Labour-NZ First coalition deal

The coalition deal between Labour and NZ First was signed today by incoming Prime Minister Jacinda Ardern and incoming deputy Prime Minister Winston Peters.

From Stuff Live:

Key points from the NZ First deal:

  • $1b per annum Regional Development Fund
  • Re-establish the New Zealand Forestry Service
  • Review and reform of the Reserve Bank Act
  • Progressively increase the Minimum Wage to $20 per hour by 2020
  • A comprehensive register of foreign-owned land and housing
  • Free doctors’ visits for all under 14s
  • Free driver training for all secondary students
  • A new generation SuperGold smartcard containing entitlements and concessions
  • A royalty on exports of bottled water
  • Commit to re-enter Pike River
  • A full-scale review into retail power pricing
  • MPs allowed to vote on a potential referendum on euthanasia

Most of that looks fine generally.

Regions have been neglected and allowed to run down for the last three decades so could do with more help. However it will be a challenge to help regions help themselves rather that heap them with subsidies.

While increasing the minimum wage will help many low income earners it’s a risk, as it could backfire and result in a significant number of job losses, meaning some get more but some get less.

NZ First portfolios:

  • Foreign Affairs
  • Infrastructure
  • Regional Economic Development
  • Internal Affairs
  • Seniors
  • Defence
  • Veterans’ Affairs
  • Children
  • Forestry
  • State Owned Enterprises
  • Racing
  • Associate Finance
  • Associate Education
  • Under-Secretary for Foreign Affairs and Regional Economic Development

That’s a good haul of portfolios for a 7% party, with some big wins.

MPs who will take the portfolios will be announced tomorrow.

Stuff:   Labour and New Zealand First Coalition Agreement

Leave a comment

34 Comments

  1. Corky

     /  24th October 2017

    Jacinda doesn’t get it. She wants to grow the enconomy while giving everyone a fair deal. Sorry, a healthy economy doesn’t work that way. There must always be losers simply because every society has losers.

    Something she will learn, starting with the minium wage. A small business wont be taking on young folk with a wage bill and tight profit margin such policies will create.

    Reply
    • David

       /  24th October 2017

      “She wants to grow the enconomy while giving everyone a fair deal.”

      Does she? Her statement seemed to indicate she did not care about growth at all.

      “Something she will learn, starting with the minium wage. A small business wont be taking on young folk with a wage bill and tight profit margin such policies will create.”

      NZ will have the highest general minimum wage in the world. The simple fact is this will cost jobs, Any reference to ‘increased productivity’ has a simple cause, fewer workers producing more.

      Reply
      • Corky

         /  24th October 2017

        I was going on what her lips said.

        Reply
      • Blazer

         /  24th October 2017

        as she said a priority is exports.The general consensus is that the NZ $ is/has been over valued.The 3% drop recently should help..growth.Even National fanbois, pin up boy ‘honest John agreed the kiwi was too high and he thought 65-66 was about the right parity to the U.S.

        Reply
        • David

           /  24th October 2017

          “The general consensus is that the NZ $ is/has been over valued.The 3% drop recently should help..growth”

          The general consensus is that the NZD is exactly right, that’s what a market reflects, the consensus view. If people expect future growth, the dollar won’t drop.

          Reply
          • Blazer

             /  24th October 2017

            I don’t know about that David..as the puny NZ$ is the 11th most traded/gambled in the world you may find that perception trumps reality,and manipulation is alive and well in this..magic show.

            Reply
            • Alan Wilkinson

               /  24th October 2017

              How would you know, B?

            • Blazer

               /  24th October 2017

              @Al ..as a fan of Richard Dawkins I take a scientific approach to..things.

            • Alan Wilkinson

               /  24th October 2017

              Then you should realise that the more heavily a currency is traded, the less easily it can be manipulated.

            • Blazer

               /  24th October 2017

              wrong Al…the size of a nation with a floating currency and its flucs depends on its reserves and ability to defend its position when extraordinary volumes are ‘traded’.A smaller nation like NZ is more easily manipulated.Ask John Key and Andy Krieger.Soros attacked the british pound ,because he had the…leverage.

            • David

               /  24th October 2017

              “the size of a nation with a floating currency and its flucs depends on its reserves and ability to defend its position when extraordinary volumes are ‘traded’”

              The whole point of a floating currency is that you don’t defend the ‘position’, regardless of the volume.

              The reason Soros made a killing on the pound was that it was fixed in value against the DM via the ERM.

            • David

               /  24th October 2017

              “as a fan of Richard Dawkins I take a scientific approach to..things.”

              The science is very clear, the more volume there is in a given market, the less able it is to be manipulated.

            • Fight4NZ

               /  24th October 2017

              The volume, ie the amount of NZD is small, therefore vulnerable to manipulation. The number of trades is large offering volatility and easy opportunities to buy/ sell the currency. Motive and means to manipulate the currency. Does it need to be clearer for anybody?

            • Gezza

               /  24th October 2017

              Ok, I think I’ve got that now, but in terms of risk to, or impact of this on, NZ – our economy, and/or politics – that means – what, F4?

            • Blazer

               /  25th October 2017

              ‘The whole point of a floating currency is that you don’t defend the ‘position’, regardless of the volume.’…that may be the theory…but not the practice.A plethora of evidence of Govts intervening.

            • Fight4NZ

               /  25th October 2017

              Hi G, the last 2 decades our currency has been above, sometimes substantially, a level which would generally considered in line with our economic position. Disadvantage exporters vs importers of finished products, so loss of manufacturing, jobs, skills, etc.
              Problem that floating currency is basically impossible to influence and an attempt to by Govts is siezed upon by traders to profit, neutralising the effect. China has got round this by pegging to the USD therefore maintaining relative competitive position which has served them very well and annoyed the hell out of US and others.

            • Alan Wilkinson

               /  25th October 2017

              Hilarious. The Left is wavering between saying the market is impossible to influence and easily manipulated. Can you lot go into a huddle and come up with a consistent line please?

            • Fight4NZ

               /  25th October 2017

              Side-splitting. Now right wing members, what do we do with info that doesn’t fit our agenda? Answer: Add spin (ie reword with errors) and throw in gratuitous left wing slur.
              Top thinking old chap!

  2. “Pilot counsellors in primary schools” shouldn’t cost much. There can’t be that many schools which employ pilots….

    Reply
  3. Alan Wilkinson

     /  24th October 2017

    What is the NZFS going to do? Replant DoC’s neglected and dying native forests in pine?

    Reply
    • Blazer

       /  24th October 2017

      give NZ’ers some..wood in the future.Foreign pension funds and other investors swooped on a large part of our forestry stock.

      Reply
      • Alan Wilkinson

         /  24th October 2017

        You mean they were sold at market rates. Disgraceful.

        Reply
        • Blazer

           /  24th October 2017

          you wouldn’t know ‘market rates’ from a barrel of..steam.

          Reply
          • Alan Wilkinson

             /  25th October 2017

            Wrong. I can tell the difference between you and market rates.

            Reply
            • Gezza

               /  25th October 2017

              Ok, that was a pretty quick pick up & exploitation of an ambiguity.
              👍🏼

        • Fight4NZ

           /  24th October 2017

          Sold immature and undervalued. National party , they know business

          Reply
          • Gezza

             /  24th October 2017

            What did they gain & what did we lose?

            Reply
            • Fight4NZ

               /  25th October 2017

              Pinus radiata has a 28year growth cycle, ie planting to harvesting. The value of a block appreciates exponentially. Anything up to 20 years is limited in value by lack of liquidity and cost recovery. Therefore to sell in these years will yield minimal return. Selling or processing logs maximises return. So we lost far greater longer term investment return.
              Same as we stopped paying Kiwifund and lost billions of wealth.

            • Alan Wilkinson

               /  25th October 2017

              The value of a block appreciates exponentially

              Rubbish. If it did no-one would ever sell it. It will be valued on a risk/return basis depending on current market conditions and time to harvest. If you sell it the buyer takes on the risk. If you keep it the seller keeps the risk.

            • Conspiratoor

               /  25th October 2017

              So F4, what would you have to say about a chinese government owned forestry company buying up large tracts of Northland pine forest and harvesting the trees at 20 years?

              Fortunately we now appear to have a government with some balls who are prepared to ask the hard questions

              “Northland wood processors are upset overseas companies are taking local trees before New Zealand-owned businesses have a chance to access them, and shipping unmilled logs straight to Shanghai.

              A meeting is being held between local processors and China Forestry Group on Monday to discuss plans for the forestry block adjacent to the historic Treaty Grounds at Waitangi.

              And NZ First’s candidate Shane Jones said he was concerned about the activities of Chinese Government-owned China Forest Products in the Rototuna forest near Dargaville. He said it had been harvesting pine trees that were too young to be used by New Zealand firms, and sending them overseas.

              There was already a lack of access to raw wood to sustain domestic saw millers and processors, he said. “I am horrified by the reported conduct of China Forest Products, which is owned by the Chinese government and recently purchased cutting rights on the Waitangi estate.”

              https://www.stuff.co.nz/business/95670341/chinese-governmentowned-forestry-firm-prepares-to-log-young-trees-and-ship-them-offshore

            • Fight4NZ

               /  25th October 2017

              Chinese taking short cuts at the expense of quality – no surprises there.

              “If it did no-one would ever sell it.” Exactly. Except of course a National government needing to fool their gullible supporters that they really got a surplus.

            • Alan Wilkinson

               /  25th October 2017

              You are not really that obtuse are you, F4?

            • Gezza

               /  25th October 2017

              But you lost points on that one. 👎🏼

      • NOEL

         /  24th October 2017

        Was wondering what regenerated forests the new Ministry was to oversee.

        Reply

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