Level 2 now a farce

Stuff reports:

Act Party leader David Seymour has called on the Government to move to alert level 1 immediately after the Black Lives Matter protests made “a mockery” of Covid-19 distancing restrictions.

On Monday, thousands of Kiwis around the country marched in solidarity with Black Lives Matter protesters in the United States. In one of the largest protests seen in central Auckland for several years, protestors overflowed from Aotea Square into Queen St.

“Scenes of thousands of protesters shoulder to shoulder makes a mockery of the Government’s Covid-19 restrictions and insults every New Zealander who’s followed them,” Seymour said.

Seymour is absolutely correct. If you can have 2,000 people squashed into Aotea Square, then why are we stopping more than 10- people attending a church service?

These are the law-abiding New Zealanders playing their part in the ‘team of five million’s’ effort to beat Covid-19, he said.

“Tonight they’ll see thousands of people shoulder-to-shoulder protesting something that happened 12,000 km away and, thankfully, has no parallel in New Zealand.”

And the Government did nothing to stop them. I don’t mean breaking it up (which would have been stupid) but remaining silent. Why did the PM not explicitly ask people not to join the protest? It must have been apparent large numbers were expected.

Deputy Prime Minister Winston Peters agreed with Seymour from his Facebook page: “If the authorities allow this to occur then we should be at level 1 tomorrow.”

What hypocrisy. He is the authorities. He is the Deputy Prime Minister. He could force Cabinet to move to Level 1 by saying he’ll support legislation in the House to move to it, if Cabinet doesn’t.

If the Government is serious about Level 2 applying to everyone, they DG of Health would order all those who attended the protests to self-isolate at home for the next two weeks.

QB Honours 2020

The full list is here. The titular honours are:

DNZM

To be Dames Companion of the said Order:

Distinguished Professor Jane Elizabeth Harding, ONZM, of Auckland. For services to neonatology and perinatology.

Dr Karen Olive Poutasi, CNZM, of Paraparaumu. For services to education and the State.

Mrs Aroha Hohipera Reriti-Crofts, CBE, JP, of Christchurch. For services to Māori and the community.

KNZM

To be Knights Companion of the said Order:

Professor Robert Bartlett Elliott, CNZM, of Auckland. For services to medical research.

Professor Derek Arana Te Ahi Lardelli, ONZM, of Gisborne. For services to Māori art.

So three professors, a public servant and a community worker.

Pleased to see Taika Waititi get an honour but surprised it is only an ONZM. He is a national and global superstar. He might not want a titular honour but I thought he’d be CNZM at least.

Of interest is in the entire list of a couple of hundred there is only one citation for services to business.

A Kiwibuild victim

One News reports:

First home buyers caught up in a repeatedly delayed development in Wellington say they wish they’d never even heard of KiwiBuild and the Government is advising them to try to get their money back from the developer.

The poor buyers were promised apartments by July 2020. Then told December 2020. Then October 2021 and now it is June 2022.

One KiwiBuild buyer, who wished to remain anonymous, told 1 NEWS he was delighted when he first won a ballot for a KiwiBuild home in the complex.

“I was thrilled to be honest, I had almost given up on the idea of owning my own home. This seemed like a really good way to get started, to get on the ladder.”

But the repeated delays have left him and his partner now paying rent for two more years in a poor quality rental property – despite having paid their deposit.

They’re now wishing they’d never heard of KiwiBuild.

“I would have to say my wife and I are quite gutted with the way things have gone.”

National’s housing spokesperson Nicola Willis says it’s totally unacceptable for people investing in a government housing programme to be treated this way.

“They put their faith in the KiwiBuild brand, they paid their money and now they’ve been left high and dry.”

Just another chapter in the fiasco that was Labour’s flagship policy.

General Debate 01 June 2020

China could join TPP

Caixinglobal reports:

Premier Li Keqiang said Thursday that China is willing to consider joining the Asia-Pacific’s largest free-trade pact, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), as Beijing sets its priorities for trade talks this year to drive an economic recovery amid Covid-19 pandemic.

When asked about China’s plan to join the CPTPP, Li told reporters at a wide-ranging press conference on the final day of the national legislature’s annual meeting in Beijing that “China has a positive and open attitude toward joining the CPTPP.”

That would be an excellent outcome, if it happens. The irony is of course that TPP was backed by the US as a way to isolate China. Then US pulled out of it, leaving an opening for China.

China is far from a benevolent country but they are a major economic force and the fewer trade barriers we have with them, the better it is for us. The economic benefits to NZ from the China FTA were massive and China joining TPP would be good for our exporters.

Will troops go in?

Stuff reports:

As unrest spread across dozens of American cities, the Pentagon took the rare step of ordering the Army to put several active-duty US military police units on the ready to deploy to Minneapolis, where the police killing of George Floyd sparked the widespread protests.

Soldiers from Fort Bragg in North Carolina and Fort Drum in New York have been ordered to be ready to deploy within four hours if called, according to three people with direct knowledge of the orders.

Such a tragedy. The murder of George Floyd is a stain on the country, but of course the rioting is absolutely the wrong response and only makes things far worse.

In recent years we seem to get video footage every two to three months of a (almost always) black man being killed by the Police when he was no threat to them. It makes you wonder how many were killed in the years before widespread mobile phones with video ability.

Jones in forestry strife

Stuff reports:

Forestry Minister Shane Jones is at loggerheads with a major forestry investment broker over a new forestry law.

Jones says it will help domestic sawmills, by reducing the number of raw logs sold overseas for processing.

But Roger Dickie, a broker for forestry investment, threatened to quit the New Zealand Institute of Forestry (NZIF), an industry group, after it expressed its support for Jones’s bill.

In an email to NZIF obtained by Stuff, Dickie said the bill was “unashamedly produced to enhance the so called Minister of Forestry’s electoral chances in Northland [sic]”. He described the bill as “political cronyism at its worst,” and believed it would damage the reputation as a relatively corruption-free country.

As far as I can see they are going to ban forestry companies from selling logs to the highest buyer, instead forcing to sell them to companies in areas such as Northland. So Dickie’s take seems right.

Three selections

Audrey Young writes:

Labour has selected lawyer and board member Arena Williams as its candidate for Manurewa, a seat currently held by Louisa Wall.

Wall announced on Friday she would be withdrawing from the contested selection to seek a place on Labour’s list only after a negotiation with party president Claire Szabo.

No surprise as Williams is backed by Robertson. Williams (and her partner) are both former student union presidents.

Labour has also selected Barbara Edmonds to stand in Mana, a seat currently held by Labour’s Kris Faafoi who is going on the list only.

Edmonds is a specialist tax lawyer, and mother of eight. She has worked in the public and private sector in insurance and tax law and was seconded from Inland Revenue to work for ministers of revenue including Judith Collins.

Collins tweeted her congratulations to Edmonds on her selection. Edmonds is currently an adviser in Stuart Nash’s office.

Being a parent to eight kids and a specialist tax lawyer is impressive.

National selected sheep and beef farmer Mike Butterick as its Wairarapa candidate.

The seat is currently by Alistair Scott who is standing down at the September 19 election.

Butterick is the meat and wool chair of Wairarapa Federated Farmers and is part of the Wairarapa Primary Skills Leaders group.

If Butterick wins he’ll be the first sheep and beef farmer for a while. Scott and Creech had vineyards while Hayes and Beyer didn’t have agricultural backgrounds.

Broadcasting Allocations

The Electoral Commission announced:

The Electoral Commission has released its decision on the allocation of funding to political parties for election advertising on radio, television and the internet for the 2020 General Election.

The funding (based on current seats, polls etc) is:

  1. $1,285,182 – National
  2. $1,202,267 – Labour
  3. $310,931 – NZ First, Greens
  4. $145,101 – ACT, Maori Party, TOP
  5. $62,186 – Advance NZ, ALCP, New Conservative
  6. $51,821 – Social Credit, Outdoors, Sustainable NZ, Vision NZ
  7. $41,457 – five unregistered parties

Personally I think it is time for the taxpayer funded allocations to end. They are a hangover from the days when broadcasting was so powerful, parties were not allowed to purchase advertising space directly so they got given an allocation.

Who you want to win results

After 1,400 votes, the results are:

US

Trump 67%
Biden 33%

NZ

Muller 91%
Ardern 9%

Combined

  • Trump/Muller 65%
  • Trump/Ardern 2%
  • Biden/Muller 26%
  • Biden/Ardern 7%

Which outcome matters more

  • Trump/Muller NZ 75% US 25%
  • Trump/Ardern 2% NZ 54% US 46%
  • Biden/Muller 26% NZ 72% US 28%
  • Biden/Ardern 7% NZ 53% US 47%

Quite interesting. Those who want Muller to win say the outcome in NZ is more important by a 3:1 margin. Those who want Ardern to win are almost 50/50 split between whether NZ or US outcome is more important.

Audrey rates the best and worst Covid performers

Audrey Young writes:

The Covid-19 crisis has already claimed one political scalp, Simon Bridges, but the management of the issue has also had an impact on the reputations on ministers and their departments, for the better and the worse.

The best of the Opposition MPs were National MPs Michael Woodhouse and Act leader David Seymour.

Each played to his strength on the Epidemic Response Committee which has just been shut down by the Government despite it being highly effective, or possibly because of it.

It was closed down because it was effective.

Her summary:

BEST PERFORMERS
• Jacinda Ardern – Prime Minister
• Grant Robertson – Finance Minister
• Chris Hipkins – Education Minister
• David Seymour – Act leader
• Michael Woodhouse – National health spokesman

WORST PERFORMERS
• David Clark
• Simon Bridges
• Kelvin Davis
• David Parker
• James Shaw

Too harsh on Bridges but otherwise fair.

Health spending increased

Simon Wilson writes:

It ran down the public service, most obviously in health, where it spent less, as a proportion of GDP, every year from 2010.

This is a cherry picked statistic. Why does he say from 2010 not from 2008? I’ll explain.

First of all National increased health spending – in nominal terms, in real terms and in real per capita terms.

Nominal spending increased 44% from 2008 to 2017

Real spending increased 23% from 2008 to 2017

Real per capita spending increased 10% from 2008 to 2017

But what about this spending as a percentage of GDP. Well this statistic punishes you for having strong economic growth. Take 2016.

Real spending on health increased 3.7%. But GDP increased 5.2% so health spending as a percentage of GDP went from 6.15% to 6.06%.

Would you rather have a real increase of 3.7% in health and nominal GDP growth of 5.2% or a real increase of say 2% and GDP growth of 1%?

The reality is in 2010 NZ had a huge deficit. The way out of deficit is you grow the economy slightly faster than you grow spending. That is how we got debt down to cushion us now.

NZ has just gone into recession, this means that as GDP drops health spending as a % of GDP increases. But that isn’t good.

But let’s say we do want to focus on health spending as a % of GDP. Rather than cherry pick let’s take 2008 and 2017. In 2008 I calculate it was 5.98% and in 2017 5.91%. Basically the same.

The other issue of course is we should be focusing more on outcomes, not on expenditure. The reality is that cancer waiting times, ED waiting times, immunisation rates have all fallen under Labour despite extra funding.

$10,000 per new job created

Todd Muller has announced a very exciting new policy. It is basically to pay employers $10,000 for every new job they create.

The full speech by Todd Muller is here, and well worth reading.

The details are:

  • Would run from 1 November 2020 to 31 March 2021
  • An employer will get $10,000 for each additional new FTE they employ
  • Capped at $100,000 per employer
  • $5,000 will be paid upon hiring and $5,000 after 90 days
  • Global cap of 50,000 jobs or $500 million
  • Payments are tax free
  • Paid out by IRD who will be able to check against payroll data that hires are additional

Also of interest in the speech are:

  • Believes we should be in Level 1 now
  • Will not increase taxes NZers pay
  • Confirm policy allowing businesses to immediately expense assets up to $150,000
  • Will regularly raise the minimum wage, but not in the middle of a recession
  • Will keep 90 day trial periods

Who do you want to win the most poll?

Many people have a strong interest in both NZ and US politics. So I’ve got a quick three question poll asking you who you want to win in each country but also which outcome matters the most to you, if you can only get one go your way. I’ll blog the results which should be interesting.

Feel free to comment below also with who your preferences are and which outcome is most important to you.

Create your own user feedback survey

The new Star Trek timeline

Star Trek has put out a new timeline based on this story in Stuff.

  • 2112 – Jonathan Archer born
  • 2151 – Star Trek: Enterprise launched
  • 2226 – Michael Burnham born
  • 2233 – James Tiberius Kirk born
  • 2256 – Star Trek: Discovery
  • 2266 – Star Trek: Original Series
  • 2305 – Jean-Luc Picard born
  • 2332 – Benjamin Sisko born
  • 2336 – Kathryn Janeway born
  • 2364 – Star Trek: The Next Generation
  • 2369 – Star Trek: DS9
  • 2371 – Star Trek: Voyager
  • 2379 – Star Trek: Picard
  • 2436 – Kiwibuild reaches its target of 100,000 houses
  • 2540 – USS Enterprise-J commissioned

Good summary on Bridges

Stuff has a story on the leadership of Simon Bridges and I think it is pretty fair covering the highlights and lowlights. One extract:

But Bridges fought back brilliantly at a time the Government would usually take all the attention. Labour had been talking up its 2019 budget for yonks. It was a “Wellbeing Budget” — billed as a new way of doing Government finances — shifting the focus away from blunt metrics like GDP a more rounded view of spending in areas that improved peoples’ wellbeing. 

The Opposition usually disappears around budget time, left responding to huge announcements. Not so for the vaunted Wellbeing budget. A staffer spotted that bits of the budget were easily accessible using a search bar on the Treasury website. National used this vulnerability to glean vast amounts of secret budget information. 

Bridges sent the budget to the press gallery during the middle of the prime minister’s Tuesday morning caucus media run. The Government was flustered. Reporters read lines of the budget to Ardern from their phones.

The saga played out until National finally revealed how it had obtained the information. In the maelstrom, Treasury Secretary Gabriel Makhlouf embarrassed himself by alleging the breach was a “hack”.

That particular episode drove a wedge between the Treasury and the Finance Minister during a week which should have been a career highlight for both. It played to Bridges’ strengths: he leveraged a simple vulnerability in Treasury’s website into a massive hit on the Government’s biggest day of the year. 

National began polling well — very well. It bested Labour in every single One News/Colmar Brunton Poll between the hack and this week.

The 2019 polls reflected a good year for Bridges. In April, he faced down a challenge from Judith Collins, who had been making an unsubtle pitch for the leadership on and off for months. Bridges knew she didn’t have the numbers, and had no compunction telling her so. The challenge was put to bed before it even eventuated and the Bridges-Collins psychodrama began a twelve-month hiatus.

Bridges was helped by repeated Government mistakes. The year began with the utter collapse of Labour’s flagship housing policy KiwiBuild — it ended with the news that its cornerstone transport policy, light rail in Auckland, was on the rocks as well.

2020 — HUGE HIGH BEFORE CRUSHING FALL

2020 began looking even better for Bridges. The hype around Ardern’s Christchurch response had mostly faded. He was making fewer missteps in media appearances — no longer umming and ahhing when asked if he would consider lowering the minimum wage for example, or making jokes about the prime minister’s newborn child. The talk of challenges to his leadership were long gone, with Collins much quieter after having lost Twyford as an opponent.

In February, he made a bold call his caucus mostly agreed with: ruling out working with NZ First after the election. The public seemed to like this move and in two consecutive polls they finally supported his party and ACT to a degree where it could govern.

There were definitely things Simon got wrong, but there was also a hell of a lot he got right.

Guest Post: Should we be at Level 0?

A reader writes in:

In recent days we’ve seen no new cases of Covid-19. 

The most recent new case was on the 22nd May and this was linked to a known cluster. 

The Ministry of Health (MoH) states ” The case is linked to the St Margaret’s cluster in Auckland and is a household contact of an earlier case.  Because of their connection to the earlier case, the person has been in isolation since the beginning of Level 4. “

Prior to this case, the next most recent case was on the 17th May and again was linked to a known cluster. 

Since the beginning of May there have been a total of 26 new cases, 3 of these have been from overseas travellers and 21 from known cases or clusters. The remaining two (1st and 2nd May) were of an unknown source (at the time of the media release) and were under investigation. 

New Zealand has had no cases that cannot be linked to known clusters and (from the media briefings) these cases were already isolation.

The typical incubation period of Covid-19 is described as two to fourteen days https://www.cdc.gov/coronavirus/2019-ncov/symptoms-testing/symptoms.html given this it would be reasonable to expect that no transmissions are occurring within the community.

The above, would indicate that we have no community transmission and that any cases are being managed in association with known clusters.

Are our current restrictions now unnecessary? They are causing significant material hardship, large numbers of workers are being made redundant. 

People are increasingly stressed and worried based on the ongoing messagings from the Ministry and the Government for a risk that is negligible, as borne out by the statistics above. 

They key thing is indeed the level of community transmission. This is what triggered the lockdown, but as the reader points out, we’ve been almost a month without a single case of community transmission.

100,000 Covid deaths in US

The number of confirmed Covid-19 deaths in the United States is now 102,107. This is the largest death toll in the world, but of course the US ia a very large country.

The top 10 for number of deaths is:

  1. US 102,107
  2. UK 37,640
  3. Italy 33,702
  4. France 28.596
  5. Spain 27,118
  6. Brazil 25,697
  7. Belgium 9,364
  8. Mexico 8,597
  9. Germany 8,533
  10. Iran 7,564

Deaths per capita is somewhat different. If we look at major countries death rates per million:

  1. Belgium 808
  2. Spain 580
  3. UK 552
  4. Italy 547
  5. France 438
  6. Sweden 418
  7. Netherlands 343
  8. Ireland 331
  9. US 309
  10. Switzerland 222

For the US the key thing will be whether the number of deaths declines, increases or plateaus. The average number of deaths in the last week has been around 1,000 and a fortnight ago was 1,500 and a month ago 2,000.

So if it keeps declining, then all good. Obviously bad if it increases again. But if it plateaus at 1,000 a day that would still mean another 100,000 dead by August and a total death toll of over 250,000 by the election.

Even though the death toll is not just because of the response of the Federal Government, I think it is fair to say that the higher the death toll, the more difficult re-election for Trump is. But what is hard to determine is what the point is when soft Trump voters will defect. Is it 150,000? Is it 200,000? Or doesn’t it matter at all?

Kiwibuild will achieve target in 2456!!!

Stuff reports:

The Government’s former flagship housing policy is so far behind schedule it will take more than 400 years to reach its initial target of 100,000 homes. It had hoped to reach the target in 10 years.

Initially, the Government had been hoping the rate of building would increase over time as KiwiBuild ramped up, with 1,000 homes built in the first year, 5,000 in the second, and 10,000 in the third, but the rate of building is slowing.

Each month in 2020 seeing tiny increases in the number of KiwiBuild homes built.

The number of KiwiBuild homes built to date stood at 393 at the end of March, equating to roughly 19 homes built each month since the scheme began in June 2018.

At that rate it would take 436 years to complete the remaining 99,607 houses that remain from the 100,000 target.

It must surely be the biggest Government failure of the last 50 years.

The timeframe for completion is so long that it’s fair to say the property market will be in a very different shape by the time the programme is finished. By way of comparison, 436 years ago, Queen Elizabeth I sat on the throne of England. William Shakespeare, though alive, had yet to have his first play performed. 

In terms of the property market, England had not yet begun its colonisation of the Americas, where vast tracts of land were taken through bloody colonisation, depressing the price of land. 

There’s no telling what similar changes are in store for land prices in the next 436 years. 

It’s conceivable that humans may have begun terraforming the surfaces of the Moon or Mars, freeing up land and depressing property prices. In that situation, it is unlikely to see governments of future centuries continuing with the KiwiBuild scheme. 

We have some idea of what will be happening in 2456. Three years earlier in 2453 the Federation launches the USS Enterprise NCC-1701-H. This Enterprise is commanded by Captain Joseph Vincent.

The Australian says the NZ Govt is pushing the economy off a cliff

Adam Creighton, the economics editor at The Australian writes:

New Zealand’s economy is in strife. Without major change, our constitutional cousin is in decline. Its public finances are in tatters, its biggest export, tourism, has been obliterated — Air New Zealand announced 4000 job losses this week — and New Zealand police now can enter people’s homes without a warrant. …

In one year, New Zealand has blown 30 years of hard-fought ­fiscal rectitude. Its public debt will explode from the equivalent of 19 per cent of gross domestic product last year to 54 per cent by 2022, on the government’s own figures.

Scott said expanding the deficit, expected to blow out to 10 per cent this year, was the right thing to do. “But looking further out, comparisons with other countries, such as the US and UK, are no basis to justify our large debt ratios; we’re a small, open economy with vulnerable export industries,” he said, noting the share of exports in GDP had been falling steadily for nine years.

30 years of fiscal rectitude gone in a year!

The Prime Minister and Finance Minister, who have not worked in the private sector, spruik the totems of modern left governments — renewable energy, trees, higher tax, equality — but without much to show for it. Plans for a billion trees and 100,000 houses have come close to almost naught, and a capital-gains tax was dumped. Labour made a song and dance about reducing child poverty too, but on six out of nine measures tracked by Statistics New Zealand it is unchanged or worse since 2017, including the share of children living in “material hardship”, which has risen to 13.4 per cent.

They managed 0.3% of their 100,000 houses and 2.5% of their billion trees.

The nation’s draconian response to the coronavirus was questionable, given it is an island with a massive moat and a small population spread over an area the size of Italy. Despite those obvious advantages, the stringency of its lockdown was higher than practically any other country, according to Oxford University’s Blavatnik School of Government. Deaths per million were the same as Australia’s — just four.

In fact, slightly higher.

Ardern is more popular than ever, and by all accounts is a good person and a great communicator. But if a COVID-19 vaccine remains elusive, New Zealanders may come to question her wisdom as they fall further down the global pecking order. Without economic growth, there won’t be money for more ICU beds.

A good reminder that economic growth is what allows us to have a public health system.

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