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NZ Herald
16-05-2025
- Politics
- NZ Herald
Govt should scrutinise Fonterra's role in rising food prices
And surely perspective has been lost. I was there to publicly promote the idea that vaccinating older adults against common diseases would pay off for both the health system and society generally. While that is just one contestable policy idea amongst many, Parliament itself seemed largely consumed by the utterance, not once but twice, of a particularly vile swear word; plus the antics of one of the minor parties, Te Pāti Māori. There is a legitimate debate to be held about parliamentary and journalistic standards, both of which have been woefully dropping, in my opinion. In Parliament's case this is no doubt damaging the standing of the institution, which must surely concern those who are giving up their lives to serve in it. But I doubt it means a hill of beans to the average voter, beyond a general level of disgust. The public right now are mostly interested in the economy and their jobs, and the cost of living. Those are surely how most will weigh their vote at the next election in about 16 months' time. With that in mind, next week in Parliament will be much more consequential than this one, as Nicola Willis delivers her second Budget. She has to keep spending under control, place increased emphasis on value for money, show a path back to surplus, and set the economic climate for more growth. And all in the shadow of an American President who is not helping anyone as he publicly learns the immutable laws of economics. It is a daunting task. I think back to the nine Budgets I was involved with alongside Bill English, and this one would be at least as difficult as any of those, which included of course at one stage grappling with both the Global Financial Crisis and the Canterbury earthquakes. I think there is broad public understanding, if not acceptance, about what is required. Much of the debate over the last week, and indeed much of the vitriol, has been directed at the Government's watering down of the pay equity legislation, which had previously been expensively beefed up by the previous Government. While there will be plenty of people who disagree with the change, or perhaps how it was enacted, there will nevertheless be a more general acceptance that we can't go on spending beyond our means, and that there are and will be any number of other savings initiatives required. The Government should not be afraid of levelling with people about the changes needed. In political terms the opposition is helping, with its stance that pretty much all public spending is sacred, along with the release of pie-in-the-sky alternative budgets completely disconnected from reality. The Government should refrain from too much premature politicking and electioneering. There will be plenty of time to compare policy prescriptions between now and the election. Next week should be all about making the case to the New Zealand public that they are taking the right steps to restore New Zealand's fortunes. The Budget has been locked away for a couple of weeks, and it will be what it will be. But a Statistics New Zealand release on Thursday underlines that there is more work for the Government to do about the public's other main area of concern, the cost of living. While inflation altogether is trending down, there are two key exceptions, the cost of food and the cost of electricity. Ministers are working on both fronts, but decisions have yet to be made and seem to hang in the balance. It is clear, for example, most of the electricity gentailers are fighting a strong rearguard action against changes to electricity market settings, as you would. The Government has also taken the long rhetorical handle to the supermarket industry, and fair enough. But there is one area of cost increases where they have been noticeably quiet. It is clear one of the biggest contributors to food price increases is dairy products. A 500g block of butter is costing consumers a whopping $3 more than it did a year ago, while milk is up 15% and cheese up 24%. Those are hefty in anyone's language. The conventional response of farmers and Fonterra to such price increases is to shrug and talk about the influence of world dairy prices. Which is true to a point, but not the whole story. Fonterra is a Government-sanctioned near-monopoly, which controls about 80% of the milk collection in New Zealand. And it is only partially regulated. The laws around it focus on the farmgate milk price, to ensure farmers are treated fairly, and retail regulation, to ensure there are options for retail competition. The gap, which the Commerce Commission has highlighted from time to time but over which it has little influence, is the cost of dairy processing. Nobody really knows whether Fonterra's factories are as efficient as they could be, and whether consumers here are paying a fair margin for that cost of production. Put it this way. If there was genuine competition on the processing side, we'd know whether Fonterra was doing the best job it could for New Zealand consumers or not. The current way we are just guessing. It is a little incongruous that the Government is so focused on the supermarket trade, which is at least a competitive duopoly, and the electricity market, which is an oligopoly, but silent on dairy processing. It is time to take a look. There may be nothing to see here, as I'm sure Fonterra leaders and shareholders would say, but as Fonterra readies itself to sell off its consumer brands, there could hardly be a better time to have a closer look at what is happening under the processing hood. And consumers would surely thank the Government if there was some downward pressure on dairy prices in their weekly shop.


Scoop
16-05-2025
- Business
- Scoop
Government Announces 150 New Social Homes For Hawke's Bay Through Community-led Approach
Press Release – Hawke's Bay Regional Recovery Agency Hawkes Bay securing 150 of these housing places is the result of strong local leadership and collaboration, particularly following the severe impact of Cyclone Gabrielle. Confirmation of Government funding for 150 new social homes in Hawke's Bay is being welcomed as an important first step towards putting local leadership and community needs at the centre of housing decision making. The funding for these homes will come from the Government's 2024 Budget allocation for 1500 community housing places to be built and tenanted nationwide by mid-2027 – an initiative that reflects the Government's shift towards new community housing being provided by Community Housing Providers (CHPs). Hawke's Bay securing 150 of these housing places is the result of strong local leadership and collaboration, particularly following the severe impact of Cyclone Gabrielle. The Matariki Housing Leadership Group – a partnership of mana whenua, iwi, PSGEs, councils, and community leaders – has played a key role in identifying housing solutions for the region. Following the 2024 Government review into Kāinga Ora, the Leadership Group proposed to the Minister for Housing that Hawke's Bay could be a pilot region for greater place-based management of community housing, as recommended by the review written by former Prime Minister Bill English. The Minister proposed that the Leadership Group work to identify opportunities for 150 places to be funded from the Budget 2024 CHP allocation and endorse these to the Ministry for Housing and Urban Development for consideration. This work has been ongoing for several months, with the Leadership Group close to endorsing 150 opportunities to the Ministry. Confirmation today of the funding from Housing Minister Chris Bishop, who met with representatives of the Leadership Group, is a welcome and important step in the process. Mana Ahuriri Trust Chair, Te Kaha Hawaikirangi, said the announcement is a significant milestone for iwi and hapū and the wider Hawke's Bay region, signalling potential for genuine partnership when it comes to decisions on where community housing is built, and who it is managed by. 'It represents more than just housing. Localised decision-making is about restoring wellbeing, reconnecting whānau to their tūrangawaewae, and recognising that mana whenua have a leading role to play in solutions for our people, by our people.' Te Taiwhenua o Heretaunga Trust Chair, Mike Paku, said the initiative builds on the successful Hastings housing model launched in 2019. 'When local leaders and mana whenua are empowered, outcomes improve. The Crown's trust in us to help determine where these homes could go recognises our proven ability to deliver. Now, we're looking to formalise regional structures to support long-term local decision-making beyond the 150.' The Regional Recovery Agency has supported the initiative by advocating for the region and facilitating the Leadership Group's work. 'With Cyclone Gabrielle having exacerbated the housing shortages faced across Hawke's Bay this was a natural piece of work for the Agency to support, as part of its recovery and resilience focus,' said Regional Recovery Agency Chair, Blair O'Keeffe. Mike Paku highlighted the long-term ambition held by the Leadership Group. 'This isn't just about 150 homes. It's about building a sustainable, place-based model that delivers better results over time, including improved outcomes for tenants and communities, and value-for-money for the Crown. We're focused on creating a housing system that puts people first and reflects the values of our region.'


Scoop
16-05-2025
- Business
- Scoop
Government Announces 150 New Social Homes For Hawke's Bay Through Community-led Approach
Confirmation of Government funding for 150 new social homes in Hawke's Bay is being welcomed as an important first step towards putting local leadership and community needs at the centre of housing decision making. The funding for these homes will come from the Government's 2024 Budget allocation for 1500 community housing places to be built and tenanted nationwide by mid-2027 - an initiative that reflects the Government's shift towards new community housing being provided by Community Housing Providers (CHPs). Hawke's Bay securing 150 of these housing places is the result of strong local leadership and collaboration, particularly following the severe impact of Cyclone Gabrielle. The Matariki Housing Leadership Group - a partnership of mana whenua, iwi, PSGEs, councils, and community leaders - has played a key role in identifying housing solutions for the region. Following the 2024 Government review into Kāinga Ora, the Leadership Group proposed to the Minister for Housing that Hawke's Bay could be a pilot region for greater place-based management of community housing, as recommended by the review written by former Prime Minister Bill English. The Minister proposed that the Leadership Group work to identify opportunities for 150 places to be funded from the Budget 2024 CHP allocation and endorse these to the Ministry for Housing and Urban Development for consideration. This work has been ongoing for several months, with the Leadership Group close to endorsing 150 opportunities to the Ministry. Confirmation today of the funding from Housing Minister Chris Bishop, who met with representatives of the Leadership Group, is a welcome and important step in the process. Advertisement - scroll to continue reading Mana Ahuriri Trust Chair, Te Kaha Hawaikirangi, said the announcement is a significant milestone for iwi and hapū and the wider Hawke's Bay region, signalling potential for genuine partnership when it comes to decisions on where community housing is built, and who it is managed by. 'It represents more than just housing. Localised decision-making is about restoring wellbeing, reconnecting whānau to their tūrangawaewae, and recognising that mana whenua have a leading role to play in solutions for our people, by our people.' Te Taiwhenua o Heretaunga Trust Chair, Mike Paku, said the initiative builds on the successful Hastings housing model launched in 2019. 'When local leaders and mana whenua are empowered, outcomes improve. The Crown's trust in us to help determine where these homes could go recognises our proven ability to deliver. Now, we're looking to formalise regional structures to support long-term local decision-making beyond the 150.' The Regional Recovery Agency has supported the initiative by advocating for the region and facilitating the Leadership Group's work. 'With Cyclone Gabrielle having exacerbated the housing shortages faced across Hawke's Bay this was a natural piece of work for the Agency to support, as part of its recovery and resilience focus,' said Regional Recovery Agency Chair, Blair O'Keeffe. Mike Paku highlighted the long-term ambition held by the Leadership Group. 'This isn't just about 150 homes. It's about building a sustainable, place-based model that delivers better results over time, including improved outcomes for tenants and communities, and value-for-money for the Crown. We're focused on creating a housing system that puts people first and reflects the values of our region.'

Epoch Times
15-05-2025
- Business
- Epoch Times
Social Investment Fund to Be Announced in New Zealand Budget
A new Social Investment Agency will be established and put in charge of a $190 million (US$111 million) fund, Finance Minister Nicola Willis has announced as part of a preview of next week's budget. It will be headed by former police commissioner Andrew Coster. Social investment is described by Treasury as being about 'improving the lives of New Zealanders by applying rigorous and evidence-based investment practices to social services.' Last year, Willis announced the agency would be brought back, but gave no indication how much money it would be given to spend. Today, she has announced an initial $190 million as part of a total of $257 million over four years, which will be formally announced in the 2025 Budget when it's delivered on May 22. It will include $20 million for initiatives that strengthen parenting over the first 2,000 days of a child's life, reducing harm and setting children up for better long-term outcomes, and a further $25 million on helping to prevent children and vulnerable adults from entering state care. This forms part of the government's response to the Royal Commission of Inquiry into Historical Abuse in State Care. Related Stories 10/31/2024 2/12/2025 In all, the fund is expected to invest in at least 20 different initiatives over the next year. 'Each initiative will have robust evaluation built into it from the start, so that its impact can be tracked,' Willis said in a statement. 'The government is already investing around $7 billion each year buying social services from non-government agencies. Despite this, we know too many New Zealanders remain trapped in cycles of inter-generational dysfunction.' Willis said communities, NGOs, and iwi (Maori tribes) have told the government it would have a greater impact if its process to select and monitor social services were improved. That means it will use a completely different contracting approach than that traditionally used by government agencies—one based on the social investment model created by former Prime Minister and National Party leader Bill English, who still plays a key role in the sector through his business, Impact Lab. Make a 'Meaningful Difference' In 2015, English, then Finance Minister and Deputy Prime Minister, established the Social Investment Agency. 'The way we have designed our social service system is preventing us from making a meaningful difference in the lives of people with multiple, interdependent problems,' he said in a lecture to Treasury analysts, adding that social investment uses evidence and feedback to improve services and find what works. New Zealand Prime Minister Bill English speaks during an election night event in Auckland, New Zealand, Sept. 23, 2017. Reuters/Nigel Marple 'A lot of the knowledge we need to achieve this lies outside government agencies. In fact it is extremely difficult for them to know some of it, because it is specific to the individual or the household ... Measuring the return on investment in social services makes sense whether it is fiscal costs or wider social benefits that are being considered.' The 2020 Labour-led government changed the remit and role of the Social Investment Agency and changed its name to the Social Wellbeing Agency, with a reduced focus on data as the primary driver of social services investment priorities. Agency to Grow Over Time Willis said the fund will start relatively small and grow over time, setting up the infrastructure for large-scale delivery of integrated contracts with support from the social sector. Three such co-operative arrangements were announced as part of the package. One is Autism New Zealand's early screening and intervention programme that provides services and support for families, caregivers, and professionals. The second is Emerge Aotearoa's evidence-based approach to tackling youth offending and truancy, which is expected to help at least 80 families each year to address these issues. And the third is an alliance of nine Māori organisations that will support 130 families at a time with wraparound support that delivers stable housing, education, training and employment, and other services. 'The Fund will be the catalyst for improving the way government works with communities to drive social impact,' Willis said. 'Over the next two to three years, I expect to see significant amounts of funding transferred from current social services to the Social Investment Fund as communities and providers develop new approaches to working with government.'