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Home / New Zealand

Letters: Property mismatch, tennis, traffic cops, taxes, Prebble and Jones

NZ Herald
5 Jan, 2023 04:00 PM12 mins to read

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The property market is out of its usual seven-year cycle. Photo / Warren Buckland

The property market is out of its usual seven-year cycle. Photo / Warren Buckland

Opinion

Property market

For several decades, the property market in New Zealand has been the subject of what has been referred to as the seven-year property cycle - effectively the byproduct of supply and demand. In the last 50-odd years, property prices have increased steadily over time and have outstripped increases in incomes. So, we now have a mismatch. We also have an extraordinary conundrum in what are sharply reducing property values at a time when it has never been more expensive to build new buildings, and the high general inflation rate in NZ, which in my opinion will continue to rise this year, nearer to 10 per cent. So why the mismatch ? Quite simply put, Government and Reserve Bank interference producing what is now a very false market - nothing like the seven-year cycle. The Government has certainly had a policy of trying to reduce house prices, and to achieve this they have, in recent times, introduced a raft of measures designed to discourage investment in property as a long-term strategy. At the same time, the Reserve Bank, blindsided by events including rampant inflation, have also introduced measures to combat economic negatives. The fallout, which will become evident in the 2023 short to medium-term, will be catastrophic for many. Steve Clerk, Meadowbank

Tennis roof

For more than 30 years, tennis followers have been saying we need a retractable roof over the national tennis stadium at Stanley Street. With the ASB Classic suspended for three years due to Covid, this was the perfect time to build a retractable roof over the Centre Court. Then, [despite] Auckland’s unpredictable weather, the tournament could have proceeded uninterrupted. As it stands, it is highly unlikely that either the women’s or the men’s events will get through the draw in the allotted time due to the atrocious weather. Surely the Auckland Council, the Government and the main sponsor, ASB Bank, could have collaborated to finance this project? I think everyone agrees that this iconic tournament is great for tennis, the city and the country. In my view, this has been an opportunity lost and is a national embarrassment. The new tournament director had assembled the best-ever field of highly-ranked players, and ticket sales reflected that. So the situation is sad for both the players and the spectators alike. Hopefully, a roof could be constructed for the 2024 event. Glen Stanton, Mairangi Bay

Traffic division

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There were some very good contributions and this paper’s excellent up-front information on speed reduction and how a little patience can reduce road fatalities. As a licence holder for nearly 70 years and, dare I mention it, more than a third of that as a motorhome owner, one feels one has seen it all. Unfortunately, unlike the Pfizer vaccine, there is no ‘be calm’ pill available for frustrated drivers, so there have to be methods to soothe their angst and stupidity. Roads have been improved, and as one driver confirms, passing bays on difficult roads reduce frustration and improve traffic flow. It was suggested we should go back to traffic cops, and one heartily agrees. In 1992, the National government merged that arm of the establishment into the general police force. As a result, compliance decreased, average speeds increased and the road toll rose to 800, with a corresponding number of injuries. We need a separate division which, to be effective, needs a low-tolerance, [discreet] and high-impact approach. Traffic offence fines are 20 years out of date, so we need to make dangerous driving behaviour expensive. The levers are there, it’s just a matter of pulling them. Reg Dempster, Albany

Tax and services

VM Fergusson (NZ Herald, January 4) wrote about an uncomfortable truth. Why don’t we adequately fund the essential services that, from time to time, we will rely upon? We only need to look to Scandinavia to see that the issue is not insurmountable. That area operates on an economic model of high income and capital taxation on a large proportion of the population to produce well-funded essential services. Their top tax rates (50-60 per cent) are reached on incomes only about 1.5 times the average income. By contrast, NZ gives the wealthy a very easy run with a fairly flat income tax rate and a limited tax on asset profits (capital gains). Our top income tax rate of 39 per cent is reached at three times the average income. We are the only one of 35 OECD countries which are without a comprehensive capital gains tax. We have this strange notion that gains from investment are different from gains (wages) from work. In Canada, a capital gains tax was introduced in 1972, with the tagline “a buck’s a buck, a dollar’s a dollar”. The reality is that society cannot look after itself without the taxation contribution of the better off. The Labour political movement was formed to address this issue, but unfortunately, their governments have largely failed. A glaring recent (2019) example being the rejection of advice to institute a comprehensive capital gains tax. National’s current tax cut proposals would worsen the sorry state of our essential services. Tony Sullivan, St Heliers

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Election issues

With 2023 being a general election year, New Zealanders may want to start to consider, firstly about voting, and secondly about how the Opposition parties would have coped with a worldwide pandemic, and their future policies to make us the best country in the world for all New Zealanders. Given their neoliberal governing style and derogatory remarks about Labour’s efforts, the lack of Treaty obligations for our indigenous people, lack of empathy and understanding for the ‘bottom feeders’ of society, and ignorance of climate change advocates, 2023 must be the time for those groups to step up and vote for the wellbeing of the majority. Marie Kaire, Whangārei

Tales of woe

Prebble’s continual tales of woe, and his belief in the wokeness of Labour, is so far from reality. He reiterates the lie that Labour and Ardern have not achieved anything. This ignores how we recovered economically from the Covid shock. Robertson’s wage subsidy saved small business. Why ignore all the good changes and social policy made by this Government? Oh yes, he wants Luxon’s National to rule us all, and he will use alternate facts to prod us in this direction. National and Prebble are the reason we have such negative statistics. They sold off our utilities, social housing, and cut investment. It is taking a generation of Labour government to get us back to a country we can be proud of. The ram-raiders are the children he made homeless, and whose parents became hopeless and turned to P. Luxon’s policies of cuts and reversal of good policy will take us back to Prebble’s land of inequality and more crime. Who can honestly believe Prebble is knowledgeable and caring about New Zealanders after reading his diatribe? Frankie Letford, Hamilton

Australia’s influence

After gazing into his crystal ball, Richard Prebble’s futuristic comments on the state of New Zealand in 2023 make for very interesting and somewhat depressing reading. But what will probably turn out to be accurate and down-to-earth comments could have included the fact that the four major Australian banks would continue to suck another $6 billion out of our country, and in exchange, their government would continue to empty their jails out into NZ. Perhaps Mr Prebble should have included the words ‘penal colony’ in his description of a future NZ. Richard Telford, Lucas Heights

Jones and Prebble

Whilst I appreciate Shane Jones’s enthusiasm for using the full resources of the English language, he often gets carried away by his own eloquence, to the detriment of his message. His latest effort (NZ Herald, January 3) could almost have been produced by a random-phrase generator, as it leapt from topic to topic with a barrage of long words, demanding a lot from the reader. In contrast, Richard Prebble (NZ Herald, January 4) covered similar ground in a logical way, using short words and sentences. Whether you agree with him or not, you are left in no doubt over what he is trying to communicate, a skill he has consistently used for many decades. Clarity of message is key in today’s environment - Shane Jones and others, please take note. Duncan Simpson, Hobsonville Point

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Domain gardens

Read the article (NZ Herald, January 2) regarding the botanic gardens at the Auckland Domain [being] opened to the public after millions [was] spent on earthquake strengthening on the buildings there, but what do we find on arrival? One building alone opened, and the other still encased with scaffolding and nowhere near ready for the influx of visitors wanting to see what these improvements entailed. We have an attractive flower garden now, and that’s it. What happened to all the tropicals and exotics which were there before? Basically, flowers and garden colour. Where have the palms, cycads, and all that we love to see vanished to? What was very apparent was the unfinished state of the gardens and fernery. Is this just another Covid result or severe labour shortage or the like, or whatever, or sheer misreading of what all the visitors should have expected and deserved after the glowing news story about reopening? Or just a very casual nod towards the many visitors and locals used to something that once deserved a top spot on the city’s attractions? A bit Third World, in my humble opinion. Ted Partridge, Māngere

ACC levies

I agree wholeheartedly with Richard Underwood that motorcyclists are heavily penalised with ACC levies compared to e-scooter riders. I’m one of them. I pay many hundreds of dollars in annual ACC fees to be able to ride my bike to and from work. Not only that, if I’m caught by police not wearing a New Zealand safety-approved crash helmet, I would instantly be ticketed and suffer demerit points. Compare this to Hamilton city, where I commute daily and constantly see e-scooter riders without any form of protection at all, whizzing down the road (not the footpath) and in many cases matching my speed in slow, afternoon urban traffic. Regularly, I also note more than one rider per e-scooter, in many cases an adult with a child aboard. The Government urgently needs to correct this very unfair anomaly. Murray Brown, Hamilton East

Port problems

Mayor [Wayne] Brown proposes to move the port to Whangārei and bring all the containers to Auckland by rail! The rail track up north was completed in 1925. If the track has been maintained as well as Auckland tracks (currently undergoing a multi-year rebuild), the Northland track will also need a rebuild, as well as double-tracking. It could also be shortened with a tunnel under the Brynderwyns direct to the port. Such a project will cost tens of billions of dollars and take a lifetime to complete at New Zealand’s usual infrastructure build rates. It is hard to imagine any government committing to this when coastal shipping can do the same job without the huge capital investment, or time. Derek Paterson, Sunnyhills

Short and sweet

On stars in heaven

The death of Anita Pointer has not only reunited the greatest girl group ever. It made me think of others, some of whose fabulous voices were honed in gospel choirs and have also left this mortal coil. Aretha Franklin, Etta James, Nina Simone, Whitney Houston, Ella Fitzgerald, Billie Holiday and many more. If they would gather to sing me through the pearly gates when my time comes, then I will know for sure that I’ve indeed reached highest heaven. Amen. Jeremy Coleman, Hillpark

On the royals

So, Harry wants to get his father and brother back. He would do well to read the story of the wayward son that Jesus told. From Luke 15: “When he came to his senses, he said […] I will set out and go back to my father and say to him: Father, I have sinned against heaven and against you. I am no longer worthy to be called your son; make me like one of your hired servants.” Going back is tough, but often it’s the only way. John Aplin, Paparoa

On road education

Upon reading about lower speed limits, then the various letters encouraging police to step up enforcement, the ‘road of education’ is by far the best solution. Road driving education is required - please, educate and remind people of their responsibilities. Rob Davis, Whitianga

On traffic laws

Using a cellphone while driving is illegal. The law was passed in 2004. Yet, everywhere on the roads, people are driving with a phone in their hand. Why is this law not being enforced? Bring back the specialist traffic police force, as our current police are too busy with petty criminals. H Robertson, St Heliers

On licences

Your correspondents’ proposals to introduce a defensive driving course or a practical driving test as a requirement for attaining a full driving licence ignores the reality that many drivers using our roads don’t have a driver’s licence. You cannot purchase a firearm without producing a firearms licence; why is it you can buy a vehicle without producing a driving licence? John Walsh, Green Bay

On Covid

Having now finally experienced Covid, I am trying to find out when my next Covid vaccination is due, and I am feeling abandoned by our Government and Health Department as there appears to be no plan. My kids overseas have had the latest Covid vaccinations, but New Zealand appears not to be administering these. How can we go from total control to no control? Lesley Baillie, Murrays Bay

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