Wood doubles working holiday-maker cap to 24,000 and extends visas of those already here; Median wage rules relaxed for aged care, meat works, construction, seafood and adventure tourism
Today’s Dawn Chorus was bracing start to the week! Thank you. And thanks very much for the Will O’Dowd Lunar link. Very beautiful and full of tenderness. (My favourite view of Turing is from Neal Stephenson’s novel Cryptonomicon; this one is more human and tender.)
The most important working holiday schemes are uncapped - UK, USA, Germany etc. Prior to Covid, over 60,000 young visitors came to NZ every year on working holiday visas. They worked predominantly in horticulture, agriculture, tourism and hospitality. The measures announced yesterday are good, but what is needed now is a major promotional campaign to get young workers here for summer - Australia is already doing this.
Thanks Chris. Bit surprising that we have not started a promotional campaign. Does that sound unusual to you? Who should I chase up to find out what has gone wrong. Certainly a question for Nash tomorrow. Cheers
A bit tricky for Nash who has got himself offside with the industry a couple of times for saying we don’t want backpackers coming here eating 2 minute noodles and freedom camping - the reality is that person is likely to be on a working holiday visa, so actually has a real value to NZ. Just saying we want young people to come here on a working holiday visa doesn’t mean anyone will come. Tourism Australia and several Aussie states are doing promotional campaigns already- if NZ was to do it, it would probably be a job for Tourism NZ.
Loved The Lunar Dispatch blog post on Turing and his friend. Also the test for aliveness. That chat bot seems rather self serving and not at all trustworthy! See the cool headed way it considered killing its interlocutor.
The article about productivity in the Sunday Times observes that “according to OECD figures, New Zealanders have to work 10.7 hours a day longer to produce the same amount as their world-leading Irish counterparts”: https://www.stuff.co.nz/business/300665457/its-no-laughing-matter-poor-productivity-affects-all-new-zealanders It seems intuitively prudent that the Gov’t/RBNZ strategy of limiting immigration and increasing minimum wages will surely put pressure on business and farmers to invest in assets to increase productivity.
It would be interesting for Bernard to lead discussion focusing attention on the alternative approaches to achieving higher productivity rather than on the gloom and doom relating to the shortages of low-cost labour. The opposition seems to believe NZ should continue to import cheap labour to keep wages down as a way of combating inflation. Clearly this is the reason why we have dropped down the OECD productivity ranks over the years. On the other hand the Govt’s strategy seems to be to push the wages up so as to encourage business owners invest in technology improvements. Perhaps they will also need to provide financial incentives to businesses who invest in technology that can demonstrate a significant increase in productivity.
Thanks John. The key problem is it makes much, much more sense for anyone with spare capital to leverage it up and generate tax-free and low-risk gains in residential property. Until that option is off the table, or at least being taxed, it will be very difficult to change this now very bedded in strand of NZ Inc's DNA.
then why not go after land bankers starting on those land owners with covenants to keep the competition out (e.g. Supermakert owners, Z energy, and the like). NZ established a pretty good formula back in the 1880s where large land owners were asked to value their land for rating purposes, with the local authority having the right to buy the land at that valuation if it was deemed the land was needed for strategic city development. https://www.jstor.org/stable/pdf/1819941.pdf
Likewise the loacl authoities should go after 40, 000 homeowners who don’t want to rent their empty “investment” homes should have an additional avoided rental tax applied computed on a rate based on the rent they could have received.
Hi Bernard, have the podcasts changed format? Not getting them pushed through to my podcast app. Also, what are your thoughts on the purchase of KiwiBank?
Thanks Scott. No change from my end. You should be able to listen to them directly from the email, or on here, or in the Substack App. Which app are you not seeing it on?
very saddening to see on Sunday TV program that some RSE workers from Pacific countries are being massively ripped off. Any chance of investigating this thoroughly with applicable government ministers Bernard?
The first thing the government needs to do is greatly increase the enforcement of the rules. If, say half, of all RS Employers were audited each year to see if they were following the rules. If not following the rules then they lose their accreditation for three years, and have to reimburse the RS employees for any transgressions (under-paid, too expensive accommodation, etc).
Nailed it Bernard, with the cost of living comments. There might be the odd young working holiday maker that doesn't think to look at rental costs before they buy their ticket, but the majority will look at whether or not it's feasible. Rentals are too expensive, especially for anyone considering a working holiday. It'll be all work and no holiday for these young people and they'll be bitter/feel used, sounds fun :-/ Perhaps NZ business & government is hoping to get young Europeans fleeing the winter energy shortage there?
Yep. There'll be plenty of post-cognitive dissonance for working holidaymakers, although plenty will just buy the van or sleep four to a room in Queenstown. It's amazing what you'll put up with when you're young...
Still reflecting on your Dawn Chorus, Bernard (as permitted by my diary). My simple-minded question concerns the trade off that recent NZ governments have made between making decisions that benefit citizens or various groups within society, such as the children of the poor, or low-waged workers, or unpaid workers doing important care work, and voters, predominantly middle-aged, middle-class property owners. How can we allow the latter group to benefit at the cost of our poorest and most disadvantaged citizens?
What is the purpose of a government- to stay in power or to assist citizens? (Sorry to sound as though I am fomenting the French revolution all over again, but the concept of citizen is important.) I believe it is the latter. Further, do we want a low-wage economy or a productive one? Once again, the latter.
Governments need to have the courage to lead. Opening the tap of low-wage temporary immigration deals only with the symptoms, not the cause. If neither Red nor Blue has courage to address our issues with low productivity and hides behind inflation, we won’t make progress on this problem. I don’t want us to be a housing market with a small economy attached in 10 years’ time.
Thanks Anne. I get that. But I doubt much changes until the political calculus changes. At the moment, National and Labour believe they can't win unless they keep the current system going. While over 800,000 young renters don't vote, it's relatively easy for that middle 10-15% of voters, most of whom benefit from the current system, to dominate in that political calculus.
I have two voting age teenagers. Not voting isn't an option. They are actually looking forward to voting first time in the coming local body elections. I am heartened to see a few young candidates (and by young I don't mean 40 year olds 😝).
At a certain point, you get what you vote for. And if you don't vote you get what those who did vote asked for. There's just so much an old(er) lefty like me can do to bring the required change. We can't do it all on our own. So young renters need to get their act together and vote according to their needs. 800k is a good electoral power!
Today’s Dawn Chorus was bracing start to the week! Thank you. And thanks very much for the Will O’Dowd Lunar link. Very beautiful and full of tenderness. (My favourite view of Turing is from Neal Stephenson’s novel Cryptonomicon; this one is more human and tender.)
Such a great novel. One of my favourites for sure :)
Thanks Anne. I'll look out for that novel.
The most important working holiday schemes are uncapped - UK, USA, Germany etc. Prior to Covid, over 60,000 young visitors came to NZ every year on working holiday visas. They worked predominantly in horticulture, agriculture, tourism and hospitality. The measures announced yesterday are good, but what is needed now is a major promotional campaign to get young workers here for summer - Australia is already doing this.
Thanks Chris. Bit surprising that we have not started a promotional campaign. Does that sound unusual to you? Who should I chase up to find out what has gone wrong. Certainly a question for Nash tomorrow. Cheers
A bit tricky for Nash who has got himself offside with the industry a couple of times for saying we don’t want backpackers coming here eating 2 minute noodles and freedom camping - the reality is that person is likely to be on a working holiday visa, so actually has a real value to NZ. Just saying we want young people to come here on a working holiday visa doesn’t mean anyone will come. Tourism Australia and several Aussie states are doing promotional campaigns already- if NZ was to do it, it would probably be a job for Tourism NZ.
“And so it has come to pass”, rather Biblical Bernard.
Patrick Medlicott
Hi Patrick
He's allowed to say that because I think the Bible has finally come out of copyright.
Ha! If only I was that powerful. Firstly I'd stop all these floods!
Loved The Lunar Dispatch blog post on Turing and his friend. Also the test for aliveness. That chat bot seems rather self serving and not at all trustworthy! See the cool headed way it considered killing its interlocutor.
The article about productivity in the Sunday Times observes that “according to OECD figures, New Zealanders have to work 10.7 hours a day longer to produce the same amount as their world-leading Irish counterparts”: https://www.stuff.co.nz/business/300665457/its-no-laughing-matter-poor-productivity-affects-all-new-zealanders It seems intuitively prudent that the Gov’t/RBNZ strategy of limiting immigration and increasing minimum wages will surely put pressure on business and farmers to invest in assets to increase productivity.
It would be interesting for Bernard to lead discussion focusing attention on the alternative approaches to achieving higher productivity rather than on the gloom and doom relating to the shortages of low-cost labour. The opposition seems to believe NZ should continue to import cheap labour to keep wages down as a way of combating inflation. Clearly this is the reason why we have dropped down the OECD productivity ranks over the years. On the other hand the Govt’s strategy seems to be to push the wages up so as to encourage business owners invest in technology improvements. Perhaps they will also need to provide financial incentives to businesses who invest in technology that can demonstrate a significant increase in productivity.
Thanks John. The key problem is it makes much, much more sense for anyone with spare capital to leverage it up and generate tax-free and low-risk gains in residential property. Until that option is off the table, or at least being taxed, it will be very difficult to change this now very bedded in strand of NZ Inc's DNA.
then why not go after land bankers starting on those land owners with covenants to keep the competition out (e.g. Supermakert owners, Z energy, and the like). NZ established a pretty good formula back in the 1880s where large land owners were asked to value their land for rating purposes, with the local authority having the right to buy the land at that valuation if it was deemed the land was needed for strategic city development. https://www.jstor.org/stable/pdf/1819941.pdf
Likewise the loacl authoities should go after 40, 000 homeowners who don’t want to rent their empty “investment” homes should have an additional avoided rental tax applied computed on a rate based on the rent they could have received.
Hi Bernard, have the podcasts changed format? Not getting them pushed through to my podcast app. Also, what are your thoughts on the purchase of KiwiBank?
Thanks Scott. No change from my end. You should be able to listen to them directly from the email, or on here, or in the Substack App. Which app are you not seeing it on?
Pocket Casts. I think it just takes a while to come through. Thanks for replying
very saddening to see on Sunday TV program that some RSE workers from Pacific countries are being massively ripped off. Any chance of investigating this thoroughly with applicable government ministers Bernard?
Hi Robert
The first thing the government needs to do is greatly increase the enforcement of the rules. If, say half, of all RS Employers were audited each year to see if they were following the rules. If not following the rules then they lose their accreditation for three years, and have to reimburse the RS employees for any transgressions (under-paid, too expensive accommodation, etc).
Yes. A severe problem with a lack of policing and enforcement of labour and migrant exploitation rules.
Yep. Questions ready for tomorrow's caucus run. Welcome any particular queries from readers.
Nailed it Bernard, with the cost of living comments. There might be the odd young working holiday maker that doesn't think to look at rental costs before they buy their ticket, but the majority will look at whether or not it's feasible. Rentals are too expensive, especially for anyone considering a working holiday. It'll be all work and no holiday for these young people and they'll be bitter/feel used, sounds fun :-/ Perhaps NZ business & government is hoping to get young Europeans fleeing the winter energy shortage there?
Yep. There'll be plenty of post-cognitive dissonance for working holidaymakers, although plenty will just buy the van or sleep four to a room in Queenstown. It's amazing what you'll put up with when you're young...
Looks like this is topical...or a particular campaign / agenda being pushed (I'm not cynical at all) https://www.theguardian.com/australia-news/2022/aug/22/migration-rebound-slowed-by-australians-leaving-the-country-since-borders-reopened
Still reflecting on your Dawn Chorus, Bernard (as permitted by my diary). My simple-minded question concerns the trade off that recent NZ governments have made between making decisions that benefit citizens or various groups within society, such as the children of the poor, or low-waged workers, or unpaid workers doing important care work, and voters, predominantly middle-aged, middle-class property owners. How can we allow the latter group to benefit at the cost of our poorest and most disadvantaged citizens?
What is the purpose of a government- to stay in power or to assist citizens? (Sorry to sound as though I am fomenting the French revolution all over again, but the concept of citizen is important.) I believe it is the latter. Further, do we want a low-wage economy or a productive one? Once again, the latter.
Governments need to have the courage to lead. Opening the tap of low-wage temporary immigration deals only with the symptoms, not the cause. If neither Red nor Blue has courage to address our issues with low productivity and hides behind inflation, we won’t make progress on this problem. I don’t want us to be a housing market with a small economy attached in 10 years’ time.
Thanks Anne. I get that. But I doubt much changes until the political calculus changes. At the moment, National and Labour believe they can't win unless they keep the current system going. While over 800,000 young renters don't vote, it's relatively easy for that middle 10-15% of voters, most of whom benefit from the current system, to dominate in that political calculus.
I have two voting age teenagers. Not voting isn't an option. They are actually looking forward to voting first time in the coming local body elections. I am heartened to see a few young candidates (and by young I don't mean 40 year olds 😝).
At a certain point, you get what you vote for. And if you don't vote you get what those who did vote asked for. There's just so much an old(er) lefty like me can do to bring the required change. We can't do it all on our own. So young renters need to get their act together and vote according to their needs. 800k is a good electoral power!
Don’t worry, I am far right so our votes may give us a zero sum game.