National MPs on how Kiwis will react to board members' pay hike, cost of living struggles
The increase, revealed by the Herald yesterday following the quiet
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NZ Herald
9 minutes ago
- NZ Herald
Govt's conservation changes spark backlash over land protections
A major overhaul of conservation land law has sparked sharp criticism from Forest & Bird, which accuses the Government of gutting longstanding protections in favour of commercial interests. The Government's intended changes to the Conservation Act, unveiled at the National Party conference in Christchurch yesterday, aims to 'unleash growth'
NZ Herald
6 hours ago
- NZ Herald
The NZ economy is still sick, doubts are growing about the Govt prescription
Are these the right antibiotics? Are the antibiotics making me feel sick? I do feel a little better I think. But it's taking longer than I expected. Maybe I should see the doctor again. Or am I just being impatient? Ugh, so much uncertainty. Hopefully, those who've tuned in for a fresh read on the state of the economy can see where this is going. Never let a metaphor go by, I say! Anyway, here's me and the New Zealand economy, both sick in the midst of a miserable wet winter and worrying about whether our recoveries have stalled. A run of negative data has knocked the wind out of the nation's sails. The bad vibes are being pushed along by a strong political current. Both the left and right are telling us that the Government has prescribed the wrong medicine. The left blames the Government for cutting spending into a downturn. The logic is pretty simple. Any good Keynesian will tell you, when demand in the private sector falls, that's the time for the Government to come to the party. Borrow a bit more, don't slash and burn civil service, hire more teachers and nurses, build more stuff ... it won't be inflationary because it won't be crowding out private sector competition, which is in recession. The trouble is, we're still in the aftermath of the last big spend-up, which went on too long. Labour's stimulus, once we got through the initial Covid shock, did clash with a private sector boom and exacerbated inflation. That muddied the political narrative. It made it inevitable that the incoming centre-right coalition would cut back despite the extra damage that would do to economic growth. In the context of using fiscal policy to drive economic prosperity, you can make a good case that successive governments have got things completely arse about face. You'd expect this argument from the left. But Christopher Luxon and Nicola Willis are being savaged even more aggressively from their right flank. The monetarists, the supply-side guys, the neo-liberals, (whatever you want to call them) are berating the Government for not dealing with the national debt and Crown deficit by administering a Rogernomics-style reboot of the whole economy. I doubt that would make the current downturn any more pleasant, but they argue it couldn't be much worse. And the payoff would be longer-term gains as the economy found a more productive and financially secure baseline. Both arguments can be compelling and, if nothing else, add to the concern that the current strategy of subtle market-oriented tweaks risks underdelivering on all sides. But through all of this gloom, one thing we need to remember is that most economists still believe the foundations of recovery are in place. Step back a bit from the mess of ugly recent economic data – the second quarter sucked, we get it! What are we actually experiencing? The labour market is tough. Unemployment is rising, and new job creation is almost non-existent. But this is not a surprise. In fact, while economists do get things wrong, they've been forecasting unemployment to be about where it is now for more than a year. We know it's one of the last pieces of data to turn in any recovery. Unfortunately, it is now overlapping with an unwanted and unexpected spike in inflation. Like a jump scare in the final scene of a horror movie, food prices (with rates and power, and insurance) have conspired to pause Reserve Bank rate cuts and rattled our faith in the recovery. Then there are tariffs and global unrest and all of that. It's not really surprising that it all feels bleak. So it's a bit ironic to be writing an optimistic take on the economy, especially given the rough week stuck at home that I've just had. My view wouldn't have been so upbeat if I hadn't been woken from my sick bed on Friday morning by a text from investment bank HSBC's Australian head of communications. He was asking how far away I was from my scheduled meeting with their global chief economist, Janet Henry and and Australia-New Zealand chief economist Paul Bloxham. Oops ... I was a long way away. But they kindly let me Zoom in later, and I'm very glad I did. As anyone with Australian cousins will know, sometimes it's healthy to be slapped in the face with a slightly condescending, external view of the New Zealand condition. Bloxham told me his forecasts currently make him one of the gloomiest economists on Australian growth. However, he's one of the most positive on New Zealand growth. Last year, New Zealand had the single largest contraction of any economy in the developed world, Bloxham points out. That inevitably comes with a hangover. But if you believe in the fundamentals of the New Zealand economy, which he does, there is no reason to assume the cycle won't turn. 'I suspect why I'm a little bit more upbeat than others is I sit in Sydney and watch it from the outside and go: hey, you've got two big forces at work that are set to continue to lift growth and give you a recovery.' No prizes for guessing those two forces – falling interest rates and booming agricultural commodity prices. The money flowing into the rural economy must eventually flow through to the cities and lift growth, Bloxham says. It won't happen overnight, but it will happen (my words, not his). We've had a big downswing, which means we're due a pretty big upswing to get back to trend, he says. And we've got monetary policy and the terms of trade in place to drive that cyclical upswing. 'All cycles look different. We always ask the same question going through: oh, it's not quite happening as quickly as we thought. 'The question you ask yourself is: is that because it's not working? Is it that interest rates aren't going to have the same effect? That a positive-terms-of-trade shock won't have the same effect? Or are things just a bit different this time around?' Great question. And look, the sun's finally out and I think my head's clearing. Time to go for a walk and ponder it all. Liam Dann is business editor-at-large for the New Zealand Herald. He is a senior writer and columnist, and also presents and produces videos and podcasts. He joined the Herald in 2003.
Scoop
7 hours ago
- Scoop
Comments On The Equal Pay Amendment Bill
The group's chair, Gail Duncan, said: 'The Social Justice Group have sent in their submission to the Peoples Select Committee on Pay Equity. This Select Committee was the brainchild of Marilyn Waring and we were very grateful to have the opportunity to submit ' The Bill was deliberately passed in full with no public consultation, no accompanying Regulatory Impact Statement, no exemption from the Ministry of Regulation, and did not meet Cabinet's requirements. Breaching all requirements with no regard to the long term impact on women or regard that these roles underpin the wellbeing of communities, ignoring that many women in these roles are the sole income earner for their families – they are the breadwinners - and all deserve appropriate recompense for their service and labour. Discrimination is what it is, and this Act embodies and perpetuates it, taking us backwards. The Government introduced the Equal Pay Amendment Bill to the house under urgency on Monday 5 May 2025 and it was passed on Wednesday evening 7 May 2025. The approach not only breached the Bill of Rights Act, but was inconsistent with the international Sustainable Development Goals requirements for delivery of fair pay for women. This government starkly says to New Zealand employers (including the government) that while we can't afford to pay women at pay equity rates, we can afford to deliver tax cuts to landlords and concessions to some industries such as the tobacco industry. The impact of this reduction in due process is being paid for by women across New Zealand as they strive to support themselves and their families. This Bill limits their capability to pursue claims by extinguishing existing cases and denying back pay. The removal of pay equity from the books has undermined the future prosperity of all women in New Zealand, particularly Māori and Polynesian, reducing the productivity and economic contribution of half of New Zealand's workforce. This in turn contributes to child poverty, holding back the next generation. Furthermore, it forces the women of New Zealand to sacrifice their pay equity claims to balance the books for Budget 2025. This, we submit, is unprincipled and ruthless. The National Party has always backtracked on any improvements to women's pay parity . It removed the Employment Equity Act, passed under the Labour government in 1990. That Act aimed to address pay equity and inequality in employment for women, Māori, Pasifika, and workers with disabilities. It also established the Employment Equity Office. The Act was repealed by the incoming National government later that year (1990). Again following Kristine Bartlett and the Food Workers Union Nga Ringa Tota winning the case for care workers in the Court of Appeal in 2014, and a pay equity settlement in June 2017 the National Party publicly stated that its intention was to write off the compensation from the ledger, and rewrite the Bill such that no woman would ever be able to make such claims again. In July 2017 the National Government introduced the Employment (Pay Equity and Equal Pay) Bill 2017 (284-1), to repeal the Equal Pay Act 1972, and create a process for raising pay equity claims within the structure of the Employment Relations Act 2000. The Bill lapsed following the general election. Source: In 2025 the Coalition Government has now achieved this intent with the Equal Pay Amendment Bill. The redacted Cabinet Paper 'Reviewing policy settings' (1 May 2025), justifies pay equity changes on the grounds of the Government's commitment to improve the quality of legislation, reducing complexity and costs. The Equal Pay Amendment Bill was promoted as providing a better pay regulatory framework for a pay equity process, based on the concepts of the Regulatory Standards Bill. New Zealand is not a basket case economically, New Zealand has head space. Policy decisions should enhance wellbeing across the population and this is not evidenced. Instead, the austerity measures being applied are counterproductively pausing the economy against public messaging that growth is the answer. The government is forging a pathway to hardship for hardworking New Zealanders. The Equal Pay Amendment Bill is one strategic part of these austerity measures and their ongoing plan to lower wages across the whole spectrum of workers. This began with the rescinding of Fair Pay Agreement Act, effective from 20 December 2023, by the Fair Pay Agreement Repeal Bill introduced on 12 December 2023 by MP Hon Brooke van Veldon, Minister for Workplace Relations and Safety. The same minister then reviewed the Equal Pay Act 1972, one of the most important pieces of legislation for women on the statute book in New Zealand. The Equal Pay Amendment Bill has set New Zealand back over 50 years, abandoning international obligations to ensure pay parity for women and is another contractionary measure. Treasury has already warned of a slowing economy, slowing spending and lowering business revenue leading to a reduction in the Government's tax take. Taking $12.8 billion out of the economy by reneging on obligations to value women's work appropriately will backfire. This government has introduced a new framework for the use of parties to assess whether there is sex-based undervaluation. The government has raised doubts about the comparison between jobs conducted predominantly by women and other roles of similar responsibility, and implied that prior claims had no merit and determined a reset is required. Differences in remuneration for reasons other than sex-based discrimination? The only one given is the employer will struggle to pay and the Government is threatening that it will reduce funding for those activities concerned. This is as bad as saying businesses and farmers will struggle to make changes to meet our climate change obligations, so we won't foist any requirements upon them. This is setting New Zealand up to fail. St Peter's on Willis Social Justice Group opposes the legislation which has passed giving Brooke van Veldon the power to adjust and further discriminate against women without consultation either publicly or with cabinet. To conclude, St Peter's on Willis Social Justice Group will justify our stance by quoting scripture, as we were asked in the oral hearing for the Regulatory Standards Bill. Jesus is clear about our need to care for the poor and disadvantaged, for instance: in Matthew 25:34-46. He is scathing about influential people who circumvent justice with trickery, for example in Matthew 25:23, 'But woe to you, scribes and Pharisees! For you tithe mint dill and cummin, and have neglected the weightier matters of the law: justice and mercy and faith. It is these you ought to have practised without neglecting the others.' And Luke 11:46, 'Woe also to you lawyers! For you load people with burdens hard to bear, and you yourselves do not lift a finger to ease them.' Using the words of Dr Martin Luther King, quoting Amos 5:24, 'Let justice roll down like waters, and righteousness like an ever-flowing stream.' This government is making decisions which put them on the wrong side of history. Basically, we must pay women what they are worth and reinstate the pay parity obligations lost in the passing of the Equal Pay Amendment Bill.
