Reserve Bank governor Adrian Orr. Photo / Mark Mitchell
Landing strategy
Reserve Bank governor Adrian Orr needs to be careful with his rate rises. The effects are lagged, as much as 12 months.
To take us past an OCR of 4 per cent will be overkill. The ultimate hit to disposable incomes from the recent raising of rates will achieve the goal of curbing non-tradeable inflation, especially as the labour market deteriorates and some sectors slow.
Overkill increases the very great risk of a “hard landing” that would be akin to a fall on to concrete from two floors up.
Glenn J Pacey, Glendowie.
Overheads climbing
We can expect the inflation rate to stay above 7 per cent over the next two years until all of the $50 billion excess cash created by the RBNZ’s quantitative easing programme is absorbed by the economy.
As New Zealand currently spends around $200 billion per year on goods and services at a retail level, that excess inflation rate, of 5 per cent above the targeted 2 per cent, means we’ll pay $20 billion more for our retail purchases over the next two years.
That’s an inflation surcharge of $10,000 on every household in New Zealand.
No wonder everyone is demanding a pay rise, the average wage earner needs an immediate 10 per cent just to keep up.
John Denton, Eskdale.
Freezing point
The economists were so far off the mark in predicting the latest inflation figures that one wonders whether they ever make any purchases in the real world.
A range of industries, with supermarkets at the forefront, seems to be looking at the current situation as an opportunity to reset profit margins and/or recoup Covid-related losses across a wide variety of products and services. Most of this cannot be blamed on the weather, seasonal factors or the war in Ukraine.
It’s almost as if they are anticipating a Muldoon-style wage and price freeze and, given the Government’s disparate and desperate efforts to date to address the cost of living crisis, this surely cannot be ruled out.
If it happens, you heard it here first.
Duncan Simpson, Hobsonville Pt.
Social disaster
When Wellington idealogues and Auckland Transport minds meet, hapless Auckland home buyers face serious consequences. Glen Innes is a pertinent example, among many.
Developers couldn’t believe their luck when Wellington decreed – and Auckland Transport enthusiastically complied with - the edict they could build and provide no parking.
Twenty units became 30 units overnight. Tight and attractive streets and footpaths not designed for the littered miles of cheap cars vying for a park. What was called Housing Corporation was quick to start pepper-potting these suburbs.
In Glen Innes or Swanson you don’t skip to the elevator at the end of your street to descend into the subway to Britomart. You walk, in the rain and take your chances at the crowded bus stop. Or find your car, hoping it hasn’t been broken into and driven off.
Intensive housing with no parking in Auckland is a fantasy and a social disaster.
I had to drive to Orewa to cast my special vote for Wayne Brown. Like the majority who have had enough, I hope he is the harbinger of an upheaval that will go all the way to Wellington.
Time to take our city back.
Martin Dunn, Milford.
Seeing the trees
It is extraordinary the Government is proposing to give no credit to farmers for their existing native bush and shelter belts.
Few people would want sheep and beef farms replaced by pine trees on a large scale. Rural communities would be devastated.
Action on climate change is needed, but the obvious place to start is a tax on vehicle emissions, preferably completely offset by an income tax rate reduction for those on lower incomes.
John Strevens, Remuera.
Costly stand
I see that the former Labour Party MP for Hamilton West has announced that he is resigning from Parliament because he believes that the Labour Party is going to expel him sometime before the next election. He may well be correct but it is only his conjecture at this point in time.
In light of the cost of living crisis, maybe Gaurav Sharma could consider compensating the hard-pressed New Zealand taxpayers for the cost of the by-election caused by his resignation.
I am reasonably certain that the estimated cost of $1 million for a by-election could be far better used towards any number of needy causes. Say health, education or law enforcement to name just a few.
Dunstan Sheldon, Rototuna.
Myths dissipated
Tory MPs in Britain are now saying that Boris Johnson destroyed the myth of Conservative integrity and Liz Truss has destroyed the myth of Conservative competence.
With Christopher Luxon saying he is keen to imitate Tory behaviour, he’ll need to explain how he’ll avoid putting New Zealand through the catastrophe of Tory policy.
Mark Nixon, Remuera.
Fence-sitting
N. Hamilton (NZ Herald, October 18) writes that giving caregivers budgetary advice is the fence at the top of the cliff. People in poverty are, of necessity, excellent budgeters.
Those of us who are fortunate enough not to have to decide between a roof over our heads, food on the table or transport to work should be grateful for our own situations, and generous and compassionate to those not in such a privileged position.
The “fence” requires a change in attitude and some serious alterations in our monetary and economic structures.
Suzanne Kerr, Waiheke Island.
Merger alarm
Hylton Le Grice (NZ Herald, October 18) and other commentators including National’s broadcasting spokesperson Melissa Lee seem determined to consider only the worst possible outcome of the proposed merger of RNZ and TVNZ. This negativity is founded on the fact that RNZ is a “public service broadcaster” while TVNZ is a “large commercial enterprise” – “chalk and cheese”.
This conveniently ignores that RNZ and TVNZ evolved from the same entity (the old NZBC which had a dual public service and commercial mandate), that RNZ once own and ran a network of commercial stations without sullying the content of its non-commercial stations, and TVNZ ably provided two non-commercial TV channels (TVNZ6 and 7) which public broadcasting supporters fought to keep when a National government chose to disestablish them. Le Grice predicts “increased government control, and proliferating mediocrity” as the “unfortunate outcome of the merger” without evidence.
If there are genuine concerns about the potential for undue government influence they should be addressed but they are clearly being exaggerated.
Roy Ward, Freemans Bay
Such drama
I am pleased that a number of our leading actors have criticised Creative NZ, in some cases describing the members of this body in language much less poetical than Shakespeare’s (NZ Herald, October 18).
This episode comes soon after Latin was removed from the school curriculum.
Both cases show how the culture and heritage of many New Zealanders are being undermined by ideologues, some of whom also happen to be philistines.
Ironically, the strong public response, strong enough to force the Government’s hand, shows that Shakespeare is far from irrelevant.
R. Rimmer, Tauranga.
Viva Roto-vegas
Despite all the bad publicity about Rotorua recently, we went ahead with a family holiday in the city last week. What a great experience it was, especially for our grandchildren. The tourist attractions, while expensive, were first class and the development of the Lake Rotorua foreshore was amazing.
Clearly Rotorua has had councillors with a vision focused on families rather than in Auckland where the waterfront has been captured by expensive restaurants and drinking holes for tourists with minimal consideration for families.
Also, we saw no antisocial behaviour - only families out enjoying themselves.
Gil Laurenson, Eastern Beach.
Zero sense
The outcome of the “roading” realignment of Mission Bay is not fit for purpose. It beggars belief that the planning department of AT could sign off on what has morphed into a shambles. To complete this frustratingly long upgrade, AT will need to erect large signs stating “high crash zone take extra care”.
Mission Bay is a perfect example of Auckland Transport’s obsession with providing generous cycleways to the detriment of safe roading.
In keeping with most of Tamaki Drive from the port to St Heliers, motorists have been seriously short-changed with unforgiving narrow lanes leaving no room for error. Planners have sadly overlooked the needs of 99 per cent of users being cars, buses, trucks and vans. Providing car parking outside rush hour has created another hazard, including dodging opening doors and wing mirrors.
There is a serious disconnect between Waka Kotahi NZ and AT’s commitment to road safety and the reality. The road safety strategy “road to zero” has taken on a whole new meaning.
Bruce Eliott, St Heliers.
On cultures
As we go forward as a nation of Kiwis with a wide range of backgrounds, please may we be allowed to keep, celebrate and enjoy the best of what each of our various cultures contributes to life in Aotearoa New Zealand?
David Hopkins, Remuera.
On cannabis
We should legalise cannabis, use the taxes to repair our roads and call it Operation Pothole. Rick Mayne, Green Bay.
On education
I am still waiting – after many months; no years – for the Government to acknowledge the dire condition of our education system; and what it is doing about it. Rex Beer, Whangaparāoa.
On waters
Someone has to pay for the lack of long-term investment for over 50 years in our water management infrastructure. Better the taxpayer than the ratepayer. Bruce Tubb, Devonport.
On inflation
Is common sense on sabbatical? If people are trying to save money, then don’t eat at restaurants or buy takeaways. Lynley Cullinane, Burnside.
On emissions
Forcing farmers to pay an emissions tax will only serve to devastate rural communities, create job losses and make New Zealand a less wealthy country. All for what? To show how virtuous we are. Norma Cross, Wānaka.
Labour campaigning against tide in Hamilton by-election
“A bloodbath.” I hope so with every fibre in my body; they are not listening and they need to be punished. Ross P.
A distraction that Jacinda Ardern totally does not need at the moment. Labour must be ruing the day they selected Gaurav Sharma as a candidate for Hamilton. An absolute lose-lose for Labour. But it will be an interesting watch from the sidelines. Gaut S.
Ruing the day they selected Sharma, or rueing the dismissive way they treated him? Joanne W.
Labour has handled this poorly but there are clearly issues with Sharma, Parliamentary Service put a ban on him from hiring new staff for a year, it generally doesn’t do this for nothing. Jeremy C.
Interesting to hear Jacinda Ardern saying this is a by-election the taxpayers don’t need as it will cost around one million dollars. Particularly rich given she endorsed Paul Eagle running for Wellington mayor, who would have triggered a by-election if he had won. Mark Y.
Just like the $19 billion becoming a $9b overdraft, here we have a bloodbath expected but when the election sees a big loss for Labour, that becomes a “did okay”. Warren B.
Labour should have dumped Winston Peters’ waka-jumping law when re-elected in 2020. If it was intended to be used or not, it certainly convinced Sharma to jump. By standing against Labour, he is going to haul in a heap of their voters through his own popularity and how his former party has treated him. I agree it will be a bloodbath. David S.
How wrong can voters be about a prospective candidate? Obviously a little wayward in his thinking. This guy has played the good folk of Hamilton like a fiddle. How sad, embarrassing and costly. Lynette S.
Police say they are following lines of inquiry to catch the offender.