The Kākā by Bernard Hickey
The Kākā by Bernard Hickey
A housing market with bits tacked on doesn’t need many (if any) pure scientists
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A housing market with bits tacked on doesn’t need many (if any) pure scientists

Government shocks scientists and universities by halving funding for blue-sky research, raising fears it will worsen the brain drain to rest of OECD, which spends double on R&D that spent by NZ
The humanities and social sciences panels of The Marsden fund will be disbanded and no longer supported, because “real impact on our economy will come from areas such as physics, chemistry, maths, engineering and biomedical sciences,” said Judith Collins. Photo: Lynn Grieveson / The Kākā

Morena. Long stories short in Aotearoa’s political economy for Thursday, December 5:

  • The Government halved spending on ‘blue-sky’ research by completely removing social sciences and humanities funding, arguing only research in physics, chemistry, maths, engineering and biomedical sciences would help the economy.

  • The latest Government spending cuts take the numbers of Government-funded science job losses to well over 500 this year, adding to the over 200 residents who emigrate each day to other OECD countries, where the average for Research & Development spending of around 3% of GDP is more twice that of New Zealand.

  • Stats NZ has reported the numbers of people living in severe housing deprivation rose to 112,496 of 2.3% of the population in the census last year from 99,462 or 2.1% in 2018, with 18,761 either sleeping rough or in tents, boarding houses or marae, up 62% from 11,574 five years ago.

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Chart du jour: A churn and burn economy


The Kākā’s Journal of Record for Thursday, December 5

  1. Housing: Stats NZ reported that at least 112,496 NZers were severely housing-deprived in 2023, up from 99,462 in 2018. The grouping includes people without shelter, in temporary accommodation, temporarily sharing someone else's house, or in uninhabitable housing.

  2. Climate: A Government-commissioned independent review determined biogenic methane reduction targets for NZ that would satisfy Paris Agreement warming goals. The Green Party argued lowering NZ's methane reduction targets would unfairly shift the burden for reducing greenhouse gases away from agriculture and onto other sectors.

  3. Health: The Labour Party accused Te Whatu Ora Health NZ of exaggerating its deficit in order to justify job cuts, citing that the Auditor-General was made aware of discrepancies in the agency's accounts. In response, Health Commissioner Lester Levy sought an apology from Labour's health spokesperson Dr. Ayesha Verall, saying there was "no reason" for Te Whatu Ora to want to “cook the books".

  4. Jobs: Under proposed changes to the Employment Relations Act announced by Workplace Relations and Safety Minister Brooke van Velden, employees wouldn’t receive any compensation in personal grievance cases when their employer can show they either engaged in misconduct or contributed to the situation giving rise to the case. NZCTU President Rachel Mackintosh called the proposals part of a "sustained series of attacks" on workers' rights by the Government.

  5. Climate & environment: Agriculture and Forestry Minister Todd McClay and Climate Change Minister Simon Watts announced new limits to farm to forestry conversions entering the Emissions Trading Scheme meant to "protect food production for farmers”. The changes, coming into force from October 2025, include a ban on forestry on flat, productive farmland.

  6. Climate: ANZ reported increased sales of NZ carbon units at the Government's auction today, with over 4 million units sold out of 11.126 available. ANZ expects forestry to be the main source of units from 2025, despite the government's upcoming ban on converting certain classes of farmland to forestry.


Cartoon of the day: It’s a priorities thing.

Timeline-cleansing nature pic of the day

It’s hot out there (neighbour’s cat appreciating the new outdoor rug) Photo: Lynn Grieveson / The Kākā

Mā te wā

Bernard Hickey

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The Kākā by Bernard Hickey
The Kākā by Bernard Hickey
Bernard Hickey and friends explore the political economy together.