NZPA report:

Labour will introduce a capital gains tax on investment properties if it wins the election, raising billions of dollars to pay for its spending promises.

I guess fiscal restraint was too much to hope for.

The party’s tax policy, to be released next week, is still under wraps but NZPA has confirmed a capital gains tax is one of its most important provisions.

It will not affect family homes, which would be political suicide, but will target people with one or more investment properties at a rate of 15 per cent on the profit made when they are sold.

One can have an economic debate on whether we should have a more comprehensive capital gains tax regime. Contrary to what many think, you do pay tax on capital gains if you are deemed investing for the purpose of a capital gain.

But why only investment properties? Why not also tax all capital gains such as on the sharemarket? If you invest in a property development company and their shares go up there is no capital gain, but if you buy a second house yourself and sell it some years later, you get pinged.

The property market was over-heated in the 2000s and before. National’s change last year to remove depreciation on investment properties has actually made a difference. I know as I had been looking at whether or not to sell my old apartment or rent it out as an investment property. before the depreciation change I would have kept it and rented it out. But the loss of the cashflow advantage from depreciation meant that I would have a net cash deficit every year, and it was not worth it unless I was confident of really really strong capital growth.

I doubt the tax will raise as much money as Labour thinks, as people will just hold onto their properties rather than sell them.

In my Fairfax blog, I look at the June polls and compare them to June 2008, to see what an election result might look like if the next five months are like the last five months of 2008.

Hamish Fletcher in the NZ Herald reports:

CallPlus plans to offer internet users hooked into the ultra-fast broadband network at least a terabyte of data each month.

While New Zealand may be looking forward to the 100 megabit speeds on the fibre internet network, commentators are worried the infrastructure will not be used to its potential as data caps will restrict the amount customers can download each month.

Slingshot and CallPlus director Malcolm Dick said his companies could offer unlimited data on the ultra-fast broadband network if more internet links out of New Zealand were built.

“A couple of years out … you’d hope that all those caps would be removed and it would be the same as in Europe and the States. Certainly in the worst case we’re looking in the terabytes [of internet use a month]. It will be up to at least a terabyte, I reckon, it has to be,” Dick said.

Having more content hosted and cached in NZ would help also, but sadly it is cheaper for major content providers to host in the US than in NZ.

A 1 TB data cap would be a lot better than the current offerings. But let us look at how quick it might still be gobbled up.

Say you are on the 30 Mb/s plan. That is equal to 3.75 MB/s. A TB is around 1 million (2^20) MBs so a 1 TB cap would last for around 280,000 seconds or 4,660 minutes which is around 78 hours.

Now a month has around 720 hours in it, but you don’t tend to spend all day on the Internet and you don’t spend all your time using the maximum speed.

So a 1 TB data limit would look to be pretty good to me.

Alan McRobie (who advised the 1993 independent Electoral Referendum Panel) writes in the Herald:

If a majority of voters support MMP there are four changes that might usefully be made to improve its public acceptance.

First, parties should be required to win at least two electorate seats before they qualify for a share of list seats. Had this applied last election Act, which won fewer party votes than New Zealand First, would have had only one seat instead of the five it was awarded.

I disagree. I would lower the threshold to 4% (which would have seen NZ First remain) rather than increase the threshold for electorate seats which would merely encourage even more strategic voting.

Second, candidates should be permitted to stand either for an electorate seat or on a party list, not both.

This would remove what many see as “double-dipping”, aptly described as “voted out on Saturday; back in on Monday”.

Again I disagree. If you ban people standing on both, then it means that all the electorate candidates will concentrate on the electorate vote instead of the party vote.

I would deal with the Saturday to Monday issue in a different way, such as not allowing an MP who was the electorate MP and lost, from coming back via the list.

Third, sitting list MPs’ enthusiasm for standing in byelections in constituency seats should be dampened. It is somewhat bizarre to see sitting list MPs contesting byelections as has happened in Mt Albert, Mana and Te Tai Tokerau.

Here I agree. I would support a change that a List MP has to resign from their list seat, in order to stand as a candidate in a by-election. Jim Anderton I think has a bill proposing that.

Fourth, serious consideration should be given to introducing the alternative vote (preferential vote), at least for the party list vote. Although MMP results in proportional representation, wasted votes still occur when parties which fail to reach the 5 per cent threshold are excluded.

That is a novel idea. So those who voted for NZ First could then have their second choice count. I think it would be too confusing to have people rank all parties standing, but you could allow a 1st and 2nd preference.

Personally I think you could also use AV for the electorate vote.

Despite the recent statement by the Prime Minister that National “would not campaign for any position in the referendum” Parliament has loaded the options in favour of single-party majoritarian governments.

Nonsense. They have kept the exact same options from the 1992 and 1993 referenda.

It is good to see that Jetstar have now come out and decided in future passengers are not allowed to urinate on other passengers. It only took them a few days to decide on this wonderful customer service initiative.

I understand they are now also considering a ban on shitting in the aisle.

The Herald reports:

Musicians and media have hit out at plans to sell student radio station Radio One as an attack on the cultural heart of Dunedin.

Otago University Students Association (OUSA) has confirmed it is looking at selling Radio One to save money ahead of legislation ending compulsory membership of student bodies.

The station is broadcasting nothing but ambient noise and explanatory public service announcements this week to protest the proposal.

Manager Sean Norling said Radio One was Dunedin’s most established independent radio station and was crucial to making the city a viable option for touring artists.

There is an assumption here that if Radio One is sold, and no longer subsidised, it would not exist.

This is not the case. In Wellington we have Radio Active. It used to be owned by VUWSA but as is often the case when you have easy compulsory money, became a black hole and almost bankrupted VUWSA. So VUWSA sold it to existing management, and for over two decades it has continued on stronger than ever. It still has a strong following, is non-commercial, and no longer funded by students against their will.

A student survey last year also revealed Radio One as one of the least valued OUSA assets, Mr Edgar said.

So why should students be forced to fund it?

The proposal would now go through a submissions phase and Radio One staff would have the opportunity to have their say. A decision was likely to be made before the end of the year.

Because the station had a non-profit licence, Norling said he believed it would have “little commercial appeal” and a sale was unlikely.

Radio Active has managed fine for 20 years without VUWSA funding. bFM in Auckland does very well without compulsory AUSA funding.

Norling would be better placed working on a business plan which does not involve OUSA funding, than going on an effective strike.

For too long Governments have focused on operational spending, sometimes amounts as small as a few hundred thousand dollars, yet the billions of capital or infrastructure expenditure has received little scrutiny.

The National Infrastructure Plan is an interesting read, and only 68 pages long. The infrastructure spend is divided into five categories and six principles, with the results showing in the table below:

Green means this occurs effectively, orange means it occurs but could be better and red means it does not occur or is ineffective.

Water infrastructure stands out as the area that clearly needs the most attention.

TVNZ reports:

Many people have also commented on the book’s timing, including prominent blogger David Farrar who said it was “appalling in itself” and that “Wishart has chosen to market the book during the coronial inquest into the death of the twins”.

In a statement to ONE News, Wishart also said the book’s timing was “appalling”.

However, he added it was not intentional and that “the only positive is that it has created a strong national debate on child abuse”. The story broke after ONE News contacted Wishart following a tip-off.

Wishart said it was not true that the publicity for the book, which is being published by his Howling at the Moon company and is due for release at the end of the month, was deliberately timed to coincide with the inquest.

My guest bloggers do not post often, so it is an easy mistake to make. But those quotes in questions come from Jadis, not me. If you scroll down the main page, you’ll see her listed as the author for the posting on 29 June at 10.26 am.

The site doesn’t list authors on individual archive pages, only the main page. I have on my to do list to get that changed.

The wedding ceremony took place outside Lytham Hall. It was a superb location, and the sun shone all day.

The opening hymn was Jerusalem, which in the beautiful English countryside was so appropriate. Then there was a reading, of “Oh The Places You’ll Go” by Dr Seuss.

A second hymn was Amazing Grace – a favourite for weddings. Then we had the vows, and after the vows, a simply amazing rendition of Po Kare Kare Ana by Michelle Tufnell. Michelle had never heard it sung before, and learnt it by listening to recordings of others singing it. She got it absolutely perfect and I was not surprised to learn she is a professional singer.

Finally the ceremony ended with Vangelis’ Conquest of Paradise.

Afterwards we had Georgian Tea and Wedding Cake, plus a performance by the Fylde Coast Cloggers – who are basically Morris Dancers in Clogs. I joked to Shane that he had combined his wedding with the Green Party AGM 🙂

This portrait inside Lytham Hall made me think of Paul henry because at first glance it looks like a lady with a moustache. But in fact the portrait is of Sir Cuthbert Clifton, the original landowner.

Myself outside the hall.

Shane and Erica doing the first of many dances.

It was a wonderful wedding, and a great end to a very enjoyable 16 days in the UK. I’m now back in London, staying at the Sheraton Heathrow until my flight tomorrow.

Drove around 1,750 miles over the trip, or 2,800 kms. I think my right foot has a blister on it 🙂

The NZ Herald editorial:

When an overwhelming majority of people say they want the legal purchasing age for alcohol raised to 20, there is reason to pay attention.

Attention may be, but not deference.

It is no surprise that lost of people who are not aged 18 and 19 want to take rights away from 18 and 19 year olds. Just as once upon a time lots of men did not think women should have the vote.

Bernard Orsman writes in the NZ Herald:

First-term Auckland councillor Cameron Brewer is not ruling out challenging Mayor Len Brown for the mayoralty in 2013 after making a big splash in his first eight months.

The Orakei councillor and National Party member said a challenge was “highly unlikely … but you never rule anything out in politics”.

Speculation is growing about Mr Brewer’s political motives after he was the only councillor to vote last week against Mr Brown’s first budget and rates increase of 3.94 per cent.

I think Cameron will become Mayor of Auckland at some stage. But that is a different issue to whether he should stand in 2013. Personally I think he would be better placed to stand in 2016.

John Hartevelt at Stuff reports:

Labour has been accused of “trying to have it both ways” on free trade, after one of its MPs raised concerns over the outsourcing of labour to India.

On her Twitter account yesterday, Labour MP for Dunedin South, Clare Curran, posted the question: “Wonder what we’ll hand over. More labour outsourcing?” alongside a link to a media report on negotiations for a free trade agreement with India.

Labour leader Phil Goff last week said Labour supported an FTA with India.

As trade minister in 2007, Mr Goff launched a feasibility study for the deal, which he said at the time “would have significant economic benefit for New Zealand”.

“We went into it, we laid the foundation, and were supporting this government building on that foundation,” he said last week.

Ms Currankeep said she did not have concerns about an FTA with India and that her statement had been particularly in relation to the outsourcing of contracts to countries like India.

Oh dear. So Clare is saying she is against free trade, if it involves a contract.

We own Phil Goff and Helen Clark a debt, for keeping Labour away from going down the failed path of protectionism. The FTA with China is a huge credit to them.

My concern is once Goff goes. Labour have already started backsliding on issues such as monetary policy, and my fear is that post-Goff they will join the Greens as an anti-trade party.

I hope not, as trade should be as bi-partisan as possible – and largely has been for the last 20 years or so. But it obvious from Clare Curran’s comments she doesn’t in fact support free trade, and she would not be alone in the Labour caucus with that view. To be fair, I suspect there are a few protectionists in National also.

10/10 in 46 seconds for the Herald Politics Quiz. Not bad as I am on holiday.

On Thursday we left the Isle of Skye and drove to Glasgow. Just past the Kyle of Lochalsh, is the Eilean Donan Castle. It has featured in many films, especially the great Highlander.

On the road to Fort William is this memorial to the British Commandos who were established in WWII to attack behind enemy lines, and those who have served since. There’s also a section for photos and memorials, which include some who died very recently in Afghanistan.

We drove for many miles alongside Loch Lomond. Have been there before but can’t get enough of it.

We spent Thursday night in Glasgow and it was very pleasant. Our apartment was in the golden mile, so hundreds of cafes and restaurants around. Like Cardiff, Glasgow, has changed a lot from its traditional image.

On Friday arrived in Lytham St Annes for pre-wedding drinks. We are staying at The Grand hotel and I love the room with six large windows in a semi-circle meaning it gets lots of sun.

We are on the South Promenade next to the beach, so the views from the room is very English coastal.

Popped into St Annes for lunch, and found this nice pub called The Victoria. You get a massive lunch for three and a half pounds.

Is now Saturday and the wedding is in two hours so time to get ready!

Marty Sharpe at Stuff reports:

Maori do not own treasures such as flora and fauna but they are entitled to a “reasonable degree of protection” over them, a landmark report from the Waitangi Tribunal says.

It also says that unless Maori are given more say on the use of their culture and taonga – as promised in the Treaty of Waitangi – they will continue to figure disproportionately in the ranks of the poor and underproductive.

The Crown “either deliberately or through neglect, has largely supported one of New Zealand’s two founding cultures at the expense of the other”, the tribunal says in a report 20 years in the making.

The report on the WAI262 claim has been described as the most important Treaty development in a generation, but its findings – made public today – are already under fire from both sides of the political spectrum, and nothing is likely to happen to it until after the general election.

Maori Party MP Rahui Katene – the daughter of one of the original WAI262 claimants – said the findings were very political, weak and had missed the point.

Sounds like the Waitangi Tribunal has got it about right, if people on both ends are upset.

I asked earlier this year on the blog where to visit in Scotland, and by far the most common response was the Isle of Skye which is the most northerly of the Inner Hebrides.

You really only appreciate how far north you are by the fact that it only started to get dark at 11.30 pm. No seriously.

The drive from Edinburgh to the Isle of Skye was six hours, but the scenery was magnificent Lochs and hills everywhere. This photo is of the Laggan Dam on Loch Laggan. Water from the dam flows three miles by tunnel to Fort William.

A typical view along the way.

In the distance is the Skye Bridge which connects Skye to mainland Scotland.

Many of the roads on the island are single width but two-way, so every 200 metres or so there are indents where you can pull over to let ongoing traffic through.

Went on a tour of the wonderful Talisker Distillery and learnt all about how crucial the shape and size of the stills are. Also got to taste their product and happily purchased a bottle of their 57 north single malt. I would have loved to have got their 30 year bottle but the price was rather steep.

A view from the “capital” Portree.

We drove around the north of the island, and it was all views like this. I stopped for so many photos I was asked if I intended to stop at every corner, and my response was only the corners with great views. The response to that, is that is pretty much every corner.

Looking down a very steep cliff, you can see the large boulders at the bottom through the clear ocean.

This is known as Kilt Rock.

We only discovered this by chance. As driving around the coast by Kilmuir, we noticed this cemetery inland a few hundred metres. This is the resting place of Flora MacDonald who as a 24 year old helped Bonnie Prince Charlie escape the authorities by having him pose as her Irish spinning maid, Betty Burke.

Samuel Johnson said of her “a name that will be mentioned in history, and if courage and fidelity be virtues, mentioned with honour.”

This is the cottage we stayed in near Edinbane on the Isle of Skye. It was wonderfully remote.

The Three Chimneys Restaurant is not only the best food on the island, but is rated one of the top five restaurants in all of Scotland. They managed to fit us in for a late dinner at 9.45 pm. Normally might be weird eating so late, but as it stayed light until midnight, it was actually wonderful being able to gaze out the window at Loch Dunvegan, at 11.30 pm

This was my entrée – a haddock omelette. Words can not describe how divine it was. It was the best of food, helped down with some champagne, a Wild Earth pinot noir from Central Otago and finally some dessert wine. All with the sun setting over the beautiful loch. The highlight of the holiday.

The road home was one of those narrow single width ones, but even worse there were hundreds of sheep sleeping next to or even on the road. Crazy fun.

A typical highland cattle.

And when you combine rain and sun (which sorts of sums up Scotland), you get a rainbow.

In my Herald column I look at the Mana and Maori parties and conclude that the sensible thing for the Maori Party is to find a way to work with the Mana Party, as united they will be stronger than fighting each other.

I blog at Stuff on how the recent New Plymouth poll may be better news for Andrew Little than it appeared on the surface.

On Monday driving from Darlington to Edinburgh and got distracted by a sign pointing to Hadrian’s Wall. So we turned off the motorway and headed to Chesters where they not only had section of Hadrian’s Wall intact, but remains of Cilurnum, a roman cavalry fort. This was the commander’s quarters.

This is the River North Tyne, and you can see on the far side the remains of the wall continuing on. There was originally a bridge here of course.

The location also has a museum with hundreds of well preserved artefacts, especially engraved stones.

Nearby was this lovely field of poppies.

And another section of Hadrian’s Wall.

The border between England and Scotland is well marked, unlike the Welsh one. They have some mobile retailers selling food and souvenirs at the border, plus large rocks with Scotland marked on one side and England on the other.

Had a well located apartment in Edinburgh, just up the road from Holyrood. My second visit to Edinburgh – a truly lovely city.

No caption needed!

Caught up with an old friend and colleague at Monteiths. Most of the bar was inside, but they had covered over this alleyway to create an enclosed outdoor area.

A statue of the great Adam Smith.