Good news from Stats NZ about the cost of living – but Seymour was ahead of the Finance Minister in welcoming it
Finance Minister Nicola Willis was curiously slow to hail the latest inflation figures as more good news for New Zealanders.
Statistics New Zealand published the figures this morning. They showed New Zealand’s consumers price index increased 2.2 percent in the September 2024 quarter, compared with the September 2023 quarter.
The 2.2 percent annual increase follows a 3.3 percent annual increase in the June 2024 quarter.
“For the first time since March 2021, annual inflation is within the Reserve Bank of New Zealand’s target band of 1 to 3 percent. Prices are still rising, but not as much as previously recorded,” consumer prices manager Nicola Growden said.
Higher rent prices was the biggest contributor to the annual inflation rate, up 4.5 percent. Almost a fifth of the 2.2 percent annual increase in the CPI was due to rent prices.
Willis’ reaction was emailed to news media an hour later but had yet to be posted on the Government’s official website when Point of Order checked on the latest ministerial announcements at 1pm. It’s there now.
But ACT leader David Seymour’s reaction reached us ahead of the statement from Willis.
A quick analysis from the Taxpayer’s Union beat her into our in-tray, too.
Willis’ statement could be found on the government’s official website later in the afternoon along with statements dealing with …
“For the first time since March 2021, annual inflation is within the Reserve Bank of New Zealand’s target band of 1 to 3 percent. Prices are still rising, but not as much as previously recorded,” consumer prices manager Nicola Growden said.
Higher rent prices was the biggest contributor to the annual inflation rate, up 4.5 percent. Almost a fifth of the 2.2 percent annual increase in the CPI was due to rent prices.
Willis’ reaction was emailed to news media an hour later but had yet to be posted on the Government’s official website when Point of Order checked on the latest ministerial announcements at 1pm. It’s there now.
But ACT leader David Seymour’s reaction reached us ahead of the statement from Willis.
A quick analysis from the Taxpayer’s Union beat her into our in-tray, too.
Willis’ statement could be found on the government’s official website later in the afternoon along with statements dealing with …
- The welfare traffic light system
Upston highlighted data which showed 331,530 people were in the system at the end of September due to having work-related or social obligations attached to their benefits. About 98 per cent had green lights for fulfilling those obligations; about two per cent, or 5922 people “were idling at the orange and red lights for not taking the steps required to continue receiving payments, such as finding or preparing for work”.
The total number of obligation failures recorded in September was 6975 and the total number of benefit sanctions applied was 4662. This compares to 7491 obligation failures and 5268 sanctions recorded in August.
Fair to say, Upston acknowledged that “it’s early days” – the traffic light system began on August 12 with the introduction of a new warning system for the existing benefit sanctions regime. Beneficiaries now see their colour status when they receive correspondence from MSD and log into their MyMSD.
The numbers showed about 98 per cent of those failing their obligations and receiving sanctions were work-ready job seekers.
“The Government has been clear that beneficiaries who are motivated to find work will get our full support, but we won’t tolerate those who are receiving a Jobseeker benefit and aren’t seeking a job,” Louise Upston says.
- Legislative changes for dairy exporters
The Dairy Industry Restructuring (Export Licences Allocation) Amendment Bill has passed its first reading in Parliament.
The Bill proposes changes to the export quota system that include shifting quota allocation from the proportion of milk solids a company collects from farmers, to a system based on their export history.
This follows a review of the dairy export quota system in 2023, which identified opportunities to improve quota allocation, to better reflect the diversity of the dairy industry.
New Zealand currently administers quota allocation for bovine dairy exports to the United States, the United Kingdom, the European Union, Japan, and the Dominican Republic.
“This will maximise and further boost dairy’s $23 billion in annual export revenue by allowing a wider range of exporters to tap into new markets and opportunities,” Mr McClay says.
The Bill also enables portions of individual quotas to be reserved for dairy exporters currently ineligible for quota and those only eligible for less than 200 tonnes.
“It will also unlock quota for non-bovine animal dairy exporters, such as sheep, goat and deer milk processors, opening up new export opportunities and revenue streams.”
The Bill contains provisions to ensure our domestic laws meet the requirements of the Budapest Convention, also known as the Council of Europe Convention on Cybercrime, the only binding international treaty on cybercrime. The convention aligns member countries’ laws and makes it easier for them to cooperate on criminal investigations.
“By joining the convention, we are signalling to the other like-minded countries that we take cybercrime seriously and we are prepared to do our part to eliminate it,” Justice Minister Paul Goldsmith says.
The Bill’s provisions include:
The Bill proposes changes to the export quota system that include shifting quota allocation from the proportion of milk solids a company collects from farmers, to a system based on their export history.
This follows a review of the dairy export quota system in 2023, which identified opportunities to improve quota allocation, to better reflect the diversity of the dairy industry.
New Zealand currently administers quota allocation for bovine dairy exports to the United States, the United Kingdom, the European Union, Japan, and the Dominican Republic.
“This will maximise and further boost dairy’s $23 billion in annual export revenue by allowing a wider range of exporters to tap into new markets and opportunities,” Mr McClay says.
The Bill also enables portions of individual quotas to be reserved for dairy exporters currently ineligible for quota and those only eligible for less than 200 tonnes.
“It will also unlock quota for non-bovine animal dairy exporters, such as sheep, goat and deer milk processors, opening up new export opportunities and revenue streams.”
- The fight against cybercrime
The Bill contains provisions to ensure our domestic laws meet the requirements of the Budapest Convention, also known as the Council of Europe Convention on Cybercrime, the only binding international treaty on cybercrime. The convention aligns member countries’ laws and makes it easier for them to cooperate on criminal investigations.
“By joining the convention, we are signalling to the other like-minded countries that we take cybercrime seriously and we are prepared to do our part to eliminate it,” Justice Minister Paul Goldsmith says.
The Bill’s provisions include:
- New ‘preservation directions’ in the Search and Surveillance Act, to enable law enforcement agencies to require companies to preserve records that could be evidence of offending.
- Amendments to the Mutual Assistance in Criminal Matters Act to enhance our ability to seek assistance from foreign countries for criminal investigations, and to provide assistance in return.
- Minor amendments to the Crimes Act to ensure offences related to cybercrime and the use of computers are comprehensive and fully align with the Convention.
Latest from the Beehive
16 October 2024
Today’s inflation figures are more good news for New Zealanders, Finance Minister Nicola Willis says.
Data from the first full calendar month of the Government’s welfare traffic light system shows more beneficiaries are doing what is required of them.
15 October 2024
The Government’s work to boost export value has hit another milestone, with a new dairy Bill passing its first reading in Parliament today, Agriculture Minister Todd McClay announced.
Legislation that will help protect New Zealanders from cybercrime has passed first reading in Parliament today, Justice Minister Paul Goldsmith says.
Speech
Speech to the Asia New Zealand Foundation ‘Asia Summit’, Legislative Council Chamber, Parliament.
Speech
New Zealand, like other countries, has faced significant economic challenges in recent years.
An email from Stats NZ – headlined Annual inflation at 2.2 percent – was emailed to Point of Order at 10.46am.
At 10.49am we received the response from ACT Leader David Seymour.
“Annual inflation at last year’s election was 5.6% – and now it’s cut in half, and then some.
“This news is the beginning of real hope for Kiwis who’ve persevered through a cost-of-living crisis. We’ve turned the corner on interest rates, and now we’re returning to normalcy on inflation.”
But Seymour sounded a caution, saying price growth is still near the top of the Reserve Bank’s target range and New Zealanders were still holding out for real relief.
“To turn hope into real prosperity the Government must keep saving, creating room for further interest rate cuts.
“We need to be ever vigilant of the inflation monster that Labour so recklessly let off the leash, so ACT will continue to push for the cancellation of spending programmes that do not generate real value for New Zealand.
“Of course, in the long run, reining in wasteful government spending means we do right by the Kiwis who pay the bills, letting them keep more of what they earn while paying down debt for future generations.”
At 10.50am a statement arrived under the heading Inflation hasn’t gone away, Government cannot lose its focus.
Obviously this was not from Nicola Willis.
No, it was from Taxpayers’ Union Policy and Public Affairs Manager James Ross, who noted that annual inflation had dropped to 2.2%, which is within the target range of 1-3% – but
“… that’s only half the story, and the inflation beast isn’t slain yet.
“Domestic inflation is still around 5%, which is proof beyond doubt that the Government needs to go further and faster in slashing wasteful spending and balancing the books.”
“Let’s not forget it’s taken a Reserve Bank-induced per-capita recession worse than after the Global Financial Crisis to try and get inflation to these levels.”
“The ‘medicine’ the Reserve Bank dished out has battered the economy and Kiwi households. Now, with interest rates decreasing, there is hope for a recovery. But the Government must increase its efforts to reduce expenditure, live within its means and ultimately start paying down some of its spiralling debt.”
At last, at 10.54am – we received the statement from Nicola Willis headed More good news for Kiwis.
The 2.2 per cent figure, she noted, was the first time the rate had been back within the Reserve Bank’s target range of 1 to 3 per cent since March 2021.
“The era of crushing price rises is now over.
“Kiwis can look forward to mortgage rate reductions and businesses will find it easier to invest and innovate with a lower cost of borrowing.
“The steps the Government is taking to reduce inflationary pressures by restoring discipline to public spending, reducing the red tape that is stifling innovation and development, and rebuilding business confidence are working.
“Together with the tax relief that took effect on 31 July, and the FamilyBoost childcare payments that many families are now receiving, falling inflation and interest rates mean large numbers of families are now better off than they were a year ago.”
There was more work to be done to get the economy growing, Willis said, but “New Zealanders can be confident we are headed in the right direction.”
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
1 comment:
The slowdown of the economy and reduced inflation is not due entirely due to Orr's antics. Whilst I am pleased to see inefficient govt jobs go, and especially those devoted to maorification, any reduction reduces economic activity both directly, and when seen as a threat by others, indirectly. So Ministers may not rush to proclaim success in moderating inflation.
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