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 love/hate numbers for Jacinda are a sad barometer of the state of the nation, perhaps more significant than credit ratings or business confidence surveys. Tim is in canine heaven, he’s a lucky man!
People are starting to realize that jobs are fundamental for a working and inclusive society. In the Labour Market Statistics Snapshot as of 30 September there are 83,200 young NZ'ers under 24 not in education, employment or training. That is a disastrous way of treating our future generations. The government announcements seem to have the tone of "these people are lazy, and we will march them into the jobs which are there, they just have to be disciplined into them".
Mōrena Bernard- what a great podcast this morning. An excellent summation of both your own position and the structural mess we find ourselves in now and how we got here. Thanks!
I really enjoyed the Dawn Chorus podcast! Thank you! I don't know if we can discuss government intervention well without including partnership between Māori and the Crown, nor discuss availability of land for houses without discussing returning land to hapū and iwi so that they have the land to provide housing themselves too? I think affordable housing wouldn't solve our health and inequality problems if it was only led by the government.
Our dog Mollie the collie goes for a dip in the river every day. She has a few years on Tim and her post-swim shake sometimes results in her toppling over sideways, which is a little sad but also quite funny.
Great history lesson this morning, Bernard. All the evidence points to building infrastructure first, with government taking on the debt to do so, and preferably a modern MOWD to build stuff. Alongside that we need less convoluted decision making. It’s not about cutting red tape. In the end our elected representatives need to better inform themselves and be prepared to make decisions for now and the future, motivated by what our society needs rather than some nebulous thing called “the market”.
It would be great if the Kaka were able to engage sitting (rather than former) politicians on this issue - esp. the Opposition shadow spokespeople, but also Chris Bishop - who I sometimes suspect may actually be guilty of practical thinking if he was given half a chance. The issues you outline seem so obvious, so I wonder how we can engage the decision makers with these "big" ideas.
Austerity economics never works - and hasn't since the long depression of the 1870s. Only the government has the heft to provide the investment needed and frankly, I think the majority of the country actually does feel that there are core things that ought to be owned and operated by and for the community - not just those that can pay.
A long-form discussion on the Hoon or one of your special focus podcasts (like with the RBNZ Chief economist last week) would be just the job.
Why does the government get away with refusing to attend interviews with RNZ? it's pathetic and we should not let them away from strong questioning. They go to interviews with shallow rave merchants who agree with them. That's not accountability.
Excellent Chorus this morning Bernard, clear and thoughtful.
I was thinking about budgets and deficits, what with reading about the French likely vote of no confidence. I remember back when the EU was formed, member countries were allowed to run a deficit of 3%. That was the wisdom of the time. Now France, and USA for that matter, run deficits in excess of 6%.
I don't know if 3% or 6% is the correct level. Maybe it's neither. For NZ, alongside possible room on the crown balance sheet, I do imagine the discussions of wealth tax and CGT are the way forward.
It’s so interesting to hear this history and context behind our debt reluctance, being a young(ish) person it helps in understanding why we as a country choose paths that seem at odds with the rest of the world. I had always assumed it was our extreme stinginess/diy attitude that caused this aversion to paying for nice things (or anything at all!)
Bernard, thank you for a very interesting commentary this morning. I think it is interesting that in certain times 0r conditions of crisis, governments will initiate significant (societal) change. Due to a book I am currently reading, I am thinking of the mobilisation of World War II. More recently, I think of actions around covid or responses to the GFC earlier this century. Difficult questions emerge about how and when 'crisis' conditions are such that governments respond. I guess that while (many) people, including Christopher Luxon, continue to make tax-free gains from selling property, a 'crisis' threshold has not been achieved.
how ironic we are going to rely on compulsory retirement funds from other countries through for-profit financiers to stump up the funds to build infrastructure that our taxpayers would rather pay rent for. Why don't we just cut out the middleman and do a deal with the retirement funds through the NZ debt office, issue infra bonds in NZD and crack on? We don't need byzantine structures, keep it simple.
I've listened carefully -as always - and I think follow what you say this morning Bernard. Thank you. I really do get what you are saying about infrastructure.
There is a major blurr in my head though. Is anything planned? Or is that invisible hand still waving around letting the Market decide? And do the politicians have any idea how it works?
I live in the South where we are gobsmacked that the government thinks all we need for a hospital is a bit of a kit out of a few old buildings. At the same time they seem to be in favour of a third medical school in Waikato so - is this because so much of the money of the country is curving round between Tauranga and Auckland? And is this because of planning by government or by the invisible hand? It seems to matter.
I believe this govt want to purposely punish Dunedin as they know they are Labour with Otago university and medical school too much influence especially with Grant the vice chancellor !!!
Run down and create top heavy centric north of Wellington which is also too left and educated.
The love/hate numbers for Jacinda are a sad barometer of the state of the nation, perhaps more significant than credit ratings or business confidence surveys. Tim is in canine heaven, he’s a lucky man!
People are starting to realize that jobs are fundamental for a working and inclusive society. In the Labour Market Statistics Snapshot as of 30 September there are 83,200 young NZ'ers under 24 not in education, employment or training. That is a disastrous way of treating our future generations. The government announcements seem to have the tone of "these people are lazy, and we will march them into the jobs which are there, they just have to be disciplined into them".
We are like a little bunch of islands who matter for nothing and who export our children to the rest of the world. So blind I wanna cry.
Job losses make me feel sick!
Mōrena Bernard- what a great podcast this morning. An excellent summation of both your own position and the structural mess we find ourselves in now and how we got here. Thanks!
I really enjoyed the Dawn Chorus podcast! Thank you! I don't know if we can discuss government intervention well without including partnership between Māori and the Crown, nor discuss availability of land for houses without discussing returning land to hapū and iwi so that they have the land to provide housing themselves too? I think affordable housing wouldn't solve our health and inequality problems if it was only led by the government.
Very much agreed. My instinct would be to hand over management and ownership of Kainga Ora homes and land to Tangata Whenua. https://kaingaora.govt.nz/en_NZ/news/porirua-homes-to-be-upgraded-through-housing-partnership/
That is a neat article and partnership, thank you for the link!
Our dog Mollie the collie goes for a dip in the river every day. She has a few years on Tim and her post-swim shake sometimes results in her toppling over sideways, which is a little sad but also quite funny.
Great history lesson this morning, Bernard. All the evidence points to building infrastructure first, with government taking on the debt to do so, and preferably a modern MOWD to build stuff. Alongside that we need less convoluted decision making. It’s not about cutting red tape. In the end our elected representatives need to better inform themselves and be prepared to make decisions for now and the future, motivated by what our society needs rather than some nebulous thing called “the market”.
As someone who was born after 1984, I really appreciate the history lesson.
🙏😊
Can we make infrastructure crisis the new catch phrase for action!
It would be great if the Kaka were able to engage sitting (rather than former) politicians on this issue - esp. the Opposition shadow spokespeople, but also Chris Bishop - who I sometimes suspect may actually be guilty of practical thinking if he was given half a chance. The issues you outline seem so obvious, so I wonder how we can engage the decision makers with these "big" ideas.
Austerity economics never works - and hasn't since the long depression of the 1870s. Only the government has the heft to provide the investment needed and frankly, I think the majority of the country actually does feel that there are core things that ought to be owned and operated by and for the community - not just those that can pay.
A long-form discussion on the Hoon or one of your special focus podcasts (like with the RBNZ Chief economist last week) would be just the job.
Why does the government get away with refusing to attend interviews with RNZ? it's pathetic and we should not let them away from strong questioning. They go to interviews with shallow rave merchants who agree with them. That's not accountability.
Excellent Chorus this morning Bernard, clear and thoughtful.
I was thinking about budgets and deficits, what with reading about the French likely vote of no confidence. I remember back when the EU was formed, member countries were allowed to run a deficit of 3%. That was the wisdom of the time. Now France, and USA for that matter, run deficits in excess of 6%.
I don't know if 3% or 6% is the correct level. Maybe it's neither. For NZ, alongside possible room on the crown balance sheet, I do imagine the discussions of wealth tax and CGT are the way forward.
What do you make of the Stuff poll showing Donald Trump with a higher rating than Debbie Ngarewa Packer?
Blokes.
Racist blokes.
It’s so interesting to hear this history and context behind our debt reluctance, being a young(ish) person it helps in understanding why we as a country choose paths that seem at odds with the rest of the world. I had always assumed it was our extreme stinginess/diy attitude that caused this aversion to paying for nice things (or anything at all!)
YES! Me too! I always thought that as well!!!
Bernard, thank you for a very interesting commentary this morning. I think it is interesting that in certain times 0r conditions of crisis, governments will initiate significant (societal) change. Due to a book I am currently reading, I am thinking of the mobilisation of World War II. More recently, I think of actions around covid or responses to the GFC earlier this century. Difficult questions emerge about how and when 'crisis' conditions are such that governments respond. I guess that while (many) people, including Christopher Luxon, continue to make tax-free gains from selling property, a 'crisis' threshold has not been achieved.
how ironic we are going to rely on compulsory retirement funds from other countries through for-profit financiers to stump up the funds to build infrastructure that our taxpayers would rather pay rent for. Why don't we just cut out the middleman and do a deal with the retirement funds through the NZ debt office, issue infra bonds in NZD and crack on? We don't need byzantine structures, keep it simple.
I've listened carefully -as always - and I think follow what you say this morning Bernard. Thank you. I really do get what you are saying about infrastructure.
There is a major blurr in my head though. Is anything planned? Or is that invisible hand still waving around letting the Market decide? And do the politicians have any idea how it works?
I live in the South where we are gobsmacked that the government thinks all we need for a hospital is a bit of a kit out of a few old buildings. At the same time they seem to be in favour of a third medical school in Waikato so - is this because so much of the money of the country is curving round between Tauranga and Auckland? And is this because of planning by government or by the invisible hand? It seems to matter.
The cold hands of Stephen Joyce are all over the third medical school proposal.
I believe this govt want to purposely punish Dunedin as they know they are Labour with Otago university and medical school too much influence especially with Grant the vice chancellor !!!
Run down and create top heavy centric north of Wellington which is also too left and educated.
So south of Taranaki we have presumably been cancelled.
No more highrises on Waiheke Island (2nd to last line of table)
https://promising-sparkle-d7f0c0cfc9.media.strapiapp.com/network_capacity_map_and_table_27_nov_final_7dac83f101.pdf