The Good Society is the home of my writing about how we can shape a better world together.
A detail from Ambrogio Lorenzetti’s Renaissance fresco The Allegory of Good and Bad Government
The Spinoff: One of Brooke van Velden’s final acts as a politician will also be her most dangerous
The Health and Safety Amendment Bill is one of worst laws in recent memory.
Read the original article on the Spinoff
Consider this: you are an Act minister, for whom getting offside with the business community is almost impossible, and yet you have achieved this feat.
Consider this: your bill will put fewer health and safety responsibilities on a four-person abseiling company than a 21-person accountancy firm.
Consider this: you are bringing forward a bill that is designed to lower business costs but will likely do the opposite.
Given all this, what do you do? If you are Brooke Van Velden, the minister responsible for the above bill, the answer is that you plough ahead regardless.
The legislation in question is the Health and Safety at Work Amendment Bill, which Van Velden is trying to get passed this week. Its chief feature, in the words of the Listener’s Rebecca Macfie, is that it “radically reduces small employers’ obligations to keep workers safe on the job”.
Under the bill, firms with fewer than 20 workers – that is, 97% of this nation’s businesses – would be carved out of most health and safety requirements, being required to manage only “critical risks” to their workers. As with much Act policy, this seems superficially plausible: small businesses are stretched, so why not let them concentrate on the biggest risks? But as with much Act policy it is evident, the moment one peers into the engine room, that this is an absolute trainwreck of a bill.
Although “non-critical risks” may not sound serious, they actually make up the bulk of workplace harms. They include musculoskeletal injuries from trips, slips and falls, and psychosocial risks that include mental stress, excessive workload and burnout.
As the New Zealand Institute of Safety Management (NZISM) points out, these two areas are literally the top two causes of workplace harm. Treating musculoskeletal injuries alone takes up fully half of ACC’s work-related rehabilitation bill, totalling $3.6bn a year.
Under Van Velden’s bill, in short, small businesses can stop trying to prevent the most frequent and most expensive causes of harm in the country. The fiscal cost this will impose is unclear because, in yet another reprehensible piece of policy-making, ACC was excluded from targeted consultation on the bill, and the government-dominated Education and Workforce Select Committee wouldn’t allow the agency to do the required modelling. Nothing says “we are committed to evidence-based policy-making” like a refusal to let that evidence even be produced.
Nonetheless ACC has, in internal documents, clearly identified the bill’s dangers, saying it generates “a real and material … risk of increasing deaths, injuries, claims and costs”. The NZISM, meanwhile, predicts it will “cost hundreds of millions more and cause huge suffering”.
Another bizarre facet of the bill is that small businesses aren’t even particularly safe places. According to calculations by Simplicity chief economist Shamubeel Eaqub, small businesses are already one-quarter more likely to injure their staff than bigger firms (adjusting for workforce size). ACC data shows they generate three-quarters of all work-related injury costs.
“Carving them out makes no sense,” says the NZISM’s Mike Cosman. In just one “ridiculous” example, small businesses will no longer have to provide staff with safety boots or gloves, as hand and foot injuries are not deemed “critical”.
Dividing up businesses based on size is also nonsensical. As above, a four-person abseiling business will, despite the extraordinarily dangerous nature of its work, face fewer health and safety regulations than a 21-person accountancy firm, simply because the former falls below the 20-worker threshold. Paul Jarvie from the Employers and Manufacturers Association told the Listener the carve-out “defies logic in terms of where the harms are occurring … No other country does this. It just doesn’t make sense.”
Which brings us to the final, and perhaps most bizarre, aspect of the whole bill: companies, for the most part, don’t even want it. The bill’s sole corporate cheerleader of any significance is former National MP and current Business New Zealand head Katherine Rich.
Others, like Jarvie, think the bill is “a really complicated hotchpotch” that “may unintentionally increase harm, complexity and compliance uncertainty for businesses and workers”. Members of the Business Leaders Health and Safety Forum say the reforms will leave large corporations still legally liable for what happens further down the sub-contracting chain – but without the reassurance that injuries are being avoided.
As a result, big firm after big firm has queued up to tell lawmakers that, if the bill goes through, they will simply use their contracting power to force small businesses to manage musculoskeletal and psychosocial risks anyway. Or they will avoid engaging those firms altogether.
The bigger picture here is that, even under the current laws, New Zealanders are six times more likely to die on the job than Brits, and nearly twice as likely as Aussies. But Van Velden is determined to weaken even further the already-minimal guardrails protecting workers. Her refusal to listen to counter-arguments suggests that, far from being a pragmatic response to so-called red tape, the bill is just an exercise in ideological rigidity.
Conscious of this truth, some National Party MPs have privately made it clear that they don’t really like the bill. But they aren’t prepared to oppose it. So it will be left to a party with more spine – and indeed more common-sense – to overturn one of the worst pieces of legislation in recent memory.
The Post: Why community power could be the climate change revolution we need
People need change they can reach out and touch.
Read the original article in the Post
One of the biggest problems with the climate change agenda is that it presents itself to the public so often as a negative. Ask ordinary people what the fight against global warming involves and they’ll probably say: taxes, levies, curbs, restrictions. Paying more, being able to do less. No wonder it’s not a political winner.
Conversely, though, one can’t just paint the public a picture of the glorious, sunlit uplands of a climate-friendly world. People don’t believe it, climate activists tell me; it seems too abstract, too far away.
Much promise, then, lies in “mid-range change”: green shifts that feel neither negligible nor implausible. All the better, too, if this shift happens locally, creating change that people can reach out and touch.
Enter community energy: renewable power projects that are partly or wholly controlled by small groups of locals. Community groups can get their neighbours onside with wind and solar installations, build them alongside expert developers, run those facilities democratically, slash emissions, and redistribute energy revenues. It is, potentially, a win-win-win-win-win.
Such models are common in other countries. Over half of Denmark’s 7000 wind turbines are community-owned.
Hundreds of such schemes operate in the UK. And across the ditch, a 2023 report found tens of thousands of Australians supporting community power schemes, and tens of thousands of megawatt-hours of clean energy being produced.
Claudia Hodge from the Community Power Agency, an Australian NGO, tells me that when people can have a renewable energy project on their doorstep, “and they fairly benefit from it … they see that climate change can be a positive thing for average people … It really turns the intangible into something tangible in their eyes.” The “co-benefits” – the strengthened social ties that come from running schemes together – are also substantial.
Schemes with quintessentially Aussie names like Totally Renewable Yackandandah have installed community-owned solar panels and batteries, cutting locals’ power bills by two-thirds, boosting disaster resilience, and saving enough funds to pay for critically important local health services.
In inner-city Melbourne, community batteries – covered in street art, and situated right where people can see them – store solar power generated during the day and redistribute it during evening peaks. These batteries share energy even with renters and others who can’t install their own solar panels; they also make better use of the existing distribution network. Equity and efficiency: again, a win-win.
Back at home, Gareth Cartwright of the Community Energy Network says New Zealand has more schemes than people realise – 30-40 “good” ones – but they’re typically quite small. And faced with a hostile regulatory set-up, most plans fail. “You have to be remarkably stubborn to get a community energy scheme through in New Zealand,” he says.
One success is Energise Ōtaki, which in 2020 built Rau Kūmara, the country’s first-ever community-owned solar farm, generating clean power for the local high school and wastewater treatment plant.
Energy revenues, Cartwright says, have been used to fund school scholarships, bike repair workshops and community gardens. Local clean energy “is one of the pillars that you build a community on”.
It can also be good business. Rewiring Aotearoa’s Josh Ellison says that although big commercial projects can be cheaper upfront, around 11% of the power generated is lost in transmission. Then there’s the corporate profit margins, and the cut taken by the lines companies and others.
Grid-scale projects will remain important, as will individual household installations of solar panels, as part of what Ellison calls a technological revolution happening behind the scenes.
But community schemes are extremely powerful, he says. “People can trust their community and their neighbours about what to do. It’s no longer someone [from outside] trying to sell them something.”
Energy regulation, though, keeps getting in the way. Physics-wise, it’s clearly cheaper and more efficient to store power at the community rather than household level, Ellison says.
In practice, though, New Zealand makes it expensive to do so: someone in Kaikohe would get charged the same price for drawing from a neighbourhood battery as they would for taking power from a South Island hydro station. And anyone storing their household-generated solar power in a community battery would get charged for taking it back out.
Regulation, Ellison says, “hasn’t kept pace with technology”. And initiatives like Ara Ake, the national energy innovation centre, had their funding abruptly cancelled in this year’s Budget.
So much needs to change, from power pricing and regulation on down. Every country with a thriving community power system has built it with (temporary) state subsidies.
Government underwriting could help give communities security of returns, while the co-benefits of community schemes could also become a criterion for state investment. And despite all the barriers, people like Cartwright are cautiously optimistic.
Enthusiasm for community schemes is growing, he says, with iwi and hapū often in the lead. “It’s slow, and it needs a lot more leadership than it’s getting at the moment. But it’s definitely starting to shift.”
The Post: The bleak picture for the children for whom there is no more
Young people’s hardship rates are expected to remain high.
Read the original article in the Post
Poor children, it appears, don’t deserve security.
The Government told us this Budget was all about “securing the future”. And for some that will ring true.
There’s more than $2 billion for defence procurement – so if you like maintaining frigates, your future is secure.
There’s $1.8b for extending the Waikato Expressway – so if you want to drive more rapidly to Piarere, your future is secure.
There’s $500m extra for Corrections – so if you like locking more people up, your future is secure.
If you’re a child living in poverty, however, your future looks just as bleak after this Budget as it did before.
Currently, one child in eight– 12.6%, to be precise – lives under the poverty line, their families struggling to survive on less than half the typical household’s income. Many spend their days in cold, damp, overcrowded homes, in households where wages and benefits can’t keep ahead of bills, where fridges are virtually empty and there isn’t even a quiet place to study.
The Budget forecasts a temporary fall this year in child hardship, owing to the $50-a-week fuel relief package for certain families. But once that brief respite is removed, child poverty will resume rising until, in 2030, it hits 12.6% – exactly what it is now.
Once housing costs are included, even more children – 17.8%, or nearly one-fifth – are currently living below the line. The projection for that figure in 2030? – 17.8%.
At this point it becomes abundantly clear that the Government’s plan for child poverty is, in the long run, to do precisely nothing. As the head of the New Zealand Council of Christian Social Services, Alicia Sudden, said today, “There is no security in Budget 2026 for our most vulnerable children.”
At this point, it also becomes clear why the Government chose last week to announce its rent hikes for state-house tenants: to stop those hikes from contaminating the Budget coverage. And don’t buy the line that there is something equitable about raising rents $31 a week for those in state houses while giving up to $30 a week to those renting privately.
As Ministry for Social Development figures show, 32% of families who get the Accommodation Supplement – the worst-off private renters, in other words – live in poverty. The equivalent figure for state-house families? – 47%.
State house parents, in short, are the poorest of the poor – and this Government has elected to cut their budgets by another $1500 a year. (And then to pour that money into the Accommodation Supplement, a sizeable proportion of which flows directly into landlords’ pockets.)
The Budget does boast a few spots of light, in fairness. Another 20,000 places in secondary school “trades academies” will offer better vocational pathways for young people.
The free school lunches scheme continues, albeit in a form so badly vandalised by David Seymour that, according to BusinessDesk, one in three of its meals gets rejected by students and tossed in the bin. There is also $93m to help sole parents into work.
But much of the Budget’s spending gets things back to front.
The Government has allocated money to tackle truancy and children’s “avoidable” trips to hospital with things like rheumatic fever. But despite ministerial claims to the contrary, neither of these is primarily a cause of poverty: each is more fundamentally a symptom.
Kids often drop out of school because they have to get a job to help prop up the family finances; and they end up in hospital with respiratory diseases because of damp homes and their parents’ inability to afford heating. Increases in family income, meanwhile, have been shown to reduce the very same child abuse that the Budget is spending over $90m to address.
On a similar basis, the Budget’s $9.5m a year for foodbanks and related initiatives might be superficially welcome. But once again it treats the symptoms, not the causes – which are, on the one hand, inadequate wages and salaries, and on the other, skyrocketing grocery bills courtesy of our price-gouging supermarkets.
This Budget is, like so many before it, a monumental failure. Ministers typically argue that slashing child poverty by half – officially costed at $3b a year– would be far too expensive.
But the long-term costs of child poverty are estimated to be around $14b a year, in worn-out bodies, worse school results and lost productivity. Failing to address child hardship is one of the greatest false economies we have ever known.
There is a saying, often attributed to Mahatma Gandhi, that the true measure of any society can be found in how it treats its most vulnerable members. And this is why we must look at the Budget through the lens of child poverty.
The Budget’s more technical elements – spending allowances, surplus projections, debt ratios and the like – have their own importance, but to a far lesser degree. We won’t have a flourishing society and economy, after all, until we decisively lift children out of hardship, and ensure that no-one’s talent is stifled through hunger and disease.
The Post: A shift in voting power and how to give young voters hope
Young people are a growing power bloc, but need reason for optimism.
Read the original in the Post
Farewell, fees-free, we hardly knew you. The policy of waiving one year of tertiary education charges, placed on the political chopping block this week, was a sad, short-lived symbol of the worst of the Ardern era.
Making tertiary courses completely free, as many European countries do, might have been transformative: a bold statement about the societal value of higher study that could also have allayed poorer households’ debt fears. The half-hearted offer of just one year’s discount achieved none of that.
Its abolition, though, begs a bigger question: what hope can politics offer young people in this uncertain world? The coming generations face limited job prospects, large debts, unaffordable housing, and severe anxiety about runaway climate change and AI.
Fees-free, for all its faults, did at least attempt to soften that dynamic. And although some young people appear to have lost all hope, there are still political rewards for the party that can speak to that generation and those fears.
We tend to think of politics as dominated by Baby Boomers, but those born in the two decades from 1946 will conceivably make up no more than 900,000 eligible voters this year. Over one million adults, by contrast, might be Millennials, currently aged 30-45, with a further 800,000 or so Gen Zers aged 18 to 29.
Even allowing for historically lower turnout rates among young voters, there could plausibly be more Millennials going to the ballot box than there are Baby Boomers. This could mark an epochal shift in politics – but only if parties give those younger generations something to vote for.
Not everything that worries young people, of course, has an immediate solution. Take house prices, currently around six times average incomes, according to the Interest site.
No politician is going to crash the housing market overnight, so the only semi-plausible hope of restoring affordability would be a gradual, one-percent-a-year decline in prices. Assuming normal wage growth, that would return average house prices to roughly three times average incomes – the traditional benchmark of affordability – by around 2040.
That’s still a long way off. But signalling intent – talking openly of lowering prices, as housing minister Chris Bishop has bravely done, or freeing up more inner-city land for development – would at least show young people that help is on its way.
Politicians could also make long-term renting a more secure option, although Bishop’s reinstatement last year of no-fault evictions, allowing tenants to be evicted without any reason, was a retrograde step.
Another deep well of concern for young people – and one that, alongside unaffordable housing, explains why so many have left for Australia – is the struggle to find work.
Currently, one young person in seven – that is, 14.4% of those aged 15-24 – is a NEET: not in education, employment or training. Having hit its highest level since the GFC some 17 years ago, this is a figure that should have the Beehive’s alarm bells ringing wildly.
Yet the Government’s response thus far has fallen short. When I spoke to young West Auckland jobseekers for a research project last year, they described the dispiriting effect of being forced to fruitlessly apply for role after role.
One told me: “Eventually, over time, you lose hope. You develop a [negative] mindset.” But if they didn’t submit those applications, they risked having their benefit cut.
This is how our welfare system fails young people: too much punishment, too little support. And that’s why the think-tank where I work, IDEA, has proposed a “circuit-breaker” job guarantee: a temporary, state-funded job placement at a firm, NGO or government agency, to be made available to the 5000 or so youths who’ve been unemployed for over a year.
The idea is to break the incipient cycle of long-term joblessness by offering those young people something positive: work, its related routines and disciplines, CV points, the chance to learn on the job, and, above all, a much-needed confidence boost. Similar schemes overseas have lifted long-term employment rates by as much as 27% and had a hugely positive return on investment.
The savings from scrapping fees-free could easily be redirected towards such a scheme. And as AI starts to eat into young people’s job prospects, we’re going to need more initiatives to bridge the gap between 21-year-olds’ core skills and the advanced roles that will increasingly dominate the job market.
That bridge could be provided by longer diplomas and enhanced apprenticeships, all paid for by some combination of the state and the firms that benefit from AI’s efficiencies. And if, as above, house prices fall, sparking greater investment in economically productive businesses, there might be more jobs available in the first place.
Whatever the exact policy mix, though, the underlying point remains clear. Politicians have to offer young people a reason for hope – and with it a reason to vote. Otherwise they can expect to see an ever-growing number of one-way plane trips to Australia.
The Post: Right-wing dysfunction offers the left a chance. Will they take it?
Voters appreciate unity and order.
Read the original article in the Post
The feud between National and New Zealand First has escalated so quickly that it’s hard to keep track of who has accused whom of what. Winston Peters says Christopher Luxon is “imprudent” and, by implication, a threat to orderly foreign policy. Nicola Willis has, in return, called him a “confused” 81-year-old whose words can’t be trusted.
Luxon likewise says Peters is acting in bad faith and against “the national interest”. Peters, meanwhile, is merrily releasing emails embarrassing to the prime minister – and without telling him first.
Clearly, then, the Great Differentiation has begun, as each party seeks to boost its own popularity ahead of November’s election. In so doing, they risk replaying the fabled prisoner’s dilemma, in which two people awaiting trial could get away with just one year in prison if they both stay silent, but will face two years if each of them – lured by the prospect of going free – turns informant on the other.
Given how much the public hates disunity, National and New Zealand First could maximise their combined vote share by maintaining a veil of conviviality. Driven, instead, by individual motivations, they may emulate the prisoners’ worst outcome.
ACT, for their part, have sensibly stayed quiet during this latest stoush. But last election they and New Zealand First were at each other’s throats, their leaders trading insults of ever-increasing juvenility, so David Seymour will presumably join the fray before too long.
All of which opens up an opportunity for the left. As others have observed, MMP elections are often determined by who can best make the “coalition of chaos” label stick. This has even greater force when, as left-wing strategists observe, the public has completely lost patience with partisan infighting.
The right are currently doing their level best to pin the “coalition of chaos” label on themselves. To profit, however, the left bloc would have to present a more united front.
Such unity would have historical precedents. In 1999, Labour and the left-wing Alliance Party formally campaigned together. In 2017, the Greens and Labour jointly announced Budget Responsibility Rules that they would follow post-election.
These agreements, though, stemmed from specific personal allegiances: in 1999, Labour’s Helen Clark and the Alliance’s Jim Anderton were old comrades, while in 2017 the Green Party’s James Shaw and Labour’s Grant Robertson were ideologically aligned.
Do those circumstances apply now? The Labour and Green leadership teams certainly have a cordial relationship, and meet regularly to discuss strategy.
The fruits of this relationship can occasionally be discerned. Back in 2024, the parties put out a combined statement opposing deregulation of early childhood education. They also staged a joint press conference at Waitangi this year, aiming to show they could “work constructively together”, as Labour leader Chris Hipkins put it.
Thorny questions remain, however. What, for instance, actually constitutes the left “bloc”? The 2024 joint statement notably included Te Pāti Māori; similarly, the left leaders’ meetings used to involve the likes of Rawiri Waititi.
Following Te Pāti Māori’s public meltdown last year, however, it has conspicuously not been part of the joint manoeuvres. Nor is this likely to change while its internal turmoil continues.
Some would say the left can’t win without Te Pāti Māori, and that may prove to be true. But polling data shows the combined Labour-Greens vote rising steadily this term, from an average of 38% after the last election to roughly 45% now. A shift of a couple of percentage points, amidst an ongoing fuel crisis, could see them home.
Equally, of course, Labour may want to keep the door open to New Zealand First, an outfit some of its MPs find more congenial than Te Pāti Māori (and, indeed, the Greens). For all that Winston Peters has dramatically hardened his rhetoric against Labour, some still believe there’s always wiggle room.
Labour also remains congenitally nervous about tax, an Achilles’ heel still despite the reasonably successful launch of its CGT “lite” policy. That dictates a clear demarcation from the Greens and their wealth-tax plans.
And, though cordial, the relationship between the Labour and Green leaders isn’t comparable to the Clark-Anderton bond or even the Robertson-Shaw connection. So a formal coalition isn’t in prospect. Even something a step down – a joint policy launch, say – seems unlikely.
But a united front isn’t purely about policy. It’s just as much about tonal issues: whether each party’s approach is simply to say that it occasionally disagrees with the other’s plans – or whether, conversely, it starts characterising those plans as “madness” or “selling-out”.
It’s also a matter of a shared diagnosis of the problem and a coherent narrative about the solution. The left has famously secessionist tendencies. Set that aside, though, and it would have a much stronger pitch to a grumpy public that’s utterly fed up with political bickering – and desperate for leaders who can get stuff done.
The Post: Reckless approach to research will ensure our slow decline continues
Cuts to science budgets are ultimately self-harming.
Read the original article in the Post
Productivity, as the economist Paul Krugman once said, isn’t everything – but in the long run, it is almost everything. Producing more for each hour worked increases prosperity, allows people to spend more time with their families and communities while maintaining their standard of living, and can lay the foundations for a less environmentally damaging economy.
Virtually everyone agrees that increased spending on research and development – the creation of new knowledge, products and services – is vital for that enhanced productivity. It is alarming, then, that the last prime minister to take this subject seriously was Helen Clark.
In the 2000s, she lifted the government’s funding for R&D from around 0.3% of GDP to 0.4%, an increase worth hundreds of millions of dollars. It hit nearly 0.5% a few years later but has fallen steadily since, slumping back to 0.3% two years ago.
These data come from a presentation earlier this week by Victoria University emeritus professor Jonathan Boston. Other reports produce slightly higher figures, but either way we are woefully behind the average OECD government, which spends around 0.7% of GDP on research and development.
One might think that our current ministers, who talk incessantly about economic growth, would want to dial up that spending. Not so.
Boston estimates that, on the current trajectory, state funding for R&D will fall by around 10% over four years, after adjusting for inflation. Future Budgets might alter this path: but given the current obsession with cutting spending, who would bet on that?
The previous Labour government had a target for increasing New Zealand’s total spending on R&D – including not just state funds but also business investment – to 2% of GDP. But Shane Reti, while he was still science minister, abandoned that target, dismissing it as “a slogan”.
The result is that our total investment languishes at around 1.5% of GDP, when other small economies – think Denmark, or Singapore – spend literally twice as much. To catch up with them, and become the modern, dynamic, innovative nation we always say we are, we would need to invest – across government agencies and businesses – another $6 billion a year.
And it’s not just economy-focused research that’s being downgraded. This week three senior climate scientists warned that, even as the damage from climate-change-induced floods was ramping up, funding to better predict such disasters was winding down.
Researchers need to examine the compounding risks from a warming atmosphere, rising sea levels, melting snow-packs and extreme rainfall events. But funding for that kind of inquiry has been axed, with no obvious replacement.
Last year, the Government’s budget cuts forced the removal of Earth Sciences New Zealand’s specialist climate modellers, a team of people who established how global trends would play out here. The obvious risk is that we end up flying blind into a world of growing disasters.
Dr Lucy Stewart, who heads the association representing Kiwi researchers, estimates we’ve lost a staggering 700 scientists in the last couple of years. Andrea Bubendorfer, a former Callaghan Innovation staffer, has even claimed to have seen ex-scientists suicidal and financially destitute, their jobs disappearing with nothing to replace them.
Others have gone overseas, in many cases never to return – because what would they return to? They know this Government doesn’t truly value research, and that it’s far from certain its successors will shift the dial.
Continuing its attacks on science, the Government has barred humanities scholars from applying to the $78 million Marsden Fund, the resources of which were vital to social science research in this country. Marsden-backed projects had examined crucial questions like why young people don’t vote, how to better understand men’s mental health, and which reforms could improve sexual consent.
The fund had also supported research into ethical approaches to AI – the kind of inquiry that, as technology increasingly dominates our lives, will only become more important. Even people like the New Zealand Initiative’s Michael Johnston, who thinks the Marsden Fund backed some “silly” projects, believe the solution was greater scrutiny – not a wholesale attack on the social sciences.
The Government’s intellectual vandalism is, in short, cutting investment in research that could support the economy, help us understand looming disasters, and build a better society. Too many ministers, it seems, don’t believe in science (certainly not when it’s inconvenient to their agenda), or are ideologically biased against state investment.
Too many New Zealanders, meanwhile, remain stuck in the old “No.8 wire” mentality, believing – and praying – that innovation will arise from lone individuals pottering in sheds, when increasingly it comes from state-supported industry clusters and large-scale centres of excellence.
The Government will, accordingly, suffer little political damage from its reckless cuts. And as scientists disappear overseas, natural disasters compound in unexpected ways, and our standard of living continue to slump, Kiwis will be left sensing vaguely that something is wrong, without ever really understanding why.
The Post: The unelected officials and how they’re defying our councillors
The relationship between officials and politicians urgently needs repair.
Read the original article in the Post
You may be startled to learn, dear reader, that the contracting-out of public services is for unelected officials, not elected politicians, to control. So too the question of whether councils pay their staff properly or not.
The latest story to suggest something is badly awry in our public bodies came this week, as The Post reported that unelected staff at Wellington City Council are apparently refusing to respect a resolution by councillors to investigate bringing services like cleaning back in-house.
Officials appear determined to instead press ahead with giving the cleaning contract to a private firm, telling The Post this is an “operational” matter. In other words: back off, politicians.
Unsurprisingly, Unions Wellington is threatening a judicial review if staff don’t respect the resolution, noting in a letter that outsourcing often fails, and issuing a reminder – obvious enough, one might think – that officials’ job is “implementing the decisions of the local authority”.
The incident is all the more alarming because the council has form here. Last decade, officials tried to argue it would be “illegal” for councillors to lift the pay of traffic wardens, cleaners and the like by mandating the Living Wage.
Pay policies were for officials to determine, supposedly. The Living Wage campaign had to roll out the big guns, in the guise of former Victoria University law dean Matthew Palmer, to make it clear to officials that they were totally out of line.
That he was right is demonstrated by a decade’s worth of experience, in which the Living Wage has not exposed the council to conspicuous illegality but has, instead, improved the lives of some of the city’s lowest-paid workers.
Grotesque over-reach is not limited to local officials, however. Central government agencies will rarely defy politicians explicitly, but they are perfectly capable of slow-pedalling policy they don’t like, delaying it in the expectation – often successful – of outlasting their minister.
They can also abuse their superior knowledge vis-à-vis politicians and, as a departmental CEO once admitted to me, carry on obstinately with previous work programmes even when a government changes.
At this point, it is tempting to start up talk of a “shadow” state, of “cabals” of unelected officials running the show and using politicians as their puppets. But there is fault on both sides of the fence.
It is hardly uncommon for ministers to ignore sound advice, insist on ill-conceived pet projects, bully officials and micro-manage initiatives. Back here in Wellington, former councillor and 2022 mayoral candidate Paul Eagle had to apologise for labelling officials “the Gestapo”. Many elected members overstep their bounds, bombarding staff with requests that pay no heed to the difference between governance and management.
The truth is that the relationship between politicians and officials is badly in need of repair, at all levels of government. Public servants often see political leaders as ill-informed and reactive, indulging the public’s worst impulses; for their part, elected members sometimes regard the bureaucracy as a left-leaning “blob” that imposes its own agenda.
At the heart of a restored relationship must be a public service that is transformed in two directions, simultaneously tougher and more pliable. Officials need to rediscover the art of genuinely free and frank advice; junior public servants often describe being told by their superiors not to put up certain arguments because “the minister won’t like it”. A ministerial advisor once told me he had to ring up agencies and tell them not to pre-censor material, because his office actually did want to hear all the options, even unpopular ones.
To give that more holistic advice, officials – at whatever level – will need to be better-resourced, benefiting from greater professional development, deeper specialist knowledge, less of the constant hopping from agency to agency, and enhanced job security for departmental CEOs so they can more readily speak truth to power. AI can help with the brute work of collating information and getting more quickly to the heart of the matter, albeit the more ambitious claims about its capacities should be treated with caution.
Part two of the transformation, though, is that, once its advice has been digested, the bureaucracy needs to be quicker and more effective in delivering whatever the politicians decide, however hare-brained that might be. No slow-pedalling, no subtle subversion. The sanction on politicians must come from the electorate, fallible and inattentive though the latter often is.
That’s a lot for any organisation to manage: change in one direction is hard enough, let alone two at once. But needs must.
And the responsibility for change doesn’t lie solely with officials. The conditions under which they work are set largely by the other partner in the relationship.
If, for instance, agencies are nervous about giving free and frank advice, it is because too many ministers have made it clear this can be a career-limiting move. The problems with officials start, ironically enough, with politicians.
The Spinoff: The government’s fuel crisis package looks weaker with each passing day
The list of exclusions grows and grows.
Read the original article in the Spinoff
They say two out of three ain’t bad, but Nicola Willis’s fuel crisis package will be doing well to achieve even that.
Of its oft-repeated aim to be “timely, targeted and temporary”, only the first point – a rapid response – has inarguably been achieved. As the Iran war drags on, the chances of its being truly “temporary” look slight. But it is the “targeted” element that is looking especially unsound, as the list of groups excluded grows ever-higher.
The true meaning of the word “targeted”, after all, is not “given to a small group of people” but “given to the right group of people”. And that does not seem to be the case here.
The package delivers an extra $50 a week to the 143,000 households who receive the In-Work Tax Credit (IWTC), a Working for Families payment notionally designed to defray the costs of employment. There’s no longer a requirement to work 20 hours a week to get the IWTC; Labour removed that six years ago. People are, however, still ineligible for the IWTC if they receive a benefit.
Yet many beneficiaries are also workers. On Jobseeker Support, for instance, people can earn $160 a week before their benefit starts getting clawed back, and somewhat more before it is fully “abated”, in the jargon.
The clawback rate, though, is 70c in the dollar, discouraging further effort. Many people are left in an intermediate zone, working but still receiving part of their benefit. They won’t get the IWTC – or, evidently, the extra $50 a week. So the fuel crisis package doesn’t even reach every low-income employee driving to work.
And even if they’re not commuting, people on benefits may still need to fill the tank. Willis’s government has strengthened work obligations, requiring beneficiaries to turn up for more Work and Income appointments and job interviews. Ministers, in short, are asking people to do something that often involves more driving, but will not reimburse them for the extra cost of that driving.
And as the New Zealand Council of Christian Social Services (NZCCSS) pointed out in an open letter to ministers, the fuel crisis doesn’t show up only in the price of fuel. Firms will pass on those costs in the form of higher grocery bills and other charges. And that hits non-workers just as much as workers.
Being part of Working for Families, the IWTC is also available only to parents. Those without children, whether on benefits or off, will miss out. Yet they too drive, whether to work or elsewhere.
The package’s exclusions keep piling up. The government has already admitted that half the children in material hardship – those, that is, living in families routinely going without the basics – will miss out. Again: “targeted” this is not.
The package is also somewhat self-defeating. Two of this government’s chief aims are to lift school attendance and to “encourage” (some would say “force”) beneficiaries into paid work. Yet the failure to help many poor families will leave those households struggling with the fuel bill for school runs and job appointments.
Another disadvantaged group is people with disabilities. As the NZCCSS points out, these households are especially reliant on transport, and often cannot use buses and trains. Rather than making life easier for them, the government is excluding Supported Living Payment recipients from the package – even as it reduces fare subsidies for the disabled community’s Total Mobility scheme.
Finally, the package excludes care workers without children, even though they can rack up huge fuel bills driving around looking after people in their homes. These are also the women denied pay equity by the abrupt cancellation of claims last year.
All up, it is hard to avoid the impression that a government already making life hard for the lowest earners has decided to double down, leaving those households out of the response to a crisis that affects everyone. Nor are ministers convincing when they say beneficiaries are already covered by a 3.1% inflation adjustment coming on April 1.
That is, first off, an adjustment for past inflation, not the current shock. Second, Child Poverty Action Group research shows beneficiaries with children are often $100-200 a week short of the income required to meet basic and social needs. They were underwater even before this crisis. Third, beneficiaries and other low earners typically face worse inflation than others, according to Statistics New Zealand, because staples rice in price more quickly than luxuries.
Extending the government’s package would, of course, cost money, and as we are running a deficit, that money would essentially be borrowed from private investors. That, in turn, risks adding to the annual $9 billion interest bill on government debt.
But not acting also adds costs. Many low-income Kiwis are barely coping, and the failure to support them through this crisis risks tipping them into outright collapse: relationship break-up, addiction, homelessness, other dysfunction. Child poverty already costs the country an estimated $17bn a year in long-term health costs, weaker school results, and lower productivity. The long-run consequences of leaving so many families unsupported could be far greater than any extra costs from borrowing.
The fuel package also reminds us of our repeated failures to build resilience into our social and economic structures. Our reliance on expensive foreign fuel would be lower if we had more EVs on the roads, better public transport, and more renewables. Firms would be less able to pass costs onto the rest of us if they faced more competition in sectors like groceries, energy, banking and insurance.
We didn’t make this crisis, but we left ourselves wide open to it. And, as ever, the costs of that failure will fall hardest on those least able to bear them.
The Post: EVs may get middle-class welfare – so what?
The clean car discount worked because we need urgent action.
Read the original article in the Post
Does New Zealand want to be like Russia? That’s the question the Government is raising as it consults on whether to abolish the clean car standard, a policy that levies fees on imports of high-polluting vehicles. This would align us with the only other OECD nation not to have a standard for vehicle emissions: the murderous kleptocracy that is Vladimir Putin’s Russia.
Even if National probably won’t scrap the standard, the mere contemplation of the act is mind-bogglingly bad. It puts us out of sync with the rest of the developed world: just look at Australia, a country we often try to align ourselves with, which is toughening its fuel standards and seeing emissions fall.
The oil crisis has also revealed the Government’s wider policies to entrench fossil fuel usage – scrapping subsidies for EVs, hiking road user charges (RUCs) for those vehicles, and making public transport more expensive – to be a colossal own-goal. New Zealanders are waking up to the brutal reality that the petrol they put in their tank – and, by extension, our $8 billion annual importation of fossils fuels – is a systemic weakness, one that leaves us vulnerable to overseas shocks.
That’s the way the fossil fuel industry likes it, of course. As the British columnist George Monbiot recently argued, oil can only be extracted in limited locations by highly capitalised companies, allowing a small number of mega-players to make mega-profits.
Solar panels, by contrast, can be placed in almost every community. Not only are renewables green, they’re democratic – and resilient. As Drive Electric’s Kirsten Corson puts it, “Sunshine, water and wind don’t get stuck on a boat in the Strait of Hormuz.”
The last major oil shocks, in the 1970s, were – ironically – the impetus for the first big global push on vehicle efficiency. We must likewise use this shock to wean ourselves off fossil fuels as rapidly as possible.
And we would be far better placed to do so if the Government hadn’t scrapped the clean car discount immediately on taking office. A logical counterpart to the clean car standard, the discount helped Kiwis buy low-emissions vehicles, putting the “(re)bate” into the clunkily titled “feebate” system.
It was hugely successful, boasting benefits two-to-three times its costs and being projected to cut 3-9 mega-tonnes of emissions by 2050. EV sales jumped to one in four.
Now, they’ve slumped back to one in 10. Our roads would plausibly boast tens of thousands more EVs – every one of them insulated from the oil crisis – if the discount had remained.
National loves to deride it as “middle-class welfare”. But such attacks are way off-target.
The feebate scheme was to be cost-neutral over its lifetime, as penalties on high-emitting vehicles – often paid by the wealthy – cancelled out payments on EVs and hybrids. And for all the talk of Tesla subsidies, the scheme’s most popular vehicle was the relatively modest Toyota Aqua hybrid, which received twice the grants made for the Tesla Model 3.
Overall, the biggest claimants were people buying vehicles worth $10,000 to $20,000. Technically “middle class”, perhaps, but hardly living the high life.
And the wider truth is that some “middle class” subsidies are unavoidable. Given the urgent need to restrain runaway climate change, we need policies that change behaviour quickly.
Because EVs create large spillover benefits to us all – lower emissions, less pollution – there’s a clear case for subsidising purchases. And when one looks at countries that have shifted away from fossil-fuel cars – Norway’s sales are now almost 100% EVs, while China has hit one-half and Britain and France one-quarter – they have all done it through subsidies.
National argues such subsidies are now irrelevant because new EVs are so cheap. But people still aren’t buying them in the same proportions as in 2023, a fact that probably has as much to do with psychology as economics.
People love a discount and a bargain. That fact, plus supportive RUC policies and general government positivity towards EVs, will have boosted feebate-era sales.
Another reality: even if brand-new $30,000 EVs are just as good as $30,000 fossil-fuel cars, most Kiwis can only afford something like $5000-7000 for a used car. And the second-hand EVs at that price often have inadequate range for busy families.
To get more second-hand EVs into the hands of ordinary households, we need a cascade effect from better-off people buying them new then on-selling them a few years later. Again, subsidies can do that.
What form that could take now is up for debate. The political will on the left is unclear.
Some experts would reinstate the fees and discounts, but leave out politically sensitive vans and utes. Others would subsidise the big corporate fleet purchases that get on-sold within a few years, creating that much-needed second-hand market.
The accusations would no doubt switch from “middle-class welfare” to “corporate welfare”. But so be it. This may just be what we have to do, for the planet and for our own security.
The Spinoff: The poll numbers that could spell death for National
When half the country thinks we’re on the wrong track, a government is in trouble.
Read the original article on the Spinoff
Polling of this kind normally spells electoral death. No government in the last 35 years has survived once most New Zealanders have come to think the country is “on the wrong track”. Yet this is the situation in which Christopher Luxon finds himself. Contrary to the promises of his 2023 election campaign, he has never been able to convince a majority of New Zealanders that the country is “back on track”.
Such poor polling has put an end to the hopes of three of the last four governments. Since 1991, pollsters Talbot Mills have – in various guises – asked the public a simple question: is the country on the right or the wrong track? And the results trace a fairly regular pattern.
For much of the 1990s, the public was relatively content under the reign of Jim Bolger, National’s “Great Helmsman”. But things went south soon after he formed his 1996 coalition with Winston Peters, and in the run-up to the 1999 election, as much as 62% of the population thought things were on the wrong track. The coalition promptly lost power.
By the early 2000s, Helen Clark’s Labour government was enjoying similarly rosy ratings – until the global financial crisis hit and people tired of her party’s direction. In the middle of 2008, over half the population were picking “wrong track” over “right track”. Clark lost that year’s election.
Her successor, John Key, and his lieutenant Bill English bucked the trend, in the sense that they kept the country in a good mood right up until – and during – the 2017 election, rendering Labour’s triumph that year all the more remarkable. Famously, though, that positivity did not last.
After sky-high pandemic-era ratings, reaching almost 80% approval at one point, Labour’s popularity crashed amid the cost-of-living crisis. By September 2023, over half the country felt matters were on the dreaded “wrong track”. And so they turfed Labour out.
So it is a big problem for Luxon that, aside from a very brief honeymoon, his government has consistently elicited a “wrong track” reaction from around half of all voters. Its ranking briefly rallied earlier this year, perhaps reflecting summer vibes and the first evidence of economic recovery, but it is unlikely that this lasted. An early March poll from another polling firm, Freshwater Strategies, had the “wrong track” vote on 55% and rising.
What does all this mean for the election? Clearly, the case against the government has been well established: the opposition parties have convinced the public that the government is favouring landlords and tobacco companies with tax cuts, unfairly targeting Māori, and failing to fix the economy. The rest of the time, the opposition has sensibly refused to interpose itself between Luxon and his public, letting his perceived charisma deficit do the job.
Normally, this might be enough to spell doom. Oppositions don’t win elections, as the saying goes: governments lose them. But normally it takes more than three years before the electorate feels the politicians they are evicting have had enough time to prove themselves. New Zealand hasn’t had a one-term government since 1975, and even then matters might have been different if Norman Kirk hadn’t died. Before that, one has to go back to 1960 to find a single-term administration.
No doubt this is partly why, despite the country’s appalling mood, most polls give the coalition at least a 50-50 chance of being returned to power. Negative sentiment is locked in a battle with the natural desire to allow a government more time.
That leaves the left needing to lift their vote share by another few percent. And that is not going to happen of its own accord. Although it now looks unlikely that a vigorous economic recovery will come to National’s aid, it is equally unlikely that the economy will significantly deteriorate, especially if Donald Trump rapidly walks away from his war in the Middle East.
Some left-wing NGOs, meanwhile, are trying to lift voter turnout, especially in light of the government’s moves to make registration harder. But it would be unwise for the left to pin too much hope on a massive surge in enrolments. Efforts last decade to locate the “missing million” of voters bore little fruit. And if people are to be convinced to vote, they have to feel like they’ll be voting for something.
If the left wants a chance, it needs to channel the ambient public anger embodied in the “wrong track” results – channel it, and turn it into hope. The Greens and Te Pāti Māori, whatever form the latter takes, will undoubtedly supply ideas and inspiration. The big question mark, as ever, concerns Labour.
The party is not unaware of the need to give voters something to cling to, some policy offering beyond a minimalist capital gains tax and a Future Fund that invests in Kiwi start-ups. The “small target” strategy of not getting between Luxon and his unadoring public has only so much road to run.
The party’s view, however, is that, given current economic turmoil, it’s not yet clear how much money any incoming government will have to play with, and consequently what a responsible opposition could promise. Nor does it think that, political obsessives aside, most voters are tuned in enough to hear what it has to say. Which may well be the case. But the result is that everyone is left guessing as to whether the party, and with it the wider opposition, can capitalise on the public’s foul mood.