Dawn chorus: Banks get with the programme

TLDL & TLDL: There was some good news yesterday for first home buyers, investors and developers of apartment buildings and other medium density homes that are needed to address housing unaffordability and climate change.

ANZ, the country’s biggest bank, announced it would lend on apartments bigger than 38 square metres with a 20% deposit. Previously it required a 50% deposit on anything less than 45 square metres. ASB is also now lending with a 20% deposit on homes over 40 square metres and recently dropped its requirement for a car park. BNZ still requires a 35% deposit for apartments under 50 square metres. (Interest)

Banks have now bowed to pressure to relax lending restrictions on small apartments. Photo: Patrick Perkins/Unsplash

Money flooding in

There’s also more good news for the Government’s finances, emphasising again that it can’t cry poor when under pressure to fund social and infrastructure spending. Treasury figures yesterday for the 11 months to the end of May showed a budget deficit before gains and losses of $3.644b, which less than half the forecast in the May budget for a deficit of $9.446b.

Revenues were $4.161b better than expected because of stronger GST and PAYE receipts linked to better-than-forecast economic and jobs growth, while Government spending was $881m less than expected. The Government also has over $40b of cash in its settlement account with the Reserve Bank.

The next two Budgets before the 2023 election will have plenty of room for spending.

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Global tax deal done

There’s also a more positive longer term outlook for receiving tax from global tech firms. Overnight, 130 of the OECD’s 139 countries agreed to a global deal to set a 15% minimum corporate tax rate in exchange for giving up digital services taxes.

The deal will mean Big Tech firms with revenues of over €20b of turnover will have to pay 20-30% of their profits over a 10% margin to countries in which they operate. However, there were nine holdouts, including Ireland, Hungary, Estonia, Barbabos, Kenya, Nigeria and St Vincent and Grenadines. It’s estimated the changes due to kick in from 2023 will increase the tax being paid by Big Tech by US$100b a year. (Politco)

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Scoops and news breaking this morning

Thomas Mead @thomasmeadnz

#Exclusive - A 1 News investigation has uncovered images of filthy machinery and serious health and safety issues at a Talley's frozen food factory in Ashburton. My full story here:

tvnz.co.nzExclusive: Whistleblower shares images of filthy conditions at Talley’s factoryTalley’s is one of New Zealand’s largest food producers.

Bernard Hickey @bernardchickey

ScoMo wants to set vaccination rate thresholds for re-opening and to avoid more lockdowns. Important for us because our re-opening schedule is very much tied to Australia’s because of our travel bubble.

theaustralian.com.auNoCookies | The Australian

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Signs o’ the times news

Kristin Hall @kristinhallNZ

The Ministry of Health has apologised after it sent a mass text to people (including yours truly) saying they are in vaccine group 3 when it appears they are not. Meanwhile plenty who are supposed to be in group 3 missed out on the message.

tvnz.co.nzGPs flooded with calls after Covid-19 vaccine texts sent in errorThe Ministry of Health apologised after some young Kiwis were incorrectly told they were eligible for a jab.

bernardchickeysubscribers @bernardchickey2

“There’s no question that the company was right to seek government assistance during the crisis. But to then declare a $72.7 million profit while not returning the $7.9 million wage subsidy is unconscionable on many levels.”

crux.org.nzSkyline’s refusal to pay back wage subsidy “galling” - shareholderSome shareholders of Skyline Enterprises and smaller tourism operators in Queenstown say the company’s decision not to pay back its government-funded wage subsidy is “galling” and “tone deaf”.

henry cooke @henrycooke

Kainga Ora almost definitely asked for an extension to its statutory deadline to meet the Healthy Homes standards. But the minister won’t give them one:

i.stuff.co.nzKainga Ora asked for extension to get state houses up to Healthy Homes standards, National MP claimsThe construction boom has caused "challenges", but Kainga Ora refuses to be drawn on whether it asked for more time.

Newshub Politics @NewshubPolitics

Govt relying on tenants to enforce Healthy Homes standards, putting relationships with landlords at risk - Renters United

dlvr.itGovt relying on tenants to enforce Healthy Homes standards, putting relationships with landlords at risk - Renters UnitedThe new measures came into effect today.

Brian Kahn @blkahn

The town that broke the all-time Canada heat record three days in a row is now burning down. “It's dire. The whole town is on fire. It took, like, a whole 15 minutes from the first sign of smoke to, all of a sudden, there being fire everywhere”

cbc.caVillage of Lytton, B.C., evacuated as mayor says ‘the whole town is on fire’ | CBC NewsA small B.C. village that endured the hottest temperatures ever recorded in Canada for days on end this week was engulfed in flames Wednesday night and residents were forced to flee, many without their belongings.

1 NEWS @1NewsNZ

Thousands of coastal NZ homes at risk amid 'baked in' climate change impacts tvnz.co.nz/one-news/new-z…

Stuff.co.nz Politics @NZStuffPolitics

$20 benefit boost means no change for some people, child poverty group says

dlvr.it$20 benefit boost means no change for some people, child poverty group saysAn increase is welcome but the extra $20 from Thursday will be clawed back for people getting some assistance, Child Poverty Action Group says.

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Useful longer reads

Bernard Hickey @bernardchickey

How about a subsidy scheme where you kill two birds with one stone. The government swaps two e-bikes in exchange for a clunker car for scrapping. Gets a carbon belching car off the road and a couple of people into much cheaper, healthier transport.

stuff.co.nzCalls to extend subsidies to e-bikes as well as electric carsElectric bikes are better for the environment than electric cars. But the Government is only helping people to buy the latter.

Thomas Coughlan @coughlthom

@Salty_NZ Would let us bypass the deadlock at the UN security council and run our own sanctions regime. Sam at Newsroom did a good explainer.

newsroom.co.nzWhy the Government should reconsider autonomous sanctions lawDespite strong words over Xinjiang, NZ has little ability to take meaningful action.

brian white @BrianBoruWelnz

@bernardchickey Also, will the poor end up subsidizing electric cars via higher domestic electricity prices?? Electric Cars Are Coming, and Fast. Is the Nation’s Grid Up to It?

nytimes.comElectric Cars Are Coming, and Fast. Is the Nation’s Grid Up to It?GM’s decision this week to phase out gasoline vehicles is the latest in a major shift that will mean drastic new demands on electric utilities. Here are four things that will need to happen.

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Chart of the day

Max Rashbrooke @MaxRashbrooke

On a per-population basis, still some way off the 1970s peak, but still heading for the highest rate in over 40 years. stats.govt.nz/news/number-of…

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Some fun things

Philip Bak @niinegames

@ultrabrilliant any excuse to post my favourite Ringo thing...

Andy Kelly @ultrabrilliant

When you have to record a promo film for your new single Paperback Writer and your drum kit gets lost in transit.