Why we want the Reserve Bank to operate independently. Minister of Foreign Affairs Winston Peters was wrong to criticise Governor of the Reserve Bank of New Zealand, Anna Breman, for cosigning a statement with 14 other heads of other central banks (plus two from the Bank of International Settlement). The statement expressed support for the…
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Pragmatic analysis says maybe we should, but we should also consider nationalisation. We should certainly consider better regulation. An earlier column argued that we should make the government’s net worth – the value of its assets less its liabilities – more prominent in fiscal policy. Net worth is also fundamental when we are discussing whether…
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We should follow the Golden Rule of Fiscal Management and not borrow for consumption in the medium run. Asymmetry is a crucial, but often ignored, feature of credit transactions. You would normally be surprised if a shopkeeper said they would sell you 1kg of apples but not 2kg, even if you offered to pay a…
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It even happens in New Zealand. Local autonomy suffers. While Donald Trump may be democracy’s greatest political bully, he is not alone. It happens in New Zealand, not only in the offices of politicians and whips dealing with caucus. Cabinet ministers practise it in public, not least towards local government. L ocal governments are legally…
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Do we need bigger multipurpose government mega-departments? Restructuring seems to be the fashionable management practice whenever faced with a challenge. (Eminent health economist Alan Maynard’s caaled it ‘redisorganising’ citing Petronius Arbiter in Satyricon: ‘we tend to meet any new situation by reorganising, and what a wonderful method it can be for creating the illusion of…
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A distinguished economist on the tensions of centralisation Newsroom. 16 April, 2025. It was not originally envisaged that the government of New Zealand would be highly centralised. The Colonial Secretary’s instructions to Hobson are about a minimalist state. That explains the provisions in Te Tiriti o Waitangi which allocate ‘kawantanga’ to the Crown and ‘rangatiratanga’…
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New Zealand’s economic development has always been a partnership between the public and private sectors. Public-Private-Partnerships (PPPs) have become fashionable again, partly because of the government’s ambitions to accelerate infrastructural development. There is, of course, an ideological element too, while some of the opposition to them is also ideological. PPPs come in so many different…
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As Lady Bracknell almost said, ‘to lose one may be regarded as a misfortune; to lose two looks like carelessness.’ And so a second Government Statistician has made a hasty exit, The official reason in each case was the management of the population census but the cult of generic management is the underlying failure Generic…
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Tēnā koutou katoa. Apologies for the limitations of my voice. It is the consequence of surgery on my larynx. My written submission focuses on two elements of the Treaty Principles Bill which are insufficiently covered in its public discussion. The first is that the bill is bad history. Our understanding of Te Tiriti has evolved,…
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Spinoff 23 January 2025. Even democratically elected dictators try to avoid accountability. Until there is a considerable strengthening of the accountability mechanisms, the parliamentary term should not be extended. A British Lord Chancellor described the British political system as an ‘elected dictatorship’. Even so, it is meant to act in the interests of the people….
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Recommendations 1. That Parliament should not proceed with the Principles of the Treaty of Waitangi Bill. 2. That Parliament endorse the principles of the Treaty of Waitangi as set out by the Court of Appeal in New Zealand Māori Council v Attorney-General (1987) (C.A. 54/87), while acknowledging that the understandings of Te Tiriti o Waitangi…
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I prepared an earlier version of this note in May 2024 for myself, when the ‘principles of the treaty’ (i.e. Te Tiriti o Waitangi) was a political hotpoint. The most public was ACT’s proposal to have a referendum on the treaty principles.[1] The paper concludes that the treaty principles (with one exception which is explained…
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This was offered to a media outlet ‘accepted’ but not published. Excerpted from the just published In Open Seas. The Labour Party halved its vote between the 2020 and 2023 elections (while National barely increased voter numbers). The coronial enquiries into the last election are yet to be held, but they will conclude Labour’s loss…
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Notes for a Friend Te Tiriti gave ‘kawanatanga’ (governance) to the Crown but ‘rangatiratanga’ to Iwi (I’ll come to a complication). ‘Sovereignty’ confuses the discussion because it could be either kawanatanga or rangatiratanga – the sovereignty of the state vs the sovereignty of the individual. The governance vision in 1840 was a minimalist state. The…
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Property rights – which enable decisions over tangible and intangible assets – are critical to an economy as Why Nations Fail pointed out. Not just private property rights for, as we shall see, they are more complicated than that. Neoliberals argue that private property rights lead to the maximum economic prosperity; they used that to justify privatisation….
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This was a note I prepared for myself International experience provides very little guidance to the problem of designing an effective health system; there is little structural convergence between the health systems of affluent countries on the supply-side. One almost universal exception to this pessimistic conclusion is that the funding of a health system needs…
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Hardly anyone says what are ‘the principles of the treaty’. The courts’ interpretation restrain the New Zealand Government. While they about protecting a particular community, those restraints apply equally to all community in a liberal democracy – including a single person. Treaty principles were introduced into the governance of New Zealand by the Treaty of Waitangi Act…
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The claim that there are currently 14 layers of management at Health New Zealand, raises wider issues of how we organise systems. I want to write a column about current proposals to redisorganise Health New Zealand but, frustratingly, the Coalition Government has not released evidence of its claim that the successor to the District Health…
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It is all very well cutting the backrooms of public agencies but it may compromise the frontlines. One of the frustrations of the Productivity Commission’s 2017 review of universities is that while it observed that their non-academic staff were increasing faster than their academic staff, it did not bother to analyse the trend. In today’s…
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The Government says it will give localities more control over healthcare decisions. But how? New Zealand’s political reflex is that any problem can be resolved by further centralisation. Students will be officially banned from having cell phones at school from Term 2. The decision could have been left to individual schools. Each knows a lot…
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