarders who put their hoarded properties up as short-term tourist rentals are now offering them on the ordinary rental market:Property investors are pulling properties from Airbnb to offer ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • The pros and cons of planting trees to address global warming
    This is a re-post from Yale Climate Connections by Bruce Lieberman It seems like such a simple, straightforward, empowering idea: plant trees – a lot of trees – all over the world, and watch the planet’s temperature fall. Who doesn’t love a tree or two, even far more – the right ...
    1 week ago
  • Not a grand coalition, but a government of national salvation
    According to Newshub, Simon Bridges is open to joining a “grand coalition” with Labour as we hunker down to go into a month long lockdown. The idea is sound. Before now, the role of the opposition was to scrutinise and oppose. In the context of what almost amounts to a ...
    PunditBy Liam Hehir
    1 week ago
  • Raise the Bar: hospitality workers & wage subsidy entitlements
    Kia ora my name is Chloe Ann-King* and I am the founder of Raise the Bar, a campaign and non-profit that gives free legal aid, advocacy and tautoko to hospitality workers in Aotearoa. Right now all over our country hospo workers are being fired at will, having shifts cut or ...
    PosseBy chloeanneking
    1 week ago
  • Lifting our game against COVID-19
    We need to be lifting our game against COVID-19. You and I need to help those working to prevent the spread of COVID-19 while they’re trying to lift the testing and treatment efforts. We don’t want to be playing this game running backwards. Best to play it solidly forward, from ...
    SciBlogsBy Grant Jacobs
    1 week ago
  • The maths and ethics of minimising COVID-19 deaths in NZ
    Prof Tony Blakely, Prof Michael Baker, and Prof Nick Wilson The NZ Government must do more to clearly articulate its COVID-19 strategy: eradication or ‘flattening the curve’ mitigation. But to do so means understanding the maths and ethics of both these strategies. In this blog, we adapt our work for ...
    SciBlogsBy Public Health Expert
    1 week ago
  • All aboard the Covid Train
    A few days ago I was starting to write something about the pandemic, which now seems unconscionable. It took the form of a letter to an agony aunt:“Dear Deidre, I have an ugly confession. I am quite excited by Covid-19.”This is how the piece went:“I’m not a psychopath, honest. Although the ...
    PunditBy Phil Vine
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming Digest #12
    Story of the Week... Toon of the Week... Climate Feedback Article Review... Coming Soon on SkS... Climate Feedback Claim Reviews... SkS Week in Review... Poster of the Week... Story of the Week... In Just 10 Years, Warming Has Increased the Odds of Disasters The likelihood of extreme events ...
    1 week ago
  • We are all socialists now
    Last week, the government announced a $12 billion initial package to support people during the pandemic. Today, the Reserve Bank is buying government bonds - effectively printing money - to keep up the money supply during the crisis. Normally such moves would have the right apoplectic. Instead, the National Party ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • A plea to experts: safeguard your role in public life
    I am a pundit, somebody who opines and comments on the news. There are no real qualifications to punditry though having a rudimentary way with words and good general knowledge helps. That is one reason there is a constant oversupply of would-be pundits and why it is quite hard to ...
    PunditBy Liam Hehir
    1 week ago
  • Enlightenment when?
    I recently encountered the following prescription from a Faculty of Education at a leading New Zealand University. At first I wondered if it was another product of the postmodern generator (http://www.elsewhere.org/journal/pomo/), designed to create gibberish in the postmodern form, but I’m told it is real: The “schooled” society: Towards the ...
    SciBlogsBy Michael Corballis
    1 week ago
  • What the Crisis Can teach Us
    The coronavirus pandemic has of course had a major impact on individual lives and on societies as a whole. But, long after the crisis has passed (assuming it does), we will begin to realise that its real and lasting significance lies in the lessons it has taught us, if only ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • Hammering home measures to stop COVID-19
    COVID-19 has plunged Aotearoa New Zealand (indeed, the world) into territory that, while maybe not totally unprecedented, certainly hasn’t been seen during the lifetimes of most of us here today. Our borders are closed to non-citizens, we’re being told not to gather in groups of more than 500 outside/100 inside, ...
    PunditBy Andrew Geddis
    1 week ago
  • What does ‘level two’ mean – and why does it matter?
    For the last few weeks, I’ve been urging you to prepare yourself, your family, business, and community for Covid-19. Now it’s time for real action.  Yesterday the director-general of health Dr Ashley Bloomfield announced another 13 confirmed cases of Covid-19 in New Zealand, bringing our total to date to 52. ...
    SciBlogsBy Siouxsie Wiles
    1 week ago
  • 2020 SkS Weekly Climate Change & Global Warming News Roundup #12
    A chronological listing of news articles linked to on the Skeptical Science Facebook Page during the past week, i.e., Sun, Mar 15, 2020 through Sat, Mar 21, 2020 Editor's Pick Now Isn’t the Time to Forget About Our Climate Change Efforts   Tasha Tilberg, Lindsey Wixson, and Liu Wen photographed ...
    1 week ago
  • Is the Guardian becoming  a real newspaper again?
    by Jan Rivers The article has been corrected to show that it was Ewen MacAskill, former Guardian journalist and not Luke Harding who travelled to meet Edward Snowden with journalist Glenn Greenwald and filmmaker Laura Poitras.  Some of the Guardian’s well-known journalists who did not sign the protest letter are ...
    RedlineBy Daphna
    2 weeks ago
  • Life asserts itself regardless
    by Cultural Worker Late March 2020 amidst the virus. With gigs crashing and burning all around it was without much hope that I called a long standing rest home booking: “ Hi, I’m supposed to be entertaining at your place this afternoon – is it still on?” “”If you don’t ...
    RedlineBy Daphna
    2 weeks ago
  • Politics, the possible, and the pandemic
    Whenever people demand real change from their politicians, we're told that "politics is the art of the possible". The implication is that change isn't possible, so we'd better just get used to the sucky status quo. But now that there's a pandemic, a lot of things we were previously told ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • The Only Way Through This Crisis Is Together.
    Together: In leading New Zealand through the Covid-19 Pandemic, the Prime Minister could do a lot worse than allow herself to be guided by the spirit of collective sacrifice and co-operation that animated the New Zealanders of 80 years ago. Most Kiwis alive today have had no opportunity to prove their ...
    2 weeks ago
  • GFC vs Covid-19
    It is said that generals fight the last war. In the case of the early stages of the Global Financial Crisis (GFC) they had learned from the Great Depression of the 1930s and they fought intelligently and successfully. Later their advice would be ignored in favour of the Austerians who ...
    PunditBy Brian Easton
    2 weeks ago
  • Nobody Left Behind.
    Solidarity Forever: All over the world, the arrival of the Covid-19 virus has exposed the fragility of the walls we erect around ourselves and our loved ones. It has shattered our illusions of autonomy and revealed to us how utterly dependent we all are on other human-beings. Finally, we see ...
    2 weeks ago
  • Rebuilding a truly “Democratic” counter, or a “moderate Republican” bolt-hol...
    Looking across the various arguments for/against the leading candidates to take the Democratic Nomination, you might honestly be very hard pressed to tell. There are a number of things that have now started happening since Amy Klobuchar and “Mayor Pete” Buttigieg both threw the towel in and immediately (and ...
    exhALANtBy exhalantblog
    2 weeks ago
  • Abortion law reform a win for women
    by Daphna Whitmore Abortion is no longer in the Crimes Act in New Zealand. The law reform passed yesterday and now abortion is a medical matter between a woman and her doctor. Many women’s groups and progressive people have campaigned for reform for decades. The women’s liberation movement and some ...
    RedlineBy Daphna
    2 weeks ago
  • How to spot bogus science stories and read the news like a scientist
    Doug Specht, University of Westminster and Julio Gimenez, University of Westminster When fake news, misreporting and alternative facts are everywhere, reading the news can be a challenge. Not only is there plenty of misinformation about the coronavirus pandemic, climate change and other scientific topics floating around social media, you also ...
    SciBlogsBy Guest Author
    2 weeks ago
  • Why New Zealand needs to continue decisive action to contain coronavirus
    Michael Baker, University of Otago and Nick Wilson, University of Otago With some of the toughest border restrictions and a newly-announced NZ$500 million boost to health services, New Zealand is among a small number of countries with a strategy to contain the COVID-19 pandemic. New Zealand is also fortunate in ...
    SciBlogsBy Public Health Expert
    2 weeks ago
  • Parliament and the pandemic II
    As expected, the government has introduced a sessional order to allow Parliament to operate during the pandemic. You can read it on the Order Paper here, but the short version is that questions and motions can be filed electronicly, select committees can work remotely, and the the Business Committee can ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • When a virus goes viral: pros and cons to the coronavirus spread on social media
    Axel Bruns, Queensland University of Technology; Daniel Angus, Queensland University of Technology; Timothy Graham, Queensland University of Technology, and Tobias R. Keller, Queensland University of Technology News and views about coronavirus has spread via social media in a way that no health emergency has done before. Platforms like Twitter, Facebook, ...
    SciBlogsBy Guest Author
    2 weeks ago

  • Government seeks infrastructure projects
    The Government has tasked a group of industry leaders to seek out infrastructure projects that are ready to start as soon as the construction industry returns to normal to reduce the economic impact of the COVID-19 pandemic, Economic Development Minister Phil Twyford and Infrastructure Minister Shane Jones say. The Infrastructure ...
    BeehiveBy beehive.govt.nz
    8 hours ago
  • Essential media COVID-19 guidelines refined
    The Government is refining its COVID-19 essential business guidance to include the distribution of news publications for communities which are hard to reach. The Minister of Broadcasting, Communications and Digital Media, Kris Faafoi, said the move was in recognition of the importance for New Zealanders who might be harder to ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • New Zealand defence personnel conclude mission at Taji
    Following the successful conclusion of the Building Partner Capacity (BPC) mission at Taji, New Zealand defence personnel are returning to New Zealand from Iraq, in accordance with the Cabinet decision made in June 2019, Foreign Affairs Minister Winston Peters and Defence Minister Ron Mark announced today. “New Zealand is very ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • State of National Emergency extended
    The State of National Emergency to help stop the spread of COVID-19 has been extended for a further seven days, Minister of Civil Defence Peeni Henare said. The initial declaration on March 25 lasted seven days and can be extended as many times as necessary. “Since we went into isolation ...
    BeehiveBy beehive.govt.nz
    14 hours ago
  • Strong Govt books support ‘go hard, go early’ response
    New Zealand’s ability to go hard and go early in the fight against COVID-19 has been underpinned by strong Government finances and the growing economy heading into this global pandemic, Finance Minister Grant Robertson says. The Treasury today released the Crown financial statements for the eight months to the end ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Christchurch Hospital Hagley ICU to open to support COVID-19 response
    Health Minister Dr David Clark says 36 new intensive care beds at Christchurch Hospital’s new Hagley building are being fast tracked so they are available for treatment of COVID-19 patients.   The Ministry of Health is working with contractor CPB and Canterbury DHB to enable access to the hospital’s ICU, ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Government supports Air NZ freight flights
    The Government has fast-tracked up to $1 million to help Air New Zealand move urgent freight to and from New Zealand, with the first flight to Shanghai leaving tonight, Transport Minister Phil Twyford announced today. Phil Twyford says it’s crucial that trade in vital goods such as medical supplies and ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Tariff concessions on COVID-19 related products
    New Zealand will temporarily remove tariffs on all medical and hygiene imports needed for the COVID-19 response. Trade and Export Growth Minister David Parker and Commerce and Consumer Affairs Minister Kris Faafoi said today that the New Zealand Customs Service will apply tariff concessions to all diagnostic reagents and testing ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Clarification of modification to wage subsidy scheme
    Minister of Finance Grant Robertson has clarified that the changes to the wage subsidy scheme announced yesterday mean that employers should be passing on the full subsidy to workers, except in the case where the person’s normal income is less than the level of the subsidy. “We still want employers ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Face masks flowing to DHBs
    Medical face masks from the national reserve supply are now being distributed to District Health Boards, while at the same time local production is being ramped up. Yesterday more than 640,000 masks were sent to DHBS – that is an immediate two week supply, with more to follow in coming ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19: Further steps to protect New Zealanders’ jobs
    The Government has made modifications to the wage subsidy scheme to ensure people don’t lose their jobs during the national lockdown. These changes will soften the impact of COVID-19 on workers, families and businesses, and position them to exit the lockdown and look to recovery, Finance Minister Grant Robertson says. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Tax relief for Mycoplasma Bovis farmers
    Farmers whose herds were culled in response to the outbreak of Mycoplasma bovis will be able to minimise the tax treatment of their income in some circumstances. Revenue Minister Stuart Nash says Cabinet has agreed to change the law. It means farmers may be eligible to spread their income over ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • $27 million for NGOs and community groups to continue providing essential services
    A $27 million dollar package, effective immediately, is being provided to social sector services and community groups to ensure they can continue to provide essential support to communities as we stay at home as a nation to stop the spread of COVID-19, Minister for Social Development Carmel Sepuloni announced. “At ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Statement on guilty plea of March 15 terrorist
    “The guilty plea today will provide some relief to the many people whose lives were shattered by what happened on March 15,” Prime Minister Jacinda Ardern said. “These guilty pleas and conviction bring accountability for what happened and also save the families who lost loved ones, those who were injured, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • COVID-19 updates
    The Prime Minister is holding daily press conferences to update New Zealanders on the Government's response to COVID-19. Links to videos and transcripts of these updates below. These transcripts also include All of Government press conferences led by Director Ministry of Health's Director-General of Health Dr Ashley Bloomfield. 25 March: Live update from the Prime ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Police numbers break through 10,000 mark
    Frontline Police numbers have broken through the 10,000 mark for the first time in history as officers step forward to keep the community safe during the COVID19 lockdown. “Two Police graduations in Auckland and Wellington in the past week have been conducted in unprecedented circumstances,” Police Minister Stuart Nash said. ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Urgent tax measures for economic recovery
    Urgent legislation has been passed to support the package of economic and social measures needed to recover from the impact of the coronavirus outbreak. “The COVID-19 Response (Taxation and Social Assistance Urgent Measures) Bill will cushion New Zealanders from the worst economic impacts of the COVID-19 outbreak,” said Revenue Minister ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Further support for farmers and growers as drought persists
    From tomorrow, Government support for farmers and growers affected by drought will be expanded and extended across the country, with access to Rural Assistance Payments (RAPS) available throughout the North Island, parts of the South Island and the Chatham Islands, Social Development Minister Carmel Sepuloni announced. “These challenging conditions have ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • COVID-19: Temporary changes to Education Act
    Parliament has passed amendments to legislation that give the Secretary of Education stronger powers to act in the fight to limit the spread of COVID-19, Education Minister Chris Hipkins said today. “They are part of a suite of changes passed under the COVID-19 Response (Urgent Management Measures) Legislation Bill,” Chris ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Canada, Australia, Chile, Brunei and Myanmar join NZ and Singapore in committing to keeping supply a...
    Canada, Australia, Chile, Brunei and Myanmar have joined forces with New Zealand and Singapore by committing to keep supply chains open and remove any existing trade restrictive measures on essential goods, especially medical supplies, in the face of the Covid-19 crisis.  Trade and Export Growth Minister David Parker today welcomed ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • COVID-19: Rent increase freeze and more protection for tenants
    Immediate freeze on rent increases Tenancies will not be terminated during the lock-down period, unless the parties agree, or in limited circumstances Tenants who had previously given notice can stay in their if they need to stay in the tenancy during the lock-down period Tenants will still be able to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Working together to protect businesses and workers
    As New Zealand unites to lock-down in the fight against COVID-19, the Finance Minister is urging all businesses and workers to stay connected over the next four weeks. “We understand the extreme pressure many businesses are under right now. I know most business owners think of their workers as family ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • State of National Emergency declared to fight COVID-19
    A State of National Emergency has been declared across the country as the Government pulls out all the stops to curtail the spread of COVID-19. “Today we put in place our country’s second ever State of National Emergency as we fight a global pandemic, save New Zealanders’ lives and prevent ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Prime Minister’s statement on State of National Emergency and Epidemic Notice
    Mr Speaker I wish to make a Ministerial Statement under Standing Order 347 in relation to the recent declaration of a State of National Emergency. Having considered the advice of the Director Civil Defence Emergency Management, the Minister of Civil Defence declared a State of National Emergency for the whole of ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Deadline for domestic travel extended
    People needing to travel on domestic flights, trains and Cook Strait ferries to get home before the country moves into level 4 lock-down tomorrow night will be able to continue using the passenger services until midnight on Friday, Transport Minister Phil Twyford said today. Domestic passenger services, particularly ferries, have ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Mortgage holiday and business finance support schemes to cushion COVID impacts
    The Government, retail banks and the Reserve Bank are today announcing a major financial support package for home owners and businesses affected by the economic impacts of COVID-19. The package will include a six month principal and interest payment holiday for mortgage holders and SME customers whose incomes have been ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government working to keep air freight moving
    Minister of Transport Phil Twyford has today announced details of the Government’s support package to keep key air freight moving and ensure New Zealanders retain access to essential goods during the four-week level 4 lockdown. “The Government is working with airlines and air freight operators to ensure New Zealand’s key ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand moves to COVID-19 Alert Level 3, then Level 4 in 48 hours
    New Zealand moved up to COVID-19 Alert Level 3 – Restrict New Zealand to move up to COVID-19 Alert Level 4 – Eliminate, in 48 hours Two-staged approach to give people and businesses time to prepare  Level 3, from tomorrow Non-essential businesses must close All events and gatherings must be ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Prime Minister: COVID-19 Alert Level increased
    Good afternoon  The Cabinet met this morning to discuss our next actions in the fight against COVID-19.  Like the rest of the world, we are facing the potential for devastating impacts from this virus. But, through decisive action, and through working together, do we have a small window to get ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt takes significant economic decisions as NZ readies for Alert Level 4 in COVID-19 fight
    The Government is announcing significant further support for the economy, workers and businesses as the country unites to prepare for Alert Level 4 in the fight against COVID-19. Cabinet today agreed to remove the cap on the Government’s wage subsidy scheme, which will inject a further $4 billion into the ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt backs RBNZ move to support economy with lower interest rates
    The Government is backing the Reserve Bank’s latest action to support the economy by reducing longer-term interest rates, meaning lower costs for businesses and mortgage holders, and a lower currency to help our exporters. The Minister of Finance has signed a memorandum of understanding and a letter of indemnity with ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government statement on commercial cooperation during COVID-19
    The Government has asked the Commerce Commission to take account of the exceptional circumstances created by COVID-19 when monitoring business behaviour in coming weeks.   “The purpose of my request to the Commerce Commission is to make sure businesses can work together in ways that will allow them to provide ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • New Zealand temporarily closes diplomatic posts in Barbados and Myanmar due to COVID-19
    The New Zealand Government has temporarily closed its High Commission in Bridgetown, Barbados and its Embassy in Yangon, Myanmar due to the COVID-19 pandemic, Foreign Minister Winston Peters says.   “Due to the increasing scarcity of air links in and out of Bridgetown and Yangon, and the pressure COVID-19 is placing ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Supporting Māori communities and businesses through
    Associate Health and Whānau Ora Minister Peeni Henare has today announced the Government’s plan to support Māori communities and businesses in the face of COVID-19. “Our Government’s $12.1 billion economic package will help many Māori whānau, workers and businesses, whether it’s through wage subsidies, income support and worker redeployment, or ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Guidelines for hospitality establishments released
    The Government and the hospitality industry have worked together to produce guidelines to assist with managing and reducing transmission of COVID-19, Health Minister David Clark announced today.  The guidelines developed between the Government, Hospitality New Zealand and SkyCity Entertainment Group, set out how the new restrictions on physical distancing and ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Nation steps up to COVID-19 Alert Level 2
    Four stage Alert System for COVID-19 announced New Zealand moved up to COVID-19 Alert Level 2 – Reduce Contact New Zealanders over 70 and those with certain medical conditions told to stay at home as much as they can to reduce risk of contact with the virus Workplaces to implement ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • PM Address – Covid-19 Update
    Kia ora koutou katoa I’m speaking directly to all New Zealanders today to give you as much certainty and clarity as we can as we fight Covid-19. Over the past few weeks, the world has changed. And it has changed very quickly. In February it would have seemed unimaginable to ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • NZ and Singapore commit to keeping supply and trade links open, including on essential goods and med...
    New Zealand and Singapore have jointly committed to keep supply chains open and to remove any existing trade restrictive measures on essential goods, especially medical supplies, in the face of the Covid-19 crisis. Trade and Export Growth Minister David Parker welcomed the commitment. “This is an important collective response, and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Joint Ministerial Statement by Singapore and New Zealand -Covid-19 situation
    JOINT MINISTERIAL STATEMENT BY SINGAPORE AND NEW ZEALAND AFFIRMING COMMITMENT TO ENSURING SUPPLY CHAIN CONNECTIVITY AMIDST THE COVID-19 SITUATION  The COVID-19 pandemic is a serious global crisis.  As part of our collective response to combat COVID-19, Singapore and New Zealand are committed to maintaining open and connected supply chains. We ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Transit between Australia and New Zealand
    Travel restrictions, closing our border to almost all travelers came into force from 23:59 on Thursday 19 March 2020 (NZDT).  All airlines were informed of these restrictions before they came into force. Immigration Minister Iain Lees-Galloway says “The transit of passengers between Australia and New Zealand has been agreed upon and ...
    BeehiveBy beehive.govt.nz
    2 weeks ago