Bill English

Question 7

There was only one question that was likely to turn into discomfort today.

People who breach suppressed matters receive a long or permanent ban. 

Bill, Len, thousands of new Auckland houses will be good, but it won’t solve the housing crisis

It seems Bill English and Len Brown are on the same page.

Len Brown thinks that housing prices have peaked in Auckland and it’s all because of his focus on ticky tacky little boxes.

Len Brown says signs that Auckland house prices have peaked as more apartments and affordable houses are built

However, he acknowledges the 8000 to 10,000 houses a year currently being built are short of the 13,000 to 15,000 a year needed in Auckland. Last month saw yet another net immigration record, with Auckland accounting for most arrivals.

Read more »

$1B surplus expected – Bill will be giddy [UPDATED]

The year ended on June 30, and the final accounts will be released around 1pm today.

Finance Minister Bill English said when he presented the Budget there could be a turnaround.

In Parliament yesterday he wasn’t giving anything away.

“A return to surplus was always a stretch target,” he said.

“Regardless of whether the annual accounts show a small surplus or a small deficit, the overall trend is in the right direction.”

Labour’s finance spokesman, Grant Robertson, expects the accounts will show a small surplus.

“It’s almost certain the Government will announce a surplus for the last financial year … that they only just managed to scrape it together is poor financial management,” he said.

Mr Robertson is forecasting deficits for the current financial year and the next, contrary to the May Budget’s projections for modest surpluses.

“National’s financial management will go down in history as one small surplus out of nine budget deficits,” he said.

Apart from the fact that having a surplus is better than a deficit, National are desperate for one to fund their 2017 election bribes policy initiatives.  Expect the purse strings to be finally released somewhat with announcements along the lines of “police will get an extra $500m over years starting in 2018”, and other inspiring stuff.

The budget squeeze has been on everyone, well, mostly everyone.  So teachers, nurses, police and the like are somewhat overdue for some relief, if not directly, than at least by the public sector getting a little more money to adjust for inflationary and demand pressures.

And crime, health and education on the back of a strong economy has 4th term written all over it.  Chuck in a few tax cuts, ACC reductions and some feel-good stuff, and the Left are going to need something Bigger than Dirty Politics and something even less probable than Kim Dotcom to upset National’s chances.



The reported budget surplus $414M.  

While the ACC account is in surplus by $1.6B.   It’s another smoke and mirror job.


Talks of bringing tax cuts forward are similarly a joke.  But you’ll have them.  It’s been part of the 2017 campaign strategy since the beginning.


– Peter Wilson, NZN via 3 News


Has Bill English woken up?

Looks like English has finally woken up to the fact that Councils cause significant harm to NZ, particularly where it concerns planning.

Yesterday he finally conceded.

English said the Auckland housing market had been the single biggest imbalance in New Zealand’s macro-economic system, with the housing market there taking around eight years to respond to a shock to demand.

“In part that is because changes to council plans can take years, in some cases over a decade. Resource consents on a housing development regularly take 18 months, including pre-application times excluded from the official statistics. When combined, those very real delays can exceed the length of the house price cycle,” he said.

“The point is that when the supply of housing is relatively fixed, shocks to demand – like migration flows increasing sharply as they have recently – are absorbed through higher prices rather than the supply of more houses. Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash.”

English said studies in the United States since the GFC had found that the most intensely regulated housing markets also had the highest house price volatility.

“That is, the steepest price increases and the sharpest falls are in areas where regulation is strongest,” he said.

Rules that prevented cities from growing and prevented workers from moving to the biggest cities also created an opportunity cost of lost GDP.   Read more »


Sledge of the Day


Regular readers may want to sit down, I’m about to praise Bill English.

Yes, that’s right, I don’t often praise Bill English, but this morning I feel forced to because of three short sentences from yesterday’s acrimonious flag debate.

“We’ve found the Greens to deal with, disruptful and ungrateful. It doesn’t matter what you do with them, successful or not, the effort is ultimately greeted with personal invective, grabbing all the credit and attacks on the National Party,” English said.    Read more »

Totally awesome

There are few people in politics who are truly awesome.

Most people involved are slimy weasels and very few wear their hearts on their sleeves.

One of Tony Abbott’s staff is one of those people.

One of the first words Malcolm Turnbull heard after being named Australia’s 29th Prime Minister on Monday night was a four-letter expletive, not fit for publication, hurled by one of Tony Abbott’s junior staffers.

The story of Richard Dowdy’s spill night insult has already become legend in Coalition staffer circles.

Mr Dowdy has been a staffer for Mr Abbott since late 2009, when the Member for Warringah knifed Malcolm Turnbull for the Liberal Party leadership.    Read more »

G20 overestimates economic performance – the slide has started

The G20 is truly the planet’s economic power plant.  When their performance as a group starts to slide, we all suffer

The G20 group of top world economies says global economic expansion was slower than had been expected but expressed confidence that a recovery would gain momentum.

“Global growth falls short of our expectations. We have pledged to take decisive action to keep the economic recovery on track and we are confident the global economic recovery will gain speed,” finance ministers and central bank chiefs said on Saturday in a draft communique after their two-day meeting in Ankara.

The group vowed to “carefully calibrate and clearly communicate our actions… to minimise negative spillovers, mitigate uncertainty and promote transparency” as key global economies search for robust growth.

The economic supremos also vowed to “refrain from competitive devaluations and resist all forms of protectionism”, following controversy over China’s unexpected devaluation of the yuan last month.

In English, they have publicly stated they will not wage economic war on each other in an attempt to arrest the backward slide.  That is, of course, until it suits one of them to do so.   Read more »

On immigration to the regions, Treasury to Bill English: You’re dreamin’

Mr English, Mr English, a phone call…some guy called Daryl Kerrigan is calling you:

The Government’s lead economic advisor warns a new policy aimed at attracting more migrants to the regions would achieve nothing.

According to documents released under the Official Information Act, Treasury told Finance Minister Bill English on July 16 the new Government measures were unlikely to help regional development.

The measures went to Cabinet for approval on July 20 and the increased bonus points on residency requests was announced on July 26. Under the revised scheme, skilled workers who take jobs in the regions or set up businesses there will have their points to calculate whether residency requests should be approved increased.

However, the July Treasury briefing to Mr English had warned the policy changes were unlikely to have a consequential impact for regional development.    Read more »

Smart move from Labour – a rare occurance

Either National do spend the money on improving the housing stock, or they don’t.

If they do, it’s a win for Labour, if National don’t they’ll hand Labour a stick to beat it with every time a single thing goes wrong.

A rare master stroke from the Red Team...of course it is housing so Phil Twyford will be involved somewhere and it might still swing in favour of the government.

Labour says money the Government got in dividends from Housing New Zealand (HNZ) should go into fixing its “unliveable homes”.

The Government took $90 million from HNZ over the past year, and even spending a third of that would help better the housing stock, Labour leader Andrew Little says.

“This is a disgrace at a time when children like Emma-Lita Bourne are dying in homes because of damp and cold while others such as Iriah Marama are suffering from respiratory diseases caused by black mould.

“For just $35 million, all of the state housing stock could be brought up to a liveable standard, but instead the Government takes almost three times that in dividends each year,” Mr Little says.

Letters released to Labour under the Official Information Act show the Government repeatedly pressured HNZ for dividends, including one for an immediate payment of $6 million higher than anticipated.

Mr Little says the average state house needs $600 work of repairs while the Government gets $1500 from each house in profit.    Read more »

Shut KiwiRail down

Labour MP Michael Cullen comments on his meeting with the SFO after the Privileges Committee, Parliament, Wellington, New Zealand, Monday, September 22, 2008. Credit:NZPA / Ross Setford

Labour finance minister Michael Cullen’s final act of economic sabotage was to buy a failing, gutted and highly over-priced train set in the form of KiwiRail.   As taxpayers, we’ve pushed well over a billion dollars into it.   And the news is only getting worse.

Finance Minister Bill English says KiwiRail hasn’t been able to generate the levels of income it was supposed to as part of the 10-year, $1 billion plan to turn the business around.

“They’ve found it very difficult to reach targets for growing their business.”

While some of it is explainable, with weather-related infrastructure problems and issues with customers like Solid Energy, some of it means further work needs to be done. Read more »