Centrist Comment

Export-led recovery needed now

2011-07-02T11:32:00.000+12:00

One of New Zealand's risk areas is its 40 year habit of borrowing to sustain the lifestyle we have become accustomed to. Since 1973 NZ has run ongoing current account deficits - that is we have been paying out more for imports and debt servicing then we have been earning from exports each year. The end result is that on a per capita basis NZ Inc (public and private sectors) now owes almost as much as the basket case economies of Greece, Spain and Ireland. Contributing factors were: the oil price shocks of 1973 and 1979; the UK's entry into the EU and the loss of traditional trading markets; and poor policy decisions here at home.

To get out from this hole NZ needs to change a few things:
1. Stop digging a deeper hole - stop borrowing so much overseas - earn more from selling high value products in overseas markets.
2. Invest more in research & development - especially into high value products for the export market.
3. Ensure we have an efficient and well-maintained infrastructure - transport, broadband communications, and financial services.
4. Make it easier for overseas investors to live and do business in NZ - including joint ventures, PPPs, and high-value exports where the economic benefits flow back to the national economy.
5. Provide policy settings than encourage kiwis to work or start their own businesses - rather than rely on welfare, promote education and training for 21st century living and working; encourage savings and investment rather than consumption and spending.
6. Encourage kiwis to look outwards to the global economy for their incomes - while living in NZ and building a strong sense of national identity and of place here in Aotearoa New Zealand.
7. Promote equal opportunities - regardless of class, gender or race. Break the long tail of underachievement and ensure that all kiwis have the chance to be part of the economic, educational and social mainstream of Aotearoa NZ.
8. Keep our clean green environment in good shape for future generations.

If any politicians out there want to pick up this recipe - feel free. Oh- one other thing - NZ should be setting a course and sticking with it - we need to avoid these lurches to the right and the left - especially on matter such as employment law, superannuation and compulsory saving. A good piece of bi-partisanship would be very helpful to our long term future. Both major parties know superannuation needs to be made affordable and the age probably needs raising. Why not agree on a few principles that the main parties will work within? I think the public are ready - provided there is plenty of notice and no one has the rug pulled out from under them.

This will be the last Centrist Comment blog. We're moving to wordpress under the Concise Comment blog - come and visit and join the conversation at concisecomment.wordpress.com

Rumblings Rising on Right

2011-04-26T23:18:00.000+12:00

The Standard claims that a change in ACT leadership is likely following Don Brash's leadership bid announced today. Unfortunately for ACT its problems may be deeper than a question of who holds the leadership position.

While ACT won some public support for its tough stance on law & order and its exposure of public sector extravagance (much of the credit for which goes to Hide) it also turned off many voters with its fundamentalist adherence to the purist free market - an ideology rejected by most centrist voters in successive elections.

Voters have concluded that selling off more of our economy to foreign ownership offers only a short term palliative at best and at worst is a betrayal of this country's long term economic interests. At a time of economic sluggishness and high unemployment opposition parties could normally be expected to be gaining ground. However Labour has identity problems of its own.

Damien O'Connor voiced the thoughts of many traditional Labour voters (and some Labour MPs) who are centrist on economic policy but conservative on social issues. Rightly or wrongly such voters feel Labour no longer represents them.

A genuine centrist party is a movement based on the aspirations of mainstream hardworking kiwis who are fed up with those politicians who seem to be increasingly out of touch with ordinary people.

Liberal Democrats making progress in UK

2011-02-20T17:51:00.000+13:00

Liberal Democrat Leader, Nick Clegg, continues to advance the fight against child poverty with the recently announced government initiatives to assist children.

In addition the Liberals and Conservatives look likely to face a forthcoming debate over British electoral reform as an upcoming referendum pitches the First Past the Post status quo against a proportional voting system.

Positively Wellington for better wages - National - NZ Herald News

2011-01-08T21:13:00.001+13:00

Wellington – a great place to work. Wellington is well-placed to become a fast growth, high-wage, city economy.

Positively Wellington for better wages - National - NZ Herald News

Mapp Retires

2010-12-15T20:17:00.000+13:00

Hon Wayne Mapp is retiring from politics. He deserves credit for his work in the Research, Science & Technology portfolio. He has also made the difficult decision to leave while he is at the top of his game. It will be important that the RS&T portfolio be held by another senior Minister - given its vital importance to New Zealand's future propsperity.

Treasury prompting debate on key issues

2010-11-30T20:53:00.000+13:00

In a recent NZ Herald story

More to be done on tax, education, says Treasury secretary - Business - NZ Herald News

Treasury Secretary, John Whitehead, championed the cause of reforms in tax and education to spur improved performance. It's good to see Treasury again prompting debate about longer term challenges facing the country.

There is a way out for Ireland, and Britain should stand ready to offer it

2010-11-17T23:47:00.000+13:00

There is a way out for Ireland, and Britain should stand ready to offer it
The problem with an overly centralised EU is that it can drag down provincial economies through inappropriate monetary policy settings. There are lessons here for small island economies. Don't let speculative bubbles get out of hand. Balance the books. Keep taxes as low as is feasible.

kiwis take it to kangaroos

2010-11-13T23:27:00.000+13:00

The New Zealand league team are level with Australia 6-6 as I write. No matter the end result the kiwis have put on an awesome display of determination and strength tonight. Go the kiwis!

Nick Clegg: Coalition will support growth across whole country | The Liberal Democrats: Latest News Detail

2010-11-05T22:28:00.001+13:00

Nick Clegg: Coalition will support growth across whole country The Liberal Democrats: Latest News Detail

A 1.4 billion pounds regional growth fund has been created - the first of many regional initiatives to be launched by the Conservative-Liberal Democrat government in the UK.

Household Recycling Changes

2010-11-03T23:00:00.000+13:00

In March next year Wellington City Council will be changing the way households recycle by introducing free 140-litre wheelie bins for recycling paper, metals and plastic. Recyclable glass will be collected in your existing 45-litre green recycling crate.

The change to wheelie bins is expected to increase recycling in the city by 40 percent and reduce the risk of injury for the workers who lift the bins. Another benefit is that almost all of the city's recyclables will be processed in New Zealand.

If you live in an area where a wheelie bin can easily be delivered you will be asked if you do not want a 140-litre wheelie bin. If, however, you live in an area with hilly terrain and access issues, you will be sent a letter giving you the option of receiving see-through recyclable bags for your plastics, paper and metals instead.

The Council's CitiOperations Manager, Mike Mendonca, says the letters will be hitting people's mailboxes this week and encourages residents to respond within the deadline.

"It's important for people to realise that if we do not receive a response from you, we will supply you with a wheelie bin.

"However, we're trying to make it as easy as possible for people to let us know whether they want a wheelie bin or not by going online to Wellington.govt.nz, or alternatively filling out the enclosed form and sending it back to us, using the reusable envelope provided.

"We need to receive people's responses by Thursday 18 November." The reason the letters are going out five months before delivery of the bins in March 2011, Mike says, is for logistical reasons.

"We need to ensure plenty of lead-time for the manufacture and distribution, and in order to accurately estimate the number of wheelie bins required. That's why we need to know now.

"The closer we get to the estimated number, the better the price and cost to residents."

When the scheme is introduced next year the recycling collection day will remain the same - however the wheelie bins will be collected on alternate weeks to the glass recycling bin. More information on these changes and what can be recycled will be provided when your wheelie bin is delivered.

Beehive - School fibre set-up costs to be met by Crown

2010-11-01T18:02:00.000+13:00

The government today announced a significant step forward in deploying broadband to schools. The sooner this capacity can be added and used by schools the better. Increasingly fibre and wireless technologies seem set to become standard for 21st century learning. Beehive - School fibre set-up costs to be met by Crown

Hobbit saved

2010-10-28T07:58:00.000+13:00

The government has secured the $670 million Hobbit movies for New Zealand. Prime Minister John Key announced the agreement with Warner Brothers last night after two days of negotiations with studio executives who had been worried about industrial disputes and wanted a bigger tax break than what NZ has previously offered for big movies, according to TVNZ.

Law changes will clear up confusion about the legal status of contractors and employees, but the $20 million tax break was much less than Warner Bros had asked for. A Bill will be put through Parliament today under urgency today to seal the deal.

Key said that in financial terms there was no doubt Warner Brothers could have got a better deal from other countries, but the studio wanted to make the movies in New Zealand and so did director Sir Peter Jackson.
"They wanted a lot more, they argued for a lot more," he said. "I made it clear we were at our limit, this is a better deal than we have had with other big movies made here in the past."

And the government has also won an agreement that New Zealand will be promoted through all the marketing DVDs and other material that will be used to publicise the two Hobbit movies, as well as hosting one of the world premieres. To get that it will offset $US10 million of Warner Brothers marketing costs.

"The strategic marketing opportunities for New Zealand from the movies will be worth tens of millions of dollars," Key said. "In the financial sense, this is a good deal."

Zero-fees policy ‘helps more people, improves education quality’ | United Future

2010-10-23T17:35:00.007+13:00

Zero-fees policy ‘helps more people, improves education quality’ United Future

Innovative approach to tertiary education from United Future.

UnitedFuture’s ‘zero-fees’ policy is a fairer, more effective solution to the student debt problem than Labour's universal student allowance as it also addresses the quality of education, according to leader Peter Dunne who spoke to students at Auckland University today.

“International university rankings released today show that our top universities are slipping down the list. They need a funding commitment from Government to reverse this trend ,” says Mr Dunne.

“Australia has 6 universities ranked in the top 50 in the world. We don’t have any. We have only one in the top 100 and two others in the top 200 – we can and need to do better,” says Mr Dunne.

“UnitedFuture would abolish all tertiary education fees, as well as commit to properly funding our institutions themselves. This will increase access to education and deal with student debt, as well as improving the value of New Zealand degrees.

Peter Dunne at the new building opening at Johnsonville School in July 2010.

“A limitation with universal student allowances is that they only help full-time students, part-time students are no better off, while allowances also do nothing to address the quality of education.”

Mr Dunne points out that in the long term, tuition fees are increasing at a rate faster than the cost of living.

“The funding is already there for zero-fees tuition – the cost falls within that for Labour’s Universal Allowance pledge, but it benefits more people and achieves better education,” he said.

Nick Clegg: Giving a fair chance to every child | The Liberal Democrats: Latest News Detail

2010-10-19T07:37:00.000+13:00

Liberal Democrats launch new anti-child poverty initiatives. Nick Clegg: Giving a fair chance to every child The Liberal Democrats: Latest News Detail. The Conservative-LibDem government has launched a new anti-poverty initiative aimed at helping the most vulnerable group in the UK. Linking educational funding to children is an important step towards empowering children and families.

The Liberal Democrat’s purpose in Government is to make Britain a better, fairer nation. "And ahead of next week’s comprehensive spending review, today we set out our plans for a four-year, £7 billion investment in improving opportunities for the most disadvantaged kids in this country."

Deputy Prime Minister Nick Clegg today wrote to Liberal Democrat supporters following the announcement of a £7bn "fairness premium".

Read the letter in full

Dear member,

Today is a defining moment for the Liberal Democrats. Today we show what can be achieved as a party in power - that we can deliver on a promise that we put on the very front page of our manifesto: giving a fair chance to every child.

The Liberal Democrat’s purpose in Government is to make Britain a better, fairer nation. And ahead of next week’s comprehensive spending review, today we set out our plans for a four-year, £7 billion investment in improving opportunities for the most disadvantaged kids in this country.

Every disadvantaged two year-old will be entitled to 15 hours free early education – in addition to the existing entitlements at the ages of three and four. Every poor school child will get additional help from a Pupil Premium paid to their school. Every young adult who wants to go to university will be able to do so, undeterred by financial barriers.

By the end of the spending review period, we will be investing £3 billion a year on this Fairness Premium – including £2.5 billion on the pupil premium alone, £300 million on the extra help for two year-olds and £150 million on the university fairness scheme. From next year, we will he helping poorer children from two to twenty: from a child’s first shoes to a young adult’s first suit.

Given that we are having to cut spending these are sizable new commitments. But even as we cut spending, we are determined to invest in fairness.

Whatever Labour say, we have no choice but to tackle the deficit. Ed Miliband thinks otherwise. He says he represents a ‘new generation’. But he seems happy to saddle the next generation with the debt that his Government racked up. I am not.

Every day we lose more in interest payments to the financial markets: the amount we pay in interest is enough to build a new primary school every hour. Let me be absolutely candid: we have a hard road to recovery ahead of us. But also let me assure you, that as Liberal Democrats we are determined to ensure that road leads to fairness, too.

For me, this is personal. A decade ago I argued in favour of a pupil premium to help children and close the educational gap. Under Labour this gap has been left to widen and for too long the achievements in life have been dictated by the circumstances of birth. I represent a constituency in Sheffield where, for all Labour’s promises, inequalities still scar the community.

All of us are having to work hard in order to make the spending review fair. We’re all having to accept difficult cuts in many areas of public spending that we would very much rather avoid. Both parties in Government are having to negotiate and compromise. We’re all having to change our positions on some issues when the arguments demand it.

But all of us in this government, including the Prime Minister and myself, are not willing to compromise on a better future for the poorest children.

None of this would have been possible without all the hard work done by members up and down the country at the last election and over the many years before that. We should all be proud that we are delivering in Government the changes for which we have campaigned for so long.

Best wishes

Nick Clegg

Leader of the Liberal Democrats

Which government takes the biggest bite out of an income of $100,000?

2010-10-18T17:59:00.000+13:00

LOOMING debt and demographic crises have many governments searching for new revenue sources. Some governments have less room to raise taxes than others. An analysis by KPMG, a consultancy, compares effective tax rates—net of offsets—and social-security contribution rates across 81 countries. Unsurprisingly, European countries top the list. As a result austerity measures across much of Europe must focus on cutting spending. At just under 40%, the total burden of taxation in India is quite high relative to that in China. But a thin social safety net means that China’s residents must save a high share of their disposable income as insurance, offsetting some of the growth effect of low tax rates. For low rates, nothing beats living in a banking centre, a petro-state, or (naturally) a tax haven.

Compulsory savings still a good option

2010-08-23T14:11:00.000+12:00

An infometrics economist published in the Dom Post this weekend trying to argue against compulsory savings schemes. Apart from a vague philosophical point that compulsion is bad and freedom of choice is good he appeared to have very little new to say on the subject. In fact he glossed over the central problem with NZ having insufficient domestic capital and being far too reliant on overseas funds for business investment capital.

There is a risk that politicians in the future might try to break into any savings scheme for allegedly urgent needs of the day. But it should be possible to ringfence such investments - if necessary by placing it in the name of individual account holders. The onus is on the opponents of compulsion to say in plain terms how, in the absence of a large pool of domestic savings, they propose to solve the decades-long problem of large overseas borrowings to fund NZ consumer and household-led consumption and housing spending?

Former Council candidate opts to focus on school build

2010-08-20T09:56:00.000+12:00

For those of you who have asked me over the last couple of months whether I will stand for Council in October....the answer is no.

Since the 2007 election I have gained further senior management responsibilities with my employer. I am also very keen to continue working on the Establishment Board of Trustees to complete the new Amesbury School, in Churton Park, during the next 18 months. These commitments together with some community volunteer projects mean that I am not able to devote the time required for a council campaign this year.

Income Sharing: empowering parents

2010-08-19T23:40:00.000+12:00

Parents make decisions about the care of their children. Often this decision is influenced by subsidies and penalties arising from government policy. Fostered by large-scale state subsidies the NZ childcare industry (and many of the providers are large commercial corporations) has become a juggernaut.

According to the Ministry of Education “The taxpayer’s contribution to the early childhood education sector has risen from $428 million in 2004/05 to $1.17 billion in 2009/10.”

The Minister of Education said recently that the cost of funding 20 hours free early childhood education for under five year olds had nearly trebled over the last five years and was projected to continue rising at about $200 million a year.

These subsidies are not just for low income households. In fact, according to the NZ Herald for families with three children or more the income eligibility threshold is currently $99,320 per annum.
In addition to the taxpayer largesse enjoyed by those who entrust the care of their children to State-funded carers, it is estimated that the 310,000 kiwi families who choose to care for their own children now pay as much as $450million more in tax per year than they would if each parent could share their income for tax purposes.

It’s one thing for one group of parents to get a helping hand from the State. But it is not reasonable for other parents who miss out on those subsidies and do their own caring to have to pay for the subsidies other families enjoy.

Why does it matter? Well if state-subsidised childcare was universally better for our children then it might be more difficult to argue against heavily taxing families that don’t use childcare centres. However, there is some evidence that full time childcare has long-term negative effects on learned attachment and behaviour. At best the evidence is mixed. In fact a Treasury paper on the subject says:

“A meta-analysis by Violato and Russell (2000) on the psychological effects of non-maternal care on children in terms of cognitive development showed that children in day care are in all likelihood not at risk of negative outcomes compared to children in maternal care. On the other hand the results for the socio-emotional and behavioural domains showed clearly negative outcomes for non-maternal care. There were negative consequences for both boys and girls, analysed together and separately, however boys are seemingly more at risk. In terms of maternal attachment, children in day care arrangements were at increased risk of “insecure attachment” due to extensive non-maternal care. Maladjustment might not necessarily be causally connected to insecure attachment. There does exist substantial evidence that attachment patterns formed early in life extend into later childhood and adolescence and perhaps beyond, while there also exists evidence that early attachment patterns effect psychological adjustment in childhood. “

Quite apart from the debate about the costs and benefits of childcare the consequences of a cost-plus approach to childcare provision and widespread state subsidies is not hard to predict.

A Listener article from May 2004 stated that:

“…a government scheme paid bounty hunters up to $2275 a head for enrolling Maori or Pacific preschoolers raises far more damning issues.

… the Manurewa-based Whare Akonga Learning Centre received $1.13m – the most bounty of the 59 organisations that enrolled 5280 children nationally, at a total cost of just under $7 million. It has close links with two other Manurewa organisations that reaped $387,000 from the scheme. Both organisations were found by audits to have dozens of irregularities in their records. These included placing children in unapproved playgroups, claiming to have introduced children to preschools that had never heard of them, and providing names that turned up on another contractor’s database. There were high dropout rates for these children. And there was a clear conflict of interest, with bounty hunters placing children in their own organisations.

So should childcare subsidies be ended? Well the evidence on the effects of childcare centres is mixed. In any case with over 60% of families now hooked into childcare subsidies it would be a brave politician who unplugged the subsidy drip.

The supporters of income-sharing are simply saying – setting aside the arguments about childcare – parents should be free to choose without having the State making “an offer they can’t refuse”.

An income-sharing tax credit helps to restore the balance so that parents can make their own decisions about the care of their children.

The objectives of income-sharing are:

 give parents greater choice in their work and caring roles; and

 acknowledge the contributions of those who forego paid work to care for children.

The Taxation (Income-sharing Tax Credit) Bill introduces a new tax credit for couples with dependent children, based on sharing their incomes equally and paying tax based on half of the shared income.

The changes proposed in the bill will also mean some couples have greater choices to work fewer or more flexible hours of paid work in order to care for children, by increasing their combined after-tax income. At long last income sharing would give some recognition to the work done in the home caring for children.

New Zealand can empower parents and let them make their own choices if a majority of parliamentarians support the Income sharing Tax Credit Bill. Write or email your MP asking them to support the Income Sharing Bill. Join the facebook group: Friends of Income Sharing at http://www.facebook.com/group.php?gid=145385598816660

Income Sharing Bill gaining support

2010-08-18T21:37:00.000+12:00

Peter Dunne, United Future leader, is on the campaign trail promoting his income sharing bill. He seems to be gaining public support. A radio interview today sets out his view. Seems to us to be a sensible option that provides real choice for parents all over New Zealand. For more details see the United website. Those voters who are tired of the social engineering that tilts the playing field in the direction of both parents working will welcome this initiative. It's disappointing to see the Labour Party rejecting this idea out of hand. John Key has indicated he has an open mind on the matter. People who support this policy proposal need to show their support and write to their MP about it.

Obama criticised for defending religious freedom

2010-08-15T18:42:00.000+12:00

USA today reports on President Obama's statements related to the right of all Americans to practice their own religion - including muslims.

Time is right for compulsory super savings

2010-08-15T15:46:00.000+12:00

DPF over at Kiwiblog remains opposed to compulsory super because he is concerned that politicians of one stripe or another will eventually be tempted to spend the money on a pet project - rather than on funding citizens' retirement. What he overlooks, however, is that we already have a risky arrangement in place. It is called income tax and national superannuation. A new compulsory savings scheme should tag all funds for funding citizens' retirement and should be in the name of specific individuals. It should not be accessible for spending by government - unlike the present tax & spend arrangement.

The main benefit of a compulsory retirement savings scheme would be reduce New Zealand's dependence on overseas savings and capital for investment. The consequence of decades of borrowings - largely to fund housing - has been to increase the per capita debt of NZ towards to Icelandic proportions. A sovereign state cannot continue with such an approach without either the receivers one day being called in - in the form of the IMF in the case of countries - or dramatic reductions in citizens' living standards. Neither prospect is something New Zealanders can be blase about. Here's hoping the government has the courage to move to a compulsory retirement savings scheme - with safeguards to keep politicians away from our nesteggs.

Wellington City Council told to Constrain Spending | Scoop News

2010-08-14T17:30:00.000+12:00

Business and residential ratepayer groups have frequently expressed concerns about ongoing increases in rates costs. The Wellington Chamber of Commerce made submissions on this issue earlier this year -
Wellington City Council told to Constrain Spending Scoop News . While we may not agree with the WRCC comments about climate change - which we see as everyone's responsibility - we do agree that above inflation rates rises over the long term are having a deleterious effect on the city's growth, private sector job creation and prosperity.

A thorough review of the Council's scope of activities is long overdue. Central government too has a responsibility to provide funding if it is going to force councils to deliver certain non-core services not previously delivered.

Schiff promotes sound economics - and has a good track record

2010-08-14T11:59:00.000+12:00

Peter Schiff http://blogs.telegraph.co.uk/news/danielhannan/100047096/teach-yourself-free-market-economics-in-a-day/ accurately predicted the global recession because he saw that some key fundamentals were out of whack. You can't fund prosperity by borrowing your way to growth. Savings are a key source of investment capital. Spending more than you earn on an ongoing basis is a recipe for disaster - basic stuff really but for some reason the global financial community forgot the basics.

Broadband Policy in The Age

2010-08-12T13:24:00.000+12:00

Broadband Policy in The Age explores the high cost NBN network and its alternatives - well worth for those of us who want to see better broadband but want to minimise the risk around large State-led investment projects.

New technologies help tackle energy crisis

2010-07-31T23:11:00.000+12:00

The global energy system sits at the nexus of some of the deepest dilemmas of our times: prosperity versus poverty; globalization versus security; and growth versus the environment.

The global energy system sits at the nexus of some of the deepest dilemmas of our times: prosperity versus poverty; globalization versus security; and growth versus the environment. Current energy trends are patently unsustainable — socially, environmentally, economically. That said, there is still plenty of oil and gas to be found and produced, most of it is in increasingly difficult places – whether that’s difficult geology, difficult environmental conditions or difficult politics.

Whatever happens, supplies of easy-to-produce oil will certainly not keep up with growing energy demand. This is because, as economies grow and ascend the energy ladder, demand is likely to double over the first half of this century and we simply cannot increase (oil and gas) production that fast. Even if we produce energy from all possible sources it will be difficult to meet the world’s growing needs. Within this context, while oil will remain the leading energy source and there will be some price volatility, the era of cheap oil is over. The key questions being asked here are when is global oil and gas production going to peak? This could be anytime between now and 2040 for oil and a decade later for gas. How can we take it out of the ground fast enough to meet demand? How can we fill the gap between supply and demand from renewable energy such as wind, solar, etc or from coal or nuclear energy when, historically, it has taken 25 years for new energy sources and carriers to obtain a 1 percent share of the global market following commercial introduction? And will there be one leading alternative energy source?

To add more complexity, the oil market itself is also undergoing major and lasting internal structural change, with National Oil Companies (NOCs) in the ascendancy against the Integrated Oils Companies (IOCs) such as Shell, BP and Exxon. The NOCs have different motivations for globalization: For example, as China does not have many of own resources in oil and gas (but lots of coal), the Chinese NOCs such as CNPC, CNOOC and PetroChina all have a responsibility to provide the ‘motherland’ with secure energy supplies. Simultaneously, the NOCs of the major resource holders such as KOC (Kuwait), Petronas (Malaysia) want to expand globally in the downstream, i.e. refineries, forecourts arenas, and so by-pass the ‘middle man’ (IOCs) who traditionally refine and sell their crude oil. Others, like Saudi Aramco, simply want to decrease their dependency on the technology owned by the IOCs and develop their own staff. The key questions being raised here are therefore what will the role of the IOCs be in the future? And how can they play a role in, for example, sustaining supplies of affordable and responsibly produced oil and gas, through better technology, cost reductions, more efficient operations and fresh thinking?

Lastly, turning to the major challenge of climate change, we have to be clear that emissions of CO2 and other greenhouse gases are on an unsustainable pathway. To avoid “abrupt and irreversible” climate change we need a major decarbonization of the world’s energy system.

Read Leo’s views on the Future of Energy http://www.futureagenda.org/?cat=5

Leo Roodhart – President of the Society of Petroleum Engineers and VP Group GameChanger Shell

Leo is currently the 2009 President of the Society of Petroleum Engineers. Prior to this he coordinated GameChanger – Shell’s corporate Strategic Innovation program that identifies and sponsors the development of new breakthrough technologies in the context of the various technology futures for the oil industry. Several new businesses and a multitude of new technologies have been created in this new process. Leo holds an MSc in chemistry and a PhD in Mathematics and Physics from the University of Amsterdam. He is an Associate Fellow on Strategic Innovation at Templeton College and Said Business School, University of Oxford. Leo has worked for Shell for 29 years in various functions including research and development, exploration and production, business development and innovation in The Netherlands, Canada and the UK.

Global mobile connections surpass 5 billion milestone

2010-07-19T18:22:00.000+12:00

The mobile industry just added 1 billion connections in 18 months; and is on track to reach 6 billion in 1H 2012 according to Wireless Intelligence http://now.eloqua.com/es.asp?s=667&e=97345&elq=974b9ded463a4865857254064306fe11

The number of global mobile connections surpassed the 5 billion mark this week, according to new Wireless Intelligence data. The milestone comes just 18 months after the 4 billion mark was reached at the end of 2008 and is in line with our earlier forecasts. We predict that the 6 billion global connections milestone will be achieved in the first half of 2012. According to our data, the mobile penetration rate on a global basis at the 5 billion mark was 74 percent, compared to 60 percent at 4 billion. The highest penetrated region is Western Europe on 130 percent, while the lowest is Africa on 52 percent. Eastern Europe (123 percent) is the only other global region to have passed 100 percent mobile penetration.

The main driver of growth continues to be the Asia-Pacific region, which accounted for 47 percent of global mobile connections at the end of 2Q10 (see table). This is up around 5 percent from 4Q08 when the 4 billion connections mark was reached. Growth in Asia-Pacific is due mainly to ongoing growth in China and India – the world's two largest mobile markets – which offset slowing growth elsewhere in the region in markets such as Pakistan and the Philippines. Growth was slower in mature markets such as Europe and North America, which now account for around 27 percent of global connections, compared to over 30 percent 18 months ago.

Kiwiblog tips Nats win

2010-07-12T15:22:00.000+12:00

kiwiblog interpretation of the latest poll results - is that Labour are in deep trouble and have little chance of winning the 2011 election. However, the recession is not over yet and a lot can change in politics in a short space of time. On the horizon are looming challenges - for whoever forms the next government. The chronic balance of payments and current account deficits feature large in any external assessment of New Zealand's economic condition. Having said that - right now National have a handy lead in most polls.

Political parties will need to persuade the public that they have solutions for the thorny and intertwined issues of overseas indebtedness, overseas ownership and lack of NZ savings (in things other than housing). Eventually these underlying constraints on sustainable prosperity will bubble to the surface of popular opinion and the party best prepared to resolve those concerns will be in a strong position. For now though credit card allowances, movie rentals and old sheds on Auckland's waterfront appear to be the focus of fourth estate scrutiny.

Gillard struggling over Timor flip flop

2010-07-08T22:52:00.000+12:00

The new Australian Prime Minister - Julia Gillard (49) - was struggling today after having to back down over her policy announcement of a refugee processing centre in East Timor, or New Zealand. Late today Gillard was backing off her earlier announcement saying that the proposed centre would not necessarily be in East Timor after all.

The backtrack comes in the wake of revelations that the inexperienced Prime Minister consulted with the wrong political leader in the Timorese government. Instead of speaking with her counterpart - the Prime Minister of Timor - Ms Gillard spoke with the Head of State - the President. It would be the equivalent of President Obama phoning our Governor General for a chat about defence policy - rather than John Key.

Meanwhile Opposition Leader Tony Abbott was making the most of Ms Gillard's flip flop just days into her new job. Some of the ALP must be starting to wonder whether they hurried the leadership decision a couple of weeks ago.

Telstra fibre not enough: NBN Co - Telstra, nbn co, fibre - Computerworld

2010-07-06T22:53:00.000+12:00

Computerworld recently published a report on Telstra's fibre network and how it will not be sufficient for Australia's National Broadband Network. Telstra fibre not enough: NBN Co - Telstra, nbn co, fibre - Computerworld

Chauvel opposes Income Splitting

2010-07-05T20:43:00.000+12:00

Labour list MP, Charles Chauvel, has released a media statement apparently aimed at undermining United Future's income splitting policy. Income splitting is designed to enable parents to make their own choices about how they raise their children.

If one parent opts to stay at home to care for their own children then income splitting allows parents to be taxed as a couple instead of two individuals. In his media statement today Mr Chauvel says that in proposing this family-friendly policy Mr Dunne is out of touch with New Zealanders.

Given that half the households in Ohariu are two parent families some observers might say it is not Mr Dunne who is out of tune with the electorate.

Good Cents Makes good sense in Porirua

2010-07-02T23:08:00.000+12:00

An anti-debt programme called Good Cents is supported by Wesley Community Action in Porirua. The high level of debt in the local community is a key target of the group. During the boom years of 2006-07 the group was puzzled as to why despite full employment and a growing economy the demand at the foodbank remained high. It soon became apparent that high interest charges on loans were sucking cash out of the local economy. Together with Agape Budget service the groups aim to reduce the chronic levels of debt and the exploitation of the poor by moneylenders. Well done Good Cents!

Renewable electricity on rise - Brownlee

2010-07-02T22:50:00.000+12:00

The NZ Herald reported today on the growth of renewable energy use in New Zealand - Renewable electricity on rise. http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10656035&ref=rss

Growth rates expose underperforming states | The Australian

2010-06-23T10:08:00.000+12:00

Growth rates expose underperforming states The Australian - In this report the Australian has published a review of the various states and their economic growth rates. At first blush one would assume that the high growth rates are tied directly to the mining activity in Western Australia and Northern Territory. However, this review finds that other factors also play a role - including state government economic policies.

Mayoral hopefuls fire opening shots

2010-06-22T23:01:00.000+12:00

Mayoral hopefuls fire opening shots - NZ herald story regarding the Banks v Brown race for Mayor of Auckland. The signs are that this is turning into a dirty campaign - with a lot at stake. It is amde all the more competitive through the thinly veiled party political nature of the battle. Banks - the centre-right standard bearer versus Brown - the centre-left candidate. Super City v Stop the sale (of council owned commercial enterprises).

Labour slump further behind in polls

2010-06-22T22:38:00.000+12:00

Labour slump further behind in polls - a recent report from the NZ Herald - shows that Labour is suffering from recent credit card spending revelations and National is enjoying some uplift in popularity following a generally positive response to the Budget.

It is unusual for such a wide margin to continue this far beyond the general election.

Cities of the Future

2010-06-01T14:01:00.000+12:00

Cities – The Global Challenges

The Future Agenda programme has published a thoughtful paper on cities of the future.

"The big issues facing cities are clear: Think globalisation, immigration, jobs, social exclusion and sustainability: Given that global urbanisation is taking place at an unprecedented speed with a scale, diversity, complexity and level of connectivity that challenges all existing perceptions, questions regarding the size, speed of growth, shape and land use of cities have become increasingly complex and politicised. Although cities themselves have a remarkable ability to innovate, there are broad disconnects between urban change and urban policy. The priority, therefore, must be to identify ways in which policy makers can create a regulatory environment that provides a framework for sustainable forms of urban development.
Urban growth is being fuelled by new levels of mobility and migration of diverse populations within and across nations especially in China, Brazil and India. These rural-to-urban migrants are pulled by the tantalizing prospects of jobs and opportunity, driven by the harsh realities of rural life. Cities like Mumbai experience 42 people moving into the city per hour. Where do you house them and what infrastructure do you provide for them? Transport, electricity, sewers and water systems – these are technical issues that need to be addressed in a way that is environmentally smart.
Migration and in-migration has also created an urban underclass which is often allocated to specific areas of the city. Paris is a perfect example. The physical infrastructure, with the beauty and qualities that we all admire, has frozen. This means that all its growth (with increasing immigration from 1945 and onward) has created ghettoization. This kind of imbalance in social mobility must be addressed.
The changing nature of work will also impact on the physical form of cities. The global economy was born out of the power of trans-national corporations and global communications technologies. How does it affect the way we live? If we focus on the fact that power and communications capacities need to be produced, implemented and managed, it becomes clear that cities still have an important role to play but their layout and functionality may be different.
Even the most advanced firms need cleaners, lorry drivers, and secretaries. How must cities adapt to fit the needs of all? Also how do we adapt to the possibility that we are seeing an internationalised labour market for low wage manual and service workers? How do we adapt housing design and create neighbourhoods that will benefit local communities and encourage urban integration?
Technological innovation has shrunk the world reducing the cost of transmitting to virtually nothing. Internet users in developing countries could constitute more than half the world total within 5 years if trends persist. The reality of urban connectivity taken to its logical conclusion will create a network of interlinked cities connected, and soon to be even more connected, by modern rails and technology. Consider also the effects of mobility and transport systems on social cohesion and economic viability.
Lastly, any future urban model must of course be sustainable. If we are to make up for past failures, cities will have to produce more energy than they need, become net carbon absorbers, collect and process waste within city limits and collect and clean recycled water. All this should happen in parallel to the creation of wealth and the promotion of social wellbeing and individual health."

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Green Energy - a crunch issue for the 21st century

2010-06-01T13:55:00.000+12:00

The Future Agenda series on global issues includes some top quality thinking on crucial topics such as future energy supplies.

"The global energy system sits at the nexus of some of the deepest dilemmas of our times: prosperity versus poverty; globalization versus security; and growth versus the environment. Current energy trends are patently unsustainable — socially, environmentally, economically. That said, there is still plenty of oil and gas to be found and produced, most of it is in increasingly difficult places – whether that’s difficult geology, difficult environmental conditions or difficult politics.
Emissions of CO2 and other greenhouse gases are on an unsustainable pathway. To avoid “abrupt and irreversible” climate change we need a major decarbonization of the world’s energy system".Energy – The Global Challenge
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Open Policy debate a progressive step

2010-05-26T22:39:00.000+12:00

The Labour Party should be congratulated for its move towards promoting open policy development via its blog Red Alert. Open and transparent policies are the lifeblood of any democracy and help reinvigorate a political party. The greater the level of public participation and debate the more likely a policy will emerge with greater rigour at the end of the process.

RSA Animate - Drive

2010-05-25T17:53:00.000+12:00

Three Strikes Policy more expensive than first thought

2010-05-25T14:42:00.000+12:00

California Department of Corrections and Rehabilitation:

Inmates Sentenced Under the Three Strikes Law and a Small Number of Inmates Receiving Specialty Health Care Represent Significant Costs

HIGHLIGHTS

Our review of California's increasing prison cost as a proportion of the state budget and California Department of Corrections and Rehabilitation's (Corrections) operations revealed the following:

Inmates incarcerated under the three strikes law (striker inmates):
- Make up 25 percent of the inmate population as of April 2009.
- Receive sentences that are, on average, nine years longer-resulting in about $19.2 billion in additional costs over the duration of their incarceration.
- Include many individuals currently convicted for an offense that is not a strike, were convicted of committing multiple serious or violent offenses on the same day, and some that committed strikeable offenses as a juvenile.
Inmate health care costs are significant to the cost of housing inmates. In fiscal year 2007-08, $529 million was incurred for contracted services by specialty health care providers. Additionally:
- 30 percent of the inmates receiving such care cost more than $427 million.
- The costs for the remaining 70 percent averaged just over $1,000 per inmate.
- The costs for those inmates who died during the last quarter ranged from $150 for one inmate to more than $1 million for anotherCalifornia Corrections Report

Getting to the core of local government reform

2010-05-24T17:16:00.000+12:00

I have just read the Business NZ submission on the Local Government Act 2002 Amendment Bill. It contains an array of innovative thinking some of which I agree with others which I think will advance no further than the Select Committee filing cabinet. The submission does make some important points in regard to the prevalent pattern among local councils to increase rates by significantly more than the inflation rate. While there may be some times when such increases are justified - they should not be the norm. The consistency of such increases in recent years points to a problem with operational expenditure control by councils.

The submission suggests that local authorities' core business should be funding and - in justifiable circumstances - the provision of local public goods that cannot better be provided by firms, households and non-profit organisations, plus the administration of appropriate regulations. While I would be reluctant to treat such a proposal as requiring overly religious adherence it may be a useful place to start in commencing a thorough review of local government expenditures. The case for funding activities beyond the core than then be made on its merits under the watchful eye of ratepayers and their watchdogs - an informed media and blogosphere.

The submission also calls into question the potential for duplication and ill-informed decisions when local government attempts to enact redistributive policies on top of similar policies enacted by central government. Clearly with all the data held by IRD and WINZ central government has access to more comprehensive data on incomes and wealth distribution throughout NZ. While all levels of government should deal with citizens justly perhaps there is a case for ensuring that well-intentioned policies at local government level are actually achieving the outcomes they were intended to deliver.

We cannot go on borrowing our way into a hole

2010-05-24T16:38:00.001+12:00

New Zealand has had three decades of current account deficits. These deficits have piled up since Britain entered the EU in 1973. As a nation we have spent more on imported items than we earn from exports. We have borrowed to make up the difference.

Selling assets for cash has also been used as a short term palliative by the NZ government in the 1980s. But this tends to mean that we end up having assets in NZ owned by overseas investors. The dividend outpayments on those investments then become another overseas cost we have to meet and is usually added to the country's overseas debt. The culprits have tended to be NZ households and the private sector. Asset sales are not a long term answer to resolving our indebtedness problem. With the right controls and given sufficient domestic capital savings they may be a useful vehicle to grow local shareholding ownership.

Foreign investment can certainly play a positive role in a country's economy - especially when local residents do not or cannot afford to invest. But if we end up with most of the economy owned offshore then we would need to call into question the meaning of national sovereignty in such a context. To turn it around we need to steadily build a much larger pool of domestic savings here in NZ. Enhancing full participation in Kiwisaver would help towards an effort to re-New Zealandise the economy by having local families and companies buy shares in those organisations that own the productive assets of our economy. I'm not a great fan of tariffs and import substitution because it tends to hurt low income consumers and it hides inefficient companies from more efficient competitors. A solution would be to do more to promote high value premium exports to markets around the world. Increased focus on technology, innovation and improved productivity are all part of the solution to this major structural challenge.

A budget for the times

2010-05-21T16:19:00.000+12:00

Finance Minister Bill English announced his second budget yesterday. The budget provides for personal tax cuts for all and a reduction in the company tax rate. It also attempts to slow down the rate of growth in government spending. Health and Education still received significant new spending above where they were last year but that didn't stop some critics somehow construing these increases as "funding cuts". Others have stoked up the politics of envy by pointing out that much of the tax gains will go to those on higher incomes. But what they don't say is that the top 20% of earners pay 70% of the tax take - which is also unfair and short-sighted. The budget also recognises that the truly rich manage their assets so as to minimise tax exposure anyway. The people who get savaged by high income tax rates are the middle class and the working poor. Rather than resort to class war analogies critics would be better advised to look to the longer term economic outcomes - as well as social cohesion outcomes - of these changes.

The important thing about this budget is that it begins to set a new policy direction for the long term. The new policy settings will provide better rewards for working, earning and saving. It will, through the GST increase to 15%, encourage kiwis to save any spare money - rather than spend it. By tightening up the rules around LAQCs and depreciation the government has also nudged NZers away from putting our savings into speculative property and towards other more productive investments. Changes to Kiwisaver contributions are also helpful - although could have gone further in boosting NZ's domestic savings rates. With the economy poised to grow over the next 12 months it is a steady budget appropriate for the times.

Liberal Democrats surge in polls

2010-04-26T21:51:00.000+12:00

The Guardian reported that the centrist Liberal Democrats have surged to a strong 21% rating in the latest opinion poll. LibDem Leader, Nick Clegg's very good TV leaders debate performance helped his party to a surge in poll support. The Conservative Party is still leading in most polls and the Labour government is struggling to regain support following the entry into the Iraq War and the impact of the economic crisis. Voters clearly want a change but don't yet trust the Conservatives with a parliamentary majority.

Solzhenitsyn - A Prophet for our time

2010-04-18T14:42:00.000+12:00

John Couretas has published a tribute to the late Alexander Solzhenitsyn in Solzhenitsyn and His Critics - The Acton Institute. The critique sounds alarm bells for those who wonder about the bland global culture of shallow western consumerism and reality tv shows that our children are growing up in. We are already seeing a reaction towards the manifestation of this gluttonous global marketplace. The rise of militant Islam and various ethnic nationalisms draw strength from what they perceive as a decaying West that seems to have forgotten its history and lost its sense of purpose.

Churton Park To Decide How $1.6million community facility funds should be invested

2010-04-13T20:39:00.000+12:00

Cr Best has issued a media statement clarifying the position in relation to Churton Park community facilities. The statement can be found at: News - Churton Park Community Consultation Clarified. It did not make reference to the option of a multi-purpose community centre owned and operated by the Council. Apart from that, however, it did set out the position more clearly than previous Council utterances.

According to Cr Best "Last year we sold some reserve land for the new school in Churton Park and received $812,500 from that sale, and there is a proposal in the 2010/11 draft Annual Plan to use those funds for indoor or outdoor recreation and/or community facilities," Cr Best says.

"Over the past 12 months we have been developing a city-wide Community Facilities Policy, which is currently in draft form and out for consultation, within it we have an additional sum of $845,000 to develop community space in Churton Park in 2012/13. So to clarify, we are consulting on spending $845,000 in Churton Park for community facilities and an additional $812,500 for community and/or recreation facilities for Churton Park which may be used for additional facilities at the new school, additional community space or further develop the existing parks and reserves." says Cr Best.

However, Cr Best did not indicate anything about the history of the land or the development contributions that were given to the council in the form of the land. Those contributions are usually used for facilities for the whole community.

Recently the Council invested almost $3million of ratepayers money into the state of the art Newlands Community Centre - pictured above. Churton Park, say Council officials, does not have the population to justify getting $3million. Having said that $1.6million + some additional fundraising could get a modest Community Centre for Churton Park - if that was the wish of residents. Of course that will not be possible if the funding is divided into two or three lots. And that is the decision residents must make.

The Churton Park community now has an opportunity to have its say through the consultation process which includes a public meeting - but not one in Churton Park. The meeting will be held at the Johnsonville Library on 21 April at 7.00pm and community members can also have their say by making a submission on the draft Community Facilities Policy and Implementation Plan or through the draft Annual Plan. More information can be found at www.wcc.govt.nz

If residents choose not to have their say then they should not complain later if they miss out on the sort of facilities they would like to see for the next 20-30 years in the community.

Time for an Innovation Council

2010-04-12T16:39:00.000+12:00

NZ Institute op ed piece proposes that the Prime Minister be the Prime Innovator. They make a very good case. Other countries - including our successful Aussie cousins - provide leadership from the top to priority areas such as innovation. It's time now to give some real focus and resource to R&D and to innovation in those export sectors where NZ has a comparative advantage.

Quality of life tops in Wellington | Stuff.co.nz

2010-04-10T10:14:00.000+12:00

Quality of life tops in Wellington Stuff.co.nz No surprises here I suppose.

Global action on climate change overdue

2010-04-06T11:30:00.000+12:00

Climate change is real. We're seeing the effects all around us – polar ice melting, sea level rising and extreme weather events. If we want to reduce the impact of climate change and have reliable energy sources, we must make changes, at a government and individual level. Solutions to climate change and energy crises already exist - clean energy, energy efficiency and new environmentally sound technologies.

New Zealand is reliant on overseas markets and their ability to buy our export produce. The thing about climate change is that we really are all in it together. There is something everyone of us can do to help reduce carbon emissions and promote sustainable environmental practices. Kerbside recycline, increased research to deliver innovative no or lower carbon solutions.

Greenpeace New Zealand’s work to stop climate change and provide New Zealand with reliable energy includes:

Improving and strengthening government action, both nationally and internationally;
Promoting clean, renewable energy;
And, stopping the use of dirty energy.

Greenpeace has a website which is worth a look. In addition to the vital issue of climate change Greenpeace is also active on several other issues of importance to the environment: nuclear, GE, and whaling.

Rev. Sirico: Does Social Justice Require Socialism? « Acton Institute PowerBlog

2010-04-03T23:18:00.000+13:00

Rev. Sirico: Does Social Justice Require Socialism? « Acton Institute PowerBlog published this interesting discussion on social justice.

ANZ warns of crisis aftershocks

2010-03-31T17:44:00.000+13:00

Stuff News featured a story this week ANZ warns of crisis aftershocks in which ANZ boss Mike Smith says that the global economy is likely to continue to suffer "aftershocks" following the 2008 crash of Lehman Bros. For a small debt-laden economy like New Zealand this is not good news.

In the US and Europe economists and policy makers are still trying to figure out how to get back the huge sums of money they loaned out to big banks and finance companies to help shore up a creaky finance sector in the midst of the 2008 financial collapse. At least in NZ we avoided the worst of taxpayer bailouts of finance houses.

Meanwhile sharemarkets here and overseas remain subdued. Unemployment remains at higher than usual levels and the economy remains in a fragile condition. The first glimmers of economic growth are starting to show but there is still room for changes that "make the NZ Inc boat go faster".

The World's Biggest Debtor Nations - CNBC

2010-03-29T17:47:00.000+13:00

The World's Biggest Debtor Nations - CNBC
So much for the Irish miracle. Ireland - the growth tiger of the 1980s and 90s is now at risk of becoming Europe's pauper. Coming in with an external debt of around $2.39 trillion (2009 Q3) and total 2009 GDP (est): $177.3 billion Ireland's external debt (as % of GDP): = 1,352% Gross external debt. It is now the world's biggest debtor nation in terms of external debt to GDP.

New Zealand (even with its large household debt levels does not feature in the top 20 biggest debtor nations). The efforts of Messrs Birch and Cullen in salting away some surpluses and repaying government debt have all help reduce New Zealand's level of gross external debt.

Time for a change of direction in economic policy

2010-03-28T19:06:00.000+13:00

This afternoon I attended a fascinating and thoughtful presentation from four highly regarded leaders: Rod Oram, John Walley, Selwyn Pellett and economist Ganesh Nana. At long last we have serious commentators sound the warning bell regarding New Zealand's level of debt per capita. There is something fundamentally wrong with our economy - and this has been the case since the 1950s. The BERL economist included one key slide in his presentation which I have linked to here .

The full set of presentations are worth a look through. They show the consequences of an overvalued New Zealand dollar - too easy imports and too hard exports. The commentators provided a powerful critique of monetarist economic policies that have undermined New Zealand's hi-value export performance, employment, productivity and innovation.

Given the extent of New Zealand's indebtedness there is a dire need to debate alternative policy prescriptions to figure out if there is a better way to improve New Zealand's plight for the next generation of kiwis. Failure to grasp this nettle could see NZ subject to another firesale of its assets to overseas investors and the exodus of many of our children and grandchildren.

Economy is simply the greek word for housekeeping

2010-03-27T22:53:00.000+13:00

‘Economy’ is simply the Greek word for ‘housekeeping’. Remembering this is a useful way of getting things in proportion, so that we don’t lose sight of the fact that economics is primarily about the decisions we make so as to create a habitat that we can actually live in. We are still haunted by the dogma that the economic world, ‘economic realities’, economic motivations and so on belong in a completely different frame of reference from the sort of human decisions we usually make and from considerations of how we build a place to live. And to speak about building a place to live, a habitat, reminds us too that we look for an environment that is stable, ‘sustainable’ in the popular jargon, a home that we can reasonably expect will be an asset for the next generation.

Economics understood in abstraction from all this is not just an academic error: it actually dismantles the walls of the home. Appealing to the market as an independent authority, unconnected with human decisions about ‘housekeeping’, has meant in many contexts over the last few decades a ruinous legacy for heavily indebted countries, large-scale and costly social disruption even in developed economies; and, most recently, the extraordinary phenomena of a financial trading world in which the marketing of toxic debt became the driver of money-making – until the bluffs were all called at the same time.

If we are not to be caught indefinitely in a trap we have designed for ourselves, we have to ask what an economy would look like if it were genuinely focused on making and sustaining a home – a social environment that offered security for citizens, including those who could not contribute in obvious ways to productive and profit-making business, an environment in which we felt free to forego the tempting fantasies of unlimited growth in exchange for the knowledge that we could hand on to our children and grandchildren a world, a social and material nexus of relations that would go on nourishing proper three-dimensional human beings – people whose family bonds, imaginative lives and capacity for mutual understanding and sympathy were regarded as every bit as important as their material prosperity.

Practically speaking, this means that both at the individual and the national level we have to question what we mean by ‘growth’. The ability to produce more and more consumer goods (not to mention financial products) is in itself an entirely mechanical measure of wealth. It sets up the vicious cycle in which it is necessary all the time to create new demand for goods and thus new demands on a limited material environment for energy sources and raw materials. By the hectic inflation of demand it creates personal anxiety and rivalry. By systematically depleting the resources of the planet, it systematically destroys the basis for long-term well-being. In a nutshell, it is investing in the wrong things.

‘In reality’, writes Kenny Tang, a leading Asian expert in sustainable development, ‘there are only two sources of wealth in the world today: the wealth that flows from our use of the Earth’s resources and ecosystems, all powered by incoming solar radiation (our natural capital); and the wealth that flows from the use of our hands, brains and spirits (our human capital)’ (CRISISnomics, Credit and Climate, p.114). It is a sharp reminder that exactly the same threat lies ahead in both the ecological context and the human – the exhaustion of resources, the depletion of natural capital and the shrinking of human capital by the abuse of brain and spirit that results from social fragmentation and from personal stress and lostness in inhuman patterns of working.

To quote another very recent discussion, Tim Jackson, writing in the Sustainable Development Commission’s excellent report, Prosperity Without Growth, underlines the need for what he calls a new ‘ecology’ of investment, in which the criterion of short-term returns is not seen as the sole deciding factor and we learn how to invest in infrastructure and public goods and new low-carbon technologies. ‘This will mean’, he writes (p.142), ‘revisiting the concepts of profitability and productivity and putting them to better service in pursuit of long-term social goals’. Along with this – a point flagged both by Jackson and by Zac Goldsmith in yet another provocative new essay, The Constant Economy: How to Create a Stable Society – we have to ask about ‘green taxes’ (including ‘green’ tax breaks) that will check environmental irresponsibility and build up resources to address the ecological crises that menace us. The Contraction and Convergence proposals are among the best-known and most structurally simple of these, and it would be a major step to hear some endorsement of them from a body such as this. It is of course connected with other proposals about currency exchange taxation – the ‘Tobin tax’ idea: the point is that we should be thinking about taxation neither as an unreasonable burden on enterprise nor as a simple mechanism of redistribution but as a potentially sophisticated tool for long-term ‘economy’ – housekeeping. Taxation builds a habitat – already, quite properly, through state welfare provision, but potentially in other less familiar ways.

Goldsmith observes that ‘the overwhelming bias in the current tax system is for indiscriminate economic growth, with among other things vast tax breaks on fossil fuels’; and, challenging the objection that tax ought not to be an instrument of change, he insists that taxation is never neutral (pp.29-30). Bias is always there, and so we need to decide where we want the bias to be. Whether we are thinking about investment or taxation, the important thing is to keep the focus on our ability to decide: the worst thing that can happen is that we give way to a fatalistic assumption that our choices don’t matter. One of the paradoxes in the whole situation (and I’ll touch on this again later) is that our current economic ethos both tells us that the resources for material growth are infinite –and thus that we shouldn’t bother too much about the limits of living on a small planet – and at the same time paralyses us when it comes to thinking about actions that might cross the boundaries of what looks possible. It both pretends that we have unlimited possibilities and discourages us from discovering real potential for change.

But this is where things get a little more complex and interesting. To decide what sort of change we want, we need a vigorous sense of what a human life well-lived looks like. We need to be able to say what kind of human beings we hope to be ourselves and to encourage our children to be. A few minutes ago, I jumped the gun a bit by slipping in a definition of ‘three-dimensional’ humanity that centred on family and imagination and mutual sympathy. Let me go back to this for a moment and spell out what I had in mind and also where these assumptions come from.

Human beings all begin their lives in a state of dependence. They need to learn how to speak, how to trust, how to negotiate a world that isn’t always friendly. They need an environment in which the background is secure enough for them to take the necessary risks of learning – where they know that there are some relationships that don’t depend on getting things right, but are just unconditional. The human family as a personal not just a biological unit is the indispensable foundation for all this. And a culture, especially a working culture, that consistently undermines the family is going to be one that leaves everyone more vulnerable and thus more fearful and defensive – potentially violent in some circumstances, or turning the violence inwards in depression in other circumstances. In the last couple of years alone, research has proliferated on the long-term damage done by the absence of emotional security in early childhood and the need for a child’s personal growth to be anchored in the presence of stable adult relationships. The Children’s Society Good Childhood document laid all this out with some force back in February and there is more material being published this autumn in the same area. An atmosphere of anxious and driven adult lives, a casual attitude to adult relationships, and the ways in which some employers continue to reward family-hostile patterns of working will all continue to create more confused, emotionally vulnerable or deprived young people. If we’re looking for new criteria for economic decisions, we might start here and ask about the impact of any such decision on family life and the welfare of the young.

I also mentioned people’s imaginative lives. We are not only dependent creatures, we are also beings who take in more than we can easily process from the world around; we know more than we realise, and that helps us to become self-questioning persons, who are always aware that things could be different. We learn this as children through fantasy and play, we keep it alive as adults through all sorts of ‘unproductive’ activity, from sport to poetry to cookery or dancing or mathematical physics. It is the extra things that make us human; simply meeting what we think are our material needs, making a living, is not uniquely human, just a more complicated version of ants in the anthill. One of the greatest legacies of the British labour movement has been a real commitment to this – to the enlarging of minds and feelings (anyone who’s been able to see that wonderful play, The Pitmen Painters, will know what I mean). So the question is how far economic decisions help or hinder a world in which that space for thinking things might be different is kept open.

And this is actually very closely connected with my third item, understanding and sympathy for others. If you live in a world where everything encourages you to struggle for your own individual interest and success, you are being encouraged to ignore the reality of other points of view – ultimately, to ignore the cost or the pain of others. The result may be a world where people are very articulate about their own feelings and pretty illiterate about how they impact on or appear to others – a world of which ‘reality television’ gives us some alarming glimpses. An economic climate based on nothing but calculations of self-interest, sometimes fed by an amazingly distorted version of Darwinism, doesn’t build a habitat for human beings; at best it builds a sort of fortified boxroom for paranoiacs (with full electronic services, of course). What is rather encouraging is how few people, faced with this, seem actually to want a society composed of people like this. And, despite the alarms occasionally sounded about younger people’s fanatical networking through electronic media, my sense is that this often goes in practice with a genuine desire for friendship and isn’t in competition with face-to-face contact. We have, to some extent anyway, looked into the abyss where individualism is concerned and we know that it won’t do. This is a moment when every possible agency in civil society needs to reinforce its commitment to a world where thoughtful empathy is a normal aspect of the mature man or woman. And of course without that, there will be no imaginative life, no thinking what might be different.

Now I don’t imagine that what I’ve sketched out will sound very controversial to this audience; but I do want to underline the fact that it needs defending – and that this is a good and receptive time to defend it. I said that I’d also reflect for a moment on where such a vision came from, because I think that we need to go beyond just taking it for granted and believing that everyone agrees with it and understands what it involves. For myself, the roots are – you won’t be surprised to hear – deep in religious vision and commitment; and whether or not you share that, it is important to grasp something of what that commitment has contributed to what we take for granted.

From this point of view, the importance of the family isn’t a sentimental idealising of domestic life or a myth about patriarchy; it is about understanding that you grow in emotional intelligence and maturity because of the presence of a reality that is unconditionally faithful or dependable. in religious terms the unconditionality of family love is a faint mirror of the unconditional commitment of God to be there for us. Similarly, the importance of imaginative life is not a vague belief that we should all have our creative side encouraged but comes out of the notion that the world we live in is rooted in an infinite life, whose dimensions we shall never get hold of – so that all the reality we encounter is more than it seems. As for the essential character of human mutuality, this connects for me specifically with the Christian belief that we are all dependent on one another’s gifts, to the extent that if someone else is damaged or frustrated, offended or oppressed, everyone suffers, everyone’s humanity is diminished.

I’m not suggesting that without Christian doctrine you can’t have the sort of commitments I’ve described as essential for a three-dimensional humanity; that is obviously not true, if you simply look around you. My point is that, now more than ever, we need to be able in the political and economic context to spell out with a fair degree of clarity what our commitments are, what kind of human character we want to see. Politics left to managers and economics left to brokers add up to a recipe for social and environmental chaos. We are all a bit shy, understandably so, of making too much of moral commitment in public discourse; we are wary of high-sounding hypocrisy and conscious of the unavoidable plurality of convictions that will exist in a modern society. Yet the truth is that the economic and social order isn’t a self-contained affair, separate from actual human decisions about what is good and desirable. Certain kinds of political and economic decisions have the effect of threatening the possibilities for full humanity in the sense in which I’ve sketched it. To resist, we need vision; and whether we are individually religious or not, we need all the resources available for strengthening and deepening that vision. Which is why the visible presence of religious people of diverse faiths in the arena of public debate is not a menacing move towards religious tyranny, the imposition of belief systems on an unwilling public, but the opening up of that arena to the best possible range of perspectives to help us push back against barbarism, injustice and the erosion of the human spirit.

Earlier I mentioned the work of Kenny Tang. At the end of his wide-ranging recent book (pp.137-60), he sketches four scenarios for the second half of the twenty first century, varying from a ‘golden age’ picture in which economic stability offers a secure background for sustaining the planet’s assets, through a model in which good intentions for sustainable and ethical behaviour in respect of the environment are undermined by boom and bust cycles in the economy, a more serious model in which patterns of consumption do not basically change, so that we face ‘resource wars’ over our finite supplies, and finally a nightmare scenario of a planet that has become a jigsaw of ‘protectionist nation-states’, where each state both refuses to challenge its aspirations for material growth and helps to inflate commodity prices worldwide by protectionist strategies.

What is most sobering about Tang’s fourth model is that so much of it reads like a description of what is already happening in many quarters and what some of the rhetoric of the wealthy world seems to take for granted. And what his analysis points up is a message that can be derived from any of the economic forecasters I have quoted: without a stable economy, the rest is idle dreaming. And a stable economy depends on our willingness to question the imperatives of unchecked growth – which in turn is a moral and cultural matter. The energy for resistance has to come from the sort of stubborn moral and cultural commitment to humane virtue that I have been speaking about.

I realise that the word ‘virtue’ is hard for many to take seriously. But it’s high time we reclaimed it. We have no other way of talking about the solid qualities of human behaviour that make us more than reactive and self-protective – the qualities of courage, intelligent and generous foresight, self-critical awareness and concern for balanced universal welfare which, under other names, have been part of the vocabulary of European ethics for two and half thousand years: fortitude, prudence, temperance and justice. In the Christian world, of course, they have been supplemented by, and grounded in, the virtues of faith, hope and love that, in their full meaning, are bound up with relation to God. But there has always been a recognition that the four pillars of ordinary human virtue were not a matter of special revelation but the raw materials for any kind of co-operative and just society. Without courage and careful good sense, the capacity to put your own desires into perspective and the concern that all should share in what is recognised as good and lifegiving, there is no stable world, no home to live in – no house to keep.

I said earlier that the British labour movement had an honourable record in its commitment to humane values, to humane relationships and intelligence and imagination. It still has today an immense capacity to bring these considerations back into public and political visibility – and the fact that this conference is addressing the question of a ‘progressive future’ is significant. I would urge you, then, to pick up what is still alive in that legacy, to revive the passion for humane social existence; to reflect on what human character is needed for stability and justice to prevail; and to resist the barbarising and dehumanising of economic life which jeopardises natural and human capital alike. Sermons are meant to have three points: there are mine. Revive, reflect, resist. Your history suggests it can be done; so do it.

© Rowan Williams 2009

Archbishop Rowen Williams, 16/11/2009

Human Well-Being and Economic Decision-Making

Keynote Address at TUC 'Beyond Crisis' Conference

Congress House, London

Monday 16th November 2009

http://www.thecsm.org.uk/Articles/172143/Christian_Socialist_Movement/Articles/The_Economy/Human_Well_Being.aspx

Chinese eye dairy assets

2010-03-26T14:28:00.000+13:00

New Zealand's farm land is being bought up by Chinese interests. Most other countries have stronger controls on foreign investment and ownership of strategic assets. If New Zealand is to retain any semblance of national sovereignty then it needs to change direction and to reassert kiwi ownership of New Zealand land and mineral wealth. Developing a larger pool of domestic capital and reducing our overseas debt levels will be key to this.

Council to invest $1.6million in Churton Park community facilities - maybe

2010-03-23T14:35:00.000+13:00

Wellington City Council is to invest $1.6million into the Churton Park community - one of the most underserved communities in terms of community facilities. But will the investment actually make it through to the community?

In December 2009 the City Council received submissions from the Churton Park Community Association, considered community facilities investment in Wellington and agreed in principle to :
" development of a partnership to deliver facilities in Churton Park - $0.85m; and upgrade of the community facilities."

The news about $850,000 (actually $845,000 according to Council official Jenny Rains) to be allocated for Churton Park community facilities will be warmly welcomed by residents who have been waiting a long time for such investment.

In addition to earmarking this funding for the 2012/13 year the Council also had land at Amesbury Drive which, I'm advised by another council official, it received in lieu of development contributions from the developer. These contributions are meant for developing community infrastructure. The land was recently sold and consequently the Council now has $812,500 in cash. Together with the $845,000 earmarked by the Council for community facilities in the 2012/13 plan Churton Park could receive an investment of around $1.6million in community facilities.

However, once this money is spent "the forgotten suburb" is unlikely to see much further investment in the short to medium term.

Residents will need to speak up - and soon - if they want, for example, a multi-purpose community centre such as the one in Newlands - although probably not on quite such a grand scale. Should the money be spent on playgrounds in the area? Should it be spent on "extras" at the new school planned for Amesbury Drive? Or should it be invested in a multipurpose Community Centre accessable during days - as well as evenings and weekdays - as well as weekends? - or something else?

The Council, on request from the Community Association, has agreed to "consult" with the community. However, the nature of this "consultation" is apparently to be discussions with "potential partners" - the Ministry of Education, the Boards of Trustees, discussions with the private developer and a quick phone poll of 300 residents. Oh and some focus groups for some hand-picked residents.

In my view one concern with schools hosting "community facilities" (especially if there are no other community halls - is that most days of the week, and most hours of each day school property is not available for community use. Community facilities should be available first and foremost to the community - unless the Ministry of Education are funding them. .

It should be up to residents to decide what they want the $1.6million of their rates &development contribution money invested. This means that when the Council does its community consultation it should hold a public meeting to allow residents to engage with Council directly, it should also provide a comprehensive list of potential options with associated price tag estimates. But residents need to understand that this is their one shot at getting some good facilities for their community. It's important to get this one right.

Churton Park - the forgotten suburb has been remembered

2010-03-18T22:02:00.000+13:00

The Dominion Post previously reported the plight of Churton Park - "the suburb progress forgot". Recently the suburb has received more attention from central and local government. Given the substantial amount of tax and rates revenue collected from the suburb the only surprising thing is how long it took to get noticed.

Today the suburb has:

a new primary school under development at Amesbury Drive;
a new neighbourhood Shopping Centre planned for 2011 on the corner of Lakewood Avenue and Westchester Drive;
a new roading extension at Westchester Drive - expected to be started next year and connecting to SH1;
and the possibility of new multi-purpose community facilities of some description.

At last it seems there is a real prospect of good solid infrastructure being put in place for this growing suburb.

Council invests $2.75million in new Newlands Community Centre building

2010-03-18T20:20:00.000+13:00

Wellington City Council has invested $2.75million of ratepayers money in building, operating and owning a brand new Community centre building in Newlands. The project is in Wellington City Council's description of the newlands Community centre.

The Newlands Paparangi Progressive Association should be congratulated on achieving a great outcome for their community. They overcame the Council's apparent reluctance to own buildings. The new centre acts as a hub for the local community and is in high demand by a variety of community groups. It has become a focal point for building community connectedness and enhancing social capital.

There are six separate spaces in the new centre: a drop-in space/cyber library near the entrance where people can call in, access the Internet, read the newspaper, pick up and drop off library books, sit in comfortable chairs and chat. The centre expects to be used for holiday programmes during school holidays. Small groups can book the space for low-key activities. There is also a performance area which has a stage, retractable tiered seating. There is also space for tai chi, yoga and keep fit classes.

Another space is designed for youth but available to all - it looks out to a half court for activities and social occassions. There are also 3 rooms upstairs - small, medium & large size - to cover the needs of a variety of community groups. All rooms are carpeted, heated and furnished. There is also a reception area and of course a well-equipped kitchen and toilets - as well as dedicated space for the new Toy Library and food bank. there is access for people with disabilities to the first floor via a lift. Photos of this impressive building below. It is situated close to the Newlands shopping centre and so is accessable to local residents.

TSO reform is good news for rural telecommunications users

2010-03-18T10:45:00.000+13:00

According to Victoria University economist Bronwyn Howell changes being made to New Zealand's Telecommunications Service Obligations (TSO) Deed could ultimately kill Telecom. Did she mention Telecom's sponsorship of the Institute at Vic Uni for which she has done work in the past? If Telecom's existence is really reliant on ill-gotten gains from the hated TSO levy then the company is in weaker shape than first thought.

Telecom faces no competition for providing TSO services - yet the industry is currently forced to pay it $60-$70 million of dollars each year to allegedly provide such services. Worse still no one checks to see that Telecom actually invests that money into rural NZ. In the meantime the TSO levy continues to act as a penalty for Telecom's competitors as well as a guaranteed income stream for Telecom. Most international commentators cannot comprehend why Telecom should have been given this privileged position for the last nine years. Now at last the government is moving to tackle this roadblock to competition and new investment in rural telecommunications. Well done Steven Joyce. This week has been a good week for rural telecommunications users and for competition.

Disclaimer: the writer is employed by Vodafone NZ. Views expressed here are the author's own views.

Increased investment in science needed

2010-03-10T13:38:00.000+13:00

BBC news reports that the British opposition party is proposing increased government investment in science - as a means of boosting productivity and economic growth. Might be worth governments in new Zealand considering?

Executive quits amid Telecom XT fiasco | Stuff.co.nz

2010-02-23T11:25:00.000+13:00

Executive quits amid Telecom XT fiasco Stuff.co.nz
Stuff news report out re Telecom exec resignation.

The Pope versus climate change deniers

2010-02-21T08:38:00.000+13:00

A Sojourners Report highlights the recent alacrity with which climate change deniers greeted the snowstorms that struck North America in recent weeks.

Councils to be given an incentive to meet deadlines

2010-02-19T23:15:00.000+13:00

Colin Espiner reports that councils which are slow in processing consent applications will be given an incentive to respond to customers in a more timely manner. Late processing will soon incur a fine if Nick Smith has his way. This is a fine idea and should help make councils more responsive to applicants who know only too well that when it comes to renovations and construction projects time is money.

Council proposes restrictions on suburban pokie machines

2010-02-19T22:56:00.000+13:00

The Wellington City Council is responding to concerns about gambling addiction by proposing to reduce the number of pokie machines able to be located in Wellington suburbs. Currently there are no restrictions in the central city. Gambling addiction is a blight on many low income families. This is yet another positive move by Wellington City Council.

Liquor Ban Proposed in Wellington

2010-02-19T22:51:00.000+13:00

The Wellington City Council has responded to concerns of residents in the suburb of Newtown. Local residents were fed up with people leaving broken bottles, urinating on their properties and drinking during the daytime on footpaths. The Council was advised by Police that it would be impractical to ban liquor from the streets in just one suburb. Consequently the Council is now proposing to ban open alcohol containers in public places such as streets and parks throughout the city. This is a positive move by the Council. there are plentyof places for people to drink - restaurants, bars and their own homes - to name just three. Well done Wellington City Council - bring on the liquor ban asap.

Vouchers - nice in theory but what about the reality?

2010-02-17T10:45:00.000+13:00

The Dom Post today reported that National, ACT and Maori Parties had launched a new proposal for what amounts to school vouchers for the top 5% and the bottom 20% of school students. The scheme is apparently designed to enable parents of these students to utilise other schools or "providers" where it will help their offspring achieve better learning outcomes.

I don't think anyone is opposed to improving learning outcomes. Also there are some of us who, as parents, are sometimes deeply perplexed at the poor performance of some teachers and the powerlessness parents have in the face of the education bureaucracy. However, this new scheme raises some real questions that need to be addressed. For example what is the likelihood that parents of the bottom 20% of underperforming children will actually be able or willing to undertake the transport arrangements, and change arrangements to enable their children to move to another school for part of the day? Do they have the money or workplace flexibility to enable that for instance? If not - then doesn't it raise questions as to whether the real beneficiaruies of the scheme will be the top 5% who are likely to be able to afford to put alternative arrangements in place anyway?

Another question I have about vouchers in principle is that the nature of them tend to shift education towards a system based on market power - rather than educational needs. In that context won't it simply empower those who can afford to top up their vouchers with cash payments or school donations? A high quality public education system has long been part of the kiwi dream. While it may not be perfect are vouchers really the solution to the long tail of educational underperformance? I'm not convinced.

Foreshore debate all about big bucks - Best of Political Analysis - NZ Herald News

2010-02-15T10:16:00.000+13:00

Fran O'Sullivan: Foreshore debate all about big bucks - Best of Political Analysis - NZ Herald News Some interesting background to the foreshore and seabed issue in Fran O'Sullivan's report. Defintely worth a read.

Zimbabwe govt continues human rights breaches

2010-02-13T23:56:00.000+13:00

Amnesty International reports that human rights continue to be breached in Zimbabwe.

GST increase not a deal breaker

2010-02-13T23:31:00.000+13:00

http://www.stuff.co.nz/national/politics/3323434/GST-rise-not-deal-breaker-for-Maori-Party

Stuff news reports that the Maori Party has now decided that the Government's proposal to increase GST is not a deal-breaker afterall. That is a sensible decision. The Maori Party has a key position of influence at the moment. If it can decide on a few priority areas this term then "sell" them to its supporters at the 2011 election it has every prospect of retaining those Maori electorates it already holds. One thing is certain creative policy solutions are going to be required in health, education and welfare to empower iwi organisations and to boost the Maori renaissance in Aotearoa New Zealand.

Tax reform is a critical part of growing the NZ economy so that all groups can share a bigger cake. GST, changes to property tax arrangements and income tax reductions are all part of the reform programme necessary to raise New Zealand's economic performance, to create jobs and raise living standards for low income families.

Parents have a right to know how there children are doing

2010-02-13T22:52:00.000+13:00

Consider the state of numeracy and literacy, as measured in school leaver statistics published by the Ministry of Education earlier this month for the 2008 year: nearly a fifth failed to achieve even NCEA Level One or above. Is that good enough? If one major purpose of the national standards is to identify pupils who are falling behind and provide help to schools to ensure they improve, what sense is there in resisting it?

If the main issue is trials and phasing in periods then perhaps a delayed introduction is worth considering. However if the basis for the objection by teachers unions is that parents should not be able to get access to information on how students are going then centrists will rightly support national standards.

Labour struggling to get candidates this early

2010-02-05T14:57:00.000+13:00

Brian Rudman in the NZ herald has published a report highlighting some of the challenges Labour faces in attracting new candidates to its banner.

Life inside the Taliban - BBC Report

2010-02-05T14:36:00.000+13:00

BBC Reports that in Pakistan an account of life with the Taliban has emerged from a 13-year-old girl called Meena, who says her own family tried to turn her into a suicide bomber.
There is no independent confirmation of her account but police say they believe she is telling the truth, and her information could be valuable.

Obama proposes more regulation of US banks

2010-01-22T14:37:00.000+13:00

BBC Report today that President Obama is planning new regulations of the US banking sector.
US President Barack Obama has proposed significant new curbs on the activities of banks to try to prevent future financial crises. The plans - the most far-reaching yet -include limits to the size of banks and restrictions on riskier trading.

While the greed of certain fringe financiers may have got the world into the financial mess it found itself in last year. It is by no means clear that ongoing extension of state controls in the solution. Arguably if those companies that got themselves into difficulty had been allowed to go under the market would be now have cleared out the companies that acted unwisely with depositers funds.

It's not just the Taliban holding back Afghanistan

2010-01-20T10:56:00.000+13:00

BBC Report today unveils the huge scale of bribery going on in Afghanistan. In fact it equals almost a quarter of the nation's GDP! No country, especially a wartorn one, can hope to build sustainable economic development with that scale of corruption. A commitment to honest dealing is a cornerstone of a successful market economy. Without it history shows us that fair dealing will be imposed - either through socialist intervention or through fundamentalist authoritarianism. If the western nations hope to see a semblance of market growth and the first shoots of democratic institutions then they will need to look more broadly than just military, or material aid.

UK debt a concern to lenders

2010-01-19T14:03:00.000+13:00

BBC Report that investment analysts are increasingly worried that the UK government does not appear to have a plan to reduce the UK's ballooning level of debt. Although the UK indebtedness is still not as bad as that of some other developed economies it has deteriorated more rapidly.

Ultimately the government will have to put in place a plan to address this issue. Government spending needs to be reviewed as a spur to long term sustained growth and a reduction in debt to GDP levels.

Tobacco tax increase urged in the Year of the Lung

2010-01-13T16:51:00.000+13:00

A good story in scoop regarding the need to raise taxes on tobacco. Scoop: Tobacco tax increase urged in the Year of the Lung . It's not often that you get a policy decision which can be both popular, improve the health of citizens and boost the government's tax revenues.

Churton Park Community Chair To Stand Down

2010-01-13T16:47:00.000+13:00

Wellington.scoop.co.nz reported my resignation as President of the local Churton Park Community Association today.

I have decided not to seek re-election at the CPCA’s AGM in March. My resignation will take effect from the AGM on March 17th.

2010 marks my seventh year on the Community Association since 1997 – including two separate terms as President. I believe now is the right time to stand down. The CPCA has a strong committee and a good succession plan. I am confident that it will continue to work tirelessly for the interests of the local community.

The CPCA finances are in good shape, we have secured approval for major infrastructure projects. In addition events such as our annual Community Christmas function continue to attract strong local support.

The new Neighbourhood Centre at Lakewood Avenue is scheduled for 2011. The new Westchester Drive extension is also due during 2011 and it will help reduce heavy traffic volumes on local roads as well as provide for future growth.

In addition the Minister of Education, Anne Tolley, has also confirmed the building of a second primary school at Amesbury Drive in Churton Park to be opened in Term 1 2012. This school will at last resolve the ongoing pressure of roll growth by increasing the collective capacity of local schools.

I was recently appointed by the Minister of Education to the Establishment Board of Trustees (EBOT) for the new Amesbury Drive School. I look forward to seeing Churton Park continue to grow and prosper as part of the wider Wellington region. Building good quality infrastructure – especially in the education sector – will be a critical part of that success.

A new Committee will be elected at the AGM in March. To the existing Committee I'd like to say thanks for your commitment and support over the last year. It's been a blast. I wish you well for 2010.

NZ 9th biggest dairy producer - 1st biggest dairy exporter by country

2010-01-12T10:34:00.000+13:00

India is the largest producer of dairy products in the world. There is a great deal of variation in the pattern of dairy production world-wide. Many countries which are large producers, consume this internally, while others — in particular New Zealand — export a large percentage of their production. Internal consumption is often in the form of liquid milk, while the bulk of international trade is in processed dairy products such as milk powder.

The world's largest exporter of dairy products is New Zealand,[24] and dairy products are the largest export earner for the country.[25] Fonterra is the fifth-largest dairy company in the world and New Zealand's largest company by turnover.
In terms of the global marketplace the seven largest producers of dairy products are: India, USA, Germany, Pakistan, China, Russia and Brazil. New Zealand ranks ninth - just behind France and ahead of the UK. http://en.wikipedia.org/wiki/Dairy_farming

Now if only we could get three or four more large NZ-based exporters like Fonterra - in sectors like ICT, Film & content production, Tourism, and Wood products.

Which university degrees pay the most?

2010-01-11T22:08:00.000+13:00

Stuff.co.nz today reported that "school-leavers aiming for a well-paid job after university should study engineering or health sciences, a new government report suggests. Meanwhile, those less concerned about salary should consider tourism, performing arts, visual arts, and graphic and design arts. "

"The other lesson is that sticking at your studies can pay off - graduates with a doctorate can expect to pick up jobs with salaries almost 50 percent higher than those with bachelor degrees. "
The new report will be of interest to educators as well as parents and taxpayers as funders.

Criminals owe their victims $80 million - NZ Herald News

2010-01-08T19:46:00.000+13:00

Criminals owe their victims $80 million - National - NZ Herald News
Crime victims are owed more than $80 million in reparations - a 33 per cent jump in three years. Ministry of Justice figures show 60,000 victims were owed $80.5 million of court-ordered reparation at October 30 last year - an average of about $1300 each. The oldest reparation still owed dates back to 1974.

It's no wonder that victims of crime are losing faith in the justice system. Reparation payments must be strictly enforced. Australia has a 97% collection rate - much higher than that achieved in NZ. If it means keeping offenders in gaol until payment is made then so be it.

Brown coup plot shows UK Labour 'deeply divided' - Cameron

2010-01-07T23:00:00.000+13:00

BBC News reports of another plot against British Prime Minister Gordon Brown seem certain to the problems facing the Labour leader six months out from a General Election. BBC News - Brown coup plot shows Labour 'deeply divided' - Cameron

According to recent opinion polls the British public are in the mood for change. Some polls, however, have shown a closing of the gap meaning that Labour may still have an opportunity to pluck victory from the jaws of defeat if they can hold enough seats and if the Liberal Democrats attract sufficient support to prevent the Conservatives from winning an outright majority.

However, we consider that such an outcome is still highly unlikely barring any major errors by the Conservative leadership. One thing is clear. Whichever party wins the next election it faces a major challenge to re-invigorate the stalled British economy.

AFP: Clinton to visit Australia, New Zealand, PNG

2010-01-07T22:50:00.000+13:00

AFP: Clinton to visit Australia, New Zealand, PNG : US Secretary of State, Hillary Clinton, will be conducting a flying visit to Australia, New Zealand and Papua New Guinea next week to discuss international security issues, development and the environment. New Zealand's relationship with the USA remains vitally important for defence, trade and foreign affairs.

Wellington Ratepayers face the Cost of another Council budget blowout

2010-01-02T20:13:00.000+13:00

Dominion Post today broke the story of another series of losses made by entities in which it has an interest. How much longer will ratepayers tolerate these ongoing failures?

With ordinary Wellingtonians having to make cuts to make their spending match their income ratepayers are well within their rights to wonder why Council bureaucrats seem to operate to a different set of rules. Hapless ratepayers should not be forced to cover for inefficient council decisions.

Living with a smoker puts kids at risk for emphysema - USATODAY.com

2010-01-02T12:06:00.000+13:00

Living with a smoker puts kids at risk for emphysema - USATODAY.com

Further evidence of the damage done by passive tobacco smoke inhalation. Because the full costs of choosing to smoke are not borne by the smoker it is impossible to treat this as purely private choice analagous to buying a tin of baked beans. Control and reduction of tobacco use is one of the areas where strong and effective regulation is required.

Bainimarama hails 'change of stance' by Key | Stuff.co.nz

2009-12-27T16:59:00.000+13:00

Bainimarama hails 'change of stance' by Key Stuff.co.nz
Welcome change of stance enhances relations with Fiji. Looks like relations with Fiji are warming. This will be good news for the ordinary Fijian citizen.

Harawira email - more venom from Maori Party MP

2009-12-25T09:50:00.000+13:00

Harawira email swore at bureaucrats Stuff.co.nz more bullyboy tactics from the MP for Tai Tokerau. Is there more than a hint of predetermining the outcome re the flag?

The Brash Report

2009-12-23T17:39:00.000+13:00

The government invested into the 2025 Taskforce. As a centrist, who is sceptical about a purist market approach delivering good social policy outcomes, readers will not be surprised that I have reservations about certain aspects of the Taskforce prescription. However, when an effort has been made to address New Zealand’s deep-seated problems I am inclined to the view that it’s worth giving it proper consideration.

Certain aspects of the Taskforce prescription are worth exploring further:

• The relative decline in New Zealand’s GDP per capita is not well understood by the public – it needs to be;

• The substantial increase in government spending since 2005 is unsustainable and needs to be curbed is a useful observation but needs to be considered in the context of the global recession of 2009.

• The trebling of subsidies for early childhood education and day care is also worthy of evaluation to see whether such expenditure is getting the benefits expected of it.

• Reforming the welfare system to curb abuses is also going to be important over the next decade.

• Ensuring that our income and company tax rates are competitive with Australia, the UK and other competitors for kiwi talent is important.

There are, however, other parts of the report that appear to lack sufficient analysis:

• The attribution of New Zealand’s decline in economic performance to “the impact of the protectionist regime put in place in the 1930s” is questionable given that our best economic performance occurred in the 1950s and 1960s under such policies;

• There is little in the way of consideration of how new research, science and technology can help drive faster growth rates and diversity in our economy.

• As most business people will tell you selling assets is not a very well thought through strategy for long term economic prosperity. Raising productivity and skill levels – together with NZ-based research capacity is likely to deliver longer term gains for the country’s prosperity.

2010 represents a year of opportunity for the government to introduce overdue economic reforms. The studies it has commissioned in 2009 will offer a useful base of work from which to consider remedies for New Zealand’s economic ailments. Social policy considerations - such as social cohesion- will have their place alongside economic goals in any intelligent programme of reform in 2010.

Lessons From Timor-Leste: Time To Reform International Financial System?

2009-12-22T18:13:00.000+13:00

Unlike nearly any other nation in the underdeveloped world, Timor-Leste has refused to borrow money from the international community.

At this year’s donors meeting in May, the Prime Minister, Mari Alkatiri, spelled out his Government’s position: “We are not ideologically opposed to borrowing money. But we are opposed to unsustainable borrowing”. These are wise words. A paper by the Committee for the Abolition of Third World Debt (CADTM) says that

“Despite the nations of the South having abundant natural and human resources, the burden of debt for larger developing nations has restricted their development, for smaller nations, it has suffocated it altogether. In 2000, the UNDP and UNICEF calculated that $80 billion a year for ten years would be enough to ensure that the entire population of the world had basic services such as decent food, access to drinking-water, primary education and access to basic health care. Yet in 2001 alone, developing countries spent $382 billion on debt repayments.

In general, indebtedness remains one of the biggest barriers to developing countries’ effort to build strong domestic economies and improve the living standards of their citizens.

“For every $1 owed in 1980, developing countries have since repaid $7.50 but still owe $4.

This is a massive transfer of resources from the South to the North that renders international institutions’ talk about “poverty reduction” and achieving “Millennium Development Goals” meaningless. http://www.cadtm.org/Avoiding-Indebtedness-and

In addition to the perpetual merry-go-round of debt that developing countries find themselves trapped in there are also some apparent internal contradictions which impact developed nations and which seem incapable of resolution under existing policy settings:

The never ending battle by all nations to achieve a balance of payments surplus – despite the fact that by definition half the countries are likely to remain in deficit simply because someone has to import more than they export so that the others can export more than they import. New Zealand and other smaller economies have suffered from this more than most.
As labour-saving technology enables the production of much greater volumes of goods and services with fewer labour hours how will the increased volume of production be consumed unless purchasing power (not directly linked to labour hours) is also increased commensurately?
As technology is used to increase productivity and national income it should be possible to reduce – rather than increase - the number of hours worked. France which has adopted a shorter working week is leading the way in productivity growth. Perhaps there are some lessons to be learned from such innovative social policy?

We should at least have the debate.

http://www.centristcomment.blogspot.com/

5 Key Reasons To Support Income Splitting

2009-12-22T17:41:00.000+13:00

The Minister of Revenue's recent announcement that the government will introduce a Bill into Parliament in 2010 to establish Income Splitting is a significant step forwards. While passage of the Bill beyond Select Committee is not guaranteed it does offer New Zealand parents the opportunity to show their support next year for income splitting.

We here republish a 2007 article from the Parents Choice 08 blog.

"Income Splitting is a policy which allows parents to split their household income so that they pay less tax overall. It means that families which choose to have one parent at home caring for their children will have that worked recognised through the tax system as being socially useful. It sends an important signal that parenting is valued.

In brief there are five key reasons to support income splitting. They are:

1. It sends a signal via tax policy that parenting is recognised as valuable. Currently many policies such as subsidisation of child care for parents in paid employment, parental leave for full time employees, and the discrimination against working parents compared to self-employed parents regarding tax treatment, all combine to slant the playing field towards getting parents out of the home and into the workforce. Parents Choice believes that policies to encourage people back to work should not be at the expense of those parents who want to spend time at home with their children - especially during the crucial early years of a child's development.
2. It empowers parents and helps strengthen families. It allows parents to choose whether they will have one parent at home or whether some other work pattern suits them best. Either way parents should make these decisions without government policies pushing them both into the workplace. It should be a parents choice.

3. It builds social capital. Having a greater number of parents choosing to parent fulltime means more opportunities for voluntary and charitable organisations to benefit from having bright, capable and often highly-educated people able and willing to volunteer to work part time in the community or in charitable or religious organisations - all of which is likely to build social capital - the glue that holds society together. Prof. Robert Putnam (author of "Bowling Alone") has provided substantial evidence on the benefits of boosting social capital in a community.

4. It boosts the economy. Income splitting holds the promise of helping strengthen families, strengthen communities and boost social capital. The long term economic cost of weak families, communities and the erosion of social capital is all too apparent when one looks at the cost of family breakdown, juvenile delinquency, vandalism, gang-related activity, crime, distrust and division. If we can go to the core of the social causes of such breakdown then the economic cost savings in police, social work, court time, and broader strengthening of social capital is potentially immense. In any case most economists now agree that the real solution to better economic performance is not in higher labour rate participation or longer working hours but in higher productivity. New Zealand already has one of the highest participation rates in the OECD. The solution is in working smarter not forcing more and more parents to get into the workforce or for those already there to have to spend even more hours at the office.

5. It places the wellbeing of children at the centre of economic and social policies. Good economic and social policies need to ensure that parents and children are kept "front and centre" when designing a sound policy framework. To ignore the development stage of the next generation of human capital is foolish in the extreme. People remain our greatest asset. We need to ensure that all children get off to a good start in life - through both their home life and school life. Income splitting says that the relationship between a parent and child is very important, at least as important as that between an employer and employee, and that our laws should recognise this and allow parents to spend more time with their families."

Parents Choice 08 has passed the torch to other groups to carry on the campaign for income splitting. Here at Centrist Comment we will continue to provide news and updates on this important social policy innovation. If you want to subscribe to the Centrist Comment blog updates click on "subscribe".
If you want to join the national mailing list for Parents Choice please contact Roger on rogerellis07@gmail.com

Obama healthcare plan moves a step closer

2009-12-22T15:16:00.000+13:00

BBC reports that after a long, often acrimonious debate Senators voted 60 to 40 along party lines to end debate on the health reform bill at 0100 (0600 GMT) on Monday.Four further votes are scheduled this week on the issue before the final Senate vote on Christmas Eve.

Under the Senate bill, most Americans would have to have health insurance. This marks a significant breakthrough to help ensure that Americans can receive the health treatment they need - regardless of whether they are rich or poor. Historically the US health system has been one of the most expensive in the world. The proliferation of private providers funded by private insurance companies has led to significant waste and duplication. At the same time many low income Americans have been unable to pay the premiums which are now required to fund this private healthcare monster.

China- Taiwan Trade Talks Begin

2009-12-21T16:06:00.000+13:00

China's top negotiator on Taiwan affairs is due to arrive in Taipei for trade talks that some fear could undermine the island's sovereignty the BBC reports.

Ahead of the talks, tens of thousands of protesters rallied against Chen Yunlin's visit.The two governments hope to sign the free-trade pact by early next year. In recent months there has been a groundswell of support in Taiwan for full independence from China.

O'connor Elected Chair Of Amesbury Drive School

2009-12-21T13:59:00.000+13:00

Scoop: O'connor Elected Chair Of Amesbury Drive School story in Scoop News highlighting the progress made by the new Establishment Board of Trustees (of which the writer is a member). The EBOT will be posting updates on its own blog www.amesburydrive.blogspot.com

National Standards - ODT comment

2009-12-21T13:12:00.000+13:00

Otago Daily Times makes some good points on the educational national standards issue. Consider the state of numeracy and literacy, as measured in school leaver statistics published by the Ministry of Education earlier this month for the 2008 year: nearly a fifth failed to achieve even NCEA Level One or above. Is that good enough?
If one major purpose of the national standards is to identify pupils who are falling behind and provide help to schools to ensure they improve, what sense is there in resisting it?

Time To Change Failed Recipe

2009-12-21T11:15:00.000+13:00

Peter's Position blog sees the United Future leader advocating greater use of voluntary and not for profit organisations to help grapple with the thorny social and family issues that have been languishing in the "too hard" basket for decades now.

While there is always the risk that under-resourcing could compound existing social inequalities surely the time has come to try a new approach from the tried and failed framework of centralised government agencies attempting and failing to deal with entrenched failure in education, health, welfare and skills training?

If the challenges of appropriate accountability for public funding and necessary audits can be maintained or made simpler and more effective then perhaps the time has come for a decentralised approach to social service delivery. Such an approach could work well with the desire by many iwi organisations to take greater autonomy for delivery of services to their own people.

Liberal Democrats Confirm Commitment to Scrap Tuition Fees

2009-12-20T23:18:00.000+13:00

http://www.nickclegg.com/2009/12/tuition-fees/ Nick Clegg, Leader of the Liberal Democrats has announced that scrapping tuition fees would remain one of the party’s most important policies.
In a letter to Liberal Democrat members he today he set out a timetable to scrap fees, including those for part-time courses, over the six years following the General Election. The letter in full:
Dear Friend
I’m writing to let you know some good news about the Liberal Democrat manifesto - good news for students and for everyone who wants a fairer Britain. This week the Party’s federal policy committee agreed a way to deliver one of our most important policies, the scrapping of unfair tuition fees. We’ve developed a plan to phase out tuition fees over the course of the next six years, to ensure this vital policy is affordable even at this time of economic crisis.

Slow progress at Copenhagen talks

2009-12-17T22:22:00.000+13:00

There have been ongoing protests throughout the two-week conference on climate change in Copenhagen. Talks remain deadlocked with just two days left to seal a global emissions pact.

Developed and developing nations remain at odds over who should cut emissions, how deep the cuts should be, and how much aid should go to poor countries.

But there has been some progress - wealthy nations pledged new funds to bankroll the war on global warming. Read the full BBC report at http://news.bbc.co.uk/2/hi/science/nature/8417541.stm

Income splitting for tax purposes back in the spotlight

2009-12-15T22:54:00.000+13:00

New Zealand families may yet get a choice on how they choose to work and pay tax. United Future leader, Hon Peter Dunne MP has announced the release of an issues paper looking at how income splitting might operate through an annual tax credit.

“Under income splitting, each partner in a relationship with children would be taxed on an equal share of their combined income, Revenue Minister and UnitedFuture leader Peter Dunne said today in releasing the issues paper.

The first round of consultation last year sought feedback on what people thought of income splitting, and attracted more than 200 responses, most of them favourable.

“Because income taxes are progressive, with high incomes attracting a higher rate of tax than low incomes, many families might pay less tax, providing some financial assistance when one parent works full-time and the other chooses to stay at home to care for the children,” Mr Dunne said.

“The issues paper proposes having income splitting operate through an annual tax credit, and seeks people’s feedback on how well such a system would work for them,” Mr Dunne said.

“Inland Revenue would calculate the end-of-year tax credit, which would be based on any difference between the tax the couple would pay on an individual basis and the tax they would pay by splitting their income for tax purposes.

“To be eligible for the tax credit, couples would have to be married, civil union partners or de facto partners, be New Zealand residents, and be primarily responsible for the day-to-day care of a dependent child under 18.

“Financial considerations often play a large role in parents deciding whether both should continue to work full-time or one stays home to care for the children,” he said.

“Income splitting is one way of enabling parents to have greater choice in their work and caring roles, and also recognises the valuable role played by parents who choose to opt out of the workforce to raise their children.

“I urge all interested parties to have their say on the workability of the tax credit that is set out in the paper.

“Once we have received the public’s feedback on the details of the proposed mechanism for making income splitting a reality, the next step will be to introduce enabling legislation next year, a move that is provided for in the confidence and supply agreement between UnitedFuture and National,” Mr Dunne said.

The issues paper, “An income splitting tax credit for families with children” is available at www.taxpolicy.ird.govt.nz.

Submissions close on 5 February 2010.

http://www.unitedfuture.org.nz/default,1291,dunne_unitedfutures_income_splitting_plans_take_shape.sm

Income-splitting plan gives families a tax break | Stuff.co.nz

2009-12-12T12:33:00.000+13:00

Income-splitting plan gives families a tax break Stuff.co.nz
At last some recognition for the work performed by many thousands of parents (mainly women) who choose to invest time and work into raising their own children. Income splitting at least moves towards some recognition of the valuable, yet unpaid work undertaken by hundreds of thousands of New Zealanders year after year.

Beehive - Budget spending jumps 45 per cent in five years

2009-11-27T19:51:00.000+13:00

Bill English has quoted Treasury papers Beehive - Budget spending jumps 45 per cent in five years to show that government spending has grown massively during the last few years. Government spending cannot keep growing inexorably - without a corresponding increase in revenues. There re only two ways to deal with this - either raise taxes or cut spending. The optimal answer is probably a combination of both and the sooner the better.

Johnsonville Needs Infrastructure Upgrade First

2009-11-24T18:18:00.000+13:00

Proposed changes to the Wellington City Council District Plan risk exacerbating current traffic congestion problems in Johnsonville. The City Council is closing off public submissions on Friday 27th November - despite reports that it won't get around to hearing public submissions until May 2010. The question is why the hurry to stifle public debate?

Johnsonville today simply does not have the infrastructure required to support a large increase in infill housing. Our roads are congested at peak times, our on-street parking is already difficult to navigate and other services are also likely to come under pressure in the wake of a surge in population growth.

The Council should defer consideration of this proposal until more local residents have had an opportunity to comment. Many are unaware of the scale of change being proposed and the likely impact on the community. If sitting councillors are confident about the proposed changes then I invite them to test public opinion at the ballot box during next year's local body elections.