Morning chorus: Slowly, slowly does it
Cabinet to finally consider mandating masks on Auckland public transport and planes; Govt decides against doubling sick leave before Christmas; Orr says higher house prices are a 'first class problem'
TLDR: Cabinet will meet early this afternoon to decide on whether to mandate masks on Auckland public transport and on flights. Yet again, the Government has taken a more politically conservative stance on this than the scientists.
It’s also taking a cautious approach on enacting its election promise of doubling sick leave. The Greens want it passed urgently before Christmas, but Minister Michael Wood is saying it will only be introduced.
Meanwhile, Adrian Orr is pushing back on the idea that the Reserve Bank has somehow gone rougue or that the housing boom it triggered is an accident. He said on Friday that higher house prices are a ‘first class problem to have.’ The heat on this will not go away and both the Reserve Bank and Government will have to work hard not to throw each other under the bus. And New Zealand joined RCEP over the weekend, which isn’t quite the coup it sounds because it doesn’t include India.
Questions for the PM?: I welecome your questions to put to the PM at the post cabinet news conference. Housing, sick leave and the Korean diplomat mess are my candidates. Yours?
In our political economy over the weekend
In the global political economy over the weekend
Business and markets news over the weekend
Hugh Marks, the Nine Entertainment CEO who engineered the takeover of Fairfax Media and the sale of Stuff Ltd to CEO Sinead Boucher for $1, is leaving under a cloud. (SMH)
Sign ‘o the times news
My weekend podcast listening
A few of my Weekend Reads
I finally got a chance to read about the big vaccine news last week. This Economist piece is a great backgrounder. It’s all about viral genomes and the spike protein. (The Economist-$$$)
How can you make money as a Benjamin Graham-Warren Buffett-style value investor when a market seems on perma-pump mode and the money printing just won’t and can’t stop? It’s hard. (The Economist-$$$)
The suspension of Ant Financial’s massive IPO last week and then the surprise release of tough new Chinese laws to clamp down on big tech monopoly power shows you how China works. (The Economist-$$$)
“For big companies, there’s no negotiation. The party approaches you and you say yes,” says Joe Zhang, a business consultant who has sat on the boards of Chinese private and state corporations.
Coming up…
Sat Nov 21 - National Party AGM due to vote on re-election of President Peter Goodfellow.
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 Portfolio Jonny for today’s kaka pic.
FYI from a reader: Hi. I'm near apoplectic on housing. There's no way the Reserve Bank can be blamed: they are bound by the mandate the Government sets. The Government is sovereign, and can do any damn thing it pleases. Or not, as appears to be the case. Things they ought to do: ram through a revised RMA that frees up land and gets rid of red tape; start rapidly building 100,000 state houses for lifetime rental tenure for all who want them; re-establish a State Advances Corporation to offer 40-year mortgages for would-be home-owners; ban banks from lending to property investors to buy existing houses, restricting investor lending to new builds only; and immediately introduce a land tax on all land except public recreational reserves and sovereign iwi land.
On sick leave, bypass the 10-day sick leave by extending ACC to cover ALL illness (paid for by increased levies) thus eliminating immediate cost for both employer and employee.