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Tuesday, August 29, 2023

Point of Order: Buzz from the Beehive - 29/8/23



Greens have cause to gripe about edict on public spending but Hauraki Gulf conservation options will be more agreeable

Two of the government’s latest announcements may well raise the question – among many citizens, at least – of timing.

Why has it taken so long?

The first is the announcement from Finance Minister Grant Robertson that the government requires public agencies to find permanent savings, including cutbacks on the use of contractors.

But timing isn’t the only question raised by Robertson’s zeal for fiscal responsibility and balance.

A question of coalition courtesies was raised, too, because Robertson – oops – forgot to inform Climate Change Minister about the climate spending he has included in a $4 billion programme of fiscal cuts, savings, delays, and reprioritisations.

RNZ reported:

Some $236m will come from the Climate Emergency Response Fund, which is supposed to be ring-fenced for climate spending, but instead will be returned to the general savings pool.

According to Newsroom, James Shaw knew the government was doing a savings exercise and was briefed on a $10m cut to a waste priority – but only found out about the remaining $226m at the same time the public did.


Robertson admitted Shaw was supposed to be informed.

“Yes, he should have,” Robertson said.


The other announcement which raises a “why not sooner?” question came from Conservation Minister Willow-Jean Prime and Oceans and Fisheries Minister Rachel Brooking.

This one has delighted the Green Party – it’s a plan to ban bottom-trawling for most of Hauraki Gulf to better protect the 1.2-million-hectare marine park.

But it’s not a plan to be implemented any day soon. Rather, it is to be discussed in a public consultation that will open tomorrow.

What has been announced today is that the “options” include bottom-trawling and Danish seining being banned from up to 89 per cent of the marine park.

Bottom-trawling and Danish seining are now banned in just over a quarter of the Gulf’s waters.

The more extensive trawling ban was foreshadowed earlier this month when Prime Minister Chris Hipkins announced plans to create 19 new marine protection areas in the Gulf.

At the same time, Brooking released the new Hauraki Gulf Fisheries Plan – the country’s first area-specific, ecologically based fisheries plan.

“The plan overturns the presumption that bottom-trawling and Danish seining can be used everywhere except in specified areas.

“Instead, they will be banned everywhere except in very specific and limited places, called trawl corridors, or Bottom Fishing Access Zones. Today I’m announcing the options for those corridors and inviting people to have their say from tomorrow on which option they support,” Rachel Brooking said.


The opening of public consultation on the trawl corridors comes as the Government prepares to debate the Hauraki Gulf/Tikapa Moana Marine Protection Bill in Parliament today for the first time.

This Bill triples the area in the Hauraki Gulf Marine Park under total protection, from just over 6 per cent to about 18 per cent.

The other new post on the government’s official website (when we checked early this afternoon) is a joint statement from Shri Piyush Goyal, India’s Minister of Commerce and Industry, and Damien O’Connor, our Minister for Trade and Export Growth, after their meeting in New Delhi.

There’s nothing much in the statement that calls for celebration. Rather, getting a trade deal with India is hard slog:

In committing to strengthening the trade and economic relationship, Ministers acknowledged:
  • the intention of both the countries to test new and innovative approaches to economic partnership.
  • that new initiatives should focus on encouraging, facilitating and coordinating collaboration of technology and expertise for genuine mutual benefit.
  • that the opportunities in each other’s markets, which is of interest to businesses of both the countries should be explored.
  • Noted the increase in engagement between both the countries under a collaborative approach that engages officials from across relevant government departments and the private sector, wherever appropriate. The broad and informal engagements are aimed at fresh ideas for new, innovative and productive areas for partnership between both the countries.
Latest from the Beehive

29 AUGUST 2023


The Labour Government will ban bottom fishing from the vast bulk of the Hauraki Gulf as part of its plan to better protect the 1.2-million-hectare marine park for future generations, with public consultation opening tomorrow.


Shri Piyush Goyal, Minister of Commerce and Industry, Textile and Consumer Affairs, Food & Public Distribution of India and Hon Damien O’Connor, Minister for Trade and Export Growth of New Zealand, had a bilateral meeting today at New Delhi.

28 AUGUST 2023


In the face of a deteriorating global economy and tax revenue failing to meet Treasury’s forecasts, the Government is requiring public agencies to find permanent savings including through cutting back on contractors. It is also reducing future budget allowances, trimming back some programmes, and taking back underspends.

In his statement, Grant Robertson highlighted these points –
  • Almost $4 billion in savings over forecast period
  • The public service will be required to make permanent savings, including by reducing spending and cutting back on consultants and contractors.
  • Front line services are excluded from baseline savings programme.
  • Immediate savings will be made through returning department underspends
  • Future Budget allowances will be reduced but will still be able to meet cost pressures.;
Something nasty in the books has galvanised the government on the fiscal front:

“The Government’s published accounts for the eleven months to the end of May showed that tax revenue was more than $2 billion behind where Treasury had forecast it to be at the Budget. It should be noted that government spending was in line with forecasts during this period.” Grant Robertson said.

“Since May we have seen further deterioration in the global economy, particularly in China. This will continue to have a direct impact on the New Zealand economy, and it is important that the Government responds to meet our balanced and responsible fiscal goals.

“In the May Budget we launched a Fiscal Sustainability and Effectiveness Programme to support our return to a more sustainable fiscal position as we remove the necessary spending that supported New Zealand through the COVID pandemic.

“It is clear given the economic conditions that we need this work to happen more than ever. Today we are announcing further actions as part of that programme.”


These measures together would help ensure the government meets its fiscal goals to keep debt under 30 per cent of GDP and get the books back into surplus in the forecast period.

Robertson wrapped up with a bit of electioneering, noting that “this cannot be a big-spending election”.

Uncosted, untargeted tax cuts like those promised by the opposition “are simply not affordable”, he insisted.

Similarly, broad-sweeping statements about slashing public services is “destabilising and disingenuous”.

A balanced approach that protects the public services that New Zealanders rely upon was needed, Robertson said.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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