Savings based recovery nonsense

Written By: - Date published: 3:38 pm, November 18th, 2010 - 47 comments
Categories: bill english, Economy, national - Tags: , , ,

Bill English is always busy trying to put lipstick on the pig of our moribund economy. We’ve told him off before for fiddling his figures. But now he’s transcended mere lying with numbers. Now he’s invented a whole new economic theory:

English: Savings-Based Recovery Set To Pick Up In 2011

A sustainable economic recovery is underway and will pick up momentum next year as the Government continues to roll out its economic plan, Finance Minister Bill English says. … “This trend towards increased household saving creates a strong platform for faster economic growth in the medium and longer term. That is the only way we can create the jobs, higher incomes and the better living standards Kiwis deserve.

Savings based recovery? Savings based recovery? I’ve never heard of a savings based recovery — have you? I ran it through Google first thing this morning and the phrase generated exactly 5 hits. It’s generating more now (15) as coverage of English’s announcement spreads. In short, it looks like the double dipper has invented the whole notion of a “savings based recovery” all by himself.

I wondered if Google was being unfair to Bill, so I wandered off the check the academic literature with Google Scholar. A bit of messing round showed that phrases relating to X based or led growth or recovery were most productive, where X was replaced by various words of interest. (The exact queries entered, including quotes, were for example “export (based OR led) (growth OR recovery)”, “investment (based OR led) (growth OR recovery)”, and so on.) Here are the results:

  • export — 19,500 hits
  • private sector — 1,510 hits
  • investment — 1,500 hits
  • demand — 1,190 hits
  • knowledge — 1,110 hits
  • finance — 668 hits
  • trade — 515 hits
  • productivity — 330 hits
  • tourism — 249 hits
  • industry — 183 hits
  • savings — 8 hits

So – export based or led growth or recovery the clear winner. Private sector, investment, demand, knowledge, also seen as very important factors in the academic literature. Savings? Bill English’s new theory? Not so much. 8 hits. And most of those are reference to foreign savings. In other words, in terms of economic theory, English’s idea of a “savings based recovery” has a fan club of one.

What’s really going on here is another coat of lipstick. English is trying to make excuses for the fact that due to his brilliant handling of the economy, no one has any money to spend. Those that do have a bit of excess are desperately trying to pay down debt in these uncertain times. He’s tried such tactics before, arguing that anaemic growth and falling household spending on big ticket items are actually good things.

Enough with the lipstick. English needs to face up to his miserable economic record. And stop making empty promises. From the first quote:

A sustainable economic recovery is underway and will pick up momentum next year as the Government continues to roll out its economic plan…

What economic plan? What momentum? English has been promising “jam tomorrow” since before the election. He is never going to deliver.

47 comments on “Savings based recovery nonsense ”

  1. Draco T Bastard 1

    The spin goes like this:

    1.) Point out the lower spending
    2.) Suggest, without any evidence, that this lower spending is from higher savings
    3.) ???
    4.) Profit

    So, what he’s trying to spin as good news is the falling wages which is the real cause of the lower spending. And I suppose it is from NACTs PoV – they did, after all, promise to lower wages. And, hey, at least the banks have record profits….

  2. Macro 2

    “And, hey, at least the banks have record profits….”
    and that’s all we need to know!

  3. Jeremy Harris 3

    I find the duplicity on this site curious to say the least…

    The message seems to be contradictary:

    1). Consumption is killing Mother Gaia – we must force people to stop
    2). English didn’t give tax cuts to people to consume – it’s his fault the economy is kaput

    I personally think introducing a tax free threshold was right move, not percentage based tax cuts – I think consumption is good – but seriously which is it; tax cuts should have been for consumption or Mother Gaia is dying..?

    • r0b 3.1

      Can I rephrase slightly?

      1). Overconsumption is killing Mother Gaia — we must convince people to change.
      2). Actually no I can’t rephrase 2, I can’t make sense of it.

      So big picture, yes, we need to change the fundamentals of the economy to something much greener and more sustainable. That’s what I want to see both major parties working towards. National are never going to do it. Labour I still have hope.

      But that’s a bigger topic than this post. The point of this post is that even by their own standards National are useless, and making excuses for being useless. Once we get rid of National we can start work on what the new, better standards on which we judge an economy should be.

    • Bunji 3.2

      One may not think that growth is the only way forward and indeed we need sustainability, but when the government’s only economic plan is:
      1) tax cuts
      2) ???
      3) Growth!

      it’s surely fair to point out that 1 & 2 aren’t working.

      I’d rather they worked on a sustainable, happy future for all of us (which may include some economic growth, but not growth in our consumption of resources), but if they can’t even give us their promised increased wealth with their consumption is the way to happiness philosophy I don’t think we should hold back from pointing that out.

    • Lanthanide 3.3

      I think it goes like this:

      National promised X. We don’t particularly agree with X, but National promised it. X comes at the expense of Y, which we actually wanted to keep and don’t like National cutting it. Now National are failing to deliver on X and have still slashed and burnt on Y as well, so all the pain for none of the gain.

    • Pascal's bookie 3.4

      Cites for either 1 or 2 would be nice. Presumably from the same poster, unless you think it is duplicitous for people to disagree with each other.

  4. Carol 4

    I think it became evident somewhere recently, that when the government talks about a savings-based recovery they tend to refer a lot to savings the government makes by cutting back on the public sector. But then they blur this kind of saving, with statistics about individuals saving more in their bank accounts etc.

  5. burt 5

    Yes it’s so much easier when Labour are in charge, Tax the rich pricks and stop them saving so the govt can have a surplus and spend it on…. middle class welfare for the people you tax so heavily they can’t save…. Oh yeah – churn baby churn. Churn our way into the hearts and minds of the people who have never saved – that will fix the economy.

  6. burt 6

    rOb

    One more thing, remind me again how although NZ was in recession before the global crisis how it wasn’t Labour’s economic policies that caused the trouble we now have.

    • nzfp 6.2

      Hey burt – talking about when NZ went into the recession – have a look at Wikipedia – but be prepared to laugh your socks off.

      Wikipedia have an entry for “The Great Recession” under “Late-2000s recession”

      Wikipedia states:

      The late-2000s recession, or the Great Recession,[1][2] was a severe economic recession that began in the United States in December 2007[3] and ended in June 2009 (as determined by the U.S. National Bureau of Economic Research).[4]

      … “ended in June 2009” … what a laugh – tell that to the people going through FRAUDclosure, the QE2, the Irish bailout, the riots in France, Germany, UK, Portugal, Spain, Greece…

      However, all that aside it should be noted that according to the New Zealand Treasury Department:
      The recession in New Zealand began in the March 2008 quarter, before any OECD nation, as a result of domestic factors.

      Which is odd, because according to the OECD:

      The United States, along with 19 other countries, signed the Convention founding the Organisation for Economic Co-Operation and Development on 14 December 1960, thereby pledged its full dedication to achieving the Organisation’s fundamental aims.

      So someone is telling porkies, because according to a December 1, 2008 article by Bloomberg:

      The U.S. economy entered a recession a year ago this month, the panel that dates American business cycles said today, making this contraction already the longest since 1982.

      The declaration was made by a committee of the National Bureau of Economic Research, a private, nonprofit group of economists based in Cambridge, Massachusetts. The last time the U.S. was in a recession was from March through November 2001, according to NBER.

      Which means the US entered the recession well before we did, and since the gobal crisis was caused by Wall Street, that means the global crisis started before we went into the recession.

      • Pascal's bookie 6.2.1

        And we’ll not talk about how the US staved off recession for so long leading up to the downturn.

        What was fed reserve doing Burt?

    • roblyn 6.3

      Burt, you should stop looking to the past and think a bit more about the future. The global recession was exacerbated by the neo-liberal monetary consensus that existed prior to 2008. Labour was signed up to that consenus along with National. The challenge ahead of us however is moving away from that crisis prone paradigm to creating a more stable economic model. National is determined to try and replicate the failed model. Labour at least is prepared now to step away from the failure and debate what a better model must look like. That is why Labour represents a far brighter future than National can, unless it too is prepared to jettison failed neo-liberal ideology.

  7. Pascal's bookie 7

    Does anyone care to defend, or even explain Mr English’s ‘savings based recovery’?

    • Lanthanide 7.1

      There is a little bit of logic in it. That once households have paid back debt, they’ll be in a better position to increase consumption again. If you’re not paying $50 on CC interest any more, you can save $20 of that and spend $30 on a dinner out, for example.

      Of course if the economic environment isn’t right, people won’t spend that extra $30 on dinner, instead they’ll save it. That’s assuming they are still earning that $50 anyway – they might be down to $30 because of job loss.

      It seems more like firming up the foundation for future growth, but the not the impetus for growth itself, IMO.

      • r0b 7.1.1

        If it was genuine savings I would agree that it was a good thing — a useful contribution. But savings alone will never be enough to cause recovery or growth. For that the savings must be put to good, productive use, they must be part of a bigger economic picture, and that simply isn’t happening.

        Also, I’m not convinced that we are in fact saving. We’re not spending as much, but then we’re not getting as much income either. And as for debt reduction – a drop in the bucket. We’ll be many a long year if we wait for a “debt reduction based recovery”.

        I stick to my theory, we’re stalled, and English is looking for new ways to explain it away. We need a new, sustainable. green economy, and the Nats are never going to deliver it.

        • clandestino 7.1.1.1

          Are you advocating for people not to pay down debt, but to allow the government to take that money and invest on our behalf in…..?

    • Jeremy Harris 7.2

      Savings are important for productivity gains, a country where indivduals aren’t saving cannot increase productivity, efficiency or compete without selling assets (where we are now)…

      But a strategy for a quick recovery it is not… I think if this saving trend continues that’s great, Chinese residents save up to 40% of their salaries…

      • Colonial Viper 7.2.1

        There is a little bit of logic in it. That once households have paid back debt, they’ll be in a better position to increase consumption again.

        So somewhere between 5 and 10 years then? Another ‘lost decade’ in the making.

        (Sorry Jeremy this was supposed to be in reply to Lanth)

      • Maynard J 7.2.2

        Wow, Jeremy, I think you’re right.

        This is English’s new ’10 Year Plan’. Next he’ll tell us to melt down everything we own to make iron, and we’ll have a Smelting Based Recovery, followoed by a Great Leap Forward!

      • Jeremy Harris 7.2.3

        My spidy sense is picking up traces of sarcasm…

        I don’t think English meant for an increase in savings or that what he has done is a good plan or even a plan at all…

        So not really sure what your cheap dig is trying to prove… That English is a c*mmunist..? He maybe many things but c*mmie ain’t one of them…

        That savings are essential for future growth and prosperity shouldn’t really even be an issue for debate though, just an obvious truism…

  8. jcuknz 8

    Bill English may well be telling porkies, but it is in a good cause. If he can convince us to save more, that is either knocking down our credit card totals or actually putting some money in the bank or savings union if it is a small amount. I doubt if anyone in the country couldn’t save, even if only a few cents a week, by forgoing something that is not absolutely essential.

    Politicians often tell us what they hope is happening and sometimes it happens. It is disgusting that people have nothing better to do than make fun of those trying to lead the recovery.

    I think it is, or going to be, a hard row to hoe … the adjustment which keeps the consumption of earth’s resources down without putting even more people out of work. I doubt if capitalism will survive the process but it has got to happen if the human race is to survive. Other earth type planets are a long way away and could only be reached by a select few, so the rest of us have to learn to survive on Earth with what is here.

    • Colonial Viper 8.1

      It is disgusting that people have nothing better to do than make fun of those trying to lead the recovery.

      I think its OK to make fun of people leading us around the merry-go-round however.

      the adjustment which keeps the consumption of earth’s resources down without putting even more people out of work.

      Didn’t you notice? Capital markets have no interest in whether or not people are out of work. It is irrelevant as the only matter of importance is the rate of return on investment. If pushing more people out of work generates an improved return on investment and improves the financials, that is what the capitalist system will do.

      I doubt if capitalism will survive the process but it has got to happen if the human race is to survive.

      What a frakin joke, capitalism != human civilisation. Check out the Romans, the Greeks and the Mesopotamians for starters. Trading yes. Capitalism as a form of government, no.

    • r0b 8.2

      It is disgusting that people have nothing better to do than make fun of those trying to lead the recovery.

      How is English trying to lead the recovery jc? What is he doing? Economically, the Nats are a one trick pony. Tax cuts. They did it. Didn’t work. Now what? What are they doing?

      • jcuknz 8.2.1

        It is creating an attitude to life and it took me a long time to learn it despite it being ancient history and related in a popular book of a previous century with a Mr McKiber going own about “Income one pound … spend 19/6d is happiness, spend 20/6d is misery”. It is as true today as ever in history and other nations seem to have got the message while Kiwis are spendthrifts as ever. You don’t need a wage rise to correct matters just some self discipline.

        What is the point? capital gives one a feeling of security, and everything is relative to one’s position in society. A few cents over time becomes a few dollars which helps when one is at or near the bottom of the pile … been there … so save those idiot’s remarks about me being all dollars and no cents. Blogs are full of smart alex’s with limited intelligence.

        CV … I think you mis-read my comment, I had a feeling that some might.Try the other that we have to find a system that doesn’t include capitalism.

        • Draco T Bastard 8.2.1.1

          You don’t need a wage rise to correct matters just some self discipline.

          You do if the amount you’re getting isn’t enough to live on which is where most people in NZ exist. No amount of self-discipline can change that.

          But in that is the problem .. we don’t want more consumption, wasting earths resources. We have to work out a way of improving peoples lives without increasing consumption.

          This bit I agree with. I think a well defined Renewable Resource Base that everyone then has an equal say in how it’s used would be the best option.

      • jcuknz 8.2.2

        rOb … perhaps if you stopped to think for a moment about what I suggested you would appreciate that English is trying to lead New Zealand out of its spendthrift ways by suggesting something which may not be true but would be good if it were true and definitely doesn’t deserve your ridicule. But such is the stupidity and petty mindedness of our politicians and their lapdogs that it is the norm rather than exception. I’m sure that you got considerable enjoyment from your research and writing the article but you missed the final important stage of asking yourself was it reasonable to publish.

        While just about everybody got a tax cut, or an increase in their pension, it was not targeted to do the most good. To do this it should have been given to those with the least, because they would spend it quicker. But in that is the problem .. we don’t want more consumption, wasting earths resources. We have to work out a way of improving peoples lives without increasing consumption. I don’t know the answer but I hope others will find it, and it certainly isn’t by poking fun at Bill English which helps nobody.

        • r0b 8.2.2.1

          English is trying to lead New Zealand out of its spendthrift ways by suggesting something which may not be true but would be good if it were true and definitely doesn’t deserve your ridicule.

          That’s the lamest attempted rationalisation for incompetence that I’ve ever heard. Plus, Bill double dipping English is the last one to have any credibility preaching restraint. That hypocritical idiot deserves all the ridicule he gets.

    • Marty G 8.3

      you just can’t bear to hear the truth about the losers you worship.

    • pollywog 8.4

      I doubt if anyone in the country couldn’t save, even if only a few cents a week, by forgoing something that is not absolutely essential.

      dunno bout that eh…

      …and whats the point in saving a few cents a week ?

    • handle 8.5

      “make fun of those trying to lead the recovery”? Only if not doing anything counts as ‘lead’

  9. ghostwhowalksnz 9

    Looks like English will join Ruth Richardson and become a one term Finance Minister.

    And after all the trouble he went to to engineer Don Brashes downfall ( leaked emails ) and save his career, he wasnt up to the job and will get dumped by Key, who will give the job to Joyce

    • Marty G 9.1

      I think the govt’s agenda would grind to a halt without English. He does all the heavy-lifting for the half-wits like Tolley.

      Joyce is capable and English’s record on finance is awful but could Key really afford to lose English’s ability and leave him embittered on the backbenches (and talking to mates like Nick Smith)?

      For mine, the housing rort issue showed how indispensable English is. He got no reprimand at all for far worse than what got Wong the shove.

  10. roblyn 10

    I attempted to put the comments from English in some context, for my own understanding, this afternoon. English seems to trying to take claim that the govts tax cuts is moving us toward a ‘recovery based on savings and investment rather than borrowing and consumption, the present economic slow down was because people are moving from a consumption based phase to a saving based phase and that this switch to savings will provide higher economic growth’.

    That seems like a really desperate attempt from English to try and extract any good news out of a dire situation. I would strongly suggest that the present lack of spending is not due to savings but rather people paying down debt. This has little to do with what English has attempted and much to do with the high debt levels people have taken on.

    What the government has done is push through a round of tax cuts that will fill the pockets of high income earners but do not very much at all for lower income earners. That was the whole aim of the exercise, to cut taxes. Any perceived automatic flow on through to higher savings and higher growth is a matter of neo-liberal ideological faith rather than empirical fact. Treasury themselves state that any economic growth, as a result of the tax cuts, is margin of error stuff.

    If English seriously did want to move from a consumption based, speculative based economy to one based on savings there were a range of options he could have chosen such as a CGT and progressive improvements to Kiwisaver. Instead he wanted, for largely ideological reasons, reduce tax rates for the high income earners.

    The result is the government books in a worse state and borrowing for the tax cuts.

    • NickS 10.1

      You know it might be an idea to not use your email address as a user-name as even with a decent anti-spam system, you will still get swamped if the bots can find it. And screen-names are very, very visible…

      Not to mention ye olde flood of gay horse pr0n, lemon party (google not, since I wont give you eye bleach), [insert favourite shock image(s) here] as soon as someone takes a disliking to you* **…

      *welcome to the internet
      **I’m a bio-geek, and thus immune to even the all-glorious “offended” page, your reactions may vary though …

      [Agreed – tidied up the username(s) – thanks. — r0b]

  11. djp 11

    More savings means there is more capital available for “investment” in “private sector” “export” industries? (which ticks the top three in your google scholar list)

    • Colonial Viper 11.1

      There will be no more capital available for investment as you described UNLESS the banks get it into their heads to lend to startup businesses operating in the ‘real (tradeables) economy’ instead of always lending to people trying to build the next apartment block or flip an investment flat.

  12. prism 12

    I like to refer to my economics textbook by Blaumol and Blinder 4th edn – handy to keep grounded. In their section on the Paradox of Thrift –
    “This last example of multiplier analysis teaches us an important lesson. It shows that an increase in the desire to save will lead to a cumulative fall in GNP. And, because saving depends on income, the resulting decline in national income will pull saving down.”

    English must know this – wasn’t he the clever farm boy who got into Treasury. Cullen was always on about saving too. Neither of them seemed to care enough to back their empty words with encouragement like stopping double taxing on people’s savings, first on the original earnings and then from interest paid, taking even single cents from the miniscule amount that small savers manage to earn. Is it total wage taxing, first on a percentage of wages (say 20%) second on spending GST (15%), and third on interest if you have any left over with just a few items GST free. Seems quite heavy tax if you’re low waged.

    It’s not a simple solution to having more national investment. And when there has been investment by NZs’ with some wealth, the government haven’t had sufficient nous to encourage it to productive entities rather than consumer ones, with spectacular magic shows of disappearing money. It seems that more savings and liquidity may result in negative total investment and unhealthy growth for the economy because of spending on personal indulgences.

    I’m just a learner but experts don’t seem to make their theories work for our good so maybe my ideas are as valid as theirs.

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    Buzz from the Beehive The promise of tax relief loomed large in his considerations when  the PM delivered a pre-Budget speech to the Auckland Business Chamber. The job back in Wellington is getting government spending back under control, he said, bandying figures which show that in per capita terms, the ...
    Point of OrderBy Bob Edlin
    1 day ago
  • Fucking useless
    Yesterday de facto Prime Minister David Seymour announced that his glove puppet government would be re-introducing charter schools, throwing $150 million at his pet quacks, donors and cronies and introducing an entire new government agency to oversee them (the existing Education Review Office, which actually knows how to review schools, ...
    No Right TurnBy Idiot/Savant
    1 day ago
  • Setting things straight.
    Seeing that, in order to discredit the figures and achieve moral superiority while attempting to deflect attention away from the military assault on Rafa, Israel supporters in NZ have seized on reports that casualty numbers in Gaza may be inflated … Continue reading ...
    KiwipoliticoBy Pablo
    1 day ago
  • Far too light a sentence
    David Farrar writes – Newstalk ZB report: The man responsible for a horror hit and run in central Wellington last year was on a suspended licence and was so drunk he later asked police, “Did I kill someone?” Jason Tuitama injured two women when he ran a red ...
    Point of OrderBy poonzteam5443
    2 days ago
  • Unwinding Labour’s Agenda
    Muriel Newman writes –  Former US President Ronald Reagan once said, “Freedom is a fragile thing and it’s never more than one generation away from extinction. It is not ours by way of inheritance; it must be fought for and defended constantly by each generation.” The fight for ...
    Point of OrderBy poonzteam5443
    2 days ago
  • Sequel to “Real reason Waitangi Tribunal could not summons Chhour”
    Why Courts should have said Waitangi Tribunal could not summons Karen Chhour Gary Judd writes – In the High Court, Justice Isacs declined to uphold the witness summons issued by the Waitangi Tribunal to compel Minister for Children, Karen Chhour, to appear before it to be ...
    Point of OrderBy poonzteam5443
    2 days ago
  • The Govt’s Fast-Track is being demolished by submissions to Parliament
    Bryce Edwards writes –  The number of voices raising concerns about the Government’s Fast-Track Approvals Bill is rapidly growing. This is especially apparent now that Parliament’s select committee is listening to submissions from the public to evaluate the proposed legislation. Twenty-seven thousand submissions have been made to Parliament ...
    Point of OrderBy poonzteam5443
    2 days ago
  • A generation is leaving at a rate of one A320-load per day
    An average of 166 New Zealand citizens left the country every day during the March quarter, up 54% from a year ago.Photo: Lynn Grieveson / The KākāTL;DR: The economy and housing market is sinking into a longer recession through the winter after a slump in business and consumer confidence in ...
    The KakaBy Bernard Hickey
    2 days ago
  • NZUP RORS back to life
    The government has made it abundantly clear they’re addicted to the smell of new asphalt. On Tuesday they introduced a new term to the country’s roading lexicon, the Roads of Regional Significance (RoRS), a little brother for the Roads of National (Party) Significance (RoNS). Driving ahead with Roads of Regional ...
    2 days ago
  • School Is Out.
    School is outAnd I walk the empty hallwaysI walk aloneAlone as alwaysThere's so many lucky penniesLying on the floorBut where the hell are all the lucky peopleI can't see them any moreYesterday morning, I’d just sent out my newsletter on Tama Potaka, and I was struggling to make the coffee. ...
    Nick’s KōreroBy Nick Rockel
    2 days ago
  • How Are You Doing?
    Hi,I wanted to check in and ask how you’re doing.This is perhaps a selfish act, of attempting to find others feeling a similar way to me — that is to say, a little hopeless at the moment.Misery loves company, that sort of deal.Some context.I wish I could say I got ...
    David FarrierBy David Farrier
    2 days ago
  • The Rings of Power: Season Two Teaser Trailer
    I have hitherto been fairly quiet on the new season of Rings of Power, on the basis that the underwhelming first season did not exactly build excitement – and the rumours were fairly daft. The only real thing of substance to come out has been that they have re-cast Adar ...
    2 days ago
  • At a glance – What ended the Little ice Age?
    On February 14, 2023 we announced our Rebuttal Update Project. This included an ask for feedback about the added "At a glance" section in the updated basic rebuttal versions. This weekly blog post series highlights this new section of one of the updated basic rebuttal versions and serves as a ...
    2 days ago
  • Talking Reo with the PM
    “The thing is,” Chris Luxon says, leaning forward to make his point, “this has always been my thing.”“This goes all the way back to the first multinational I worked for. I was saying exactly the same thing back then. The name of our business needs to be more clear; people ...
    More Than A FeildingBy David Slack
    2 days ago
  • Waitangi Tribunal’s authority in Chhour case is upheld – but bill’s introduction to Parliament...
    Buzz from the Beehive It’s been a momentous few days for Children’s Minister Karen Chhour.  The Court of Appeal has overturned a High Court decision which blocked a summons order from the Waitangi Tribunal for her. And today she has announced the Government is putting children first by introducing to ...
    Point of OrderBy Bob Edlin
    2 days ago
  • Australia jails another whistleblower
    In 2014 former Australian army lawyer David McBride leaked classified military documents about Australian war crimes to the ABC. Dubbed "The Afghan Files", the documents led to an explosive report on Australian war crimes, the disbanding of an entire SAS unit, and multiple ongoing prosecutions. The journalist who wrote the ...
    No Right TurnBy Idiot/Savant
    2 days ago
  • Some “scrutiny”!
    Back in February I blogged about another secret OIA "consultation" by the Ministry of Justice. This one was on Aotearoa's commitment in its Open Government Partnership Action Plan to "strengthen scrutiny of Official Information Act exemption clauses in legislation" (AKA secrecy clauses). Their consultation paper on the issue focused on ...
    No Right TurnBy Idiot/Savant
    2 days ago
  • TVNZ is loss-making, serves no public service due to bias, and should be liquidated
    Rob MacCulloch writes –  According to the respected Pew Research Centre, “In seven of eight [European] countries surveyed, the most trusted news outlet asked about is the public news organization in each country”. For example, “in Sweden, an overwhelming majority (90%) say they trust the public broadcaster SVT”. ...
    Point of OrderBy poonzteam5443
    2 days ago
  • The conflicted Covid Chair
    David Farrar writes –  Kata MacNamara reports:    Details of Tony Blakely’s involvement in the New Zealand Government’s response to the pandemic raise serious questions about the work of the Covid-19 Royal Commission of Inquiry over which he presides. It has long been clear that Blakely, a ...
    Point of OrderBy poonzteam5443
    2 days ago
  • Attacking the smartest and most resilient people in the room is never a good idea
    Chris Trotter writes – Are you a Brahmin or a Merchant? Or, are you merely one of those whose lives are profoundly influenced by the decisions of Brahmins and Merchants? Those are the questions that are currently shaping the politics of New Zealand and the entire West. ...
    Point of OrderBy poonzteam5443
    2 days ago
  • A fortune-telling failure, surely, if the tarot cards can’t see a bulldozer coming
    RNZ reports –  It’s supposed to be a haven of healing and spiritual awakening but residents of the Kawai Purapura community say they’ve been hurt and deceived. It’s the successor to the former Centrepoint commune, and has been on the bush block opposite Albany shopping centre since 2008. It ...
    Point of OrderBy Bob Edlin
    3 days ago
  • The climate battleground heats up
    TL;DR : Here’s the top six items climate news for Aotearoa-NZ this week, as selected by Bernard Hickey and The Kākā’s climate correspondent Cathrine Dyer. Usually we have a video chat to go with this wrap, but were unable to do one this week. We’ll be back next week.Several reports ...
    The KakaBy Bernard Hickey
    3 days ago
  • Bernard’ s Dawn Chorus & Pick ‘n’ Mix for Tuesday, May 14
    The Transport Minister has set a hard 'fiscal envelope' of $6.54 billion for transport capital spending. Photo: Lynn Grieveson / The KākāTL;DR: The economy is settling into a state of suspended animation as the Government’s funding freezes and job cuts chill confidence and combine with stubbornly high interest rates to ...
    The KakaBy Bernard Hickey
    3 days ago
  • Gordon Campbell on why anti-Zionism is not anti-Semitic
    To be precise, the term “anti- Zionism” refers to (a) criticism of the political movement that created a modern Jewish state on the historical land of Israel, and to (b)the subjugation of Palestinians by the Israeli state. By contrast, the term “anti-Semitism” means bigotry and racism directed at Jewish people, ...
    3 days ago
  • Climate change is making hurricanes more destructive
    This is a re-post from the Climate Brink by Andrew Dessler Because hurricanes are one of the big-ticket weather disasters that humanity has to face, climate misinformers spend a lot of effort muddying the waters on whether climate change is making hurricanes more damaging. With the official start to the hurricane ...
    3 days ago
  • Wayne Brown’s PT Plan
    Yesterday the Mayor released what he calls his “plan to save public transport” which is part of his final proposal for the Council’s Long Term Plan (LTP). This comes following consultation on the draft version that occurred in March which showed, once again, that people want more done on transport, especially ...
    3 days ago
  • Potaka's Private Universe.
    And it's a pleasure that I have knownAnd it's a treasure that I have gainedAotearoa’s coalition government is fragile. It’s held together by the obsequious sycophancy of Christopher Luxon, who willingly contorts his party into the fringe positions of his junior coalition partners and is unwilling to contradict them. The ...
    Nick’s KōreroBy Nick Rockel
    3 days ago
  • Our slow regional councils
    The Select Committee hearing submissions on the fast-track consenting legislation is starting to become a beat-up of regional councils. The inflexibility and slow workings of the Councils were prominent in two submissions yesterday. One, from the Coromandel Marine Farmers Association, simply said that the Waikato Regional Council’s planning decisions were ...
    PolitikBy Richard Harman
    3 days ago
  • Ministers are not above the law after all
    Back in April, the High Court surprised everyone by ruling that Ministers are above the law, at least as far as the Waitangi Tribunal is concerned. The reason for this ruling was "comity" - the idea that the different branches of government shouldn't interfere with each other's functions. Which makes ...
    No Right TurnBy Idiot/Savant
    3 days ago
  • NZTA takes the wheel after govt gives it the road map for regional roads (and puts a speed governor ...
    Buzz from the Beehive  Tolling was mentioned when Transport Minister Simeon Brown announced the government was re-introducing the Roads of National Significance (RoNS) programme, with 15 “crucial” projects to support economic growth and regional development across New Zealand. All RoNS would be four-laned, grade-separated highways, and all funding, financing, and ...
    Point of OrderBy Bob Edlin
    3 days ago
  • Change in Catalonia?
    or the past 14 years, ever since the Spanish government cheated on an autonomy deal, Catalonia has reliably given pro-independence parties a majority of seats in their regional parliament. But now that seems to be over. Catalans went to the polls yesterday, and stripped the Catalan parties of their majority. ...
    No Right TurnBy Idiot/Savant
    3 days ago
  • Having an enrolment date is not depriving anyone of a vote
    David Farrar writes –  Radio NZ report: Labour Party leader Chris Hipkins said the Electoral Commission should make sure the system ran smoothly and “taking away the right of thousands of people to vote” was not the answer. “Thousands of people enroled and voted on the day. If ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Perhaps house prices don’t always go up
    Don Brash writes –  There was a rather revealing headline in the Herald on Sunday today (12 May). It read “One in 8 Auckland homes on market were bought during boom, may now sell for loss”. The first line of text noted that “New data shows one in ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Can’t read, can’t write, can’t comprehend – and won’t think…?
    Mike Grimshaw writes –  At a time when universities are understandably nervous regarding the establishment of the University Advisory Group (UAG) and the Science System Advisory Group (SSAG) it may seem strange – or even fool-hardy – to state that there are long-standing issues in the tertiary sector ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Time for some perspective
    Lindsay Mitchell writes –  A lack of perspective can make something quite large or important seem small or irrelevant. Against a backdrop of high-profile, negative statistics it is easy to overlook the positive. For instance, the fact that 64 percent of Maori are employed is rarely reported. For ...
    Point of OrderBy poonzteam5443
    4 days ago
  • Will NZ Herald’s ‘poor journalism’ cost lives?
    Earlier this year, the Herald ran a series of articles amounting to a sustained campaign against raised pedestrian crossings, by reporter Bernard Orsman. A key part of that campaign concerned the raised crossings being installed as part of the Pt Chevalier to Westmere project, with at least 10 articles over ...
    4 days ago
  • The Kaka’s diary for the week to May 19 and beyond
    TL;DR: The six key events to watch in Aotearoa-NZ’s political economy in the week to May 19 include:PM Christopher Luxon is expected to hold his weekly post-cabinet news conference at 4:00pm on Monday.Parliament is not sitting this week. It resumes next week for a two-week sitting session up to and ...
    The KakaBy Bernard Hickey
    4 days ago
  • Webworm Popup Photos!
    Hi,Thanks to all the beautiful Worms who came to the LA Webworm popup on Saturday.It was a way to celebrate the online store we launched last week — and it was super special.As I talk about a lot, I really value our community here — and it was a BLAST ...
    David FarrierBy David Farrier
    4 days ago
  • 2024 SkS Weekly Climate Change & Global Warming News Roundup #19
    A listing of 35 news and opinion articles we found interesting and shared on social media during the past week: Sun, May 5, 2024 thru Sat, May 11, 2024. (Unfortunate) Story of the week "Grief that stops at despair is an ending that I and many others, most notably ...
    4 days ago
  • The Gods Must Be Woke.
    Last night the largest solar storm in decades resulted in Aurorae being seen across Aotearoa, causing many to ask why?Why was the sky pink? What was all this stuff about the power grid? Have we, as so many have wondered since the election, reached the end of days?I had a ...
    Nick’s KōreroBy Nick Rockel
    5 days ago
  • More road
    We have been on the road in England, squeezing down narrow lanes, flying up the M6, loving hedgerows and villages and cathedrals, liking the 21st century less.There have been moments when it’s felt like a movie trope. The pub in Exford, lovely seventeenth century bar, almost more dogs than people, ...
    More Than A FeildingBy David Slack
    5 days ago
  • Seeing the Aurora Australis
    There’s a solar-storm on at the moment, and since the South Island is having a day and night with clear skies, that means Aurorae. I have just got back from a midnight visit to Tunnel Beach – southwards-looking over the Sea, and without the light pollution. Quite a few others ...
    5 days ago
  • Welcome to the current welfare mess
    Michael Bassett writes – I’m not sure that it’s much comfort to anyone to know that the post-Covid surge in violent crimes, gang activity, ram raids, random shootings, thuggery and stabbings is occurring in other countries as well as New Zealand. These days, wagging school, out-of-control welfare and ...
    Point of OrderBy poonzteam5443
    6 days ago
  • A shovel-ready autopsy
    Oliver Hartwich writes –  Cast your mind back to mid-December. A new Prime Minister had just been sworn in, the new Government started its 100-day programme, and Christmas was only days away.Amid all the haste, a report landed that would have deserved our attention.I am talking about the ...
    Point of OrderBy poonzteam5443
    6 days ago
  • Why we almost blacked out and how to fix it
    TL;DR: An unseasonally early icy blast at the same time as some long-overdue maintenance almost caused Aotearoa-NZ’s electricity system to black out this week. That’s because a quadropoly of gentailers1 have prioritised paying dividends from their rising profits and adding debt over investing in 1.5 GigaWatts of new wind farms ...
    The KakaBy Bernard Hickey
    6 days ago
  • What Is Instagram Trying To Sell Us?
    Hi,Before we crack into today’s Webworm, I wanted to acknowledge the fact that Israel is pushing into Rafah. Over 100,000 Palestinians are now attempting to flee the one place that was deemed “safe”.Trouble is, the place they’re fleeing to is already destroyed. Total annihilation is the end goal here.“Israel is ...
    David FarrierBy David Farrier
    6 days ago
  • Precious Little Excitement: Warner Brothers, Peter Jackson, and Gollum
    Back in February 2023, I made the cardinal mistake of getting my hopes up. Warner Brothers declared that fresh Middle-earth movies were in the works: https://phuulishfellow.wordpress.com/2023/02/24/it-never-rains-but-it-pours-warner-brothers-and-impending-tolkien-adaptations/ My assumption, based on which rights were available, and what had already been done, was that this was a stab at either the Angmar ...
    6 days ago
  • Do We Need a Population Census?
    ‘It has been said that figures rule the world. Maybe. I am quite sure that it is figures which show us whether it is being ruled well or badly.’ GoetheI was struck at a recent conference on equity for the elderly, how many presenters implicitly relied upon Statistics New Zealand. ...
    PunditBy Brian Easton
    6 days ago
  • No, the govt will not be cutting back on every budget – and the Defence vote is among those to be ...
    Buzz from the Beehive Reporting on defence spending late last year, RNZ said the coalition government will have to make some tough calls this term to help the force address staff shortages and ageing infrastructure. “These are huge, huge amounts of government spending. It’s a significant proportion of the government’s ...
    Point of OrderBy Bob Edlin
    6 days ago
  • The Treasury and productivity
    Late last week The Treasury released a new 40 page report on “The productivity slowdown: implications for the Treasury’s forecasts and projections” (productivity forecasts and projections that is, rather than any possible fiscal implications – the latter will, I guess, be articulated in the Budget documents). In short, if (as it has) ...
    Point of OrderBy poonzteam5443
    7 days ago
  • The Controller and Auditor-General’s role
    Peter Dunne writes –  I am always wary when I hear that the Controller and Auditor-General has commented on or made recommendations to the government about an issue of public policy that does not relate strictly to public expenditure. According to the legislation, the role of the Controller ...
    Point of OrderBy poonzteam5443
    7 days ago
  • More harm than good
    How Labour’s and National’s failure to move beyond neoliberalism has brought NZ to the brink of economic and cultural chaos   Chris Trotter writes –  TO START LOSING, so soon after you won, requires a special kind of political incompetence. At the heart of this Coalition ...
    Point of OrderBy poonzteam5443
    7 days ago

  • New Zealand and Tuvalu reaffirm close relationship
    New Zealand and Tuvalu have reaffirmed their close relationship, Foreign Affairs Minister Winston Peters says.  “New Zealand is committed to working with Tuvalu on a shared vision of resilience, prosperity and security, in close concert with Australia,” says Mr Peters, who last visited Tuvalu in 2019.  “It is my pleasure ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • New Zealand calls for calm, constructive dialogue in New Caledonia
    New Zealand is gravely concerned about the situation in New Caledonia, Foreign Minister Winston Peters says.  “The escalating situation and violent protests in Nouméa are of serious concern across the Pacific Islands region,” Mr Peters says.  “The immediate priority must be for all sides to take steps to de-escalate the ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • New Zealand welcomes Samoa Head of State
    Prime Minister Christopher Luxon met today with Samoa’s O le Ao o le Malo, Afioga Tuimalealiifano Vaaletoa Sualauvi II, who is making a State Visit to New Zealand. “His Highness and I reflected on our two countries’ extensive community links, with Samoan–New Zealanders contributing to all areas of our national ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Island Direct eligible for SuperGold Card funding
    Transport Minister Simeon Brown has announced that he has approved Waiheke Island ferry operator Island Direct to be eligible for SuperGold Card funding, paving the way for a commercial agreement to bring the operator into the scheme. “Island Direct started operating in November 2023, offering an additional option for people ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Further sanctions against Russia
    Foreign Minister Winston Peters today announced further sanctions on 28 individuals and 14 entities providing military and strategic support for Russia’s invasion of Ukraine.  “Russia is directly supported by its military-industrial complex in its illegal aggression against Ukraine, attacking its sovereignty and territorial integrity. New Zealand condemns all entities and ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • One year on from Loafers Lodge
    A year on from the tragedy at Loafers Lodge, the Government is working hard to improve building fire safety, Building and Construction Minister Chris Penk says. “I want to share my sincere condolences with the families and friends of the victims on the anniversary of the tragic fire at Loafers ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Pre-Budget speech to Auckland Business Chamber
    Ka nui te mihi kia koutou. Kia ora and good afternoon, everyone. Thank you so much for having me here in the lead up to my Government’s first Budget. Before I get started can I acknowledge: Simon Bridges – Auckland Business Chamber CEO. Steve Jurkovich – Kiwibank CEO. Kids born ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Zealand and Vanuatu to deepen collaboration
    New Zealand and Vanuatu will enhance collaboration on issues of mutual interest, Foreign Minister Winston Peters says.    “It is important to return to Port Vila this week with a broad, high-level political delegation which demonstrates our deep commitment to New Zealand’s relationship with Vanuatu,” Mr Peters says.    “This ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Penk travels to Peru for trade meetings
    Minister for Land Information, Chris Penk will travel to Peru this week to represent New Zealand at a meeting of trade ministers from the Asia-Pacific region on behalf of Trade Minister Todd McClay. The annual Asia-Pacific Economic Cooperation (APEC) Ministers Responsible for Trade meeting will be held on 17-18 May ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Minister attends global education conferences
    Minister of Education Erica Stanford will head to the United Kingdom this week to participate in the 22nd Conference of Commonwealth Education Ministers (CCEM) and the 2024 Education World Forum (EWF). “I am looking forward to sharing this Government’s education priorities, such as introducing a knowledge-rich curriculum, implementing an evidence-based ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Education Minister thanks outgoing NZQA Chair
    Minister of Education Erica Stanford has today thanked outgoing New Zealand Qualifications Authority Chair, Hon Tracey Martin. “Tracey Martin tendered her resignation late last month in order to take up a new role,” Ms Stanford says. Ms Martin will relinquish the role of Chair on 10 May and current Deputy ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Joint statement of Christopher Luxon and Emmanuel Macron: Launch of the Christchurch Call Foundation
    New Zealand Prime Minister Christopher Luxon and President Emmanuel Macron of France today announced a new non-governmental organisation, the Christchurch Call Foundation, to coordinate the Christchurch Call’s work to eliminate terrorist and violent extremist content online.   This change gives effect to the outcomes of the November 2023 Call Leaders’ Summit, ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Panel announced for review into disability services
    Distinguished public servant and former diplomat Sir Maarten Wevers will lead the independent review into the disability support services administered by the Ministry of Disabled People – Whaikaha. The review was announced by Disability Issues Minister Louise Upston a fortnight ago to examine what could be done to strengthen the ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Minister welcomes Police gang unit
    Today’s announcement by Police Commissioner Andrew Coster of a National Gang Unit and district Gang Disruption Units will help deliver on the coalition Government’s pledge to restore law and order and crack down on criminal gangs, Police Minister Mark Mitchell says. “The National Gang Unit and Gang Disruption Units will ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Zealand expresses regret at North Korea’s aggressive rhetoric
    Foreign Minister Winston Peters has today expressed regret at North Korea’s aggressive rhetoric towards New Zealand and its international partners.  “New Zealand proudly stands with the international community in upholding the rules-based order through its monitoring and surveillance deployments, which it has been regularly doing alongside partners since 2018,” Mr ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Chief of Defence Force appointed
    Air Vice-Marshal Tony Davies MNZM is the new Chief of Defence Force, Defence Minister Judith Collins announced today. The Chief of Defence Force commands the Navy, Army and Air Force and is the principal military advisor to the Defence Minister and other Ministers with relevant portfolio responsibilities in the defence ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government puts children first by repealing 7AA
    Legislation to repeal section 7AA of the Oranga Tamariki Act has been introduced to Parliament. The Bill’s introduction reaffirms the Coalition Government’s commitment to the safety of children in care, says Minister for Children, Karen Chhour. “While section 7AA was introduced with good intentions, it creates a conflict for Oranga ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Defence Minister to meet counterparts in UK, Italy
    Defence Minister Judith Collins will this week travel to the UK and Italy to meet with her defence counterparts, and to attend Battles of Cassino commemorations. “I am humbled to be able to represent the New Zealand Government in Italy at the commemorations for the 80th anniversary of what was ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Charter schools to lift educational outcomes
    The upcoming Budget will include funding for up to 50 charter schools to help lift declining educational performance, Associate Education Minister David Seymour announced today. $153 million in new funding will be provided over four years to establish and operate up to 15 new charter schools and convert 35 state ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • COVID-19 Inquiry terms of reference consultation results received
    “The results of the public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has now been received, with results indicating over 13,000 submissions were made from members of the public,” Internal Affairs Minister Brooke van Velden says. “We heard feedback about the extended lockdowns in ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • The Pacific family of nations – the changing security outlook
    Foreign Minister, Defence Minister, other Members of Parliament Acting Chief of Defence Force, Secretary of Defence Distinguished Guests  Defence and Diplomatic Colleagues  Ladies and Gentlemen,  Good afternoon, tēna koutou, apinun tru    It’s a pleasure to be back in Port Moresby today, and to speak here at the Kumul Leadership ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ and Papua New Guinea to work more closely together
    Health, infrastructure, renewable energy, and stability are among the themes of the current visit to Papua New Guinea by a New Zealand political delegation, Foreign Minister Winston Peters says.   “Papua New Guinea carries serious weight in the Pacific, and New Zealand deeply values our relationship with it,” Mr Peters ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Driving ahead with Roads of Regional Significance
    The coalition Government is launching Roads of Regional Significance to sit alongside Roads of National Significance as part of its plan to deliver priority roading projects across the country, Transport Minister Simeon Brown says.  “The Roads of National Significance (RoNS) built by the previous National Government are some of New Zealand’s ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Zealand congratulates new Solomon Islands government
    A high-level New Zealand political delegation in Honiara today congratulated the new Government of Solomon Islands, led by Jeremiah Manele, on taking office.    “We are privileged to meet the new Prime Minister and members of his Cabinet during his government’s first ten days in office,” Deputy Prime Minister and ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New Zealand supports UN Palestine resolution
    New Zealand voted in favour of a resolution broadening Palestine’s participation at the United Nations General Assembly overnight, Foreign Minister Winston Peters says.    “The resolution enhances the rights of Palestine to participate in the work of the UN General Assembly while stopping short of admitting Palestine as a full ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Speech to the 2024 Infrastructure Symposium
    Introduction Good morning. It’s a great privilege to be here at the 2024 Infrastructure Symposium. I was extremely happy when the Prime Minister asked me to be his Minister for Infrastructure. It is one of the great barriers holding the New Zealand economy back from achieving its potential. Building high ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • $571 million for Defence pay and projects
    Defence Minister Judith Collins today announced the upcoming Budget will include new funding of $571 million for Defence Force pay and projects. “Our servicemen and women do New Zealand proud throughout the world and this funding will help ensure we retain their services and expertise as we navigate an increasingly ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Climate change – mitigating the risks and costs
    New Zealand’s ability to cope with climate change will be strengthened as part of the Government’s focus to build resilience as we rebuild the economy, Climate Change Minister Simon Watts says. “An enduring and long-term approach is needed to provide New Zealanders and the economy with certainty as the climate ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Getting new job seekers on the pathway to work
    Jobseeker beneficiaries who have work obligations must now meet with MSD within two weeks of their benefit starting to determine their next step towards finding a job, Social Development and Employment Minister Louise Upston says. “A key part of the coalition Government’s plan to have 50,000 fewer people on Jobseeker ...
    BeehiveBy beehive.govt.nz
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  • Accelerating Social Investment
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