Kia ora. Long stories short, here’s my top six things to note in Aotearoa’s political economy around housing, climate and poverty on Wednesday, September 25:
Ad agency climate activist group Comms Declare today launched the New Zealand version of the globally compiled ‘F list,’ which names 14 local agencies “which have ignored the scientific consensus and kept promoting fossil fuel clients,” with Z Energy called out in particular as the biggest fossil fuel advertiser that uses four local ad agencies and one PR company.
In scoop of the day, The CEO of New Zealand’s biggest bank with the most exposure to the housing market has come out in favour of a Capital Gains Tax on realised gains on housing, telling RNZ’s Guyon Espiner in an interview aired this morning that “the time has arrived for a capital gains tax”.
In deep-dive of the day, RNZ’s Eloise Gibson looks in depth at the burgeoning demand for renewable electricity from new data centres in Aotearoa.
In solutions news, the International Energy Agency (IEA) published a major report overnight on the next six years of energy transition, saying tripling global renewable energy capacity by 2030 was within reach thanks to “favourable economics, ample manufacturing potential and strong policies.”
In quote of the day, Samoa’s environment minister says his people are being drained by the lip service of the world’s richest economies failing to do enough to limit climate change.
In charts of the day, the NZ economy is set to keep contracting in line with the slump seen during the 2008/09 Global Financial Crisis, as shown by the latest leading indicators and a fresh consumer confidence survey.
(There is more detail, analysis and links to documents below the paywall fold and in the podcast above for paying subscribers. If we get over 100 likes we’ll open it up for public reading, listening and sharing.)
1. Z Energy & five agencies called out in global climate ‘F list’
NZ version published of ‘F list’ naming agencies for fossil fuel advertisers
Comms Declare today launched the New Zealand version of the globally compiled ‘F list,’ which names 14 local agencies “which have ignored the scientific consensus and kept promoting fossil fuel clients.”
Z Energy was called out in particular as the biggest fossil fuel advertiser. It uses four local ad agencies and one PR company.
Consumer New Zealand, the Environmental Law Initiative and Lawyers for Climate Action New Zealand filed a joint claim in the High Court in November last year, alleging Z Energy breached the Fair Trading Act with its claims about saving emissions in its Moving with the Times advertising campaign. RNZ
2. Scoop of the day: ‘The time has come for a CGT’
ANZ CEO Antonia Watson agrees with CGT on realised gains on homes
Antonia Watson, the chief executive of New Zealand’s largest and most housing-exposed bank, ANZ1, has come out for the first time in favour of a capital gains tax on the realised capital gains from housing. She was speaking in an interview with Guyon Espiner aired on RNZ this morning.
"The time has arrived for a capital gains tax.”
"In this country, people are investing in housing for the purpose of getting a capital gain on it. And if that's the purpose of it, why not have that as part of the tax take? Have a capital gains tax on realised gains?"
The tax should be levied "once you've got the money in the bank," she said.
"I think that there is some fairness in saying that a gain from a capital gain [is the same] compared to a gain from your income."
Watson qualified her comments with a warning about the compliance costs of introducing such a tax, and she made it clear she was opposed to any tax on unrealised gains.
Honorable mentions
Health: ED patient attempts 19km walk home at night due to long wait. Nigel Wade says he didn’t want to wait all night to see a doctor at Hutt Hospital, so he tried to walk home ... to Upper Hutt. The Post-$$$’s Rachel Thomas
Forestry: Slash left on steeplands due to health and safety will ‘chaotically mobilise’Scientific paper calls for an urgent review of forestry regulations after finding “systemic failure” in rules about what clearing slash. Stuff’s Marty Sharpe
Environment: Fears landmark ruling to protect tiny island’s coastline will be overturnedMōtītī Islanders took on the Crown, the fishing industry and big iwi ‒ and won ‒ but they’re now preparing for another battle. The Post-$$$’s Andrea Vance
Politics: Greens vow to revoke new oil and gas permits, but Labour doesn’t appear on board. Difference between opposition parties’ positions crystallise after Government introduces legislation that would overturn the offshore exploration ban. The Post-$$$’s Tom Pullar-Strecker
Research: ‘Huge blow’: GNS Science confirms move to cut 10% of its workforce NZ Herald’s Jamie Morton
3. Deep Dive of the day
Climate: Energy-hungry data centres want NZ's renewable electricity to reduce climate impact RNZ’s Eloise Gibson
In a high-growth scenario, New Zealand government estimates say data centres could suck up as much electricity in 2030 as is used today by the country's current biggest power user - Tiwai Point aluminium smelter - equal to over 7 per cent of the country's future supply.
New Zealand's grid is currently about 85 percent renewable-powered, and that's expected to rise into the 90s with the growth of solar and wind.
But when renewable supply is tight, power generators turn to coal - with impacts on New Zealand's electricity emissions.
A common way for data centres to lower their reported climate impacts is paying a premium to an electricity company, in return for a certificate saying they received 100 percent renewable power for their operations.
But while the generator itself might be producing only renewables, in reality the electricity is drawn from the national grid with its mix of wind, solar, hydro, geothermal, gas and coal. Renewables supply most of the baseload.
But when demand gets too high, typically on a winter's evening, and the grid as a whole runs short of renewable power, other generators have to burn coal to compensate.
Buyers of these green certificates say by that supporting renewable generators, they are supporting New Zealand's clean power supply.
Honorable mentions
Economy The perfect storm for Wairarapa commuters RNZ’s Emily Ireland
Economy: Why has work stopped on one of NZ’s tallest buildings? The luxury Seascape development in Auckland should be full of rich listers in penthouses. Instead, it’s an empty construction site with the builder and developer at loggerheads. Stuff’s Lloyd Burr
4. Solutions news
Electricity: How floating solar panels could help solve NZ's energy crisis Lincoln University’s Faith Jeremiah via The Conversation/RNZ
Honorable mentions
Poverty: 'When communities meet together, there's more blessing' RNZ
Housing 'Fantastic development opportunity': Head Hunters gang pad sells for bargain $378k NZ Herald
5. Quote of the day
‘We’re fighting for our futures in the Pacific. Help us.’
“I wonder if our countries are moving further and further away from the unity and the moral fortitude we require to protect our people. We need all countries, but particularly the G20, to lead the way. The vulnerable people of our world are drained by the lip service" Samoan Natural Resources and Environment Minister Cedric Schuster, who chairs the Alliance of Small Island States (AOSIS), speaking overnight in New York during ‘Climate Week’. Via Reuters
6. Charts of the day
Back on track?
The Kākā’s Journal of Record for Wednesday, September 25
Work & economy: The Westpac-McDermott Miller Employment Confidence Index for the September quarter was down 2.2 points to the lowest level since NZ emerged from the first Covid-19 lockdown. Wellington was the most pessimistic region, with Auckland "not far behind." RNZ
Climate & business: The External Reporting Board said it will potentially ease certain climate disclosure requirements, allegedly to allow climate-reporting entities time to improve their data quality & availability. The move comes in response to feedback from climate reporting entities who "raised concerns" about aspects of the disclosure regime.
Politics & governance: Chris Bishop announced that the Parliament Bill, which will "consolidate and modernise the four Acts comprising Parliament’s statutory framework", passed its first reading. The Bill gives parliamentary security officers powers similar to court security officers. It also gives the Electoral Commission the role of deciding when a petition is big enough to trigger a referendum. RNZ
Transport: Justice Minister Paul Goldsmith & Transport Minister Simeon Brown announced that people who abuse or attack public transport workers and taxi drivers will face harsher sentences. Councils will also soon be able to apply for funding for safety screens & CCTV monitoring for public transport. 1News
Health: Te Whatu-Ora Health New Zealand’s 2024-27 plan to grow the mental health and addiction workforce will fund more clinical psychology internships & working with the tertiary sector to redesign training. The plan also intends to strengthen the mental health system’s focus on prevention & early intervention.
Savings & ageing: The Financial Markets Authority's annual report on KiwiSaver found that strong investment returns and member contributions led KiwiSaver funds to rise over $100 billion for the first time, to $111.8 billion by March 31. The amount withdrawn due to financial hardship was up 82.4% in the year to March 31, however, to $264.3 million. RNZ
Cartoon of the day
Not so funny
Timeline cleansing nature pic of the day
Morena
Ka kite ano
Bernard
ANZ CEO says 'it's time' for a Capital Gains Tax