Dawn chorus: Greens want 2030 car ban
Shaw to challenge Ardern in Cabinet on climate change car imports; Wellington City Council eyes 23% rates hike, but shouldn't it be using its balance sheet first? Fed set to do more heavy lifting
TLDR: Morena. James Shaw is putting the heat on Jacinda Ardern’s ‘nuclear-free moment’ pledge on climate change with a plan to propose a ban on petrol and diesel imports by 2030, as the UK is planning. He also says a wealth tax would help the Reserve Bank control the housing market fire.
Wellington City Council is considering a 23% rates hike next year to offset the Covid-19 hit to revenues and to help pay for decades of previous under-investment in pipes as the capital’s water infrastructure crumbles. But why is most of the weight going on rates?
Why not use a strong balance sheet and borrow? It has capacity within the new 300% debt to revenue limit set by the LGFA and it is only the inherent conservatism of the Council’s fiscal managers that is stopping the Council. It has set an internal limit of 175% of income, almost half the already-too-low level set by the LGFA.
Elsewhere, at least one in four property investors aren’t complying with the brightline test. Meanwhile, Global stocks are at record highs in anticipation of more central bank money printing to take up the load because America can’t organise a looser fiscal policy. The idea of moral hazard has long gone.
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Useful reports
Here’s the Cabinet paper on the supermarkets competition inquiry announced yesterday.
Here’s a Tourism Industry Aotearoa survey showing just over half of its operators cut staff during the Covid-19 lockdowns, but now 60% are having trouble finding staff…
Coming up…
Today - PM Jacinda Ardern will give a speech this morning at Infrastructure NZ’s conference in Auckand
Sat Nov 21 - National Party AGM due to vote on re-election of President Peter Goodfellow. He has confirmed he will run again.
Weds Nov 25 - 2pm - Reserve Bank to publish six monthly Financial Stability Report (FSR) . Expected to warn of re-imposition of high LVR lending limits from May 1, 2021.
Weds Nov 25 - Opening of Parliament for 53rd term, including swearing in of new MPs
Thurs Nov 26 - Speech from the throne in Parliament outlining Government’s agenda
Weds Dec 9 - Parliament rises for the year.
Ngā Mihi
Bernard
PS: Thanks to subscriber Martin for his Kākā pic today. A chunky number. (The Kākā) Send in your favourite pics for me to use too.