Hockey on NZ

August 21st, 2014 at 10:00 am by David Farrar

The Australian reports:

frequently admits he’s a little bit jealous of our cousins across the ditch, in an economic sense at least.

THE treasurer’s green eye probably went an even deeper shade of emerald after New Zealand’s latest employment figures showed their jobless rate tumbled to a five-year low of 5.6 per cent in the June quarter from a revised 5.9 per cent previously.

The best we can hope for is Australia’s jobless rate not reaching 6.25 per cent this financial year, as predicted in Mr Hockey’s May budget.

And what does Hockey say:

He said New Zealand has stolen the advantage from Australia during the past few years by combining domestic structural reforms with newly negotiated trade opportunities in Asia.

“As a result, they have falling unemployment, rising living standards and a budget that is coming into surplus,” Mr Hockey said.

Faced with a hostile Senate over his first budget, Mr Hockey also said he was “quite jealous” that NZ Prime Minister John Key has to deal with only one parliamentary chamber.

Even so, Mr Key and Finance Minister Bill English are showing the world how economic reform should be done.

And it has not been achieved through “luck or complacency”.

“There is no she’ll-be-right attitude,” Mr Hockey said.

Except those parties who want to spend the surpus before we even achieve it, and send us back into deficit.

Tags: ,

17 Responses to “Hockey on NZ”

  1. redqueen (552 comments) says:

    We just need to keep showing that first advert. It really does ‘lay it out’ very simply (albeit, with a touch of humour). Good to see we’re actually being thought of positively…at least, in Aussie…

    Vote: Thumb up 8 Thumb down 0 You need to be logged in to vote
  2. mikenmild (11,246 comments) says:

    ‘Mr Key and Finance Minister Bill English are showing the world how economic reform should be done’
    Tell us about the government’s economic reforms; I can’t recall too much happening.

    Vote: Thumb up 0 Thumb down 13 You need to be logged in to vote
  3. redqueen (552 comments) says:

    @mikenmild

    Umm…at a micro-level you’ve got the reform of the Securities Act (as replaced by the Financial Markets Conduct Act), the introduction of AML and the introduction and reforming of the Insurance (Prudential Supervision) Act, the introduction and reform of the Financial Advisers Act, the replacement of the Financial Reporting Act 1993 with the 2013 Act, the Non-Bank Deposit Takers Act, and associated regulations. That’s just at the parliamentary level and need I go on? (I note this is a mixture of expanding, changing, and reducing regulation of the economy).

    Vote: Thumb up 8 Thumb down 0 You need to be logged in to vote
  4. labrator (1,892 comments) says:

    Tell us about the government’s economic reforms; I can’t recall too much happening.

    Why would you? It’s hard to tell what’s going on when you’ve got your eyes shut and fingers in your ears whilst singing “lalalalala I can’t hear you”. I’d say redqueen just gave you a schooling but for that to be true you’d have to have learnt something.

    Vote: Thumb up 7 Thumb down 0 You need to be logged in to vote
  5. Lucia Maria (2,269 comments) says:

    Yep, National have done well in terms of economic management (putting aside some social issues I vehemently disagree with).

    They have not introduced compulsory super, which are having some unintended consequences in Aussie such as people borrowing against their super in advance and then having to pay it back when they retire.

    I heard on the radio the other day that National borrowing money was better than what Labour would have done, which would have been to effectively print money. No wonder things are improving economically, even though the dreaded interest rate rise is on the horizon.

    Vote: Thumb up 3 Thumb down 0 You need to be logged in to vote
  6. kowtow (8,135 comments) says:

    We’re also very lucky tht the lucky country allows so many of us to go there and work in the primary industry sector making good money.

    Too bad so many of our pollies, media etc are against Aotearoa taking advantage of its own massive natural resources.

    Vote: Thumb up 6 Thumb down 0 You need to be logged in to vote
  7. marcw (242 comments) says:

    I think that NZ is at least one election cycle behind Tasmania. If we don’t learn from the destruction caused in the Tasmanian economy and way of life as the result of an elected Green Government, we will have no excuse for what will happen to NZ’s future. It will be something that, from our current high place in the world’s stories of success, we will probably never recover. And sadly, it won’t be the “rich pricks” that will suffer most.

    I will say it now – a Labour/Green/NZ First/IMP coalition Government for NZ will see

    1. Petrol at $3.50/litre or more within 12 months
    2. Mortgage interest rates at 10% or more within 18 months
    3. Huge rates of mortgage defaults due to loss of equity in homes, mainly by middle income earners
    4. Annual COL increase around 6%
    5. NZ$/US$ at about $0.60 in 12 months.

    Keep a record, but it won’t make me happy when I am proved correct.

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  8. cha (3,920 comments) says:

    Yes, we should be proud of the hole we’re in, it’s deeper…
    /

    http://www.tradingeconomics.com/new-zealand/government-debt-to-gdp

    http://www.tradingeconomics.com/australia/government-debt-to-gdp

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  9. lastmanstanding (1,267 comments) says:

    marcw I agree with you but think you are being conservative with the destruction a Left government would cause. They would put NZ back to the bad days of the 1980s. The irony for me is that those who would suffer most would be the very people they claim to represent. Those of us who are financially independent can take steps to ride out a Left wing storm attack against our living standards.
    For example high interest rates would increase our incomes from TDs perhaps not in absolute real terms given that inflation would increase.
    We can move our wealth offshore at the first sniff of a Left government getting their hands of the levers of power and Im sure Im not the only one with plans in place to do just that.

    And ultimately we can move ourselves offshore and with it our taxes and other contributions to the NZ economy like employing others.

    Alas the Left don’t get it don’t care only want to fiscally enslave as many citizens as they can to be beholding to them for their daily loaf of bread.

    Because that is the bottom line of the Left. Nothing more nothing less.

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote
  10. hj (6,798 comments) says:

    What part does the Chch rebuild and immigration play?
    IS GDP per capita rising?
    Are we paying down debt?

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote
  11. hj (6,798 comments) says:

    Immigration and the economy

    Immigration plays a vital role in securing New Zealand’s economic prosperity
    http://www.immigration.govt.nz/migrant/general/generalinformation/media/economy.htm

    Savings Working Group
    January 2011
    “The big adverse gap in productivity between New Zealand and other countries opened up from the 1970s to the early 1990s. The policy choice that increased immigration – given the number of employers increasingly unable to pay First-World wages to the existing population and all the capital requirements that increasing populations involve – looks likely to have worked almost directly against the adjustment New Zealand needed to make and it might have been better off with a lower rate of net immigration. This adjustment would have involved a lower real interest rate (and cost of capital) and a lower real exchange rate, meaning a more favourable environment for raising the low level of productive capital per worker and labour productivity. The low level of capital per worker is a striking symptom of New Zealand’s economic challenge.

    http://www.treasury.govt.nz/publications/reviews-consultation/savingsworkinggroup/pdfs/swg-report-jan11.pdf

    While immigration played a key role in house inflation in the three years after 2001 (Reserve
    Bank 2007), it is unknown to what extent on-going immigration continued to drive price rises.
    The housing boom has meant good profits for many New Zealand companies supplying
    materials and building services, but it implies investors would rather invest in their country’s
    homes rather than its businesses (Bollard 2005). The high returns for property has attracted
    finance and reduced the capital available for productive investment (Moody, 2006). The
    consequence is investment is going in to industries with limited capacity to increase per capita
    incomes. For example, real estate and building are domestically bound and do not have the
    market potential of export industries. They also have less opportunity to increase productivity
    through new processes and products. The irony is, as these sectors grow, they have incurred
    skills shortages which in turn has increased demand for skilled immigrants. The Department
    of Statistics ‘Long Term Skill Shortage List’ of 28/3/2006 includes carpenter/joiner, plumber,
    electricians, fitter and turners, fitter welders; all indicative of a nation building its
    construction/property sector.
    There is a danger that a sector of the economy is being augmented that is totally reliant on a
    small domestic economy. Not only do these industries have limited potential for per-capita
    growth but ‘deriving growth via factor inputs such as labour places pressure on infrastructure
    such as transport and land supply, and ultimately have a further negative impact on growth
    (ARC 2005). Finally, as the sector gets larger, it gains in lobbying/political strength and can
    lobby for immigration regardless if it is the best interests of the economy as a whole. This
    could be seen in Canada where the development industry has lobbied hard for high sustained
    immigration levels (Ley and Tutchener 2001).
    …..
    Doubt, Smoke and Mirrors, Vested Interests

    Vote: Thumb up 0 Thumb down 3 You need to be logged in to vote
  12. Hugh Pavletich (152 comments) says:

    Copy (without hyperlinks) General Email sent out internationally this morning …

    Subject: (AUSTRALIAN FEDERAL TREASURER JOE) HOCKEY ENVIES NEW ZEALAND’S FALLING JOBLESS RATE … THE AUSTRALIAN

    (AUSTRALIAN FEDERAL TREASURER JOE) HOCKEY ENVIES NEW ZEALAND’S FALLING JOBLESS RATE … THE AUSTRALIAN

    http://www.theaustralian.com.au/news/latest-news/hockey-envies-nzs-falling-jobless-rate/story-fn3dxiwe-1227015608177?nk=f0b39b0c6d99facfb1f619effb90028b

    Discussion at …. Hockey On New Zealand … Kiwiblog … comments welcome …

    … extracts …

    JOE Hockey frequently admits he’s a little bit jealous of our cousins across the ditch, in an economic sense at least.

    The (Australian) Department of Employment’s leading jobs indicator released on Wednesday fell for a 10th month in a row, signalling that jobs growth in coming months will be slower than its long-term trend of 1.3 per cent a year.

    In contrast, the annual pace of employment in New Zealand is a brisk 3.7 per cent, according to Statistics New Zealand.

    The release of the NZ figures coincided with a speech by Mr Hockey to the national conference of the Australia and New Zealand School of Government.

    He said New Zealand has stolen the advantage from Australia during the past few years by combining domestic structural reforms with newly negotiated trade opportunities in Asia.

    “As a result, they have falling unemployment, rising living standards and a budget that is coming into surplus,” Mr Hockey said.

    Faced with a hostile Senate over his first budget, Mr Hockey also said he was “quite jealous” that NZ Prime Minister John Key has to deal with only one parliamentary chamber.

    Even so, Mr Key and Finance Minister Bill English are showing the world how economic reform should be done.

    And it has not been achieved through “luck or complacency”.
    “There is no she’ll-be-right attitude,” Mr Hockey said.

    You are spot on Mr Hockey … read further at Performance Urban Planning and Hugh Pavletich | Scoop New Zealand InfoPages .

    Hugh Pavletich
    Co author Demographia International Housing Affordability Survey
    Performance Urban Planning
    Christchurch
    NEW ZEALAND

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  13. wreck1080 (3,863 comments) says:

    Frightening to think of Cunliffe/ Norman taking the financial reins.

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote
  14. Gulag1917 (851 comments) says:

    NZ has far more flexible employment environments, better work ethic, less rules and regulations and far less draconian laws than Australia.

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote
  15. Hugh Pavletich (152 comments) says:

    Kiwis continue to flood home from Australia (members) | | MacroBusiness Australia

    http://www.macrobusiness.com.au/2014/08/kiwis-continue-to-flood-home-from-australia-members/

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  16. seanmaitland (488 comments) says:

    @Milkenmild – you are why this site needs a kill file concept – your idiotic trolling and thread-jacking is tiresome.

    Back on topic – If the left get in at this election I’m almost looking forwards to the giant fuck-up they are going to make of the economy. I’ve already organised to shift my software startup to Australia if that happens – have actually relocated a couple of staff from New Zealand already.

    Vote: Thumb up 2 Thumb down 0 You need to be logged in to vote
  17. doggone7 (769 comments) says:

    I am pleased to see this story on here with that big heading. You see rugby, rugby league, soccer and netball get plenty of media space and attention. It’s about time Hockey got the attention it deserves!

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote

Leave a Reply

You must be logged in to post a comment.