69 Comments
Oct 5, 2023Liked by Bernard Hickey

This is a stupendous edition Bernard. Please open it up to the public!

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Yes, stupendous is the best word to describe this!

Expand full comment
author

Jono and Hamersley. Thanks. Will do.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Superb, if depressing, summary thanks, Bernard. As far as I can see, it's only Green Party politicians who are willing to talk about any of this (although their wealth tax includes shares, so I guess doesn't redress the massive imbalance in favour of land). I also think this would be a good one to make public

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

So, a land value tax? And which party is promoting that?

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

You n me know ... TOP ANSWER Beverly .. 🤭👍🤣

Expand full comment

TOP, The Opportunities Party, seems to have the most sensible answer to taxing landed wealth: an annual 0.75% tax on the 'unimproved' value of residential land, which could be simply added to existing rates bills without much bureaucracy, and used to reduce income tax at the lower end.

Anyone registered in the Ilam electorate who does not want to see Winston Peters and NZ First disrupting government should vote for Raf Manji and TOP, regardless of whether they are a National, Labour, Greens, or Te Paati Māori supporter.

The One News Verian poll shows National-Act getting only 59 seats. They will need two more votes to govern. That looks like NZ First.

But if Raf Manji wins the Ilam electorate, TOP will bring two or even three MPs to Parliament, and would support a government on confidence and supply from the 'cross-benches', yet be able to vote against legislation that would undo some of the departing government's more worthwhile accomplishments.

https://youtu.be/uh64ARgRG7w?si=18A0ymGyez4Q872O

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Can't believe how true the NZ economy part of this article is. Nailed it Bernard

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Certainly make it public.

Expand full comment

send a copy of this to each political party and maybe to the major new media outlets asap before the election.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

How do we get out of this cycle? ie. what will it take to change 'the system' in NZ?

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Vote Green

Expand full comment

Hehe, I think TOP are closer than the Greens, but of course with even less leverage. My question was more focused beyond the politics - eg. perhaps the way economic 'success' is reported in NZ. Like every time GDP is mentioned to include another narrative alongside that shows the full picture ie. the GDP result's impact on social cohesion, impact on natural world, impact on equity (non-financial) ...

Expand full comment

I didn’t mean to be glib, I really believe that the Greens have the people and policies and commitment to potentially be the leading leftwing party, and take us into a prosperous, but fairer more equitable future for all.

I do not know enough about TOP to comment.

Expand full comment
Oct 5, 2023·edited Oct 5, 2023Liked by Bernard Hickey

The vast majority of voters, not just in NZ, haven't got a foggy clue how it works, which means that, although TOP is full of smart young people, they simply can't publicly platform the sort of 'big-picture' ideas that they are certainly capable of devising. Thus they have to fall back on fairly simple (in fiscal terms) policy that ordinary folk can understand. probably same for most parties to be honest.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

But what people do understand is the big picture of emerging crime. Bernard mentions inequality in the end "squeezing out and being noticed". I was just in Mt Roskill today, taking my grandson to the orthodontist. I asked the kids to stay in the car with me and not go to the dairy as the receptionist reported that there had been stabbing in that poor beleagured establishment that morning. An unequal society becomes a very non-utopian place, very quickly.

Expand full comment

I know a young girl who has moved to Rotorua for work and she said many people live in Tauranga and travel 1.5 hours each way to Rotorua to work because the life style is so bad in Rotorua. That there are many homeless people there.

Expand full comment

I have just voted for Raf in Ilam and the Greens for the party vote. I wonder if all the smaller parties could be a bulwark to stop the big parties destroying the country.

Expand full comment

It is going to be so interesting to see how much of an impact the 'neither red nor blues' have on the outcome of this election. If only the likely non-voters realised their power to sway the result - ironic when feeling powerless to make a difference is a reason not to vote. May come down to which party has worked that sector the best - which we won't know in advance given they're unlikely to show up in any std polling.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Leadership.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

How about we withdraw our energy from national Politics and put it into local politics. Then we have to support our local councils in pushing for more resources being devolved to local government> I heard an interview done with the mayors of Greater Manchester and Birmingham and even though one was Labour and one tory, they were agreed that all the work that matters is happening at the local level.

I seem to be getting the picture that it indeed cities / local regions that are pushing beyond moribund national governments like we have.

Expand full comment

I like your angle - local government is also the current home of citizen assemblies and most likely to encourage sociocracy (positive thinking here) https://www.sociocracyforall.org/case-studies/

Expand full comment

I'm with you both @Wendtk @PerfectlyFrank. And I'm watching with interest the Ngati Toa/The People Speak initiative in Porirua, where I live. Here's Helmut Modlik, CE of Ngāti Toa speaking last year on this work: https://trustdemocracy.nz/2022/04/helmut-modlik-deliberative-community-governance/

Expand full comment

Good link thank you Maisie

Expand full comment

Thanks for link, PerfectlyFrank

Expand full comment

Excellent piece of analysis there Bernard.

Now ask each political party for their comments and commitment to a capital gains tax.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

This is such important information that I think that if the general public knew and understood all this then political parties would look very different. Our current situation seems to be on the road to increasing inequality, poverty and desperation for too many people. I agree that you should make this public.

Expand full comment

"seems to be"

is definitely

Expand full comment

What do you call it when an aspiring PM who owns seven houses proposes a policy to enrich landlords? How about an abuse of power for pecuniary reward, aka corruption?

Jocelyn Harris.

Expand full comment

Key pursued policies that were massively advantageous to the banks- enlarging the size and number of loans by loose immigration and overseas buyer policy. Now he is Chairman of the biggest of them all. Not a coincidence.

Expand full comment

I can only think "corruption" too and the word also applied to Key.

Expand full comment

it is totally/utterly CRIMINAL!!!

Expand full comment

A crime against humanity?

Expand full comment

criminal in the sense: exceedingly bad and exceedingly wrong, and therefore not to be tolerated and to be prohibited and to be legislated to be a criminal offence.

Expand full comment

I agree

Expand full comment

Hello everyone. Is anyone please able to clarify this comment from Bernard today. I have re-read it a few times but I cannot make sense of it. Thanks in advance.

"the need for increased demand for rental properties and the desire to reduce competition for that rental property creates extra demand in the political economy for population growth from temporary migrants without the necessary infrastructure investment to enable more house building."

Expand full comment

...increased demand from renters......to reduce renter choice for that rental property...

(my guess)

Expand full comment

That's how I read it too

Expand full comment

if Bernard would explain please.

Expand full comment

We do need to put this stuff into everyday language if we expect the general population to A) understand it, B) use it to fight back against the corrupt oligarchy. Is this a space where volunteers might collaborate to produce a simple pack of ‘elevator pitches/ 30 second summaries of the key points?

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Open to the public please. Masterful analysis of NZ inc.

patrick medlicott

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Please make this public! It's so huge and we so need all of the country to get this!

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

It is truly bananas - both, how we treat housing and land banking in this country (which I have massively managed to profit from, without ever planning to do so), and hearing a climate scientist say these words. If we were at all a serious or intelligent species or country, we'd take these facts and start doing WHATEVER THE F*CK WE CAN to stop this very clear, obvious, and fatal calamity that is besetting us all. Instead, we kick down on the renters and beneficiaries, lick up to the millionaires and billionaires, and keep slipping on the banana skin that is Winston Fricken Peters! Unbelievably stupid and depressing timeline.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

I share your frustration.

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Our attitude to land is so stupid. We sit in horrible traffic congestion, pay high rents and rates for crap accommodation and services, give billions to Australian bank shareholders, over-work our healthcare system, collectively suffer from poverty and crime, dilute community connections needed for emergency situations etc... All to protect the value of a square of dirt that we would typically receive the same benefit from simply 'occupying' as 'owning': A square of dirt that is only valuable because of what we collectively build around it.

I guess we've made our bed, as far as carving *our* country into private investment assets is concerned. But if we're going to insist on landowning being a profitable enterprise, presumably it should be taxed like one? Only, several parties hoping to form our next government are not only laughing that idea off, but planning policies to super-charge it deeper into a socially-divisive hellscape. Those politicians have their own selfish reasons for that, but what I can't understand is why so many "normal" people - suffering a paragraph's worth of problems and more, so obviously linked to a shit housing market - would want this for themselves and their children?

As an aside, this is also a good watch - https://www.youtube.com/watch?v=4ZxzBcxB7Zc

Expand full comment

The big banks parent companies are domiciled in Australia, but the shareholders are very international- mostly the 'usual suspect' wealth-management funds. ANZ's third biggest shareholder is the Central Bank of Norway!

Expand full comment

Great video

Expand full comment
Oct 5, 2023Liked by Bernard Hickey

Excellent piece, but this issue has been there in plain sight for decades during which time the main political parties have sought to treat it as a virtue.

The depressing thing is that post the election even more fuel will likely be added to the bonfire

Expand full comment

WILL be added!!!

Expand full comment

Aaargh. I'd like to see windfall taxes on banks and supermarkets. Customers do all the work for the banks on-line, just as those who check out their purchase themselves do all the work for the supermarkets. No wonder we have a cost-of-living crisis when supermarkets and banks make obscene profits that promptly go offshore.

Expand full comment