Archive for the ‘Social Issues’ Category

National’s housing spokesperson Michael Woodhouse – delusional or outright fibber?

18 February 2018 Leave a comment



The recent Housing Report reveals National’s ineptitude when it came to homelessness and housing unaffordability. Even retiring baby-boomers do not escape National’s incompetence when it came to unrestrained migration; insufficient housing stock; spiralling speculation; and poorly-planned infrastructure to cope with a rising population;

It also showed home ownership had slumped dramatically since the 1980s – especially among Pacific and Maori people – and Auckland’s housing problem was created by a mix of population growth, partly fuelled by migration, and the construction and land development sectors “hindering” housing affordability.

It also pointed to a potential time bomb in the impact on housing affordability on the elderly, finding the proportion of older people who were living in mortgage-free homes had dropped from 86 per cent to 72 per cent since the 1980s.

The consequences are now plain for everyone to see.

And just in case some National voters have still missed the point;


from: Frank Macskasy <>
to: Dominion Post <>
Benedict Collins <>
date: 12 February 2018
subject: Letters to the editor


The Editor
The Dominion



The recent Housing Report commissioned by the new Labour-led Coalition is a damning indictment of the previous National government’s indifference and gross negligence to homelessness and housing unaffordability.

The report confirms a worsening housing and homelessness crisis which most New Zealanders saw happening before their very eyes.

In response to their appalling record, National’s housing spokesperson, Michael Woodhouse, told Radio NZ on 12 February;


“They acknowledge that social housing includes housing provided by NGOs [non governmental organisations] but then ignore that when they conclude that the number of state housing properties have gone down. Clearly that hasn’t happened, they’ve gone up.”


What is clear is that Mr Woodhouse is utterly clueless when it comes to State housing properties.

In the 2008/09 Annual Report, Housing NZ stated that it “manages a portfolio of more than 69,000 houses” (p4).

Nine years later, Housing NZ’s 2016/17 Annual Report revealed “we own or manage approximately 63,000 homes”. (p7)

Either Mr Woodhouse’s or my arithmetic is way out, because that is a 6,000 drop in State housing.

No wonder housing has become this country’s worst social crisis since the Great Depression.

This explains why Bill English still thinks they should be governing. Apparently he and his former ministers cannot count.


-Frank Macskasy

[address & phone number supplied]





Radio NZ:   Housing report paints ‘sobering picture’ of crisis

NZ Herald:  New Zealand ‘a society divided by wealth’ – new housing report

Housing NZ: Annual Report 2008/09

Housing NZ: Annual Report 2016/17

Previous related blogposts

National recycles Housing Policy and produces good manure!

Our growing housing problem

National Housing propaganda – McGehan Close Revisited

Housing; broken promises, families in cars, and ideological idiocy (Part Tahi)

Another ‘Claytons’ Solution to our Housing Problem? When will NZers ever learn?

Government Minister sees history repeat – responsible for death

Housing Minister Paula Bennett continues National’s spin on rundown State Houses

National’s blatant lies on Housing NZ dividends – The truth uncovered!






This blogpost was first published on The Daily Blog on 13 February 2018.



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Handouts to the Racing Industry? So no more homeless then?!




Deputy PM, Racing Minister, and de facto godfather, Winston Peters  announced on Sunday (28 January) that the New Zealand racing industry was due for tax-cuts for horse breeders and a taxpayer-funded all-weather horse racing track;



He’s promising the racing industry a multi-million dollar track that can be used even when its pouring with rain. Mr Peters says it is expected to cost around $10 million to construct.

It comes as several races throughout the country had to be abandoned.

The Minister says both taxpayers and the industry will be helping to pay for the new track.

Mr Peters is also promising tax relief for owners who are breeding horses for racing. He says the current legislation, which he delivered last time he was Racing Minister, isn’t working like it should.

This, at a time when homelessness in this country has been steadily rising since the 2006 Census;

The number of homeless people in New Zealand rose between the last two Census counts, a new study says.

The University of Otago study, which is based on Census data, said one in 100 were homeless in 2013, compared with one in 120 in 2006 and one in 130 in 2001.

The study used the Government’s official definition of homeless, which is people living in severely crowded houses, in motels, boarding houses, on the street or in cars.

Between 2006 and 2013, the rise in homeless people outstripped population growth.  New Zealand’s population grew by 4.8 per cent over this period, while the number of homeless grew by 25 per cent.

As Prime Minister Ardern said on TV3’s The Nation on 21 October last year;

“When you have a market economy, it all comes down to whether or not you acknowledge where the market has failed and where intervention is required. Has it failed our people in recent times? Yes. How can you claim you’ve been successful when you have growth roughly 3 percent, but you’ve got the worst homelessness in the developed world?”

For Winston Peters to be offering tax-breaks and taxpayer funded covered racetracks, at a time of critical need for boosting funding for housing, hospitals, mental healthcare, and other services is a return to the corporate cronyism we’ve experienced for the last nine years under National.

National’s corporate cronyism has included;



There is probably more. National’s nine years in office has been less free-market and more corporate welfare than Muldoonism at it’s height. They’ve simply been more adept at hiding it.

In 2013, when it came to throwing taxpayers’ dollars at The Hobbit, Winston Peters was scathing at National’s corporate welfare  largesse;



Peters even demanded that Warner Bros repay taxpayer’s money;

“Now the first movie has grossed more than $1 billion, Warner Brothers should repay the $67 million subsidy the movie moguls sucked from Kiwi taxpayers.”

After all the criticisms from Labour and NZ First at National’s corporate welfarism, the Coalition government has succumbed to the same folly of throwing money – our money! – at multi-million dollar businesses.

For an industry sector that turns over $1.6 billion, it beggars belief that they have their corporate hands out for taxpayer largesse and tax breaks. What other industry will be receiving tax breaks? Tourism? Wine and beer producers? Why not our nascent computer-gaming industry? Or Rocketlabs?

Key must be laughing his head off at this fiasco. After all the ‘stick’ given to Key and his National government for their corporate welfare, the Labour-led coalition have engaged in the same practice – only three months into their first term.

Was there no one with sufficient political nouse in Labour or NZ First’s Parliamentary offices to express reservations over this daft plan? That giving tax-dollars and tax-breaks to a “sport” enjoyed by predominantly affluent New Zealanders is not a particularly good idea? Especially when Labour and NZ First (and the Greens) made so much of New Zealand’s housing crisis during last year’s election campaign?

In effect, Peters has just handed the National Opposition a bloody big stick with which to whack the Coalition over their  heads. English and his minions will be gleefully strategising over how they can best use this corporate welfare to attack the Coalition.

National’s strategists have already started by launching this attack-website carrying negative messages;



Side-note: Interestingly, the website is done in Labour Party colours – not National’s own blue livery. The National Party is not even directly mentioned anywhere on the main page. (Though the “Privacy Policy” link will take you to the National Party website. The authorisation statement is by “G. Hamilton”, National’s General Manager – though few people would know that.)

The racing industry has complained that a covered race-track is essential to allow all-weather events to be held. If so, let the racing industry pay for it. The “Sport of Kings” should not be paid from the taxes of hard-working New Zealanders who expect essential services in health, education, conservation, housing, mental health, policing, etc from their hard-earned tax-dollars. Not enhancing horse-racing facilities.

For perhaps the first (and hopefully the only) time, I find myself nodding in agreement with far-right blogger and former Libertarian/ACT candidate, Lindsay Mitchell, when she wrote her own critique of Peters’ plans;

Today [28 January] Racing Minister Winston Peters apparently promised an all weather track at the cost of $10 million (double it for starters) and either promised or called for tax breaks because the industry (breeding in particular) brings in so much money.

If tax breaks can make one industry stronger, then they can make any industry stronger.

Government picking winners is a recipe for corruption and injustice. We cannot expect New Zealanders who have not a skerrick of interest in the racing industry to disproportionately pay taxes to advance it.

Tax breaks are not subsidies if they are applied universally. Reduce tax period.

You are a guardian of public money Winston. Not a private investor.

On the upside, I am looking forward to our Prime anti-poverty crusader getting it in the neck today over her government’s support for “rich pricks”.

I, for one, will not be defending this policy from criticism from the Right. Because with thousands of New Zealanders homeless and struggling in poverty, it is indefensible. Absolutely, utterly, indefensible.

If the Coalition government wants to assist the racing industry, and they are incapable of raising their own funds, then a suitable compromise is  available. The State could easily borrow on behalf of the racing industry and on-lend to the appropriate racing club. Governments with good credit ratings can generally borrow at lower interest rates than from the commercial banking sector.

But it would have to be paid back.

The responsibility of this Coalition government is simple: Putting roofs over homeless families.

Not roofs over race tracks.





NZ Herald:   Jacinda Ardern arrives at Ratana Pa in first visit by Labour PM since Clark

TVNZ:   Winston Peters announces a multi-million dollar all weather horse racing track is on the way

NZ Herald:  Homelessness rising in New Zealand

Mediaworks:  Homelessness proves capitalism is a ‘blatant failure’ – Jacinda Ardern

Fairfax media: Government denies MediaWorks loan

NZ Herald:  Filling the Cup – cost $500m and climbing

Radio NZ:  Farmers’ ETS exemption progresses

Fairfax media:  Federated Farmers say moving to ETS will cost primary industry $83m

Radio NZ:  Saudi sheep deal – MFAT didn’t provide legal advice on lawsuit risk Key says Government won’t add to NZ$30 million of support given to Rio Tinto to keep Tiwai Pt open

Fairfax media: $191m in public grants paid to Hollywood for Hobbit trilogy

Fairfax media:  Government called on to stand by existing irrigation contracts

Radio NZ:  Government defends Hobbit subsidies

Fairfax media:  Peters – Hobbit subsidy should be handed back

Otago Daily Times:  Peters signals intention to make ‘positive changes’

National Party: Let’s Undo This

Fairfax media:  Winston Peters back at helm of racing as a return to the old days is heralded

Youtube: Bad Taste

Other Blogs

Lindsay Mitchell:  Winston picking winners

Previous related blogposts

National Party Corporate welfare vs real welfare

National ditches environmental policies

ETS – National continues to fart around

“National Party Corporate welfare vs real welfare”

Corporate Welfare under National

The Corporate Welfare of Tiwai Point – An exercise in National’s “prudent fiscal management”?





This blogpost was first published on The Daily Blog on 31 January 2018.



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2017: Parting shots from the Right: tantrums, bloated entitlements, and low, low expectations for our Youth – rua

6 January 2018 3 comments




Bill English has low hopes for young New Zealanders.



Bill English – putting the peasantry in their place

When born-to-rule Tories – with a bloated sense of self-worth and entitlement – slip up and let us peasants know how they really view us – it is usually unsurprising to most on the Left.

Take, for example, Bill English’s candid admission that New Zealand’s lower wage rates were beneficial when it came to competing with Australia. On 10 April  2011, in an exchange with Guyon Espiner on TVNZ’s Q+A, English boasted of the benefits of low wages;

GUYON Can I talk about the real economy for people? They see the cost of living keep going up. They see wages really not- if not quite keeping pace with that, certainly not outstripping it much. I mean, you said at the weekend to the Australia New Zealand Leadership Forum that one of our advantages over Australia was that our wages were 30% cheaper. I mean, is that an advantage now?

BILL Well, it’s a way of competing, isn’t it? I mean, if we want to grow this economy, we need the capital – more capital per worker – and we’re competing for people as well.

GUYON So it’s part of our strategy to have wages 30% below Australia?

BILL Well, they are, and we need to get on with competing for Australia. So if you take an area like tourism, we are competing with Australia. We’re trying to get Australians here instead of spending their tourist dollar in Australia.

GUYON But is it a good thing?

BILL Well, it is a good thing if we can attract the capital, and the fact is Australians- Australian companies should be looking at bringing activities to New Zealand because we are so much more competitive than most of the Australian economy.

GUYON So let’s get this straight – it’s a good thing for New Zealand that our wages are 30% below Australia?

BILL No, it’s not a good thing, but it is a fact. We want to close that gap up, and one way to close that gap up is to compete, just like our sports teams are doing. This weekend we’ve had rugby league, netball, basketball teams, and rugby teams out there competing with Australia. That’s lifting the standard. They’re closing up the gap.

GUYON But you said it was an advantage, Minister.

BILL Well, at the moment, if I go to Australia and talk to Australians, I want to put to them a positive case for investment in New Zealand, because while we are saving more, we’re not saving more fast enough to get the capital that we need to close the gap with Australia. So Australia already has 40 billion of investment in New Zealand. If we could attract more Australian companies, activities here, that would help us create the jobs and lift incomes.

Perhaps realising he had dug a hole for himself, English added at the end; “…  and lift incomes“. Though of course, if “incomes lifted”, New Zealand workers would no longer be competitive with their  Australian cuzzies, according to his Bizarro-world “logic”.

In 2016,  at a Federated Farmers meeting in Feilding, English probably felt “at home” and sufficiently comfortable in his surroundings to let his guard down. English attacked workers again, trashing them as “hopeless“;

“A lot of the Kiwis that are meant to be available [for farm work] are pretty damned hopeless. They won’t show up. You can’t rely on them and that is one of the reasons why immigration’s a bit permissive, to fill that gap… a cohort of Kiwis who now can’t get a license because they can’t read and write properly and don’t look to be employable, you know, basically young males.”

A year later, English took a further swipe at New Zealand workers, effectively labelling them en-masse as “druggies. On 27 February 2017, he told the Parliamentary press;

“One of the hurdles these days is just passing a drug test. Under workplace safety you can’t have people on your premises under the influence of drugs and a lot of our younger people can’t pass that test.”

English’s startling (and offensive) generalisation came as a response to questions why National was allowing a flood of immigrant workers when 140,000 local workers remained unemployed.

Blaming others is de rigueur for National when facing one of their countless failures;



Some more blame-gaming;



And yet more…



Not satisfied with those digs at workers and the unemployed, English made it clear only four days before Christmas precisely what he thought of young people bettering themselves through higher education. Responding to Labour’s enactment of their election promise for one year’s free tertiary education – English lamented that “Government’s fees-free policy will ‘soak up staff out of McDonald’s’...”;



That’s right, folks. Bill English’s ambition for young New Zealanders is to get a job at McDonalds; work hard; and  – stay there. No higher education for you mini-peasants!

McDonalds New Zealand realised immediatley the implications of English’s derisory comment and quickly fired out a statement countering the former-Prime Minister;

“We don’t expect to see much impact as a result of the Government’s free fees policy.”

When a major business contradicts National – the political party ostensibly representing the interests of business – you know Bill English has screwed up. Essentially his brain was in ‘neutral’ when his mouth opened and words tumbled out.

It should come as absolutely no surprise that English is so harsh in his criticism. Labour’s one year free tertiary education is only the beginning. It heralds a gradual return to what  New Zealanders once enjoyed: near-free tertiary education.

It is another cog removed from the creaking neo-liberal system as it is dismantled, piece-by-rotten-piece.


According to Wikipedia;

[Bill] English went on to study commerce at the University of Otago, where he was a resident at Selwyn College, and then completed an honours degree in English literature at Victoria University of Wellington.

After finishing his studies, English returned to Dipton and farmed for a few years. From 1987 to 1989, he worked in Wellington as a policy analyst for the New Zealand Treasury…

Bill English undertook his tertiary education prior to 1987. Student fees/loans did not start until 1992.

That means Bill English graduated with his Commerce and English Lit degrees without having to pay fees or take  out massive loans. His tertiary education was (near-)free.

A job at McDonalds awaits him.





Scoop media:  Guyon Espiner interviews Finance Minister, Bill English

Fairfax media:  Bill English describes some Kiwis looking for work as ‘pretty damned hopeless’

NZ Herald:  Unions demand Bill English apologise for describing jobseekers as ‘pretty damned hopeless’

Fairfax media:  Bill English says employers are regularly telling him that Kiwis can’t pass drug tests

Twitter: Newshub – Bill English “soak up staff out of McDonalds”

Mediaworks:  Government’s fees-free policy will ‘soak up staff out of McDonald’s’ – Bill English

Wikipedia:  Bill English

Other Blogs

The Standard:  Kiwi workers are pretty damned hopeless – says Bill English

Previous related blogposts

John Key – Practicing Deflection 101

When National is under attack – Deflect, deflect, deflect!

National under attack – defaults to Deflection #2

National under attack – defaults to Deflection #1





This blogpost was first published on The Daily Blog on 1 January 2018.



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2017: Parting shots from the Right: tantrums, bloated entitlements, and low, low expectations for our Youth – tahi

5 January 2018 2 comments




Taking personal responsibility Mike Hosking-style



Former ‘Seven Sharp‘ presenter and National Party stooge, Mike Hosking, recently gave us an illuminating insight into how seriously he takes personal responsibility.

On an episode of ‘Seven Sharp‘, on 23 August 2017, Hosking said to his co-presenter, Toni Street;

“…you can’t vote for the Māori Party because you’re not enrolled in the Māori electorate.”
The statement was factually incorrect, and people rightly objected. The following day, Hosking made a half-hearted “clarification”;

The fact that anyone can vote for [the Māori Party] as a list party I automatically assumed we all knew given we have been doing this for 20 years… and it went without saying. So hopefully that clears all of that up.

It didn’t “clear all that up”. Not by a long-shot.

After a complaint was laid with the Broadcasting Standards Authority (BSA), the finding was scathing of Hosking. On 19 December, the BSA found;

The Authority upheld a complaint that Mr Hosking’s comments were inaccurate and misleading, and that the alleged clarification broadcast on 24 August 2017 was flippant and too general to correct the inaccurate information for viewers. Voters not enrolled on the Māori electoral roll can cast a party vote for the Māori Party, or vote for one of the 18 Māori Party candidates representing general electorates in the 2017 General Election.

In reaching its decision, the Authority recognised the high value and public interest in political speech during the election period, but emphasised the importance of ensuring audiences were accurately informed about election matters. It said Mr Hosking’s inaccurate comments were presented at a critical time, when voters required accurate information to enable them to make informed voting decisions.

“This was an important issue, particularly during the election period, and had the potential to significantly affect voters’ understanding of the Māori roll and of New ealand’s electoral system”, it said.

In considering whether orders should be made, the Authority commented on the important and influential role held by programme hosts and presenters,particularly during the democratic election process.

Note that the BSA wasn’t commenting on an opinion held by Hosking. Hosking did not say,

“…you [shouldn’t] vote for the Māori Party because X-Y-Z.”

He stated an incorrect fact;

“…you can’t vote for the Māori Party because you’re not enrolled in the Māori electorate.”

An example of “fake news” some might say.

Furthermore, the BSA found that Hosking’s “clarification” was;

…flippant and too general to correct the inaccurate information for viewers“.

Quite clearly, Hosking made a mistake.  Whether he genuinely believed that “you can’t vote for the Māori Party because you’re not enrolled in the Māori electorate”, or he mis-spoke, is almost irrelevant. The fact is that his statement – made on prime time television, with an audience of several hundred thousand people – was untrue. It couldn’t be any more untrue.

The BSA demanded;

… it would be appropriate for the broadcaster to publicly acknowledge the breach of the accuracy standard to its audience by way of a broadcast statement on air.The Authority directed that the statement be broadcast before the 2017 summer holiday break.

Which, by 19 December, was about four months too late. The election had been ‘done and dusted’ by the time the BSA made it’s ruling. Any damage to voters – who were unfamiliar with the intracacies of MMP – had been done.

Hosking could have “taken it on the chin”. But he didn’t, and he broke the cardinal rule for those in public life; ‘when in a hole, stop f—–g digging’!

Hosking kept digging, getting deeper and deeper in the cesspit hole he had dug for himself. Writing for the Herald on 20 December – the day following the BSA’s findings released to the public – Hosking reacted with the equanimity of a spoiled, pinot-sipping, Maserati-driving, rich brat;

My Christmas gift from the BSA, the Broadcasting Standards Authority, is I misled the nation. Sorry nation, I misled you.

I didn’t of course, but they don’t have a sense of humour, or indeed any understanding of the realities of broadcasting, like you shouldn’t take everything literally.


But the BSA was having none of it. And so sadly, once again, we have paid for a bunch of humourless earnest clipboarders to sit around pontificating and writing reports.

The irony being they decided a statement had to be made rectifying my outlandish behaviour, and it had to be done before Seven Sharp took a summer break.

They released their report yesterday – five days after the show had gone off-air. And they might have known the show had gone off air, because the final show got quite a bit of coverage for other reasons.

Then he added, in a final shot of petulance that only a ten year old could appreciate;

So what has been achieved here? Nothing. The show is finished. The election is over. I’ve quit.

He left out this bit; “…so I’m taking my ball and going home.”

Hosking wondered “why we have a BSA that busies itself with such nonsense“.

Tim Watkin, writing for The Pundit, was unimpressed;

Suck it up, buttercup. Take your medicine. Don’t whinge and claim to be misunderstood, just take responsibility. That’s the sort of advice often offered on talkback radio, yet Mike Hosking seems to have missed that memo with his ill-advised Herald column this morning on a Broadcasting Standards Authority ruling against him.

Watkin added that Hosking’s whinge in his on-going NZ Herald column was, in itself, an abuse of power;

This is dangerous stuff and a rather worrying abuse of power. When someone is sentenced by the Court in New Zealand, they don’t get a newspaper column in which to vilify the judge. And for good reason. Hosking may disagree with the ruling, but you suck it up and take your dues. That is another of the realities of broadcasting, and Hosking should realise that.

Yes, standards bodies get to pontificate; it’s their job. I know, as the digital rep on the New Zealand Media Council (until recently, the Press Council). The bodies exist to protect free speech, balance the power between the media and the audiences it serves and ensure those people with the megaphone act according to agreed ethics. As with anything we do in society, there are rules. If Hosking doesn’t like the rules, he can argue to change them. He can cry into his pinot at home.

But he doesn’t get to whine about them in print when he gets pinged.

Watkins is on the nail on every point made.

But it is illuminating that the Right – which fetishises personal responsibility to the  nth degree – is the last to take personal responsibility seriously.  Hosking demands personal responsibility from just about everyone else;




This is one the pitfalls of our hyper-commercialised mainstream media, when it sets up “media personalities” to pontificate to the nation on various issues. Such “media personalities” become an embarrassing liability when they get their feet firmly wedged in their oft-open mouths, having said something incredibly (a) stupid or (b) wrong or (c) both.

In this case, Hosking achieved (c): both. And worse still, his masters in the National Party must have been pulling their hair out in tufts. Hosking’s bullshit comment would have impacted badly on the Maori Party. How many votes did the Maori Party lose because of Hosking’s mis-information?

If they did lose a sizeable chunk of votes – was Hosking inadvertently responsible for the Maori Party losing their seats in Parliament? In which case, Hosking may have single-handedly denied National a fourth term in office by destroying one of their coalition partners.

“Own goal” doesn’t begin to cover Hosking’s incredible feat of self-destruction for his Party.

The role of  pundits  is to engage with the public and offer matters to think about and/or to inform us. On 23 August 2017, Hosking achieved neither of those admirable goals. Instead, he was sloppy. His “Maori electorate” comment was sloppy, and mis-informed viewers. His clarification was sloppy, treating viewers with thinly-disguised disdain.

And to make matters worse; it was abundantly obvious he couldn’t care less.

This should be an end to Mike Hosking’s career in broadcasting.





Broadcasting Standards Authority: Seven Sharp presenter’s comments about voting for Māori Party inaccurate and misleading, BSA finds

NZ Herald:  Mike Hosking – ‘Pontificating’ Broadcasting Standards Authority humourless earnest clipboarders

Newstalk ZB:  Mike’s Minute – What about consumer responsibility?


Mediaworks:  BSA has no sense of humour – Mike Hosking

Mediaworks:  Mike Hosking officially broke broadcasting rules with false Māori Party comments

Other Blogs

The Pundit:  Mike Hosking – You do the crime, you do the time

Previous related blogposts

Mike Hosking as TVNZ’s moderator for political debates?! WTF?!

Mike Hosking – Minister for War Propaganda?





This blogpost was first published on The Daily Blog on 31 December 2017.



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What I want for Christmas…

29 December 2017 Leave a comment



Now is the time of the year when we send in  requests to that mysterious red-garbed being at the north pole for ‘goodies’ of one sort or another.

This is my belated wish-list of gifts. But not gifts for myself. These are gifts for the whole of New Zealand…

Housing for all

As the Coalition’s Associate Finance Minister, David Parker recently stated;

“I have a pretty simple view of this. I don’t think that it should be an international market for houses. I think local homes are to live in.

They shouldn’t be commodities that we trade internationally. I think just about everyone who’s a foreign person buying into New Zealand – they’re a very, very wealthy one-percenter if you like. And I think that’s one of the excesses of global capital when you allow those sorts of interests to influence your local housing market.”

The majority of New Zealanders would agree with him.

Even our former pony-tail-pulling Dear Leader, John Key, was moved to lament seven years ago;

“Now, that’s a challenging issue given the state of the current law and quite clearly it’s evidentially possible and has been achieved that individual farms can be sold. Looking four, five, ten years into the future I’d hate to see New Zealanders as tenants in their own country and that is a risk I think if we sell out our entire productive base, so that’s something the Government will have to consider.”

Granted that he was referring to selling farms to foreign investors, but the same holds equally true for residential property. We literally could become “tenants in our own country” if housing is allowed to be a commodity traded by investor-speculators. Especially without hindrances such as Stamp Duty or Capital Gains Tax. In effect, our housing becomes the plaything of the wealthy, with our children becoming increasingly locked out of ever owning their own home.

Even domestic investor-speculators are having a deleterious effect on home ownership. As recently as March this year (2017) the Property Investors Club revealed that “Auckland investors account for a 43% share of all sales [and] first home buyers have dropped back to a low of 19%“.

When I open up the Christmas gift labelled “Housing”, I find;

  • A capital gains tax, excluding the family home, set at the corporate tax rate of 28%. Rentals are a business; we should tax them as such.
  • An increase of State Housing of at least ten thousand units.
  • Labour’s “Kiwibuild” policy taking off  like a rocket and providing affordable homes for all first-home buyers.
  • Entrenching Housing NZ  in legislation as a public service rather than an SOE; banning dividends or any other transfers from HNZ to central government; reinvest any gst paid by HNZ back into HNZ; banning sales of existing housing; guaranteeing tenancy for all families where children and/or young adults under 21 reside in the home.

Free education for all

One of the greatest scams sold to New Zealanders is that education is a “private benefit” and therefore should be paid for (at least in part) by young people.

This was never the case for Tories such as John Key, Steven Joyce, Paula Bennett, Judith Collins, Bill English, et al. Their university tuition was mostly free, courtesy of the State.

An educated population presented solely as a “private benefit” ignores the counter-factual; an un-educated population would be severely handicapped economically, socially, technologically and marked with deprivation on every level.

As a mind-experiment, imagine if every doctor, nurse,  and dentist remained in New Zealand after graduation, and in doing so, their debt was wiped. Who would benefit? Answer:

(a) doctors, nurses, and dentists,who would have no massive debts hanging over them

(b) the public, who would  enjoy their services

(c) central government, which would receive  doctors, nurses, and dentists’ taxation.

Now imagine if those same doctors, nurses, and dentists, all emigrated. Imagine if we were left with not one doctor, nurse,  and dentist in the country. Who would benefit? Who would lose out? Answer:

(a)  Losing out: the public, which would be deprived of their services

(b)  Losing out: central government, deprived of their taxation

(c)  Losing out: the entire country, as the economy, life-expectancies, child mortality, etc, all took a giant leap backwards

(d) Doctors, nurses, and dentists, who would still have massive debts hanging over them.

It’s abundantly clear that an educated population is not primarily a private benefit. It is a collective benefit that allows an entire society and nation to progress.

We used to have (near-)free tertiary education for those who wanted it – with a student allowance thrown in.

Then we had Rogernomics; seven tax cuts; and ended up with over $15 billion in student debt. High student debt has forced many graduates to go overseas. The previous National regime even implemented a policy arresting so-called “loan defaulters” at the border;



This is the craziness  we have arrived at: making criminals of young people for not paying for a service that John Key, Steven Joyce, Paula Bennett, Judith Collins, Bill English, et al, enjoyed for free.

And like a frog in a steadily heating pan of water, this craziness has grown incrementally until New Zealanders have have accepted this state of craziness as “the norm”.

It is not normal. It is as far removed from normal as one can get without permanent residency in the local psych unit.

I open the second Christmas gift. This one is labelled “Education”. In it, I find;

  • Fully funded Early Childhood Education; Primary Schools, and Secondary Schools. All school “donations” are dropped.
  • Increases to Vote Education funding is tagged to inflation/cost-of-living increases.
  • The mandate for  salary increases for teachers is handed to the Remuneration Authority, and is automatically double that of MP salary increases.
  • All university and polytech education is free-to-user.
  • All current student debt is wiped.
  • All criminal convictions for loan defaulters are wiped and their legal fees reimbursed.
  • All student debt amounts paid by graduates become a tax credit. Eg; a graduate having paid $30,000  in debt (including interest) will have a tax credit of the same amount. (An exception being those graduates who voted National and/or ACT. Their debt will be doubled. After all, they support user-pays. Let’s not disappoint them.)

Free breakfasts and lunches in schools

Europe does it. Sweden, Finland, Estonia, UK, Scotland,  and even India does it. They provide varying levels of free meals  for children at school.

The benefits are obvious; healthy meals are provide to all children regardless of social status or class origins. There is no stigmatisation as “coming from a poor family” when everyone is provided with the same service.

Child Poverty Action Group (CPAG) wrote in their 2011 report, “Hunger for Learning“;

Yet despite the ubiquity of food insecurity among students at Auckland’s decile 1 and 2 schools, children’s hunger is often portrayed as one of individual moral failure and stigmatised accordingly. (p17)

In all cases breakfasts were provided on a universal basis to all children who wanted one. Principals were very conscious of the stigma attached to targeted provision of meals, even in younger children. For schools working to build trust between themselves and the community principals felt that universal provision sent a message that children and parents would not be judged. (p24)

Anscombe (2009) notes that in the New Zealand context some schools  do not want to be seen as needing to feed children because of the stigma attached to low-decile schools. (p28)

The key argument against free provision is that it takes away parents’ responsibility to provide basics for children. Yet, as this report makes clear,  many families cannot afford to provide adequate nutrition for their children, and also, targeting risks stigmatisation, and it is clear from the interviews conducted for this report that this becomes evident in children well before they leave primary school. Stigmatisation risks missing children that need help (Sheridan, 2001). (p29)

In its estimate of the cost of food in schools in Scotland, the Scottish parliament made a number of observations pertinent to New Zealand. Among them were that a deregulated system led to poorer quality food, something the Scottish legislation sought to address; a universal system removes the stigma attached to targeted provision, improves take up and is cheaper to administer; universal provision helps build a healthy nation, and this was viewed as contributing to the economic, social and healthy wellbeing of Scotland as a whole; and nutritious school meals were recognised as lowering Scotland’s high rates of coronary heart disease, some cancers, and diabetes, and were seen as being of key importance for development and growth in childhood and adolescence (Sheridan, 2001, pp. 2-3). Other, more direct, savings included teacher time (teachers spend time teaching rather than trying to deal with disruptive behaviour) and savings associated with improved attendance. (p36)

One fact we are all fully cognisant of is that the moralising Right are only too willing and quick to jump on a soapbox and judge poor families for not feeding their children. The constantly parroted rhetoric is “can’t afford to feed them, don’t have them” – a subtle code  advocating class eugenics, and attempting to deflect from the real social problems we face.

Make school meals – like superannuation and hospitals – universally free, and that stigma vanishes because everyone’s children is treated equally.

After all, if it was good enough for former Social Welfare Minister, Paula Bennett,  to refuse to  measure poverty



…then it should be good enough not to measure which children should or should not qualify for free breakfasts and lunches in our Primary and Secondary schools.

I open my third gift, and it contains;

  • Free healthy, nutritious breakfast and lunch for every child in New Zealand.

Orphan medicines for all who need them

In the last few years I have reported on a small number of New Zealanders who have been denied life-saving medication because PHARMAC has insifficient funding to pay for these expensive drugs. Medication for diseases such as Acid Maltase deficiency, or Pompe Disease, are not funded and sufferers either have to pay huge sums – or slowly perish.

NZORD, the New Zealand Organisation for Rare Disorders, has repeatedly called for PHARMAC to fully-funded orphan drugs for rare conditions.

In August 2013, this blogger reported;

At a seminar in Wellington, Labour’s Health spokesperson, Annette King, announced her Party’s new policy to create a new fund for purchasing so-called “orphan drugs” – medicines – for rare diseases.

Labour’s new policy marks a turning point in the critical problem of “orphan drugs” which are not funded by PHARMAC, but which are a matter of life and death for people suffering rare diseases.

Ms King announced Labour Party policy on the issue of orphan drugs and the problem of lack of funding;


Annette King orphan drugs NZORD seminar

Health Spokesperson, Annette King, Wellington, 1 August 2013 – NZORD seminar


“So one of the things that would need to happen soon after an election would be the establishment of on implementation working group, which could be made up of clinicians; of patients; of community representations, and others,  to put in place the details and work on the criteria for access. I do believe that in separating the funding and operation of the orphan drugs policy from PHARMAC. It will let them get on with doing what they do really well, and I think in some ways it will free them to get the best they can for the most of us who don’t need special medicines. But it will mean that for those who have rare disorders, that there will be a fund around that.”

Ms King was advocating a separately-funded body that would over-see orphan drugs for rare diseases.

However, it has become apparent that budgetary constraints and fiscal time-bombs left by the previous, incompetant National government have put Labour’s policy in doubt.

Instead, the new Coalition government is faced with unfunded budget-blow-outs such as new frigates for the NZ Navy;

The cost of upgrading two of the navy’s frigates has blown out again – this time by $148 million. The project – originally estimated to cost $374-million – will now cost $639 million.

This, on top of an eye-watering, jaw-dropping $20 billion “investment plan”  for New Zealand’s military. The Fairfax article appeared to parrot the previous government’s spin with these opening paragraphs;

The Government for the first time has confirmed New Zealand is capable of launching its own cyber attacks as a deterrent to cyber terrorism.

It’s unveiled a $20 billion investment plan in defence force capability, which will see the military establish a new cyber support capability, bolster intelligence units and digitise the army on the battlefield, giving it network enabled navigation and communications systems.

Only further down the story was it revealed that the $20 billion would be spent on new warships, aircraft, and other military paraphernalia.

Meanwhile, health budgets are stretched with PHARMAC unable to afford life-saving medicines.

The next gift to be opened;

  • “orphan drugs” funded for all who desperately need them

There are many other gifts to be opened, but one particular one caught my eye. This one had no cost to it. It was totally, utterly free-of-charge…

Kiwi fairness

Wrapped up in plain brown paper,  and put away in a dusty attic somewhere for the past thirty years, is a little box. It appears unassuming and unremarkable.


It contains the most precious gift of all; our notion of Kiwi fairness; our identity of caring for others. We had it once, in abundance. We even used to march for it in our streets, for fairness, justice, and peace in far away countries.

In South Africa;



In South East Asia;



Even in our own backyard;




Wouldn’t it be refreshing if those 1,152,075 New Zealanders who voted for National in September this year, thought more of homelessness; child poverty; polluted rivers and lakes; under-funded hospitals, medicines, and mental health services; mounting student debt on our children, etc  – than for their bloated property values?

Wouldn’t it be better for us as a society if our distorted sense of hyper-Individualism – that bratty spoiled ‘child’ of  neo-liberalism and globalisation,  was pared back, and the needs of our communities put first and foremost?

The last gift I open;

  • The Kiwi identity of a fair go for all.

Without it, nothing else can be achieved. Perhaps that one is the most important of all.

A very Merry Christmas, festive season, happy new year, and family time for all,

irrespective of how you may choose to celebrate it.







NBR: Foreign Buyer Ban – it’s the enforcement, stupid

NZ Herald:  PM warns against Kiwis becoming ‘tenants’

Property Investors Club:  First buyers still missing out in Auckland’s most affordable properties

Labour Party:  Our plan to start fixing the housing crisis

NZ Herald:  Student loan debt – 728,000 people owe nearly $15 billion

Fairfax media:  Kiwi lawyer comes home from UK to find $16,000 student loan grown to $85,000

NZ Herald:  Woman arrested at airport over student loan debt

NZ Herald:  Third person arrested at the border over student loan debt, as Govt ramps up crackdown on borrowers

NZ Herald:  Student loan debtor arrested at border, more warrants sought

Radio NZ: Two dozen prosecuted for defaulting on student loans

Child Poverty Action Group: Hunger for Learning

NZ Herald:  Bennett slammed over child poverty claim

National Party:  29 fiscal time-bombs waiting to blow

Radio NZ:  Navy budget blowout – ‘Our sailors aren’t safe’ – Ron Mark (audio)

Fairfax media:  Defence White Paper – Government unveils $20b defence plan for new planes, boats and cyber security

Electoral Commission:  2017 General Election – Official Result


Bay of Plenty Times:  Inside Story – The student loan effect

Previous related blogposts

Terminal disease sufferer appeals to John Key (12 Nov 2012)

Terminal disease sufferer appeals to John Key – Update & more questions (28 Nov 2012)

Health Minister circumvents law to fulfill 2008 election bribe? (18 Dec 2012)

Johnny’s Report Card – National Standards Assessment – Compassion (9 Jan 2013)

“There’s always an issue of money but we can find money for the right projects” – John Key (20 Jan 2013)

“One should judge a society by how it looks after the sick and vulnerable” – part tahi (4 March 2013)

“One should judge a society by how it looks after the sick and vulnerable” – part rua (4 March 2013)

“One should judge a society by how it looks after the sick and vulnerable” – part toru (4 March 2013)

Opposition parties work together on “orphan drugs” (part wha) (10 Aug 2013)





homeless families living in a car cartoon


This blogpost was first published on The Daily Blog on 24 December 2017.



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So “throwing money” at poverty does work, according to National?

17 December 2017 2 comments



One of the most oft-used, parroted cliches in the right-wing lexicon…

Bill English said it;

The hard bit of that is reorganising Government – the way the Government works with our most complex families – because frankly, Government doesn’t do that good a job with people who have really serious needs.

So you shouldn’t expect waves of cash – that’s what everyone else is promising. We can tell you from years of looking at it hard, throwing money at intractable social problems won’t have an impact.”

And again he said it;

I suspect it will be a matter for public debate, because New Zealand First and Labour have a track record of throwing money at every problem and making no difference to those problems.

Paula Bennett said it;

Yeah well if throwing money was the answer to this problem then quite frankly we would see – you know the numbers are coming down significantly through those Labour years, because they put significantly more money into these organisations, but we haven’t seen fewer children being neglected.

And repeated it;

If I thought throwing an extra 30 or 40 dollars a week at beneficiaries would mean that those children were not abused and neglected, I’d be fighting with that with every inch that I’ve got. It is far more complex than that. Far more complex.”

Steven Joyce said it;

The Prime Minister set 10 challenging targets for public services in 2012. That is because we want results from spending, rather than just simply throwing money at problems.”

And again he said it;

Unfortunately, my dear friends at the TEU say we should keep throwing money at everything every time.”

Hekia Parata said it;

Unlike the Opposition, which is very keen to throw money at a problem…”

Gerry Brownlee kind of said it;

Labour’s first instinct is always to throw money at an advertising campaign, rather than fighting fire with fire.

And even National backbenchers like Melissa Lee added their ten cents worth and said it;

It is less about throwing money around on a problem and more about changing the way we work, so that the services we deliver are more effective.”

One of the most commonly parroted cliches from the rightwing of politics; “throwing money at the problem” – usually with the add-on; ” – doesn’t solve anything“.

Except, of course, when it comes to tax-cuts. Then it’s not so much “throwing money” at middle class and affluent voters – as labelling it a “reward” – as Joyce called it in May 2017;

The Budget 2017 Family Incomes Package will provide better rewards for hard work by adjusting the bottom two tax thresholds and lowering the marginal tax rates for low and middle income earners.”

Joyce’s proposed tax-cut wasn’t “throwing money” at families – it was described more like “… important that Kiwi families directly share in the benefits of New Zealand’s economic growth.

National ministers were adamant that “throwing money at problems… made no difference to those problems”. But – according to Joyce – throwing money at households through tax-cuts achieved a remarkable outcome;

The measures in this budget are expected to lift 20,000 households above the threshold for severe housing stress, and reduce the number of children living in families receiving less than half of the median income by around 50,000.

Perhaps there are two different forms of money being used; red money for the poor; blue money for the middle class? Perhaps National should have printed less of the red stuff, and more of the blue?

But what colour money was being thrown at invested in;

Obviously child poverty exists in this country. Despite former Social Welfare Minister, Paula Bennett, refusing to measure the size of the problem five years ago – by September this year, National’s (then-)new, Bill English was forced to concede that it was a serious crisis confronting our country. In the face of mounting pressure from a resurgent Labour, he finally admitted that at least 100,000 children were living in poverty;

The Package is designed to especially assist low and middle income earners, and will reduce the number of children living in families earning less than half of the median income by around 50,000. Labour showed their true colours by voting against it.

If we can get elected within two or three years we can have a crack at the next 50,000 children, getting them out of poverty.

Suddenly, it seems, National ‘discovered’ child poverty existed in this country. It’s amazing how focused a government can be at election time when opposition parties are nipping at their heels.

Perhaps we should have an election every year?

In 2015, National stole a policy page from the Left by announcing it would raise welfare benefits by $25 a week. (Actually, $23 per week after extra accomodation supplements were taken out. Can’t have “benes” wasting an extra $2 on milk, bread  or something equally silly.) Almost overnight, National went from “not throwing money at welfare” – to “throwing money at welfare”.

According to a Radio NZ report, an estimated  110,000 families, with  190,000 children, would benefit from the increase.

The result was a predictable (if slight) success: child poverty fell by 1%.

As reported by Teuila Fuatai for Newsroom;

According to the 2017 Child Poverty Monitor, released by the office of the Children’s Commissioner today, the number of children living in homes considered to be in income poverty has dropped one percent in the last year – from 295,000 (28 percent) in 2016 to 290,000 (27 percent) this year.

Other figures from the annual report, now in its fifth year, also show a dip in the number of children considered to be from New Zealand’s poorest homes – with 70,000 children (six percent) satisfying the threshold for experiencing severe material hardship, down two percent from 85,000 in 2016.


“In 1982, the percentage of children in families experiencing income poverty was 14 percent, compared to 27 percent now”, the report said.

Paula Bennett – who only five years ago stated categorically that “if throwing money was the answer to this problem then quite frankly we would see – you know the numbers are coming down significantly” – crowed about the success of a fall in poverty;

Judge Andrew Becroft has today confirmed that since the National Government increased benefits in 2015, there has been a drop in the number of children living in low income households.

This is great news and further consolidates National’s track record as a party that shows it cares, rather than just says it cares.

We were the Government that increased benefits for the first time in 40 years. Since 2010 we reduced the number of children living in material hardship by 135,000 and since 2011 we reduced the number of children in benefit-dependent households by 61,000.”

It’s “throwing money at the problem” only until it works. Then it’s a success story, according to a right-wing minister.

As if to allay any doubt, Children’s Commissioner Judge Andrew Becroft,  confirmed the obvious; that raising benefits helped those at the bottom, of the socio-economic ladder;

It’s the first time we can say that we’re sure that things aren’t getting worse; it’s the first time there’s been a small drop and it’s genuinely encouraging and cause for cautious optimism.

We’re probably seeing the first initial signs in terms of what the previous Government did, in terms of increasing benefit levels by $25 a week for families with children.”

Judge Becroft also attributed the fall in child poverty to dedicated hard work from community groups;

I think we have seen a real rise in the commitment by charities and NGOs and community groups. I think that is one of the untold stories; New Zealand, I think, understands the situation. There is much more of a humanitarian response. Communities are behind what is going on. Charities are doing good work. I think that is underestimated in all of this in terms of providing shoes, clothing, lunches, breakfast. I think the country as a whole is becoming much more involved, and I am encouraged by that.

When asked by The Nation’s Lisa Owen;

So that is charities. That is philanthropy. In terms of income poverty: barely a change. Charities can only give so much, though, can’t they?

Judge Becroft responded;

Yeah, that is true. I think the government has got the ultimate responsibility to put in a strong safety net.

Charities can apply band-aids like buying shoes for children or supplying school breakfasts. But it takes central government to lift incomes. Just as it took the previous National government to legislate to lift the wages (albeit over a five year period) of community support workers, home support, and aged-care staff.

Bennett was quick to claim credit  for  the fall in the number of children living in low income households by increasing welfare benefits.

It is time that National and other right-wing politicians abandoned their deceptive, emotionally-charged rhetoric that raising welfare benefits and other incomes is “throwing money at the problem”. Clearly it is not. Putting our taxes into unnecessary flag referenda, sheep deals for middle east businessmen, aluminium smelters, and cutting taxes for the rich – is “throwing money” away.

Constantly repeating the hoary “throwing money at the problem” cliche reminds us that the right is only too happy to use emotionally-charged rhetoric  to win public support. Even when it is a lie.

Putting money into alleviating  child poverty is not “throwing money at the problem”. The data has conclusively shown this to be a fact; additional money helps lift families out of poverty.

Ironically, by making such dishonest  utterances, they undermine their very real achievement in this area.

Shooting yourself in your own foot has never been so painful. Or stupid.





Mediaworks:  No Budget ‘waves of cash’ to fix NZ’s social problems – English

Parliament: Hansards –  Oral Questions – Questions to Ministers

Scoop media:  Paula Bennett – offensive to say poverty causes child abuse

Parliament: Hansards –  Oral Questions – Questions to Ministers

Otago Daily Times:  Call for funding ‘unrealistic’ – Joyce

Parliament: Hansards –  Oral Questions – Questions to Ministers

Scoop media:  Anderton’s party should pay back $72,585

Parliament: Hansards –  General Debate

IRD:  Budget 2017

NZ Herald:  PM defends $30m payout to Rio Tinto

Fairfax media:  Flag referendum – Where does the $26 million go?

NZ Herald:  Saudi sheep deal – No evidence of legal threat from Saudi businessman

NZ Herald:  Filling the Cup – cost $500m and climbing

NZ Herald:  Bennett slammed over child poverty claim

TVNZ: Bill English says National’s families policy will lift ‘50,000 children above that poverty line’

Mediaworks:  Newshub Leaders Debate – Bill English commits to poverty target

Radio NZ:  Welfare increases – what $25 buys you

Newsroom:  Dip in NZ’s child poverty rate a start  Confirmation National’s changes halt child poverty

Fairfax media:  Why we shouldn’t celebrate child poverty falling for first time in years just yet

The World News:  On The Nation – Lisa Owen interviews Judge Andrew Becroft

NZ Herald:  Government announces historic pay equity deal for care workers


Office of the Children’s Commissioner:  Child Poverty Monitor 2017 – Sustainable improvements needed

Fairfax media:  Why are you so afraid of tax?

Other Blogs

Boots Theory: No shit – money alleviates poverty

The Standard:  After nine long years National discovers there is child poverty in New Zealand

Previous related blogposts

Can we afford to have “a chat on food in schools”?

National dragged kicking and screaming to the breakfast table

Are we being milked? asks Minister

High milk prices? Well, now we know why

Poor people – let them eat cake; grow veges; not breed; and other parroted right wing cliches

Poor people – let them eat cake; grow veges; not breed; and other parroted right wing cliches… (part rua)

Once were warm hearted

An unfortunate advertising placement, child poverty, and breathing air

Budget 2013: Child poverty, food in schools, and National’s response

National on Child Poverty?!

On child poverty, to the Sunday Star Times

The Negotiated Pay Equity Settlement for Care Workers – beware the fish-hooks amidst the hyperbole

National’s Food In Schools programme reveals depth of child poverty in New Zealand

Tracey Martin – The Children’s Champion






This blogpost was first published on The Daily Blog on 12 December 2017.



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Land banking – capitalism’s weeping sore

10 November 2017 Leave a comment




Halloween came early for parasitic land bankers. On 30 October, new Housing Minister, Phil Twyford,  issued a bold statement that has barely been reported or commented on: land bankers are firmly in the laser-sights of the new Labour-Green-NZF coalition government.

At the same time  that Prime Minister Jacinda Ardern announced an impending ban on the  sale of existing homes to foreign investor/speculators – Minister Twyford  issued a clear warning to land bankers that the recently elected Coalition Government would be prepared to seize their land under the Public Works Act;


“You don’t want to have one land banker holding out a massive new development that’s going to deliver thousands of new homes.”


Minister Twyford was unequivocal;

“We’ve got a Housing Minister now that accepts there is a housing crisis. You don’t want to have one land banker holding out a massive new development that’s going to deliver thousands of new homes.

…You might want to have it in your back pocket, but you’d use it very, very sparingly.”

He said that the new government recognised the reality of the housing crisis and was  “going to throw everything at it“.

The National Business Review highlighted land banking in 2013, when Leith Van Onselen offered his “less regulation is best” ideological response to over-coming the  problem (I refuse to sugar-coat it by calling it an “issue”). His mantra consisted of freeing up more land; the removal of regulatory constraints on the supply of land, along with more permissive planning policies;

“…land banking – an especially baneful form of rent seeking at the current time – is more prevalent in situations where land supply is constrained and planning approval processes are slow and uncertain. Land banking is also only profitable where the value of land is rising faster than the cost of capital. And in the absence of physical barriers to land supply, land price increases above the level of inflation are driven primarily by policies and regulations that artificially restrict the supply of land.

It stands to reason, then, that the removal of regulatory constraints on the supply of land, along with more permissive planning policies and infrastructure provision, would increase competition amongst both developers and land owners, thereby driving down the cost of land/housing. The existence of high levels of competition would, in turn, make land banking particularly risky, as another nearby owner would always have the opportunity to move to the market ahead of the land banking firm.”

Whilst Van Onselen recognised the “baneful” nature of land banking, his proposed more-market “solution” is not without dire consequences.  In the “absence of physical barriers to land supply” by “the removal of regulatory constraints on the supply of land“, urban sprawl into valuable food-producing rural land creates new problems through unintended consequences. Interviewed on TVNZ’s Q+A on 29 October, Horticulture New Zealand CEO, Mike Chapman warned;

Horticulture New Zealand is calling on the new Government to protect locally-grown food as urban sprawl threatens valuable growing land. Its CEO, Mike Chapman, says the impact is already “quite extreme”.

“If we don’t, we’ll be increasing our imports – fresh, nutritious locally grown food will not be available, and at the moment, we don’t have country of origin labeling, so the consumers won’t know where they’re buying their food from. It could be from anywhere in the world,” says Mr Chapman.

Reliance on the “marketplace” to solve our housing problem can be a dubious proposition.

This is especially the case when commercial firms actively exploit a problem  for greater profits. This property-brochure from Guardian First National Real Estate  in Johnsonville, Wellington, illustrates that (some) companies are not above exploiting a problem for purely personal gain;


Guardian First National real estate johnsonville wellington


Note the reference to “Do up, develop or landbank?”

Perhaps one of the worst cases of land banking and profiteering was reported in 2013 by the NZ Herald;

A land banking business with a big piece of residentially zoned real estate on Auckland’s outskirts has made more than $6 million a year for almost two decades – doing nothing.

QV records shows Yi Huang Trading Company owns 39 Flat Bush School Rd, which it bought in 1995 for $890,000.

Now, this 29ha block is listed on the market for $112.6 million, promoted as “the land of opportunity, vacant but close to Barry Curtis Park”.


The sale has left developers fuming. They say land bankers are ruining the city and that the sale will be tax-free because the company has held the land for so long.

Conversely – and with some justification – land banking is also a necessary tool by those developers who actually intend to build on them.  As one project is completed, and another begins, the developer must ensure a constant supply of readily available land “in the pipeline”.

As Van Onselen reported in 2011, quoting from work by Professor Alan Evans, Director of the Centre for Spatial and Real Estate Economics at the University of Reading (United Kingdom);

…as well as causing delay and increasing uncertainty, the process of seeking planning permission lends itself to strategic thinking and behaviour… the lack of certainty created by [such] a system is that it encourages the possession by large developers such as volume house builders of land banks… which can be developed at some future time. A developer such as a volume house builder will seek to ensure continuity in the supply of sites for development so as to ensure that management, equipment and labour can be used efficiently… without being laid off or idle. Commentary on the financial pages of newspapers would suggest that a land bank of at least 3 years supply seems to be regarded as necessary for the financial health of a house builder… not having a site available for development at the right time can mean that a exorbitant price will have to be paid to buy one, in order to keep the firm in business…

Speaking on The Nation on 4 November, Housing Minister Twyford appears to be fully cognisant of this particular problem and showed little reticence to proactively intervene in the “market”;

“Because of capacity problems in the industry, particularly workforce issues, it is going to take us a little while to ramp up. And our modelling has always been based on the idea that in the first three years, we’ll probably deliver about 16,000 homes, and in the third year, we’ll start to hit the average of 10,000 a year. There are three main ways that we’re going to deliver KiwiBuild. So, the first is that we’re going to say and are already saying to the private sector, to developers and builders, if you’re doing a development and you think that some of the properties in that development – might be a set of townhouses, for example, somewhere – would meet the KiwiBuild affordability criteria and design specs, then come to us. We’ll look at them, and we could buy them off the plan, speeding up your development, taking some of the risk out of it, and ensuring that we get a supply of high-quality affordable homes for first home buyers.


One of the problems at the moment, actually, is that many of the apartment projects that are underway are having real problems with financing. So by the government willing to underwrite or buy units off the plan, that actually takes away some of the risk and uncertainty and will speed up those developments.”

This is precisely the kind of market-intervention which many progressives have been demanding.  Minister Twyford even spelled it out;

“So we’re going to intervene in the market to fix that market failure by building large numbers of affordable homes. That’s the job of government, to do that.”

The alternative? To do nothing as National allowed the free hand of the market to run it’s course, and unsurprisingly our housing crisis worsened. Journalist and commentator, Tim Watkin, painted an increasingly bleak picture of urban life in New Zealand in the early 21st Century;

“… what social service agencies are now reporting is a growing – yes, growing – group of Kiwis living in their cars or renting garages. Social workers in South Auckland to a person say they can’t remember it being this bad. Rents have risen 25 percent in five years and emergency houses are full.

If you can’t afford the rent, there’s nowhere to go. Except your car, or perhaps someone’s garage.

And this isn’t just extended families bunking down in a garage while they wait for a house, as we’ve seen for years. This is a new rental property market; people paying strangers to live for months, even years, in a garage. You won’t see it on TradeMe, but we’re talking about $300 or more a week. One family had been living in a garage for two years and are paying $380/week.

Wesley-Smith was taken to Bruce Pulman Park in Takanini by Manuaku East MP Jenny Salesa, where families and individuals can be found most nights near the public toilets, sleeping in their cars. Salesa says one car-dwelling family a week turns up at her office seeking help; half aren’t engaged with the Ministry of social Development.”

Watkins was merciless in his criticism of the capitalist exploitation of the housing crisis for selfish ends. Firstly with “mum and dad property investors”;

So it’s time for mum and dad property investors to ask themselves a few hard questions. If the cost of your borrowing is forcing people to pay rents they can’t afford, maybe you shouldn’t be in the landlord business. Even if you are only one stone in the mountain, have you borrowed too much to morally justify your investment?

But he reserved his most trenchant ire for parasitic land-bankers;

But even more in the gun are the property developers, especially those who are land banking in this market. It’s time to call out those land bankers and say enough.

Financially, it’s a no-brainer for them. Especially if they’re lucky enough to own land in a Special Housing Area with all the privileges of accelerated consents and greater intensification attached. You’re quids in, the government has put a premium on your land and land values are skyrocketing. So why go to the risk and hassle of actually building?

The answer: Because your land banking is making kids sick. It’s driving families into their cars. It’s increasingly immoral to fiddle while Auckland burns.

Auckland desperately needs houses and if you’re a developer sitting on land, then you’re putting your own finances ahead of the need of families to have a roof over their heads.

Watkins pointed out then Housing Minister Nick Smith’s response to land-banking;

Housing Minister Nick Smith denies that land banking is a problem in his Special Housing Areas.

Watkins was on the button; Nick Smith is in full Denial Mode when it comes to land-banking.

On 3 June last year, I lodged a OIA request with Nick Smith, asking;

1. Does the government keep a record of how much land is “landbanked” in New Zealand?

2. If the answer to Question 1 is “yes”, how much land has been landbanked in Auckland, Wellington, Hamilton, Christchurch, and Dunedin?

3. Please provide any Ministerial, Ministry, or Cabinet papers that relate to the issue of landbanking.

After nearly two months and reminders sent to Smith’s office, the Minister finally responded on 20 July. His response to my three questions consisted of  one paragraph;

“The problem with your request is that ‘land banking’ is a loosely used phrase a bit like ‘speculation’ that has no agreed definition. A person or company  may own a section of land and not build on it for some time for all sorts of reasons and there is no definition  of how long this is for it to be deemed land banking. We do keep track of the progress made on developments in Special Housing Areas and I refer you to the publicly available reports  that set out the progress on development of these areas (”

Remarkably, Smith added at the end;

“I can confirm that no information can be found within the scope of your request.”

Smith either has a badly-flawed, John Key-like memory – or he was being economical with the truth. Two years earlier, on 30 November 2014, Housing Minister Nick Smith had referred specifically to land banking, expressing his frustrations at the practice;

“The Government and the Council are determined to release sufficient land supply and we’re not going to allow land price inflation of the sort we’ve seen over the last decade.

I want the land owning development community to realise that the Government is serious with Council about freeing up land supply, and they cannot bank on ongoing high land price appreciation that has encouraged land banking over the last decade.”

As with the previous National government refusing to define and measure poverty, by claiming that “‘land banking’ is a loosely used phrase a bit like ‘speculation’ that has no agreed definition” Smith was clearly hoping/praying that public/media attention on this issue would fade away.

It was a forlorn hope/prayer. Pressure was mounting on Smith.

Indeed, three weeks prior to  writing to me insisting there was “no agreed definition” on land banking and “no information can be found within the scope of your request” –  he was threatening land bankers with seizure;



Despite insisting he had “no information” or  “definition” of the problem, Smith was considering seizing property from land bankers – something he recognised as running counter to National’s pro-capitalist kaupapa;

“If you look at many of the other governments in other parts of the world that have used those powers, they have worked effectively.

Yes, we are the National Party, but we have responded in a very pragmatic way to the challenges in Christchurch. And that has involved overcoming some of those pure views about property rights.

 We are pragmatic, and pragmatic answers are needed to the housing challenge that New Zealand has.”

Even Wellington’s Dominion Post – not a socialist ‘rag’ by any means – was vocal in it’s criticism of land banking and National’s inability to act. Their editorial on 28 March this year was scathing;

Smith himself once said it was “offensive” that an investor in Auckland could buy land in 1995 for $890,000 and put it on sale in 2016 for $112 million. “The biggest problem is Auckland is the issue of landbanking,” Smith said.

Smith’s approach to the problem was to rely on the special housing areas in Auckland, which allow for faster consents for large housing developments. Developers can face a “use it or lose it” clause which penalises them if they don’t lodge consent applications. His critics, however, argue that this rule doesn’t guarantee house completions.

And that is the problem with land-banking, it seems. It is merely a symptom of a deeper malaise, and fixing it might require radical changes. It remains to be seen what one city council can do by way of encouraging or scaring developers into building more affordable houses.

Some such as economist Arthur Grimes have suggested that the Government should use the Public Works Act to buy land for housing. This is a reasonable suggestion, draconian though it might seem. The housing crisis is so serious that radical measures of this sort have to be considered.

The National-led Government, however, with its deep allegiance to property rights and its natural sympathy for the business class, would never accept such a proposal.

Nick Smith’s  heresy to the most basic capitalist tenet – the supremacy of property rights – did not go unnoticed by Anthony Robins. Blogging on The Standard on 4 July last year, he astutely pointed out;

“I don’t often agree with the Nats, but I think there are (rare) circumstances where land bankers could be paid off, moved on, and the land put to use. But – the extinguishing of private property rights? Seizure of land? Just imagine if Labour had proposed it. There would have been an instant orgy of political and media outrage. Because it’s National though, there will be barely a whisper.

Robins’ comment had a prescient quality to it. A Labour Minister – Phil Twiford – has now threatened to do precisely what Nick Smith threatened (but never had the guts to actually follow through on).

By brandishing the Public Works Act as a ‘stick’, Twyford has put land bankers on notice. Either develop the land or have it seized by the State to house the homeless.

In a civilised society, for land bankers to sit on empty, buildable land whilst families are packed in over-crowded houses; in garages, or survive in vans and cars – is an affront to any notion of fairness and decency.

It would be like someone hoarding food in times of famine, to get a better price later.

And if Minister Twyford invokes the Public Works Act to seize land, the National Party should think twice before screaming in outrage. It would be sheer hypocrisy on their part.

For one thing,  former Housing Minister Nick Smith threatened precisely the same thing.

Secondly, the housing crisis is a legacy of the previous National government.  It’s their mess we’re cleaning up.

Use it or lose it, land bankers. The party is over.

Minister Twyford – let’s do this.





Postscript: Speaking of “legacies”

Meanwhile, National persists in it’s exercise in futility, maintaining their fantasy-charade of the “great gains made over the past 9 years“;



National’s denial is partly to blame why our horrendous housing crisis spiralled out of control.

During it’s nine years in office, National continued to point-blank deny  the social problems it faced. This continuing denial will ensure they remain in opposition for the coming decade.





Mediaworks:  Government prepared to seize land for housing projects

Radio NZ:  Foreign home buyers to be banned – PM

NBR: Auckland – the land bankers paradise

TVNZ: Q+A – Horticulture New Zealand CEO, Mike Chapman

NZ Herald:  Land bought in 1995 for $890,000 – owner will sell for $112m

Macrobusiness:  Why developers land bank

Scoop media:  The Nation – Lisa Owen interviews Phil Twyford  Bernard Hickey argues the Government and Auckland Council should ramp up their attempts to change the expectations of land bankers about constantly rising prices

NZ Herald:  Bennett slammed over child poverty claim

NZ Herald:  Government look at hardline measure to seize property for development

Dominion Post:  Editorial – Landbanking is a big part of the housing crisis

Twitter: National – “great gains made over the past 9 years


NZ Herald: Key admits underclass still growing

NewstalkZB: Demand for food banks, emergency housing much higher than before recession

Morgan Foundation:  How Minister Smith Could Deal with Land Banking

Morgan Foundation:  Would it be Crazy to Reduce House Prices by 40%?

Other Blogs

The Pundit: How Special Housing Areas are failing & the immorality of land bankers

The Standard:  National to seize privately owned land

The Standard: So there was a housing crisis after all

The Daily Blog: On calling out the excesses of capitalism

Previous related blogposts

Can we do it? Bloody oath we can!

Another ‘Claytons’ Solution to our Housing Problem? When will NZers ever learn?

National’s blatant lies on Housing NZ dividends – The truth uncovered!

National continues to panic on housing crisis as election day looms






This blogpost was first published on The Daily Blog on 5 November 2017.



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