Health system's systemic crisis breaking all over Govt through a winter of discontent; Now political funding is a housing-market-with-bits-tacked on too; Housing shortages hammer defence & tourism
Judging by reports of yesterday's post-Cabinet press conference it seems that financial illiteracy on the part of past and present Te Whatu Ora board members, Te Whatu Ora staff, and the members of the Health Select Committee is being put forward the reason that this government was unaware of the financial issues with Te Whatu Ora - at least that is the story from Mr Luxon and Ms Willis (spread the blame). Somehow though, according to Ms Willis, the hard work by Ministry of Health and Treasury staff in the last few months had revealed the shortfalls and mismanagement. I do wonder why the Ministry of Health and Treasury did not apparently work out these alleged shortfalls and mismanagement earlier.
My experience of working for local government for 25 years is that EVBERYBODY looks at the financials monthly. Everybody! Variations needed to be explained and then quarterly, 6 monthly, 9 monthly reforecasts happening.
This 'the Te Whatu Ora board/management financially incompetent/no financial reporting' excuse is the excuse put forward by this government on Kainga Ora and KiwiRail. Funny thing is that privatisation is likely to be put forward as the answer.
Friendlyjordies on YouTube over the ditch spent a lot of time prior to the most recent Australian elections exposing the well-peddled myth that Labor are usess financial managers and only the Liberals can be trusted to safely manage an economy. A trope as old as the ages....
The former HealthNZ board included Amy Adams, former National Cabinet Minister; Vanessa Stoddart, a widely experienced company director; and Naomi Ferguson, former Commissioner of Inland Revenue. It seems a bit of a stretch to accuse them of financial illiteracy.
This is how you can construct 130m per month over budget crisis. If you have a line item that is up, but on balance you are not… probably the reason why Margie is still there at the moment… cause she hasn’t actually done anything sackable. Though it sounds like she is being performance managed..
Can’t wait to see the budget prep reports for this year… or do think they might just get lost in the mail? Should be released any week now
Thanks Bernard, looks like the property folks do own the political space that's for certain. Re the dreadful state of our Defence Forces housing I do find it rather sadly amusing that Chris Penk posted a photo on twitter (I refuse to call it X) of mouldy, cold Defence buildings but he is also the Minister who wants to cut back on insulation in housing. I did point that out. I wonder how many of us are thinking our houses are warm enough at the moment.
The donations data is very troubling, evidence that we are now a plutocracy. Also, interesting that there is no specific category listed for donations to protect our natural environment, but agriculture and tourism, which are both climate dependent are well supported.
Agree on the evidence of a plutocracy. That property industry donations were so high shows how motivated the industry was to bring an industry-friendly government into power, and how much confidence the industry had that NACT-NZF would deliver.
The amount of money thrown at the winning coalition also tells us how thoroughly the industry opposed Labour’s moves towards more equitable balances of power and wealth. They did not accept the basic premise of greater protections for renters, higher standards for rentals, and moves towards civic-minded planning rules.
These changes were, in the scheme of things, quite mild. And yet for our property industry, they were too much. Otherwise, why throw weight so vigorously behind parties that promised to overturn many or most of these changes?
Bit ungrateful of them, don’t you think? Considering the windfall Labour handed property interests by juicing property market to hold up the economy.
Thanks Bernard. Have always really appreciated your idea that NZ doesn't have an economy, we have 'a housing market with bits tacked on' but the recent data on how the extent property/ business owners/developers have donated to National/Act/NZF provides a telling context for the coalition priorities - eg push back on insulation standards - which by any measure doesn't pass the rational, evidence based policy making test.
I thought Luxon's interview during Morning Report this morning was telling. Since he was last on RNZ, the Olympics have started, and are (unsurprisingly) dominating all other 'non-political' news, yet - unlike any other PM interview ever - our media now have zero interest in casual banter about things like that, or anything other than our rapidly disintegrating health, education, and justice systems. My sense is that Luxon's "managerialism" approach, the coalition's enmity towards 'mainstream' media, and their insistence on continuing to gaslight-blame the previous government for what are now-obviously their own mistakes, has completely alienated them from actual, human, people... And I expect (hope!) it will cost them their "mandate" [sic] at the next election (regardless of how much property-industry money props them up).
"those three coalition parties opposed to taxing capital gains on property" - Labour has also been opposed to this for much of its time in Government. Its enthusiasm for it tends to increase when it's in Opposition.
The brightline test started, under National, at ten years, then Labour brought it into three years, i.e. closer to a capital gains tax, and now it has been relaxed to ten years again.
That is not correct Steve. The Brightline test started at 2 years in 2015 and was increased eventually from 3 to 10 by the Labour govt which would have meant that the profit on any "investment" property bought then sold within a 10 year period would be taxed thus catching those who wished to make a quick buck on the capital gain of their property. They would have to hold onto it for longer than 10 years, a substantial period, if they did not want the profit taxed - in effect a capital gains tax on "investment" properties.
Yes but Labour went into the 2020 election - which it won so convincingly - having decided against the Tax Working Group's recommendation of a formal CGT.
I shouldn't say this but because I'm in the/a problem demographic I will.
The healthcare issue is huge problem over much of the world - not just here. My working life was in health and often in what would in the last 20 years be named Management. If I tried to solve any countriy's health system I guess I'd be praying for some technological something to save us. I could not stop life-saving medicine stopping more and more people getting older and older. I could not invent more young people to look after everyone..
I think we have to figure out how to manage the problems we have within this overall reality. I can't imagine it is within the ability of any political party.
An aside - a coupe of years ago i got a hip replacement. Orthopedic surgeons have plenty to do. As that particular surgeon said in a lecture he gave, he blames (joke) his cardiac colleagues for keeping their patients alive so that then he's got to fix their hips! It's all so darn complicated
Actually - the left had better develop ways to work ethically within this reality before we find the right has developed some nightmare solutions. If they haven't already.
The Labour Party had an excellent systemic solution promoted by H2. Did they listen? Nah. They created their own centralized nightmare. If this lot find a solution, then Labour has only itself to blame
Thanks Garry. I didn't know about that. I gather H2 is a data base system? or something. Can you explain a bit more? it sounds that it would be what is needed.
Why do political parties over and over ignore information that no doubtthey pay heaps to obtain?
I tried but failed to add a photo here, from our local shopping centre. It depicts a kebab stall housed on a trailer with power cords and water supplies run, legally, from an external supply. Next to it is a brightly refurbished real estate agency. The kebabs used to be in that building but the business climate failure meant they shifted to more tenuous, less expensive premises. There’s several empty retail outlets in the shopping area. The recycled clothing shops occupy 3 spaces at last count. Yup, I know, there’s long been a “glut” of retail premises. And yes, there’s another large real estate agency along the street, looking equally as fabulous as the first. Next to it another shop being refurbished after a long standing restaurant closed its doors a few months back. Sumner is a beachside village on the edge of Ōtautahi, luxury apartments are not in short supply, the coffee shops and eateries come and go and go. For the first time in the 20 years I’ve been here the two local fushinchups places closed for several weeks this winter. The real estate business seems to be in danger of the bits tagged on to it falling off? The data on the graphs for political donations to the Coalition of Chaos indicates retailer support them? I suppose the aspiring real estate agents in the two flash outfits we have in our shopping centre bring sandwiches from home?
Many thanks to paying subscribers for pushing this one over the 100 likes mark. I’ve opened it up for full public reading, listening and sharing. Chocks away.
I've just about recovered from a very nasty chest infection. Saw the GP 3 times over 3 weeks (sounds like overkill, but it was truly awful). I'm grateful there's a little stretch room in the family finances to cover rhose NZD50 appointments. But what really galled was the $5 charge per script (total over the 3 weeks: $25). I can totally see that folks living pay check to pay check wouldn't go to the GP and/or fill their script (at least at the local pharmacy...).
1. In my 80 years I have never been a member of a political party and, given the state of our nation, do not intend to join one now. I think we entrust far too much power to our (now professional) politicians and urgently need to consider restructuring our political system rather than our victimised public service. I recently had a young Swiss man staying with me and after discussing their system where the real power is devolved downward to local level and a system of referenda I have concluded that theirs is far more democratic and spreads political power far wider than our current narrow wealthy politically engaged elite class system.
2. The idealogical debacle in our health system makes me extremely angry. Why is it that we appear to have so little trust in the judgement of our senior experienced clinicians and give them so little say in how their service is structured and run. The health system should most definitely not be run by a managerial class dominated by political ideologues.
Judging by reports of yesterday's post-Cabinet press conference it seems that financial illiteracy on the part of past and present Te Whatu Ora board members, Te Whatu Ora staff, and the members of the Health Select Committee is being put forward the reason that this government was unaware of the financial issues with Te Whatu Ora - at least that is the story from Mr Luxon and Ms Willis (spread the blame). Somehow though, according to Ms Willis, the hard work by Ministry of Health and Treasury staff in the last few months had revealed the shortfalls and mismanagement. I do wonder why the Ministry of Health and Treasury did not apparently work out these alleged shortfalls and mismanagement earlier.
My experience of working for local government for 25 years is that EVBERYBODY looks at the financials monthly. Everybody! Variations needed to be explained and then quarterly, 6 monthly, 9 monthly reforecasts happening.
Something is not ringing true.
This 'the Te Whatu Ora board/management financially incompetent/no financial reporting' excuse is the excuse put forward by this government on Kainga Ora and KiwiRail. Funny thing is that privatisation is likely to be put forward as the answer.
The Government is lying.
"Funny thing..."
there is nothing funny about the privatisation of water or sewage disposal or roading or electricity supply or railways!!!
privatisation of any of these is a nasty terrible thing (except for the shareholders and CEs).
Friendlyjordies on YouTube over the ditch spent a lot of time prior to the most recent Australian elections exposing the well-peddled myth that Labor are usess financial managers and only the Liberals can be trusted to safely manage an economy. A trope as old as the ages....
They expect us to believe Amy Adams, who was chair of the Finance and Expenditure Committee is financially illiterate? Are they f$%^&ing serious?
And that Rob Campbell did not ensure good reporting financial reporting systems were set up when he was chair.
That is an excellent point.
The former HealthNZ board included Amy Adams, former National Cabinet Minister; Vanessa Stoddart, a widely experienced company director; and Naomi Ferguson, former Commissioner of Inland Revenue. It seems a bit of a stretch to accuse them of financial illiteracy.
I took one for the team and listened to press conference (most of it anyway). Willis said the board members didn't know what questions to ask.
If I was Amy Adams I would pick the phone up just about now.
Except she won't because "independent review panel member" (s)
I found a letter from Reti to Lester from1st June stating that he wanted to see better granularity in financial management reports to him so that they could see what areas were over budget ytd so that the total amount wasn’t smoothed to the dips cover for the peaks… https://www.health.govt.nz/system/files/documents/pages/letterlof-expectations-health-nz-1-june-2024.pdf
This is how you can construct 130m per month over budget crisis. If you have a line item that is up, but on balance you are not… probably the reason why Margie is still there at the moment… cause she hasn’t actually done anything sackable. Though it sounds like she is being performance managed..
Can’t wait to see the budget prep reports for this year… or do think they might just get lost in the mail? Should be released any week now
Thanks Bernard, looks like the property folks do own the political space that's for certain. Re the dreadful state of our Defence Forces housing I do find it rather sadly amusing that Chris Penk posted a photo on twitter (I refuse to call it X) of mouldy, cold Defence buildings but he is also the Minister who wants to cut back on insulation in housing. I did point that out. I wonder how many of us are thinking our houses are warm enough at the moment.
The donations data is very troubling, evidence that we are now a plutocracy. Also, interesting that there is no specific category listed for donations to protect our natural environment, but agriculture and tourism, which are both climate dependent are well supported.
Is there nobody out there joining the dots?
Agree on the evidence of a plutocracy. That property industry donations were so high shows how motivated the industry was to bring an industry-friendly government into power, and how much confidence the industry had that NACT-NZF would deliver.
The amount of money thrown at the winning coalition also tells us how thoroughly the industry opposed Labour’s moves towards more equitable balances of power and wealth. They did not accept the basic premise of greater protections for renters, higher standards for rentals, and moves towards civic-minded planning rules.
These changes were, in the scheme of things, quite mild. And yet for our property industry, they were too much. Otherwise, why throw weight so vigorously behind parties that promised to overturn many or most of these changes?
Bit ungrateful of them, don’t you think? Considering the windfall Labour handed property interests by juicing property market to hold up the economy.
Best to win with both teams...
Thanks Bernard. Have always really appreciated your idea that NZ doesn't have an economy, we have 'a housing market with bits tacked on' but the recent data on how the extent property/ business owners/developers have donated to National/Act/NZF provides a telling context for the coalition priorities - eg push back on insulation standards - which by any measure doesn't pass the rational, evidence based policy making test.
I thought Luxon's interview during Morning Report this morning was telling. Since he was last on RNZ, the Olympics have started, and are (unsurprisingly) dominating all other 'non-political' news, yet - unlike any other PM interview ever - our media now have zero interest in casual banter about things like that, or anything other than our rapidly disintegrating health, education, and justice systems. My sense is that Luxon's "managerialism" approach, the coalition's enmity towards 'mainstream' media, and their insistence on continuing to gaslight-blame the previous government for what are now-obviously their own mistakes, has completely alienated them from actual, human, people... And I expect (hope!) it will cost them their "mandate" [sic] at the next election (regardless of how much property-industry money props them up).
Thanks Tim. Great potted summary.
that ‘Why New Zealand political donations have more than tripled’ article makes a particular deprssing read... no surprise then on another depressing RNZ article today " Govt set aside $216m to pay for heated tobacco product tax cuts" https://www.rnz.co.nz/news/in-depth/523526/govt-set-aside-216m-to-pay-for-heated-tobacco-product-tax-cuts
As always Bernard follow the money...
"those three coalition parties opposed to taxing capital gains on property" - Labour has also been opposed to this for much of its time in Government. Its enthusiasm for it tends to increase when it's in Opposition.
Extending the brightline test for property to ten years was a quasi capital gains tax.
The brightline test started, under National, at ten years, then Labour brought it into three years, i.e. closer to a capital gains tax, and now it has been relaxed to ten years again.
That is not correct Steve. The Brightline test started at 2 years in 2015 and was increased eventually from 3 to 10 by the Labour govt which would have meant that the profit on any "investment" property bought then sold within a 10 year period would be taxed thus catching those who wished to make a quick buck on the capital gain of their property. They would have to hold onto it for longer than 10 years, a substantial period, if they did not want the profit taxed - in effect a capital gains tax on "investment" properties.
My mistake - I've been out of the game for a few years.
But it was just reduced back to two years...a blink of the eye for property investors...cough cough...speculators.
And the present government has reduced the 10 year brightline test to 2 years again much to the delight of property speculators - I mean "investors".
Yes thanks I got it slightly muddled
Yes but Labour went into the 2020 election - which it won so convincingly - having decided against the Tax Working Group's recommendation of a formal CGT.
Even at the time, it was clear Labour thought the 2020 election would turn out rather differently to the way that it did.
If they had known they were on track for a majority, without the Greens or Māori Party, they may well have done things rather differently.
One word. Covid. And that history-defining phrase from Jacinda Ardern about 'never in my lifetime...'
Indeed. Thanks for the feedback - nice to get it as I sit here and notice the afternoons/evenings are getting slightly lighter.
Never in my lifetime will I forgive her for saying that and not taking it back.
Sadly, didn't include owner occupiers and was vague on second (holiday...) properties.
Excellent point.
Dear paying Subscribers to The Kākā. I would quite like to get this one through 100 likes... :)
THREE MORE! And there are 15 on the restock…l close enough?
Please open it!
I shouldn't say this but because I'm in the/a problem demographic I will.
The healthcare issue is huge problem over much of the world - not just here. My working life was in health and often in what would in the last 20 years be named Management. If I tried to solve any countriy's health system I guess I'd be praying for some technological something to save us. I could not stop life-saving medicine stopping more and more people getting older and older. I could not invent more young people to look after everyone..
Even the holy grail of Australia is not free of the same issues. https://www.hsu.asn.au/assets/Uploads/Newsletter-attachments/HSU-Report-February-2022-v07.pdf
I think we have to figure out how to manage the problems we have within this overall reality. I can't imagine it is within the ability of any political party.
An aside - a coupe of years ago i got a hip replacement. Orthopedic surgeons have plenty to do. As that particular surgeon said in a lecture he gave, he blames (joke) his cardiac colleagues for keeping their patients alive so that then he's got to fix their hips! It's all so darn complicated
Actually - the left had better develop ways to work ethically within this reality before we find the right has developed some nightmare solutions. If they haven't already.
The Labour Party had an excellent systemic solution promoted by H2. Did they listen? Nah. They created their own centralized nightmare. If this lot find a solution, then Labour has only itself to blame
Thanks Garry. I didn't know about that. I gather H2 is a data base system? or something. Can you explain a bit more? it sounds that it would be what is needed.
Why do political parties over and over ignore information that no doubtthey pay heaps to obtain?
H2 is Heather Simpson who was Helen Clark's (H1) brilliant head of staff.
Oh dear I got the wrong H2! Didn’t know that lingo. H2 must have had a great brain. Thanks for clarifying.
HS was (still is?) an extremely astute diabolical demon.
The other time bomb besides the climate...aging shrinking populations....
I tried but failed to add a photo here, from our local shopping centre. It depicts a kebab stall housed on a trailer with power cords and water supplies run, legally, from an external supply. Next to it is a brightly refurbished real estate agency. The kebabs used to be in that building but the business climate failure meant they shifted to more tenuous, less expensive premises. There’s several empty retail outlets in the shopping area. The recycled clothing shops occupy 3 spaces at last count. Yup, I know, there’s long been a “glut” of retail premises. And yes, there’s another large real estate agency along the street, looking equally as fabulous as the first. Next to it another shop being refurbished after a long standing restaurant closed its doors a few months back. Sumner is a beachside village on the edge of Ōtautahi, luxury apartments are not in short supply, the coffee shops and eateries come and go and go. For the first time in the 20 years I’ve been here the two local fushinchups places closed for several weeks this winter. The real estate business seems to be in danger of the bits tagged on to it falling off? The data on the graphs for political donations to the Coalition of Chaos indicates retailer support them? I suppose the aspiring real estate agents in the two flash outfits we have in our shopping centre bring sandwiches from home?
Many thanks to paying subscribers for pushing this one over the 100 likes mark. I’ve opened it up for full public reading, listening and sharing. Chocks away.
Erin from Mission Homefront would be a great person to interview. As well as examining defence funding in general.
I've just about recovered from a very nasty chest infection. Saw the GP 3 times over 3 weeks (sounds like overkill, but it was truly awful). I'm grateful there's a little stretch room in the family finances to cover rhose NZD50 appointments. But what really galled was the $5 charge per script (total over the 3 weeks: $25). I can totally see that folks living pay check to pay check wouldn't go to the GP and/or fill their script (at least at the local pharmacy...).
1. In my 80 years I have never been a member of a political party and, given the state of our nation, do not intend to join one now. I think we entrust far too much power to our (now professional) politicians and urgently need to consider restructuring our political system rather than our victimised public service. I recently had a young Swiss man staying with me and after discussing their system where the real power is devolved downward to local level and a system of referenda I have concluded that theirs is far more democratic and spreads political power far wider than our current narrow wealthy politically engaged elite class system.
2. The idealogical debacle in our health system makes me extremely angry. Why is it that we appear to have so little trust in the judgement of our senior experienced clinicians and give them so little say in how their service is structured and run. The health system should most definitely not be run by a managerial class dominated by political ideologues.