Roosting chorus: The Harvey Norman effect

Retail sales strong in Sept qtr; Hardware sales up 16%; electrical goods sales up 25%; New projects fast-tracked using Covid-19 Act; Swarbrick & Genter get Revenue & Finance roles

TLDR: PM Jacinda Ardern again ruled out a Capital Gains Tax today and repeated the Government wanted to help first home buyers get deposits. She also hoped banks would funnel funds into the productive sectors.

I asked Ardern if the Government planned to increase its plan to build 8,000 extra houses over the next four years in response to the latest crisis. She said there were constraints with skilled workers that meant the industry was going as fast as it could (ie no extra supply response from the Government) The only response, with extra first home buyer deposits, would increase demand.

Ardern and Environment Minister David Parker also announced Cabinet had used Covid-19 fast-track rules to approve three private projects — a Dominion Rd commercial and residential development, an Ohinewai foam factory and a housing development near Nelson — which would employ 2,000 jobs during construction, 200 jobs after completion and build 160 homes. Civil contractors are still waiting on green lights for major roading projects in the Manawatu and Taranaki. Parker said they may be fast-tracked at a later date.

‘Hey Joe’: Elsewhere, Ardern spoke on the phone to US President-elect Joe Biden this afternoon. He asked for advice on dealing with Covid-19. Meanwhile, retail sales figures showed spending in hardware, furniture and electronics are going gangbusters.

In a slight reshuffle, the Greens shifted finance from James Shaw to Chloe Swarbrick (Revenue) and Julie-Anne Genter (Finance). In Australia, New South Wales mandated the use of QR codes in shops and bars, and opened up its border with Victoria (ABC Australia).

In our political economy today

Bernard Hickey @bernardchickey

Amazing retail sale figures for Sept qtr given Covid-19. The 'Harvey Norman' effect alive & well. All the paper ads worked! 'Hardware, building, and garden supplies, up 16% or $352m from Sept qtr 2019, and electrical goods spending up 25% or $233 million. stats.govt.nz/news/retail-sa…

Bernard Hickey @bernardchickey

In which Jacinda Ardern rules out a CGT again, and asks banks to help by not pumping more money into existing housing 'and trying to encourage people to invest in productive parts of the economy.'

newshub.co.nzBuilding more will stop runaway house prices, not ‘crazy and wacky ideas’ - Sir John Key“You can come up with all sorts of crazy and wacky ideas but, in the end, houses don’t largely sit around dormant.”

Bernard Hickey @bernardchickey

Ardern says she's better than Key on housing: "I don't want to see this ongoing escalation that is making it increasingly difficult to get 1st home buyers into houses. That's something we're concerned about & that's a different view to the previous Govt."

newshub.co.nzPM Jacinda Ardern gets prickly over Marama Davidson’s wealth tax comments, says she is ‘concerned’ over house pricesArdern says the National Party was unconcerned over skyrocketing prices.

Bernard Hickey @bernardchickey

For those who think this is unaffordable: "The business case found the capital cost range of its recommended program would be between $6b-$18b between 2024-2047." The @ReserveBankofNZ has printed $39.5b since March 25 this year.

stuff.co.nzAuckland light rail: Link from Albany to airport detailed in new reportA light rail line underneath the Waitematā Harbour is a favoured option for officials mulling Auckland’s public transport future, a study shows.

Bernard Hickey @bernardchickey

A bunch of councils in a mess. 'To the shock of everyone in attendance, Shadbolt went about reading a lengthy statement where he rubbished much of the report findings saying he felt he had been unfairly singled out as part of the review.'

stuff.co.nzReview says Invercargill Mayor Sir Tim Shadbolt struggling to fulfill jobAn independent review has pointed the finger at Sir Tim Shadbolt as a key reason behind the problems at the Invercargill City Council, but he has now rubbished the report.

Bernard Hickey @bernardchickey

In which James Shaw gives up finance, and it is split between Chloe Swarbrick (Revenue) and Julie Anne Genter (Finance)

newshub.co.nzGreen Party reshuffle: Chloe Swarbrick, Julie Anne Genter take over finance and revenue as portfolios get dished out to new MPsGreen Party co-leaders James Shaw and Marama Davidson will focus on their ministerial positions.

Signs o’ the times news

Bernard Hickey @bernardchickey

Yet another example of where a Council that doesn't want to pay for transport, water, parks, footpaths and other infrastructure blocks the building of new homes

stuff.co.nzPlans for nearly 1000 new Rolleston homes opposed over transport and land use worriesBetter public transport links are needed before more thousands of new homes are built in Rolleston, the Christchurch City Council says.

Bernard Hickey @bernardchickey

30 yrs of under-investment in water & housing infrastructure by Councils & Government is coming home to roost. 20 yrs of very fast population growth is compounding the pain. And yet no solution from either, at a time when they could borrow for <1.0%

stuff.co.nzRegional councils up creek without paddle after years of ‘dodging investments’ in sewage treatmentThe region’s sewage treatment assets are on the brink, in some places literally held up with scaffolding, but “critical” costs have been labelled “not sustainable”.

Bernard Hickey @bernardchickey

Here again we have the politics of 'someone else should pay,' preferably someone else in the future. Just not ratepayers. And not now. This is such a pity because water metres work a treat to reduce waste and reduce the need to build extra capacity.

Stuff @NZStuff

Wellington mayors split over proposal for water meters in homes across the region https://t.co/pvkJjwbKke

Other points of view

Q+A @NZQandA

Today's Q+A in 60 seconds - the top takes on housing with @MutchJessica

In the global political economy today

BNO Newsroom @BNODesk

"We are open for business": Joyful scenes at the reopening of the Victoria-New South Wales border, which was closed in July. Victoria's last COVID case was on October 29

Eater LA @eaterla

As COVID-19 Surges, LA County shuts down all outdoor restaurant dining la.eater.com/2020/11/22/215…

Have a great evening

Ngā Mihi

Bernard

PS. Thanks to the Auckland Zoo for today’s Kākā pic.

PPS: Some fun things

Ivo Daalder @IvoHDaalder

Trump’s legal team on their way to Supreme Court

The Daily Show @TheDailyShow

Duolingo has taught millions to speak Spanish and Italian. Now it’s teaching one man to speak Loser.

Jeff Bell @JeffBellNZ

NZ has one of the most unaffordable housing markets in the world, and things are getting worse. Today’s @NZStuff #cartoon #nzpol #housing

Body @GuyKeverneBody

#nzpol