Some reflections on the week, a few curious bits and bobs to chew on and a couple of fun things, including a cartoon and video. Especially for paying subscribers. Thanks for your support.
Your proposal to replace accommodation supplements, working for families payments and other MSD payments is definitely worthwhile Bernard, but I’m not convinced that a Universal Basic Income would make a good replacement.
This would give a National/Act government an excuse to further reduce public services. Let’s not forget that education vouchers were dreamt up by Milton Friedman and promoted by the UK Institute of Economic Affairs in the 1950s.
I’d be far happier to see the government provide Universal Basic Services rather than a Universal Basic Income,
Describing the state pension as ‘UBI for those over 65’, though, was smart but didn’t convince me that it needed to be extended as you suggest.
Instead of a universal basic income how about a combination of the government job guarantee (at a living wage) plus a guaranteed minimum income (as the Greens propose)?
Bill Mitchell, an advocate for a job guarantee summarises the proposal as follows:
I advocate:
1. A guaranteed job for anyone who wants to work and cannot currently find a job.
2. They would receive a socially-inclusive minimum wage.
3. They would receive holiday and sick pay entitlements, superannuation contributions from the employer, and other special leave entitlements that are common in the permanent workforce.
4. They would be entitled to undergo training (on-the-job or in outside environments, including going back to school, college or university).
5. They would receive social wage benefits – what some might call guaranteed levels of services – such as health care insurance, free child care, transport allowances, access to legal aid supplements, etc.
6. Family Income Supplements: The Job Guarantee is not based on family-units. The Job Guarantee wage (available to anyone over working age) would be supplemented with benefits reflecting family structure. In contrast to workfare there would no pressure on single parents to seek employment.
7. They could choose whatever hours they desired to work – effectively eliminating time-based underemployment.
8. IMPORTANTLY, a worker would be given a grace period on accessing the Job Guarantee. Their wage would start immediately but they could have 3-4 weeks before having to start work where they could sort out their affairs, ‘take a breather’, engage in job search if they wanted, etc. During this period they would be paid the standard wage rate.
9. The job would be permanent if they chose.
10. The job design can be flexible to help workers with special difficulties enjoy a productive working life (for example, the provision of clinical support within the workplace to help people burdened with episodic illnesses)
I'd vote you open up everything until the election. I know you have to be careful not to kill the subscribers' goose, but you won't lose this one by doing that. Afterwards perhaps reconsider.
The sheer lack of generosity which the Emergency Housing Contribution represents is profoundly depressing. I expect it from National and ACT. It's outrageous that it comes from Labour. The amounts are peanuts for the country but hugely oppressive for those subject to it who are living in the most fraught of circumstances and could do with a little kindness.
And, yes please, UBI. It's been explained to me many times that we cannot afford it which is just nonsense as we have it anyway. We don't let people starve but we mediate it through a punitive regime which seems to assume that we must have an expensive bureaucracy snapping at recipients' heels. Those arguing so would generally themselves work anyway. Does Luxon, for example, do it for the money? How to introduce it in stages is a challenge but solvable. We're a long way away from that. An awful election.
Noooooo to residential land tax. I already pay high council rates based on a valuation at peak of rises, so pre values markedly dropping, and also as projected then for next 3 years.. For retirees with one property 0.5% could be last straw as an annual payment, especially if based on that valuation system. Surely those with 2 or more props, and clearly more fat in the ststem, should be asked to pay that..
For those who couldn’t afford the land tax, it would be possible to defer it until the property was sold or the owner died; just as some councils allow for rates.
Yes but you don’t want people losing family homes because of this. Many māori lost land because they couldn’t/didn’t pay rates, that needs to not happen.
Hi Bernard. Interested to clarify your proposal for "state-funded rollouts of roof-top panels and batteries for any household, farm or business who wants them, with surplus electricity sold back into the grid by the panels’ owners (either Government or individuals) at current wholesale prices".
Surplus electricity is already sold back at current wholesale prices, either at an agreed fixed price with retailer or at floating 'spot' price as and when the surplus is produced (although some retailers effectively subsidise those with solar by paying higher than wholesale rates for surplus). I'm not quite sure how what you're suggesting here is different from the status quo (unless it's the state-funded rollout bit).
I think that individual household Roof mounted PVs as a solution to increasing the solar contribution is not the optimum way for the govt to go or subsidise. Efficiencies of scale are important for a start and another real issue is power quality (those pesky harmonics) and fragmentation of suppliers and maintenance issues. Not that I am opposed to people installing them and the podcast with Solar Zero CEO Matt Ward was very exciting particularly the trial with Transpower for grid connection and demand flow.
However first stop would be larger meighbour hood generstion, using school roofs looking at large warehouse roofs.
I still think one of the best spots for large scale solar generstion would be at Tekapo, one of the areas in nz with highest sunshine hours and the added advantage very close to the National grid and existing HV substations.
There is also the issues to be managed within the power system if you have too much solar being generated compared to what the network was designed for - power flow and protection are important if you want the system to keep running.
When the power is offered also needs to be managed. Peak demand doesn't often occur at the time as solar generates so this will need to be coordinated with the market.
I have had solar panels on my roof for nearly two years now. What do you mean when you say " sold back into the grid at current wholesale prices?".
I left Ecotricity when they wouldn't pay me anymore than 8c/kwh. I moved to Trustpower who will pay me 17c/kwh for two years (then who knows what?). I pay 31c/kwh for the imported electricity. What is a typical wholesale rate?
Hi Rick. Wholesale prices are what generators and retailers are trading electricity at between each other. There is a 'spot' market where these prices change every 30 minutes or retailers and generators can contract at a fixed price for a certain period of time and/or volume. So, what you get paid for buy back from your retailer is a function of their wholesale exposure, plus any 'incentives' they may want to add at the retail level (ie, this is not regulated as you might see in some other jurisdictions). So, to answer your question, a typical wholesale rate can vary depending on who you ask and over what time period. A retailer buying a fixed wholesale price 'hedge' today is likely paying somewhere between 15 and 16 cents. They then need to retail that, which includes network charges, metering etc etc.
Thanks for that explanation. I heard something like it before, but wasn't sure what a typical wholesale spot price looked like. It sounds like Trustpower are paying me approximately the wholesale price.
To continue on this theme what we need is some analysis on bang for buck of solar ‘behind the meter’ vs at a local distraction level vs grid scale. Efficiency of scale vs transmission losses, and in all cases how to manage the grub protection problem referenced by others
I rode an Auckland Transport electric bus into the CBD yesterday and returned back on a diesel bus. From a passenger viewport the electric bus gives a better ride - quieter, no constant low level vibration, smoother starts & stops with fewer jolts.
Mary .. If you had a Tax switch ( progressive tax ) and a Land Tax ,you may find you are the same or even slightly better off . It needs to be hand in hand ..so those land banking , multiple residential owners pay more ,but only benefit from the progressive income tax if they are at certain levels of income.
The podcast "How they made us doubt everything" is an excellent listen - how some of the world's most powerful interests made us doubt the connection between smoking and cancer, and then how the same tactics were used to make us doubt climate change.
Bernard a very good article about housing and low income traps. Jacinda Arden had the right ideas regarding housing and child poverty, in all honesty most MPs would like to see it reduced?, I don’t think it’s possible to completely get rid of the problem most would agree but it could be greatly reduced! The Labour policy should have been strategised over the next 20- 30 years. The problems have worsened over a similar period I never saw them being fixed over a couple of terms in office? We need political leaders with vision for our nation, get the parties together to put some core long term policy in place that the majority can aspire to!
‘We need political leaders with vision for our nation, get the parties together to put some core long term policy in place that the majority can aspire to!’ Yes please. Everything seems to be so shorttermism these days.
No. 3: We had comments from the public at our market today (this time in West Auckland) to the effect that if the our Teal Card (similar to the Kaka Project plan - almost a UBI for under 30's with responsibilities attached) plus the present superannuation (a real UBI for the over 65 year olds) was implemented, how is that fair to the 31 to 64 year olds? Good point.
Obviously those who can't earn/pay taxes would be compensated, that is New Zealand's normal welfare bracket. But it would be pretty tough for the middle group until housing (at least) is remedied and perhaps easing their housing needs would need to be factored in to any budget that funds this policy.
The Kaka Lens taxation suggestions seem to be a very practical balance between carrots and sticks to to create a much fairer tax system. Except perhaps the $35k tax free threshold which seems somewhat heroic?
Big challenge is to move beyond the popular myth that NZ is overtaxed and that OECD graph of member states public debt to GDP, in yesterdays Kaka , seemed to offer death to that lie.
Why can’t Hipkins recant from his pathetic GST free fresh food and come out swinging with a Kaka like transformational offering to move our tax take in line with high functioning European economies to which we aspire ?
Why not go down with principles intact and run the risk of winning?
Agree with your UBI income suggestions it ensures all folk have income. Eliminates huge hours of MSD interviews, freeing up staff to ensure less able folk are receiving fair income.
Your proposal to replace accommodation supplements, working for families payments and other MSD payments is definitely worthwhile Bernard, but I’m not convinced that a Universal Basic Income would make a good replacement.
This would give a National/Act government an excuse to further reduce public services. Let’s not forget that education vouchers were dreamt up by Milton Friedman and promoted by the UK Institute of Economic Affairs in the 1950s.
I’d be far happier to see the government provide Universal Basic Services rather than a Universal Basic Income,
Describing the state pension as ‘UBI for those over 65’, though, was smart but didn’t convince me that it needed to be extended as you suggest.
What's to stop a right leaning Govt just winding down these Universal Basic Services?
Instead of a universal basic income how about a combination of the government job guarantee (at a living wage) plus a guaranteed minimum income (as the Greens propose)?
Bill Mitchell, an advocate for a job guarantee summarises the proposal as follows:
I advocate:
1. A guaranteed job for anyone who wants to work and cannot currently find a job.
2. They would receive a socially-inclusive minimum wage.
3. They would receive holiday and sick pay entitlements, superannuation contributions from the employer, and other special leave entitlements that are common in the permanent workforce.
4. They would be entitled to undergo training (on-the-job or in outside environments, including going back to school, college or university).
5. They would receive social wage benefits – what some might call guaranteed levels of services – such as health care insurance, free child care, transport allowances, access to legal aid supplements, etc.
6. Family Income Supplements: The Job Guarantee is not based on family-units. The Job Guarantee wage (available to anyone over working age) would be supplemented with benefits reflecting family structure. In contrast to workfare there would no pressure on single parents to seek employment.
7. They could choose whatever hours they desired to work – effectively eliminating time-based underemployment.
8. IMPORTANTLY, a worker would be given a grace period on accessing the Job Guarantee. Their wage would start immediately but they could have 3-4 weeks before having to start work where they could sort out their affairs, ‘take a breather’, engage in job search if they wanted, etc. During this period they would be paid the standard wage rate.
9. The job would be permanent if they chose.
10. The job design can be flexible to help workers with special difficulties enjoy a productive working life (for example, the provision of clinical support within the workplace to help people burdened with episodic illnesses)
I'd vote you open up everything until the election. I know you have to be careful not to kill the subscribers' goose, but you won't lose this one by doing that. Afterwards perhaps reconsider.
The sheer lack of generosity which the Emergency Housing Contribution represents is profoundly depressing. I expect it from National and ACT. It's outrageous that it comes from Labour. The amounts are peanuts for the country but hugely oppressive for those subject to it who are living in the most fraught of circumstances and could do with a little kindness.
And, yes please, UBI. It's been explained to me many times that we cannot afford it which is just nonsense as we have it anyway. We don't let people starve but we mediate it through a punitive regime which seems to assume that we must have an expensive bureaucracy snapping at recipients' heels. Those arguing so would generally themselves work anyway. Does Luxon, for example, do it for the money? How to introduce it in stages is a challenge but solvable. We're a long way away from that. An awful election.
Wiping MSD debt and stopping supplements ... UBI instead .. BRILLIANT 👍👏👏👏
Yes, definitely wipe all MSD debt and any type of benefit, UBI, superannuation must be indexed to inflation and wages.
Noooooo to residential land tax. I already pay high council rates based on a valuation at peak of rises, so pre values markedly dropping, and also as projected then for next 3 years.. For retirees with one property 0.5% could be last straw as an annual payment, especially if based on that valuation system. Surely those with 2 or more props, and clearly more fat in the ststem, should be asked to pay that..
For those who couldn’t afford the land tax, it would be possible to defer it until the property was sold or the owner died; just as some councils allow for rates.
Yes but you don’t want people losing family homes because of this. Many māori lost land because they couldn’t/didn’t pay rates, that needs to not happen.
no land tax on Maori land
Hi Bernard. Interested to clarify your proposal for "state-funded rollouts of roof-top panels and batteries for any household, farm or business who wants them, with surplus electricity sold back into the grid by the panels’ owners (either Government or individuals) at current wholesale prices".
Surplus electricity is already sold back at current wholesale prices, either at an agreed fixed price with retailer or at floating 'spot' price as and when the surplus is produced (although some retailers effectively subsidise those with solar by paying higher than wholesale rates for surplus). I'm not quite sure how what you're suggesting here is different from the status quo (unless it's the state-funded rollout bit).
I think that individual household Roof mounted PVs as a solution to increasing the solar contribution is not the optimum way for the govt to go or subsidise. Efficiencies of scale are important for a start and another real issue is power quality (those pesky harmonics) and fragmentation of suppliers and maintenance issues. Not that I am opposed to people installing them and the podcast with Solar Zero CEO Matt Ward was very exciting particularly the trial with Transpower for grid connection and demand flow.
However first stop would be larger meighbour hood generstion, using school roofs looking at large warehouse roofs.
I still think one of the best spots for large scale solar generstion would be at Tekapo, one of the areas in nz with highest sunshine hours and the added advantage very close to the National grid and existing HV substations.
There is also the issues to be managed within the power system if you have too much solar being generated compared to what the network was designed for - power flow and protection are important if you want the system to keep running.
When the power is offered also needs to be managed. Peak demand doesn't often occur at the time as solar generates so this will need to be coordinated with the market.
I have had solar panels on my roof for nearly two years now. What do you mean when you say " sold back into the grid at current wholesale prices?".
I left Ecotricity when they wouldn't pay me anymore than 8c/kwh. I moved to Trustpower who will pay me 17c/kwh for two years (then who knows what?). I pay 31c/kwh for the imported electricity. What is a typical wholesale rate?
Hi Rick. Wholesale prices are what generators and retailers are trading electricity at between each other. There is a 'spot' market where these prices change every 30 minutes or retailers and generators can contract at a fixed price for a certain period of time and/or volume. So, what you get paid for buy back from your retailer is a function of their wholesale exposure, plus any 'incentives' they may want to add at the retail level (ie, this is not regulated as you might see in some other jurisdictions). So, to answer your question, a typical wholesale rate can vary depending on who you ask and over what time period. A retailer buying a fixed wholesale price 'hedge' today is likely paying somewhere between 15 and 16 cents. They then need to retail that, which includes network charges, metering etc etc.
Thanks for that explanation. I heard something like it before, but wasn't sure what a typical wholesale spot price looked like. It sounds like Trustpower are paying me approximately the wholesale price.
To continue on this theme what we need is some analysis on bang for buck of solar ‘behind the meter’ vs at a local distraction level vs grid scale. Efficiency of scale vs transmission losses, and in all cases how to manage the grub protection problem referenced by others
I rode an Auckland Transport electric bus into the CBD yesterday and returned back on a diesel bus. From a passenger viewport the electric bus gives a better ride - quieter, no constant low level vibration, smoother starts & stops with fewer jolts.
Just like an EV
Just like a trolley bus.
Mary .. If you had a Tax switch ( progressive tax ) and a Land Tax ,you may find you are the same or even slightly better off . It needs to be hand in hand ..so those land banking , multiple residential owners pay more ,but only benefit from the progressive income tax if they are at certain levels of income.
A much fairer system in my opinion.
Yes ..vote from me to open up The Kaka until the electioneering stops ..
I agree with Eleanor and Glen. Open up everything until the election.
Yes, open up to everybody up to the election.
The podcast "How they made us doubt everything" is an excellent listen - how some of the world's most powerful interests made us doubt the connection between smoking and cancer, and then how the same tactics were used to make us doubt climate change.
Do you have a link to this podcast, I'm keen to have a listen :)
I'm currently reading Ultra Processed People by UK based Dr and researcher Chris van Tulleken. Looks like there's also a concerted effort to sow doubt about the harm of ultra processed food from the big global food companies. (This podcast episode explains the research in the book https://podcasts.apple.com/us/podcast/ultra-processed-what-fake-food-is-doing-to-our-health/id1482067226?i=1000624744728)
Fundamentally, profit is typically a perverse incentive for planetary and human health outcomes.
https://spotify.link/yt1cLxHG9Cb
Hope this works for you.
Thank you!
You might also be interested in this BBC series https://m.imdb.com/title/tt2337202/?ref_=ext_shr_lnk
Bernard a very good article about housing and low income traps. Jacinda Arden had the right ideas regarding housing and child poverty, in all honesty most MPs would like to see it reduced?, I don’t think it’s possible to completely get rid of the problem most would agree but it could be greatly reduced! The Labour policy should have been strategised over the next 20- 30 years. The problems have worsened over a similar period I never saw them being fixed over a couple of terms in office? We need political leaders with vision for our nation, get the parties together to put some core long term policy in place that the majority can aspire to!
‘We need political leaders with vision for our nation, get the parties together to put some core long term policy in place that the majority can aspire to!’ Yes please. Everything seems to be so shorttermism these days.
Also happy for you to open up everything between now and the election Bernard.
And I echo the call for universal basic services over UBI, or perhaps they could go hand in hand.
Your proposed UBI for the under 30s is much more generous that NZ Super.
NZ the couples rate is 66% of the average ordinary time after tax wage - a single recipient gets 60% of that..
As I read your view its 66% per individual.
No. 3: We had comments from the public at our market today (this time in West Auckland) to the effect that if the our Teal Card (similar to the Kaka Project plan - almost a UBI for under 30's with responsibilities attached) plus the present superannuation (a real UBI for the over 65 year olds) was implemented, how is that fair to the 31 to 64 year olds? Good point.
Obviously those who can't earn/pay taxes would be compensated, that is New Zealand's normal welfare bracket. But it would be pretty tough for the middle group until housing (at least) is remedied and perhaps easing their housing needs would need to be factored in to any budget that funds this policy.
Tax switch and Land tax on all residential zoned land 👍that's fair .. raises good sums for infrastructure and Teal / Gold card !! 😁
The Kaka Lens taxation suggestions seem to be a very practical balance between carrots and sticks to to create a much fairer tax system. Except perhaps the $35k tax free threshold which seems somewhat heroic?
Big challenge is to move beyond the popular myth that NZ is overtaxed and that OECD graph of member states public debt to GDP, in yesterdays Kaka , seemed to offer death to that lie.
Why can’t Hipkins recant from his pathetic GST free fresh food and come out swinging with a Kaka like transformational offering to move our tax take in line with high functioning European economies to which we aspire ?
Why not go down with principles intact and run the risk of winning?
Agree with your UBI income suggestions it ensures all folk have income. Eliminates huge hours of MSD interviews, freeing up staff to ensure less able folk are receiving fair income.
Yes please open to all.