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There’s a lot to like in Local Government New Zealand’s report on local government finances. The report gets one very important thing right: It’s time that central government moved to tie local government finances more closely to local government performance to encourage development. Read more
It turns out that you can both agree with Local Government New Zealand that we need to change how local government is financed, and with the Taxpayers’ Union that a lot of local governments could be more efficient. I think we can manage to hit both targets with one instrument in this case: fixing how local government is financed can help to make local government more efficient. Read more
Wellington (2 February 2015): The New Zealand Initiative has welcomed the launch of LGNZ’s latest discussion paper on local government funding as an important step towards improving how councils deliver services to communities. The think tank’s Executive Director, Dr Oliver Hartwich, said New Zealand has one of the most centralised forms of government among developed countries, with 90 cents in every tax dollar spent by officials in Wellington. Read more
One critical response to my 12 January 2015 Dominion Post article here on the need for the benefits from government scaffolding regulation to exceed the costs asserted that: This misses the point that that decisions about people's safety at work should never be based solely on money. There is a moral test that also needs to be satisfied. Read more
City planners have done terrible things to housing affordability. While improving the RMA is an important step in stemming the madness, it’s only a first step. Read more
Wellington (22 January 2015): The New Zealand Initiative has welcomed the overhaul of the Resource Management Act, in particular the focus on housing affordability and the restoration of property rights, but is still concerned about the ambiguity surrounding Section 5. The latest overhaul of the legislation was announced yesterday by the Hon Nick Smith, Minister for the Environment and Minister for Building and Housing, citing economic research that indicated the RMA had cost the country 40,000 homes and added $30 billion in costs. Read more
Estimates have the economy growing above the trend rate compared to other developed nations, but other measures show the benefits of growth aren’t filtering through to all. Patrick O’Meara looks at whether New Zealand's household really are better off. Read more
This report, the first in a two-part series, seeks to examine the factors that prevent greater mineral extraction in New Zealand, a business model that could help stem some of the economic pressures faced by many of the country's rural regions. The key findings of Poverty of Wealth are that: Rural New Zealand is in decline Economic growth is concentrated in urban areas, particularly Auckland, Wellington and Christchurch, whereas seven of the rural regions recorded negative economic growth in the year ending March 2013, and a further two recorded flat growth. Read more
New Zealand is far from the only country in the world facing a housing affordability crisis, according to the latest international report. According to the International Monetary Fund’s Global Housing Watch, surging property prices are a global epidemic, with GDP-weighted house prices having risen steadily for seven quarters in a row. Read more
Our regular readers will not be surprised that we believe the high cost of housing is a major challenge facing New Zealanders. As a crucial election issue, we have eagerly awaited each major party’s housing announcements, hoping they will pave the way for restoring housing affordability. Read more