Written By: - Date published: 4:55 pm, September 30th, 2008 - 24 comments
The RMA is a quick and cheap process in the vast majority of cases, and it is regarded as a world-leading piece of legislation. Few consent applications are refused or appealed. Reforms of the RMA over the years have made it more efficient. The studies show that the delays that do happen in consents being […]
Written By: - Date published: 12:03 pm, September 26th, 2008 - 42 comments
We all knew New Zealand was in recession in the first six months of this year. The official figures have confirmed this. The surprise though is on the upside. The consensus had been that the economy had shrunk 0.5% in the quarter. In fact, it was 0.2%. Remember that this figure occurred during the height of […]
Written By: - Date published: 3:30 pm, September 23rd, 2008 - 16 comments
In principle, a free trade deal between the US and the P4 countries (NZ, Chile, Singapore, and Brunei) is a good thing. If we want our world’s limited resources to be used efficiently, we should not place artificial barriers in the way of trade without good reason. But we must make sure that the FTA […]
Written By: - Date published: 10:00 pm, September 10th, 2008 - 33 comments
We can do good news here on the Standard! According to a World Bank survey shows New Zealand is still ranked second in the world when it comes to ease of doing business. Singapore ranked first with the United States third. According to Clayton Cosgrove: …positive findings included that New Zealand was the easiest country […]
Written By: - Date published: 1:43 am, September 8th, 2008 - 19 comments
Updating a post from a few months ago, here’s how Labour’s Roy Morgan poll numbers are going compared to the price of petrol since the last election (the price of petrol axis is inverted, lower line = higher price). The trend continues, when petrol prices go up support for Labour goes down and vice versa. Labour hit a […]
Written By: - Date published: 6:07 am, September 2nd, 2008 - 7 comments
As part of the Buy NZ Made programme that was part of the Government’s abstention deal with the Greens, the Get NZ Made website has been launched. It works like a normal online shopping site and lists thousands of New Zealand-made products – everything from asphalt to zinnia skirts. Now, if only the Buy NZ […]
Written By: - Date published: 6:00 pm, August 30th, 2008 - 47 comments
A series of graphs from the Social Report. First off, the unemployment rate When the unemployment goes up or down, the practical effect is a decrease or increase in household incomes as the country got poorer under National, unemployment rose, incomes fell, and and the poverty rate rose, compounded by National’s cut benefits and its choice […]
Written By: - Date published: 12:30 pm, August 28th, 2008 - 31 comments
MSD released its Social Report today, an annual publication that collates a wide variety of standard of living measures, and produces this awesome graph. The circle represents the status quo in 1995-97 each spoke represents a different measure (income, crimes per capita etc). If the spoke is longer than the circle than the measure has improved between 1995-97 […]
Written By: - Date published: 9:54 am, August 22nd, 2008 - 16 comments
Reading National’s energy policy last week I was surprised to learn that of 1942MW of new generation that has come online since 2000 1073MW of that has been thermal*. Sure enough, John Key is going around using that as a ground for National’s policy of building more gas power plants and giving up on the […]
Written By: - Date published: 3:00 pm, August 14th, 2008 - 31 comments
A positive and ambitious energy policy that reflects the personality of National leader John Key, was announced today. Old people wiped tears from their eyes and youths vowed never to tag another fence as they heard the ambitious vision National has developed for New Zealand’s energy future under heroic leader, John Key. Actually, there’s 10 […]
Written By: - Date published: 11:52 am, August 14th, 2008 - 23 comments
A policy paper has been released on how the Government’s goal of 90% renewable electricity generation by 2025 can be achieved. Micro-hydro projects and small-scale wind turbines will deliver power to rural areas. Reversibility of new generation will be built into new schemes as part of a more intense focus on sustainability. Solar power will be […]
Written By: - Date published: 8:40 pm, August 10th, 2008 - 40 comments
We’ve heard a lot about the ‘private’ opinions of some senior National MP’s this week. What we haven’t heard much about is the policy direction National was putting out in public during the conference. Rod Oram has a very interesting commentary on that topic in Sunday Star Times “National needs a shake-up”. Rod Oram always […]
Written By: - Date published: 10:46 am, August 8th, 2008 - 23 comments
I’m really starting to wonder why it’s the worst academics who seem to get the most media, Maybe it’s because the good ones don’t make extreme statements. Today, we have Keith Rankin from Unitec arguing that, as we are in recession, we should be increasing borrowing to inject cash and growth into the economy, as […]
Written By: - Date published: 3:27 pm, August 4th, 2008 - 43 comments
Despite the economic slowdown, the labour market is holding up well and wages are up at the record rate. The average hourly wage is now $24, up from $21.90 an hour 2 years ago. That’s a 9.6% increase. Take away 6.1% inflation and the average Kiwi worker is still 3.5% better off than two years […]
Written By: - Date published: 10:42 am, August 4th, 2008 - 28 comments
To justify borrowing for tax cuts, National’s new line is that New Zealand has ‘a growth problem, not a debt problem’. Untrue. (source) New Zealand’s growth has been faster in recent years than trend, faster than it was under National, and faster than growth in our major trade partners. We are in a shallow recession […]
Written By: - Date published: 3:39 pm, August 3rd, 2008 - 71 comments
In a speech described by attendees as ‘more bullet points’, John Key announced to the National Party conference today that National would borrow $5 billion more over 6 years to finance infrastructure – specifically roads and the broadband ‘plan’. The money-man has dressed it up cleverly, of course. A fancy new class of ‘investment vehicle’ will be […]
Written By: - Date published: 2:48 pm, July 24th, 2008 - 54 comments
With the collapse of Hanover Finance, the 25th finance company to go under, Hanover co-owner Mark Hotchin has declared ‘the finance companies’ model is broken’. Here’s an illustration of that model: I think they went wrong at step 1. Of course, as always, it’s the schmucks who lent Hotchin and Watson the money who lose out. […]
Written By: - Date published: 10:52 am, July 24th, 2008 - 20 comments
The Reserve Bank has dropped the Official Cash Rate from 8.25% to 8%. Inflation is well outside the Bank’s 1-3% target range but there appears to be a recognition that there’s no point strangling our economy with high interest rates when that can’t bring down international oil and food prices. Don’t expect mortgage rates to […]
Written By: - Date published: 6:38 am, July 19th, 2008 - 30 comments
We’ve said this before but, seeing as BNZ chief economist Tony Alexander is in the Herald this morning saying ‘the October 1 tax cuts won’t cover inflation’, it’s worth restating: tax cuts are not and can not be the method by which people’s incomes are risen for inflation. Tax cuts cannot be cut year on […]
Written By: - Date published: 12:27 pm, July 15th, 2008 - 18 comments
Inflation was 1.6% in the last quarter, 4% annually, the highest in 13 years. Petrol is driving inflation. By itself petrol accounted for a 1.2% increase. Food is the other big increase, also accounting for a 1.2% and that is itself being driven by international oil prices. The price of oil is beyond our control […]
Written By: - Date published: 3:42 pm, July 11th, 2008 - 69 comments
A worrying report on the future of petrol prices is out today. It predicts petrol could hit $10 a litre in a decade. Nearly all of that increase will be caused by the supply of oil falling as demand pressure grows. Rationing will probably be introduced before that point, otherwise only the rich will be […]
Written By: - Date published: 10:10 am, July 7th, 2008 - 36 comments
Ok. Now that the political theatre is done maybe National and its allies would like to engage in proper debate on the freight trucking industry. Here’s some issues for debate: Road user charges are less than 10% of costs and the increase, half what was recommended meaning petrol vehicles are still subsidising truck companies, is […]
Written By: - Date published: 12:10 pm, July 1st, 2008 - 40 comments
Today marks the launch of KiwiRail. It’s great to have rail back in Kiwi hands, after a decade of asset-stripping. Now comes the task of building up the network so it can provide cheap and clean transport. Businesses are keen to take more freight off the road in the face of skyrocketing fuel prices and long-distance […]
Written By: - Date published: 12:23 pm, June 27th, 2008 - 37 comments
As expected, the economy contracted 0.3% in the March quarter. The drought brought activity in the agricultural sector down after a recent strong run, the housing sector continued to slow off the back of the boom, oil prices are dragging on the economy in general, and mining was down after a surge in the December […]
Written By: - Date published: 12:55 pm, June 25th, 2008 - 60 comments
Petrol is over $2.10 a litre. The price will keep rising both with the ever upward march of the price of crude and the falling NZ dollar. Already, motorists are responding. Road usage in Auckland has fallen 3%. It’s fair to believe it is falling elsewhere too. The only reasonable conclusion is that the number […]
Written By: - Date published: 1:40 pm, June 20th, 2008 - 94 comments
‘Unemployment benefits at record low.’ The number of people receiving the unemployment benefit has fallen to just 17,465. That’s the lowest number since at least 1979. At the same time, Sickness Benefit numbers fell 1,542 (3%) in the last year, DPB numbers are down 12% in the last five years. Overall, benefit numbers have dropped […]
Written By: - Date published: 11:40 am, June 19th, 2008 - 55 comments
Times are going to get harder for workers in the next few years. Unemployment is set to rise to 4.5-6% (still well under 1990s levels). The wages of those who keep their jobs won’t rise as fast. At the same time, prices are rising faster, particularly petrol. What […]
Written By: - Date published: 7:16 am, June 17th, 2008 - 120 comments
A reader sent us this graph. It plots President Bush’s approval rating and the price of petrol. (the price of petrol is upside-down, a fall in the price is a rise on the graph) As you can see, spikes in the price have been followed by a fall in Bush’s support and the reverse is […]
Written By: - Date published: 1:25 pm, June 16th, 2008 - 38 comments
The Government’s independent report on petrol prices is bit of a sop to be the public, really. The world oil price is driving petrol prices; any efficiencies that could be gained in New Zealand would be small and would not change the upward trend. Nor is a Fuel Watch website like Australia’s going to do […]
Written By: - Date published: 10:16 am, June 11th, 2008 - 29 comments
The amazing economic run we’ve experienced under the Labour-led governments is just down to international forces, so National would have us believe. Of course an economy is influenced by international conditions but it’s not the whole story. Under centre-left governments New Zealand has outperformed other economies, after we fell behind under National in the 1990s. And […]
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