Rates, debt, growth and PPP

Written By: - Date published: 9:38 am, October 8th, 2019 - 33 comments
Categories: business, capitalism, Economy, infrastructure, local government, Politics - Tags:

Stuff had an interesting piece looking at rates, taxes and local infrastructure “Rates are much lower than you think, and they’re responsible for miserable growth in cities“. Pretty much everything in that was correct – they just missed out one crucial factor. What was said was.

  • Rates are too low and haven’t grown with the responsibilities of councils.
  • Central government takes the benefit of population growth, and drops the costs on local government. They get the PAYE, GST, and economic growth. They control the filters that ensure that they get the most productive immigrants. About the only thing that they usually have to pay for is providing schools – even that of then just means that they don’t have to close down schools with falling rolls.
  • Local bodies get to finance the infrastructure for housing like local roading, stormwater and drainage, water and sewer connections, public transport, public facilities, parks, and even the mundanities of looking at how power and data is dragged into suburbs for denser housing. Effectively existing rate payers have to go into debt and/or have higher rates for every bit of growth.
  • Sure, as the economists would argue, eventually this pays itself back from growth – but seldom for current rate payers. They are the people who indirectly pay the bulk of the interest and rates upfront for any benefits that appear decades in the future.
  • It is a perverse set of economic incentives  – the  tagline of the last National Government.

But in recent decades, there has be a further blockage. The prevalence of the political blockage caused by Private Public Partnerships (PPP) advocates is a pervasive and insidious political stoppage point.

The basic premise of all PPP projects is that they will reduce the upfront costs by putting up the capital and relieving the rate payers of the financing cost. This is usually couched in terms of keeping rates down. 

Central government tends to support this because it means that they don’t have to help finance immense difficult infrastructure projects like the City Rail Link. Which is why that required transport hub  hasn’t been built in the last half century. It was simply too big for Auckland City (as it was) and too large for the Auckland super city  to finance, but offers immense direct and indirect benefits to the transport structure inside the whole of the Auckland region. 

The problem is that PPP invariably offers nothing to the local bodies apart from no benefit to the ratepayers and results in unowned assets that can’t be directed towards the betterment of the city.

That is the track record of just about every single PPP project that I have looked at so far. Investors in such projects are interested in taking as little risk as possible, so there are invariably parts of the contract that revert most risks back to the local bodies. Generally such parts of the contracts are marked as being commercial confidential – rater payers only find out about then decades later when the nasty expensive bits get exercised.

But the primary reason for it is that the commercial partners are going to be more expensive. The reason is obvious. Investors will be raising capital themselves, some their own, but mostly from purchasing debt at higher rates than the councils could raise debt.

The usual reason given by advocates is that private enterprises is more efficient at running such enterprises.  Which would be a surprise to just about everyone who has taken basic economics – to one degree or another every PPP project is in a monopoly or semi-monopoly position. This could be because they hold a economic position with few alternatives, or it could be what the local bodies are obligated to do in those commercial-in-confidence documents. Things like blocking off free public roads if the compete too strongly with the PPP roads. This is efficient for the PPP investors – not so efficient for the rater payers. 

But there is also the question of time scale when it comes to business efficiency. Personally I’ve always worked in private enterprise in everything from startups to corporates.  They’re fun compared to public enterprises (which I have only had brief liaisons with) because they change a lot.

Virtually no private enterprise business knows what in the hell it is really going to be doing in 5 years. In my experience few can even plan for 18 months. There is always a new broom sweeping through, a change in strategy, a merger, a buyout or a business failure. Staff turnover at a rapid rate. Private industry is efficient in an economic sense because they are flexible – they seek and fill in gaps in the markets rapidly and often efficiently.

They are essentially useless at the kind of long-term planning that is required to build and operate the infrastructure that all businesses operate on top of. 

Which leads me to the PPP political  blockage that wasn’t in the Stuff article. Businesses wanting to do PPP style investments are prepared to put up money for the promotion of their interests, like suckering politicians into signing away their ratepayer’s futures. The usual way that they do this is by raising the spectre of rate rises and the short-term thinking ratepayers groups against them, then suggesting that the way to get the crucial infrastructure is to PPP. 

This inevitably raises the counter-action by anyone who has had the sense to read about the history of PPPs to start working against the proposals. Small business owners, retirees, environmental groups, local NIMBYs, and just about every other group jumps in with their own interests – including the central government.

It seems to invariably deadlock the early and invariably less expensive start to infrastructure in the debades before it is needed.

Personally, to reduce the confusion, I’d suggest that PPPs are simply taken off the table and legislated against. That would clear a major distraction.

And incidentally, the Stuff article looked to me to be a classic PPP PR play – to frame the debate by offering a ‘new and exciting’ (and very tired PR framing) way to unblock the local vs central government blockage over infrastructure.

33 comments on “Rates, debt, growth and PPP ”

  1. Blazer 1

    This nails it perfectly-'Investors in such projects are interested in taking as little risk as possible, so there are invariably parts of the contract that revert most risks back to the local bodies. Generally such parts of the contracts are marked as being commercial confidential – rater payers only find out about then decades later when the nasty expensive bits get exercised.'

    Private capital demands a guaranteed profit=heads we win,tails tax/rate payer loses.

  2. Pat 2

    Rates are too low?…..and yet over the past 20 years mine have quadrupled (an annual compounding increase of 7.7%) in an inflation environment of just over 2% pa….sustainable not.

    The explanation may more truely lie in ever increasing maintenance development demands as outlined in this piece…otherwise known as catabolic collapse

    • Dukeofurl 2.1

      The 'property rate' hasnt been rising as fast as the range of uniform annual charges which are the same for every property.

      • Pat 2.1.1

        That doth butter no parsnips when the bottom line increase is a factorial increase above CPI

  3. Gosman 3

    Okay so you remove PPP from being an option. Great. Then what? Council's are still faced with having to fund infrastructure projects. What is your proposed solution?

    • Drowsy M. Kram 3.1

      Maybe the Welsh Government's 'Mutual Investment Model' (also being considered for Scotland) – to complete "projects necessary for the growth of the economy", naturally.

      "But public confidence in private infrastructure investment has been lost. “Poor value for money”, “sham” and “rip-off” are all terms used to describe the use of public private partnerships (PPPs). UK Government has abolished the use of existing PPP models (PFI and PF2) for future projects. High-profile collapses to sector participants, such as Carillion, have amplified distrust in PPPs."

      https://www.scotsman.com/news/opinion/friends/public-service-funding-must-find-a-different-type-of-ppp-michael-urquhart-1-5018150

      • Gosman 3.1.1

        MIM's are just PPP's rebranded with slight tweaks.

        • Drowsy M. Kram 3.1.1.1

          So MIMs are just slightly tweaked PPPs – could you provide some information and/or links in support of that opinion?

          • Phil 3.1.1.1.1

            It's literally right there in the conclusion paragraph of your own link.

            It is clear that PPP is not a panacea to the problems of public service funding. For all that it is maligned, however, it provides an opportunity to deliver much needed improvement to public infrastructure and, when managed effectively, can work well for all parties. With its focus on value for money, profit sharing and delivery of community benefits, there’s hope that the Mutual Investment Model can lead us down the path towards public private reconciliation, and ultimately the completion of projects necessary for the growth of the economy and the benefit of public Scotland and the wider UK.

            • Drowsy M. Kram 3.1.1.1.1.1

              Thanks Phil – I read this as saying that MIMs would focus on "value for money, profit sharing and delivery of community benefits", the implication being that these were not the main focus of PPPs. That, and private funders accepting a greater share of risks.

              "MIM schemes will see private partners build and maintain public assets. In return, the Welsh Government will pay a fee to the private partner, which will cover the cost of construction, maintenance and financing the project.

              At the end of the contract the asset will be transferred into public ownership.

              During the construction phases of the projects, private partners will help the Welsh Government create apprenticeships and traineeships to benefit local communities.

              Current MIM schemes include:

              • redevelopment of Velindre Cancer Centre, Cardiff
              • work to complete the dualling of the A465 from Dowlais Top to Hirwaun
              • additional investment in Band B of the 21st Century Schools Programme"
    • lprent 3.2

      Okay so you remove PPP from being an option.

      It hasn't exactly been a realistic option in most high growth areas. For instance try pointing to an actual PPP project in the highest growth area in NZ – Auckland.

      If you'd pull your brain out of your arse for a second and read my points, every debate about PPP in Auckland and most places I've looked, has simply slowed down the either the infrastructure being put in, OR slowed the subsequent projects as they argued about the efficacy of the last one. Clearly they are a failed ‘solution’.

      It really is only the anally retentive ideological idiots who seem to be interested in PPP. For anyone with brains to look up the material on them, it is just an impediment to development.

      Council's are still faced with having to fund infrastructure projects. What is your proposed solution?

      There are several basic systems as far as I can see for different types of systems. Many of them should be done at the same time.

      • Use taxation. Preferably central taxation where it relates to population growth. The biggest issue that happens in Auckland is that we get idiotic governments like the Key one increasing immigration and internal migration without bothering to fund it beforehand.
      • Charge developers with the up-front cost of connecting to local services. If there is a greenfield housing development, that would involve all of the roads, water, etc. If it is a infill or brownfield then the marginal cost of providing those facilities. This will put the costs up of upfront development to their true levels rather than causing ratepayers to subsidise developments.
      • Use local body raised debt. This would require that central government removes the current limits that they are using to try to push local bodies to PPP. But then charge the developers or new residents directly for the cost as a form,, of user pays.
      • Allow local bodies to exclude migration – ie stop growth. The simplest is charge for becoming a resident, but there are a whole number of ways to make sure that growth is accommodated to a sustainable rate. My favourite one in Auckland would be limit new migrants to Auckland from using cars – or raising the cost of parking in various ways – for instance like preventing all parking on the side of arterial routes.. Either would reduce the fast flush congestion issues from migration into urban areas from extra cars.

      The point is that if we get an idiotic government like the last one who increase immigration dramatically and then expect that somewhere like Auckland should pay for their 'costless' decisions, then there need to be constraints

  4. Dukeofurl 4

    "Local bodies get to finance the infrastructure for housing like local roading, stormwater and drainage, water and sewer connections, public transport, public facilities, parks, and even the mundanities of looking at how power and data is dragged into suburbs for denser housing."

    Thats not completely true. Councils grab large 'infrastructure charges for all new sections, to cover parks, roads, libraries.

    https://www.aucklandcouncil.govt.nz/building-and-consents/development-contributions/Pages/development-contribution-fees.aspx

    Its a sliding fee , but in Auckland would be over $50k per new section.

    Same goes for user pays brand new houses and business 'services' like data ( Chorus doesnt connect for free), power ( Vector charges each new house a network connection more than $12k, a business will be more), water and sewage( Watercare charge sover $15k for a network connection, ) Those network charges are on top of actual physical connection charges to their system.

    • lprent 4.1

      Sure. However the true cost isn't nearly covered by those costs. Roading really really costs when they have to pay for all of the roads that connect a subdivision to the main roading network. Not to mention the extra congestion. You’ll note that there are no other ways for councils to regain those costs at present apart from rates? Plus whatever the central government deigns to put into via the NZTA.

      As well as a full cost then it should include all of the lost opportunity costs of other uses for those rates as well.

      It doesn't matter how you try to cut it, existing ratepayers are effectively paying a subsidy to developers and new residents. They also have very little input to the decisions that cause that to happen.

      Think of how much notice National gave Auckland as they effectively added 2-4% per year into the city, and then very late after the congestion increased, reluctantly started to divert the funds from Roads of Significance to National in the countryside to deal with the daily congestion on the roading network here.

  5. Ad 5

    NZTA and Corrections are the current strong exponents of PPPs.

    I'm not aware of any instigated by local government here.

    The current one under debate by MoT is the Auckland light rail project. Personally I'm pretty happy that isn't being debated during this local election.

    What you might see a bit more of is Alliances and other long term commercial partnerships between CCOs and one or two contractors for both capital and operations.

    • lprent 5.1

      What you might see a bit more of is Alliances and other long term commercial partnerships between CCOs and one or two contractors for both capital and operations.

      That I could live with. It allows scale to build and continuity planning. .

      I'm not aware of any instigated by local government here.

      Nor am I. However there has been considerable political pressure to use them for quite some time. Decades.

      I think that much of the detail of the Act/National super city stitch up was an attempt to end-run around it both with the CCO structure and the small size of the decision making council.

      So was the cap placed by National on the debt levels in local government in Auckland – something seemed designed to make PPPs look better by pushing the costs into the future.

      • Ad 5.1.1

        I almost want to get rid of CCOs, until I see some of the morons who get onto Councils.

        The biggest loss was the National government forcing local governments to sell off their electricity lines companies. Losing those was a massive income loss and executive power loss.

        The second biggest loss was the next National government forcing local governments to sell off their bus companies. Losing them was just a massive network power loss.

        And the third biggest loss was National forcing local governments to sell off their housing stock by stopping any public subsidy to them. That to me was a massive social crime.

        After that the 1989 Act gave Councils a power of general competency. This generated some failures, but also interesting things like setting up film studios and the like.

        Under National local governments have lost and lost and lost, in both income power and asset generation.

        • lprent 5.1.1.1

          I almost want to get rid of CCOs, until I see some of the morons who get onto Councils.

          Yeah I know. Every time I look at the history of C&R for instance or Auckland Now. But some opponents to most things on the left as well.

          Paradoxically having the ownership separated from the operational control makes it easier to defend the local government control infrastructural assets required to allow growth. Harder to get in and do the kinds of things that the Actoids really wanted to do. And it adds a filter between the politicians and the nimby lobbyists.

          For instance, the AT restructuring of the bus routes has been effective and widescale. It was damn near impossible to change for decades and was pretty damn obsolete. For example, it used to be pretty impossible to get from Grey Lynn to St Lukes unless you liked to walk a lot – something that I can't do since I wore out the pad between my big toe and foot bones.

          Routes still cause issues – for instance with city divide between Newton / Grafton Gully. But a lot of that was made worse by the misuse of K Rd which is steadily being fixed when they put in peak hour bus lanes. The only real routes across the gully are Bond Street, Newton Road (no buses), and K Rd (massive congestion at peak). Means that a route down to the bottom of Parnell that takes me 10-15 minutes by bike, and at least an hour by bus. But e-bikes and e-scooters make that a lot easier these days.

          I understand that the routes further out of the city are more rational as well. Just too dependent on the motorways. Trains help by they really need to put dedicated bus lanes on the motorways to make the trip more flexible and faster. Kick some cars out of the congestion and make the buses more attractive.

          The idiot naysayers like C&R types in the past always never seemed to get the basic idea that there needs to be enough parking around public transport hubs. The transport spokes to the stations simply doesn't work – especially in those weird roading networks on the North Shore.

  6. michelle 6

    high rates and high insurance costs are now a huge barrier to people buying homes its pricing them out and it needs to be curbed if not we need to change the system it is not fair to future generations bad enough we are destroying the planet and them leaving many homeless accept the rich of course

    • Craig H 6.1

      Rates have not gone up as a share of the economy since 1890 (not a typo) – that suggests rates are not the problem, land costs are.

  7. Stuart Munro. 7

    I don't feel that PPPs are inherently flawed, but they have often been chosen ideologically and not monitored closely or disciplined when they fall short of good practice. Where they offer real benefits is if the private business has substantial existing expertise and business in the function they are to perform. A substantial ongoing public contract offers them stability and thus the ability to improve their efficiency.

    The discipline is crucial however, and in NZ frankly corrupt practices like those of Southern Response have avoided this. It's fair to say that NZ government is not fit to operate PPPs, they lack the essential rigour, so taking them off the table is only sensible.

    • Phil 7.1

      It's fair to say that NZ government is not fit to operate PPPs, they lack the essential rigour, so taking them off the table is only sensible.

      If your statement is true, then the government is not fit to operate anything.

      The governance that should sit over the top of a PPP is not fundamentally different to the governance that already sits over the top of a Crown Operating Entity or a private company.

      • Stuart Munro. 7.1.1

        "If your statement is true, then the government is not fit to operate anything."

        Well it's pretty much true of the last government, and I imagine it's true for some of the operations of the coalition. Bill English's wrecking of Solid Energy should have ended his political career, destroying getting on for a billion in public asset value without strident and sustained calls for his resignation shows a lack of rigour, this time on the part of our media.

        • greywarshark 7.1.1.1

          The coal miner and the judge – musings by Peter Cook about rigour. Councils and other bodies should put contestants through this sort of rigorous exam before being accepted

          • Stuart Munro. 7.1.1.1.1

            Much though I like Peter Cook, I think Billy Connelly has a better grounding in what the 'lower classes actually have to say for themselves, and it is frequently a lot more to the point than "Oh I've just found a lump of coal".

            "When I was nominated for a knighthood, the woman interviewing me said, very nicely, ‘It’ll be strange for you, having a knighthood, coming from nothing.’ And I said, I don’t come from nothing. I come from something.”

            As I get older and I watch the increasingly frequent and abject failure of our sneering neoliberal professional classes, I have more and more time for the less pretentious people they've shat all over, without in most cases, producing any of the social goods they promised to worm their way into their elevated positions.

            • greywarshark 7.1.1.1.1.1

              It is pretty hard to keep up to my family's standards. They would like to move around their houses so hermetically that they wouldn't leave a footprint. And too often the tch tch comes out and why do 'they' do that etc. They just don't know how good some people are, and if such people do them a favour, the m-c take it as recognition of their superior entitlement.

  8. Sacha 8

    The Stuff article is another excuse to give the business roundtable's tame economist Mr Crampton another platform to air his 80s neoliberal nonsense. Heard it before, seen the results. No thanks.

    • Gosman 8.1

      Do you not think councils should get more of the benefits rather than footing most of the costs from developments in their areas?

      • lprent 8.1.1

        As I said – there is no obvious 'looking back from 30 years' economic evidence that PPPs help benefit the ratepayers or taxpayers. At least I have never seen any credible examples. I have seen a number of promotional investments for investing in them that laud the benefits for shareholders which are somewhat disquieting when you think through the implications.

        Mostly what seems to happen is that ratepayers and taxpayers just wind up paying more either in user pays or with ridiculous support for monopolistic profits at the expense of functional utility. Or just with practices that lead to long term problems. Look at the fiasco of the Serco Mt Eden prison. Or the perverse incentives at Wiri where a simple minded bonus system rewards low staffing levels and non-performance of declared functions because of what may be a local variation.

        The problem is that chronic understaffing in prisons usually just results eventually in the taxpayers having to put in police to quell riots. Especially when prison staff turns over too fast or goes on strike in private prisons (there are too many examples of this in the US to even mention). Pretty typical short-term business semi-monopolistic style thinking.

        These days it is only the ideological idiots, profiteers and corrupt or lazy politicians who seem to like PPPs. Everyone else has been looking at their long-term performance and not disliking the costs as being higher then the benefits.

  9. bwaghorn 10

    Given that next to nobody votes in local elections isnt it time we shit canned councils . Then doubled the amount of electorates in the country . And have government do it all .

    • Government is a shitcan we want to keep. Having local government is a wrap of bubble wrap between us with our Council, and the plopping globulous mess that means we are either in Parliament or by a Rotorua Hot Pool. Don't know about Regional Councils though.

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    Nick’s KōreroBy Nick Rockel
    1 day ago
  • Gordon Campbell on ACT’s charter schools experiment
    If there was still any doubt as to who is actually running this government – and it isn’t the buffoon from Botany – then this week’s announcement of a huge spend up on charter schools has settled the matter. While jobs and public services continue to be cut in the ...
    1 day ago
  • Drought fuels wildfire concerns as Canada braces for another intense summer
    This is a re-post from Yale Climate Connections by Gaye Taylor As widespread drought raises expectations for a repeat of last year’s ferocious wildfire season, response teams across Canada are grappling with the rapidly changing face of fire in a warming climate. No longer quenched by winter, nor quelled by the ...
    1 day ago
  • Bernard’s Dawn Chorus and pick ‘n’ mix for Thursday, May 16
    Half of Christchurch City Holdings Ltd’s directors and its chair resigned en masse last night in protest at Christchurch City Council’s demand to front-load dividends File Photo: Lynn Grieveson / The KākāTL;DR: The chair of Christchurch City Council’s investment company and four of its independent directors resigned in protest last ...
    The KakaBy Bernard Hickey
    1 day ago
  • Controversial proposal could threaten coalition
    The University of Waikato has reworded an advertisement that begins the tender process for its new $300 million-plus medical school even though the Government still needs to approve it. However, even the reworded ad contains an architect’s visualisations of what the school might look like. ACT leader David Seymour told ...
    PolitikBy Richard Harman
    1 day ago
  • Of Rings of Power Annatar, Dramatic Irony, and Disguises
    As a follow-up to the Rings of Power trailer discussion, I thought I needed to add something. There has been some online mockery about the use of the same actor for both the Halbrand and Annatar incarnations of Sauron. The reasoning is that Halbrand with a shave and a new ...
    2 days ago
  • The future of Nick's Kōrero.
    This isn’t quite as dramatic as the title might suggest. I’m not going anywhere, but there is something I wanted to talk to you about.Let’s start with a typical day.Most days I send out a newsletter in the morning. If I’ve written a lot the previous evening it might be ...
    Nick’s KōreroBy Nick Rockel
    2 days ago
  • The PM promises tax relief in the Budget – but will it be enough to satisfy the Taxpayers’ Union...
    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
    2 days 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
    2 days 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
    2 days 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 ...
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    3 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
    4 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
    4 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
    4 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 ...
    5 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 ...
    6 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

  • District Court Judges appointed
    Attorney-General Judith Collins has announced the appointment of three new District Court Judges, to replace Judges who have recently retired. Peter James Davey of Auckland has been appointed a District Court Judge with a jury jurisdiction to be based at Whangarei. Mr Davey initially started work as a law clerk/solicitor with ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Unions should put learning ahead of ideology
    Associate Education Minister David Seymour is calling on the Post Primary Teachers’ Association (PPTA) to put ideology to the side and focus on students’ learning, in reaction to the union holding paid teacher meetings across New Zealand about charter schools.     “The PPTA is disrupting schools up and down the ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Craig Stobo appointed as chair of FMA
    Commerce and Consumer Affairs Minister Andrew Bayly today announced the appointment of Craig Stobo as the new chair of the Financial Markets Authority (FMA). Mr Stobo takes over from Mark Todd, whose term expired at the end of April. Mr Stobo’s appointment is for a five-year term. “The FMA plays ...
    BeehiveBy beehive.govt.nz
    2 hours ago
  • Budget 2024 invests in lifeguards and coastguard
    Surf Life Saving New Zealand and Coastguard New Zealand will continue to be able to keep people safe in, on, and around the water following a funding boost of $63.644 million over four years, Transport Minister Simeon Brown and Associate Transport Minister Matt Doocey say. “Heading to the beach for ...
    BeehiveBy beehive.govt.nz
    4 hours 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
    20 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
    22 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
    23 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
    24 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
    1 day 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
    1 day 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
    4 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
    4 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
    4 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
    5 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
    7 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
    1 week ago
  • Climate change – mitigating the risks and costs
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