Efforts pay off with economic growth

Source: ACT Party

“It’s official: the economy is growing,” says ACT Leader David Seymour in response to new gross domestic product figures from Stats NZ showing 0.7 percent growth in the three months to December.

“Firms, farms, and families have made tough sacrifices in a cost-of-living crisis, but now they’re starting to see the fruits of their efforts. Inflation is under control, interest rates are getting lower.

“The economy returned to growth last year and is growing further. The Government must keep saving so there’s more for everyone to spend.

“As households have more money to spend, and businesses gain confidence to invest and employ, we’ll see more growth, better paying jobs, and more reasons for the next generation to build families and careers in New Zealand.

“With ACT in Government, we’re doing our part to speed along the recovery, cutting waste in Wellington and stripping back red tape that stops Kiwis from being productive. Let’s stay the course.”

Is police abolition official Green Party policy?

Source: ACT Party

ACT Justice spokesperson Todd Stephenson is calling on the Green Party to confirm it does not support police abolition.

“Tonight, Green MP Tamatha Paul will give a talk in Christchurch about ‘the police, and what alternatives we could have to the police, and what radical police abolition could look like in real terms‘. Those are her own words, from a TikTok video.

“This is just nutty stuff. It’s easy to be anti-police until you find yourself threatened by crime. That’s when we all rely on the ability to call police with the tools and powers to protect us from violence and theft.

“She’s also out of touch with the communities she claims to represent. Poorer New Zealanders and Māori are disproportionately likely to be victims of crime, and more likely to need the protection of police.

“This comes just a few weeks after she told her 37,000 young TikTok followers that the ‘vast majority‘ of people in prison are there for non-violent offences that they’ve ‘had to do as a response to poverty‘. In the real world, more than half of prisoners are there for homicide, sexual assault, acts intended to cause injury, and unlawful entry with intent/burglary.

“Tamatha Paul went on to say people are in prison because ‘They’re being punished for being disabled, they’re being punished for being poor, they’re being punished for being Māori, they’re being punished for our system that we have in our country.

“At best, Tamatha Paul has deluded herself. At worst, she is using her platform to actively misinform her followers and make them more likely to support radically pro-crime policies like police abolition.

“I’m proud to say that, with ACT in Government, we have scrapped Labour’s prisoner reduction targeted, while introducing tougher sentences so dangerous criminals are locked up for longer. On issues of public safety and justice, we are the anti-Greens – delivering consequences for crime and putting victims first,” says Mr Stephenson.

The Oppression the Left Forgot

Source: ACT Party

The Haps

Your property is safe as Parliament is shut and David Seymour is the Acting Prime Minister. Yesterday, ACT made the big announcement that for the first time ever, we’re seeking candidates to stand in local council elections. We want common-sense Kiwis to champion lower rates, less waste, equal rights, and an end to the war on cars. If that sounds like you, learn more at actlocal.nz.

Meanwhile ACT MPs have been out in force at A&P Shows and Field Days, they report tremendous support from rural New Zealand and we are grateful to hear it.

The Oppression the Left Forgot

Besides a pandemic, the last decade has consisted of economic paralysis and cultural division as Governments dumped years of live-and-let-live liberalism to focus on identity politics. Jacinda Ardern and Justin Trudeau were the pin ups for this dismal movement, managing to tank their respective countries’ economies and make everyone angry at each other.

Free Press regrets to inform you that the DEI brigade missed a large oppressed group. This group has disastrous education statistics, lives years less than the national average, in part because of their high suicide rates, and is far more likely to be arrested, charged, sentenced, and imprisoned. Some speculate this is due to years of violence, including being held in state institutions, and in armed conflict.

In recent years, prominent members of this group have been forced by their managers into public humiliation, pronouncing that they’re sorry for being part of this group. The group is regularly ridiculed in media and advertising, and not expected to complain.

The group is, of course, men. If any other group had the social statistics men do, there would be a special ministry, a ‘day,’ targeted support programs, and probably quotas to help them on their way.

That there is none of that, and that some people will be angry to read any of this, is just one of those modern mysteries. Why are men such a blind spot for all the luvvies, despite dismal social statistics that would normally justify an entire Government department?

Some will point out that women do face serious problems. Domestic and sexual violence are overwhelmingly problems for women. Even today there is a connection between domestic work and earned income. Claudia Goldin won the Nobel prize for explaining the remaining gender pay gap this way.

Other people having problems, or even causing other peoples’ problems, has never stopped the luvvies before. There must be some better reason why men’s abysmal suffering is not the subject of some major leftie sympathy.

Our best theory is that men doing badly blows up the whole DEI identity politics movement of the past decade. The movement’s basic story is that if anything is wrong in the world it’s because bad people have been oppressing them, perhaps for hundreds of years.

Why are Māori doing badly in the stats? Colonisation. Women? The patriarchy. LGBTQI+. So many reasons. There is even a fattist movement claiming ‘society’ has designed its aeroplane seats, magazines, and institutions to silence fat voices (we are not making this up).

But who oppressed men? Men can’t be oppressed. They are needed to play the villain of the piece. In a play where everyone is a victim or a villain for historic reasons, not everyone can be good, and certainly not those needed to be bad.

A worse conclusion would be that women are oppressing boys. Practically all early childhood teachers, six-out-of-seven primary teachers, and two-out-of-three high school teachers are women.

If it was the other way around the picture would seem sinister. Perhaps teacher gender is why last year 42 per cent of girls came out of high school with University Entrance compared with 32 per cent of boys. Oddly this explanation of oppression by a dominant group has not been emerged.

Nor should it. The whole idea that we are not thinking and valuing individuals but instead members of a group is bunk. It’s led to more division and anger than it’s worth (which is not much to start with). It’s disempowered people by making them think they are products of history, instead of masters of their own destiny.

A better way is to let people problem solve by innovating. Charter schools are a pin-up example of this. Vanguard Military School (run by ex-servicemen), and Te Aratika Academy (run by a civil construction firm) offered different education that some might see as filling the male role-model gap in education.

The same could be said for most problems we’re currently blaming on colonisation, the patriarchy, or whatever cause du jour is on people’s minds. More innovation in social services, more economic opportunity for people who want to take it, a more dynamic and innovative society generally is what’s needed.

For all those who still think the world is made up of victims and villains, with the past made up of endless oppression, what are you doing for men?

ACT looks to stand candidates in local council elections

Source: ACT Party

For the first time ever, ACT is looking to stand candidates in local council elections.

Today ACT Leader David Seymour announced the Party is seeking expressions of interest from New Zealanders to stand for their local council under the ACT banner.

“ACT has been focused on tackling the cost of living, wasteful spending, and co-governance in central government. But when I travel the country, I’m constantly told that local councils have failed to address these same concerns at the local level.

“Kiwis voted for real change in 2023, but our councils seem to have missed the memo. It’s time for a clean-out.

“Ratepayers are fed up with councillors who make big promises to get elected, then whack up rates, neglect roads and pipes, and waste money on pet projects. They’ve waged war on cars with cycleways and speed bumps while pushing divisive race-based policies like co-governance and Māori wards. Meanwhile, the basics – rubbish collection, fixing potholes, keeping rates affordable – get ignored.

“In Government, ACT is fighting for real change, slashing wasteful spending and reining in the cost of living. ACT councillors would do the same: lower rates, scrap the nice-to-haves, end the anti-car ideology, and take race out of local politics.

“We’re seeking practical, community-minded New Zealanders to step up. We don’t want career politicians. We want people who are sick of the nonsense and ready to focus on what matters – keeping rates down and services up. If that’s you, we want to hear from you.”

ACT is inviting potential candidates to visit actlocal.nz to learn more and register their interest.

“Councils won’t change unless good people act. This is your chance to deliver real change for your community with ACT,” says Seymour.

ACT in the engine room behind new infrastructure projects

Source: ACT Party

ACT MP and former civil engineer Simon Court is welcoming the suite of projects announced at the Investment Summit set to capitalise on new and improved private infrastructure delivery pathways.

“The private sector brings innovation, expertise and capital – both domestic and international – that drives faster delivery of better infrastructure that stands the test of time.

“After a long PPP hiatus, supercharging New Zealand’s PPP model was priority number one for me as Infrastructure Under-Secretary, and it’s pleasing to see several PPP projects take centre stage as we showcase to global investors New Zealand’s opportunities.”

There are several PPP announcements from the Summit:

  • Transport: Northland Roads of National Significance PPP, with the first 26-kilometre stage approved for the next procurement stage.
  • Corrections: Christchurch Men’s Prison Redevelopment PPP, with funding approved through Budget 2025.
  • Justice: three upcoming new courts in Waitakere and Rotorua to be delivered via PPP.

Speaking from the Summit, Mr Court is buoyed by investor interest in other private-friendly opportunities relating to models he has led as Under-Secretary, including strategic leasing (or ‘PPP-lite’), market-led (or ‘unsolicited’) proposals, and Infrastructure Funding and Financing Act ‘special purpose vehicles’ (SPVs).

“Health Minister Simeon Brown has signalled the trifecta of PPPs, strategic leasing, and market-led proposals are all on the cards for upcoming health infrastructure – all have important roles to play as we drive our health infrastructure recovery.

“Summit attendees have already expressed particular interest to me in this ‘PPP-lite’ strategic leasing pathway as an easier way to get involved on smaller scale projects.

“There was also significant interest in SPV opportunities – where private capital finances infrastructure in exchange for levies on those benefitting – under the Infrastructure Funding and Financing Act I am panel beating into shape. This is great news, particularly for local government infrastructure.”

Mr Court is also welcoming the tolling concession announcements. Tolling concessions have delivered great infrastructure abroad, including through PPPs, where users – rather than taxpayers – foot the bill.

International students forced to pay up to $5,730 for compulsory Treaty course

Source: ACT Party

ACT’s Tertiary Education spokesperson Dr Parmjeet Parmar is calling on Auckland University to scrap its compulsory ‘Waipapa Taumata Rau’ course, covering the Treaty of Waitangi and traditional Māori knowledge systems, after discovering that international students are being forced to pay thousands of dollars for it.

“It’s no wonder Auckland University is slipping down the international rankings when they’re charging students up to $5,730 for a course that has no relevance to their studies or future careers abroad.

“This mandatory course is damaging the university’s reputation among international students, who we rely on to pay full fees and subsidise costs for local students and taxpayers. A student who speaks English as a second language and only plans to stay in New Zealand for their degree gains no practical benefit from being forced to study local indigenous belief systems.

“When students have flexibility in their schedules, they can choose electives that align with their academic or personal interests. This choice brings interest and enjoyment to the university experience and attracts students. Forcing them into compulsory courses they don’t need or want takes the joy out of study and discourages enrolment.

“Auckland University should be focused on academic excellence, not ideological box-ticking. It’s time to let students decide what’s best for their education.”

Banking Inquiry exposes $600 million rural lending squeeze

Source: ACT Party

ACT’s Rural Communities spokesperson Mark Cameron is calling on the Reserve Bank to scrap its restrictive banking capital requirements, after banking bosses admitted these rules have added billions in extra costs to borrowers – hitting farmers the hardest.

“In our Banking Inquiry, BNZ has told MPs the Reserve Bank’s capital rules have driven up farmers’ interest rates by 1%, meaning a 6.5% loan is now 7.5%. That’s $44,000 a year in extra costs for the average farmer – money that should be going into wages, local businesses, new technology, or paying down debt faster. Instead, it’s being eaten up by regulatory overreach,” says Mr Cameron.

“BNZ’s CEO understated the cost of these rules by a factor of nine due to a calculation error. He told the Select Committee the cost was around $200 million, but the real figure is closer to $1.8 billion – with $600 million of that burden falling on rural borrowers.

“The irony of these rules is that by putting pressure on sectors such as farming, it risks putting people out of business and fuelling the instability the rules are meant to prevent.

“ACT warned in 2019 that these capital requirements would hurt farmers and small businesses, and sadly, those warnings have now been vindicated. At a time when we need to be going for growth, we simply can’t afford to be having red tape strangling our rural economy.”

Notes to editors:

During questioning from Mark Cameron, BNZ CEO Dan Huggins stated the impact of the stricter capital requirements was “roughly based on our numbers…the average of all loans is roughly 30 basis points at the moment”, going on to say “I think there’s roughly $600 billion worth of loans in New Zealand. So if you see 30 points across all of those loans, then you’re talking $200 million roughly, you know, plus or minus. So it’s a big number.”

30 basis points or 0.3% of $600 billion worth of loans is $1.8 billion, not the $200 million as Mr Huggins claimed, likely as a result of a decimal point error when trying to do on the spot mental calculations.

BNZ also confirmed that the impact of the capital requirements was an approximate one percentage point increase in rural lending rates, equating to roughly $600 million across the $60 billion in total lending to the agriculture sector.

Councils need to follow Govt’s lead on procurement

Source: ACT Party

ACT Leader David Seymour is calling on local councils to ditch complex procurement rules, in line with today’s announcement for central government from the Economic Growth Minister.

“MBIE encourages local councils to follow all-of-government practice on procurement, so councils should sit up, take notice, and rapidly implement simplified procurement policies in line with the Government’s moves.

“It’s absurd that councils are forcing traffic management operators and pipeline technicians to explain their commitment to Te Tiriti, or their approach to climate change, or their recycling practices.

“Last year, the Government has scrapped Labour’s race-based procurement targets, but local councils seemed to miss the memo. Many councils continue to interrogate would-be contractors about the ethnicity of their employees, or whether they are Māori-owned.

“When a council considers a contractor, the focus should be on value for money – can they get the job done, at a competitive price.

“Dopey procurement rules add more costs to contracts, and discourage some operators from even trying to bid for contracts. Less competition for council contracts ultimately means higher prices, and higher rates.

“Simplification of council procurement will cut costs, promote competition, and reduce the cost of living.”

ACT’s research team has identified examples of ridiculous procurement rules at local councils across the country. These can be provided to media on request.

Can your efforts make a difference?

Source: ACT Party

The Haps

The world keeps changing, as Free Press surveyed last week. So far, trade wars have not affected New Zealand or interrupted our usual diet of domestic political stories about lunches and Wellington gossip. That could change quickly and we’ll be watching closely for trade trouble coming to our farmers and manufacturers. Meanwhile, New Zealand reached out to the world with the Infrastructure Investment Summit on later this week, the contrast reminds us New Zealand actually needs the world to function and invest.

Can your efforts make a difference?

For many people, the ACT Party began with them reading Richard Prebble’s excellent classic I’ve Been Thinking. The book is nearly thirty years old but the heart of the party is summed up as the line ‘this is not like bad weather’; you can change your future.

Prebble bases the thesis on an unusual but fascinating source. 1950s’ academic David McClelland took it upon himself to study nursery rhymes in different cultures, thinking that whatever parents told young children was a window into a culture’s true beliefs.

Long story short, McLelland divided the stories into luck-based stories and achievement-based stories. In some stories characters drifted along at the whims of mystical powers, in others they took charge and changed their future.

Prebble pointed out the popularity of Aladdin at the time of his book may not be good for us, we wouldn’t get rich by rubbing magic lamps. On the other hand, McClelland predicted the Japanese, with their achievement-based stories, would quickly recover from the destruction of WWII to become an economic powerhouse.

Free Press has limited intel on contemporary Kiwi nursery rhymes. We worry about hagiographies of Jacinda Ardern, and stories about the magic of being born Māori, and we hope they’re not representative.

We do know a bit about public policy since Prebble remarked on Aladdin. We think there are clues about why this country has lost its mojo, and how to lead the country back to it, in the simple idea that people should be able to make a difference in their own lives.

Since the mid 1990s basically every policy has been designed to disconnect effort from reward, and our productivity growth has tanked. Take the NCEA.

When Prebble wrote there were such things as School C and Bursary. These exams were kept secret until the moment every student at that year level and subject sat it at the same time. The NCEA changed all that, you could pick your units and do them in your own time, as many times as you liked.

This year when the Government said there would be a mandatory minimum level of numeracy and literacy testing, principals went berserk. They said it wasn’t fair, students might fail. What hope do their students have in the real world with educational leadership like that?

Subsidies and price caps have made tertiary education an offer young people can’t refuse. Interest free loans and price caps on tuition mean degrees for everyone, but the value of them has declined at the same time. You’re damned if you do spend three years and take on $40,000 of debt, but everyone else has so you’re damned if you don’t.

Remuneration has been compressed so that many people’s efforts make less difference to their outcome. Working for Families is effectively a guaranteed minimum income, but if you want to go above that you lose massively to abatement.

When Michael Cullen became Finance Minister, in 1999, there were two income tax rates, 19.5 and 33. Now there are five, from 10.5 to 39, and the top rate is nearly four times the bottom rate. Combined with Working for Families, if you work harder you get whacked harder, but the reverse is also true.

Pay equity, brought in under a National Government, has a similar effect. It compares workforces (say nurses and prison guards) and decides what to pay them. It means whole professions are paid based on what a Judge thinks their work is worth, because of who they are not what they do.

Added to all this is the thicket of employment law meaning it is very difficult to get dismissed for bad behaviour, and employers find it easier (but not easy) to just pay up rather than fight. This can be true even if they’re caught on a technicality like failing to properly tell someone how not to steal on the job.

Outside of education, remuneration, and employment policies, red tape and regulation add costs to nearly everything and prevent productive activity, but we are running up against the word count here.

One thing we can’t ignore, though, is the Treaty industry. The entire reinvention of the Treaty this century, is based on the unspoken assumption that our history is our destiny. You are either a victim or a villain because of things other people did a century or more before your own birth. That is the ultimate form of determinism.

Now, all is not lost. The current Government is putting content back into the curriculum, rolling back the mediocre Te Pukenga that briefly replaced polytechs with one-size-fits all averageness.

Brooke van Velden got rid of ‘Fair Pay’ Agreements and extended 90-day trials, now she’s on to holiday pay, health and safety, contracting, and personal grievances.

The Ministry of Regulation is going sector through sector reducing red tape, and Treaty determinism is being rolled back in multiple policy areas. All well and good. If the trick to getting our national mojo back is to reconnect effort and reward, then the Government is heading in the right direction.

ACT is one party that can point to pushing it there, but given the pervading sense of decline in New Zealand right now, ACT will need to keep the Left from taking us back again, and give the current Government the boldness to go further.

Chris Hipkins’s deck chair speech

Source: ACT Party

Responding to Chris Hipkins’s State of the Nation speech, ACT Leader David Seymour says:

“It was a deck chair speech. All the changes he’s proposing involve politicians and bureaucrats being reorganised, and will have no effect on actual people.

“A new ‘economic team’ of Labour MPs, a new ‘jobs and incomes’ portfolio for Ginny Anderson, talking to ‘experts’ and ‘unions’ – none of this is real change.

“We’ve seen this before. Hipkins spent resources reorganising the health system, and what we got was a new org chart while patients were ignored.

“We won’t reshuffle our way to prosperity. But to give Hipkins credit, giving a speech in Auckland was probably a bold step for someone who struggles to think outside the Wellington bubble.

“By contrast, we’ve got a Government that is making real change to red tape and regulation, focusing public services on patients and students, reducing government waste so inflation and interest rates are lower for the people.

“The amazing thing is Chris Hipkins’s changes could all be made without any real person in New Zealand noticing. It may not be long before some of Hipkins’s caucus decide to reorganise him.”