Latest news with #ThomasCoughlan
NZ Herald
4 days ago
- Business
- NZ Herald
Letters: You can't exempt GST from food; Ardern should stand at the podium of accountability
We don't have to borrow more money. The rich have plenty of opportunity to avoid GST and need to pay their fair share of income tax. There is no 'trickle down' of wealth. There is only a 'trickle up'. The problem when the wealth doesn't get shared around is the economy stagnates, which is what we are seeing now. Only a change in mindset can fix this – kind of like climate change. Bill Gates made billions from Microsoft, then created a foundation to find ways to give it all away. I wonder what the world would look like today if he and others like him had charged a little less for their product and paid the people who worked for them a little more. Paul Cheshire, Maraetai. Don't forget October 7 In view of all the fiery rhetoric surrounding this conflict we seem to have lost sight of some facts. Let us remember that it was Hamas who sent armed men to kill and kidnap participants in a family day out music festival. It is Hamas who is still holding 50 hostages in underground tunnels and subjecting them to mental and physical deprivation. It is Hamas who announced that they do not care how many of their people die so long as Israel is made to look guilty of genocide. It is Hamas who has continually refused to come to any agreement with Israel. I am neither Jewish nor Islamic but I do read the Herald and watch the news. Jill Kouremetis, Waitākere. Covid-19 inquiry Thomas Coughlan does us a favour in astutely weighing the pros and cons of requiring Ardern and members of her cabinet to attend an open session of the second stage of the Covid-19 inquiry. But he ends his piece on a pessimistic note – namely, that both parties are guilty of setting up inquiries to find fault with their political opponents' time in office. If this is so, then this practice can only undermine the integrity and trust for one of the few ways we have of looking seriously at issues of governance and how to improve performance in public policy. The UK's Institute of Government issued a report on public inquiries and found that the most respected are headed by a non-partisan chair and often have terms of reference set by a select committee. In recent times, a supposedly 'independent' inquiry was quickly conducted on the performance of Kainga Ora (state housing) and, predictably, found fault, with the disbandment of much of the public housing programme, and quite possibly consequences for our current levels of homelessness. There were undoubtedly issues of performance, but it would have been publicly more palatable and informative for such findings to be more nuanced and established by a truly independent source. If we fail to retain the integrity and public trust for public inquiries, then we will have lost one of the best options we have for ensuring good government. Emeritus Professor Peter Davis, Auckland. Politicising Royal Commissions A timely warning by Herald political editor Thomas Coughlan about the dangers of politicising Royal Commissions. The terms of reference of the current Covid-19 inquiry, keeping the timeline from February 2021 to October 2022 to spare Winston Peters being called, is a case in point. So is all the controversy over Jacinda Ardern and her fellow ex-ministers for not appearing in person and answering questions privately instead. If one government can use such an inquiry as a way of effectively putting former government ministers on public trial, then so can another. Labour administrations have not been shy about this either in the past. With each new government becoming more strident in blaming their predecessors for the country's woes, Royal Commissions are in danger of being weaponised. As Coughlan ponders, perhaps we should leave the judgement of a government's performance to voters and the ballot box. Jeff Hayward, Central Auckland. Road user charges 'Fairness' talk justifying RUCs is utter crap and farmers make and talk a lot of it. The new so-called independent science adviser emits so much methane vapour on his breath you can smell him before he even talks. Users are asked to pay forward for road maintenance with RUCs but 'agricultural' carbon emitters are excused their costs. The shift to RUCs disincentivises buying a light fuel-efficient hybrid vehicle and incentivises heavy gas guzzlers. Is this an Act voting base – 'big bold beautiful gas guzzler libertarians'? Simon Watts removing farmers from the ETS isn't fair and Chris Bishop's RUCs aren't that fair on low-damage-causing low-emitting vehicles. It's a flat tax, virtually indiscriminate by weight, an obvious example of ignoring the axle-weight damage evidence, let alone exonerating big carbon emitters. A Blue-Green party is not viable at present. Blue-Green voters have little viable alternative in this climate-change denial dominant coalition. Green policies: wealth taxes, a cleaner a more equitable society put them off. Why? Wealthy people need to exercise their spinal tendons. We only need one in 10 to stiffen their resolve. A sustainable future is actually worth paying forward. I'm thinking this will be given the 'gumboot kick' as provocative and offensive but at least could make a few think. Steve Russell, Hillcrest. Wildfires The NZ Herald does a great job placing photos of blazing countries on fire for all the world to see. It's within the World section noting many of those countries, America, Spain, Portugal, France, Greece, Italy and now Canada as they try to dampen down extraordinary fires raging uncontrolled from temperatures way above normal. Other countries suffer from the loss of fertile land, too dry for anything to grow, causing starvation. A few of these articles mention climate change and some even stress our need to stop burning fossil fuels. In winter, the news covers storms, floods and sea rises threatening life as we know it. The biggest threat of all to our world are the oil-producing companies. They are in control, refusing to face up to this horrendous disaster they are subjecting our planet to. Along with plastic, made also from oil, they dig on down, heads in the sand, ignoring statistics, ignoring the disasters, so their flow of money into already overloaded bank accounts can continue. But what do they gain on a planet that is dying? Emma Mackintosh, Birkenhead. A quick word The same degree of compulsion that locked down the team of five million from the 'podium of truth' should be applied to the squad of four – Ardern, Robertson, Hipkins and Verrall – to front up at the podium of accountability in person. Mike Wagg, Freemans Bay. Talk about third world, how absurd to read that a prison is to be air conditioned while a hospital nearby is not. Surely one would think that the likes of schools and hospitals would be at the top of the list for that? Prisons are getting better by the day it seems and soon won't be too far below a hotel standard if that continues. Paul Beck, West Harbour. All those that have not responded to an invitation to submit to Royal Commission on Covid. Why have a commission? You and I survived and we can thank the government for our closure. It is always good to look back in hindsight but at the time we were in the dark as was the rest of the world. How many invitations have you responded, 'sorry but no'? Dennis Manson, Unsworth Heights. Given the reputation many police forces across the globe for violence and corruption, I was rather hoping that, following the tragic death of an alleged offender in Christchurch, Mark Mitchell would rate our own as being somewhat above 'world class'. The phrase 'world class' itself in today's ever-changing world doesn't really fill one with a great deal of confidence. Our country should strive to be better than 'world class', because we can be when we want to be. Jeremy Coleman, Hillpark. This week there was another media report of angry adults making their way onto the grounds of a high school, causing a lockdown. Such incursions seem to be increasing, often sparked by feuding comments on social media. These actions are frightening for students and staff who are the focus of these people, and those who witness them. Schools are supposed to be safe places for children, and classrooms are the domain of teachers. Trespass notices can be meaningless if the person does not normally have any association with the school issuing it. As a deterrent, surely it is time such unlawful entry to a school is categorised as a crime with more serious consequences for the perpetrators. Matt Elliott, Birkdale.
Scoop
05-08-2025
- Health
- Scoop
Flawed And Predetermined: Postscript On Waikato Medical School Decision
The business case used to justify the Government's decision to establish a third medical school at Waikato University '…seemed to have a predetermined outcome: to favour the Waikato medical school the National Party took to the last election.' This was how NZ Herald Political Editor Thomas Coughlan reported a 'deeply concerned' Professor Warwick Bagg, Dean of Medical and Health Sciences at Auckland University (27 July): Predetermined outcome? I discussed this issue in my previous Otaihanga Second Opinion post (26 July): Poor process, 'chumocracy and cosyism means likely poor outcome. Drawing upon the use of terminology previously discussed by Bryce Edwards, Director of the Integrity Institute, I focussed on the poor decision-making process describing it as being based on a: … 'chumocracy' of elites who are connected by what he [Auckland University economics professor] calls 'cosyism'. I summarised the approved new Waikato medical school as follows: The new medical school is to provide a four-year medical degree for students who already are graduates with a non-medical degree to work as general practitioners (or as other rural doctors) in regional and rural areas. The medical degree at the existing two medical schools, Auckland and Otago, is five years. The advocated expectation is that the proposed Waikato Medical School will be graduating 120 doctors a year once it is up and running. With its opening scheduled for 2028 the first graduates should start working as general practitioners or other rural doctors at the earliest in 2037. This gap comprises both the time at the medical school and the time as resident (junior) doctors in training. I also quoted what was arguably Edwards most biting conclusion of the process: The Waikato medical school greenlight might be a political win for a few, but it's a loss for New Zealand's standards of governance. It undermines confidence that our health investments are made wisely and fairly. And it should prompt some soul-searching in Wellington: if this is how we make big decisions now, what does that say about who really runs the country? The politics of timing My own concluding comment was about the timing of the health minister's release of the business case supporting the decision – 6.45pm Friday 25 July. My post was published shortly after this release so I could only give the claim of $50 million dollars per year savings a cursory look. However, I focussed on the politics of the timing; that is, releasing complex material at a time when media scrutiny was most difficult. I finished up by stating that: If the difficult to substantiate claim of $50 million savings per year stood up to rigorous scrutiny it would have been released at a time convenient for media scrutiny. But 'chumocracy' and 'cosyism' necessitated otherwise. Subsequently, on 29 July, I was Interviewed by Michael Laws on the rightwing media online outlet The Platform: Breaking down the controversy. Drilling down into the 'business case' The key 'business case' material was commissioned by government from the Sapere business consultancy rather than drawing upon the relevant expertise and experience from within the health system (of which there is much). As Thomas Coughlan reported in his above-mentioned article: With the Waikato option only narrowly ahead of the others after a cost-benefit-analysis, a tweak to the assumptions behind the business-case options might have changed the outcome. Sapere advised on three options based on a 'total lifetime cost' over 16 years (2026-2042): Increasing the intake of students at the existing medical schools at Auckland and Otago universities was costed at $10.9 billion. A joint specialist medical training programme focused on rural health run by both university medical schools costed at $10.2 billion. The new medical school proposal at Waikato costed at $9.1 billion. Sapere also claimed that the third above option (Waikato) has a narrowly better benefit-cost ratio than the second (joint Auckland-Otago). Specifically, the former had a ratio of 1.99 (meaning that each dollar spent produced $1.99 in benefit) whereas for the latter the ratio was 1.8 ($1.80 in benefit). If this was taken at face value, then the Government made the right decision despite the poor process. There might have been some justification for Health Minister Simeon Brown's triumphant reported claim that this was a 'game-changer for the long-term growth of our medical workforce in New Zealand'. However, that is a huge 'if'. To begin with, the capital cost for the Waikato school option of $232 million was far greater than the Auckland-Otago joint school option cost of $81.5 million. This $150.5 million higher cost is unsurprising given that whereas Auckland and Otago would be expanding existing infrastructure, Waikato would be largely starting from scratch. Unfair assumptions Sapere argued that ongoing operational costs over the same 16 years for Waikato were estimated to be $361.6 million compared with $508 million for the joint Auckland and Otago option. However, Professor Bagg countered this by advising that '…this modelling made unfair and inaccurate assumptions about the existing two medical schools that put them at a disadvantage.' The argument of lower operational costs for the Waikato proposal largely centres on it being a shorter programme (that is, four years rather than five). However, when the usual three years required to achieve an undergraduate university degree, which are also government subsidised, are factored in (as they should be) the 'tweaking' referred to by Coughlan comes into play. As reported by Coughlan, Bagg pointedly notes that: … the cost of turning Waikato's students into graduates who can be admitted into the school isn't reflected in the business case. Lifting those costs out of the business case made Waikato look better overall. In Bagg's own words: They are focused on the four-year graduate programme … they haven't focused on the three years that they'll have to do to get into that medical school. Bagg also identified another way in which Waikato's high capital costs for Waikato were 'offset'. That is, how the business case found 'more benefits for the Waikato medical school'. This is because of the assumption that far more Waikato graduates will go on to be GPs, and work rurally, than graduates from the proposed Auckland-Otago joint rural school. The assumption was that whereas 38% of Waikato graduates would become GPs, it would only be 33% for the joint rural training programme. In the Waikato medical school's case if taken at face value, the cost-benefit ratio would weigh 'heavily' in Waikato's favour. According to Bagg, Sapere (who provided cost-benefit analysis for the business case) did not use 'the data we provided them' to calculate the GP figure for the option of increasing capacity at Auckland and Otago medical schools. In fact, rather than 23%, already '…about 35%' of graduates from Auckland and Otago medical schools are working as GPs eight years after graduating. Sapere's lower figure came from a survey of graduates' intentions when they graduated from medical school, not what they actually ended up doing after undertaking resident (junior) doctor training, which includes general practice placements (including rural). Sapere's assumptions for the number of GPs graduating from the Waikato medical were based on figures from the rural GP medical school in Wollongong which similarly had a post-graduate four-year degree. In my view basing such an important assumption on one similar example raises a further concern about speculation. The final word On 29 July Otago Daily Times journalist Matthew Littlewood covered further concerns over the robustness of the business case: Flaws in medical school business case. His article included disappointment over the quality of the business by Otago University Pro Vice Chancellor (health sciences) Associate Professor Megan Gibbons. She began by saying, referring to his comments in the above-mentioned Coughlan article: We agree with University of Auckland dean of medical and health sciences professor Warwick Bagg regarding a business case that contains a number of obvious flaws including significant analysis gaps and some speculative assumptions. But the final word should be left to former Otago University health policy professor Robin Gauld (currently Executive Dean of the Bond Business School at Bond University in Queensland). Noting that the differences between the options were 'so infinitesimal' that Waikato could potentially carry the greatest risk and describing the Waikato medical school as a 'mega project', he advised that: It could end up being that Waikato will actually be much more expensive than was going to be apparent right now when this decision was taken. And some of the challenges, such as getting all the clinical placements lined up, which they admit in the business case will be challenging, could be more challenging than anticipated.' So, they're going to be relying on quite a bit of altruism and goodwill to get all the placements lined up. So, I think like any grand project, such as the new Dunedin hospital, there's a lot more in this than you could just read out of a business case. There's a heck of a lot more to it. It's going to be much, much more complex. Very wise words. This is the kind of wisdom that the political decision-makers over the new medical school chose to ignore. Ian Powell Otaihanga Second Opinion is a regular health systems blog in New Zealand. Ian Powell is the editor of the health systems blog 'Otaihanga Second Opinion.' He is also a columnist for New Zealand Doctor, occasional columnist for the Sunday Star Times, and contributor to the Victoria University hosted Democracy Project. For over 30 years , until December 2019, he was the Executive Director of Association of Salaried Medical Specialists, the union representing senior doctors and dentists in New Zealand.
Newsroom
08-06-2025
- Business
- Newsroom
NZ's means-testing creep
Whatever age we're at, means testing for benefits is creeping into our lives. From the Best Start allowance for parents of newborns, to the parents of teens applying for Jobseeker, and those in KiwiSaver earning over $180,000. But when it comes to the old age pension, means testing is too touchy politically, says NZ Herald political editor Thomas Coughlan. He tells The Detail why the pension is off limits, for now. 'There are things we get universally. Universal free education, a lot of health services are free. But cash payments, those are mostly means-tested with one big exception.' Every New Zealander who hits 65 is entitled to NZ Superannuation. 'You could be a billionaire or you could have absolutely nothing and you will get it. 'Culturally, politically we tell ourselves that we earn superannuation, we work hard we pay taxes our whole lives and when you retire you deserve to get the benefit from the government that you have paid for for your entire working life. That is the political bargain, I guess, at the heart of superannuation.' Means testing superannuation is also not as straightforward as other benefits where Inland Revenue knows exactly how much beneficiaries or their parents earn. But most superannuitants don't work, making a means test on income difficult to manage. That leaves asset or wealth testing, 'which is just uranium wrapped in barbed wire'. Coughlan says raising the retirement age is seen as the better of 'two horrible options' and National has already signalled plans to gradually raise it to 67. But that is also fraught. The Retirement Commissioner Jane Wrightson doesn't like either option but is 'more keen on the consideration of means testing than I am of raising the age'. 'But if that became a thing (raising the retirement age) then I would be arguing that it's a really comprehensive and well-thought-through policy change that considers a retirement system as a whole, not just about NZ Super, not just about KiwiSaver but the impact overall on future citizen New Zealand pensioners,' Wrightson says. She calls the debate around superannuation a gender issue. 'The commentators are mainly men. The issues around NZ Super, and who gets it and when, need to be looked at with a really strong gender lens because women are the ones who get disproportionately affected.' The Detail also talks to pensioner Doug Beever in Australia where the pension kicks in at 67 and is means-tested. Beever says he's happy with the arrangement because all of his working life he has been paying into a private retirement fund, a compulsory version of a KiwiSaver scheme that has been in place for decades. Wrightson says that is the difference between the two countries and why we can't copy Australia's pension model. The historic superannuation plan is a reason why the country is quite well-off, 'because those funds are in the billions and billions now. And secondly, people have got a decent pot themselves, so when you get that you can absolutely then talk about means testing, you can talk about raising the age … you've got more levers to your bow when your citizens have been protected by a decent regulatory environment. 'This is not what's happened here.' Check out how to listen to and follow The Detail here. You can also stay up-to-date by liking us on Facebook or following us on Twitter.
RNZ News
08-06-2025
- Business
- RNZ News
Cutting superannuation costs without setting off political landmines
Photo: 123RF Means testing is being introduced on a wide range of benefits. Questions are being asked over how long it will be before superannuation is targeted. Whatever age we're at, means testing for benefits is creeping into our lives. From the Best Start allowance for parents of newborns, to the parents of teens applying for Jobseeker, and those in Kiwisaver earning over $180,000. But when it comes to the old age pension, means testing is too touchy politically, says NZ Herald political editor Thomas Coughlan. He tells The Detail why the pension is off limits, for now. "There are things we get universally. Universal free education, a lot of health services are free. But cash payments, those are mostly means tested with one big exception." Every New Zealander who hits 65 is entitled to NZ Superannuation. "You could be a billionaire or you could have absolutely nothing and you will get it. "Culturally, politically we tell ourselves that we earn superannuation, we work hard we pay taxes our whole lives and when you retire you deserve to get the benefit from the government that you have paid for for your entire working life. That is the political bargain, I guess, at the heart of superannuation." Means testing superannuation is also not as straight forward as other benefits where Inland Revenue knows exactly how much beneficiaries or their parents earn. But most superannuitants don't work, making a means test on income difficult to manage. That leaves asset or wealth testing "which is just uranium wrapped in barbed wire". Coughlan says raising the retirement age is seen as the better of "two horrible options" and National has already signalled plans to gradually raise it to 67. But that is also fraught. The Retirement Commissioner Jane Wrightson doesn't like either option but is "more keen on the consideration of means testing than I am of raising the age". "But if that became a thing (raising the retirement age) then I would be arguing that it's a really comprehensive and well thought through policy change that considers a retirement system as a whole, not just about NZ Super, not just about Kiwisaver but the impact overall on future citizen New Zealand pensioners," Wrightson says. She calls the debate around superannuation a gender issue. "The commentators are mainly men. The issues around NZ Super, and who gets it and when, need to be looked at with a really strong gender lens because women are the ones who get disproportionately affected." The Detail also talks to pensioner Doug Beever in Australia where the pension kicks in at 67 and is means tested. Beever says he's happy with the arrangement because all of his working life he has been paying into a private retirement fund, a compulsory version of a Kiwisaver scheme that has been in place for decades. Wrightson says that is the difference between the two countries and why we can't copy Australia's pension model. The historic superannuation plan is a reason why the country is quite well off, "because those funds are in the billions and billions now. And secondly, people have got a decent pot themselves, so when you get that you can absolutely then talk about means testing, you can talk about raising the age ... you've got more levers to your bow when your citizens have been protected by a decent regulatory environment. "This is not what's happened here." Check out how to listen to and fol low The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter . Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
RNZ News
08-06-2025
- Business
- RNZ News
New Zealand's mean testing creep
Photo: 123RF Means testing is being introduced on a wide range of benefits. Questions are being asked over how long it will be before superannuation is targeted. Whatever age we're at, means testing for benefits is creeping into our lives. From the Best Start allowance for parents of newborns, to the parents of teens applying for Jobseeker, and those in Kiwisaver earning over $180,000. But when it comes to the old age pension, means testing is too touchy politically, says NZ Herald political editor Thomas Coughlan. He tells The Detail why the pension is off limits, for now. "There are things we get universally. Universal free education, a lot of health services are free. But cash payments, those are mostly means tested with one big exception." Every New Zealander who hits 65 is entitled to NZ Superannuation. "You could be a billionaire or you could have absolutely nothing and you will get it. "Culturally, politically we tell ourselves that we earn superannuation, we work hard we pay taxes our whole lives and when you retire you deserve to get the benefit from the government that you have paid for for your entire working life. That is the political bargain, I guess, at the heart of superannuation." Means testing superannuation is also not as straight forward as other benefits where Inland Revenue knows exactly how much beneficiaries or their parents earn. But most superannuitants don't work, making a means test on income difficult to manage. That leaves asset or wealth testing "which is just uranium wrapped in barbed wire". Coughlan says raising the retirement age is seen as the better of "two horrible options" and National has already signalled plans to gradually raise it to 67. But that is also fraught. The Retirement Commissioner Jane Wrightson doesn't like either option but is "more keen on the consideration of means testing than I am of raising the age". "But if that became a thing (raising the retirement age) then I would be arguing that it's a really comprehensive and well thought through policy change that considers a retirement system as a whole, not just about NZ Super, not just about Kiwisaver but the impact overall on future citizen New Zealand pensioners," Wrightson says. She calls the debate around superannuation a gender issue. "The commentators are mainly men. The issues around NZ Super, and who gets it and when, need to be looked at with a really strong gender lens because women are the ones who get disproportionately affected." The Detail also talks to pensioner Doug Beever in Australia where the pension kicks in at 67 and is means tested. Beever says he's happy with the arrangement because all of his working life he has been paying into a private retirement fund, a compulsory version of a Kiwisaver scheme that has been in place for decades. Wrightson says that is the difference between the two countries and why we can't copy Australia's pension model. The historic superannuation plan is a reason why the country is quite well off, "because those funds are in the billions and billions now. And secondly, people have got a decent pot themselves, so when you get that you can absolutely then talk about means testing, you can talk about raising the age ... you've got more levers to your bow when your citizens have been protected by a decent regulatory environment. "This is not what's happened here." Check out how to listen to and fol low The Detail here . You can also stay up-to-date by liking us on Facebook or following us on Twitter . Sign up for Ngā Pitopito Kōrero , a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
