Tag: New Zealand

Economy Continues to Improve

When doing so – how do you make it better

 

News of the continuing to improve economy and the manufacturing sector will usually do well for an incumbent Government and be of a nightmare for an opposition party trying to seek Government. The question is for the opposition is how to get into Government while people are in a good mood (that reflects back as Government support).

Standard macro-economics will teach you that then a nation’s economy improves to the point it starts hitting the boom phase (we are not in a boom yet) then the State should be scaling back “state-sponsored building initiatives” to avoid overheating the economy. When the country is in a recession or depression then you start the state-sponsored building programs to give the economy a prod along. Typically this is done through infrastructure building to lay the foundations down for when the economy takes off again as it is for New Zealand. It is unwise for a Government to embark on a massive state sponsored building program when the nation is in a full recovery or boom phase as flooding the economy with money is like fuelling a fire that will go out of control. An out of control fire will cause large-scale damage to an economy in the end as Japan and the USA have found out over time.

And so where does this leave Labour. Well it does not leave them a lot of room at the moment. However, it does not mean that they give up. It means you have to be smart at how you develop and pitch policies that will not cause the economy to overheat leading to interest rates hitting 10%.

From the NBR on the Economy Growing

NZ economic growth keeps rate hike track intact

Paul McBeth | Thursday March 20, 2014

New Zealand’s pace of growth in the final three months of the year, underpinned by a booming manufacturing sector, won’t derail the Reserve Bank’s path to higher interest rates this year.

Gross domestic product grew 0.9 percent to a seasonally adjusted $38.3 billion in the three months ended Dec. 31, from a revised pace of 1.2 percent in the September quarter, according to Statistics New Zealand. That was in line with market expectations and slightly ahead of the Reserve Bank’s forecast of 0.8 percent growth in the quarter. Annual growth was 2.7 percent, and GDP was 3.1 percent higher than the same quarter a year earlier. (See graph below)

The pace of growth underpins signs the local economy is gathering momentum, which Reserve Bank governor Graeme Wheeler says is creating inflationary pressures that require a monetary policy response. He kicked off a tightening cycle this month, lifting the official cash rate a quarter-point to 2.75 percent and anticipates raising the OCR another 2 percentage points over the next two years.

The rest of the article gives a break down in further figures of the economy growing.

 

Back to the question where does that leave Labour.

I would go down the Social Liberal path and be very careful managers on our economy is growing. For the most part it would mean the following:’

  • stay well out if the way in trying to “intervene” in the growth phase. This usually means wind back some regulation not put on more…
  • There will be inequality that is a given. The question is how best to address it without impinging greatly on the rest of the economy. So maybe expanded apprenticeship and mentoring schemes for the unemployed and under-employed. Maybe better flexible working arrangements especially parents. And better funding towards our tertiary systems especially and ironically around the Arts Faculties (I’ll do a post on that sometime in the future).
  • Wind back any state sponsored building programs – this is the wrong time to do it unless you want to overheat the economy. You can still get away with expanding the rail network, boosting our coast shipping and maybe some new power generation north of Huntly but I would be reluctant on ‘Think Big” stuff including 100,000 homes outside of Christchurch.
  • Make sure Councils are not spending willy nilly as interest rates rise and too much money from them flooding the economy can also cause overheating. This means it can put the CRL in an interesting position if we enter a boom phase and we try to leverage debt when interest rates are particularly high at the time.
  • And for heaven’s sake do not hike taxes unless you plan to do a massive overhaul (which should be down when in a recession any how).

 

Labour though seem to be doing the opposite to a number of bullet points above. To which in my own evaluation will in the medium and long-term have potential to cause more harm. I saw this piece (which I will post en-mass) from Leader of the Opposition David Cunliffe a few moments ago

Millions invested due to Labour’s forestry plan

DAVID CUNLIFFE | 20 MAR 2014

Red Stag Timber has today announced it will invest $120 million in upgrading its plant on the basis of Labour’s Forestry and Wood Products Economic Upgrade, says Labour Leader David Cunliffe.

Red Stag General Manager Tim Rigter said. “We are confirming today that if we can get a Pro Wood policy with a future government, we would proceed with a $120 million capital investment in upgrading our plant and facility. We want to be able to process another 500,000 tonnes of logs.”

“This is great news for the Rotorua region that suffered through the closure of the Tachikawa sawmill and the loss of 120 jobs,” says David Cunliffe.

“A new world-class mill fitted with the latest technology will future proof jobs in a region hard hit by the National Government’s hands-off approach. I am delighted that our policies can secure jobs in a region that desperately needs them.

“It is a terrific endorsement for Labour’s Economic Upgrade for Forestry and Wood Products that I announced yesterday.

“Our upgrade is supported by the sector. Our focus on investment, innovation and industry is part of the upgrade that will create better jobs that pay higher wages where they are needed.

“To encourage investment we will provide tax deferrals in the form of accelerated depreciation to encourage industry to invest in new technology and plant.

“To boost innovation we will work with the industry and public science bodies to develop new products and technologies.

“To support industry development we will introduce measures including a Pro-Wood policy for government buildings, loans for new forest planting and forestry taskforces for long-term unemployed.

“Labour’s economic upgrade will lead to better jobs and higher wages for all New Zealanders,” David Cunliffe says.

———-

 

The question that comes to me now is why can’t Red Stag do this investment NOW? What is actually holding it up? I am quite curious to see the mechanics of the waiting. For the rest of the “Pro-Wood” policy it looks like something the Soviet Union would try to pull. That is the State leading and essentially dictating who does what with their resources. Not the most efficient way of moving the economy along that I have seen to date and especially as we are not in a recession that requires state intervention.

 

Now what would be interesting to see is what is the total demand of processed wood in New Zealand and will Christchurch and Auckland make any “contributions” to that demand. Furthermore I am keen to see what export potential in the free market is for our processed timber. I am also keen to see if a wider infrastructure roll out across New Zealand might kick off increased demand for wood as industry and cities expand while satellite centres begin to establish themselves.

In the end though Labour’s “Pro Wood” policy just does not do it for me (in wanting to vote for them) both at the individual and collective level.

 

Right then I wonder what narrative will come along the way this time for tomorrow. Hopefully something from National.

 

20th September we go to the Polls

Prime Minister has called a 20th September election

 

As you no doubt are aware or will be aware after this post the Prime Minister has called for the central elections on Saturday September 20th, 2014. The House will rise on July 31 and Parliament to be dissolved on August 14. The formal campaign period should kick off after that.

For our international readers the election will be contested between a Centre Right Liberal/Conservative Government seeking a third term with a centre-left social conservative opposition wanting to tip the Government out and take the Treasury benches for the first time since 2008 – the Clark regime.

And so from now until September 20th we will be spammed with electioneering although we have been since the beginning of the year.

Talking Auckland will look in brief at election issues that do have consequences on this City and what it will mean for us over the next three years.

NZTA Announces Expert Panel on Cycling

Lets Talk Cycling

 

From NZTA in response a Coroners report in Cycling in NZ:

Expert panel on cycle safety announced

28 Feb 2014 09:22am | NZ Transport Agency: Auckland and Northland

The NZ Transport Agency has selected a group of ten New Zealand-based experts to develop recommendations for making the country’s roads safer for cycling.

The Transport Agency was asked to convene the panel in response to the findings of a coronial review of cycling safety in New Zealand, released in November last year by Coroner Gordon Matenga.

NZ Transport Agency Director of Road Safety Ernst Zollner said the agency had canvassed the views of a wide range of stakeholders with expertise in cycling and road safety as part of the process of establishing the panel.

“There is a huge amount of passion and a great depth of knowledge on cycling and cycle safety in New Zealand. We’re looking to harness that passion and knowledge to encourage cycling as a transport choice by making it safer. This panel is tasked with developing a comprehensive and practical set of recommendations for central and local government to achieve that.”

The panel is expected to meet for the first time next month and will aim to deliver its recommendations by the end of September.

Mr Zollner said the Transport Agency and other members of the National Road Safety Management Group would also continue existing work to improve the safety of cyclists in New Zealand by investing in separated cycle paths, improving the safety of roads and roadsides, making intersections safer, reducing vehicle speeds in urban areas to reduce the risks that motor vehicles can pose to continue existing work to improve the safety of cyclists in New Zealand by investing in separated cycle paths, improving the safety of roads and roadsides, making intersections safer, reducing vehicle speeds in urban areas to reduce the risks that motor vehicles can pose to pedestrians and cyclists and promoting safe cycling through a range of education programmes.

The Transport Agency recently launched a Share the Road education and advertising campaign designed to personalise and humanise people cycling so that motorists see beyond the bike. More information is availablehere.

New Zealand Cycle Safety Panel – Profiles

Richard Leggat (Chair) 
Auckland

Richard is the Chair of Bike NZ and the New Zealand Cycle Trail and is a board member of Education NZ, SnowSports NZ, NZ Post and Tourism NZ.  Richard is an enthusiastic recreational cyclist and is actively involved in his children’s sport. Following an economics degree Richard worked for apparel manufacturer Lane Walker Rudkin before switching into the finance sector and working as a share broker initially in Christchurch, followed by four years in London and then Auckland.

Sarah Ulmer
Cambridge

Sarah is the first New Zealander to win an Olympic cycling gold medal, which she won in the individual pursuit at the 2004 Olympics in Athens, setting a world record.  When she left Athens at the end of the Games, Ulmer held the Olympic title, the Olympic and world records, the Commonwealth Games title and the Commonwealth Games record for the 3000m individual pursuit.  In mid-2011, it was announced that she would be the official ‘ambassador’ for the New Zealand Cycle Trail.  In the 2005 New Year Honours, Ulmer was made an Officer of the New Zealand Order of Merit, for services to cycling. 

Marilyn Northcotte
Kapiti

Marilyn has more than twenty years of involvement in cycle skills training, originally in Canada (CAN‐Bike I and II, Cycling Freedom) and has also trained in the United Kingdom and New Zealand.  Marilyn has developed and delivered cycle skills and road safety programmes for adults and children in a variety of settings and regularly undertakes work for councils, cycle advocacy groups, schools, holiday programmes, Police and community groups, as well as offering one‐to‐one training.  Marilyn heads up the regional cycle skills training programmePedal Ready.

Mike Noon
Wellington

Mike joined the Automobile Association in September 2005 as General Manager Motoring Affairs.  Mike started his career with Mobil Oil NZ where he held the position of Marketing and Communications Manager.  Immediately prior to joining the AA, Mike worked as a consultant specialising in tourism, issue management and communications.  Before that Mike worked with the Office of Tourism and Sport, and as its Director saw through the establishment of the Ministry of Tourism.  Road safety is a particularly important issue for the AA, and it has lobbied strongly on issues like young driver training, cell phones, alcohol and drugs and road engineering.

Dr Hamish Mackie
Auckland

Hamish is a human factors specialist with seventeen years of research and consultancy experience in a range of areas where the interaction between people, their surrounding environments and the things they use are important. Over the past eight years Hamish has focused on self-explaining roads, high risk intersections, school transport and other areas where a ‘human-centred’ perspective is essential.

Simon Kennett
Wellington

Originally a power systems engineering officer, Simon helped to found ‘Kennett Brothers Ltd’ in 1993, a business devoted to cycling books, event management, trail design and construction, and strategy development. In 2004 he co-wrote and published ‘RIDE’ – a history of cycling in New Zealand. In 2007/08 he coordinated the Cycling Advocates’ Network networking project under contract to NZTA. Since 2009 Simon has been the Active Transport and Road Safety Coordinator at Greater Wellington Regional Council.

Dr Alexandra Macmillan
Dunedin

Alex is a Senior Lecturer in Environmental Health at the University of Otago’s Department of Preventive and Social Medicine. She also holds an honorary senior research position at the Bartlett – University College London’s global faculty of the built environment. She trained in Medicine and is a Public Health Physician. Alex’s teaching and research focuses on the links between urban environments, sustainability and health. Her PhD included futures modelling of specific policies to successfully increase commuter cycling in Auckland. In London, she extended this work to understand the factors influencing trends in cycling in London and Dutch cities.

Professor Alistair Woodward
Auckland

Alistair is Professor of Epidemiology and Biostatistics at the University of Auckland. His first degree was in medicine and he undertook his postgraduate training in public health in the UK. He has a PhD in epidemiology from the University of Adelaide, and 30 years’ experience in road safety and injury research. He has studied the epidemiology of head injury, the effectiveness of helmets for cyclists, the relation between vehicle speed and injury severity, the effects on health and the environment of increasing walking and cycling, and the health impacts of transport policy. He initiated the Taupo bicycle study, which has followed 2,600 cyclists for eight years to learn about factors that promote and inhibit everyday cycling, including injury.

Axel Wilke
Christchurch

Axel holds an ME (Civil) from Canterbury University and has been active as a traffic engineer and transport planner in New Zealand since 1998. He specialises in urban traffic engineering, traffic signals, road safety, intersection design & modelling and industry training. He is a director of ViaStrada Limited, a traffic and transportation consultancy specialising in sustainable transport based in Christchurch. Clients of ViaStrada are mostly road controlling authorities in New Zealand, but some work (mostly research) is undertaken for Australian clients, for example Austroads. Axel instigated professional industry training, and the Fundamentals of Planning and Design for Cycling workshop has been taught since 2003, which is part of the curriculum at Canterbury University. Advanced courses were added later, and he has taught nearly 1,000 attendees in total. 

Dr Glen Koorey
Christchurch

Glen is a Senior Lecturer in Transportation Engineering at the University of Canterbury. He has a particular interest in the areas of road safety and sustainable transport, including speed management and planning & design for cycling. Glen is a Member of the Bicycle Transportation Research Committee of the US Transportation Research Board and over the past 15 years has investigated many aspects of cycling safety in New Zealand. His wide-ranging research and consulting experience also includes sustainable transportation policies, planning & design for walking, crash data analysis, and the design and operation of rural highways.

——–ends———-

Source: http://www.nzta.govt.nz/about/media/releases/3223/news.html

 

The panel reports back in September. I wonder what they will come up with.

 

2013/2014 Summer Series #2

The Talking Auckland Summer Series

 

The Talking Auckland 2013/2014 Summer Series, a collection of photos, quips, and light stories from around Auckland over the Christmas-New Year run. Normal Talking Auckland commentary will resume from 13th January, 2014.

 

Summer Series Post #2

Gone to the chickens, some random photos of the backyard with the chickens out for their daily Summer run (and raiding the vegetable patch):

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Auckland from Te Atatu

Looking at Auckland from Te Atatu North on a Summer’s day

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