Mōrena and welcome to The Bulletin for Thursday, April 14, by Justin Giovannetti. Presented in partnership with Z Energy.
In today’s edition: Welcome to the orange level of Covid; food prices soar over past year; Reserve Bank hikes borrowing costs; but first, a look at New Zealand.
Watching the sun rise over Tāmaki Makaurau. (Image: Leonie Hayden)
This is my final edition of The Bulletin.
After two years of reporting for The Spinoff, this is likely the last thing I’ll write from parliament. If you’ll indulge me, this will be a little different. I’d like to take a step back and look at where we are as a country and what I’ve seen over the past 23 months. It has been exceptional.
New Zealand needs a plan for the coming years.
Build back better. It was a promise made last year by prime minister Jacinda Ardern. Emerging from Covid-19, she vowed that New Zealand would not repeat old mistakes. Instead, Aotearoa would be more resilient, sustainable and a fairer country. Build back better wasn’t an original slogan, borrowed from US president Joe Biden, Canadian prime minister Justin Trudeau and others. The World Economic Forum, a posh annual meeting of the global elite in a Swiss ski town, even used the line as it called for a rethink of capitalism. However, far from that lofty goal, it’s hard to see any evidence in New Zealand that we are building back better.
Matching thanks for the public sector, with real actions.
Early next month, the Ardern government’s public sector wage freeze will enter its second year. I asked the public service minister yesterday if the freeze will be dropped. Chris Hipkins said he’s looking into it. He acknowledged that with the worst inflation in generations, the average pay of public servants is now shrinking. The prime minister and senior ministers have thanked nurses, border workers and the public service for keeping us safe during Covid-19. Those thanks have not extended to actions. This week began with nurses on Breakfast telling the country they felt "betrayed" by a new deal that gives them no back pay for the entire pandemic. Many have been offered a $3,000 bonus. For working the entire pandemic to this point. They were expecting ten times more.
A decade to rebuild from the past two years of hardship.
The public service deserves more than our thanks. It deserves a fair deal and a long holiday. We can’t really offer the second half unfortunately, so money will have to do. After two years of pandemic overtime and accelerating global uncertainty, things aren’t getting easier. The defence force has made no secret of its struggles. Stuff has written that it’ll likely take two years for the NZDF to rebuild from the number of people leaving right now. I’ve spoken to people in the defence force who worry that’s an optimistic assessment. Not only are young soldiers leaving the army, often enticed by better pay in the trades and easier conditions, but so are senior officers. The mid-level management of the defence force, the captains and majors, are leaving in growing numbers. The reasons are many, and while pay is a significant issue, it's not the only one. You can’t replace a major in two years. That’s a decade of training and investment. There are similar stories in police, hospitals and schools. For the success of the last two years of managing the pandemic, we will spend a decade rebuilding.
Fairness is central to New Zealand.
Two years ago, before I moved to New Zealand, I spoke to a former Labour cabinet minister to get a sense of the country. I’ve struggled to reconcile one of the things he told me about the Aotearoa I’ve written about since then: “Fairness is central to the Kiwi mindset. People don’t like homelessness, they don’t like seeing people who can’t afford shoes or kids without lunches at school”. For much of the past two years, I’ve watched that fairness slip away. The country’s dashboard, if such a thing existed, would have a constellation of lights flashing red. While it’s not the control console at Chernobyl, it should be concerning.
All the warnings in a single day.
Earlier this week, the chief executive of the treasury announced that young people are falling behind. Stuff reported her concerns that the well-being of people under the age of 65 is slipping away. Red light. The very same day, police in Auckland warned that crime is up sharply in the central city. The NZ Herald wrote about how things have gotten out of hand. Red light. The union for healthcare workers, the very same day, said staff is quitting to work at KFC and Bunnings as pay negotiations drag on. Newshub reported that many have received advice to go to Australia for better conditions. Red light. There was nothing unusual about Tuesday this week, when all those stories were written. A Reddit user, who put together the stories they are seeing in the news, asked what the plan is to fix this. That’s an excellent question. I don’t see one from any party.
Fin.
Much of this comes back to housing. Incomes are being squeezed as a cost-of-living crisis and housing crisis are feeding off each other. For many young people, the dream of buying a home is gone. What’s replaced it is often expensive, precarious, substandard rentals. There’s little surprise that many are looking overseas. I’ve sat in well over 100 press conferences over the past two years. Asked about her plans for housing, the prime minister used to draw a line in the sand: “No one wants to live in a country where the only way that you can move into your own home is if your parents can help you”. She repeated the line numerous times, until it was clear to most that her fear had come true. The line in the sand was washed away by rising house prices. There’s still time to bring it back. In a few weeks, the government will table its next budget. While still gun-shy after the failure of Kiwi Build, it could put forward a transformative plan to spend billions, accelerating construction, bringing in more builders and putting up the roads needed to house the next generation of New Zealanders.
That would be building back better.
A note from deputy editor Alice Neville:
While most vaccine mandates have ended and the occupiers have left parliament grounds, the story is far from over. As Covid continues to spread, so does mis- and disinformation, which makes fact-based and level-headed journalism more important than ever. We’re keeping a close watch on this ongoing story, from the inadequate regulation of disturbing online content, to those trying to turn the parliament occupation fury into a political force, to the next target of the protest ringleaders.
But we can’t do this – or the award-winning collaborations between Toby Morris and Siouxsie Wiles, painstakingly, sensitively reported investigations or up-to-the-minute live updates – without your support. As we continue to struggle against commercial pressures, contributions from our members are more critical than ever.
If you want to support what we do, please consider becoming a member today. Donate now.
It’s orange for easter.
This is now clearly living with Covid. Despite around 10,000 daily cases for a month, even epidemiologists couldn’t offer much reason not to move to the orange level of the traffic light system. The sense of resignation is best summed up by: If we aren’t going to eliminate it, might as well get on with it. The Spinoff’s live updates has the details of what was announced yesterday. There will be some substantial changes to mask rules. You won’t need to wear a mask in a restaurant or bar anymore, but retail stores will still require them. As will public transit and planes. Stuff has reported on anger from some retail operators at what they consider “nonsensical rules”. Masks won’t be required in schools either, despite a request from experts to make them mandatory under orange.
The cost of fruits and vegetables increased 18% last year.
Aotearoa experienced the highest annual food price increases in a decade, according to StatsNZ. As Stuff reports, shoppers would have noticed significantly higher costs for tomatoes, broccoli and lettuce. The 7.6% increase in overall food costs is almost as high as that seen in 2011, after an increase to GST. The government has responded that “super profits” by grocery chains are unacceptable and repeated a threat to go beyond last month’s Commerce Commission recommendations unless prices come down. Interest also reported on declining customer satisfaction with the country’s banks. With the cost of living increasing, customers have reported worse experiences as bank profits increase.
Reserve Bank hikes interest rate to tame inflation.
The Reserve Bank went with a double hike, increasing the official cash rate by a half percentage point to 1.5%. Economists had been divided between a big 0.5% splash or a smaller 0.25% hike. The decision means the cost of borrowing will go up. As Stuff reports, the bank said the bigger move now will give it more options in the future. The global economy is slowing and the Reserve Bank warned that Russia’s invasion of Ukraine will mean more disruptions and price spikes over the coming months. The NZ Herald’s Liam Dann wrote that mortgage costs will likely go up when homeowners renew their rates.
How an international fashion designer is helping keep NZ pets safer.
From our friends at Southern Cross Pet Insurance: Shorter days mean evening dog walks are getting darker – but that doesn’t mean you or your pets should be unsafe around roads.
Southern Cross Pet Insurance has enlisted the talents of fashion designer Matthew Adams Dolan to create a line of pet clothing that’s hi-vis and in vogue. Dolan, who has created pieces for the likes of Gigi Hadid, Rihanna and Lady Gaga, worked closely with his dog Maisie to fine-tune the road safety collection.
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Christchurch’s old pipes leaching asbestos.
While there’s no public health threat, Newsroom writes that the corroding pipes signal the uneasy future of the country’s infrastructure. The University of Otago found that ageing pipes are leaching asbestos fibres into Christchurch’s water supply. The level of asbestos is within international safety standards, but it raises the question of how long the pipes can last before they degrade further. Much of the country’s network of pipes is about 60 years old and likely had a lifespan of about 40 years. The country is estimated to have 9,000 km of asbestos pipes. The lack of urgency in replacing worn infrastructure is a strike against councils arguing the three waters programme is unnecessary.
Student asks for apology over $300 sauce fine.
Night ’n Day has withdrawn a $300 fine it imposed on a student accused of stealing a 90 cent packet of sauce, but the student wants an apology. The Otago Daily Times reports that the retailer said there was ambiguity in this case, but stiff fines are needed to deter shoplifters. According to Flynn Sharrock, he went into a Night n’ Day near the University of Otago to buy food. He saw a packet of sauce and grabbed it on his way out. There was no price. A security guard then stopped him, took him to the back, photographed him, gave him a $300 fine and trespassed him. He offered to pay, the retailer said he was a shoplifter.
Got some feedback about The Bulletin, or anything in the news? Get in touch with me at thebulletin@thespinoff.co.nz
Siouxsie Wiles argues for masks to remain part of our normal, in orange and beyond. Charlotte Muru-Lanning reports on whether over-65s are getting a less effective flu jab this year. Don Rowe (partnership) looks at how camping is evolving in Aotearoa. Indie writes that we need a welfare system that works better for people with disabilities. Sela Jane Hopgood explains how a traditional Sāmoan tale is helping kids with sensory needs.
The Bulletin will return next week.
Anna Rawhiti-Connell is taking over the editorship of The Bulletin from Tuesday. Many of you will recognise her name from the numerous stories she’s written for The Spinoff and other fine publications. Her writing has been funny, serious and often thought-provoking. Before she brings that to your inboxes every morning, here are a few words to introduce herself:
I’ve been a Spinoff member and Bulletin subscriber since they both launched. Over the last couple of weeks, as I’ve told people about my new gig as the incoming editor of The Bulletin, the overwhelming response has been ‘Great, it’s the first thing I read every morning’. It’s really brought home how valued it is by you as a genuine service and way to start the day.
Over the last few years as column, feature and opinion writer, I’ve relied on the work of this country’s journalists, thinkers and writers to riff off and provide context for my own writing. To be able to scan across Aotearoa’s media landscape every day and deliver the best of it you, is something I look forward to doing.
As a subscriber, I’ve enjoyed Justin’s proximity to the political centre of the country as The Spinoff’s political editor and what that’s added to The Bulletin. I am based in Auckland and though I enjoy stoking the rivalry between both cities a little too much, I remain a committed follower of what happens in Wellington. I was born in Dunedin and grew up in the Waikato so also want to reassure you that The Bulletin will continue to cast out around the country to reflect what matters to people outside the big smokes. Haere rā Justin, and thank you for contributing your own layer of expertise, style and spirit to The Bulletin. Readers, I will be with you, bright and early, next Tuesday.
A thanks to readers.
I took over The Bulletin last August as the first cases of Auckland’s (yet to be detected) delta outbreak were out on the town. Since then I’ve written for you nearly every weekday about a country and world that has changed. From delta we went to omicron and then the war in Ukraine. It has been heavy and sometimes deeply personal. For nearly the month of the occupation outside parliament, I walked to work through a crowd that didn’t much like me or my profession. But there have been moments of levity and we’ve often shared them together. As readers, you’ve given back to me, by sharing your thoughts and experiences. You’ve forgiven me for not understanding the rules of cricket. Many of you have shown the warmth of New Zealand.
I’d like to thank Duncan Greive and Toby Manhire for hiring this Canadian from overseas, two years ago and trusting me with setting up The Spinoff’s first office at parliament. I also couldn’t have done this without the support of my partner Mirjam and trusty golden retriever Tupper. I’ll be spending more time with the dog over the coming weeks as I figure out what to do next.
If I can make one last request of you, it’s to not turn away from the news. It is difficult and uncomfortable and often hard. But keep at it, bear witness to the struggles of others. Be there for the people who need you. You aren’t alone.
Thank you, au revoir, mā te wā,
Justin
I'd just like to respond to the idea of more construction to employ people and "build back better". I detest that slogan because it suggests that the solution is increasing construction. We already have much of the infrastructure in place.
In my opinion, what is needed is a way for us to stop paying global prices for vegetables and fruits that are lower quality than what we send overseas. The government should consider a "mates' rates" subsidy based on the *actual* cost of sending the food around the country *locally*. Otherwise we are just subsidizing our international customers because we are paying the same rate as them and they are receiving our produce including the transportation cost internationally. This makes absolutely NO SENSE.
I can buy NZ butters and cheese in Mexico, where I live, for far cheaper than I can buy them here. I will be returning to Mexico soon because this country is simply unaffordable and quite frankly living like it's 2020 without a public mask mandate. The next pandemic will be long COVID because New Zealanders are as thick as ten planks and more selfish than the most selfish person you can think of....
Another way that New Zealand needs to fix the housing crisis is to penalize everyone who lets their house sit empty because they make more money from the rising value than the wear and tear of people living in them. The European model for making sure houses actually house people is a good example.
Unfortunately all the right-wing governments here are too spineless to implement this type of measure. They need to also fix the bright line policy so that it actually returns tangible benefits and makes it more attractive to actually have people tenanting all these empty houses. In my street alone I can tell there are 10 houses sitting empty or used as AirBnBs and that's in Devonport.
The only thing I like about the "build back better" idea is to improve public infrastructure in safe ways like cycle lanes (NZ really should legalize the right for cyclists to take the lane where it is unsafe to ride in the gutter and remove cyclists from the footpaths. I am deaf and I have nearly been run over twice by cyclists who probably yelled at me to move. That doesn't work, innit).
Finally, the government needs to make it more attractive to work in the public sector, particularly the hospitals. It's ridiculous that we need to import Filipinos and Indians to fill these areas. Of course, this requires a shift away from right-wing ideologies. Labour and National are undoubtedly right wing to the hilt. Labour is left of National but is still closer to the right than to the center no matter how you try to spin it. They do not give a flying f*** about the average person who cannot afford to live here. I earn 50k a year. I cannot afford to live here because all that income is from overseas and after tax I cannot afford to live here and I even own a house where the tenants are paying off the mortgage for me because I cannot afford to service it myself. And yes, my parents helped me get the house. Absolutely ridiculous. I never want to live here again but unfortunately I might be forced to return because the country where I live has no safety net for the elderly.
Mates rates for food. Better public infrastructure for walking and cycling and bus/train/ferries. No more user pays for hospitals. Market rates for public sector workers. That would "build back better", not your misguided suggestions for building more infrastructure that we will struggle to pay taxes for.
Very sorry to see you go, Justin. I have really appreciated your intelligent, calm and fair take on what is most important each day. Perhaps being a Canadian has let you see things about NZ that we don’t see ourselves.
Anyway, thank you for all that hard work on our behalf, and all the best for whatever you do next.
Penny