Just when you think it can’t get worse

May 30, 2019

Treasury allowing Budget information to be found from a simple search on its own website was bad enough.

Calling it hacking and involving the police without properly investigating first was worse.

And just when the organisation ought to be showing it’s learned a lesson and taking extra care it does the opposite:

. . . 10:30am – In a major blunder, Treasury staff mistakenly handed out copies of the budget to journalists and political commentators.

Newshub’s Political Editor Tova O’Brien tweeted that she was given one of the top secret documents. When the recipients questioned whether they were supposed to see them before going into the lock-up, she says an official asked “Are you not Treasury?” before hurriedly taking the copies back. . . 

It’s a simple human error but given the lead-up it shouldn’t have happened.

So will heads roll?

Treasury bungled badly and Finance Minister Grant Robertson and Winston Peters made baseless accusations against Simon Bridges.

Will there be resignations or even apologies?

Don’t hold your breath.


Quotes of the year

December 31, 2018

That’s creative thinking – if I had known that I probably would have joined them. –  Inspector John Kelly on the New Year revellers who built a large sandcastle in the middle of the Tairua estuary in an attempt to avoid the liquor ban.

Among western leftists, morality had become culture-specific. If imperialism’s victims asked for support, then they would be given it, unquestioningly. If not, then they would tend to their own political gardens exclusively.

The problem for western feminists is that, in spite of these cultural and political self-denying ordinances, the only garden currently showing unequivocal signs of flourishing, is their own. Across vast regions of the planet, not only are women’s rights not flourishing, they are being diminished. – Chris Trotter

Any family, in any part of the country, dealing with any one of those challenges, would find it difficult. But when you have all of those at once, it is incredibly difficult to see how a family could navigate their way through all of that on their own.

And you sure as heck, can’t have an official sitting in Wellington waving a magic wand, and fixing it for them. – Louise Upston

If I look at my colleagues, they get up and go to work every day because they care so much. . .Why would we do that if we didn’t care? Why would we do that if we didn’t care about individuals and actually want something better for their lives? Louise Upston

Men who have been inculcated into a culture of toxic masculinity need to regularly top up their King Dick Metre, which can only be fuelled by the disempowerment of someone else. And that someone else is very often a woman.

Their feelings of strength only come when someone else is in a position of weakness. They can only feel valid when they are able to invalidate someone else. They only feel like they have won when someone else has lost. – Kasey Edwards

Could you imagine a return to a world where the only people that gave dairy farmers grief were sheep farmers and bank managers?

Could you imagine the next time Fonterra was in the news, it was for a collaboration with Lynx in producing a deodorant that smelled of silage and cowshit, that dairy farmers could put on if they used too much soap in the shower?

Maybe we can hope that our on-farm processes continue to develop, along with scientific developments, adoption of best practices and consumer preferences, as opposed to at the whim of vote-hungry politicians, misinformed urban housewives and the combined armies of anaemic vegans, animal rights activists, goblins and orcs.

Maybe we could hope that we can reverse the trend that has seen rural folk and farmers become an ethnic minority in this country – a minority that is now seen by many New Zealanders as dirty, destructive and somehow freeloading on resources, with less credibility then prostitution. . .  –  Pete Fitzherbert

We welcome the government’s focus on tracking the number of children in persistent poverty and hardship. However, setting multiple arbitrary targets for reducing child hardship is easier than actually helping people extricate themselves from their predicaments. – Dr Oliver Hartwich

Good intentions are not enough. They’re not even a start, because there’s been a lot of money wasted and lives wrecked on the basis of good intentions expressed through public services. Bill English

 . . . the only reason we have a 37-year-old female Prime Minister is because a septuagenarian put her there. – Fran O’Sullivan

Peters’ inability to contain his bitterness suggests the coalition negotiations were a charade. His resentment towards National is deep-rooted, and since the election, the feeling is reciprocated. It is unlikely that National’s change of leader will diminish Peters’ toxicity.  – The Listener

It strikes me as rather unfair that while we’ve been up in arms over where the country’s burgeoning cow population does its business, our burgeoning human population has been fouling up the waterways with what comes out of our own backsides. We can’t berate dairy farmers for dirtying the rivers if we’re content for our biggest city to keep using its waterways as one giant long drop. – Nadine Higgins

Over-reacting about everything someone says or does, creating controversy over silly innocuous things such as what I choose to wear or not wear, is not moving us forward. It’s creating silly distractions from real issues.Jennifer Lawrence

The incident has also highlighted the danger of a government full of academics, health professionals, public servants, teachers and career politicians picking business winners.

The idea that councils around the country would rail or truck their rubbish to Westport for incineration is one of those ludicrous ideas that only regional development officials would think is a flyer. – Martin van Beynen

Getting policy right matters. In the end, lots of money and good intentions is never enough. You’ve got to get the policy right. – Nicola Willis

So consumed are they with the grassy vistas opening up in front of them that they are oblivious to their drawing ever closer to journey’s end, namely the holding yards of the local freezing works. – John Armstrong

Businesses, by and large, are better at coping with bad news than they are at coping with uncertainty. You cannot plan for it or adapt to it. Hamish Rutherford

Feminism is about choice, the right to have one, the right to be equal. It is not about trampling men to death in the process. It is not about spending so much time telling girls that “they can do anything” that they become curious and confused as to why you keep telling them something they already knew.

Guess what? The girls we’re raising haven’t had it occur to them they can’t do anything. – Kate Hawkesby

I’m not sure what affordable means but I am sure I’m not alone in that. It’s bound to be a complicated formula with one of the variables being the price of avocados. I just hope it doesn’t add up to borrowing from KiwiBank to buy from KiwiBuild during the KiwiBubble resulting in KiwiBust.James Elliott

 If we believe that correcting harmful inequities lies in asserting an inherent malice and/or obsolescence in all people with a specific combination of age, gender and ethnicity then we have already lost the fight. The real enemy is the unchecked and uncontested power exercised through institutions, social norms and structures which privilege one group over another.    – Emma Espiner

A tagged tax has to be a tagged tax, otherwise it’s a rort. – Mike Hosking

While the Greens are dreaming of compost, wheelbarrows, chook poo and quinoa, the rest of us wouldn’t mind getting on with business. And that means we need water. – Mike Hosking

Certainly a rational person, and especially one convinced of the threat of global warming and the possibility of more droughts, would increase, not stop investment in irrigation?

That is not to argue that water quality and nitrate leaching are not problems – they are. But to stop irrigation as a solution is to throw the baby out with the bathwater. The rational approach is to find ways of reducing nitrate leaching even under high-producing irrigated pastures. This requires more science, more evidence, more rational thinking. – Dr Doug Edmeades

Businesses — it doesn’t matter what they are — require reliable steady staff; not rocket scientists but reliable steady staff. Unless we have those types of people available our whole economy has an issue. – Andre de Bruin

There’s power in love. There’s power in love to help and heal when nothing else can. There’s power in love to lift up and liberate when nothing else will. There’s power in love to show us the way to live. – Michael Bruce Curry

The well-being of all communities can be enhanced by enabling greater levels of social solidarity, empowering people in their personal and community lives, enhancing social infrastructure and establishing opportunities for dignified work and alternative livelihoods. – Tracey McIntosh

Tough on crime is popular with the insular and ignorant when it comes to justice policy, while restorative approaches with enduring outcomes that help people stay away from jail because they offend less are not popular, not sexy and seen as “soft on crime”. Chester Borrows

Everyone can do something amazing once. You’ve got to back it up and do it again – Rowland Smith

The money spent on eliminating risk in one area means less available to fix problems in other areas. In other words, the consequence of lowering risk in one sphere can hinder minimising risk in another one. Chew carefully on that one. – Martin van Beynen

That’s what the call for diversity means. An endless slicing and dicing of society into every thinner minority groups with everyone scrambling for quotas and box ticking.

It’s a bureaucratic nightmare. It’s also a complete denial of individuality. You are not important. All that matters is what boxes you tick. It’s the boxes that define you, not what you do, what you think or what you produce. – Rodney Hide

We went to do a story about an American billionaire buying up wineries in Wairarapa. Local wine makers were going broke and in stepped the American billionaire. I went down with a TV crew expecting locals to be up in arms about the ‘foreigner’ buying up the land. But I couldn’t find one voice raised against him.

There is one thing worse than a foreign buyer, they told me, and that’s not having a buyer at all. – Guyon Espiner

It feels like a Dear Winston moment really – Mike Jaspers

We grow up thinking the world is fair, but it’s not, so you’re not always going to get the results you’re looking for. The challenge is to pick yourself up again when you have those days.Joe Schmidt

I believe rugby is similar to society, where it is about interdependence and us trying to help each other. Imagine if everyone in life became the best version of themselves and made life easier for those either side of them. – Joe Schmidt

The very premise of our system is we learn from our mistakes and wrongs and are given freedom to make amends.Mike Hosking

Grown-ups know that being short $60 a week is not what ails and troubles our most vulnerable children. Proper parenting can’t be bought for $60 a week. – Rodney Hide.

So stop beating yourself up for buying too many books or for having a to-read list that you could never get through in three lifetimes. All those books you haven’t read are indeed a sign of your ignorance. But if you know how ignorant you are, you’re way ahead of the vast majority of other people. – Jessica Stillman

Feminism has descended into a cauldron of cattiness; of nasty factionalism. It doesn’t empower. It  scrutinises and judges groups within groups. Like extreme left or right politics, the creed is hardest on those most like it – those who should know better but fail. – Lindsay Mitchell

Regional development is about more than funding a few projects; it’s about allowing people to make a living. – Paul Goldsmith

This image of Anglo-Saxon culture isn’t grounded in the up-to-date distinct cultural traditions or practices of the United Kingdom. It is a cover of a misremembered song, played by a drunk who forgot the words mid-song and so started humming. – Haimona Gray

Imagine the world today if William Wilberforce and Kate Sheppard had refused to engage with people whose views they found repugnant. If Martin Luther and Martin Luther King Jr had decided not to argue back. If Desmond Tutu and Te Whiti had seen no point in suffering the slings and arrows of their opponents because, hey, nothing’s gonna change.

The twist in this debate is that the Molyneuxs, Southerns and other so-called champions of free speech only win when their shouting drowns out other voices. Voices of conciliation and peace. Because regardless of the polarisation we see today, people can change. We can learn. And, even if we still disagree on some profound issues, we can find other things to agree on and other things to respect in each other. Tim Watkin

The day that this country’s dictated to by the social media trolls is the day that democracy dies. If we are to be spooked into compliance by what an anonymous moron threatens by the swipe of a cellphone screen then we’re little better than they are. – Barry Soper

It is unfortunate, but the world seems to have lost the ability to disagree well. Civility in our discussions and debates over contentious issues seems to have been lost. We are increasingly polarised in our views with recourse to extreme positions in order to ‘prove’ or force our point. However, the answer is not to avoid difficult and, at times, confronting conversations. Rather, community leaders, and universities in particular, play a vital role in leading our communities in those discussions, as difficult as they may be, applying the principles of informed discussion, compromise, enlightenment of the points of view of others, and if all else fails, respectful disagreement. – Chris Gallavin

But where is that line that we need to find as a Parliament between being culturally sensitive to people that may not see things in the way in which New Zealand’s own cultures have developed, and, on the other hand, being firm enough that, actually, no, these things, regardless of culture, are not right. Nick Smith

We have an education system that does not reward excellence and does not punish failure. Decades of bureaucratic hand-wringing has delivered a broken system that relies on the personal integrity and good intentions of those who choose teaching as a profession. – Damien Grant

After all, as long as we can discern the truth clearly, love it passionately, and defend it vigorously, we have nothing to fear from open debate; and if we can’t do those things, then why are we claiming to be a university at all? – Dr Jonathan Tracy

The answer to suffering, physical or mental, is affection and good care. This should come first and as far as possible from family and community, supported by institutions.

“Finishing people off” may suit our current individualistic, utilitarian, impatient culture, but it will degrade us all in the end. – Carolyn Moynihan

In a liberal, democratic society, there will always be speech in the public domain that some people find offensive, distasteful or unsavoury. Unless that speech is manifestly doing harm to others, there is no case to ban it, only a case for arguing strongly against it or ridiculing it. Recourse to suppression is redolent of authoritarianism, not democracy. – Chris Bishop

The irony is that although the elimination of subsidies started out as a kind of political punishment, it wound up becoming a long-term blessing for farmers. We went through a difficult period of adjustment but emerged from it stronger than ever. . .

 We became ruthlessly efficient, which is another way of saying that we became really good at what we do.

We also improved our ability to resist regulations that hurt agriculture. Subsidies empower politicians, who can threaten to cut off aid if farmers refuse to accept new forms of control. Without subsidies, we have more freedom to solve problems through creativity and innovation rather than the command-and-control impulses of government. – Craige Mackenzie

But as someone who’s spent a bit of time writing and talking about the important, and not so important, issues in life, there is one thing I know which will never change.

Truth always wins. If you report the facts you can never go wrong. – Peter Williams

We can’t prosper by taking in our own washing so, strutting it on the global stage has to be our modus operandi.And I mean strutting, not just selling low value stuff that rises or falls on the rise or fall of the NZ dollar. Strutting starts with the daring of the ambition and is sustained by the ability to execute.  Ruth Richardson

The frightening retreat from sane economics. Free trade is the path to growth, protectionism is the path to decline. Ruth  Richardson

This is an accidental government formed on the fly and governing on the fly.–  Ruth Richardson

Death of great science on the alter of doctrinal and PC positions doesn’t strike me as the smartest choice.  – Ruth Richardson

I’m satisfied within myself. I’ve got more to do with my life than look at that. Barbara Brinsley

Each of us has made different life choices and, actually, that gives women everywhere role models.

It’s legitimate to choose. We don’t have to be the same, we don’t have to judge each other, we make our own choices. – Dame Jenny Shipley

Every student who walks out of the gate to truant is already a statistic of the worst kind, highly likely to go to prison, highly likely to commit domestic violence or be a victim of domestic violence, be illiterate, be a rape victim, be a suicide victim, be unemployed for the majority of their life, have a major health problem or problems, die at an early age, have an addiction – drugs, gambling, alcohol or smoking. Virginia Crawford

I am Māori. Tuhinga o mua Ngāti Hāmua a Te Hika a Pāpāuma. Ko taku iwi Ngāti Kahungunua a Rangitāne. I am Scottish, I am English, I am a New Zealander. I am not defined by the colour of my skin. I am a victim. I did not choose to be a victim. – Maanki 

If we want to see fewer Māori in prison, our whānau broken apart because dad is in prison and mum is now in rangi (heaven), we must free ourselves and our whānau from the increasing level of domestic violence and abuse in our homes. The drugs must stop, the high level of drinking and violence among our own must be gone.

How many of our fathers are incarcerated, because their fathers taught them the only way to deal with anger was violence, to punch their way through a situation. How many of our whānau have lost a mother, a child, a brother from our people’s own hand. – Maanki

The blame needs to stop. It is not the police, the system, the state, the Government, the justice system or even the Pākehā who made a man beat his wife to death, to rape an innocent stranger, to murder their own child or to sexually abuse a daughter or son.

No, it was a choice, a choice made by a perpetrator. – Maanki


The Senate, collectively, could not find their own arses with a sextant and a well-thumbed copy of Gray’s Anatomy
Jack the Insider

Over the years I have come to the conclusion that God’s table is a smorgasbord of theological truths with some in conflict with others and some more important that others.    People are free to pick and choose from that smorgasbord and do so based on what is important to them. – The Veteran

But I can’t remember not having books. I’d go to the library every week, search every shelf with children’s books, then go home with a stack. . .   Every choice was my choice. Then I could control what went into my head by plugging into new worlds, learning new things and just imagining a different life. . .

When we only look to reinforce our taste and beliefs we lose the opportunity to browse and the opportunity for serendipity, and that’s unfortunate. – Maud Cahill

It was sort of total irritability associated with feeling hungry that would manifest as grumpiness. This void in my stomach would create a void in my sense of humour and my ability to tolerate things. – Simon Morton

This is a partnership designed by a drover’s dog and a clinical psychologist who have absolutely nothing in common except they both have experience dealing with rogue steers who don’t believe in being team players. – Clive Bibby  

I live down in the South Island, and there’s been a lot of farmers trying to curtsey. Most of the time they’re in gumboots. – Dame Lynda Topp

In the west food is produced by a few to feed the many and when people are relieved of the duties of working on farms and subsistence farming the job is handed to a few and people move to the cities and that is when they become disconnected. – Anna Jones

Class is a commodity that doesn’t seem to be in conspicuous supply in politics at the moment. – Chris Finlayson

New Zealand’s real problems are not identity politics, no matter what the left may think. They are that the welfare state has failed. Too many kids don’t get educated. Too many working aged adults are on welfare. Too many are in jail because there is too much crime and they’re never rehabilitated. Housing has gone from a commodity to a ponzi scheme. Our productivity growth is anaemic. With government’s and councils’ approach to regulation, it’s amazing anyone still does anything. Andrew Ketels

I certainly don’t celebrate diversity for its own sake. You have to distinguish pluralism from relativism. Relativism tends towards ‘anything goes’ and that can’t be right

Pluralism is the view that although some ways of living really are wrong, the list of possible good ways to live a flourishing human life and have a good society contains more than one item. – Julian Baggini

We didn’t need a tax on stones, there wasn’t a concern about ‘peak stone’ and we didn’t need to stage protests in front of the chieftains’ caves to argue for the use of bronze. It came down to developing the new technology, which had benefits over the old technology, and disseminating the knowledge. – Andrew Hoggard

I am the culmination of generous moment after generous moment, kind moment after kind moment and that is the glue that holds this country together. – Kurt Fearnley

It is a privilege for any mother to be able to propose a toast to her son on his 70th birthday. It means that you have lived long enough to see your child grow up. It is rather like – to use an analogy I am certain will find favour – planting a tree and being able to watch it grow. – Queen Elizabeth II

When I noticed that I was spending far more time scrolling through my email and Twitter than I was playing on the floor with my son, I realized that the problem wasn’t with screens warping his fragile mind. It was that I’d already allowed my phone to warp mine. So these days, my husband and I try not to use our phones at all in front of our son. Not because I think the devil lives in my iPhone, but because I think, to some extent, a small part of the devil lives in me. – EJ Dickson

The proper purpose of journalism remains as Kovach and Rosenstiel defined it – not to lead society toward the outcome that journalists think is correct, but to give ordinary people  the means to make their own decisions about what’s in their best interests.Karl du Fresne

I’m bloody angry at New Zealand for fighting over Santa and I want us to stop. This is not what Santa’s about. Santa is not about angst and Santa is not about Santa hate.

Santa is about hope, Santa is about dreams. Santa can come down the chimney even when you don’t have a chimney. Santa can come in the ranch slider, Santa can drink craft beer. Santa can drink strawberry-flavoured Lindauer for all I care. – Patrick Gower

The expectation that we rustics just need to lean on the gate chewing a straw and making obscure pronouncements about the weather in impenetrable accents for picturesque effect is entertaining until it dawns on you that your role apparently really is just to provide background local colour and not disturb the peace too much.  Rural places are workplaces — stuff happens down on the farm and that stuff can be noisy.  And not just on the farm — gravel quarries, jet-boat companies and the construction sites of all those new houses that didn’t used to be there. – Kate Scott

Rose-tinted nostalgia strikes us all from time to time, but when it comes with a side of imported urban world view where non-working weekends and the notion of property values is accorded more worth than building community resilience, I begin to feel resentful of the twittering worries of suburbia intruding on my bucolic peace with its soothing soundtrack of barking huntaways, topdressing planes and chainsaws –Kate Scott

I had a gentleman come to my office three years ago. He was a Labour candidate. He ran for the Labour Party. He was coming to see me because he’d been to see his own team—they wouldn’t help him with an issue, so he came to me. Did I say, “Oh, sorry, you’ve been a Labour candidate. I’m not going to assist you. I’m not going to help you.”? No, I didn’t. I actually helped him with his issue, because that’s my job as a member of Parliament. I don’t care whether you support New Zealand First, I don’t care whether you’re a supporter or member of the Labour Party, the Green Party of Aotearoa New Zealand, or the National Party—if you come and ask for help and support, you will get it. That’s my job.-  Mark Mitchell

The only positive outcome from the UN’s 2009 Copenhagen fiasco was the launch of New Zealand’s Global Research Alliance (GRA) to reduce methane and nitrous-oxide emissions, which account for 22 per cent of the world’s GHG total. More than 50 countries are now involved. If the GRA develops science to cut agricultural emissions by two-thirds it would be the equivalent of the US becoming a zero emitter. If it eliminated them, it would be like China going carbon zero. This would benefit the world at least 100 times more than New Zealand becoming net-zero domestically. – Matthew Hooton

No one bets on a horse with a dud jockey.  Simon Bridges

Ms Ardern promised to lead the most open and transparent Government New Zealand has seen. That doesn’t mean picking and choosing to be open and transparent when it benefits her. – Tova O’Brien

Shaw and his comrades have a vision of a different economic model, one that sane people have tunnelled under barbed wire fences to escape. Alas, the sacrifice required to achieve this gender-fluid post-colonial paradise requires a reversal of most of the economic gains of the last 50 years.Damien Grant

The less you trust people, the more distrustful they become and so the more law you need in order to trust them. A good society would not have too much law, because people would do the right thing he says. But in New Zealand we have a lot of law. – Professor Mark Henaghan


Word of the day

August 19, 2017

Subsidiarity – a principle of social doctrine, in the Roman Catholic Church,  that all social bodies exist for the sake of the individual so that what individuals are able to do, society should not take over, and what small societies can do, larger societies should not take over;  the principle of devolving decisions to the lowest practical level or closest to where they will have effect; the principle that social and political issues should be dealt with at the most immediate (or local) level that is consistent with their resolution; the principle that a central authority should have a subsidiary function, performing only those tasks which cannot be performed at a more local level.

Hat Tip: Oliver Hartwich


Disunited Kingdom

June 25, 2016

The United Kingdom is a disunited kingdom.

The UK as a whole voted to leave the European Union but two of the four countries which comprise it did not.

England and Wales voted to go, Northern Ireland and Scotland voted to stay.

This could prompt another move for Scottish independence and possibly a push to reunite Ireland.

The decision already has its casualties.

Prime Minister David Cameron has announced he’ll stand down, saying he thought the ocuntry need fresh leadership and couldn’t captain the ship to its next destination,

Reports that Morgan Stanley would move 2000 jobs to Dublin of Frankfurt were later denied but both the pound and euro fell after the referendum result was announced.

The pound dropped below the crucial $1.40 mark amid fears that the UK would vote to leave the European Union. Sterling fell as much as 10% early on Friday, and is on track for its worst one-day fall in history. After trading at $1.3262, down nearly 9%, as of 5.27am BST, the currency recovered slightly to 1.3394 as of 6.05am BST.

The euro fell the most since it was introduced in 1999 while other currencies in Europe also took a hit, Bloomberg reported. . . 

The wheels of politics and bureaucracy grind very slowly so there will be no immediate changes but Beef + Lamb New Zealand CEO Sam McIvor sent an email to farmers saying:

  • The EU and UK are New Zealand’s most valuable sheepmeat markets and Brexit could have significant implications.
  • It is unclear right now exactly how this will play out as Prime Minister Cameron has not confirmed that he will act upon the results. There are three key issues we are focused on at present:
    • Ensuring that we maintain our overall quota access into the EU and UK as the UK renegotiates its access into the EU. This will take some time and we will be able to work with the NZ government and EU/UK governments to understand the process and ensure the best possible outcome for NZ sheep and beef farmers;
    • Understanding the impact of Brexit on the sheep and beef markets in the UK and EU. The EU currently takes 90 percent of the UK’s sheepmeat exports.
    • Other indirect impacts could be appreciation of the NZD against the EU and UK.

NZ quota access into the EU & UK

  • New Zealand currently has a quota of just under 228,000 tonnes of sheepmeat into the EU at zero duties. This represents over half of New Zealand’s total global sheepmeat exports. The UK currently takes half of our exports to the EU by value.
  • New Zealand also has a smaller quota of 1,300 tonnes of beef into the EU at an in-quota duty of 20%.
  • As the UK negotiates its exit from the EU over the next couple of years it will be negotiating how much of these quotas will be transferred solely to them and on what terms.
  • Under WTO rules, New Zealand’s overall levels of access to both the EU and UK will have to remain the same, but we will lose the flexibility to decide which of the two entities to send our exports to depending on demand from customers.

Potential impact on EU and UK Markets

  • There will also likely be disruption on UK and EU markets.
  • The UK exported 90 percent of its sheepmeat exports to the EU last year. It currently faces zero tariffs into the EU.
  • If it loses its preferential access into the EU then its domestic market will be oversupplied, further reducing demand for NZ product, but this could potentially improve our market into the EU. 

The process of Brexit as we understand it at present:

  • There will be no immediate change to any access conditions until the UK officially ‘exits’ the EU which will take around two years, if not longer.
  • The departing Member State must notify the European Council (the leaders of each Member State) that it has decided to leave, and after this the departing Member State and the remaining Member States must negotiate the terms of exit.
  • The terms of exit must be agreed between the departing Member State, and a qualified majority of the remaining Member States. A qualified majority means 55 percent of remaining Member States, representing 65 percent of the remaining EU population.
  • European Union membership will automatically cease two years after the departing Member State gave notice of withdrawal if no agreement is reached. However, if there is unanimous agreement from all Member States, the negotiation process can be extended.
  • Under the WTO rules, the UK and EU would be legally obliged to retain New Zealand preferential access conditions (quotas) for red meat, however how this would be achieved is a cause for concern for the sector.

Federated Farmers says New Zealand needs to milk Brexit for all it’s worth:

With Britain voting to exit the European Union today, Federated Farmers is urging diplomats and export companies to be quick off the block and first inline for meetings to push New Zealand’s agenda.

Federated Farmers President Dr William Rolleston said: “Britain leaving the EU will create a considerable degree of political and financial uncertainty but we must consider what new opportunities might be won. This could be a great opportunity to work with lamb producers in the UK to get better outcomes for both countries.

“We have a shared history with the UK and want to ensure this outcome works in both countries’ interests. We need to emphasis our common thinking and remind Britain we are an important ally.

“The key thing for farmers is assessing how this change will affect trade to Britain as well as Europe and what this means for our free trade negotiations.

“The vote suggests a significant threat against the trends of globalisation and trade liberalisation. New Zealand as a small open economy will be a loser if protectionism prevails.” Dr Rolleston said.

Currently New Zealand primary exports to Britain are at three percent and 11 percent to Europe. Farmers are in a very different position than we were when Britain entered the European Union 43 years ago; at that time 40 percent of our exports went to Britain. Before that in the 1950s over 80 percent of New Zealand exports went to Britain.

Charles Finny echoes the need to move quickly:

What has happened today is hugely significant for New Zealand.
The UK is still a major market for us the official stats of $1.651 billion is probably understated. Taking the UK numbers out of the EU total reduces our goods exports to the EU to $3.738 billion – $1 billion less than our exports to ASEAN.
Our FTA negotiation with the EU has just become hugely complicated.
And we have our quotas into the EU – hard fought for and then hard defended potentially up for re-negotiation.
I think markets are over reacting. Nothing will happen to trade flows overnight. Moreover we can do a FTA with the UK fast and help to negotiate access for the UK into Asia that will be superior to that the EU will. And I think the chances of a UK-US FTA is also higher than a TTIP being concluded.
I don’t think that the consequences for UK trade with the EU will be as negative as many have been suggesting. Even in a worst case scenario of no FTA type relationship there will be almost zero negative impact apart from in agriculture
I don’t think the negatives for NZ will be as big as some have suggested – so long as we move fast.

Dr Oliver Hartwich, writing before the result was known,  says we should keep calm and carry on:

. . .Such political uncertainties aside, there is no need to panic. Not even in case of Brexit. The slogan has to be ‘Keep calm and carry on’.

Even a Brexit vote would not mean that Britain is out of the EU straight away. It would only give the UK government the mandate to inform Brussels of their wish to withdraw. They would not have to do so immediately though. If Prime Minister Cameron had to go, he would most likely leave this task to his successor.

Negotiations would only begin once the EU is officially notified. Under Article 50 of the EU Treaty, these would take at least two years.

Over all this time, nothing would change. Britain would have access to European markets. And they could well retain it depending on the outcome of the negotiations.

So we will watch the count of the referendum with excitement. But let’s keep calm no matter what the result. There is no need to panic either way.

The referendum result will mean big changes for the UK and will almost certainly prompt change in the EU.

The UK’s entry to what was then called the European Common Market  caused a great deal of angst and difficulty for New Zealand because the UK bought so much of our produce.

Its exit shouldn’t be nearly so problematic because our trading eggs are in far more baskets.

Where there are big changes there are also opportunities.  New Zealand should make the most of them and continue to promote free trade and seek deals with individual countries and trading blocks.

 

 


Quote of the day

July 20, 2015

. . . What New Zealand needs is a departure from the way we finance our two tiers of government in a way that both of them are appropriately incentivised toward the goal of economic growth and development.

Imagine if both local and central government tax revenues reflected economic performance more directly.

Under such a system, we would see a different attitude of local communities to a range of activities from mining to housing.

It would provide a more balanced view to projects that at the moment would mainly be seen as a costly loss of amenity.

If Auckland could share in the increased income tax revenue that would flow to central government, Auckland could accommodate more people and this would better enable the council to finance the needed infrastructure. It would also make it easier for the council to make the case for residential development to the existing population because there would be something to be gained out of new development.

Such a system would also reduce the need for central government to intervene in local affairs. No longer would local government need to be pushed toward development because councils would be doing it out of self-interest. . . Dr Oliver Hartwich


Quote of the day

March 18, 2015

In self-proclaimed intellectual circles, it has long been fashionable to belittle the idea of economic growth. “GDP is not the same as happiness”, some critics of growth will explain. Others will warn that excessive growth could destroy the environment and leave our planet uninhabitable. Others still will warn that the finite nature of our resources does not allow continuous growth in any case.

This kind of critique has become a pastime of the chattering classes. It is now part of polite conversation in the better suburbs of developed world cities. To question the value of growth at dinner parties in air-conditioned or heated houses while sipping French champagne and eating Italian prosciutto presumably adds a sense of intellectual gravitas to one’s physical well-being. These people probably do not even realise the self-contradiction in condemning economic growth while enjoying its blessings.  . .

Economic growth is no silver bullet to all the world’s problems. But it comes close. There is overwhelming evidence that the unprecedented economic expansion humanity has experienced roughly over the past three centuries has been a great force for good. It has made our lives better in ways that would have been unimaginable to previous generations.

This should also be the response to the aforementioned critics of growth. At which stage in history do they believe we should have proclaimed the end of economic development? Certainly not in Plato’s time (4th century BC) since that would have prevented the invention of the canal lock (3rd century BC) and paper (2nd century BC). Development should not have stopped at the time the Gospels were written either since otherwise we would not even have invented the wheelbarrow (2nd century AD).

To move to more modern times, had economic development stopped when Ernst F. Schumacher suggested it should (Small is Beautiful was published in 1973), we would have never seen CD-ROMs, the Internet or the first vaccine for meningitis. And even if we had only stopped to grow and develop when Pope Francis told us to in November 2013, we would have never seen the first human clinical trials in the United States for a wearable artificial kidney – or the new iPhone 6.

Economic growth is the driver behind all of these developments because at its core, economic growth is not mainly about the production of more but about the discovery of better (though often it is both). Economic growth helps us to find new and improved ways of combining resources. The outcomes could be a new medicine, a faster way of travelling, a healthier way of eating or a better way of learning. . . Dr Oliver Hartwich

This is an extract from the New Zealand Initiative’s report The Case for Economic Growth by Eric Crampton and Jenesa Jeram.

 


NZ up 1 to 17th for global competitiveness

September 8, 2014

New Zealand has improved its rank on the Global Competitiveness Index and extended the lead over Australia, in the World Economic Forum’s annual survey.

The country is now ranked 17th on the Global Competitiveness Index, up one place from last year when it broke into the top 20 for the first time. This is New Zealand’s highest position to date, and represents an overall improvement of eight places since 2012.

In contrast, Australia’s highly restrictive labour markets continued to drag on the country’s competitiveness ranking, which slipped one place to 22 – well short of the 15th position it occupied in 2009.

A change of government here would reduce labour market flexibility, making it more risky and expensive to employ people.

The damage a Labour/Green/New Zealand First/ Internet mana government would inflict on the country can be seen by the damage the Australian Labor government did there.

Dr Oliver Hartwich, Executive Director of the New Zealand Initiative – which helped compile the survey data – said the continued improvement reflected the strength of the country’s institutions and regulatory settings, particularly in the education, health and labour sectors.

“The investments that this country has made over time into things like the rule of law, property rights and flexible labour markets are paying dividends now, and the results can be seen in our high rate of GDP growth,” he said.

Hartwich said the report emphasised the need to continue investing in the factors that contributed most to business competitiveness, and not to take the complacent attitude to economic reform seen in Australia over the past few years.

“This country has huge economic opportunities sitting right on our doorstep with the emergence of Asian economies such as China, Indonesia and Malaysia onto the world stage,” he said.

“If we want to grasp these opportunities and improve the lives of everyday New Zealanders, we need to not only double down on the areas where we are strong, but also focus on where we are weakest, such as the quality of our business networks and infrastructure investment.”

Hartwich said a number of other factors could also boost the country’s competitiveness, such as unpicking the restrictions of foreign direct investment, freeing up capital for investment by tackling the housing affordability crisis, and reducing bureaucratic red tape.

The annual Global Competitiveness Report is compiled from 111 indicators, categorised into 12 pillars of competitiveness in four main sub-indices: basic requirements, efficiency enhancers, and innovation and sophistication factors.

The next most competitive countries were Switzerland, Singapore, United States, Finland, Germany, Japan, Hong Kong, Netherlands, United Kingdom, and Sweden.

The full report is here.

Competiveness matters for the health of existing businesses and the jobs which depend on them and for attracting new ones.

 


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