“We might make mistakes but we will make other things too”– Michael Joseph Savage
Renting in New Zealand is bad. The bottom 20 per cent of income earners spend a greater proportion of their income on rent than anywhere else in the OECD. For many decades New Zealand’s housing market has failed low-income earners due to rents inflating faster than wages.
For the bottom 20 per cent of households by income, housing costs as a proportion of income have increased from 29 per cent to 51 per cent since 1988.
Too much of New Zealand’s economy is rack-rent, where those with market power exploit those without. …
Why Adding Multimodal Transport to Urban Land-Use Models is Important
Underlying assumptions of the proposed multi modal land-use model
Characteristics of Concentrated Urban Form
Characteristics of Dispersed Urban Form
Factors that help New Zealand make the most from the multi-modal land-use model
Appendix -Sufficient land pricing can pay for rapid…
Philip George Hayward response to the paper High Land Prices: A Feature or a Bug?
High land prices because of value, is quite different to high land prices because of exploitation of powers to “gouge”.
Your history lesson is instructive as an example of an honorable government providing value; that is, they acted as land vendor in the process of “improving” the land with infrastructure and so on, paying for the improvements with the sale price.
The same is true of some governments at some times and places in history, and also true of private sector operators at some times and places in history. For example, urban growth was often driven in the 1800’s by railway enterprises acquiring land to which they then provided access, and sold or rented at prices that would recover the investment they made. The crucial factor here, in land prices being “of value” rather than exploitative, is competition. As long as there are multiple enterprises obtaining the initially-cheap land on similar terms, and competing for ultimate buyers or renters, the market structure is ideally established for profit to be sought on “volume” rather than monopolistic price-gouging. …
Optimising the affordability and amenity values of land
The 2.6 kilometer long Lyttelton rail tunnel, built in the 1860s, used to perplex me because I could not understand how a tiny New Zealand province, ten years after European settlement, could afford such a massive project. Researching this puzzle reveals a lot about New Zealand’s land-use policies. It reveals that a dysfunctional compact between centralisers and localisers is a significant cause of inadequate infrastructure funding in New Zealand. For Christchurch it also reveals an unexpected dualism between being a straight-laced English classist colony and a parochial place inclined to liberal rebellion.
The full story goes like this. …
Nation-building is back!
Updated September 2020
The Green Grid has become an election issue. The Labour party have announced they are bringing forward the 100% renewable electricity system commitment five years to 2030 and they will invest a further $70m in detailed design and engineering work on the Onslow pumped hydro scheme based on the findings of the $30m business case that was announced earlier by the government in July.
The economic consequences of Covid-19 has put the Christchurch City Council in a seemly impossible situation.
If the Council cuts costs. This will be called a austerity budget that has a disinhibiting effect on the economic recovery. It will counter stimulus spending coming from central government. Government MP’s like Duncan Webb have been quick to publicly warn the Council against this course of action.
Yet CBD businesses are desperate for rates relief. Customers are down -tourists are not coming and many office workers are still working from home. Respected business figures like Richard Peebles are calling on the Council to cut costs and give rates relief to inner-city businesses. …
Christchurch’s earthquake damaged city exposes many underlying urbanism lessons. Minimising land wastage on car parking is one lesson.
Christchurch often has local spats that generate more heat than light. The public argument about whether the Council continues to waiver inner-city development contributions is such a spat.
The policy since 2014 has cost the Council $12.9 million in uncharged fees and it has announced a further $7.1 million in funding.
Some have characterised this as “fat council handouts for property developers but austerity for the rest of us”. …
In 1988, at the height of the neo-liberal free market reforming era the MoW was dis-established and privatised. New Zealand may require the spirit of the MoW to be reinvented to recover from its current recession and crises.
For New Zealand to recover from the Covid-19 Recession will require a stronger expert-led public service to successfully guide the redeployment of the nation’s resources. Whole industries, like hospitality and aviation have sustained a body blow that will permanently change their nature. Sadly, wishful thinking won’t save tourism jobs. A certain amount of economic pain is unavoidable.
A new purpose will need to be found for the rapidly expanding numbers of unemployed. …
Let us build back better
Globally Covid-19 is devastating for public health and economic well-being. Yet among the tide of bad news there is an interesting fact that indicates a potentially positive future for New Zealand.
The following quote about New Zealand’s trade surplus.
“NZ is believed to have run a $1.3b trade surplus in March as exports, including agricultural exports, held up impressively, and imports, probably mostly of non-essential items and oil, fell”
The implication of this quote is if our political and business leaders can imagine a different future, then homegrown electricity could replace imported liquid fossil fuels. …
Some political journalists in New Zealand, like Henry Cooke have amped up the pressure of the country coming out of lockdown (going down the alert levels) by indicating it is a political decision, subject to coalition politics and something to do with the public wanting takeaway food and preventing movement over a long holiday weekend.
I would contend it is none of these things. The decision should be based on science.
In New Zealand alert level four (full lockdown) has gone well. The transmission rate of Covid-19 has reduced below 1. Recoveries outnumber new infections. New Zealand is very fortunate as the hard work the country has done has been effective. The virus is dying off. …