ECONOMICS OF THE QUAKE

This is something we have heard quite a lot about and we are delighted to see that superb economist Brent Wheeler has done a really good analysis of the economic pluses and minuses of the Canterbury Quake. Its a really interesting blog and Brent has done a great job of telling something relatively complicated in a way that even blondes and brunettes can understand.

HUBBARDS CUPBOARD - PART DEUX

Well we hoped this wouldnt be the case but the more we read the less we like.

We reckoned that Hubbards cupboard might be bareand there might be couple of nice boxes of chockies in there but the rest of the shelves have cheap crap well past their use by date.

We are well aware of the impact that the collapse of this empire could have but we do not want to see the government bail it out.

and now NBR is reporting that Bill English is staying in NZ to keep abreast of Hubbard developments.. Well done Bill.

SPIT OR SWALLOW.

Nationals big economic moment????

Spit.

Well actually its not tooo bad.But its not tasty enough to swallow whole.

Like the GST. Like the get tuff on serial beneficiaries. Like the mining stuff. But should have had land tax.
We agree with Kiwiblog... on just about every point...

But we expected big bold moves...

and we are underwhelmed.

We hope that things harden up in time for the budget....

FRAN O'SULLIVAN

We have to confess, Fran is a mate. We like her solid, no nonsense approach and the way her moral compass is set. If we had stayed in the media we would have been more than happy to be half the journalist she is.

Now these days we listen to Sean Plunket and Geoff Robinson first thing on RNZ and that's about it. We are too busy to listen during the day.
However we have been alerted to this -click here . Fran O'Sullivan gave a great commentary, lucid, a touch of humour and topical with some insight for the plebs.

Dam good radio it is - So why is it that RNZ still persists with the dry as toast Rod Orum who's very tone is the best sleep pill anyone could ask for? Rod Orum's style is British boring and he has none of the contacts or insights wit or wisdom of O'Sullivan. Everything his says shrieks lefty bias.

Fran, on the other hand, has no problem dishing out a cuff around the ear to business and political leaders across the spectrum, if she thinks they warrant it. She isn't feared but she is respected.

And thats what RNZ commentary needs - a lack of bias and and some steely resolve.

So we reckon its time for a change of gear and that O'Sullivan should be awarded a regular spot on the state broadcaster. Makes good sense and very good radio.

ACC - PAYING THE PIPER

ACC entitlements are long overdue for a good prune. We had a bit of a donnybrook with Ma last night when she exclaimed that ACC was paying out entitlements to the dependents of those who had topped themselves. Not possible we scoffed.

However its true. ACC has become a defacto Social Welfare Department and we are paying dearly for it. Labours mis management has increased the liability to a point where it is no longer sustainable.

Its really a big maxed out credit card.

So we hope that the Nats do away with all the fluffy feel good add ons that Labour clipped to the scheme.

And if New Zealanders are angry that they will have to face bigger levies then the best way they can show their anger is not voting for Labour ever again. They are the ones who put the frilly stuff on the ACC credit card so that it ended up being maxed out.

So - no more stress payouts, no more suicide payouts.
Minor injuries should no longer be covered and the first Doctors visit should be paid by the patient.

And there should be a serious tightening up on the snake oil dispensing the lords of feel good , physios.

So we expect to see some seriously ballsy cuts to services. It has to be done and good on chair John Judge for having the balls to stand up and say enough is enough.

If they can arrest the blow out now then the scheme will be sustainable in the long run to ensure that those who need assistance get it.

NZ guzumped by Aussie on World stage

Our boy is off to the US of A for a some serious discussions on matters of great importance to our nation.

While it is clear that Kevin Rudd is seeing his trip as a chance to promote Aussie as the must stop on the investment train, Key's trip has a wider focus. In fact it seems to have many foci. We have him on Letterman, at the behest of the Tourism Board, which is a very risky move,due to the piss taking nature of the programme. But the exposure is gold.

Then the focus for Key is very much on diplomatic relations with a raft of smaller countries Turkey, the Netherlands, Israel, Chile, Norway and Rwanda. And he is also going to have a hui with Helen about matters of Aid.

Now this is all good stuff but it contrasts with Australia and Rudd who is clearly on a focussed mission to get big dollars down under. He wants Australia to be a lightening rod for international investors.

We as a nation have always spurned other peoples money as somehow being something that is not good. Aussie on the other hand embraces it.

While Key’s programme in USA is interesting its all about being best friends with a whole heap of nations looking for best friends. Rudd on the other hand, is opening the door to investors to help his country build on its already impressive financial position.

We don’t get many opportunities in this environment and seriously folks – Keys agenda looks a bit lightweight and doesn’t look like we are serious about doing the stuff that will help grow the economy.

We really only need to look across the Tasman to see how it should be done.

CLOTHING COMPANY FEELL ILL CHILL OF RECESSION

This is a bugger -NBR reports that Line 7 has gone into receivership. They are famous for good solid well made outdoor gear .

We have put some of that gear to the test at sea and on the muttonbird islands and its good rugged stuff lasts for bloody years.

They have also branched into fashion wear and cater for the well endowed sheilas like mois. I suggest that you take a look at their website they have some seriously reduced items on sale with 60% off - yip 60% off. And no we are not getting paid to promote it!

I have about 10 bits and pieces from their all weather outdoor gear and some fashion stuff.


Here's hoping the brand, that is linked to so many big sporting events, can be saved.

FRAN GIVES GOVT A NUDGE ON BIZ SUPPORT

We admire the work and musing of the primo financial and political commentator Fran O'Sullivan. Today she does a " tut tut" get on with it column to the govt

We think its worthy of a leisurely read.

KEYS ECONOMIC APPROACH BEING WATCHED IN OZ

John Key and Rudd appear to get on pretty well - there is an air of the sophisticated geek about both of them. However their differences in style and approach to the global financial downturn are significant.

The Australian takes a look a the differences here

We particularly like this bit - Key makes it clear that the government cant provide all the solutions.

New Zealand benefited from "huge reforms, leaving it as a small, open, flexible economy, driven by Roger Douglas" -- the Labour finance minister in the late 1980s, recently returned to parliament as an ACT Party MP -- "but I am not claiming to be another Roger Douglas".

He said: "We just don't need that level of reforms, because the economy is quite open. But we can free up the process" of reform, which had stagnated. This will include a greater involvement by the private sector, as in a jobs summit Key held recently.

He is reintroducing greater flexibility to the labour markets, he said -- for instance, through a proposal for a 90-day probationary period for new employees.

"And we're not afraid to use the private sector in the provision of health and education services. The success of the nation doesn't rise or fall on the efforts of government alone. The strength of our country is that of our 4.3million people."

Yip we agree - All for one and one for all.

HIT THE RUTH

Yip the Labour ranks are so thin that all the politiking is bringing one name to the fore and its not one you would expect, but Ruth Dyson is the Labour MP who has pissed off the least people so is a serious candidate to lead in the next 18 months.
Remember you read it first on Roarprawn.

CHINA TO EYE UP NZ?

Well they are certainly casting a glance across the Tasman. There are fears that the Chinese are going to increasing buy up mining stocks. According to the Australian some commentators are worried that not enough thinking is going into the ramifications of a big Chinese buy up.

We will also be in their sights. China is well aware of NZ's stable politics, easy business environment and high quality image so we should expect them to make some strategic purchases here as well.

Forestry, fishing, dairying, and infrastructure are likely to attract.

ITS TOUGH BEING POLLYANNA

The NZIER doesn't even try to put a gloss on their latest quarterly report. Pretty dire but a clear recommendation for the OCR to be dropped again to bolster consumer spending.

Anyway read the report here
nzier report

Publish at Scribd or explore others: Research economy economic predictions

JOB LOSSES IN US ANALYSED

The Wall Street Journal has a bloody good article analysing the depth and impact of job losses and comparing them to previous recessions.

For those who are keeping an eye on the global situation its worth a look

STRUTH ! MATE RUTH TURNS GREEN BLACK

Well looky here - who's is the chairman of a verdant company that is in the black? well done Ruth.

The Jade group of companies has announced its half year operating revenue is up 31 per cent.

The privately owned New Zealand-based information technology company, with offices in New Zealand, Australia, the United States, Canada and the United Kingdom, today said its total revenue increased 21 per cent to $50.8 million, up from $42m in 2007, for the year ended December 31, 2008.

Earnings before interest, tax, depreciation & amortisation increased from $10.3m to $11.1m for the year, up 7.8 per cent.

Cash flow from operations after expenses grew from $7.8m to $10.8m in 2008, up 37 per cent.

The company was well placed to weather a global financial storm with over $50m in revenue and a strong cash position, said chairwoman Ruth Richardson.

Its great to see a NZ company shaking the tree and all with software that helps build economies.

We hope that John Key talks to Ruth.

SUMMIT OF SUMMITS

While all eyes here have been on the recent economic summit in NZ, another arguably more important summit has been held on the other side of the world. The heads of government from the EU's 27 member countries met but instead of the focus being on the points of agreement it was a summit that gave clarity to the growing divide between rich and poor and probably east and west. The UK guardian calls it the European Faultline.

This is what the Guardian says the summit exposed.

• Protectionism versus free-traders: French-led campaign to save French and European industries and jobs opposed by Britain, Germany, central Europe, and the European commission.
• East versus west: fears of financial collapse in parts of central Europe could trigger bigger banks meltdown in Austria, Italy or Sweden.
• Euro currency countries versus the rest: non-single currency countries worried that crisis rescue policies are being skewed towards helping the eurozone.

At a time when the politicians of the EU nations should be working together, they are instead protecting their own countries which some commentators fear could lead to the breakdown of the union.

It is a good thing that John Key is talking to Kevin Rudd. We need to draw strength from our nearest nation and while the EU may break apart our future may well rest with solidarity with our closest neighbour.

SUPER SHEEP

Its Lamb Chops birthday today... Heres to ya sis.

Cartoon can be found here This guy is a great cartoonist.

GOOD ECONOMICS OR NOT?

Here is an interesting idea from Aussie. They are spending $13.8 million to deploy videoconferencing at 20 government sites. The motivation has come from the Aussie Govt's staggering $280mil air travel bill ( domestic only) Considering that it will be at discount rates its a big bill.

We think that the best gains out of this idea are in productivity. You waste about an hour give or take to get to and from the airport ( much more in Auckland ) and the same onthe way home and its about an hour to fly to most destinations - Conservatively thats three hours of lost time. In the case of Aucklanders way more.

So is this an idea that needs to be considered alonside the expansion of broadband ?

We have been involved in video conferencing and for many meetings its great. There are still times when you need face to face meetings but it does have a place.

So all you geeks and techies and economists - how does it rate as an idea and what are the up and down sides?

THE federal Government will deploy Cisco videoconferencing systems across 20 government sites in an effort to drastically reduce its $280 million domestic airfare bill.

The contract, which will run for four years at a cost of $13.8 million, will be managed by Telstra and will run on its Next IP network.

Mr Tanner said the deployment will help the Government reduce the cost of travel, improve productivity and lower the impact of carbon emissions.

It is unclear how much the Government will save with the Cisco TelePresence system but Finance Minister Lindsay Tanner has in the past indicated that he wants to slash at least $15 million from the bill.

“From a finance minister point of view the most important issue is saving money. We currently spend about $280 million a year on domestic airfares across government,” Mr Tanner said.

“The savings we make on airfares alone will pay for this system.”

Mr Tanner is also hoping the roll-out will help retain staff.

“I’m conscience that a lot of people tend to move away from very senior positions both in the public and private sector because of the burden of travel. This will enable us to get better value from people and achieve a better work life balance.”

Mr Tanner said there were robust security measures to make sure sensitive government meetings would not be breached.

“We have a secure phone system that we currently use and TelePresence is at least as secure as that,” he said.

WELL DONE TIM

It looks like we are moving to a free trade deal with India. Thats excellent news - many New Zealanders are un aware of the size and scope of this huge market. Federated Farmers is also ecstatic about the news.

AAAAND CUT! ITS A WRAP.

Staff at TVNZ are reeling this morning after being informed that the budget axe is about to fall and its expected $25million will be cut . Staff have been told that jobs will go.

NBR now has the full story here

FOUR DAY WORKING WEEK STORY ON TVONE NEWS

Well well - We blogged on the four day week being the new black in employment strategy circles about a week ago. A breathless Guyon Espiner is running an exclusive on the issue on TVone tonight.
We reckon the first place to start is the public service. Older secure workers are talking up the benefits.

We will be interested to see how the government and industry can make it work