Image: Tina Tiller
Image: Tina Tiller

BusinessMay 20, 2021

The ties tell all: How to predict the budget

Image: Tina Tiller
Image: Tina Tiller

The finance minister’s tie hints at what kind of budget is to come. We asked menswear expert Murray Crane to help us rate the ties of budgets past.

Few people know what’s coming on budget day. Some pundits try to guess at the outcome using new-fangled techniques like “being up with current events” or “reading history books”. There is another way: cravatomancy. The colour and pattern of a finance minister’s tie can be an omen of what is to come. Stripes of green, spending’s obscene. Spots instead, the books are red.

It’s a delicate art, and one that requires a trained eye. We asked the founder and director of tailoring and menswear store Crane Brothers, Murray Crane, to cast his expert eye over the ties of budgets past. His analysis is combined with ours to produce a definitive list of tie portents you can look for when Grant Robertson takes the stage today.

10. Michael Cullen, 2001

Finance Minister Dr Michael Cullen delivers the Labour-led government’s second budget (Photo: Robert Patterson/Getty Images)

“Michael Cullen looks like he is still stuck in the 1970s but not in a good way,” says Crane. “He’s thinking big in all the wrong ways.” Cullen’s usually a sharp dresser, but this specific dark mustard yellow was a throwback even in 2001. The budget he announced was all about funding education and business. These are not new ideas, but they’re fine ones.

Crane rating: 2/10

9. Bill English, 2015

Finance minister Bill English delivers the 2015 budget (Photo: Hagen Hopkins/Getty Images)

Is that paisley? “Too much frivolity,” says Crane. “Needing to turn the dial down.” English certainly looks full of frivolous spirit here as he announces $52 million is being assigned to develop spare Crown land in Auckland for residential housing. Same problem, different year. Two ties in we can deduce that yellow means whatever problem the budget is meant to address will not be solved.

Crane rating: 2/10

8. Steven Joyce, 2017

Finance minister Steven Joyce speaks during the 2017 budget presentation (Photo: Hagen Hopkins/Getty Images)

“Boring and relatively short-lived as a look – probably needs to be changed. Same goes for the tie.” Ouch, Crane burn! A tie that needs disappearing means tax cuts.

Crane rating: 2/10

7. Michael Cullen, 2007

Dr Michael Cullen, finance minister of New Zealand, right, presents the annual budget (Photo: John Nicholson/Bloomberg via Getty Images)

“Must have been a shocker,” says Crane. “I was almost as startled as Helen Clark looks when I saw this.” Yellow means “same old problem” (in this case, incentivising economic growth), and the crisscross pattern means “new approach” (cutting business tax rates, compulsory payments to worker pension funds).

5 & 6. Bill English, 2010/2011

Bill English delivering the 2010 budget (left) and 2011 budget (right) (Photos: left, Marty Melville/Getty Images; right, Hagen Hopkins/Getty Images).

They say to “dress for success”, but this is more of a “dress for distress” – two years in a row! Yes, English is wearing exactly the same outfit. Even his hair is the same. He’s a man of consistency, whether he’s declaring tax cuts across the board or the $5.5 billion Canterbury Earthquake Recovery Fund. This tie says more about Bill English than the budget.

“Rinse and repeat,” says Crane. This might not be a bad thing: he rated this tie higher than many others.

Crane rating: 3/10

4. Grant Robertson, 2018

Finance Minister Grant Robertson speaks during the 2018 budget (Photo: Hagen Hopkins/Getty Images)

Red roses mean passion and sacrifice,” says Crane. “Never great symbolism when it comes to fiscal policy.” This was Grant Robertson’s first time delivering the budget. Look at how young he is. The gentle blood-like pattern on his tie was a portent of large investment in the health sector. Oh boy, if only he knew what was to come in 2020.

Crane rating: 4/10

3. Michael Cullen, 2006

Michael Cullen and Helen Clark celebrate announcing the 2006 budget (Photo: Marty Melville/Getty Images)

Crane is warming to the ties now. “Slightly improved, with a more tonal approach and nice nod to his ideology,” he says. Cullen’s muted red tie has a tasteful, almost holographic finish. The gleam of it reflects the surpluses he was about to announce. A shiny tie is a fantastic omen.

Crane rating: 5/10

2. Bill English, 2012

 

Finance minister Bill English reveals the 2012 budget (Photo: Hagen Hopkins/Getty Images)

“Almost good,” says Crane. “Easier to read between the lines, which is always important with a budget.” Here the thin, sparse blue stripes tell us the budget will have a broad focus, achieved with small changes across the board. Cigarettes, youth services, science and research – it’s all just numbers, innit.

Crane rating: 6/10

1. Grant Robertson, 2019

Finance minister Grant Robertson speaks during the 2019 budget presentation (Photo: Hagen Hopkins/Getty Images)

This was the year of the Wellbeing Budget, and this lovely two-colour tie is an indication of two needs coming together. It is a tie of balance. Public welfare must be prioritised alongside economic growth. Crane gave this a high rating but declined to comment. Keep your secrets, Mr Crane.

Crane rating: 6/10

Keep going!
Auckland councillor Angela Dalton outside the massive pile of scrap metal in Takanini. (Photo: Justin Latif)
Auckland councillor Angela Dalton outside the massive pile of scrap metal in Takanini. (Photo: Justin Latif)

BusinessMay 19, 2021

Massive Auckland scrap metal pile prompts call to toughen up on compliance

Auckland councillor Angela Dalton outside the massive pile of scrap metal in Takanini. (Photo: Justin Latif)
Auckland councillor Angela Dalton outside the massive pile of scrap metal in Takanini. (Photo: Justin Latif)

A metal recycling business already under investigation for breaching its resource consent was last week caught illegally dumping. Now an Auckland councillor is calling for more compliance officers to be hired to stop it happening again.

A company facing penalties of $600,000 for illegally dumping scrap metal in South Auckland is also being investigated for how it manages stormwater runoff at another site in Onehunga.

Endless Metals was served with two abatement notices by Auckland Council last week for dumping huge amounts of scrap metal at a site in Takanini, after councillor Angela Dalton alerted staff to the issue. 

James Hassall, council’s general manager of licensing and regulatory compliance, says his team is also working with Endless Metals to ensure it’s meeting its resource consent obligations regarding “the onsite treatment of stormwater” at its Onehunga site.

Dalton, councillor for the Manurewa-Papakura ward, says the incident highlights the need for more investment to be put into compliance so council can come down hard on businesses that are failing to comply across a number of areas.

“The scrap pile in Takanini felt like it appeared overnight and I was messaged by a number of locals about it, so I called council and asked if this is permitted,” she said. “But we are way too light on compliance. We need to be investing more in compliance officers as their staff have been cut. 

“One of council’s core roles is to make sure people are complying with their consenting conditions. Everyone should play by the same rules and if they aren’t then they should get whatever is coming to them, whether it’s a fine or a shutdown.” 

According to a Companies Office report, the business was put into receivership in 2019 after breaching the terms of its lending agreement with BNZ. Dalton said she’s concerned about how the company’s actions reflect on those who are complying with regulations.

“One bad apple means all other organisations in this industry get tarred with the same brush, and it’s really unfair. So there needs to be consistency in how officers are making sure these businesses are complying with their consents.”

Stuart Kagan, founder and managing director of Endless Metals, told The Spinoff that “Covid disruptions to global shipping” have meant the company hasn’t been able to export material as usual and its Onehunga site is at capacity”. 

But he’s confident the approximately 2,500 metric tonnes pile of scrap metal, which has current market value in excess of $1 million, will soon be removed from the Takanini site. 

“As planned, we started clearing the site on Monday and transporting the materials to the port for shipping to an international steel smelting operation for recycling, where it will be transformed into new steel for manufacturing such as coils, sheets, structural beams.”

Kagan wished to make no comment regarding the council’s investigation into issues relating to stormwater runoff, but he did confirm the company ceased to be in receivership in March 2020.

The pile of scrap dumped in Takanini is approximately 2,500 metric tonnes. (Photos: Justin Latif)

Endless Metals is a member of the NZ Association of Metal Recyclers. Its president Suzanne Billsborough said the industry is worth over $350 million to the economy each year, with around 600,000 tonnes of recycled metal exported in 2020, and she doesn’t believe the issues facing Endless Metals are being experienced by others. 

“Having read what Endless Metals have said, this is a one-off situation. Most scrap yards would be running sound environmental management techniques, they would have proper filters in place [for runoff]. 

“Generally the industry is in really good shape. Most scrap dealers and metal recyclers that I’ve spoken to have said they have been really busy. They haven’t downsized or lost staff and overall our members employ really good environmental management practices.”

She says the global shipping issues have been at play for a couple of years but it’s a challenge the industry is learning to adapt to.

“We export throughout the world. Our metals normally go to places like India, Asia and Australia. The Chinese changed their situation [imposed import restrictions] a year or two ago, so we’ve had plenty of time to adapt to it. But this year we’ve also had the Suez Canal blockage, we’ve had ships cancelled because of the issues in the Middle East and due to port congestion in Auckland, we’ve had ships change their routes. Covid has also had an impact, as it’s impacted on the speed at which containers can be unloaded.”

Auckland Council’s Hassall said Endless Metals has until June 10 to comply with the abatement notices, and that the council is in ongoing discussions regarding the runoff issues at the company’s Onehunga site. Calling it “one of the biggest piles of scrap that’s been dumped without a consent”, he said the council would consider taking further action, including prosecution under the Resource Management Act – carrying a maximum penalty of $600,000 – if the company fails to meet its obligations to remove the scrap metal.