This comment is far more about economics than politics. Today ACT's Treaty Principle's Bill was debated in Parliament and the Prime Minister didn't turn up. Why? He doesn't want anything to do with it. He just wants to talk about the economy. He wants you and me to talk about the economy. Well, here's a message from an economist, not a politician.
The Treaty debate IS an economic debate. It will determine the entire economic future of NZ. The PM's idea the two can be separated is fiction. His job was to lead the nation. Should he not like Seymour's Treaty Principles Bill, then it was a requirement for him to produce an alternative that would have settled the division and uncertainty that is the status quo. My view is that he lacks the conviction to do so, and revealed himself as intellectually incapable of it. Who cares about who wins the next election? Its not the Labour Party or National Party that the good citizens of NZ care about it. Its their own lives & nation.
Why is the Treaty debate an economic debate? Because our economic system is built on the ideal of equal opportunity; of the ideal that hard work & ability will be rewarded. In America they call it the American Dream. The 2nd line of the US Declaration of Independence states, "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness". It is considered one of the most significant lines in world history. Its the basis of the creation of wealth in the world's biggest economy. President Xi of China has developed a similar ideal, which he calls The Chinese Dream. It is the reason behind why Chinese have been striving to make themselves and their nation better off. It is why President Xi is fighting corruption, since that endangers the belief in the ideal of equal opportunity. Should that belief fail, China will fail. Today our PM didn't want to debate that fundamental driver of world economic growth - the belief we're created equal so our efforts will be rewarded and not taken away by others. Which spurs our very will to achieve.
The PM thinks the economy has nothing to do with the Treaty Principles Bill. He thinks the Treaty debate, which is about defining the inalienable rights of every Kiwi, and whether or not we are created equal, has nothing to do with NZ's economic prosperity. The PM wants to walk away from the Treaty. He wants everyone to talk about foreign investment, tariffs and trade deals. This economist says to him - you've missed the point about what ultimately drives economic growth. Resolving Treaty disagreements will determine how our economy performs, now and in the future. It determines whether our youngsters and top talent stay in NZ or leave. Misleading us into believing the Treaty is irrelevant to the economic reforms required to create more wealth in NZ is to play us for fools. When the PM walked away from the Principles Bill debate, he walked away from sorting out NZ's economic future. He walked away from helping write our own Declaration of Independence. He abrogated leadership.
Why is the Treaty debate an economic debate? Because our economic system is built on the ideal of equal opportunity; of the ideal that hard work & ability will be rewarded. In America they call it the American Dream. The 2nd line of the US Declaration of Independence states, "We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness". It is considered one of the most significant lines in world history. Its the basis of the creation of wealth in the world's biggest economy. President Xi of China has developed a similar ideal, which he calls The Chinese Dream. It is the reason behind why Chinese have been striving to make themselves and their nation better off. It is why President Xi is fighting corruption, since that endangers the belief in the ideal of equal opportunity. Should that belief fail, China will fail. Today our PM didn't want to debate that fundamental driver of world economic growth - the belief we're created equal so our efforts will be rewarded and not taken away by others. Which spurs our very will to achieve.
The PM thinks the economy has nothing to do with the Treaty Principles Bill. He thinks the Treaty debate, which is about defining the inalienable rights of every Kiwi, and whether or not we are created equal, has nothing to do with NZ's economic prosperity. The PM wants to walk away from the Treaty. He wants everyone to talk about foreign investment, tariffs and trade deals. This economist says to him - you've missed the point about what ultimately drives economic growth. Resolving Treaty disagreements will determine how our economy performs, now and in the future. It determines whether our youngsters and top talent stay in NZ or leave. Misleading us into believing the Treaty is irrelevant to the economic reforms required to create more wealth in NZ is to play us for fools. When the PM walked away from the Principles Bill debate, he walked away from sorting out NZ's economic future. He walked away from helping write our own Declaration of Independence. He abrogated leadership.
Professor Robert MacCulloch holds the Matthew S. Abel Chair of Macroeconomics at Auckland University. He has previously worked at the Reserve Bank, Oxford University, and the London School of Economics. He runs the blog Down to Earth Kiwi from where this article was sourced.
44 comments:
So very true.
Totally agree with Prof Robert. I’m shocked and disappointed that this Bill has been rejected. The political bungling that has surrounded the Treaty over the last 50 years, continues.
I don’t see a positive future for NZ solely because of the way the country is now split by ethnicity. We’re not one people with equal opportunity. A group of part Maori have been elevated to a superior position and their primitive culture increasingly forced upon the rest. And this has all been based upon fictitious reinvention of a flimsy treaty document which was never intended to be the basis for a modern society.
My regret is that, on returning to NZ 18 years ago I didn’t go to Australia. Now a much better country. I have 4 children, each successful, 3 living offshore. I am advising them to stay there. Don’t return to what has become a silly country!
Yesterday, April 10, 2025 —a date which will live in infamy—the Country of New Zealand was wilfully and deliberately 'spiked' by the actions of a Prime Minister of the National Party.
New Zealand, a Nation struggling with the legacy of over 50 yeas of misrepresentation of the Articles of the Treaty of Waitangi by activists intent upon sedition who are despicably aided by others intent on usurping the will of the silent majority of its citizens, was presented with an opportunity to correct this situation. Citizens who simply wanted equality for all and for it be affirmed that we all have the same rights and responsibilities, without exception, were effectively neutered! National’s Tama Potaka had, in days prior to the Bill's reading, shamefully uttered that “nehu [burial] day is coming for the Treaty Principles Bill”. And while this venomous comment says a great deal about the one who uttered it, one wonders if he has pocketed his 30 pieces of silver for his part in the betrayal of New Zealand's people? So with Easter looming, it must be time for a resurrection ... or maybe that should have been a referendum? PM Luxon must surely realise that the people having such a direct, unambiguous say would be preferable to a revolution that would inevitably be required to counter He Puapua and Matike Mai?
The Professor is absolutely correct. I wrote to my National MP prior to the last election and said that having listened to his 'leader', now PM Luxon and said clearly that if they did not address the Maorification, Co-governance issues, we would not have an economy worth worrying about. Since then nothing effective has been done to reduce the damage done by the insidious indoctrination that has supplanted education in New Zealand, the indoctrination that has been allowed to pervade our professional institutions governance. I could go on but it is self-evident. Our Country needs real leadership to turn things around - will it have that? On current performance, I doubt it as W. Edwards Deming said that Management by Objectives is the abdication of leadership.
I think many people are loathe to criticise Chris Luxon as they see the alternative of a Labour, Greens, Maori Part as an anathema. This is unfortunate as it is so true that our economy would thrive if it was based on equal access to business opportunities, university education without the now Maori bias, and no racial preferential treatment which is rife now in so many areas and causes resentment. Already, most of us know very worthwhile contributors to New Zealand society who have left for greener pastures overseas because of entrenched race-based policies. It is most unfortunate that Luxon not only didn't support the TPB, didn't front up to the debate, but in his own words "spiked it". Personally, I think he has a certain business acumen but lacks intellectual capacity, empathy for his voters and many worthwhile traits which would prevent him becoming a really good Prime Minister.
A grotesque charade in Parliament with only 1 party of 5 speaking with logic and reason in the interests of all citizens. But given the damage of the past 50 years , will emotion ( empathy) and hysteria win the day? People should be afraid.
Thank you Robert!!, finally some truth. I hope Luxon and co read and think !!!!!
With the country on the cusp of becoming a divided ethnostate, with grievances and victimhood ever growing and ‘Maori’ (as a cohort) taking financially far more out of the economy than it’s contribution, settlement of the Treaty debate is pivotal to our future. Luxon was arrogant to be dismissive of the views of the public before he had even heard them, especially when from his past utterances he appears wilfully ignorant of what the one and only Te Tiriti actually says. He has denied the public its right to be heard, and he now rightly deserves our opprobrium and lack of all future support and respect. To paraphrase a comment by Don Brash - he should be gone by lunchtime. Certainly, NZ’s future would look much the brighter for it.
Everything thing we do to make NZ prosperous is held back by this need to look back 200 years into the past. We need to get real, look to the future and a good start is the everyone being equal with equal opportunities. How anyone could cheer with the defeat of Seymour's Bill, which was about equality, shows me how stupid some people are
The empty front row at Parliament yesterday was despicable .NZers think about a new leader and the media favourites were all absent including the gutless incument PM . Winston put in an apology. Accepted. Hipkins speech was just sad and did nothing for NZ.
The speaker Brownlie was an own goal, he just has to throw some of the Labour and opposition petulance out on the street for good.
thank you professor! it may be the bleeding obvious to so many of us but Luxon is a weak and silly little man who is not much of a leader. He is ignorant and spinless.
This is the best Ive read in regards to this and Luxon. You are absolutely correct here. Very disappointed our "leader" didnt figure this out.
Spot-on, Professor! Not looking at a wound is not going to cure it, and can lead to gangrene.
This is well said Professor MacCulloch. I have ever only done Econ 101 and from that I learned only one thing: Economics is not about money; it is about people. Economics is applied psychology and sociology. Ignoring the source of our power is ruining New Zealand.
Powerfully written Robert. Indeed, the PM has clearly evaded his responsibility by refusing to take the first step towards repairing the divisional damage created by the Marxist, Comrade Ardern. Instead, Luxon hung David Seymour out to dry which will seriously hinder our economic recovery.
National has shown they support the concept of dual rights, not openly, but behind closed doors. So our drift into an racially divided society is going to occur, it is just a matter of time.
So it is time to rip the bandaid off and get it over with, indecision and aimless drifting is even more damaging. At the same time it is time to have a burial day for the national party. Their only reason for existence was they were better managers, but they no longer even have that. So shove them in a box and bring my them deep.
There's something seriously wrong about team Luxon. Ironic that they displayed such lack of leadership, vision and courage in such a way, and chose Wahine Day to do it! Speaking of wahine, who is Luxon really in bed with?
Why does Luxon hate the Bill so much?
Luxon's most ignominious moment as Prime Minister.
Many of the commenters here confuse the National Party with Luxon. This is NZ, not the US. He can be replaced. However, that is a big step. I agree with much of Professor MacCulloch's advice, but I would say that on its own, it is not a good enough reason to replace Luxon and risk losing the election.
There is also that matter of Luxon's climate change alarmism and his refusal to take note of his poor personal ratings and the unhappiness of many of his MPs. I would hope he could change and learn to listen to other people's arguments. If he does not, he should be rolled.
Fully agree Peter (and with all other commentators), but, and it may be a somewhat elliptical, controversial and perhaps even unthinkable solution, I think NZ actually needs that jellyfish Luxon and his invertebrate government back in power next election as the alternative is too hideous to contemplate. If National gets back in coalition, we have another 3 years to insult Luxon (if he is in fact still leader or PM) and perhaps have the chance to swing his thinking back to sensibility. Otherwise, a Labour, Greens or Maori party coalition, or any other mix, will have many of us dusting off the tumbrils and sharpening the guillotine. Take very chance you can to get ACT in a position of greater power than it currently has.
Luxon’s approach to governing could be summed up as ‘get the economic settings right and, over time, the social issues will recede in importance’. However, the interdependence of the social and the economic spheres complicates policy enactment quite uniquely in this country. Increased productivity requires a socially-cohesive population as well as sound economic settings. Most members and adherents of our main right-of-centre party will know this. Somehow, Luxon needs to articulate a plan that resolves the important social & economic roadblocks simultaneously. That is his big problem in a nutshell.
There is one big win for ACT and all other Kiwi's who want N.Z. to be a democracy, the subject is now well and truly out in the open.The more the Maori radicals and their Watermelon mates call for tribal rule, the more often the subject of losing our democracy will be raised to counter their demands for separatism.
Cast your mind back when Luxon was Air NZ CEO. All inflight safety promotions featured Māori bullshit. His collaboration with Māori has followed him to this very day. Why are they still able to pull his chain?
Given the comments here, why were there far more Against submissions? Those folk are hungrier and more energized. They are organized and involved. I hate to have to say it, but they deserve to win. Those for the Bill are only so in an abstract way and their culture is decadent and past its time. You need to do more than write notes in Comments sections.
Barrie, maybe a lot of people thought (quite correctly) that it was a foregone conclusion so they didn't bother. The 'silent majority' save their comments for polling day.
There are issues about the bulk submissions albeit they were individually prepared but we just have swallow bureaucracy at its worst. Many people would have rightly believed that a referendum was justified and waited .
The corporations uniparty, (two cheeks of the same backside) have abrogated leadership of NZ on this issue since 1975, and we the people have allowed it.
The corporate apartheid agenda will now gather momentum as it hikoi’s its way towards it’s 2040 climax.
But hey, wasn’t that waiata in the gallery nice. Pity Luxon missed it.
Barend, you contradicted yourself. If people thought that it was a foregone conclusion so they didn't bother, that means they thought there would be no polling day for them to save their comments for. I think the 'silent majority' are just complacent and by the time they figure out that is not a winning strategy it will be too late.
On the button again, as usual, Prof Robert.
A prediction: Next year’s election will be a referendum on this issue - either an actual referendum (unlikely, as National will fight against that), or more likely a de facto referendum of ACT vs National for control of the centre-right block.
It’s clear ACT will define what it wants ahead of the election. My take is that it will include details of what it sees as necessary on this issue.
Vote for ACT if you support equality for all. Vote for National if you want the situation to continue undefined and for the division to continue.
Why was majority support not reflected in treaty bill submissions?
Two reasons:
1. Opposition is a more powerful motivator than support, and,
2. People don’t want to lose their jobs, professional accreditations, or be cancelled (but they do want a say on this issue, provided it is a secret ballot).
For proof of the latter, and the degree of support for the treaty bill, visit https://thefacts.nz/treaty-principles-poll-3/
The sentiments expressed here reveal that those of us reluctant to be silenced by the devious manner in which Maorification is being thrust upon us are a force growing daily. The Bill was doomed from the start and now the onus is upon us to publicise our viewpoint and not just retreat. A country-wide audience needs to be made aware of the rampant sedition gathering force. Already some features of it seem to be ineradicable.
Reckon we see Luxon depart after Budget. Nats & NZF collaborate on this issue for next election with Act. See a full Referendum on the horizon. There's a "long game" at play. Goodbye Luxon, TPM, Maori seats... And in comes Treason and Sedition back to the Crimes Act..... [since Aunty Helen got rid of them...]
He's not a politician....
Luxon is making a mess of everything he touches.
What does he think will happen in another few generations, when Maori blood is even more diluted, when people with even just a smidgen of Pacifica blood are governing Europeans, Asians, our large Indian population because Luxon thinks they should have greater rights ?
Luxon, think of the disaster you are both creating and allowing to happen while you ard in control ?
How is history going to regard you ?
As the second most hated prime minister after Ardern ?
To Barrie Davis (April 11, 2025 AT 1:12 PM) - your opening statement regarding " why were there far more Against " - that comes form the Civil Service/ Judicial - who oversaw the written submissions presented - their statement needs to be challenged.
Many ' moons ago" we had a referendum on the potential of MMP - NZ went and cast their vote, It was ' announced ' that the majority said yes. Yet when you spoke to people [on the street] - many said - we voted NO - on the basis it was not clearly presented and other saw problems going forward, and did not think was a wise move for NZ. Later a Govt of the day - " said we will review" - the " review came back and said - there will be no change ". Now look at what we have !
And [for once] I agree with Barend V. - and that is the way Kiwi's think & act - with politics - but not with Rugby.
Prior to the last election I shook Luxon's hand and wished him well.
I deeply regret that now.
How many others now feel the same ?
FDR's original speech began with "Yesterday, December 7, 1941—a date which will live in infamy—the United States of America was suddenly and deliberately attacked by naval and air forces of the Empire of Japan."
If we compare the impact of Luxon's actions here with those of Japan back then, the only difference would appear to be that the attack on NZ Citizens' equality regarding rights and responsibilities has come from within.
Chuck, you write that " it is not a good enough reason to replace Luxon and risk losing the election". Surely this should be written as "it is a good enough reason to replace Luxon and win the election".
I will not vote for a Luxon led National. I will not vote for a party led by a man who believes that the economy is the single most important issue facing New Zealand.
We only have some public servants word (probably pressured) that there were more against than for. It's possibly true but what is a blatant lie is the percentages quoted. The devious way of counting (ie counting multiple submissions as one ) would explain the result. Watched PM cuddling up to Tuku Morgan and Tainui tonight on TV1 news. Shows his true colours and how he has really been sucked in by likes of Tainui and Nga Tahu (listen to his Waitangi Day speech )
Luxon is naive to the core. If he believes the ongoing claims to the Waitangi Tribunal are legitimate wrongdoings, then there is no hope for the country.
RogerF, I voted Act at the last couple of elections and will vote Act next year. It is not up to us if Luxon remains leader. It is up to the National MPs. I know for a fact that many are not happy with his arrogance and it is more than issues relating to Maori. Many farmers are happy with his climate change alarmism.
This mess would be over if evety person who voted National at the last election committed to vote ACT at the next one.
Nobody seems to mention that this rort is costing the country $10 billion dollars in favour of maori every year...they could use that to get out of debt
Luxons betrayal will be paid back..we paid back winstone for going with labour in the first term against the people's wishes...and it all goes to show what is wrong with mmp
The other reason I believe we are doomed is that no international corporate or company is going to invest in our country when their assets/property could be taken away by a extreme left leaning government.
I'd be curious to know who the professor sits with at the cafe in the university :)
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