Faulty economic models entrenched for the benefit of roading mafia cartels, teamsters and fat cats of course
Politics 🗳️ NZ Politics
- Thread starter wizard of Tauranga
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NZWarriors.com
A great way of double dipping because tolls is just another tax! Triple tax if you include the GST
- Thread starter
- #15,523
You wait until Rizzah tries to explain his position on congestion charges if he doesn’t agree with paying to use a road
Paying to use a road already built!
NZWarriors.com
Congestion charges are usually trying to change behaviour - it's in the name. Like prevent cars from coming into the inner city. Only works if there are sufficient alternatives to using the car, like on-time, frequent public transport/rail, suitable bike infrastructure (protection from cars) etcYou wait until Rizzah tries to explain his position on congestion charges if he doesn’t agree with paying to use a road
Paying to use a road already built!
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- Thread starter
- #15,525
Doesn’t a new tolled road change behaviour?
Provide an alternative that isn’t going to be built anytime soon to enable faster, safer travel and get congestion off existing roads. Only works when there is still a free alternative.
Prime example is a second Auckland harbour crossing. Talked about forever and never going to be done due to huge upfront cost. If govt money is truely free why haven’t govt over the last 20 years just done it?
And taken to extremes, sitting in Rarotonga at the moment, why don’t they have a 4 lane highway circling the island, free ultra fast broadband, clean water to every house and a 5 star hospital? Why doesn’t the Rarotonga govt just build it using free govt money?
The new tolled road might change behaviour, but it requires a reliable alternative to using the car to be in place. I don't think that is the aim of the govt, they just want someone else to fund the upfront cost. I'm sure they will bend over backwards too, to make it much more appealing to foreign investment - favourable tax incentives etc.Doesn’t a new tolled road change behaviour?
Provide an alternative that isn’t going to be built anytime soon to enable faster, safer travel and get congestion off existing roads. Only works when there is still a free alternative.
Prime example is a second Auckland harbour crossing. Talked about forever and never going to be done due to huge upfront cost. If govt money is truely free why haven’t govt over the last 20 years just done it?
And taken to extremes, sitting in Rarotonga at the moment, why don’t they have a 4 lane highway circling the island, free ultra fast broadband, clean water to every house and a 5 star hospital? Why doesn’t the Rarotonga govt just build it using free govt money?
The Auckland harbour crossing could be built, but build the case - do the assessment and work out the Benefit Cost Ratio (BCR). If it's above 1, then it's providing enough benefits to outweigh the costs, the higher the number the better. Letting an infrastructure commission work out a long term infrastructure plan for NZ would be smart.
Why haven't previous Govts just done it? Because the myth about the govt budget being like a household permeates within the halls of power, and probably because a lot of MPs don't understand monetary mechanics properly. Even Treasury officials will adhere to orthodox economic theories that prioritize fiscal restraint over investment. Treasury largely controls government spending and provides the advice, so the orthodox views shape policy.
Without making it too complicated - 'Free Govt money' for currency issuing govts is restricted by the countries productive capacity (skills, resources etc). Spending still requires careful consideration and planning. It's essential to use the Govt balance sheet to expand resource/productive capacity. Doing things that will help productivity and economic growth.
Funding education properly (incl higher education, specialised skills), food in schools, Infrastructure for housing, public transport, rail expansion, target investment that will help the current account deficit - electrification - lower reliance on imported oil etc etc. Target investment that lowers the cost of living, cheaper housing, cheaper food etc, which gives people more discretionary spending power which supports local businesses and boosts the economy.
This is one of the Govts superpower, if harnessed correctly - funding productive capacity expansion. It can invest in sectors and long term projects that are essential for growth.
Rarotonga isn't a currency issuing govt, they use the NZ dollar which makes them a currency user. The Cook Islands have similar constraints to our city councils, the EU countries also have this issue using the Euro. Because another central body (RBNZ or the European Central Bank) controls monetary policy, not their own govt, they can't create money and are limited by their ability to tax, borrow or attract investment.
NZWarriors.com
sounds great in theory, which western countries are putting that into practise?
Most big economies are 'deficit spending', so they are halfway there - their targeted investment areas are usually off. Understanding the actual mechanics are not spoken about in the mainstream - it's still deficit/debt bad, surplus good.
Japan's govt probably runs the closest proximity to the general idea - significant deficit spending for decades, using monetary finance to fund infrastructure, education and innovation - whilst also retaining economic stability.
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- Thread starter
- #15,529
I used the Cook island example because most items would need to be imported, so you need foreign capital and resources.
Just printing money and spending it would cause foreign currency issues (if they had their own currency). You still need to export enough (be productive) to pay for the majority of your imports wouldn’t you or your currency will get hammered, irrespective of how you control your currency?
Would this be a limiting factor as well as your internal productive capacity?
NZWarriors.com
ASB have dropped their 6-month rate mortgage rate (from 5.89% to 5.79) and their longer terms (4 year from 5.79% to 5.59% and its 5 year rate will fall from 5.79% to 5.69%).
From a purely selfish point of view, I hope BNZ drop theirs down before the end of the month when we have to re-fix.
From a purely selfish point of view, I hope BNZ drop theirs down before the end of the month when we have to re-fix.
- Thread starter
- #15,531
Put all that extra money from a lower rate:
- into paying down the mortgage faster (best for individual)
- spending it in the economy and help dig us out of a hole (best for the country)
- or invest it into productive assets (the Rizzah method)?
We'll keep the repayment rates the same to pay off more of the principal. We're looking at getting it as close to where we don't have to contribute to the rental property (and have to re-finance back to 30 years) so the tenant meets all the costs (including the mortgage) within the next five years when we're looking at retiring.... that way, we won't have to either sell the property or top up the expenses in retirement. We'll probably sell it within the next ten to 15 years to free the capital to use for retirement funds and, hopefully, the markets at the top of a cycle when we have too.
We just reduced one of the managed funds in order to payback a significant amount of the mortgage within the last few weeks. Cost a few dollars to "break" the mortgage but the savings in the interest repayments was worth doing it then instead of waiting a few more weeks.
NZWarriors.com
Yes, the Cooks need the tourism dollars to pay for the imports.
Their limiting factor is they have limited ability to expand on productive capacity, due to size and location. Their govt also doesn't control monetary policy - so they can't print money. They use our NZD - so are a currency user, not a currency issuer. You could look at them similar to our city councils (currency user), reliant on revenue streams (tax), aid (Govt funding) and borrowing to function.
- Thread starter
- #15,534
Smart choices, imagine if you kept the rental, had it paid off and had that extra weekly rent as income in retirement!
Still I understand wanting out so you don’t have the maintenance and tenant issues while you travel the world
- Thread starter
- #15,535
Come on down China!
NZWarriors.com
Some interesting developments in the commercial building scene in Auckland recently. Firstly, Fletcher Building are taking the Waterproofing company which is said to have started the fire at the NZ International Convention Centre to court.
And then there doesn't seem to be anymore progress on resolving the Seascape apartment building. Which is not helped by the fact that most of the buyers who had brought apartments "off the plans" are pulling out of the deals and receiving back deposits.
The tower has stood idle since last August and winter is now looming for the block which remains open to the weather above the lower levels, which are partly clad.
Part of the holdup is registering documents in China, according to parties involved with the tower.
Last year, builder China Construction New Zealand won an arbitration case against developer Shundi Customs which resulted in it suspending the contract.
The Building Disputes Tribunal issued an August 2 determination in favour of the builder in the dispute between the two over the stalled Seascape skyscraper apartment tower.
That showed the builder had been granted a charging order over the downtown city construction site owned by the development business.
Adjudicator John Green’s 119-page decision granted the order as well as awarding $33 million to be paid by the developer. The money went unpaid so in late August, the builder wrote to all the subcontractors, suspending work.
But in response to that last November, Shundi Customs took the builder to the High Court at Auckland, seeking for China Construction to complete paperwork in China.
That paperwork being sorted out has been one of the reasons for the months of delay.
Shundi Customs is demanding the builder secures the necessary documents so that if it succeeds legally against China Construction, it can collect money from them.
China Construction had not registered a parent company guarantee with China’s State Administration of Foreign Exchange, the case revealed.
The builder advised that it submitted the guarantee to the Chinese authority for registration on October 31. However, it has not yet been accepted for registration, the High Court decision noted. The guarantee needs to be countersigned by Shundi before it can be registered.
Justice Greg Blanchard’s November 11 decision noted that Shundi considered there is a significant non-repayment risk. The builders’ financial statements for the year ended March 31, 2022 show net assets of only $4.3m. They also record that its going concern status depends on continued financial support from its parent.
All these months later, one of the parties involved told the Herald this week he was hopeful that matters could progress.
He said an announcement may be made before the end of March.
That indicates the paperwork has been registered in China and the parties are now waiting for the case to return to court for Justice Blanchard to cite those documents.
He stalled matters to give the builder the chance to get its paperwork: “I make an order prohibiting CCNZ from taking any further action consequent on the determination or bringing or continuing any proceedings in connection with the determination pending registration of the parent company guarantee with the State Administration of Foreign Exchange”.
In a separate event this year, the tower was scaled by a daredevil who dangled at night from the end of a crane boom with just one hand, raising alarm about how he got onto the site.
Seascape is on a city block fronting Customs Street East between Gore St and Fort St and the project is to be New Zealand’s tallest residential building.
The main tower is to have 221 apartments of which deposits have been taken on around half.
The project also includes the development of two associated buildings in the same city block. Once completed, the overall project will include dining, retail and a hotel.
China Construction has so far been paid more than $300m for the project, the court decision noted.
Some in the sector say it could take that much again to finish but when work will resume remains unknown.
www.nzherald.co.nz
And then there doesn't seem to be anymore progress on resolving the Seascape apartment building. Which is not helped by the fact that most of the buyers who had brought apartments "off the plans" are pulling out of the deals and receiving back deposits.
Why 56-level $300m+ Seascape is abandoned for seven months: What could happen next?
Registration of documents in China is one of the reasons for no work resuming on the 56-level $300 million-plus Auckland ghost tower Seascape, abandoned for seven months.The tower has stood idle since last August and winter is now looming for the block which remains open to the weather above the lower levels, which are partly clad.
Part of the holdup is registering documents in China, according to parties involved with the tower.
Last year, builder China Construction New Zealand won an arbitration case against developer Shundi Customs which resulted in it suspending the contract.
The Building Disputes Tribunal issued an August 2 determination in favour of the builder in the dispute between the two over the stalled Seascape skyscraper apartment tower.
That showed the builder had been granted a charging order over the downtown city construction site owned by the development business.
Adjudicator John Green’s 119-page decision granted the order as well as awarding $33 million to be paid by the developer. The money went unpaid so in late August, the builder wrote to all the subcontractors, suspending work.
But in response to that last November, Shundi Customs took the builder to the High Court at Auckland, seeking for China Construction to complete paperwork in China.
That paperwork being sorted out has been one of the reasons for the months of delay.
Shundi Customs is demanding the builder secures the necessary documents so that if it succeeds legally against China Construction, it can collect money from them.
China Construction had not registered a parent company guarantee with China’s State Administration of Foreign Exchange, the case revealed.
The builder advised that it submitted the guarantee to the Chinese authority for registration on October 31. However, it has not yet been accepted for registration, the High Court decision noted. The guarantee needs to be countersigned by Shundi before it can be registered.
Justice Greg Blanchard’s November 11 decision noted that Shundi considered there is a significant non-repayment risk. The builders’ financial statements for the year ended March 31, 2022 show net assets of only $4.3m. They also record that its going concern status depends on continued financial support from its parent.
All these months later, one of the parties involved told the Herald this week he was hopeful that matters could progress.
He said an announcement may be made before the end of March.
That indicates the paperwork has been registered in China and the parties are now waiting for the case to return to court for Justice Blanchard to cite those documents.
He stalled matters to give the builder the chance to get its paperwork: “I make an order prohibiting CCNZ from taking any further action consequent on the determination or bringing or continuing any proceedings in connection with the determination pending registration of the parent company guarantee with the State Administration of Foreign Exchange”.
In a separate event this year, the tower was scaled by a daredevil who dangled at night from the end of a crane boom with just one hand, raising alarm about how he got onto the site.
Seascape is on a city block fronting Customs Street East between Gore St and Fort St and the project is to be New Zealand’s tallest residential building.
The main tower is to have 221 apartments of which deposits have been taken on around half.
The project also includes the development of two associated buildings in the same city block. Once completed, the overall project will include dining, retail and a hotel.
China Construction has so far been paid more than $300m for the project, the court decision noted.
Some in the sector say it could take that much again to finish but when work will resume remains unknown.
Why 56-level $300m+ Seascape tower is abandoned for seven months
Court decision in November prohibited the builder from acting till the paperwork was done.
What's even more amazing about the Seascape project.... even though there has been no progress on the building for over seven months, there's still ten listings on TradeMe for apartments for sale there.
Auckland City Homes & Real Estate For Sale | Trade Me Property
Trade Me has 10 Auckland City Homes & Real Estate For Sale. View photos, use our mortgage calculator and see local schools to help you find your perfect place.
www.trademe.co.nz
Auckland City Homes & Real Estate For Sale | Trade Me Property
Trade Me has 10 Auckland City Homes & Real Estate For Sale. View photos, use our mortgage calculator and see local schools to help you find your perfect place.
www.trademe.co.nz
NZWarriors.com
Utterly poor economic management
View: https://bsky.app/profile/bernardchickey.bsky.social/post/3lkrg5arbvk2m
View: https://bsky.app/profile/bernardchickey.bsky.social/post/3lkrg5arbvk2m
Get the feeling Simeon Brown very much enjoys his role. Watched him a couple of weeks ago on q and a and he’s got a very unlikeable personalityAct and the so called libertarians - it's only free speech for them and their mates. This is their true colours.
Simeon Brown is a nasty piece of work
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