The Kākā by Bernard Hickey
The Kākā by Bernard Hickey
Govt says borrowing to build now last resort
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Govt says borrowing to build now last resort

Bishop releases infrastructure finance strategy based on using private funds & user pays before using the Crown's balance sheet to borrow as a last resort. That will fail to solve
The way through our $100 billion-plus infrastructure deficit will not be eased by Chris Bishop’s approach. Photo: Lynn Grieveson / The Kākā

Mōrena. Chris Bishop unveiled his major infrastructure funding and financing plan yesterday that made clear borrowing with public debt to build infrastructure would be a last resort, with private funds and user pays the main tools to both limit the amount built and pay for it.

In my view, that’s unsustainable and unnecessary, given our $100 billion-plus infrastructure deficit, still-rapid population growth and huge structural, local and global demand for New Zealand Government bonds, rather than the debt crisis portrayed by the Government, which I talk about this more in the podcast above.

Elsewhere in the news this morning:

  • A new Stuff poll out overnight shows National-NZ First-ACT in a virtual dead-heat with Labour-Green-Te Pāti Māori and Christopher Luxon has fallen behind Chris Hipkins in the preferred PM rankings, with Jacinda Ardern again the most popular politician in the country (see more in charts of the day below).

  • The poll also shows cost-of-living concerns are the biggest for voters, with health rising fast into second place, while Government debt is right at the bottom of the list of concerns, despite the Government making it the number one priority.

  • Up to 700 people in the Lower Waihao area between Timaru and Oamaru can’t drink their tap water this morning after Taumata Arowai-The Water Services Authority said nitrate levels were above 50 mg/l in their water supplies, making it unsafe to drink, especially for babies.


Charts du Jour - Jacinda popular. Again.

Stuff poll

Debt not a worry, despite Govt’s (misplaced) fears

Stuff poll

The Kākā’s Journal of Record for Tuesday, December 3

  1. Jobs & poverty: Social Development & Employment Minister Louise Upston announced that Ministry of Social Development case managers will develop individualised plans with up to 70,000 beneficiaries to get them employed. Beneficiaries who don't fulfill actions agreed on with their case manager will face sanctions via the new Traffic Light System.

  2. Infrastructure: The Government released guidelines for private sector entities looking to propose infrastructure public-private partnerships. The guidelines specify that infrastructure proposals should be in the public interest and provide good value for money; private sector entities must also demonstrate why are the only party able to deliver the proposal's outcome.

  3. Education & poverty: A Ministry of Education-commissioned review of the Government's Healthy School Lunches program found that teachers reported improved outcomes for students, and whānau reported less stress from food bills. The review found the program also grew local catering businesses and provided employment opportunities for older people. RNZ

  4. Housing: Stats NZ reported that home consents were down 6.9% in October 2024 compared with October 2023. Multi-unit house consents were down 18% compared with October 2023, whereas stand-alone house consents were up 8.6%.

  5. Migration & poverty: The Employment Relations Authority fined a company that supplied labour to the Bay of Plenty kiwifruit industry $100,000 for underpaying temporary visa holders. The Labour Inspector said Asad Horticulture Limited's record keeping breaches were "systemic"; the company's sole director has paid the affected employees over $45,000 in arrears.

  6. Migration & poverty: Partners and spouses of migrants working higher-skilled roles on an Accredited Employer Work Visa will now be eligible for open work rights, Immigration Minister Erica Stanford announced. Stanford said partners of AEVW holders in lower-skilled roles will also gain open work rights if their partner is on a "pathway to residency."


Cartoon du Jour: ‘Help’

Chris Slane via BlueSky for Farmers Weekly

Timeline-cleansing nature pic

Stand clear: to mark the start of summer, Tim really got into the swimming - and the shaking - at the beach yesterday. Photo: Lynn Grieveson / The Kākā

Mā te wā

Bernard

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