Kerre Woodham Mornings Podcast

The Reserve Bank has softened its language in the July Monetary Policy Review, leaving the cash rate unchanged at 5.5%  It's now saying inflation will make the 1-3% target this year.  Kiwibank economists say it's a move that has increased market confidence in a rate cut later this year.  Chief Economist Jarrod Kerr told Kerre Woodham that we’ve been in a recession for a year and a half, and it’ll take some rate cuts to jolt us out of it.  He said that they are optimistic and have been telling clients that next year will be better than this year, but it will take cuts.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

I am absolutely gobsmacked at the sheer gall of Labour even considering, suggesting, putting it out there, hey, run it up the flagpole, some form of capital gains tax might be back on the agenda. Apparently Barbara Edmonds, who is the finance spokesperson for Labour, is just putting it out there, seeing what people think. How very dare they for two glaringly obvious reasons. A) because they had every opportunity to introduce a capital gains tax or to revamp the taxation system not just once, but twice during their six long years in office. They set up the Tax Working Group to come up with recommendations to make New Zealand's tax system a fairer one, and when the working group Chair, Sir Michael Cullen, presented the final report, the Tax Working Group said, look, we support a broad-based tax on capital gains and suggested that handing back much of the $8.3 billion it might raise over five years through income tax cuts for almost all workers. The proposals, had they been adopted, would take billions from the wealthy and give most of that money back quite evenly to millions of taxpayers, which all sounds kind and fair and true to Labour’s socialist roots and not completely unreasonable. As Sir Michael said, it was wrong that wage earners were taxed on their full income while you can earn income from gains on assets and not be taxed at all. So, all very Labour and all very true to the cause. But what did Jacinda Ardern do? She ignored the recommendations and said a Capital Gains Tax wouldn't happen while she was leader.  There was another attempt when Labour had an absolute majority in its final term to introduce a Capital Gains Tax. Both David Parker, the Revenue Minister, and Finance Minister Grant Robertson were for it. They’d done a lot of work on it, they'd picked up the work that the Tax Working Group had done. Chris Hipkins knew the electorate wouldn't stand for it, so put that proposal, along with many others on the bonfire, in a desperate and futile attempt to win back voters. And not only that, demoted David Parker. Well, David Parker to be fair excused himself or recused himself from being Minister because he didn't support ditching their Capital Gains Tax. It was an opportunity in a political lifetime to make effective change. His boss didn't have the cajones for it, so David Parker stepped back and was demoted and has since sort of languishing down in the ranks now.   So they had every opportunity to introduce a Capital Gains Tax and now they're in opposition they're talking about, hey, maybe we should look at some form of inheritance tax based on the Irish Capital Acquisitions Tax. It's galling.   And B), the other reason they shouldn’t have the temerity to even suggest it, is because how could they possibly believe that New Zealanders would trust them with another brass cent? Even now, even the most deluded of fervent Labour supporters must look at the money that has been wasted. The money that is being wasted with nothing to show for it, and it makes me want to weep. If they were sensible stewards of our tax dollars, if they or any political party could show that they were sensible managers of our money, fill your boots. Take more of my tax dollars, take the money that I haven't earned, that's just come along with the rise in property values, bring in a 33% tax as Ireland is doing on unearned windfalls, ensure that everyone, not just the children of property owners, benefits from the accumulated wealth. Sure, do it, but for Labour to suggest taking more money from New Zealanders with their track record of waste etched into so many, many minds. It's going to take a very long time to forget that.   See omnystudio.com/listener for privacy information.

When Labour holds its next party conference at the end of the year, tax policy is likely to be near the top of its agenda.  Finance spokesperson Barbara Edmonds sent a strong signal in March that a comprehensive capital gains tax may be back on its table, questioning the fairness of the current tax system.  The Labour Party's understood to be considering whether to advocate for an inheritance tax, taking inspiration from an Irish model.  In Ireland, a 33% tax is applied to inheritance's worth more than NZ$558 thousand.  Dentons Kensington Swan Partner and tax expert Bruce Bernacchi told Kerre Woodham that he’s not surprised Labour is raising the idea of a comprehensive capital gains tax again.  He said that they campaigned on it in 2011 and 2014 and had the Tax Working Group in 2019 recommend it over a wealth or inheritance tax.  Bernacchi said that this is their opportunity to forge ahead with a coherent policy, introducing a capital gains tax that would raise money, people will understand, and it will be effective, instead of an extremely complex inheritance tax.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

The boss said to me this morning when he arrived, “Good of you to show you support for the Greens.” It's like what? He gestured to my dress. I am in a dress that is utterly, unashamedly green. All green. My Christmas dress can also come out in winter. It is not the reason I chose the dress, but I can't help feeling the teensiest bit of sympathy for the Greens. They have had a shocking run. Elizabeth Kerekere, who resigned after an investigation into her poor handling of staff and colleagues and for sending a mean text about Chloe to the wrong chat group. Oops. Julie Anne Genter and her startling and unprecedented outburst in the House, subsequent allegations of anger management issues, and a Mea culpa from her saying she’s working on bettering herself and stepping away from volatile situations.   We had Golriz Gharaman and her sticky fingers, the sudden death of Efeso Collins, the resignation of James Shaw, who is the best greenie in parliament on green issues, possibly the only person in Parliament who, well the best person in Parliament who had the best grasp of climate change, who was there in the Green Party for what you'd imagine are the right reasons. You had co-leader Marama Davidson's cancer diagnosis, and now, finally, finally, the conclusion of the investigation to Darleen Tana and exploitation of migrant worker in her business and her husband's business. Finally that's over.   Clearly, the report is damning because the Greens have been calling for Tana's head. Chloe Swarbrick spoke very well yesterday at the stand up in the Great Hall. Clearly, she is absolutely furious and feels personally betrayed. And clearly, the findings are serious because not only have the Greens told Darlene Tana in no uncertain terms to resign, they've told her to repay the salary she received while she was under investigation. What happens next? Well, acting Prime Minister Winston Peters says it's a disgrace and Darleen Tana needs to go.   WP: Well, our electoral law is fine except it's not being enforced. This is a disgrace. I mean, $42,000 of taxpayers’ money has been used by the Greens to find out what was going on when they should be spending their own money. You've got someone who has been told that she should leave Parliament. She probably won't. She’ll probably go and join the Māori Party, and then you got these purists saying we will not enforce the law that's already there now to ensure that the proportionality of Parliament remains. And it demonstrates that, you know, some parties are getting away with stuff because they've got members there claiming qualifications they never had. They were never challenged with the mainstream media. Here comes another example where this level of tolerance for an, a party that's demonstrating every day how bad it would be if they ever got to be in control, in government and nevertheless, in these circumstances, she's still there, and she should not be there and in the sense that everybody's got to be accountable and she's not. AD: Well, they're claiming that they've done everything they can, they ask her to resign from the party, she resigns. Then it's up to her to go to the speaker and resign herself. But as I said earlier, turkeys don't vote for Christmas... WP: No, no. I'm sorry, they're not doing everything they can. They could expel her and then they could make it very clear to the speaker that she's no longer a member of their party. And that would mean that she would have to stand down as an MP. All the law is right in front of them, written for such circumstances. But the question is, you chose this person that could not be trusted, and now you're saying that it's all the rest of us, and our problem about getting rid of this person, whether it's a male or female MP doesn't matter. It's simply not satisfactory. Well, that's an understatement. That was Acting Prime Minister Winston Peters talking to Andrew Dickens this morning.   The report will be released so we can see for ourselves, according to the Greens, once all the named parties have been consulted. But what to do about invoking the waka-jumping clause if she decides she's not going to leave Parliament? If she decides she's going to ignore the pleas from Chloe Swarbrick and her party. The Greens hate the Electoral Integrity Act, which is what the waka-jumping law is formally known as, despite being forced to swallow that dead rat back in 2018, the coalition agreement. There seems virtually no chance that they will use the party axing option to force Tana from Parliament, unless they have a massive change of heart.   They held back from doing so when Elizabeth Kerekere quit, but there's a big difference because this is very, very early on in the electoral cycle, we're only six months in. Elizabeth Kerekere only warmed her seat for five months. So, the taxpayer only had to pay for a useless MP for five months, which is still five months too many. Darleen Tana would be there impotent and hopeless for two years. Two years! And more, if she chooses to stage a sit-in in defiance of her former party this is the perfect time for the Green Party to dismount from their increasingly lame high horses. Idealism and zealotry are all very well and good, but you might in principle disagree with the law, but you must invoke it if you can if you don't want to rip off the taxpayer.   Making tough decisions is a part of politics and it's time the Green Party grew up and showed that pragmatism trumps idealism when it comes to protecting the voters. See omnystudio.com/listener for privacy information.

Deputy Prime Minister Winston Peters doesn't feel the Greens are doing all they can in regard to Darleen Tana.  The Green Party's asked Tana to resign from parliament after receiving the investigation into alleged migrant exploitation at her husband's business.  Tana doesn't accept the findings, claiming it substantially misrepresents her level of involvement in the business.  She's resigned from the party, but not yet Parliament.  Peters says they could expel Tana, utilising the waka-jumping legislation and forcing her to step down as MP.  Senior Political Correspondent Barry Soper told Kerre Woodham that the Greens should "eat humble pie" and get rid of her through the legislation they’re vehemently opposed to.  He said that there’s no way that she’s going to make one iota of difference to the votes in parliament.  Soper said that if Darleen Tana stays on, it shows that the money is of more interest to her than what is democracy.  LISTEN ABOVE See omnystudio.com/listener for privacy information.

I may not have been flying to Brazil, but it took me almost as long to get from the North Shore to Auckland city on Friday night. There was a serious crash just before the Harbour Bridge and as fate would have it, I was due to meet friends to go to the Chelsea Handler show. Had I known what Chelsea Handler was going to be like, I wouldn't have made the effort. I'm sure she was all very risky and shocking and wowseballs when she first came on the scene, but it was all a bit dull really. But never mind, at least I have an opinion - and it was a night out and you meet your people. But an hour and a half to get there in what would normally be a 25 minute trip? An hour and a half. It would be great to have a better alternative than a 1 hour 30 minute trip into town when something happens. I can't see a second Harbour Bridge in my lifetime, or indeed the lifetime of the next two generations, but bring on the Roads of National Significance. Seven roads are being fast tracked and they may well be tolled to help pay for them. It will be up to NZTA to decide whether and which roads will be tolled, but the Transport Minister, Simeon Brown supports a user pays approach. We're open to all types of funding and financing arrangements to get infrastructure built in New Zealand. The reality of the country is that we have an infrastructure deficit. We have had six years where we've had nothing done and we need to get actually make things, get things done faster in New Zealand. And so we've said all options are on the table to get infrastructure built faster in New Zealand and that's why we're putting fast track on the table because otherwise these roads would take years to get consented. New Zealanders are sick and tired of how long it takes to get anything done in New Zealand and as a Government we are we're frustrated about the time it takes that we're breaking through all of those barriers so we can get things done in New Zealand. Yes, what he said. I mean, maybe not all New Zealanders are frustrated at the length of time, but I am. I'm frustrated and annoyed that in six years, there was no progress made. And I don't have a problem at all with having tolls on some roads because by law, an alternative must be offered. So, if you don't want to pay the toll, you don't have to. You don't like tolled roads? Don't drive on them. Really simple. Perhaps Tauranga listeners are in a better place to judge, though. I mean I have no problem at all with paying the toll going north. The road is fantastic and it makes a difference when it's open. So no problem at all with that, because if I didn't want to pay it or felt like taking the scenic route, I could. But perhaps Tauranga is a better place to judge because they have two of the three tolled roads in the country in their district. So perhaps you might be able to offer an insight into what it's like to have the toll roads more than I. I only travel up there every few months and I'm very grateful and happy to pay my $5 or whatever it is for the round trip. But these roads have been in the planning for a decade. Let's get cracking. And absolutely we should just fast track it and get going. A number of the projects have already had the lion's share of the work needed done on them. So all the work was done – costings, measurements, soil engineering, preliminary reports - all ready to go, and then they were shelved and left to gather dust under the previous administration. Communities change in 10 years, so NZTA said they'd have to go back and take a look and see whether some changes were needed, but they won't be starting from scratch. The soil composition is not going to change in ten years. Belfast to Pegasus, Hawke's Bay expressway, SH 1 Cambridge to Piarere, SH 29 Tauriko, Takitimu Northlink Stage 2, Mill Road and Warkworth to Wellsford. Bring it on! LISTEN ABOVESee omnystudio.com/listener for privacy information.

Two billion dollars was poured into mental health by the previous administration, and it just proves that chucking money at a problem doesn't solve it. The Mental Health Foundation at the time was sceptical that the huge boost in funding would be spent in the right areas. Education about maintaining and boosting mental health and well-being, they said, should be just as important as the services needed when people are in crisis. But the government was more about funding the ambulance at the bottom of the cliff.   So what was the result of that huge investment in mental health? Nearly half a decade later what do we have for that money? Well, as many of you know, it's now harder than ever to see a counsellor or a psychologist, even privately, even if you've got the money to see them privately, you'll be waiting. Workforce shortages continue to cripple existing services and impede the rollout of new ones. When it comes to hospital beds, well, acutely unwell mental health patients will still find themselves in a makeshift bed in a staff room, or on a hospital ward not fit for purpose. Resources are so stretched that children harming or starving themselves are typically only admitted if they've tried to take their own life. It's been like that for some time. In several regions, young people in crisis are having to wait twice as long as they did five years ago to see a specialist mental health service. And that's with $2 billion poured into the sector.   Meanwhile, research shows the mental health and well-being of New Zealanders has been in decline over the last decade, while the number of adults unable to get help for their mental distress or substance abuse has risen. Mental Health Minister Matt Doocey is hoping to turn that around, (and good luck to him) with five mental health and addiction targets announced yesterday with some funding. And promising that there would be a big focus on prevention and early intervention and that's a focus mental health campaigner Sir John Kirwan supports.    “Look, there's three things that are really, really important for me. You cannot centralise mental health, so it needs to be a community issue. I travel the country, there's some amazing people in the community that are doing great mental health work so we need to finance them. The second thing is we've got to start talking about preventative mental health, how do we stop pushing people off the cliff? And you know, I think what this government has said, if we give 10 million this year and these people come back to us and say this is working in the community, you know, we've got this program that's working. Here's the proof. They're going to extend on that money. So community is where it's at. And if you're out there and you've got these programs in place where you know you're making a difference in mental health, then I would say apply for it. Innovation is the word we need. You know, this is a worldwide problem here, as you know. I mean there there's 800,000 people committed suicide last year, so this is a crisis around the world and our beautiful little country is way up there in the bad stats. So what we've been doing and I don't think this is anyone's fault, what we've been doing is not working so we need to try and attack this differently. So innovation, giving money to the community, then proving back that it works and then giving them more money is definitely what I think we should be doing.”    That was Sir John Kirwan talking to Heather du Plessis Allan last night. So I'd love to hear from those of you who have been trying to get help for a loved one, trying to get help for yourself. What's the wait time? What are the treatments offered to you if you do finally get to see someone. And for those who are initiating community responses, for those who are trying to help out on a local level, I would love to hear from you as well. What are you doing that's different? How are you helping? You know we tried with the gangs to see if it worked putting money with gang members, because they can reach the hard to reach people. I think at best you would say the results were indeterminate from Harry Tam’s programme. But I would very much like to hear from those who have been trying to access support or help for someone they love or for themselves. And I'd love to hear from any initiatives that actually work, they might be little, they might be small, they might be bespoke, but they might be working. See omnystudio.com/listener for privacy information.

This week Tony Astle ate at The Engine Room, an Auckland restaurant with a focus on seasonal dishes and locally grown produce. He sampled the Bluff Oysters, the Grass Fed Scotch Steak with Maitre d’hotel butter, Hapuku -the catch of the day- with eggplant, caponata, and saffron aoli, and the twice-baked Cheese Souffle, which was once a signature dish at his own Antoine's.  The twice-baked cheese souffle from the Engine Room. Photo / Tony Astle Plus, for desert he tried the Coconut Panacotta, the Chocolate cremino al chocolato, and topped it all off with a selection of cheeses. "A four tick experience... bordering on five ticks."   LISTEN ABOVE   Recipe of the Week: French Onion Soup Photo / Getty Ingredients 2 tbsp oil  10 large onions peeled and thinly sliced  1 tsp sugar  1 tbsp flour (optional)  3 litres heated fresh beef stock  375 ml dry white wine  Note: This soup is best made at least two days before it is required.   Method 1. In a heavy-bottomed pot add the oil, sliced onion and sugar. 2. Over a low heat, slowly cook the onions, stirring frequently. 3. This process will take some time. 4. When the onions are caramelised, but not burnt, sprinkle them with flour. 5. Stir well. Then, add the heated stock and the dry white wine. 6. Bring to the boil. Skim-off any scum that floats to the surface throughout cooking. 7. Reduce heat, simmer for about 40 minutes. 8. Remove from heat, chill, then refrigerate until required.   To Serve  1 Baguette thinly sliced  Gruyere cheese, grated  1. Preheat an oven to 180 deg C. 2. Heat the soup, then ladle it into individual ramekins. 3. Top with slices of baguette, liberally sprinkled with enough Gruyere to cover the top (about 3 tbsp per ramekin). 4. Place in oven and bake until golden brown.   LISTEN ABOVE See omnystudio.com/listener for privacy information.

The Government will officially announce this morning a plan “to flood the market” with land for development in a bid to end New Zealand's housing crisis. Chris Bishop will use a speech to the Real Estate Institute of New Zealand later this morning, to announce a slew of changes to New Zealand's planning laws.  He wants to flood the market with affordable land to develop and to make it easier and cheaper to develop that land into housing as he told Mike Hosking this morning.    CB: We're going to let cities grow, Mike, it's really important. We've got a housing crisis. We need to allow our cities to grow. We need to get rid of the Auckland metropolitan urban limit. Let Auckland grow out at the fringe, but also do sensible density around transit corridors and around our train stations. More apartments by train stations, more mixed-use zoning, let our cities grow and get on top of this multi-generational problem of housing affordability.  MH: Is this mainly metropolitan? Rural New Zealand, provincial New Zealand doesn't really need to worry about any of this, cause it's not really a problem for them or not?  CB: Yeah, what we call tier one and two cities, so Auckland, Wellington, and Christchurch, Hamilton, Tauranga, we're not talking about provincial and, and regional rural councils, you know, they've got growth ambitions as well, but we're really talking about our big cities.      Excellent. We need more homes. The lack of affordable housing has left a generation feeling locked out of home ownership and the lack of social housing has led to a myriad of social problems.   But. But. But. There must be protections for future homeowners around the quality of the builds for the community, for all of us who call a city home. Just look around Auckland City if you've visited, if you live here, so many of the apartments chucked up in the 90s are aesthetically abhorrent. They are not fit for purpose. There was no thought put into building them, just chucking them up to basically factory farm people. There must be some rules around what developers can build and how they build. Green spaces, community spaces, homes, just as a basic, that don't leak or have bits drop off into the street. Parkwood Apartments, City Garden Apartments, Victopia, Harbour Oaks, The Pulse, Westmount, St Lukes Gardens, Stonefield villas, that is on the first 2 seconds of a Google search of Auckland apartments that need to be remediated. And the human misery that goes along with sinking your money into a spanking new apartment, only to have it fall around your ears a decade later cannot be overestimated.   So fine, do quality apartments with community spaces, green spaces, that allow for people to live in them. Not just shelter overnight but to live in them. And to live in them for as long as they want, not have to move out while dangerous buildings are repaired. There has got to be some comeback on the developers. So that is one concern.   The other is the idea of moving beyond the city limits. I mean, Auckland is a great sprawling metropolis anyway, it's just about at Hamilton already. Wellington, the geography sort of precludes you from sprawling, but you're certainly inching your way out there. Urban areas expanded by 15% from 1996 to 2018, with 83% of that land converted from farmland. The area of highly productive land lost to housing increased by 54% between 2002 and 2019. And market pressures (this is a story from 2021) will increase with more demand as the population grows here and overseas. Only about 15% of land is flat with good soil and climate, that makes it ideal for food production, which means it needs lesser irrigation and fertilizers. The Ministry for the Environment said if productive land was not available for agriculture, it forced less suitable areas to be used, requiring more fertilizer and more irrigation, which could then hurt the wider environment.   I am absolutely not against building more homes, building more apartments, building more houses, we have to, there's no two ways about it, but we have to do it properly. We have to recognise that if we don't do it well, all we're doing is taping up a problem in the short term, while creating a much, much bigger problem down the line. And I think future generations will have more than enough to deal with, without us giving them even more problems. See omnystudio.com/listener for privacy information.

Christopher Luxon joined Kerre Woodham for an hour of talkback, taking questions from listeners and delving into their plans for the upcoming months.  The Prime Minister says our housing development has been running like it's 1975.   The Housing Minister is today announcing planning changes agreed by Cabinet in an effort to address the housing crisis.  It will reform council powers on urban boundaries, liberalise planning, and require councils to plan for 30-years of growth.  Christopher Luxon told Kerre Woodham that he recently opened a great build-to rent-development in Auckland's Sylvia Park.   He says we've ended up in a crisis because we haven't evolved laws to unlock those kinds of developments, or to encourage investment in build to rent programmes.  With politics heating up all over the world, Luxon is keeping his thoughts about major overseas elections to himself.   Democrat US President Joe Biden and former Republican President Donald Trump are facing off again on the 2024 election campaign trail.   Meanwhile, people vote today in the UK on whether to support Prime Minister Rishi Sunak's Conservatives or flip to Labour and Keir Starmer.   Luxon told Kerre he can work with either Biden or Trump.   He says it's his job to advance New Zealand's interests, and he will do the same in the UK with Sunak or Starmer.  LISTEN ABOVESee omnystudio.com/listener for privacy information.