The latest Government announcements reflect an urge to win votes in Dunedin (by pushing along work on a new hospital), from environmentalists (by requiring the financial sector to report on climate risks and investing $19 million in a forest restoration project) and from Maori (by giving $8 million to Te Wānanga o Raukawa “in partial recognition of its Waitangi Tribunal claim”.
The PM presumably was pitching for the Maori vote, too, when she prefaced the announcement the public was bursting to hear – the latest Cabinet decision on Covid-19 alert levels – with a Maori Language Week demonstration of her prowess in te reo and by pressing people to try to use the language.
She was in no hurry to make the big announcement. Having apprised us she is learning te reo and told us what we already knew (that Cabinet had met virtually to review progress on stamping out Covid-19 and decide on the next steps for alert levels) Jacinda Ardern proceeded to give an update on the Auckland Cluster.
Many paragraphs on, we learned Cabinet has decided on “a short extension” to the current restrictions of Alert Level 2.5 for Auckland, and Level 2 for the rest of the country.
She also announced a change of physical distancing restrictions on planes and public transport.
Finance Minister Grant Robertson chipped in with a press statement about a bounce-back in economic activity across the Auckland region and the country bouncing back to levels experienced under Alert Level 1 following Auckland’s move out of Alert Level 3. This was sourced to an analysis in the Treasury’s latest Weekly Economic Update.
Here at Point of Order we keenly await the latest GDP statistics, to be announced on Thursday and the Pre-election Fiscal and Economic Update.
We are putting our money on the news being grim, which will justify the huge fiscal policy effort to pump money into the economy (although readers are entitled to question the stimulatory benefits of many spending decisions).
The latest announcements show how the balm of borrowed billions is being applied:
- A $19 million investment is being made over four years in the Kaimai-Mamaku Ranges Forest Restoration Project, comprising six areas or ecological hubs covering more than 240,000 hectares from Te Aroha to Tokoroa, with specific conservation goals for each area. The funding will enable pest and predator control work to help protect rare species including the Te Aroha stag beetle, kōkako and kiwi along with long tailed bats and precious kauri trees. About 60 jobs are expected to be created.
- A payment of $8 million will be made to Te Wānanga o Raukawa in partial recognition of its Waitangi Tribunal claim. The money will be provided over the next three years “as additional support for Te Wānanga o Raukawa to deliver educational outcomes for Māori while work continued to develop a more sustainable funding solution for the wānanga”. The Crown has agreed to make a further one-off contribution of $300,000 toward the costs Te Wānanga o Raukawa has incurred in working with the Crown to resolve its claim.
- The Government has agreed on a preferred design for the new Dunedin Hospital and has provided funding for the next stages of work. Cabinet agreed the detailed business case in principle and $127 million has been provided to progress design, demolition, piling, project management and early contractor engagement. The total budget for the project will now exceed $1.4 billion.
- The Manuherekia catchment in Central Otago is the third exemplar catchment to be targeted as part of the Government’s plan to clean up waterways by supporting community-led programmes. The At-Risk Catchment programme provides $12 million over four years, including to the three exemplar catchments that have been announced (the others are Kaipara Moana and Te Hoiere/Pelorus).
- More mental health and addiction services were announced for young New Zealanders in Rotorua and Taupō, Wairarapa, South Canterbury, Dunedin and Southland from next month. The four contracts to provide the services are worth $3.2 million over two years and mark the beginning of a $16m rollout of youth specific services. The funding is part of Budget 2019’s $455 million for expanding access and choice of primary mental health and addiction services.
But while the Government has been splashing out (with increasing sums of borrowed money) to stimulate the economy, it is also imposing new environmental obligations on businesses.
Climate change Minister James Shaw announced New Zealand will be the first country in the world to require the financial sector to report on climate risks,
“The changes I am announcing today will bring climate risks and resilience into the heart of financial and business decision making. It will ensure the disclosure of climate risk is clear, comprehensive and mainstream,” James Shaw said.
Businesses covered by the requirements will have to make annual disclosures, covering governance arrangements, risk management and strategies for mitigating any climate change impacts. If businesses are unable to disclose, they must explain why.
Around 200 organisations will be required to disclose their exposure to climate risk through climate reporting requirements that will apply to:
- All registered banks, credit unions, and building societies with total assets of more than $1 billion
- All managers of registered investment schemes with greater than $1 billion in total assets under management
- All licensed insurers with greater than $1 billion in total assets under management or annual premium income greater than $250 million
- All equity and debt issuers listed on the NZX
- Crown financial institutions with greater than $1 billion in total assets under management, such as ACC and the NZ Super Fund
Latest from the Beehive
15 SEPTEMBER 2020
Supporting a thriving wānanga sector to benefit Māori learners
As part of the Government’s focus on building closer partnerships with Māori and enhancing the quality of, and access to, Māori medium education, a payment of $8 million will be made to Te Wānanga o Raukawa in partial recognition of its Waitangi Tribunal claim (WAI 2698), Associate Education Minister Kelvin Davis announced today.
Jobs for Nature boosts efforts to restore Kaimai-Mamaku
The Minister of Conservation Eugenie Sage has announced a $19 million investment over four years in an important forest restoration project involving a partnership between the Department of Conservation, iwi/hapū, the Bay of Plenty and Waikato Regional Councils, community conservation groups and organisations such as Forest and Bird across the Bay of Plenty and Waikato.
New Zealand first in the world to require climate risk reporting
New Zealand will be the first country in the world to require the financial sector to report on climate risks, the Minister for Climate Change James Shaw announced today.
14 SEPTEMBER 2020
Economic data highlights impact of Auckland moving out of Level 3
Economic activity across the Auckland region and the country bounced back to levels experienced under Alert Level 1 following Auckland’s move out of Alert Level 3, analysis in the Treasury’s latest Weekly Economic Update shows.
PM statement on Cabinet COVID-19 Alert Level review
Cabinet met virtually today to review our progress on stamping out Covid-19 and to decide on the next steps for our alert levels in Auckland and the rest of New Zealand.
More mental wellbeing services for young people in regions
More mental health and addiction services are available for young New Zealanders in Rotorua and Taupō, Wairarapa, South Canterbury, Dunedin and Southland from next month, Health Minister Chris Hipkins and Associate Health Minister Julie Anne Genter say.
Government joins forces with Central Otago communities to clean up waterways
The Manuherekia catchment in Central Otago is the third exemplar catchment to be targeted as part of the Government’s plan to clean up waterways by supporting community-led programmes.
Government confirms new Dunedin Hospital design
The Government has agreed on a preferred design for the new Dunedin Hospital featuring two separate buildings, and has provided funding for the next stages of work.
Point of Order 