Category Archives: Regulation & Taxation

Official Channels

This entry was posted in Governance, Listener, Regulation & Taxation on by .

Broadcasting will never be just another business, whoever’s in charge.

Listener 14 April, 2001.

Keywords Governance; Taxation & Regulation.

I leave readers to recall nostalgically events from the pictures and anecdotes of Pat Day’s Voice and Vision: A History of Broadcasting (and to add the story of Aunt Daisy and the chimp). This column is about the policy process which underpins it all. There was a minister of broadcasting, and he (they were all hes) and the cabinet made decisions which affected the broadcasting system, what we heard and saw, and our nation’s culture. But there was no ministry of broadcasting, which meant that each minister was faced by a series of conflicting interest groups, which had to be sorted out without any independent advice.

Eliminating the Tobacco Epidemic the New Zealand Experience

This entry was posted in Health, Regulation & Taxation on by .

Paper to a Seminar at the Department of Oncology, King Faisal Specialist Hospital, Riyadh, on Tuesday 10 Dhu Al Qadah (15 February 2000).

Keywords Health, Regulation

Introduction (1)

There is a huge body of evidence that the smoking of tobacco shortens life expectancy and damages health before that. Many western nations, including New Zealand, have therefore taken measures to reduce and eliminate smoking. They have been largely successfully both in terms of reducing the quantity of tobacco consumed and tobacco induced morbidity and mortality, although there is a considerable lag between the reduction in consumption and the reduction in disease. In another group of countries, typically the poorer ones, tobacco consumption levels are low in most social groups. However there are fears that with increases in discretionary incomes and more persuasive marketing by the international tobacco companies smoking will increase to levels as high as the peaks that occurred recently in Western nations a generation ago. Between these two groups of nations are those whose smoking has already reached peak Western levels, but have not yet taken measures to reduce them. They are, in effect, a generation behind the Western nations in terms of when they began smoking and also when the smoking induced disease becomes evident. The best documented is Japan, but some Middle East countries may belong to this category.

Electric Rhetoric: Sneering Instead Of Thinking

This entry was posted in Business & Finance, Listener, Regulation & Taxation on by .

Listener 17 July 1999

Keywords: Business & Finance; Regulation & Taxation;

Concerned with what he thought was the excessive influence of women in New Zealand poetry, Rex Fairburn, writing to Denis Glover in 1934, described them as the “menstrual school.” It was a silly gibe – an adolescent using words not then mentioned in polite company. The rhetoric was unforgivable, if far too typical of the New Zealand vice of pigeon-holing one’s opponents with a superficial personalised witticism, rather than cogently facing the issue being debated. That is exactly what a recent editorial of The Dominion did when it accused minister of energy, Max Bradford, of a “Return to Muldoonism”.

The Whimpering Of the State: Policy After MMP

This entry was posted in Business & Finance, Distributional Economics, Education, Governance, Health, History of Ideas, Methodology, Philosophy, Literature and Culture, Macroeconomics & Money, Political Economy & History, Regulation & Taxation, Retirement & Savings, Social Policy on by .


Auckland University Press, 1999. 269pp.

The policy process has changed dramatically following the introduction of MMP. Fascinated by the theatre of politics, we too easily ignore the major changes in policy approaches and outcomes. Today, without an assured parliamentary majority the government has to consult over its policies rather than impose them. Along with the increasing recognition that the policies of the past have failed, the policy blitzkrieg has almost ceased and commercialisation is being shelved.

The Whimpering of the State looks at the first three MMP years with the same lively, broad -ranging and informed approach as Easton’s successful The Commercialisation of New Zealand, which described the winner-takes-all regime before 1996. Again there are case studies: health, education, science, the arts, taxation. retirement policy, and infrastructure. Policy possibilities are explored. Yet, as the title of the book suggests, any releif from the ending of Rogernomics is offset be a realistic pessimism arising from a shrewd analysis of the continuing deficiencies in New Zealand’s political and social structure. Although written for the general public, this book will also be read by politicians, policy analysts and students, and will shape policy thinking in the MMP era. Publisher’s Blurb

Taxation and Public Spending

This entry was posted in Regulation & Taxation on by .

Chapter 6 of The Whimpering of the State. This was published in 1999.

Keywords: Regulation & Taxation; Social Policy;

During the writing of the 1984 Post-Election Briefing, Economic Management, Treasury economists got into a fierce argument over the purpose of taxation. Eventually a senior official, well known for his native wit, stepped into the heated fray and imposed the following opening of the relevant section of the PEB.

“The purpose of any tax regime is to raise revenue. The level of revenue will itself be dictated by the level of government expenditure and the size of the budget deficit that the government is prepared to accept.”[1]

The briefing goes on to discuss how to design a tax regime, making the obvious point that not all taxes are equally effective. Alas, such common sense has not been so evident in the public debate on taxation in the 1990s. The focus has been on taxes, with nary a reference to the government spending it provides, even though – a theme of this book – New Zealanders have a high demand for public spending on retirement incomes, health, education, and a myriad of other activities. Perhaps because taxation is the downside of such spending, those with an agenda of reducing public spending want to emphasise only its disadvantages. This chapter cannot be so irresponsible.

Weighing It Up: a Case for Government Intervention

This entry was posted in Business & Finance, Listener, Regulation & Taxation on by .

Listener 27 March 1999.

Keywords Business & Finance; Regulation & Taxation

Just suppose there was no government agency concerned with accurate weights and measures. How would you know that the `kilogram’ of the bananas you were buying weighed a thousand true grams? You could carry you own scales. Not trusting the draper when you want to buy two metres of cloth, better carry your own ruler. A few percent difference – the butcher’s thumb on the scales – may be the difference between profit and loss, between whether the customer gets a fair deal or is ripped off.

The Ownership, Management, and Regulation Of Water (and Wastewater)

This entry was posted in Environment & Resources, Regulation & Taxation on by .

Presentation to the Annual Conference of the Rural Sector of Local Government New Zealand: July 1, 1998, Dunedin.

Keywords: Regulation & Taxation;

My conclusion is a simple one. There is no simple answer to the question of the ownership, management, and regulation of water and wastewater supply and services: there is no one answer which suits every locality, circumstance, and system. It is easy for extremists to claim everything should be privatised, while other extremists as equally shrilly argue they should be kept in local government control. It soon becomes evident that the practicalities of the general circumstances rule out any extremist argument, while the choice between the middle options depends on the local circumstances. This presentation details the argument that leads to the conclusion.

Chapter 10: Entitlement and Taxation

This entry was posted in Regulation & Taxation, Social Policy on by .

A chapter of Globalisation and Welfare State

Keywords: Regulation & Taxation; Social Policy;

How should social security beneficiary who has some additional income be treated? There are numerous institutional arrangements but for economic purposes the crucial question is summarized in the `effective marginal tax rate’ (EMTR). Consider a beneficiary (or indeed any other person) who obtains an extra dollar of income, perhaps from working, perhaps a return from investments or a private pension. The additional dollar may be taxed, there may be a surcharge, the benefit may be abated or treated as taxable income, some other benefit may be reduced …. The possibilities are numerous. The economist focuses on how much additional income the beneficiary has in the hand (called `disposable’ income because that is what the individual has to spend), irrespective of the institutional arrangement to reduce it. Suppose the amount is X cents (say, 60 cents). Then the EMTR is 100-X percent (e.g. 40 percent). (1)

Globalization and a Welfare State

This entry was posted in Distributional Economics, Globalisation & Trade, Labour Studies, Regulation & Taxation, Social Policy on by .

Keywords: Distributional Economics; Globalisation & Trade; Labour Studies; Regulation & Taxation; Social Policy;

In 1997 I commenced writing a book Globalization and a Welfare State. I finished about three fifths of the first draft and stopped. This was partly because other matters were using my energies, but also because I felt that the book was too technical and would not find a commercial market in New Zealand. I am putting the book on the website for those people who might be interested in some aspects of its contents.

Fiscal Surplus: Social Deficit:

This entry was posted in Listener, Regulation & Taxation, Social Policy on by .

Even If the Economy is Doing Well, the People May Not BeListener: 29 November, 1997.

Keywords: Regulation & Taxation; Social Policy;

The table below shows the government’s current spending on employees, goods and services. It does not include spending on transfers such as social security benefits or debt servicing. It includes spending by local government as well as central government. The most important items are health and education, but there is also spending on government administration and advice, on law and order, on the environment, on the arts and so on.

In Stormy Seas: The Post-war New Zealand Economy

This entry was posted in Growth & Innovation, History of Ideas, Methodology, Philosophy, Macroeconomics & Money, Political Economy & History, Regulation & Taxation on by .


Otago University Press, 1997. 343pp.

A detailed look at the New Zealand economy in the twentieth century, and in particular its course since World War II. This is not just a history but a narrative about a problem’, defining, and ‘hopefully contributing to an understanding that will aid to its solutions’.

In Stormy Seas asks pertinent questions about some of our favourite national myths. The intial chapters examine the ongoing debate about the New Zealand economy, looking at such factors as external impact and internal response, the business cycle and growth, and problems of financing investment. Structural transformation, the farm sector, industry and energy, efficiency and flexibility, and ‘the market’ are all explored before the book closes with a discussion of the aftermath of Rogernomics and the decade of greed. (Publisher’s blurb)

Baths, Hogwash and Taxes

This entry was posted in Listener, Regulation & Taxation, Statistics on by .

In the search for correlations, are economists forsaking rigorous standards for sloppiness?
Listener 12 July 1997

Keywords: History of Ideas, Methodology & Philosophy; Regulation & Taxation;

Nobel prizewinning physicist Steven Weinberg recently wrote “the existence of a common standard of judgement leads physicists, who are no more saintly than economists, to question their own best work.” He was referring to Alan Guth who, having discovered the universe went through an inflationary phase early in its creation, nevertheless tested his own work to see whether the hypothesis was wrong. As Karl Popper says, be your own sternest critic. Is it fair to imply economists are less rigorous?

The Efficacy Of the Market

This entry was posted in Health, Regulation & Taxation on by .

Extract from Chapter 2, The Commercialisation of New Zealand.

Keywords: Health; Regulation & Taxation;

This is not an economics textbook, so we simply report a substantial body of economic theory as follows. The market may be thought of as a signalling system which coordinates the decisions of the various actors in an economy. It has two key features. First under certain circumstances (key features to be outlined shortly), the price signals reflect the social value of the resources being used or traded. Second the signalling system is self-enforcing, in that the actors have a practical selfinterest in obeying the signals.

The Commercialisation Of New Zealand

This entry was posted in Governance, History of Ideas, Methodology, Philosophy, Political Economy & History, Regulation & Taxation, Social Policy on by .


Auckland University Press, 1997. 288pp.

Well-known economist and commentator Brian Easton describes the origins, theory, history and politics of the dramatic change in economic policy in New Zealand from Robert Muldoon’s interventionism to Roger Douglas’s commercialisation and beyond. It is graphically illustrated with case studies including health, education, broadcasting, environment and heritage, government administration, the labour market, cultural policy and science. Lively broad ranging and controversial, this is a valuable commentary on the ‘more-market’ prevalent in New Zealand from the mid 1980s. (Publisher’s blurb)

It’s Only Natural

This entry was posted in Listener, Regulation & Taxation on by .

From stockyards to communications, natural monopolies need to be watched closely.

Listener: 25 November, 1995.

Keywords: Regulation & Taxation;

A decade ago the Australian stock and station agents, Elders Pastoral, decided to enter New Zealand. A key activity is selling livestock, commonly done through stockyards. It is expensive to build one’s own yards, and most yards are under-utilized, with just one per region. So the firm wrote to each stockyard in the country, and asked if they might lease it for their sales on commercial terms.

Working on It?

This entry was posted in Listener, Regulation & Taxation, Social Policy on by .

What Use is Part-time Work If Your Benefit is Cut and You Earn Little More?

Listener: 16 September, 1995.

Mike was finishing his university degree when he was offered a part time job with one of the biggest employers in the city. He took the job, did it well, and the employer eventually gave Mike a full time job. Three years later he is still working there. Mike’s experience is not unusual. Once the young worker walked into a full time job. Today’s young start off with bits and pieces of part-time work, obtain work skills and a reputation for good work disciplines, which eventually leads on to full time work.

Righting a Wrong

This entry was posted in Listener, Regulation & Taxation on by .

Listener: 21 January, 1995.

Keywords: Regulation & Taxation;

Roger Douglas’ tax policies have come in for unfair criticism from the Business Roundtable. The attack first appeared in a letter by Roundtable member Alan Gibbs, which accompanied a report the BRT had commissioned, on the burden of taxation. Gibbs wrote that the “estimates are high. The bucket transferring wealth (sic) via government is certainly a very leaky one – at least at the margin!”

Taxing Alcohol

This entry was posted in Health, Regulation & Taxation, Social Policy on by .

Presentation to “Perspectives for Change”, a conference convened by the Alcohol Advisory Council of New Zealand at Ohinemutu Marae, Rotorua, 20-23 February, 1994.

Keywords: Health; Regulation & Taxation; Social Policy

Given the brevity of the time available, this paper simply states a series of propositions about using taxation as a means of regulating alcohol use. The presenter has long been an advocate of an appropriate level of tax on alcohol to limit abuse and to pay the social costs of the abuse. While reaffirming this position, the paper is directed to the thesis that taxation for this purpose is a limited policy instrument, and that other instruments will have to be increasingly used if we want to obtain the socially optimal level of alcohol consumption. This presentation summarizes a series of papers on the economic regulation of licit drugs, which are listed in the appendix. This work draws on the parallel literature on the use and abuse of tobacco, where the similarities and differences are instructive.

Asymmetrical Sex

This entry was posted in Listener, Regulation & Taxation on by .

Listener 23 January 1993.

Keywords: Regulation & Taxation;

As with many service industries, there is not a lot written on the economics of prostitution. Yet the activity has a peculiarity well worth reflecting upon in a column precipitated by the official committee inquiring into its relation to Aids.