Budget 2008: Analysis

Written By: - Date published: 3:00 pm, May 22nd, 2008 - 69 comments
Categories: budget 2008, election 2008 - Tags:

The tax cuts are smaller up front than Labour had been hoping to deliver but the economic position at present means there is simply not the money in the coffers to give huge cuts right now. Labour is bringing forward the cuts and the boost to Working for Families to October 1, instead of April 1 which would be the usual date, and targeting money at lower income families first. The cuts in following years will be larger than most expected and will spread the benefits into upper middle income levels ($50K plus), with the tax bill for someone on $50,000 reducing 15% by 2011.

Labour’s broadband plan is much more sophisticated than National’s and will actually work in delivering better internet without putting Telecom back into a monopoly position. It doesn’t aim to build in record time a network massive bandwidth that most people have no use for. Instead, it takes a more prudent and cost-effective approach to gradually increase broadband speeds. Sure, National’s investment figure is bigger but there is a vacuum behind it, as if the plan was made up on day and Key plucked the$1.5 billion figure from the air. It was good to see that Labour’s plan specifically includes money for a new trans-Tasman cable, for which the government will be anchor tenant. It’s all very well having lightening fact connections in New Zealand but not much good if the data can’t get overseas. The Labour plan also targets those who have most use for faster broadband, businesses.

The tax cuts and the global economic slowdown mean the fiscal position of the Government will be much tighter in the coming years than it has been in the last few budgets. The operating deficit will be down to a couple of percent of GDP. Government debt will remain stable at around 18% of GDP over the next three years. Labour is not increasing debt to pay for tax cuts but rather than decrease debt further it is giving tax cuts. By phasing the cuts in over three years, the inflationary impact from them is reduced. Inflation is expected to fall under 3% in the medium term. That’s the Reserve target, so interest rates can be expected within the nest few months.

This means there is little free room, only about $1.7 billion, for spending or tax cuts promises heading into the election without going into an operating deficit (that is, borrowing to fund day to day spending, rather than borrowing for investment). Which sets us up for an interesting election: where will the money come from for both major parties to offer vote-grabbing policies, and what will be left for policy concessions to minor parties in governing deals?

As we predicted, this budget leaves National in a bind. If they offer larger tax cuts than Labour, it will have to increase borrowing or cut spending. It also eliminates the over-taxation argument. There was this weird perception that Cullen was sitting on a huge pile of gold at the end of each year, when, in fact, the operating surpluses were being used to fund capital investment and pay-down debt. Now, Labour has delivered tax cuts and kept debt levels steady. It has already meant less new social spending than Labour would probably have liked.

It now comes down to a simple choice for voters: reasonable tax cuts, not more government debt, and moderate increases in government spending or large tax cuts (mostly for the rich, no doubt), more government debt, and less spending on public services.

69 comments on “Budget 2008: Analysis ”

  1. IrishBill 1

    Hey Steve, good stuff. I see Key is already paving the way for tax cuts for the rich by talking about them as creating an incentive for people to become wealthier. Other than that Spin bingo was pretty much dead right.

    Good budget I thought. I would have liked to see the tax cuts limited to bracket-creep only but it’s good to see some serious and sensible investment. I’m not as sure as you about the contestable fund for broadband (it smells a little bit like “let the market decide”) and I would have liked to see benefits increased.

  2. T-rex 2

    Just read the summary – Good on Cullen for actually acting like the minister of finance for a responsible government, rather than digging the nation into a hole for the sake of playing father christmas for the next 12 months.

    Yes Bill English, I’m looking at you.

  3. randal 3

    randal is yer avridge kiwi joker and it sounded pretty good to me

  4. erikter 4

    “The tax cuts are smaller up front than Labour had been hoping to deliver but the economic position at present means there is simply not the money in the coffers to give huge cuts right now.”

    Following your logic, SP, why didn’t Labour offer tax cuts given the massive surpluses of the last few years? Why now and not then?

    And the Nobel Prize of Cynicism and Disregard for the NZ Public goes to …… Michael Cullen.

  5. Matthew Pilott 5

    Following your logic, SP, why didn’t Labour offer tax cuts given the massive surpluses of the last few years? Why now and not then?

    erikter, did you read the bit where massive surpluses were spent on paying debt? I guess not.

  6. Because reducing debt, and saving for the future in previous budgets – it’s about balance, eh?

  7. $12 bucks a week!!!

    I hope Aunty Helen is enjoying her last few days on the job.

  8. Opps I mean months.

  9. gobsmacked 9

    I’m happy with the budget. I don’t believe in the media myth of “circuit-breaker” – nothing Cullen could have said today would have sent Labour zooming up the polls – not even “I resign”! 😉 But it does force National to copy or cut, and so a real debate can start.

    The budget delivers in many of the right areas, and if Labour do lose the election, National can either keep what Labour have delivered, or get dumped out after one fractious term and at least one change of leader. (Hey, I’m almost looking forward to seeing them do it – it’ll be quite a show).

  10. chris 10

    I’m assuming that you Brett Dale are going to be better off by $12 a week which means you’re earning less than 30k p/a.If that’s the case you’ve got me wondering, WTF do you support the Tories?.

  11. Occasional Observer 11

    Nobody believes Labour will deliver them.

    Nine years of no tax cuts, and only now Cullen begrudgingly offers this paltry, measly, sum.

    Labour doesn’t trust New Zealanders with their own money. Their tax cut plans have no credibility.

    This budget feels very much like the one that David Caygill delivered in 1990: remember the $89 million surplus which turned into a multi-billion dollar deficit?

    National will be left to bring some responsible fiscal management back to New Zealand.

    Good on you all, at the Standard, for risking your own credibility as well, though. After months and months of saying tax cuts were bad, you’re doing an excellent about-face of heralding them now. Yes, yes, we get the message, Steve. Labour good, National bad.

    For a guy who doesn’t support the Labour Party, Steve, you’re putting an outstanding effort into confusing us.

  12. OO. The tax cuts are going to be passed into law this evening. National will vote against it.

    We’ve never said tax cuts are bad, we’ve said there are responsible tax cuts, sustainable ones that don’t cut spending or necessitate borrowing, that help out those in need, and bad tax cuts, ones that need to be funded through spending cuts or borrowing and go mainy to the rich.

  13. Chris:

    Because I believe in choice and personal responsibility.

    I believe that if ya have extra cash at the end of your pay cheque, you should invest it, and not spend it on booze, cigarettes or at the TAB, unlike those on the left.

  14. Steve Pierson:

    Perhaps Tax cuts should not only be for those who are in need, but for those who actually work.

  15. IrishBill 15

    I’ve said tax-cuts are bad and I stand by that. See my first comment.

  16. gobsmacked 16

    “I believe that if ya have extra cash at the end of your pay cheque, you should invest it, and not spend it on booze, cigarettes or at the TAB”

    Nanny State!

  17. chris 17

    So Brett, you think that because I’ve always supported the Labour movement I piss my money away on drink, fags and gambling.
    I guess you must be a Tory but on 30k p/a I doubt you’d be of the “born to rule” variety.

  18. Matthew Pilott 18

    I believe that if ya have extra cash at the end of your pay cheque, you should invest it, and not spend it on booze, cigarettes or at the TAB, unlike those on the left.

    Now you’re not entirely stupid Brett, why do you get these urges to lash out like a filthy bigot every now and then?

  19. erikter 19

    SP would make Houdini and any contortionist proud.

    After endless ranting about odious tax cuts, he’s now found they come in two flavours: “good” and “bad”. Of course, the ones promised by Cullen are “good”.

    They are just absurd statements from a Labour apologist.

  20. Matthew Pilott 20

    Occasional Observer – people don’t fall for NP spin as easily as you presumably do.

    National will be left to bring some responsible fiscal management back to New Zealand.

    Debt-funded tax cuts eh? Whoopeee! You speak with some certainty about a party with no policy – I find your blind faith almost touching, though vaguely lemmingesque, OO.

  21. Matthew Pilott:

    How is my comment bigoted?

    Dont you agree that a high percentage of people on very low wages or benefits, drink, gamble and smoke and go to KFC?

    Did I mention someone’s race/gender/religion/culture????

    Please tell me.

  22. Matthew Pilott 22

    Don’t be daft Brett.

    You tell me how it is you came to the conclusion that “the left” wants poor people to spend money on diggers, turps and gambling. And KFC, so it seems.

  23. Would you agree people who are on a low wage,are more likely to vote Labour than National?

    Would you also agree, that people on a low wage tend to drink and smoke and play the pokies more???

    Do you also agree that a lot of poorer people have a poor diet, eg: KFC and McDonald’s.

    Anyway, whats the difference between a bigot and a filthy bigot?

  24. Felix 24

    Brett

    If you look closely you can see it around the eyes.

    Peter Brown – garden variety bigot.
    Pauline Hanson – filthy bigot.

  25. Matthew Pilott 25

    Brett, that has nothing to do with whether the left wants people to spend their money on vices. I’m part of ‘the left’ by any general definition, and I don’t want people to spend all their money on crap that’s bad for them – so where did you get the idea that that is what ‘the left’ wants?

    I guess the difference is that I was feeling grumpy in general (read: ill and sore), on top of being annoyed at your comment.

  26. I didnt say the left wants people to spend money on their vices.

    I said:

    I believe that if ya have extra cash at the end of your pay cheque, you should invest it, and not spend it on booze, cigarettes or at the TAB, unlike those on the left.

    I personally believe if you have extras cash, YOU should invest it, but a lot of poorer people spend their extra cash on the above mention things, and people who are poorer tend to vote Labour.

    I am not suggesting that LABOUR wants people to spend their money on this, quite the opposite in fact.

  27. Steve 27

    What with the exodus to Australia (surely only going to continue unabated now) and the retirement (rich pricks)of baby boomers what happens when the number of people reliant on the state and on various arrays of govt benefits and handouts and middle class assistance paid for by other people out number the amount of people working for a living and funding these measures? Is there a tipping point? Do they just raise taxes accordingly in another couple of years? Is that what the global warming thing and its associated taxes is really about?

    For example – This WFF thing makes me sick. Why should I as a single person fund other people’s lives just to have families? At the very least couples who want to have children but can’t should be compensated by the state as they miss out, if we’re going down that road.

    I just think the govt and the reliance of them that they create needs to be reined in big time. For a start why 120 + mps for a country of 4 million? Why twenty something indvidual health boards and countless councils, departments, commisisions? You’d think NZ was an empire not a small country.

    The indians only need about a few chiefs, not about 10,000 of them.

  28. Vanilla Eis 28

    Steve: Those kids qualifying their parents for WFF will be the ones paying your Super in 40 years, so I wouldn’t begrudge them too much just now.

    As for the number of MP’s, every Political Science lecturer I’ve talked to seems to think that proportionately we’re under-represented, especially when you consider countries such as the United States and Australia. We don’t have both State and Federal Governments, but feel free to move there and moan about politician numbers if you wish.

  29. Policy Parrot 29

    “I didnt say the left wants people to spend money on their vices.

    I said:

    I believe that if ya have extra cash at the end of your pay cheque, you should invest it, and not spend it on booze, cigarettes or at the TAB, unlike those on the left.

    I personally believe if you have extras cash, YOU should invest it, but a lot of poorer people spend their extra cash on the above mention things, and people who are poorer tend to vote Labour.

    I am not suggesting that LABOUR wants people to spend their money on this, quite the opposite in fact.”

    I guess that would be your excuse to give the poor nothing then, eh Brett?

  30. pinetree 30

    “The tax cuts are going to be passed into law this evening. National will vote against it…..”

    Really? I’d have thought they have pout themselves in a space where they’d have to vote for it….there’s enough hypocrisy floating around as it is without that little farce…

    Not a bad budget I thought, it’s never going to be entirely to my way of thinking, but not much to quibble on the direction of the spend – I’m broadly happy with where it goes (my priorities are a little different, but that’s a tory/left thing), but I’m always keen to see that the execution/implementation is the best that it can be…

    …but sometimes I do feel that the weight (or true potential) of a dollar is not really felt in the right places….opportunity cost and all that….

    We’ll see what key comes up with……whenever that is….I’m growing impatient, if for no other reason to have something decent to debate with you guys !

  31. gobsmacked 31

    Key has announced National’s economic policy. He did it tonight on Campbell Live, and again on Close-Up. He was pressed by both the interviewers to reveal details, and finally, he did. And National’s policy is …

    *drum roll*

    They’re going to close the embassy in Sweden.

    I am not making this up. You couldn’t.

  32. But I wanted to be the Ambassador to Sweden! The fu*kr’s just lost my vote…

  33. Might as well as close the Swedish embassy, we dont do much business with them.

    If any labour supporter thinks that is national’s main policy then you better grow up.

    Wait until the announcement comes, Aunty Helen’s 12 bucks is going to be nothing.

  34. POLICY PARROT:

    I would give the poor a better education, one where you learn about business and budgeting and the real world, not PC teachings.

    I would give the poor, those on low incomes like myself, a bigger tax cut, and tell them, its your money you choose to do what you like it with it, its your choice.

    I would cut GST and make lower the petrol tax.

  35. DS 35

    “For a start why 120 + mps for a country of 4 million? Why twenty something indvidual health boards and countless councils, departments, commisisions? You’d think NZ was an empire not a small country.”

    The US state of New Hampshire has a state legislature where the lower house has 400 members. New Hampshire has about 1.2 million people, so if New Zealand had the same level of representation, we’d have over 1300 MPs.

    New Zealand, with a mere 120 MPs, is hardly overrepresented.

  36. pinetree 36

    “It was good to see that Labour?s plan specifically includes money for a new trans-Tasman cable…”

    Just out of interest….that wouldn’t be the Kordia link would it….if so then I hope the $15m (?) is not just underwritten SoE capex….

    Still, nice to break the Sthn X “monopoly”, as I believe Telstra is whacking a whopping great big piece of glass Sydney to Hawaii….

  37. Lew 37

    From what I can stomach of the KB comment thread and those comments above, i see a few common arguments from those who don’t like these tax cuts. Here are three, there are probably more:

    1. `Too much, and yet simultaneously not enough’. This one seems logically indefensible unless you presume that what people really mean is `not targetted at me’.

    2. `There is a billion dollars per year worth of fat in the public service which can be cut without significant adverse impacts on taxpayers’. Leaving aside the fact that John Key has said he’d cap the core public service rather than cut it, taking this as given without due diligence is an incredibly risky platform upon which to base policy.

    3. `Cullen doesn’t believe it’, aka `Cullen is being hypocritical’. So what? The legislation will be passed by the time you get up tomorrow morning. If it’s really policy you care about, well, here’s some policy for you. This one is a masked `I don’t like Cullen and I won’t like him no matter what he does.’ A fair and reasonable standpoint, but only if people declare it as such.

    L

  38. National disgrace 38

    Brett, closing the embassy may not be National’s main policy, but it’s the only one he was able to articulate when questioned on both current affairs shows tonight. He’s so impressive.

  39. gobsmacked 39

    National Disgrace is right. It’s not my job to think up policies for John Key. It’s his job to tell us HIS policies. He wants to be Prime Minister. He was asked for policy, and closing the embassy in Sweden was his reply (a fact that you have not disputed, Brett, because he said it).

    Since he used exactly the same line on both programmes, that was clearly the prepared message that he wanted to get across. Bigger tax cuts, one less embassy. (Must be a feckin huge embassy …)

    Brett, if you don’t like Key’s answers, tell him, not us.

  40. ak 40

    The Swedish embassy is this years “hip-hop tours” without the veiled racism. Brash-lite.

    Like the thousands of useless “health bureaucrats” twiddling their thumbs through $5 billion a year, Slippery is about to find his mythological demons a little hard to deliver on a plate – particularly with so many already “me-tooed” off the menu.

    The inherent contradiction of running simultaneous “Corrupt! Corrupt!”, “NZ Sucks” and “We’ll do the Same” campaigns is coming back to bite their tight, shiny wee tooshes.

    Honeymoon’s over, smiling assassin, and them good ol’ EFA blues are a-crooning: you can’t buy my love no more.

  41. If you guys really think all we will here from key is about the Swedish embassy, well your sadly mistaken.

    It wasnt the time or place for Key to go through his policies, but when he does, the country will sit up and take notice.

  42. Lew 42

    There’s poetry on this comment thread. Not good poetry, but real love has gone into it.

    L

  43. outofbed 43

    Anyone else hear Keys budget reply speech comments, about not being interested in Vietnam or the Sprinkbok tour?
    And Clark’s later put down ? Loved it

  44. erikter 44

    “But I wanted to be the Ambassador to Sweden!”

    Don’t worry robinson, we’ll send you to Somalia, instead.

  45. T-Rex 45

    Brett, you make my brain sad.

  46. randal 46

    listen to the crap leighton smith is pushing out on newstalk zb this morning…will somebody please buy him a ticket out of here

  47. Lew 47

    randal: He actually said he’d leave of his own accord: “If you don’t throw this lot out on their collective arses, then I’m leaving the country”.

    L

  48. Pascal's bookie 48

    “If you don’t throw this lot out on their collective arses, then I’m leaving the country’.

    Labour should put that on a billboard with his picture.

  49. National disgrace 49

    You’re right Brett, if John Key did announce an actual policy, I would indeed sit up and take notice! I’d be shocked. His ‘peek a boo” wait and see is not cute, or credible any more. Pathetic. He’s history.
    I note interest rates have shot up already in response to the ‘miserable block of cheese’. Imagine how much your mortgage will go up if Key pledges to borrow and splash three times as much.

  50. erikter 50

    Don’t you worry about Leighton Smith.

    He will remain in the country because his prediction will come to pass: Labour will be soundly defeated at the polls!

  51. Matthew Pilott 51

    I believe that if ya have extra cash at the end of your pay cheque, you should invest it, and not spend it on booze, cigarettes or at the TAB, unlike those on the left.

    Generally being a cogent commentor, Brett, I’ll give you the benefit of the doubt and retract the ‘filthy bigot’ remark. I read that as a comparison of your beliefs with those on the left, not on the spending habits of the unwashed masses.

    It’s still a fairly ugly stereotype. A lot of people with more money than sense make some big gambles and hit the sauce with the best of ’em, but I truly can’t be bothered rehashing a debate on worthless stereotypes.

    You just sound more nanny-state than the incumbent when you make such a statement: “don’t give them money, they’ll just fritter it away. Tsk tsk.”

    For example – This WFF thing makes me sick. Why should I as a single person fund other people’s lives just to have families?

    Steve gets gastronomically discombobulated over WFF. Steve, WFF being a tax rebate, families are getting more of their own tax take back. If you’re going to blow chunks over something, it pays to be sure you know what you’re talking about.

    Erikter, you’re the one who wants fully privatised healthcare and education – I daresay the state doesn’t do much public provisioning in Somalia, I think you’d be far happier in your small-governmental utopia than ‘sod – I don’t think he minds paying taxes for a decent society.

    I think we’ll send you there, you’ll be so happy! Low tax, user pays, oh gosh you’ll just love it!

  52. Billy 52

    I have a question or two. In previous years since about 2004, Dr Cullen has told us that a cautious fiscal stance was necessary both as a buffer against possible future economic shocks and because too great a spending stimulus could also have placed undue pressure on monetary conditions.

    So now we have a tax cut. They cause the surplus to become very skinny indeed, leaving no further protection against economic shocks. Interest rates are still very high (in fact, higher than at any time since 2004).

    So was he lying before when he said there was no room for tax cuts? If Dr Cullen is to be consistent with the rules he has set for himself over the last nine years, isn’t the only justification for these tax cuts political?

  53. Matthew Pilott 53

    Billy, sometimes macroeconomic concerns are well over my head, but I’ll take a small punt.

    I think we’re experiencing those ‘future economic shocks’ to a small degree now – hugely increased prices have reduced spending, and enabled said tax cuts to occur. Given the change in the economic climate since 2005, it’s worng to hold what Cullen said in 2004 as relevant now. You seem to be taking Cullen’s comments ceteris paribus which is by no means the case.

  54. Billy 54

    Matthew Pilott,

    Here’s what I think. I think we could have afforded tax cuts in any of the years since 200. Cullen just didn’t want to give them because, being a socialist (or social democrat, if there is a difference) he doesn’t like tax cuts.

    Now, politically and for no other reason, he has to give them, even though by the criteria he set the conditions are much less favourable than at any time at least since 2004.

    munera accipit frequens, remittit nunquam

  55. Billy 55

    Tax cuts since the year 200 would have been nice, but I meant 2004. Must have been the influence of the Latin.

  56. RedLogix 56

    Here’s what I think. I think we could have afforded tax cuts in any of the years since 200. Cullen just didn’t want to give them because, being a socialist (or social democrat, if there is a difference) he doesn’t like tax cuts.

    And in the seven years of plenty Joseph as Pharoah’s chief minister could have cut taxes and allowed everyone to spend up large. He would have been most popular with the people.

    And in consequence during the seven years of famine, the people would have starved… and the good times would have meant nothing. This ancient story from the Old Testament pre-dates Keyensian economics by some 5000 years, but the moral of the story remains the same… self-control and restraint may not be popular, but it is ultimately life-giving.

    (Seeing as how we are indulging in history here…)

  57. Matthew Pilott 57

    Now, politically and for no other reason, he has to give them, even though by the criteria he set the conditions are much less favourable than at any time at least since 2004.

    I could just as equally say that he didn’t budget tax cuts because they weren’t needed and would have been inflationary.

    Now, as inflation on inelastic consumption has eroded our purchasing ability, Cullen comes through with the goods.

    Our two viewpoints have a lot in common Billy – they’re based upon assumptions, guesses and our opinion of the actors/agents involved.

    There’s not a lot of fact to clearly prove you’re right and I’m wrong, or vice versa; we’re talking about motivations in the end.

    To illustrate: Maybe, deep down, Cullen has been bursting at the seams (he is often bright red, to the point of vermillion, after all) to give us tax cuts, but conditions just weren’t right – and now he’s the happiest man in the land (deep down inside – on the outside he had to be somewhat begrudging to maintain the facade) because he’s had the excuse to do so.

    Redlogix: shush, we’re Godless commies Social Democrats, you’ll confuse Billy by getting biblical…

  58. Matthew Pilott 58

    What happened to the strikeout of “commies”? It looked far snazzier when that was there. Other HTML seems to work. Odd.

    [lprent: I’m not sure – it always worrks works for me.]

  59. Billy 59

    So Matthew, you reckon we would have been getting these tax cuts even if it weren’t an election year? I know it requires a guess, but what is yours?

  60. Matthew Pilott 60

    Hmm… There is always that point. Why can’t you run for PM instead of Key?

    Another guess, I couldn’t say for sure. Election or no, given every second story in the papers has been about food or petrol prices, and there’s a lot of hurt from interest rates, there would be a big incentive to act.

    If price increases have reduced discretionary spending, tax cuts aren’t going to be as inflationary so I’d say it’s much better than even odds.

    One big point though: I also think Labour are very smart operators, politically. If they wanted to give tax cuts purely for political gain, don’t you think they would have done so in the last budget, so by now we’d have had almost two months of fatter pay cheques? And perhaps another one to look forward to in April 2009 (they could have even brought that one forward to 1 Oct).

  61. Billy 61

    I would be unelectable, Matthew. I have an appalling stutter, incontinence, a twitch, a hair lip and an eye patch.

  62. Billy. Are you Nick Smith?

  63. Matthew Pilott 63

    Funny, Billy, I thought you looked rather handsome in that photo. I suppose incontinence is hard to photograph.

    Out of interest, have you seen the film Taxidermia? I think you described one of the main characters.

    [Matthew, stop trying to pick up tories on the blog. SP]

  64. Billy 64

    No, but I have just read the plot summary at IMDb. Implausably, it is:

    Gyorgy Palfi’s grotesque tale of three generations of men, including an obese speed eater, an embalmer of gigantic cats, and a man who shoots fire out of his penis.

    http://www.imdb.com/title/tt0410730/

  65. Matthew Pilott 65

    Billy, I wouldn’t recommend it to many people. You’d think with a description like that, it wouldn’t leave a lot to the imagination. It doesn’t…

    Highly recommended to a select few.

    SP – Isn’t this the new it place to be seen in? (you know that this looks like jealousy from you)

  66. Billy 66

    Well, despite the hair lip, incontinence and so on, I do look like a young Sophia Loren only hotter and more left wing…

  67. Matthew Pilott 67

    ‘Sod! I think Billy’s after you again! (or was it the other way around?)

Links to post

Recent Comments

Recent Posts

  • EV road user charges bill passes
    Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April.  “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • Bill targets illegal, unregulated fishing in international waters
    New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
    BeehiveBy beehive.govt.nz
    12 hours ago
  • Reserve Bank appointments
    Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.  Carl Hansen, the executive director of Capital ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Stronger protections for apartment owners
    Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Travel focused on traditional partners and Middle East
    Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend.    “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says.   Mr Peters will attend the NATO Foreign ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Keep safe on our roads this Easter
    Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Cost of living support for over 1.4 million Kiwis
    About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Tenancy reviews for social housing restart
    Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Kermadec Ocean Sanctuary plan halted
    The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Cutting all that dam red tape
    Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track.  “Dam safety regulations ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Drought support extended to parts of North Island
    The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Passage of major tax bill welcomed
    The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis.  “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Lifting economy through science, tertiary sectors
    Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government announces Budget priorities
    The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says.  The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government to consider accommodation solution
    The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government approves extension to Royal Commission of Inquiry into Abuse in Care
    Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says.                                         “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $18m boost for Kiwis travelling to health treatment
    The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says.   “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009.  ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM’s Prizes for Space to showcase sector’s talent
    The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Concerns conveyed to China over cyber activity
    Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government.     “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Independent Reviewers appointed for School Property Inquiry
    Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function.  The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Brynderwyns open for Easter
    State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to the Infrastructure Funding & Financing Conference
    Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Parliamentary network breached by the PRC
    New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ to provide support for Solomon Islands election
    Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ-EU FTA gains Royal Assent for 1 May entry to force
    The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union.    “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • COVID-19 inquiry attracts 11,000 submissions
    Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says.  “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Families to receive up to $75 a week help with ECE fees
    Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unlocking a sustainable, low-emissions future
    A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.  “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Chief of Army thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister to meet Australian counterparts and Manufacturing Industry Leaders
    25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government commits nearly $3 million for period products in schools
    Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech – Making it easier to build.
    Good morning, it’s great to be here.   First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning.  I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pacific youth to shine from boost to Polyfest
    Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • 2024 Ngarimu VC and 28th (Māori) Battalion Memorial Scholarships announced
    ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to Breast Cancer Foundation – Insights Conference
    Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Kiwi research soars to International Space Station
    New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to the New Zealand Planning Institute
    Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Support for Northland emergency response centre
    The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed.  “Northland has faced a number ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Celebrating 20 years of Whakaata Māori
    New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Some commercial fishery catch limits increased
    Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
    BeehiveBy beehive.govt.nz
    7 days ago

Page generated in The Standard by Wordpress at 2024-03-28T16:04:17+00:00