Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Bill English: Government Booms, Economy Busts

10 March 2006

Government Booms, Economy Busts

In a slowing economy, government spending will continue to boom. Wellington office blocks currently offer the best returns in commercial property, and the state wage bill is rising by $1 billion per year. So the Reserve Bank has to hold the line on interest rates, and they have, signalling it will be a while before rates come back.

Fortunately, the export sector can give a glimmer of hope with the exchange rate falling 10% in recent weeks, but the Reserve Bank is determined to knock back the rest of New Zealanders' appetite for debt.

Household expenditure has been rising faster than household income for several years and it can't keep going. Over the next 12 months, house prices should ease and business investment will slow. Farmers look for any excuse to pay more for land and the fall in the dollar will likely be enough to keep farm values robust.

Everyone's a Winner

The great thing about success in a small country is that everyone can be part of it. My mum is in the same Invercargill rest home as Sam Morgan's grandma.

Everyone's a Loser Often it's the small issues that tell the story. Timber processors in the south are fighting a battle with bureaucracy on behalf of everyone who will build a house or a shed in the next 10 years. Someone, somewhere has decided that all framing timber now has to be made by a machine rather than the traditional visual grading test, which could cost up to $40,000. It's all extra costs to the consumer on top of the new extravagantly stupid Building Act. However, the costs of the new stress test could force local sawmillers out of the framing timber market. Odd how the proposed regulation is supported by big operators like Carters.

So the local sawmill operators have tried to find out why the traditional visual grading is no longer acceptable. It turns out no one really knows. If houses were crumbling around us because of weak framing, that would be persuasive. A few calls around local government building inspectors reveals that it's never been a problem. So this new requirement is a solution looking for a problem. The Building Authority is digging in. When the requirement is irrational there is no sensible way to defend it. But there seems to be no way of stopping it.

Dawn Raids On Again

Wednesday morning in Te Anau saw the first and maybe only dawn raids ever in Southland - at Takaro Lodge. Guests, including the Vice-President of Disney Corporation, were disturbed by a large presence of police and immigration staff who rounded up 12 alleged overstayers.

The staff concerned had been refused work permits and are now overstayers. But why were they refused work permits? It's almost impossible to get staff for hospitality jobs in Queenstown, and all sorts of non-New Zealanders are getting work permits to fill the gap. Takaro is isolated and its requirements specialised, and they just can't get any suitable staff.

Takaro is setting out to establish itself as part of the "spa industry", where high net wealth individuals pay large amounts of money to spend time on health and wellness. We need this tourism business and more like it. So did these immigrants break all the rules, or is it a case of bureaucratic bumbling? I want some answers.

ENDS


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Twitter Wars, And The Muller Muddles

Whatever the failings of our own politicians, spare a kind thought for the majority of Americans who did not vote for Donald Trump. Sure, it was depressing this week to watch Todd Muller clinging for dear life to his talking points on Q&A, lest he be carried away in the slavering jaws of Jack Tame…. but this was mere incompetence, not malice. At the same time the President of the United States was (a) falsely accusing one of his media critics of murder, and (b) threatening to shut down Twitter for attaching a warning label to Trump’s attempt at poisoning the electoral process by falsely claiming that postal voting has led to extensive voter fraud... More>>


 

Green Party: Statement On The Death Of George Floyd

“Today and every day we stand in solidarity with George Floyd’s family, friends and community who feel pain and fear about his untimely death at the hands of Minneapolis police”, said Green Party Co-leader and Māori Development spokesperson Marama ... More>>

ALSO:


Government: Freshwater Package Backed By Comprehensive Economic Analysis

Decisions on the Action for Healthy Waterways package are supported by comprehensive environmental and economic impact analysis by leading New Zealand research institutes, universities, and private sector firms. More>>

ALSO:

National: "Todd Muller Announces Shape Of Next Government"

National Party Leader Todd Muller has announced the line-up of the next Government. “New Zealand is facing perhaps the toughest time that almost anyone alive can remember. “We are borrowing tens of billions of dollars to get us through this crisis. There ... More>>

ALSO:

Lockdown Rules: Government Must Explain Why We’re Still At Level 2

The Government needs to explain to New Zealanders why it won’t consider a move to Alert Level 1 for another week, Leader of the Opposition Todd Muller says.
“Kiwis have made enormous sacrifices to flatten the curve, but if their efforts still aren’t enough to move to Level 1 then the Government must explain why.... More>>

ALSO:


Gordon Campbell: On National’s Day Of Reckoning

Congratulations. You are one of the 55 members of the National caucus being called together tomorrow to choose who will lead you to either (a) catastrophic or (b) honourable defeat on September 19, thereby saving some (but not all) of the jobs currently on the line. Good luck. Your decision process starts NOW... More>>

ALSO:


Budget 2020: Jobs Budget To Get Economy Moving Again

Investments to both save and create jobs in Budget 2020 mean unemployment can be back to pre COVID-19 levels within two years and could see the economy growing again as early as next year. More>>

ALSO:

Covid-19 Response: Law Setting Up Legal Framework For Covid-19 Alert Level 2 Passes


The law establishing a legal framework for the response to Covid-19 has passed its final reading and will become law in time for the move to Alert Level 2 tonight.
This is a bespoke Act designed specifically to stop the spread of COVID-19... More>>

ALSO:


Trans-Tasman Bubble: PMs Jacinda And Morrison Announce Plans

Australia and New Zealand are committed to introducing a trans-Tasman COVID-safe travel zone as soon as it is safe to do so, Prime Minister Rt Hon Jacinda Ardern and Prime Minister the Hon Scott Morrison MP have announced... More>>

ALSO:

Government: Queen's Birthday Honours List 2020

The New Zealand Order of Merit The Queen has been pleased, on the occasion of the celebration of Her Majesty's Birthday, to make the following appointments to The New Zealand Order of Merit: DNZM To be Dames Companion of the said Order: Distinguished ... More>>

Government: Support For Arts And Music Sector Recovery

A jobseekers programme for the creative sector and four new funds have been set up by the Government to help our arts and music industry recover from the blow of COVID-19. Thousands of jobs will be supported through today’s $175 million package ... More>>

ALSO:

Government: New Zealand Joins Global Search For COVID-19 Vaccine

Foreign Affairs Minister Winston Peters, Research, Science and Innovation Minister Megan Woods, and Health Minister David Clark today announced a COVID-19 vaccine strategy, which will enable New Zealand scientists to contribute to global research efforts ... More>>

ALSO:

The Dig: Steady State Economics: We’ve Got Some (systems) Thinking To Do

In this time of impending economic and ecological crises, we urgently need to aim for a sustainable or ‘steady state’ economy. In order to get there, we will need to adopt a ‘systems-thinking’ outlook taking into account the interconnections of our complex world.

In short, we’ve got some systems thinking to do... More>>

ALSO:

Election 2020: Parties Get Into gear

The Green Party is pleased to reveal its candidate list for the upcoming election. With a mix of familiar faces and fresh new talent, this exceptional group of candidates are ready to lead the Greens back into Government. Using the most democratic list ... More>>

ALSO:

Insight Into Regenerative Agriculture In New Zealand

There is a fast growing movement in New Zealand that has been happening out in paddocks, fields, gardens and hill country across the nation. It is a movement that holds the promise to reshape our productive land use industries towards systems that work with the natural environment to regenerate the land. The movement is that of regenerative agriculture. More>>

ALSO:

Covid-19: Tracer App Released To Support Contact Tracing

The Ministry of Health has today formally released the NZ COVID Tracer app to support contact tracing in New Zealand. Kiwis who download the app will create a digital diary of the places they visit by scanning QR codes displayed at the entrances to ... More>>

ALSO:


Govt: Deep Concern At Hong Kong National Security Legislation
Foreign Affairs Minister Winston Peters today reiterated the deep concern of the New Zealand Government following confirmation by China’s National People’s Congress of national security legislation relating to Hong Kong.... More>>

ALSO:


 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels