Cash spray BAU

December 2, 2019

What does it say about a party when a keynote speech on infrastructure offers nothing more than funding for school maintenance?

Jacinda Ardern and Grant Robertson have cancelled billions of dollars of infrastructure projects whilst dressing up business as usual school maintenance grants as infrastructure investment, National’s Economic Development spokesperson Todd McClay says.

“Kiwis deserve the roads, transport and education infrastructure that National was delivering, not spin from a weak and wasteful government that’s failing to deliver on its promises.

“Today’s education announcement is less than it’s wasted on 300 plus government working groups and committees.   

“This Labour-led Government’s poor economic policies have slowed New Zealand down and on its watch, New Zealand’s infrastructure plans are in disarray.

“Labour inherited a strong economy with GDP growth around four per cent. Latest ANZ and ASB forecasts predict a drop to two per cent at a cost of $1.7 billion in lost revenue each year.

“At the same time this Government has wasted billions on failing policies and isn’t delivering on the things that matter to hardworking Kiwi families.

“Our economy is slowing because of Labour’s failure to deliver. A complete stall in infrastructure spend and $400 million of business as usual school repairs and maintenance just won’t cut it.”

Taxpayers’ Union spokesman Jordan Williams describes the announcement as  a lazy attempt to buy votes, rather than better educations:

“This announcement appears more targeted at parents’ votes, than fixing run down schools, and you only need look at which schools get what to figure that out.”

“What a lazy and pathetic policy. A brand new school gets the same dollop of cash as a school with buildings from the 1950s.  No school gets more than $400,000, but none less than $50,000. Ultimately that approach means those schools which desperately need redevelopment get less.”

“Instead of asking officials which schools need what, the Labour Party has cooked up an ‘every school gets cash’ policy for the PM’s big speech. This is the sort of stuff you’d expect from an unorganised opposition, not a Party in Government.”

It is because Labour was disorganised in opposition it delivers this sort of stuff in government.

“If this is indicative of Labour’s big spending plans, spraying taxpayer cash, instead of micro targeting so taxpayer money goes to where it is most needed, hundreds of millions of taxpayers’ dollars are going to go down the drain.”

If a government that inherited a very healthy economy has to borrow to fund maintenance it has its spending priorities wrong.

Borrowing for infrastructure investment when interest rates are so low isn’t wrong per se, but if the government is borrowing to spend on infrastructure it ought to be investing in new projects not on-going maintenance.

Maintenance is business as usual (BAU), it’s shouldn’t be the recipient of a cash spray, but then spraying cash is BAU for this government.


Do politics and English mix?

November 22, 2019

Do politics and English mix?

I haven’t seen the question in question but on the basis of the text, am questioning the content.


Two years and what have we got?

October 28, 2019

The Labour, NZ First, Green government has just passed its second anniversary in power and what have we got?

  • Fee-free tertiary education which hasn’t had a positive impact on participation, and a third of those who got the help failed or withdrew.
  • KiwiBuild turned into KiwiFlop.
  • Higher fuel taxes for all to pay for public transport in Auckland which includes the stalled project of rail to airport about which officials can’t get direction from the Minister.
  • Two Ministers resigned/sacked.
  • Thousands of hectares of productive land converted to forestry.
  • Subsidies that incentivise forestry over farming.
  • Foreign ownership of productive land encouraged by much less rigorous requirements than for purchase for farming, horticulture or viticulture.
  • Business confidence in the doldrums.
  • Interest rates heading towards zero and below.
  • DHB deficits growing.
  • Polytechs that are working well to be sacrificed for those that aren’t.
  • Virtue-signaling environmental policies that come at a high economic and social cost here and add to environmental cost elsewhere.
  • Policy at the mercy of the minor coalition partner’s leader’s whim.
  • The waka-jumping legislation.
  • The Provincial Growth Shane Jones Promotion/NZ First re-election Fund.
  • Policy announcement after policy announcement that is high on feel-good but low on planning.

It was easy to come up with those negatives, and it wouldn’t be hard to add more.

But what of the positives?

The only one that comes to mind is a Prime Minister who  gets a lot of focus and high praise internationally.

But how much is that worth when there are so many problems that aren’t being solved at home?

A new government needs some time to get up to speed, but more than two-thirds through its term is too long on training wheels.


Rural round-up

October 26, 2019

The deal’s done – Bryan Gibson:

Farmers now control their emissions destiny but industry leaders warn the hard work starts here.

The Government has adopted He Waka Eke Noa – the Primary Sector Climate Change Commitment, which Beef + Lamb New Zealand chairman Andrew Morrison said is a good outcome for farmers.

“I hope farmers understand the importance of today,” he said.

“This is a piece of work that empowers us as a sector to put the tools in place to measure the mitigations, the sequestrations against our liabilities. 

“That’s our goal and that will drive the right behaviours.”

But now the office work is done the farm work will start. . .

Water policy stymies green work :

Hill-Country farmers will be deterred from doing environmental protection and enhancement because of limits put on land use by the proposed Essential Freshwater policies, Tararua farmers Simon and Trudy Hales say.

They believe restrictions on farmers’ ability to realise the productive potential of their land will stymie investment in environmental protection.

The couple, this year’s Supreme Award winners in the Manawatu-Wanganui Region Ballance Farm Environment Awards, estimate over the past four years they have spent about $120,000 on environmental protection on their 970ha, 819ha effective, hill country farm. . .

Taranaki farming couple reap benefit after lifetime of responsible land management – Mike Watson:

When Norton and Coral Moller decided to plant trees on a bare coastal dairy farm south of New Plymouth, the response from neighbours was disbelief.

Nearly 50 years later the retired Oakura couple are reaping the benefits.

Last month they were among 17 Taranaki Environment Award winners, for environmental leadership in dairying. . .

New Zealand’s anti-science GMO laws need to change to tackle climate change – Mia Sutherland:

If this coalition government is serious about tackling climate change and ensuring future generations are left with a prosperous planet, GMO law reform must be considered.

A poignant aspect of making a difference to New Zealand’s carbon emissions is discontinuing ‘business as usual’, meaning that the lifestyles we have founded and the way our society operates now needs to change. It’s not sustainable, and doesn’t promise the 170,000 people who took to the streets on September 27 or their children an inhabitable future.

We need to be exploring new methods, changing the way we think, and reevaluating ideas we have while taking into consideration the increasingly fast development of science. We need to reform the law about genetically modified organisms. . .

Kiwifruit pushes onto dairy land – Alan WIlliams:

Two properties destined for conversion to kiwifruit are among the few dairy farms being sold.

The farms are in the Pukehina area, east of the main kiwifruit zone at Te Puke in Bay of Plenty.

It is fringe kiwifruit land away from the main post-harvest infrastructure and indications are the buyers are already in the industry with the knowledge to make the bare-land investment, Real Estate Institute rural spokesman Brian Peacocke said.  . .

More Trades Academy places good news for primary sector:

The announcement of up to 4000 more trades training places in schools will help meet demand from students to learn about farming and horticulture, Primary ITO chief executive Nigel Philpott says.

The Government will fund 2000 more Trades Academy places, where secondary students combine full-time study with experience in the workplace, as well as up to 2000 Gateway places, where students have job placements along with classroom learning. The Trades Academies are across a number of sectors.

Primary ITO currently has New Zealand’s biggest Trades Academy, with approximately 830 students, and Mr Philpott says schools have asked for nearly 1100 Trades Academy places for next year. . .

Genetic engineering, CRISPR and food: What the ‘revolution’ will bring in the near future – Steven Cerier:

Humankind is on the verge of a genetic revolution that holds great promise and potential. It will change the ways food is grown, medicine is produced, animals are altered and will give rise to new ways of producing plastics, biofuels and chemicals.

Many object to the genetic revolution, insisting we should not be ‘playing God’ by tinkering with the building blocks of life; we should leave the genie in the bottle. This is the view held by many opponents of GMO foods But few transformative scientific advances are widely embraced at first. Once a discovery has been made and its impact widely felt it is impossible to stop despite the pleas of doubters and critics concerned about potential unintended consequences. Otherwise, science would not have experienced great leaps throughout history­­—and we would still be living a primitive existence


Sowell says

October 17, 2019


Sowell says

October 15, 2019


3/5s of not very much

September 23, 2019

Steven Joyce gives the government some much-needed advice:

It was confirmed this week that New Zealand is now running at little more than half speed.

From growing at rates of 3½ to 4 per cent three years ago our economy at the end of June was only 2.1 per cent larger than it was the previous June.

That’s a problem firstly because our population is growing at about 1.6 per cent a year, so if our economy grows at 2 per cent then the amount of additional wellbeing per person (to coin a phrase) is three fifths of not very much.

Not very much is far less than we need for economic, environmental and cultural wellbeing.

The second problem is that our terms of trade (the prices of our exports versus our imports) are still very strong so we should still be cranking along. It’s a problem if we are slowing down when the world really wants to buy what we are selling. What happens if the world actually falls out of bed?

What happens is recession and maybe even depression.

The government has been quick to blame the world economy for our lower growth rate this week, but our terms of trade put the lie to that.

The third problem is that there is no sign of anything on the horizon that will lead to much of an upturn, and in fact all the signs are that we are going to slow further. Our businesses are in a funk because of what is known as regulatory overhang. In short, they are too fearful to invest because the government is making lots of rule changes that could mean they don’t get much of a return for the risk they take.

It’s not just farmers, other businesses are too scared to invest.

The government for its part seems inclined to shrug its shoulders and say “nothing to see here”. They observe we are still growing (slightly) faster than Australia so what’s the problem? That story is likely to change in the next six months as Australia’s tax cuts come through and their housing market picks up. Anyway weren’t we trying to grow a lot faster than Australia so we could close the income gap with our cousins across the Tasman – what happened to that ambition?

This government has no ambition for growth, only for regulate, tax and spend.

The fourth problem is that lower growth means less to go around. If we were still growing as fast as we were then in real terms our economy would be around $5 billion bigger this year than it is. That means more money for higher pay and more jobs, and of course about 30 per cent of it goes into the government coffers – which would pay for a lot more cancer drugs, teachers or electric vehicle subsidies.

How hard is it to join the dots between higher growth and more for essential services and infrastructure?

So what to do? Well if I could offer some gratuitous advice to the Finance Minister I think he should be working on baking a bigger cake, and I think the recipe is pretty straightforward. Its time to rein in some of his ministerial colleagues who are wreaking havoc with business confidence.

For example he should suggest the Minister of Immigration sort out his portfolio so that horticulturists can find seasonal workers and the international education sector can get up off its knees. He should tell the Minister for the Environment to come up with a more reasonable plan for water quality improvements and methane emissions reductions so farmers step back from the cliff edge, and the Minister of Education to stop stuffing about with the apprenticeship system.

He should encourage the Reserve Bank Governor to be less heroic on bank capital requirements, persuade his colleagues to do a backtrack on gas exploration now it is proven the ban is simply value destroying and does nothing for climate change, overrule the Greens to permit some gold mining, and stop taxing tourists more so the tourism sector starts growing again. He should cancel the return to industry-wide pay bargaining given that NZ First are never going to vote for it anyway, tell the Transport Minister to get on with building at least some of the stalled roading projects, particularly given that light rail is years away, and reverse at least one of the petrol tax increases.

Then he could watch the economy recover and start thinking about how he’s going to allocate the increased government revenues. And New Zealand will be in much better shape if the world economy does get worse. . .

He won’t of course and nor will he see that it’s the poor and the struggling middle that will be hurt the hardest by policies which hamper growth.


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