The proposal to reduce the number of public servants is not well worked out. Announcing the reduction of 8700 jobs for public servants during the runup to the 2026 election suggests the economy is in a fragile state. The Iran War is generating global stagnation and inflation; even worse – if oil and related products…
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In too many areas we are avoiding thinking about or preparing for oncoming changes. About a decade ago I had a ‘Lambton Quay’ conversation with an environment policy advisor. For those who do not live in Wellington, LQ is the main shopping street which starts at Parliament buildings; it also has cafes and government offices….
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Aside from its Orwellian doublespeak, the proposed legislation to change how we count New Zealand, first requires an expert review? In early April, the world’s biggest census ever began; it is a $2b exercise covering 1.4b Indians. It is so complex it will take a year, as first they count the households, then the persons…
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It is more than a four-letter word exercise. In 1986, the government commissioned a review of science policy chaired by ex-Governor General David Beattie. Among the agencies it interviewed was the Treasury, in the course of which Beattie asked whether it had a science plan. The Assistant Secretary of the Treasury spluttered; he was clearly…
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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 note prepared for some colleagues As its subtitle says, the Treasury’s 2025 Long-term Insights Briefing: Sustainable and resilient fiscal policy through economic shocks and cycles focuses on economic shocks and cycles. This commentary takes a slightly different point of view because it includes all shocks to the economy, not just economic ones. Among the…
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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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