Peters says NZ First will go into coalition with the Labour Party to turn around New Zealand capitalism in the face of economic slump which is already here: Arden says 'it's an exciting day'

By Alex Tarrant and David Hargreaves

New Zealand First will enter into a coalition with Labour, meaning Jacinda Ardern will become Prime Minister, completing a rapid rise to the top after taking over as Labour leader less than three months ago.

Ardern said this "is an exciting day".

"We aspire to be a government for all New Zealanders and one that will seize the opportunity to build a fairer, better New Zealand," she said.

“We will work hard to ensure New Zealand is once again a world leader, a country we can all be proud of. We said we could do this, we will do this."

The final details of agreements were still being worked out on Thursday, however NZ First have been offered four Ministerial positions and one under-secretary post, while the Greens will be outside of Cabinet but will have three ministerial posts in areas of their specific interest and an under secretary role and will give the coalition Government support on confidence and supply issues.

NZ First leader Winston Peters has been offered the Deputy Prime Minister role but has not yet decided whether to accept it. Other roles had also been offered to him, he said without elaborating on his or roles for his caucus. He and Ardern did say, however, that New Zealand First showed a strong interest in regional development policy.

Greens leader James Shaw said this was the best result for the Greens - they would still sit on Cabinet commitees and in Cabinet when their specific issues were discussed, but would be free to 'agree to disagree' on other Cabinet decisions if they wanted to.

Shaw said the positions the Greens will get will relate to their three core election platforms - clean rivers, climate change and eradicating poverty - but he wouldn't say what the positions agreed on were, exactly. The Greens later on Thursday voted amongst their delegates to approve the deal they agreed on with Labour.

Labour is set to hold a caucus meeting Friday to "vote" on Cabinet positions for its own caucus, Ardern said.

She also said that the full texts of the agreements with NZ First and the Greens would likely be released next week as well.

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Five key policy areas: What Interest.co.nz readers need to know:

Monetary policy:

Peters wanted a Singapore-style solution but didn’t get it. But we will get, at least, Labour’s proposed changes to the Reserve Bank Act to include full employment as a dual mandate alongside price stability and changes to the Bank's governance and decision-making structure. One would expect there might also be language in the next Policy Targets Agreement about the currency.

Housing

It looks like KiwiBuild will get the green light. Peters referenced the building of 10,000 affordable homes per year – in line with Labour’s policy. Interestingly, he said that during the negotiations the parties had clarified what ‘affordable’ really meant.

Immigration

Ardern was asked what net migration levels would be under this government. She replied: – “you’ll already be familiar with our policy and that is what we’re sticking with,” meaning the 20,000 to 30,000 reduction from targeting low-grade student migrants is the policy. Peters said the focus will be on unskilled workers, and ensuring “genuine export education.” He said those in the regions who needed to bring in skilled workers shouldn’t be worried.

Water and fertiliser taxes

On water tax, it sounds like that’s gone. Ardern said all three parties had a common understanding that they wanted to clean up waterways, but different “methodology” for how to get there. She said a path had been found on which to go forward collectively.

On the nitrates fertiliser, we’re not so sure. James Shaw told media that it was a policy the Greens had run on, where Labour was instead suggesting the water tax. He wouldn’t say if it was in or out.

Regional development

Ardern and Peters said this was a big area of interest during the talks – there’s even a possibility that Labour gives New Zealand First Ministerial responsibility here. No specific policies yet, though.

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Capitalism needs to be reshaped

Peters said the primary driver of the decision was New Zealand’s form of capitalism had become foe rather than friend of New Zealanders.

Capitalism needed to be reshaped by the next government, he said.

Peters said New Zealand First believed an economic downturn was already here, noting the slumping housing market, ebbing consumer confidence and nervous markets.

He also made mention of how a lower Kiwi dollar would be desirable.

The New Zealand dollar had dropped reasonably sharply on Thursday, and fell a little more after Peters made his announcement. On Thursday evening it was at about US70.5c, down over a cent on the day.

He said he had not yet chosen which portfolio to take – as well as Deputy Prime Minister other portfolios had been offered to him, but he wouldn’t say which.

New Zealand First did not have the Finance Minister job. But he said he expected a change to the Reserve Bank Act.

Monetary policy

Peters said it was fair to say that if you looked at Labour’s and NZ First’s positions on monetary policy, including two bills that failed by one vote, two times, “that…would be where this change takes place.”

Asked whether he saw his failed private members’ bill on Reserve Bank reform coming back as a private members’ bill, he said, he could see “something like that” but would have to talk to Labour first about it.

I asked whether he expected to go the whole hog in terms of the Singapore-style model where the currency was the key monetary policy tool rather than the Official Cash Rate.

Peters responded that “we should go down the road of the Singapore model...but I didn’t secure that.”

Pending economic doom

Peters began by going over the ground that NZ First had to wait until the special votes had been counted. He said the wait was vindicated. He also said that an eleven day wait for government formation was as short as responsibly possible, drawing contrasts with the long-wait in store for a new German government. 

He said the decision was that of his party – not his. There wasn’t full agreement in his caucus, although Peters wouldn’t go into what extent this was the case.

Before announcing he would go with Labour, he hit out at the way both major parties ran their campaigns. He said Labour and the Greens had run a joint campaign as an alternative government. While the media may have lumped NZ First’s potential vote in with them, he said NZ First was never consulted on this.

Meanwhile, that allowed Bill English to run his ‘cut out the middleman’ theme, Peters said.

These two examples were why we were in the position we are today, he said, noting that New Zealand First’s decision – with the MMP environment – would give the governing party a majority.

Then he went into his economic warnings. New Zealand First could not ignore the economic crisis and slowdown that was already here. A slowing housing market, nervous markets, declining consumer and business confidence meant the next government needed policies for economic resilience. 

Peters said he was saying all this now so that the media could not blame the coming downturn on New Zealand First – it was here already.

New Zealanders had come to view today’s capitalism not as friend, but as foe, he said. This needed to be resolved.

Peters later said that the next government would focus on regional economic development and resilience.

Meanwhile, he wouldn’t say whether New Zealand First had stopped Labour’s water tax, but did say that NZ First had done the best they could for the people in the provinces and of the rural sector.

Watch Green Party co-leader James Shaw in the video below:

This is the statement Labour issued on Thursday evening:

Labour is pleased to have successfully concluded negotiations with New Zealand First as a critical step to forming a Labour-led progressive Government, says Labour Leader Jacinda Ardern.

“I thank the New Zealand First Party and Leader Winston Peters for agreeing in principle to a coalition arrangement with Labour.

“The negotiations have been courteous, constructive and robust. Throughout, we have focused on our shared values and the policies that can take New Zealand forward.

“We are both committed to forming a strong and durable government that can deal with the many challenges this country faces.

“The Green Party is now undertaking its internal approval process before we confirm final arrangements to form a Labour-led progressive Government. This too has been an excellent process, which I thank James Shaw and his team for.

“This is an exciting day. We aspire to be a government for all New Zealanders and one that will seize the opportunity to build a fairer, better New Zealand.

“We will work hard to ensure New Zealand is once again a world leader, a country we can all be proud of. We said we could do this, we will do this.

“I thank Bill English and acknowledge the service he has given to this country as Prime Minister, and for a hard fought campaign.  We both share a commitment to making New Zealand a better place and Bill has left his mark,” says Jacinda Ardern.

This is the full speech Winston Peters gave:

Let’s begin by thanking both the National and Labour parties for the manner in which these negotiations have been conducted and the work they have put into it.

It should be said that during this time elements of how politics should work in an MMP environment were seen with great clarity.

On 23rd September, election day, the effect of over 446,000 votes, or 17% of the total, was not known.

We believed on election night that those uncounted votes would have a profound effect on the final outcome. That’s why we waited until October 7 to find out exactly the numbers we were dealing with, and what that meant, before beginning negotiations with interested parties and bringing this matter to finality as soon as we could, in the most responsible time.

We started negotiations the day after on October 8.

We believe that 11 days from start to finish is not too long to wait and stands in stark contrast to the months that it will take the composition of the German government to be known. Germany had an election on 24th September, the day after ours.

New Zealanders will know the outcome of their election today. The German people will know their outcome in December.

Decision

This is a decision made by New Zealand First, and it is its decision, not that of the Leader.

Every New Zealand First MP and board member is a witness to that. We consult and that has been the case in our 24 years of existence as a political party.

Personally, I have entered into two governmental agreements with Prime Ministers from different parties. We have shaken hands on it, and both those former Prime Ministers have confirmed that as a result of that agreement I entirely kept to my word.

Campaign

In the last campaign the Labour Party and Green Party campaigned as An Alternative Government. On the question of the numerical construction of that government New Zealand First was never consulted,  but many commentators, factored in our support as a given.

That enabled the National Party and others in a grouping of four parties, to claim that they were facing a group of three parties, and where New Zealand First was concerned voters should “cut out the middleman”.

Whether people like it or not the strategies of both those alternative groupings failed.

That is why we are in the position we are in now. That said the decision that is about to be announced does not represent over 7 per cent of the vote or 17 per cent or, dare we say, 45 per cent – this decision represents the majority in an MMP Parliament.

The government I was first a member of won 39.8 per cent of the vote.

And that was 10,000 votes less than the opposition party got.

Negotiations

The agreement we have reached is a summation of the policies that survived the negotiations.  As the song says, “You can’t always get what you want.”

Our negotiations have taken place against a backdrop of changing international and internal economic circumstances which we cannot  ignore.

We in New Zealand First believe that an economic correction, or a slowdown, is looming, and that the first signs are already here:

-          In the housing market slowdown

-          In Reserve Bank and trading banks nervousness

-          In the cessation of hot money into our economy

-          In property ownership concerns

-          In receding consumer optimism, and

-          In ebbing retailer confidence

There were great risks in whatever decision we made and despite our having had no influence on these risks, some will attempt to heap the blame on us.

That those blame caricatures are both spurious and misplaced, won’t stop attempts to misdescribe the cause of events.

That’s why we are putting this scenario out front, right now, so that such attempts will fail.

Awareness of looming consensus has affected our decision.

Our choice today relates to how best we mitigate, not worsen, their  impact on as many New Zealanders as possible.

As  a party New Zealand First believes it has secured major policies to advance New Zealand economically and socially.

Big or small all of these policies are important.

When we construct the formal agreement summating those matters we have negotiated, these policies will be published.

It is not my privilege or responsibility to summarise them today.

Capitalism With a Human Face

Far too many New Zealanders have come to view today’s capitalism, not as their friend, but as their foe.

And they are not all wrong.

That is why we believe that capitalism must regain its responsible - its human face. That perception has influenced our negotiations.

We’ve had to make a choice, whether it was with either National or Labour, for a modified status quo, or for change.  In our negotiations both National and Labour were presented with that opportunity.

Working together, cooperating together, for New Zealand.

We choose a coalition government of New Zealand First with Labour.

Greens vote to approve deal

See the Greens' statement below:

The Green Party is pleased to support a Labour-led Government that will deliver on the Green Party’s goals, following agreement from the Party’s delegates this evening. The Green Party will support the Labour-led Government on confidence and supply.

“We campaigned with Labour to change the Government and that’s what we’ve delivered tonight,” said Green Party co-leader James Shaw.

“I am confident the agreement reached with Labour will deliver the most green change of any Government in New Zealand’s history.

“This is an historic moment for the Greens. We have spent nearly 30 years working towards being part of Government to deliver change for our people and our environment. It’s the first time the Green Party will hold Ministerial positions to deliver real change that benefits our country.

“We plan to make a positive contribution to a Government New Zealanders can be proud of. Our commitment to the country is to provide stable Government while delivering on our priority areas of climate change, water quality, and ensuring a social safety net that treats everyone with dignity.

“Our conservation estate, our oceans, and our native birds will be better protected. Our cities will move faster and their residents will be happier with cleaner transport options and better quality affordable housing.

“The Green Party shares many goals and values with Labour and NZ First. I look forward to working with Jacinda Ardern as Prime Minister and with Winston Peters in a genuine MMP Government.

“We have changed the Government and now we will get on with the job of delivering the change New Zealanders voted for.

“The hard work starts now and the Green Party is rearing to go.”

We welcome your help to improve our coverage of this issue. Any examples or experiences to relate? Any links to other news, data or research to shed more light on this? Any insight or views on what might happen next or what should happen next? Any errors to correct?

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308 Comments

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32

I pointed out way before the election that National's immigration policies would sink them .

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31

But without immigration the so called 'strong economy' National created would evaporate. They were great at 'flooding the country' for short-term bragging rights of 'growth'. Now look at the infrastructure deficits they've left for us to pick up the tab for. Good riddance.

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Part of it was Nationals not so covert blue voter import scheme. Almost got the numbers.

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Exactly, part of their 'import the third world while turning the country third world' policy.

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Hopefully one of the first things the coalition does is changes the ridiculous rule where you only need to reside in NZ for one year to vote, they were always going to vote for National with their policies of over immigration.
Something like at least 5 years or being a NZ citizen would be more appropriate.

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11

Shared only with Malawi, Chile, Ecuador and Uruguay; who don't have the same degree of immigration.

Sounds like a good policy to put through parliament early on.

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25

National's lack of action re rising house prices also cost them Boatman. Watch those listings rise on Trade Me.

I agree National have handled housing badly but there was no opposition support for changing the RMA.

The RMA should be problematic to this red coalition if it is not then one would have to suspect that their has been a deliberate attack by red supporters to force prices higher through supply shortages to undermine National.

gordon do you expect those listings to also significantly include FHBs who due to drop in equity, find themselves being sold under mortgagee sale?

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15

Well Mr Boatman you and I exchanged views on this several times and while we don't like to say "told you so," well, told you so. NZF was afterall, the only sensible tactical vote on offer , a handbrake. National has only themselves to blame, conceited, complacent, careless too.

The real estate market is officially over !!!

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10

The fake bubble market is over, we might get back to reality now, which will be good.

except from the probable price drops, the Q is, how far.

Deputy PM, Labour must have been desperate. As a NZF voter this is the best possible outcome, and as high up the food chain as a minor party can ever hope to climb.

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19

Consider yourself punished Bill.

Being in government with Winston will be punishment enough for Jacinda.

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18

I don't know, Labour and NZ First had a very smooth government together for their last time.
National can't seriously work with other parties because they are by nature very arrogant, the only coalition partners that national can work with are ones like Act that have around one seat, and are in such a weak position they are never going to give the nats a hard time.

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25

Its not about Winston or Jacinda, its about fixing this mess National have created, and to create a nicer NZ. Not a greedy one for the me, me, me's.

I beg your pardon swapacrate.......the me, me, me is coming from the ranks with their hands out........tell your nonsense to the kiwis' who work 50% of the year to fund the me, me, me types you talk of!!! The one finger you have pointing at hardworking kiwis has 3 pointing back.

National has let too many people keep their own money for too long, now it is time to take it off them.

It's much easier to argue against a caricature than a reality, don't you find?

I can only imagine that's the reason to resort to such a tack.

Lack of intelligence also plays a part. For example, it's the only option if you're not smart enough to form a logical and coherent argument in favor of your point.

Entirely possible. I'm pleasantly surprised by Winston's speech, however. Seems pretty grounded, and sincere in wanting to leave a better legacy to those who follow. We could do with a bit more of that attitude in NZ's politics.

As long as she likes late night Scotch sipping she will be fine.

yes and the people here commenting i think are actually left wing attackers finding a place to attack business who dont actually read this site at all!!

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41

Beware of low flying toys as Hoskings, Smith, Williams, Armstrong, Young et al empty their respective cots!

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27

watching hosking tonight he looked shocked and is already trying to make national out as the winners here

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Hosking just doesn't quite get it, it's a bit too much for his narrow minded little brain.

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Phithy,

It made my evening to watch Hoskings petulant,childish performance.

So much angst, so much denial, so much for TV.

All talk, no substance. All talk, no insight. Could not see change coming. Should stick to radio, not a good look for the next few years, until National trend improves his image. Speaks out of turn, speaks out of term.

Surely we need a change of face, surely we need a face of change.

he understands all right....yes and the people here commenting i think are actually left wing attackers finding a place to attack business who dont actually read the articles on this site for business at all!! Your all here to attack business! Who pays for wages and funds your labour party PM salaries..

cmon Mike, happy days

Hang over kicked in.

Your all here to attack business!

Mate...err...I think a bit of trying to understand people's actual perspectives is in order if you actually believe that.

Besides that, many people's perspectives actually seem to reflect the likes of Don Braid at Mainfreight - business is important, but you also need a government to front up and tackle real issues.

Per our discussion yesterday, I voted for National twice for them to tackle some of these real issues, as they campaigned on them. But they elected not to, so I elected to call them out for it and vote elsewhere.

I might even venture onto the tabloid Herald to see Fran O'Sullivan get her knickers in a twist.

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..and I'd love to be a fly on the wall at MS Boag's house. I can hear the National knives being sharpened.

Southland bleu steak on the menu now

yes and the people here commenting i think are actually left wing attackers finding a place to attack business who dont actually read the articles on this site for business at all!! Your all here to attack business! Who pays for wages and funds your labour party PM salaries..

I hope so, and the obvious winner will be a right winger that will take them into Andrew Little's black hole for a few elections.

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NZD dropped a complete cent vs USD ,,, lol, great times to come -- Great outcome for National - we will all sit back and watch the circus now ...congrats

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You're right it's good news and our exporters will be happy.

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Ha, thanks EB. I bet someone that within the first ten posts there would be at least one pitiful 'we win even though we lost'. A Tuatara mixed sixer for me.

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We've had a nine year circus with the Nat's failed neoliberal nonsense. There are recessionary winds blowing internationally and its preferable to have a Labour government when the shit hits the fan here too. But if Trump nukes NK, nothing will make any difference.

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lol , only idiots would believe what he said about recessionary winds blowing internationally - we will be cooking our own recession here at home starting from next week .... very clever and silly of him to push back the blame years before a disaster happens haha ... but that would be typical fools food for thought ... Enjoy the fake news
Oh BTW the S**T has just hit the Fan mate :)

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I'm not your mate, but the "clever and silly" is an impressive oxymoron.

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Poor old Hosking looks like he is going to cry...trying to spin any negative angle he can come up with. His poor national mates must be in shock.

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Property is going down

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Yes fritz but it was always going to go down just national supporter didn’t think so if national got back in. Now we’ll never know

Hopefully the tradies will be a bit cheaper as a result.

Bill already took responsibility for that, claiming National's success in achieving a "flat, to falling" property market.

I’ve never seen people get so mad of politics since high house prices,

he does not understand how MMP works and compromise to find an acceptable solution for the majority, he still thinks its a FPP system like the last three governments ( smaller parties do what they were told)
am looking for to policies looks like a lot that are similar will be fast tracked ie, rail to Auckland airport

These proponents of the old FPP system forget that on a few occasions the party that actually had less votes than the other major party somehow actually got to run the country, no coalition support partners needed to make a majority, how stupid a system was that.
Exactly like what happened in the states, Chump got 4 million less votes than Clinton but actually runs the country.
Good riddance to FPP.

If you know anything about the US system, you’d realise that each state has an equal “vote” regardless of population. Otherwise, there would not have been a USA to begin with. Based on your logic Auckland should rule NZ and to hell with the rest of the regions? How is that democratic if you have no say at all?

What about sports presenter in TV3.

Aroggance has to be and should be humbled

Will take sometime for National supporters to digest and definately a big blow to speculators and so called businessmen who were e ploiting immigrants and not forget friend's of National - Overseas / foreign buyer). V Chat will be silence now.

The sh**t already hit the fan. Its time to clean up the mess.

Calling people idiots only makes the caller look like one. Being nice to people, trying to stand in other people shoes and understanding different opinions that are not your own takes empathy and intelligence.

But thats hard for some people who only think of themselves.

I call it Magabeitist, or Putinitist, chuck in whoever you want.

I did not call all people idiots ... my statement was conditional !!
I cannot really stop those who are adamant of taking that upon themselves and be counted as such, can I?

There is quite a distinction between "Difference of Opinion" and "lack of intelligence (idiots)!" some people don't seem to know the difference ...

yes and the people here commenting i think are actually left wing attackers finding a place to attack business who dont actually read this site at all!!

why are you all commenting on this site? Its a business site not a left wing blog space !!!

Maybe becasue its a rational business / financial website and not a whaleoil fanclub website, you can always leave.....no iron curtain here.

TIL business people can only hold right-wing opinions.

yes NZD drop is great for NZ exporters , especially dairy farmers helps returns

NZD dropping is great. Yee hah.

So hopefully house prices drop, and dollar continues to drop. What a day, my wallet is feeling heavier already.

As the dollar drops, it makes our houses and shares more attractive to foreign buyers.

Not if they are not permitted to buy.

They will be able to buy houses and land for a while; and shares.

and the country runs out of capital!!!!!!!! short the kiwi ..

yes and the people here commenting i think are actually left wing attackers finding a place to attack business who dont actually read the articles on this site for business at all!! Your all here to attack business! Who pays for wages and funds your labour party PM salaries..

• Foreign ownership: Labour and NZ First have agreed to restrict sales of residential land and farmland to NZ citizens, permanent residents who live in NZ, and companies that are majority NZ-owned. A register of foreign ownership of land will be set up.

I’ve worked in countries with the same laws and the foreigners just get a trusted local to buy the property for them. Given NZ has very low property transaction costs e.g. no stamp duty it’s a no brainer.

Not necessarily. It can go too low. Depends on what fx hedging processors have on their books at this time. Also lower dollar equals higher costs e.g. fertiliser, plant and equipment etc. Anything below 65cUSD will be detrimental.
Was in a meeting recently and farmers were commenting on costs of renewing consents. Some had state of the art systems 10years ago that no longer will meet regional policy - their systems aren't failing they simply weren't engineered to current policy settings. They are looking at several hundred of thousands of dollars to upgrade. A large portion of which is compulsory employment of consultants/professionals.

Hopefully with lower dollar and rising compliance costs and potentially rising interest costs now that banks are factoring in environmental risks in to borrowing, it will see investor farmers leave the industry and allow young farmers to once again purchase dairy farms and not be the equivalent of a tenant farmer by being a <20% equity manager.
edit: reply is to sharetrader

I recall the Reserve Bank said something along the lines of .64 was where it ought to be.

The last time it was that low as a yearly average was 2006, farming costs have gone up somewhat since then.

Yes agree, see consultants weave themselves into the fabric of systems!

young farmers have no capital!!!! farming is no longer a simple new zealand past time .... its takes big capital ...

50/50 sharemilkers can average 20%+ returns if they don't get carried away with spending on baubles. Take out the investor farmers in the dairy industry on farms <700 cows and it would open the market up to young farmers again. It isn't foreign ownership per se that is the problem for young dairy farmers it is competition from NZ investor syndicates.

Yes. FPH and other foreign earners should go north tomorrow.

eco bird i cant wait for the market to open... warming up with a bit of hard training this morning in the hills to burn the fat off if there is any and then on to the markets...Hoskings was right its a mess and from messes we make money...Stock prices will stay low for years to come so trade trade trade... New Zealand never really clear the GFC after swamp... nearly but a flightless bird after all

Be wily Winston with your regIonal development and set the America's Cup to run out off Whangarei boosting Marsden Coves development potential to boat!
One for the Northland electorate, and the Ports for the Tauranga electorate!
Bonus BOND of course will be watching Chon Kee at the helm of ANZ (premature timing with that announcement Chun Ky) if d honorable hasn't jumped ship! Hehe
Sailing Away! ...

So Winston went with Labour, and tellingly not Labour/Greens.

Greens could show they understand MMP, and now go negotiate themselves, really screw in Labour and National.

lol, that's possible too , afterall they are Green !
So Labour will spend the next 3 years as a moderator between black and Green ... any decision will take 3 times the time required , that would be great for productivity eh?

They will be the obedient little Green puppies to their Labour masters. They've been trained that way.

So much for the MOU. Once again the bridesmaid.

Nah Ecobird Jacinda will just make another Captain's call and she'll be right mate

The Greens are actually in a very powerful position on confidence and supply, I am sure they will reserve the right to at least abstain on some issues.

Noncents, you make a very good point. For the sake of NZ, I hope The Greens & NZF will be able to get along. But it's true that they have not yet had any talks with each other

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National supporting specuvestor tears are absolutely delicious. Keep them coming.

Indeed

Indeed x2

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And so the the property flipping rockstar fudging lying and denying madness finally comes to an end. The bill is in the mail and it will be huge.

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Here's a true story. Was arriving in the supermarket carpark just as Winnie was making his announcement. stayed in the car to hear it. Then walked to the supermarket. Chinese national walking to his bmw was ranting away angrily on his mobile Throwing in 'labour' several times angrily.
Good sign

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Funny that. Tonight I overheard a group of lower socio demographic class talking about how happy they were about the result. No BMWs for them, just cleaning trolleys...

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Haha, they should have made their money through capital gains. Only suckers do honest work.

Greens know the plan, Jacinda checked in and ticked the boxes

Winston had to select Labour on the eve of the Labour Weekend, right ?
#nosurprisethere
#WinstonHadEnough

Congratulations to Jacinda. Not quite sure how long the honeymoon will last for to be honest.

John Key proves prophetic, quitting while he was ahead. And now he has the fallback of Corporate boardships. Master tactician, him.

Good at what he does

Which is very different from what he does being good

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Neo Libs - pay attention. You need to hear only one thing that Winston said:
"We believe capitalism must regain its human face."

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JKs hospital pass to BE is confirmed.

nows theres just the confirmation of the hospital past to NZ to come

Lets see how long this moldy green ship stays afloat. The stupid thing about this whole deal is National can raise a bill in Parliament and as long as the Greens agree then it gets passed into law. Hence why minority governments don't work. What a cluster f...

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and what would this bill be that the greens would agree with national on.
they are chalk and cheese and the likelihood is next to zero

Small matter of the Marine Reserve around the Kermadec Islands. Greens and National both in favour, Labour's Maori MP's not in favour due to loss of fishing rights.

You don’t know what anyone’s agreed to yet, don’t jump any gun

they could have passed that last government as they had the greens support so why did they not do it?

Bit bitter?

No he's bitter as hell.

Might pay if he doesn’t drink coffee tonight

Why would I be bitter? Governments don’t tell me what to do with my money or what to think. Anyone that thinks they are going to be better off under labour are allowed to glow in that angelic light. And well done to them. The only good thing to come out of this is that Bill will get the chop and he is the main reason why this fell over. Praying won’t help you unfortunately as no one ‘upstairs’ is listening and to think that is madness.

Be sure to send your memo to the new PM. And Angela Merkel as well, Germany could never be successful with a minority government.

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Well, you don't leak personal financial details about the leader of a party just weeks before the election and then expect that leader to trust and go with you in government formation, right ?

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@smokey , you are quite right. Paula Bennett is the prime suspect and she is a loose cannon in the National Party .

She was utterly stupid leaking such information to the media , and I have heard that Winston is still really annoyed about it .

When it came to light , he rectified the issue immediately .

It was a genuine error , and as he has pointed out , he hardly needs the few Dollars a week that he was overpaid

It was a crude attempt at mud slinging by Paula Bennett and she will have to live with the consequences of her stupidity

agree with you there...

why are there so many people on this site commenting who clearly dont read the articles...

Yeah but the racist greens accused him of being racist. So it was one all.

Every one is a racist, only the degree varies. That is how humans are wired. It is a survival instinct in a way, to go with your clan and familiar groupings. But education and good manners and progress in societal make ups make many of us to hide our feelings most of the time and behave.

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The property bulls constantly talk about housing being bricks and mortar that you can look at and touch. That it is safer than equities as there are no external forces that can affect house prices like they can affect equities. I think tonight the bulls will be realizing that there is a significant factor out there that can affect house prices and that is " a change of government." No asset class is ever completely safe hence the need to have diversity amongst as many asset classes as possible. Jacinda just stated live that the coalition members all agree there is a housing crisis. I can only assume they will fix it unlike National who never said we had one.

gordon, let's see what the housing crisis looks like in 3 years

exactly, and now that all 3 parties have announced that there is a Crisis ( so we all have that out of our systems) ... let's see how they are going to deal with it - As this is won't be the same as " Don't blame me if there was a recession nonsense!!"

The rest of the world not so sure about the new Government . Currency tanking. Will put price of imports up including petrol etc.

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So those of us who produce more than we consume will be in the box seat. Looks good to me.

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And add value to our exports.

The property market is officaly over !!!!!!!

It's the final nail in its coffin

Why do you think that JW ?

A day that will live in infamy.

Diddums

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I'm bathing in the tears of property speculators this evening. I feel so clean.

Will we actually hear from them. They seem very quiet tonight. Values could decrease more in Auckland and Christchurch which is good news for those looking for their first home now.

Indeed great news for FHB's. Not so good for ones who bought in last 2 years. Ultimately a fall in house prices benefits the unleveraged wealthy who can accumulate more assets at the bottom of the market when others can't get credit. The tax benefits for second home owners needs to end. Could be some bargain bach's available if that happens.

You may be bathing in the tears of holders of NZ shares this time tomorrow.

and they will recover the day after when people realize that the sun is still shinning

If the dollar drops to 65 they'll bounce

it will only be temporary as you suddenly listen to winston telling everyone that the economy will slow but be happy its not his fault ... worst speak ever of an incoming minister who now runs the government.. lucky i shorted the KIWI!!!!!!! These people are all so PREDICTABLE!!!!

Winston's body language was awful, he was stressed and breathless, and he was at pains to say it was NZ First, not him who made the decision and whatever bad things happen, and they will, don't blame him.
Terrible negative speech. He knew he was doing the wrong thing judging by his grimacing.

he smokes and is unfit... he may not last the term.... his PM are fat and un fit.... a risk to the health system...

time to get the MPs training and an example of health and responsible eating and drinking and NO Smoking

Winston is a terrible role model and shane who ever is a disgrace....

"lucky I shorted the kiwi"
Were you expecting some sort of "clever, well done" response? Will "opportunistic scumbag" do instead.

Wellington property speculators will be partying like it's1999! Labour govts always grow civil service headcount stupendously.

WINSTON PETERS IS NOW RUNNING THE COUNTRY AND IS THE POWER BEHIND THE SCENES.. LABOUR DESPERATE AND SO THEY NOW SUP WITH WINSTON.. WINSTON IS THE MAN!!!! AND SINCE HES ALREADY TOLD YOU YOUR ECONOMY IS GOING TO UNDER PERFORM DONT BLAME THE GOVERNMENT!!!! ITS THE BEST AND WORST SPEECH OF AN INCOMING MINISTER AND SHADOW PM EVER, BRILLANT STUFF....!!

Whatever

Stand Up Paddle with Winston, didnt know Winston was into surfing thought it was fishing.

Get another keyboard.

... you don't need to SHOUT , dude ... it's making you look like a sore loser ...

This is a coalition of just 3 parties ... it'll work perfectly fine ... the Gnats had to cobble together 4 parties to stay in power , after the 2014 election ...

... Winnie will be just fine ... the elder statesman , assisting the young PM Miss Adern in getting to grips with the job ... and he'll get to be minister of racing again ... there's a mutual love and respect between him and the thoroughbred fraternity ... what's not to like about that .... hmmmm ?

a sore loser? ive even given you a thumps up!!! im making more money from laBOR victory (Pun LIbor) !!!! LIBOR GET IT!!!!!!!!!!!! How many people actually read the articles on this site?

Guy's losing it. Man whatever coffee you're drinking, you should slow down. I hope the quality of your accounting software models isn't reflected in the quality of your comments.

I don't hold hope for anyone who feels they need to announce the fact they build accounting software in their forum name.
Seems like such a waste of time, such a pursuit. I mean seriously, why would you ever bother competing against Xero or MYOB. He definitely doesn't do enterprise.
So when he says he builds accounting software, I don't know what the heck he means...

I know all about racing... a losers game where capitalism rules over the average punter... you have no idea!!!! Thats a money money honey ill take the money industry and thanks for coming public now piss off while we crack the champers!!!! And i remember Mike Fay walking in the office and sipping tea from the silver service as the partnership agreements for the might SIR T were popped on the table.... and oh how the good times rolled...

Bro, your Caps-Lock key is stuck.

I would warn all those people in Albany who are letting off celebratory firecrackers ........

1) Its illegal
2) Dont let irrational exuberance get the better of you
3) We can hear it across in Greenhithe and its upsetting my dog

So dont celebrate too soon ..........nothing much is going to change .

Labour has told us that the poor , the downtrodden and meek shall inherit great wealth and riches , which will be taken from the undeserving "rich" in some kind of Robin Hood fairy-tale .

In Biblical terms , Labour promised the earth to the meek , creating massive expectations which they cannot fulfill

Auckland house prices will not fall simply because there is a Labour Government in power , and the reason is that everyone has to live somewhere , and the houses are occupied , and we are not building enough of them .

Administered costs are out of control, Auckland council is charging my neighbour $100,000 in DC levies to build 3 units and Watercare is charging another $45,000 for 3 water meters ( which cost Watercare just $600 each )

This rort will never make houses cheaper , not anyone

A Capital gains tax , like any tax has never made anything cheaper ............... not in the history of mankind .

The cost of any tax always lands with the person at the end of the rope .... the waged worker , the homebuyer , the smoker, the alcohol drinker , the consumer of food , etc .

Its doubtful whether Labour can build 100,000 the 'affrodable 'houses they have promised ............for the following reasons

1) affordability has been smacked so hard that the ball has been knocked out of the stadium.
2) The Government does not have the money to embark on a public works scheme of this scale or scope .
3) And it does not have half a million demobilized soldiers who can be trained to build these 100,000 houses as it did in 1946 .

So realistically , nothing will change for the ordinary Kiwi.

The worst case scenario is that the current boom goes bust

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Maybe they will bring in DTI's, capital gain on Investment property, no foreign buyers of existing houses, reduce immigration. Good start.

As that classic actress Rachel Hunter said, it may not happen overnight but it will happen.

YES AND A GOOD START TO SLOW THE ECONOMY.. TAX TAX TAX.. it has never worked, smart decisions work not more TAX..

Well National certainly did not have the smart decisions. It now remains to be seen if the coalition will do better.

Goverments never have all smart decsions...you cant predict everything and i think your will find this bunch will be no different but they may get fine weather... i dont think they know what a big greenie (no puns please) looks like when it rolls over the ship... S..t what was that !!! f..k what do we do now!!!! All hands on deck,,,,,, AHH help anyone at the helm!!!!!

ARE REALLY STILL AT ANZ mr CHON...?

Accountingsoftw .I hope you haven’t got high blood pressure, check in the mirror you might be ready to pop

Brilliant mate

.

your attacking the right... this is the place to do it?

"your attacking the right... this is the place to do it?" Actually we are defending the right not the wrong.

GST?

You seem a little upset, nice cold beer will help. Unless your one of the Pinot brigade.

If I got taxed extra, it still wont impact me like property prices has, and the traffic issues have. The 50 min journey that now takes me 1 hour 40 to 2 hours. Plus the houses going up 400K in the area I was looking at, so I now will look in the country. Probably a good thing.

Maybe if the Nats had made a few then they might still be there. LOL

Good idea, let's put GST up shall we?

I thnk you might be right once a big ship like a country is starting to travel in one direction at speed it takes a lot to stop it and taxes dont stop the momentum of capital flows.

Im expecting some good buying on the market in the morning and some good profits shorting the kiwi via the ASX....

Like it or not - reality is that this time is Labour government.

Writing was on the wall that this election will be for change _many knew wxcept arrogant national and its supporters for vested interest.

Today is Diwali a friend of mine just said that is the most auspicious day and also Diwali is Victory of light over darkness.

Winston is going to put caveats on those foreign houses so that cannot be sold on for a profit. GO WINSTON !!

and imagine the increase in regulations... now luckly we dont just trade markets we also create admin software for accounting and tax and law... i just love labour governments and i just love national governments,,,, its the economy that always get the kick up the ... it never gets the tax laws that would fire it up but the price of firing up the economy for a while is stress on housing and infrastructure and national let its self down on that one,,

A thought for the future. Sites such as this will now become extremely important if Interest.co continures to remain independent. Main stream media being a tool of the elites will probably spread massive amounts of propaganda and misinformation about our new coalition. It is so sad that far too many persons waste hours watching stupid tv adverts and propaganda to see vapid and inane entertainments.

what does the left need interest.co.nz for?

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asm. Look in the mirror. Why are you here apart from the fake tears?
For a start, the most effective governments among Western nations just happen to be a bit left of centre. See Scandanavia. I was there only last year and the people are far more satisfied with their governments than many of us a re. Even ShonKey feigned to move a bit left by ranting about Labour policies like Wff but did not have the guts to throw them out. This outgoing lot have pretended to move against poverty but totally ineffectually.

For complaining about the right

" what does the left need interest.co.nz for?" In a word honesty.

Indeed, putting out facts that shows the rights economic lies for what they are.

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Thank you NZF for changing the government. Structural reform is going to be hard, but I’m sure many of my friends in Auckland will be quietly excited about the prospect of going to an auction without foreign buyers. Perhaps one day my partner and I will be able to return to New Zealand.

yes and lets hope winstons doom and gloom doesnt mean capital to grow the economy will disappear and the slow down hes talks about becomes a recession.....you wont have a job to come home to...

Fat pat there won’t be auctions soon

Excellent. Auctions are the worst things out.

Not need in a buyers market , I’m surprised they’re still going now

you're probably right, good point!

04 Normal NAH there called mortgagee sales, bring them on

James Shaw speaking now.
Confidence and supply with 3 ministers outside cabinet for the greens. plus 1 understudy.

Anyone has any clues on how NZX will open tomorrow....guess?

Down 5%??

I do, little different and back to normal the next trading day

Companies selling goods overseas might rise as their returns improve with our dollar devaluing.

Yes Gordon that what trading is all about, ya

Lets hope they're left with markets to sell into

The foreign earners will go up. In the U.K. post Brexit the stock market went sharply up. NZX doesn't have as many foreign earners but Healthcare and Mainfreight will probably go up. If the economy is going into recession with low interest rates the utilities should do ok.

Penguin - interesting though with Brexit, the Pound slumped immediately which has been great for UK exporters in the short-term (but they may well lose access to their markets), but because of the low exchange rate the country is now importing higher inflation which has just hit 3% and raised expectations of impending interest rate hikes from the BOE over 2018. So exporters may or may not do well, but consumers seem to have a price to pay coming up.

Decent losing speech from English, it must be said.
As a centrist, I for one will support the victorious party I voted for, but will comment here in opposition if I think it is justified. Just like I did in the last year or two of the Clarke Government.

this is a disappointing results, in the end the whole MMP became exchange and trade of ministry/cabinet positions in order to gain power.
and from comments posted here I can see people are terribly misinformed. there's more immigration under the Labour government. national inherited the old policy and tried to tighten but too slow.

There was more immigration with labour because they were trying to replace the ones leaving

you might want to check the numbers that statement is wrong

Its not a competition.

All National has to do then is reduce what Labour did. They didnt. Just like house prices. When your in government you dont follow status quo. You do things. All National seem to do is cut costs. Keep immigration high and cut infrastructure costs. If they did more then cut costs then maybe they should of marketed their achievements, instead of coming up with a fake 11 bn dollar hole in Labours costings, when campaigning.

All I see with my two eyes is something beginning with I. Thats after 9 whole years. Then he says, whos going to drive our trucks, wait at tables and pick our fruit. Ive never seen kiwis do these type of jobs in my life.

Oh yeah lets not forget kiwis are druggies.

Look, property prices generally go up under Labour. They doubled between 2002 and 2007. Has everyone forgotten that?

They might actually somehow kick off another big round of rises. Dunno how that would happen, but I reckon it's a possibility.

If that’s your thinking maybe labour will get interest rates put to 10% next week, like they were is 2008

'Look, property prices generally go up under Labour. They doubled between 2002 and 2007. Has everyone forgotten that?'

Correct, and that's why I voted for John Key back in the day. But he also failed miserably, despite his promises.

No party is perfect, but I was convinced that Labour and NZ First's policy would better address the housing issue than National's.

Time will tell, I guess.

theres a massive difference in accessibility of doubling 275 to 550 than 550 to 1.1mil though

Video of Ardern in there now.

Property will become even more popular as a long term investment - a safe haven, given the uncertainty of the three years ahead.

Expect property prices to go up, not down, with the over-spending / fiscal imprudence that the new government will soon be noted for.

If that happens they are a one term government. All three parties in the new government say there is a housing crisis unlike National. Do you expect them to do nothing about it.

Saying there's a housing crisis is one thing, successfully doing something about it is quite another thing. In my opinion house prices will go down when the economy crashes, not as a result of government trying to contain it

land prices will go down, but policy choices of coalition (higher wages, higher taxes, compulsory unionisation, more regulation) will push construction costs ever upwards, so prices won't drop much if at all. We will not see a significant increase in house construction in next 3 years.

thats funny.... now we have some property share also.. heck we trade just about anything really......i just shorted the kiwi and it was so GOOOD!!!!! thank you winston!!! please open your mouth regularly and doom and gllom the country!!!!! please oh this is better then growth... you see all you little left people attacking the right people here the smart money always makes money and im not talking us.. im talking the big trades.. the kiwi is going to get whip sawed....

" you see all you little left people"

I think you need to grow up a little. Its a change of government. It happens. National was in 9 years obviously people voted for National and it impacted a few people hard like the homeless and the poor living in cars. They had 9 years to prove themselves. Now labour are in its obviously impacted you. But as you say you are making money. Good on you. I think the homeless and the poor have more concerns then whether you can afford a third BMW or not.

Im neither left or right. But I am concerned for the poorer people in NZ, not whether you earn truckloads more money. But congratulations on your money making endeavours, Im sure the homeless people are happy for you.

No labour is allowing me to make more money in one evening that national would in a week. who says i vote national all the time.. play the market .. not the party in power..who says i dont pay of the debts off the sick from my trading the stupidity of winston and the lack of expertise of both national and labour.. Labour will find its a lot hard then it looks to run a government... i dont care which party is in power.. and i pay off the debts of my sick friends. Train hard and stay well....i will be asking jacinda to cut the fat pay cheques of some of her heads of department to help the sick... some pretty disgusting salaries in there.... and im a sport subsidy free zone.

Incoherent ramblings from someone who is clearly angry at the election result but trying their hardest not to show it. I can see through your veil.

We may see property prices stay high and share markets take a hit. It's interesting that Winston seems concerned about the housing market slowing down.
Developing economic resilience and bolstering the regions sounds good in theory. We really should make places other than Auckland, Wellington and Christchurch more attractive.
Having seen many changes of government in my lifetime already I don't expect much will change too drastically.

agreed

Inequality has risen throughout the world, especially after the GFC and because of the policies of the governments that tackled the aftermath of the GFC. Whether it was intentional or an unintended consequence, the concentration of wealth and power in fewer people rankles. The effect is frustration leading to changes.

In many countries the Left has moved towards the Centre, but the Centre is always shifting or going round in circles.

The days of tax and spend on a massive level is over. I am sure any so called Left leaning or Liberal government in future would not indulge in such practices, but would work to reduce the inequality. They have to, if they want to continue to rule.

Even the National Party has started talking about Social Investment in NZ and it is incredible that even in opposition, Bill English has vowed to stand by that. Let us see how they meet minds with the Labour to help people.

Yep... could see this coming and its cover by many doco films from the US.... some great doc films out there on this very issue... Im afraid to say the swamp after the GFC would alway last 10 years and those who havnt studied there accounting and economic models were always going to be at a huge disadvantage,, Still a friend of min who recently went into business with her husband importing dive equipment was shocked when the kiwi dollar moved against them... SHe worked as a PHD at a university and had never herd of the GFC!!!!

In other words many well educated people who worked in government did not even know there was a GFC!!!!

A Protected sector of the economy!!!!

reality is that Gini coefficienct of NZ has been essentially constant since early 90's. So demonstrably not getting less equal. Reality is also that our GDP per capita (on purchasing power parity basis) has been increasing steadily, so poverty has been reducing - accursed neoliberalism improving average NZer's lives as usual.

The reality is not what the media and left wing campaigners (not that there is any real difference between them nowadays) reports.

You are cherry picking the data (at best) or simply downright lying. a) If you look pre- the neo-liberal changes to the gini index you will see a big jump after the changes in 1988, 1990. b) The main reason the neo-liberal reforms show no worse is the introduction of working for families to counter the effect in 2004, otherwise after teh big increase the trend was still up.

This is shown in the graph here.

"IT WASN'T ALWAYS LIKE THIS

Whichever way it's measured - and there are multiple measures - inequality increased markedly in New Zealand in the late-1980s and 1990s."

http://www.stuff.co.nz/business/88455171/the-truth-about-inequality-in-n...

Also that at the very least while the gini index is indeed "fairly" flat it is still too high. On top of that since the Nats took office in 2009 that same graph seems to show a trend that is worsening if not by much ie back to pre-2004 trend.

This is the historic data to support the this position, and not alternative "facts" that you wish to regurgitate.

It is the facts on the street that is more important and relevant, rather than the facts (?) on these statistics.
Remember Lies , Damn lies and Statistics ?

He does seem concerned about the slowing housing market which makes me wonder if they'll take measures such as loosening the LVR restrictions rather than Nationals approach of leaving it to market forces to naturally correct.
Nobody wants to see their property drop in value and especially if they're highly leveraged.

While you may be right or wrong, there is no proof in what you have written, and no time frame.

Its just copy and paste from your last statements. You must have some skin in this game to constantly want prices to go up, so its hard to listen to someones opinion based on bias. Im happy to listen if you provide reasoned analysis. But at the moment houses just seem way out of wack for average incomes. Not sure how people will buy. But happy to listen to reasoned argument.

yes national dropped the ball on this one but if you look back over time every government drops the ball on this one and then once in a while a government program of building give people a chance...Or cut government in half and produce a real market economy...

All governments are bad as far as I am concerned they are top heavy and they dont make good use of our money. I voted national 3 times, I did not vote National this time (for the lack of a technical term) they basically suck.

Im sick of traffic jams, hospital ques, immigration, education rorts, homelessness, youth not being trained and being called druggies, overseas low skilled workers taking jobs from low skilled NZers, schools being cut and the list goes on. As far as Im concerned we need to give someone else a chance.

Obviously Nationals good for you to make more money, which makes sense for your vote. I get that, but you should try and understand other people as well.

Nothing good to say then? I did 4 hours hill cycling last saturday , lovely day!!! perfect day in the country side. You know new zealand has some lovely towns and i know the jobs arnt as good as auckland but the fresh air is great!!!!! I say get out and walk often , bike if you can or swim... life for living and giving!!! Be happy if you can in the face of adversity!!!

Im from the country but I am concerned.

I kitesurf and windsurf, very badly I must add, but I do love life. Especially craft beer, but less of that with kids now.

NZ does rock and hopefully it will do a little better if we can reduce immigration and keep it the same. We are at a tipping point. I dont want it to get worse. Enjoy your cycle, thats all life is about health, family and the outdoors.

We older persons well remember the disastrous share market crash of the eighties that resulted in generations distrusting the market, hence housing becoming popular as a safe haven. It is now quite possible that landlords may be burnt as badly thus frightening generations off housing.

yep i like that one.. im old but i did 4500 feet evaluation climbing on the road bike last satruday and my personal trainer says im an oldy but a goodie

Scuse me, but are we allowed to use words like "butthurt" and "snowflake" now?

Well snowflake seems to a polite way of saying someone is a whining, nazi, redneck nutjob,

"Snowflake Referring to someone, usually the Alt-Right, Yiannopoulos, And Nazi Sympathizers (A.K.A. ARYANS), whose immense white fragility causes a meltdown when confronted with the most minute deviation from orthodox White Supremacy. They often cry bloody murder when expected to give the most modest expression of basic human decency."

https://www.urbandictionary.com/define.php?term=Snowflake

So I'd guess "snowflake" cant be an insult or non PC except to an actual snowflake, LOL.

No. I was hoping the rampant partisan debate would now subside now the election has been decided. Gratuitous insults will be deleted more freely by me from here on in. Would like to see a more civil type of conversation develop again.

(Yes, I know, the Americans have set new lows in this type of discourse. So it will be hard for some to accept a heavier handed approach from us. But I am going to try. I don't see any advantages going down the toilet with public policy discussion. Those who think there is a giant secret news media conspiracy to filter the news can find outlets for their bile elsewhere. We are going to stick to verified news reporting, and we expect readers to comment with some link to reality.)

Video of Shaw in there now.

the NZD is getting hammered... wait until the US markets open.... NZD lost almost 2% against Aussie and counting ..... lol, that was just one WP speech .... there will be some blood on the financial streets soon

yes i made money from it already!!!!! and i hope to make money on the aussi banks tomorrow morning!!!! The bigger the hammering the more money to be made!!!! Winston and his big stupid mouth could be the best thing for shorting the kiwi we have had in years!!! since 2010 to 2013!!!!

Where there is blood , buy buy buy!!!

So in the short term we see some ppl gambling on making money in a parasitic manner ie it doesnt actually produce a good. Frankly who cares what the finance markets think because from my perspective they dont anyway. meanwhile some months out real businesses will do better, yeah a win.

Video of Peters in there - enjoy

Also five key policy areas for Interest.co.nz readers.

Cheers

more money to be made from winston... he has always been a money maker for the markets, he just doesnt know it!!! Let not forget shane jones!!! I know a good personal trainer for that man!!! Now theres a thread to the health system!!!!

It will be good to see the regions given more investment. It would do the Country a world of good to take the focus and pressure off Auckland and give younger people options other than a life of mortgage stress.

Maybe now the boys in blue will have the balls to properly prosecute Toddy, Jian Yang, McCully and the like now that dear ol uncle billshitter is not there to offer kindly career advice. Not a good look Mr Policeman.

Least corruptible country indeed.

11.5 billion dollar hole.......... Now drown in that hole.

National has no one but themselves. The smartest person was JK who knew...........

But prosecution of Meteria Turei for benefit fraud will be quickly and quietly shut down. Different when the left do it?

except she's already said she'll pay it back, lost her job and almost destroyed the 3rd biggest political political party. Kind of already paid quite severely for that youthful stupidity it seems.

What the hell does the Green party languishing or her resigning have to do with punishment for potential criminal fraud in the 1990's? Parliamentarians must be held to the highest standards if respect for the rule of law is to be maintained.

She was in her mid to late 20's doing a law degree, hardly youthful. And if reports are correct then it was a many years long campaign of deception and possibly fraud on her part to increase her income at taxpayers expense. Everybody else being required to work harder so that she could enjoy greater disposable income to indulge her hobbies in her leisure time - theatre troupes, campaigning for parliament twice. Narcissistic entitlement like we see in so many politicians, though mostly not until much later in their careers.

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This Time Jacinda Government !

Hopefully NZ will be free from policies of Denial, Lies and Manipulation.

Doubt it, Winston is in this Government and steering the ship from day one.

yes now you will get winston lies

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3% foreign buyers..... Lol

Now all lies will come out. They did deny that that their is a housing crisis and to prove manipulated the defination of foreign buyer to lie to the people of NZ.

Lied about homelessness, mental health...... Can go on and on.

Saved from seeing national leaders lying on tv with smirk on their face - Arrogance at best.

They do deserve. Just showm someone mentioned and correctly Arrogance HAD to be Hunbled.

i feel better with sun shine and regular training, ill tell jacinda to make the ministers get some training in as we have far to many fat unfit ministers on both side of the house... risk to national health .

I recommend at least an hour a day to every one as it really helps see the good things in life after the bad get you down...

Sun good for V D (no pun there)

Wow - such a different comment to read in a business site - very good, thank you for that insight. Of course you are right, clear mind comes from clear body. We need more of that ethos on our planet. 30 - 60 mins exercise a day will not only make you happier, more productive and feel good - it's also great for your family, your boss or your business and the entire country!

Travelling at the moment but when was the announcement made? I see that the NZ/AUD topped out at 1.0950 around 10:30 am NZ time then started weakening throughout the rest of the day.

If the announcement was late afternoon it would seem that there were some people in the know trading well before the announcement.

Least corruptible country indeed.

i knew nothing of the way it would go but gut instant tell you to buy and we bought by 11 this morning into the asx via the nzx before the aussi open on dual listed stocks.. after you spend a decade trading it all become second nature and everyone knew that winston is driven by the other winston!!!! Think about it he cant drive national anywhere but he can drive labour.... he was never going to go with national...every trader and trading desk has a model to trade and invest a winston government a national one... if winston short the M... F ..er and if its national one split the trading short and long.. this is a business site do the people who come on here and comment actually read the articles here like we do or do they just come on here to giver business people a hard time.. business runs the country only government doesnt know it ... do any of the labour PM DO gooda's have real jobs? Now i have to own up and say i vote for all parties...one at a time of course.

I have 3 businesses, a Travel Franchise which my wife runs, IT Contracting and eCommerce website which is based on Sports and various other things.

Not trading like you, but there are many types of businesses.

I personally like reading some of the business stuff, and listening to other peoples opinions.

Im sure there are plenty on here who do some amazing things. But dont like to brag to much.

you spreading trump stuff.. fake news

does any one know what he meant by his New Capitalism ? .. or is it all generic rant?

Generic or geriatric?

:)

yep - who knows the man is now going to be the next economic messiah... currency moving wildly now ...

yes ... getting hammered alright,
wonder if the foreign investors will hit the exit gate on NZX at once in the morning and wait for the dust to settle...I would if I were them !

Contrary to what is said about the NZ currency
This is the best result for exporters and the country
A cheaper NZ$ will attract investment too

Yes totally agree NorthanLights, It will also be a big boost to the NZ tech market too.

• Foreign ownership: Labour and NZ First have agreed to restrict sales of residential land and farmland to NZ citizens, permanent residents who live in NZ, and companies that are majority NZ-owned. A register of foreign ownership of land will be set up.

• Immigration: Ardern said she will stick with Labour's policy, which the party estimates will reduce net immigration by 20,000 to 30,000 a year.• Immigration: Ardern said she will stick with Labour's policy, which the party estimates will reduce net immigration by 20,000 to 30,000 a year.

Sounds like a sensible plan to me. Lets face, there's no way we could continue on with Nationals sell everything policy (including the kitchen sink) to anyone who could pay top dollar! Particularly the selling off of farm land to foreign owners was just idiotic for a country who's main economy is agriculture.

Definitely the large farms. NZ is a small country and the other side of the world, as far as you can get from trouble. We cant sell our land, there are people and countries out there with so much money they can buy a lot of NZ. We could become tenants in our own country.

Under a zero emmissions regime all the farms wil be converted to forestry anyway. Farming is now a thing of the past. Quite difficult to farm without diesel, fertiliser and tractors and be competitive in world markets.

I very much doubt the first will happen.

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GO WINNIE! All I need from him is to reset immigration settings, and ban foreign ownership. Then he can have a well deserved retirement rest.

I feel pretty relaxed about the result this morning.
It's a better outcome than a Labour/Green government.

I fly back into the Country today. I’ll gauge the mood in the Koru lounge to get a wider reaction, but so far I’m getting a sense from FB messenger conversations that there will be a haiatus in investment decisions. Im surmising on average that National supporters, not Government supporters are the ones with the capital to keep SS New Zealand moving so the old Goat’s warning over the economy may be right on the mark.

LOL I'm sure you will get the feel from the average working NZ in the koru lounge just like JK did.

I won’t get a sense of where NZ is going economically by talking to the average working NZer. The Government sets the broader framework for the economy, and redistributes wealth but it’s the investors that make things happen.

Yep its only the few that count. Money is the only real measure of a persons worth.

Very pleased with the out come, thank you Peters for doing the right thing. Zachary property prices are going down anyway it doesn't matter who got in or even stayed in government.

Not sure if you've been watch what's been happening in China with their party conference where they outline their objectives for the next five years. Xi Jinping has clearly stated that they're going to be further cracking down on corruption so don't expect them to lift those capital flight restrictions any time soon or even in the next 5 years.

BBC: Xi Jinping: China's president 'to get own political theory'
http://www.bbc.com/news/world-asia-china-41677062

We shall see!

If I had money, I'd rather it was in property right now.

There's uncertainty lying ahead. Property is safer than paper assets - including money - in times like these.

Unfortunately, we no longer have the enormous benefit of Bill English's safe hand at the rudder.

Perhaps its because those of us on the right can adapt to any situation quickly and see the positives and the opportunities.

I look forward to clean rivers and a finish to "dirty dairying" for which NZ has become known.

Totally agree delboy. The real Right are interested in clean and green things which is why I proposed a Right/Green government.

Zachary's Real Right are interested in clean and green

A passing interest dressed up in lip-service

In the first leaders debate Bill English instantly cleaned up all the rivers with a wave of the hand by increasing the acceptable level benchmark of e-coli from 260 parts-per-million to 540 ppm

"which is why I proposed a Right/Green government."

So you want more growth ... but less growth?
Which is why I can only conclude you are deluded.

conservatives adapt? bit of an oxymoron there delboy - are you sure it's not everyone else adapting and you standing still?

The whole purpose of conservatism is to NOT change

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This was a glorious day ill never forget. English, Hosking et al. the smug, arrogant grins wiped off their faces in an instant! NZ can get back to being NZ now but a huge mess to clean up which will take a long time.

Tui,I agree,had a wonderful sleep,here,made all the better to see M Hoskings choking on all his arrogant predictions about WP sitting on the cross benchesetc ...wrong.
He must be gutted,no Monday chat with Chon Key.
Things will quieten for a while, whilst the arrogant ones spend some time picking up all their toys they have thrown out of the cot...then the world will carry on,hopefully a littler kinder,a little more caring...less carnal greed around housing,no more slum landlords ripping their own kind off through rents and oppressive work/ pay conditions...Guy Fawkes came a little early this year....the explosions went off yesterday in Parliament...and their was an amazing fairy dust light show to enjoy...

Given reported events yesterday tooing & frouing, Labour is NZF's second choice.

Henry_Tull....and the Nats were his 3 rd choice lol

I heard that yesterday, Winnie went to National in the first order, then when they did not say yes, he went to Labour. Labour was second visit. After National did not say yes, looks like Winnie didn't have a choice.
Once National did not say yes, what options, what choice did he have?
Would Winnie have gone to National first, before visiting Labour, wishing that National would not say yes?

Once a govt is in, its hard to compare it to anything, as there is only one govt.
We only have yesterdays point in time to look at the order of actions to see the comparison of the two, and what the preference was.

So National didnt want to be Government and Bill didnt want to be Prime Minister.

I really hope for NZ's sake that NZF & the Greens will get along. All 3 parties approval are needed for passing any new bill

If you look at the policies of NZF and the Greens, indeed all three there is a lot of synergy.

I mean, just where is the conflict(s)?

One obvious but minor one is the Greens dont like firearms while NZF is pro but its not a biggee, it can just be ignored.

Greens dont like guns but they do like cannabis.

Which one causes more harm to New Zealanders?

Now that is a good Q. Neither seem to be particularly harmful where managed carefully and used responsibly. I do find it ironic that the Greens tout their scientific, logical and data driven look at cannabis being or little harm and then also 100% support the science of climate change but then reject the science, data and logic on GMOs and guns out of hand, but there you go.

Cigarettes kill around 5700 Kiwis per year ( give or take , year to year ) ... as bad as our current road toll is ... ciggies wreck 16 times as many lives ...

... guns and hooch don't even rate as a blip on the death radar ...

Time to light one up , and head out for a drive !

Time to light one up and head out for a drive to the gun range?

Do we really need many new bills being passed? The more discussion and the slower it goes the better I say.

That was National's mantra for 9 years :)

DGZ are you concerned that they will pass legislation designed to slow down the housing market even more than currently being experienced up there in Auckland?

I think that's a probable myself.

Which we could argue is why we are in such a sorry state after 9 years.

@Yvil: Not true, only 2 parties are needed to pass any legislation. National and the Greens (or NZF) at anytime could pass a bill through parliament, legally. Jacinda is dreaming if she thinks this menage toi is not going to get weird - soon...

I dont understand the 'full employment " proposed mandate of the Reserve Bank.

Firstly , we already have the closest thing to full employment that we can get , the remaining 3% who are jobless are probably unemployable .

Secondly , how on earth can this body (RBNZ) be expected to attain something that requires politicians to get involved in ensuring policy and the economic environment is conducive to full employment ?

One cannot give the Reserve Bank a conflicting mandate , they have the primary function of financial and currency stability , and this means low inflation .

But we know there is a trade off between inflation and unemployment .

So how is this going to work ?

100% agreed

"I dont understand the 'full employment " proposed mandate of the Reserve Bank."
"How does monetary policy influence inflation and employment?"
Written for the USA market but it still applies here.
https://www.federalreserve.gov/faqs/money_12856.htm

"In turn, these changes in financial conditions affect economic activity. For example, when short- and long-term interest rates go down, it becomes cheaper to borrow, so households are more willing to buy goods and services and firms are in a better position to purchase items to expand their businesses, such as property and equipment. Firms respond to these increases in total (household and business) spending by hiring more workers and boosting production. As a result of these factors, household wealth increases, which spurs even more spending. These linkages from monetary policy to production and employment don't show up immediately and are influenced by a range of factors, which makes it difficult to gauge precisely the effect of monetary policy on the economy."

Even the Federal Reserve doesn't know how monetary policy influences inflation and employment. It's all theory and doesn't appear to be able to be measured with any real accuracy in reality. Central banks premise of financial stability leans more to protecting the banks, not the people. Monetary policy over the last few decades seems to only influence asset bubbles, unsustainable debt, the GFC and is a drag on the real economy.

Most economic theory BS assumes that 5% unemployment is the equilibrium so what is "full employment"?

Maybe a better mandate for central banks is to actually manage credit growth/"money" creation and this should not be in the hands of private institutions.

Maybe we the people need a greater vision than accumulating monetary "wealth" and economic growth at all costs and this is where the role/purpose of government needs to be redefined. Environmental and social conditions need to be balanced better and most likely placed above economics in importance. The economic machine should be serving us, not us serving the economic machine.

We are stuffed now. Sure if this works for the better I will vote for them but my pick is it will be a train smash.

"we are stuffed now...." now there is an amazing political commentary,so insightful,backed up with facts...

Who are you referring to as 'we'? And could you provide context as to why exactly 'we' are stuffed?

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