NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business

NZ needs to break the negative economic cycle - Richard Prebble

Richard Prebble
By Richard Prebble
NZ Herald·
26 Dec, 2023 04:01 PM5 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Kiwis got rain and Covid for Christmas. Photo / NZME

Kiwis got rain and Covid for Christmas. Photo / NZME

Richard Prebble
Opinion by Richard Prebble
Richard Prebble is a former Labour Party minister and Act Party leader.
Learn more

OPINION

Last Friday we were the only customers in the store’s bedding department. Christmas was not good for retail. It should not be surprising. There has been a slew of bad news.

Stats NZ says GDP per capita declined 0.9 per cent in the September quarter compared with the June quarter. We are poorer.

In the Treasury revised forecasts, tax revenue is down. Treasury revealed neither Labour’s free school lunches nor free prescriptions had been funded in the forward estimates.

Labour’s pledge to return to surplus in 2027 was a fantasy. Nicola Willis has announced $7.5 billion in savings over four years and promises to return to surplus by 2027.

Advertisement
Advertise with NZME.

It is highly unlikely the coalition can undertake Labour’s policies for less money. Stuff happens — earthquakes, cyclones, Ukraine war.

Stuff has already happened. Labour let in a record 245,600 new residents in the year to October 2023 — that is nearly the population of Auckland’s North Shore.

The $7.5 billion over four years is a fraction of the cost of the hospitals, schools, roads and housing the net population increase of 128,900 requires.

Advertisement
Advertise with NZME.

The only way for the Government to save money is to stop doing things. The Government’s books will return to balance only if the coalition stops spending where the benefits are not worth going into debt.

Experts will claim any reduction in spending is a social calamity. Our Covid response should make us cautious of experts who have no knowledge of economics.

We have been told our Covid response was the best in the world. The lockdowns before vaccines were available did save lives, but it was never feasible to be permanently Covid free.

Among the bad Christmas news is the Covid wave. There were 354 people in hospital with Covid as of December 17, six in intensive care.

Health economists measure health outcomes by mortality rates. Death is a statistic that is hard to fiddle with. Sweden, which did not lockdown, had from January 2020 to June 2022 the lowest percentage increase in mortality in the OECD.

New Zealand, an island nation, had an increase in mortality twice the rate of Sweden.

Lockdowns reduced Covid cases, but being locked down in overcrowded South Auckland houses caused other adverse health outcomes.

Swedish children have suffered no educational disadvantage due to Covid. We have a generation of children who face a lifetime of disadvantage.

Advertisement
Advertise with NZME.

The worst pre-Christmas news is school attendance in the third term, in which 54 per cent of school pupils did not attend regularly. The fall in attendance is in every decile and every age group. For Māori and Pasifika pupils, it is catastrophic.

Labour belatedly acknowledged that school attendance is a problem. Attendance was falling pre-Covid and now is one of the worst in the OECD.

Research reveals attendance affects NCEA results. Ministry of Education research shows each additional half-day of absence is associated with a reduction in the number of NCEA credits students subsequently attain.

Māori and Pacific students had the lowest regular attendance rates at 34 per cent. For Pākehā students, the rate was 48 per cent and for Asian students, 58 per cent.

Attendance by itself largely explains New Zealand’s declining educational achievement.

An Education Review Office survey revealed 40 per cent of parents do not think missing a week a term harms their child’s education. A pupil who misses a week of term by the time they leave school will have missed 52 weeks of schooling. Missing the last day of term to get cheaper airfares is paid for in lower NCEA marks.

Educationalists have seized on this finding to blame parents. Despite the Ministry of Education website saying “Schools, parents and whānau are legally responsible for making sure students attend school,” Labour’s June 2022 Attendance and Engagement Strategy says “Parents, caregivers and whānau are responsible for making sure their ākonga are enrolled in school and attend every day”.

In essence, Labour’s policy was to put the responsibility on parents, appoint attendance officers and ask schools to keep better attendance records. The policy was a spectacular failure.

Maybe it failed because schools and public health experts are telling parents not to send their children to school if they are not feeling well. My mother, who was a registered nurse, used to say, “Most of the world’s work is done by people who do not feel very well”.

How children get herd immunity by being kept from the herd has never been explained.

Research has found truants’ parents wanted them to go to school.

Act and National’s coalition agreement makes school attendance a priority. In essence, the policy makes parents responsible, appoints truancy officers and requires schools to keep better attendance records.

Doing the same as the previous government and expecting a different outcome is a frequent delusion of new governments.

Do not fund what you do not want more of. Fund schools for only the number of pupils schools teach, not the number they enrol. Attendance and educational achievement will immediately improve.

Save

    Share this article

    Reminder, this is a Premium article and requires a subscription to read.

Latest from Business

Politics

Meat and skincare on the agenda for PM's first day in China

17 Jun 11:36 PM
Business|economy

Back-pocket boost: Households could receive hundreds of dollars in extra disposable income

17 Jun 11:35 PM
Premium
Property

All rentals must meet five Healthy Homes standards by July 1

17 Jun 11:00 PM

Audi offers a sporty spin on city driving with the A3 Sportback and S3 Sportback

sponsored
Advertisement
Advertise with NZME.

Latest from Business

Meat and skincare on the agenda for PM's first day in China

Meat and skincare on the agenda for PM's first day in China

17 Jun 11:36 PM

Christopher Luxon's first day in China includes a surprising win for cosmetics exporters.

Back-pocket boost: Households could receive hundreds of dollars in extra disposable income

Back-pocket boost: Households could receive hundreds of dollars in extra disposable income

17 Jun 11:35 PM
Premium
All rentals must meet five Healthy Homes standards by July 1

All rentals must meet five Healthy Homes standards by July 1

17 Jun 11:00 PM
Major bank cuts rates for second time in three weeks

Major bank cuts rates for second time in three weeks

17 Jun 09:01 PM
Gold demand soars amid global turmoil
sponsored

Gold demand soars amid global turmoil

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP