
Call for Government to help Auckland as unemployment rises
'I think we need to raise the animal spirits, if you like, of the business community.'
Bridges said a boost in confidence in Auckland was needed at both business and consumer levels.
Things were tough in the city which hadn't caught a break since before the Covid-19 pandemic started, he said.
'There is more stimulus, there is more policy work that government could be doing to provide a better business environment in Auckland in the here and now,' he said.
'I think [the Government has] done some worthy long-term things, but in the end, if all we worry about is the long term, I'm not sure there'll be that many Kiwis left in Auckland.
'It's now that they need to be focused on.'
Employers and Manufacturers Association (EMA) head of advocacy Alan McDonald said while the agriculture industry was bolstering employment elsewhere, Auckland had different economic drivers.
'Numbers from the Auckland Council Economic Unit indicated unemployment would be quite high [in the June quarter] and it has been for some time.
'There are some signs of recovery but they're being led by the regional economy and primary sector and Auckland is more about manufacturing and services.
'Hospitality, tourism, education sectors have all been down as well.'
McDonald said EMA had received a spike in calls to its advice line about redundancies and restructures since March.
'We had hoped 5.1 [in December 2024] might be the bottom of Auckland's unemployment numbers, but we've been hearing from March until now that things are still very tight and very tough.'
But things were starting to turn, he said.
The Stats NZ quarterly labour market figures released on Wednesday also showed unemployment was more than double the national rate at 12.1%.
-RNZ
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Otago Daily Times
an hour ago
- Otago Daily Times
Treasury: Previous govt spent too much during Covid despite warnings
By Giles Dexter of RNZ The previous government spent too much during the Covid-19 pandemic, despite warnings from officials, according to a briefing released by the Treasury. The Treasury's 2025 Long Term Insights Briefing said debt had risen in recent decades, partly because responses to adverse shocks were not met by savings between those shocks. The higher debt meant less capacity to respond to future shocks, like natural hazards, weather-related risks and biosecurity risks. Treasury estimated the total cost of the pandemic was $66 billion over the 2020-26 financial years and about 20.4% of GDP. The IMF and OECD estimated it was among the largest Covid-19 responses globally. The agency releases a briefing every three years, with this one looking at the role of fiscal policy through shocks and business cycles. The briefing said the Covid-19 response showed the challenges of using fiscal policy to respond to shocks and cycles. Initially, Treasury recommended "strong fiscal stimulus" at the start of the pandemic, which was cited as "perhaps" causing the economy to be much stronger than expected by the end of 2020. The wage-subsidy scheme in particular was seen as making an important contribution to the strong initial recovery, limiting the increase in the unemployment rate and enabling economic activity to resume when restrictions relaxed. Treasury then moved away from recommending broad-based stimulus, preferring more targeted and moderate support. Its post-election advice to the then-Finance Minister in late 2020 highlighted "the importance of controlling ongoing spending and ensuring it was high value to meet the medium-term fiscal challenge." By August 2021, with the Delta lockdowns coming in, Treasury recommended any decisions to provide support to businesses "should take account of macroeconomic trade-offs". It recommended against any further stimulus from Budget 2022 onwards. Wage subsidies and similar schemes during lockdowns made up about 35% of the costs of the response. A further 18% came from health-system costs, like vaccination, contact tracing, and managed isolation and quarantine. The remaining "nearly half" was made up of a wide range of initiatives that Treasury said had "varied objectives". Some were aimed at directly responding to the impacts of Covid-19, others were aimed at providing fiscal stimulus or "achieving social or environmental objectives". They included "tax changes, training schemes, housing construction, shovel-ready infrastructure projects, increases to welfare benefits, the Small Business Cashflow Scheme, Jobs for Nature, additional public housing places and school lunches". Programmes within the fiscal response that were not tied to the shock were seen as having "a lagged impact on the economy and proved difficult to unwind in later years". The report suggested cyclical management was best left to monetary policy, run by an independent central bank. It also suggested governments set out clearly when fiscal policy will be used ahead of time, including pre-defining responses. Ideally, this would have cross-party agreement. An independent fiscal institution, which could scrutinise and report on the sustainability of fiscal policy, was also suggested. The previous government had considered setting up a watchdog to cost election policies, but it could not get cross-party support. National then changed its tune, with current Finance Minister Nicola Willis supporting such a measure, but New Zealand First and ACT were opposed to the idea. 'Dangers of excessive spending' - Willis Willis jumped on the report's release, saying Treasury's language was "spare and polite", but its conclusions were "damning". She said the briefing showed the challenges of using "big spending measures" to respond to one-off shocks. Willis singled out the briefing's focus on the money spent on initiatives not directly tied to the Covid-19 response. "That is a very diplomatic way of saying New Zealanders are still paying the price of the previous government extending a big-spending approach, initially intended for a pandemic response," she said. Labour has been approached for comment.


NZ Herald
5 hours ago
- NZ Herald
Pointless foreshore debate a distraction from economic crisis
At the same time, our second biggest export market has just imposed 15% tariffs on our products – higher than on our direct competitors – and its rival for global hegemony is extending its influence and projecting its military power into our region and even our realm. Yet despite all this – or perhaps because of it – some within the coalition Government and fringe groups aligned to them think it's a good idea to have another argument about race. Maybe that's not surprising. With the working and middle classes crying out for an explanation for why things are so bad and the country's prospects so bleak, some within the old political and business establishments dare not admit it is because of poor policy and commercial decisions they themselves contributed to over recent decades. As in other nations facing seemingly irretrievable decline, it's much better to point to a minority and blame them. 'It's not your fault, or mine, that you're doing it tough,' this old elite tells those who are struggling. 'We're all just victims of the 'grievance economy' where Māori keep taking what is rightfully yours.' The worst thing is that it works, at least with perhaps 20% of voters. That rump, which polls suggest consists mainly of white baby-boomer men, is particularly important electorally to NZ First and Act, who fight over them. You may think that the biggest issues in this year's local government elections are out-of-control rates and councils' cumbersome and incompetent application of the Resource Management Act. But, according to Hobson's Pledge, 'the most important fight of 2025' is around Māori wards. 'Across the country,' it says in an apocalyptic fund-raising email, 'local councils have become the frontline in a slow, stealthy assault on democracy. Behind closed doors, race-based policies are being pushed through. Co-governance is being installed without consent. And representation is being carved up based not on merit or votes, but on ancestry.' Hobson's Pledge says it will 'go big with this campaign', including 'billboards, signage, social media, and engaging with new voices'. The campaign's integrity is already under question, after it was revealed that Hobson's Pledge used, without her permission, a photograph of an elderly Māori woman in a billboard implying she opposes Māori wards. Rotorua kuia Ellen Tamati is devastated after discovering her image is being used by a political lobby group that's pushing to abolish Māori wards. Photo / Aukaha News In fact, she supports them. She never agreed for anyone to use her image commercially, and the agency which sold it anyway was clear it could not be used in advertising. Hobson's Pledge has since asked the billboard company to remove the advertisement and said it would contact the woman to ensure she was okay and let her know her image was publicly available as a stock image. Hobson's Pledge has form with this sort of thing, setting up a 'We Belong Aotearoa' campaign before the last election, falsely suggesting a grassroots movement by immigrants concerned about co-governance. Next time, Hobson's Pledge ought to use one of its own supporters – of which it claims to have many – in its advertisements. It might also give greater attention to telling the truth, after its advertising about the foreshore and seabed in the New Zealand Herald was found by the Advertising Standards Board to be materially misleading. Hobson's Pledge will continue to do its thing, and its antics are probably best seen as another small price to pay for the benefits of free speech. More worrying is internal coalition politics pushing Treaty Negotiations Minister Paul Goldsmith to proceed with new foreshore and seabed legislation. This is certain to arouse all the passions of the Clark Government's 2003 and 2004 fiasco that the Key Government resolved so successfully in its first term by passing then-Attorney General Christopher Finlayson's Marine and Coastal Area Act 2011. The Luxon Government – or at least a powerful faction within it – seems to want a repeat of Act's failed Treaty Principles Bill, with all the associated division and distraction from the real economic crises. There might have been a case for the bill Goldsmith is fronting had the Supreme Court upheld a recent novel interpretation of Finlayson's legislation by the Court of Appeal. But the Supreme Court overruled the Court of Appeal, making the proposed bill seem redundant. We must now choose whether Finlayson or Goldsmith is likely to be the better jurist. Finlayson says the Supreme Court left things as Parliament intended back in 2011 and that Goldsmith's bill would compromise existing Māori rights. Goldsmith says the Supreme Court made it too easy for Māori to have their rights recognised by the courts and that the bill is needed to return things to the status quo the Key Government established. Since the whole foreshore and seabed controversy emerged in 2003, it has been based on what Finlayson calls a 'lie': concerns about public access to beaches. Hobson's Pledge now goes so far as to claim there's a risk of 'kissing our entire coastline goodbye'. Yet beach access was never an issue, even when the Court of Appeal made its original 2003 ruling that kicked off the controversy. It certainly isn't an issue under the 2011 law or the Supreme Court's decisions. The rights that an iwi can have recognised over bits of the foreshore and seabed are highly limited, and nothing like ordinary property rights. Underlying all this is another lie: that there is something activist, radical or woke about the courts acknowledging Māori customary law. Yet in Africa, India, Southeast Asia, North America and New Zealand, the British Empire and its common law always acknowledged that customary law continued after colonisation, unless it was specifically repealed. The truly radical or activist judges have been those who historically tried to deny this. It can be annoying when other people's legal rights are upheld, like farmers being able to stop hikers from walking across their property. But that is no reason to deny such rights. To the contrary, it is an essential democratic principle that the specific legal rights of individuals and other minorities are upheld, whatever the majority may think. It's wrong to keep changing the law on the foreshore and seabed or anything else when it looks like the courts may uphold some specific legal rights that someone else might find annoying. If they can do it to an iwi, they can do it to you. And, with all New Zealand's economic and social crises, ask yourself whose interests are served by trying to turn your attention to race.


NZ Herald
5 hours ago
- NZ Herald
Cost of living, economy challenge National ahead of Election 2026
Finance Minister Nicola Willis and Prime Minister Christopher Luxon. Photo / Mark Mitchell. Cost of living and the economy remain top of the agenda for the National Party Prime Minister Christopher Luxon is already touting his leadership as one that is a 'clear choice' for New Zealanders, while reiterating that the Government 'inherited a mess and is sorting it out'.