blog march 24

PoliticsMarch 24, 2021

Live updates, March 24: Some sportspeople will be able to get early Covid-19 vaccine

blog march 24

Welcome to The Spinoff’s live updates for March 24, bringing you the latest news throughout the day. Get in touch at stewart@thespinoff.co.nz

Top stories:

3.40pm: National continue push for Mallard’s resignation

The National Party is continuing to advocate for the speaker of the house – Trevor Mallard – to resign, after wrongly accusing a parliamentary staffer of rape. 

The well-documented incident led to a costly taxpayer funded court case: including a $158,000 settlement payment from the speaker to the man, $171,000 to cover legal fees, and $4641.70 for Crown Law advice to the former deputy speaker.

Speaking in parliament today, National’s Chris Bishop said he had obtained the statement of claim that went to the High Court in the defamation action against Mallard. The statement shows that after Mallard made the comments about a rapist working in parliament, he was informed this was incorrect; Mallard then stood by the comments later in the day.

Bishop said it was “shocking” and called on the prime minister to back a no confidence vote in order to oust Mallard. Judith Collins has written a letter to Jacinda Ardern, asking her as both prime minister and Labour Party leader to support the no confidence vote.

“That is behaviour totally unbecoming of a person who is meant to uphold the standards and the integrity of parliament,” Bishop said.

The statement of claim also alleged that Mallard intended to use the defence of truth in any defamation proceedings, something Bishop said showed he was “planning to mislead the court”.

Watch Bishop speak here

3.15pm: Covid-19, on this day

Your daily look at where we were one year ago in the Covid-19 pandemic:

On March 24, 2020: The day before New Zealand shifted into alert level four, 43 new cases of Covid-19 were recorded. It brought the total number of cases to 155. Four of the cases involved community transmission in Auckland and the Wairarapa.

Tomorrow, we’ll be taking a look back at how the news unfolded on the day the country moved into total lockdown.

Rec Room: Drunk Sir Peter Blake

Have you subscribed to The Spinoff’s Rec Room newsletter? I certainly hope so, because if not you’ll be missing out on exceptional recommendations from Spinoff staffers, such as this video of an inebriated Sir Peter Blake:

As Duncan Greive writes: “Here’s a video of Sir Peter Blake at a press conference after the ‘95 America’s Cup victory, refusing to confirm the new challenger of record because “I’m not really fit for anything right now”. It’s part of a great lineage of victorious sportspeople having to do media admin when gloriously inebriated and/or hungover, but despite its clearly iconic nature I’d never seen it before. I was pointed to it by an excellent new-ish (and free) Substack from NZ tech founder and investor Rowan Simpson (Trade Me, Xero, Vend, heaps more), where he writes on a lot of interesting and knotty issues from business to investment to sports in a way that is both heady and accessible at the same time.”

Subscribe to The Spinoff Rec Room here for more high quality recs

2.30pm: Hipkins ‘optimistic’ for travel bubble in April

The Covid-19 response minister is “optimistic” a travel bubble with Australia can get up and running next month.

It was confirmed on Monday that the start date for quarantine free travel across the Tasman will be announced on April 6.

Speaking to RNZ, Chris Hipkins said there are visa and logistic issues to resolve before anything is confirmed, and more work is done to get airports prepared. “We just want to make sure that physical separation is absolutely robust,” he said.

1.00pm: No new Covid-19 cases in the community; urgent vaccination criteria announced

Updated

Some sportspeople will be able to get the Covid-19 vaccine early after new criteria for urgent overseas travel. People travelling abroad on “compassionate grounds” will also be able to get the jab ahead of the public roll-out, but only in some circumstances.

Meanwhile, there are no new community cases of Covid-19 following a managed isolation worker testing positive earlier in the week. As reported this morning, further tests have come in to show a suspected second case – a family member linked to the Covid-positive MIQ worker – has returned a negative result after being retested.

At this stage, Ashley Bloomfield said there remained just one location of interest: the Mount Roskill Countdown on Stoddard Road.

Bloomfield confirmed that some places the person went have not been classified if correct infection prevention controls were followed or if everyone at those exposure events had been contacted.

On the circumstances in which the MIQ worker was infected, Bloomfield said: “We have a really clear lead – CCTV footage and the access card records are being gone through at the moment.”

Criteria for getting emergency vaccine announced

The government has updated the criteria for those who can get the Covid-19 vaccine ahead of urgent overseas travel. This is for people who need to travel outside of New Zealand on compassionate grounds or for reasons of national significance.

“A high threshold has been set, which will balance compassion with the need to avoid potential queue jumping ahead of at-risk groups, without a strong justification. These provisions will not extend to vaccinations for new arrivals or returnees,” Hipkins said.

The compassionate grounds that would be considered for travel overseas include:

  • Needing to provide critical care and protection for a dependant;
  • accessing critical medical care that is not available in New Zealand; and
  • visiting an immediate family member who is dying.

“This does not include reuniting with family, attending a funeral or memorial service, or attending a school or university,” Hipkins added.

National significance overseas travel will include representing New Zealand:

  • In an official capacity;
  • at significant international events; and
  • in an official non-government capacity.

There have been questions asked in recent week about whether our top sportspeople, such as the Black Caps and the Olympics squad, should be able to access the vaccine ahead of the general public.

Asked whether the Black Caps would fit the criteria for early vaccinations, Hipkins said, “They’ll have to make an application. It will depend on what sort of events they’re participating in.” Olympians will meet the criteria, and sports people participating in “significant” events, confirmed Hipkins. Sports teams participating in events that “everyone is hanging out to watch on television” are more likely to qualify under the national significance criteria, Hipkins added.

“The key yardstick here is people travelling in an official capacity and ensuring their participation is in our national interest. We also expect these requests will need to be made by the appropriate agency or association on behalf of the individual, not by individuals themselves. It does not include private or recreational travel.”

Hipkins confirmed that people vaccinated under the special criteria to travel overseas would still need to quarantine on their return. He said that New Zealand is “slightly” behind the scheduled vaccine roll-out, but he was comfortable with the progress being made.

Whether MIQ requirements would change for vaccinated people would be kept under constant review, said Hipkins.

So far, in New Zealand, 41,500 doses of the vaccine have now been administered. By next Tuesday – March 30 – there will be nearly 50 clinics open for vaccination around the country. 95% of border and MIQ workers have received their first Covid jab and the focus is now shifting to frontline health workers.

Asked about whether there were any leads on the cause of the February Covid-19 outbreak, Bloomfield said it remained a mystery.

12.50pm: WATCH – Bloomfield, Hipkins to give Covid-19 update

12.10pm: I just got the Covid-19 vaccine – this is how it felt

Josie Adams explains her experience:

It’s an absolute joy to declare the Pfizer Covid-19 vaccine the least painful shot I’ve ever had. The jab itself is the quickest and easiest part of a very quick and easy process. From the moment I arrived at the East Tāmaki vaccination centre I was guided: first to a car park, then to a temperature check, then a series of desks, and finally to the little syringe that could. Every step of the way there’s a staff member nearby – nurses, vaccinators, admin staff, Māori wardens, doctors – asking how you are feeling, and do you have any questions at all?

Staff ran through the consent form with me twice, and the vaccinator triple-checked I felt OK receiving it. You will need to bring photo ID and the email detailing your appointment. If you show this email to your bus or train conductor, public transport to and from the appointment is free. You don’t need to bring a mask – they prefer to give everyone a fresh one. Don’t wear long sleeves or tight sleeves, because the jab goes in your upper arm and if you roll your sleeve up into an accidental shoulder tourniquet the jab site will bleed quite a lot. My bad.

I spoke with a vaccinator who said there are busier moments, but so far it’s been manageable. The group I came through with was entirely household members of border workers (of which I am one), and despite all the cars in the park there were only about 30 of us. By the time the wider public has access to the vaccine there will be multiple centres – right now it’s just this one. It took me half an hour to get there, and two others who arrived at the same time had come from the North Shore – it’s apparently an hour’s drive from Hillcrest. They say the process takes 45 minutes, but I walked out after 30 – including the 20 minute post-vaccine observation time.

“How are you feeling?” asked a staff member as I left. “I’m feeling immune!” I said, and pumped my fist. He laughed at me, because I am not. But I have a little business card in my wallet that says I’m only one jab away.

11.55am: Spies front up at parliament for annual public airing

Alex Braae has been in select committee and reports:

The country’s top spy has warned that further terrorist attacks could be inspired by the ideology that motivated the Christchurch mosque shooter, along with other extremist ideologies.

SIS boss Rebecca Kitteridge has been fronting up to parliament’s security and intelligence select committee this morning, an annual event in which some of the work of the spies is brought to light. She admitted failings around the March 15 attacks, particularly around how the SIS engaged with Muslim communities.

Many in those communities have criticised the spies as being too heavily focused on Muslims as potential threats, rather than potential victims of terrorism.”We know we must do better, and we will,” said Kitteridge. “It is important to note that we did not wait for the findings of the Royal Commission before acting.”

In response to a question from Green co-leader James Shaw about whether spies were looking hard enough at white supremacism, Kitteridge said that was an “unfortunate international trend.” However, in response to a question from PM Ardern she stressed that the SIS was not focused on hate speech or online extremism – rather they were solely focused on violent extremism.

When speaking about threats outside of white supremacism, Kitteridge noted that the SIS now speaks about “Identity Motived Violent Extremism” and “Faith Motived Extremism”.

“The new terminology makes it clear that our concern is with violent extremists and terrorists of varying ideologies. Those threats should not be conflated with communities,” said Kitteridge.

Kitteridge said all aspects of the organisation have been reviewed, and said the Royal Commission’s reports noted changes already made.

Acting director-general of the GCSB Bridget White also spoke to the committee, highlighting increasing cybersecurity risks, both for the government and for private organisations. She said these threats included “high profile Denial of Service and ransomware attacks” that were carried out.

“These attacks are showing levels of sophistication and capability previously seen only by well-resourced state-backed actions but are now being deployed by criminal actors motivated simply by financial gain.”

Much of the work of the agencies was not openly discussed – at least in the public session of the select committee. A private session for MPs will be held afterwards.

For example, White claimed that the GCSB “have made, and are continuing to make, valuable contributions to global counter terrorism efforts.” “I am however unable to talk in this open forum about specifics of this activity without putting at risk highly sensitive intelligence equities and capabilities,” said White.

The PM, Judith Collins etc in select committee
(Photo / Alex Braae)

11.40am: Another Countdown linked to confirmed Covid-19 case

Another location has been identified in relation to a confirmed Covid-19 case – although the Ministry of Health is yet to confirm whether or not it is a formal “location of interest”. 

A Countdown supermarket on Quay Street in downtown Auckland closed yesterday for a deep clean, with a spokesperson telling Stuff it was because a staff member “may have tested positive for Covid”.

The spokesperson said: ”As a precaution, we talked to our store team and closed the store just before midday to undertake a deep clean and wait for further advice.”

We’re expecting the latest updates from the director general of health Ashley Bloomfield at 1pm.

11.10am: NZers required to stay 180 days in the country to avoid MIQ fees

From the start of June, all returnees will be required to spend at least 180-days – or roughly six months – in the country in order to avoid paying for their stay in managed isolation.

The changes, according to MBIE, will allow for the MIQ system to be “more financially stable”. It is estimated that extending the minimum period to 180 days will affect about 3% of returning New Zealanders.

In addition, the government has made changes to the fee changes set to come into effect from tomorrow.

Temporary entry class visa holders who are partners, spouses, legal guardians or children (under 18) of New Zealand citizens or residents, or a critical health worker, and are sharing an MIQ room with that person, will remain liable to pay the lower MIQ additional person rates ($950 for an additional adult in room, $475 for a child, aged 3-17).

However, where they are travelling separately, the temporary entry class visa holder will be charged the higher fees of $5,520 for the first or only person in a room, $2,990 for an additional adult, and $1,610 for an additional child (all including GST).

10.25am: Confirmed Covid-19 case visited kindergarten

The Covid-infected MIQ worker visited an Auckland kindergarten before testing positive for Covid-19, according to a report on Stuff.

The worker – who is a cleaner at the Grand Millennium hotel – visited BestStart St Lukes kindergarten on Friday, to pick-up a grandchild.

No changes have yet been made to the locations of interest list, which currently still lists the Mount Roskill Countdown visited the following day – March 20. The worker tested positive two days later, on Monday.

On The Spinoff

A couple of excellent pieces that I’d like to draw your attention to this fine morning:

9.30am: ‘Serious stress’: Reforms to health system on the way

Andrew Little has admitted the health system is under “serious stress” and confirmed reforms are on the way, during an address to sector representatives at parliament.

The health minister said that the system does not “deliver equally for all” – in particular, Māori.

“We have to accept that the way our system presently delivers for Māori is inadequate. This simply must change,” he said.

“At the core of our reform is a by Māori, for Māori approach. Our role as the Crown is to be the enablers of change, and not the barriers to it.”

Little said that the so-called “post code lottery” of healthcare was wrong: “where you live in New Zealand should not dictate your access to good quality health services,” he said.

9.10am: Budget 2021 confirmed for May 20

Budget 2021 will be revealed on May 20, the finance minister Grant Robertson has announced.

“My focus continues to be on making sure spending is targeted at the areas and people that need it the most,” he said in a statement. Robertson has previously teased further support for first home buyers will be in the Budget.

“We will manage the books carefully including ensuring we are getting value for money in all areas of government spending and reprioritising spending where appropriate.

“We will also continue the balanced approach to invest in strong public services and addressing issues like housing, while keeping a lid on debt,” Robertson said.

The 2021 wellbeing objectives are:

  • Just transition to a low carbon economy;
  • Future of work: lifting productivity and innovation;
  • Lifting Māori and Pacific incomes and opportunities;
  • Reducing child poverty and improving child wellbeing; and
  • Improved mental and physical health outcomes

8.25am: ‘This is not a capital gains tax’ – Robertson rejects concerns around new housing package

The finance minister has refused to say whether he wants house prices to decrease as a result of the government’s new housing package.

Unveiled yesterday morning, the government has confirmed the bright-line test will be extended along with several other factors aimed at supporting first home buyers.

Speaking on RNZ, Robertson said that it’s about tilting the balance away from property speculators. “What we want is first home buyers to have a fairer go… I’ve seen a number of predictions here and ultimately they rely on the behaviour of people that we will see over the next few months.”

Asked about a prediction that house prices could continue to inflate by 27% by the middle of the year, Robertson would not say if that would amount to a failure of this policy. He said there are a lot of factors.

The opposition dedicated a lot of time yesterday to criticising the bright-line test extension, labelling it a capital gains tax by stealth. Last year, Robertson had promised not to adjust the test along with not introducing any new taxes. “What we did say at the last election was that we were going to address the housing crisis. The shape of that looks different than it did in September last year,” he said. “This is not a capital gains tax”.

Robertson said that the government is committed to “keeping an eye on rents”, as there has been some concern this package could push rental prices up or lessen the number of properties available. “Rents tend to be a product of supply and demand,” he said.

7.55am: MIQ cleaner has UK variant of Covid-19, Bloomfield confirms

Genome sequencing has confirmed our latest case of Covid-19 – a cleaner who worked in the Grand Millennium managed isolation hotel – contracted the UK variant of the coronavirus.

Speaking on TVNZ’s Breakfast, the director general of health Ashley Bloomfield said there was a direct link to a person who was staying at the hotel from March 13-15.

“The important thing about that was actually that was before our new case had their second vaccination, that’s the first useful information we’ve received overnight,” he said.

At this stage, there is “no suggestion” of any further spread.

Meanwhile, a household contact of this individual who yesterday returned a “weak positive” test has now been retested, with that coming back negative. “The re-testing there and the serology testing were both negative,” said Bloomfield.

“So, this is a little bit of a puzzle but it suggests it could have been a false positive, it could have been early infection, what we’re going to do is keep that person as a case under investigation and probably do some further testing in the next day or two.”

Over on RNZ, Bloomfield confirmed there are no further locations of interest. “Our case was not moving around a lot in those days prior to the positive test,” he said. And, in good news: “they were a very meticulous user of the Covid Tracer app.”

7.30am: Top stories from The Bulletin

A lot of detail was announced yesterday around changes to housing policy, as the government looks to get on top of the crisis. Justin Giovannetti, as always, filed an excellent first up report on what is in the package. There’s been a lot of commentary about the politics of it all – but I thought it might be more useful to share some pieces that delve into what the effects of it might be, given we all have to live in the world it addresses.

First of all, will the package get to the roots of the crisis? Quite possibly not. Michael Andrew has been asking around experts, and found many were underwhelmed. The words “tinkering around the edges” were used by Kiwibank economist Jarrod Kerr, who said the money being put towards new development infrastructure (which looks huge on paper – $3.8 billion!) would end up being much less in practice. Housing researcher and advocate Jacqueline Paul was also quoted in the story, saying the package would do little to address housing inequality for those on lower incomes.

Will it result in lower house prices? Opinion here is split, and it’s worth bearing in mind that every prediction of house prices going down over the last decade has turned out to be wrong. Stuff has a story in which economists are sceptical of a fall, and the NZ Herald (paywalled) has a story in which economists say they could in fact fall. Given the importance housing has taken on as a class of investment, it’s hard to see any truly dramatic fall taking place.

What about higher rents? Again, if you look at recent history, it’s pretty clear that rent almost always seems to be going up too. But Treasury believes that is a possibility out of the package of changes, reports Stuff. In fact, quite a bit of their advice does not appear to have been taken on by the government – not that it necessarily has to be, of course, but it is a point worth noting.

Finally, for a detailed and measured look at what this all means for the tax system, I’d encourage you to read this by Interest contributor Terry Baucher. He doesn’t take a position on whether the changes are good or bad as such – he just gets right into the weeds about what the outcomes will likely be, including a potential tax windfall for the government from the removal of mortgage interest expense being tax deductible.

This is potentially the most significant single change of all, in terms of the overall nature of the property market. It was argued for a few months back by commentator Clint Smith, who outlined why the previous arrangement acted as an effective subsidy for large scale landlords. It’s also worth noting that it represents a pretty big shift in thinking on the how the country deals with tax, in that it effectively separates housing out from other sorts of assets or businesses. Property investor lobbyists are apoplectic at this particular change, and while they tend to be an excitable bunch whenever policy changes are made, this could prove to be a death knell for a particular type of highly leveraged property investing. Hayden Donnell has written on that with his inimitable combination of funny and furious.

Keep going!
blog march 23 upd

PoliticsMarch 23, 2021

Live updates, March 23: Family member of new Covid-19 case returns ‘weak positive’ test

blog march 23 upd

Welcome to The Spinoff’s live updates for March 23, bringing you the latest news throughout the day. Get in touch at stewart@thespinoff.co.nz

Top stories:

2.40pm: Covid-19, on this day

Your daily look at where we were in the Covid-19 pandemic one year ago:

March 23, 2020: One year ago today, Jacinda Ardern announced that the country would shift into a 48-hour period at alert level three before stepping into the abyss: alert level four. People are instructed to stay at home; schools and other educational facilities will be closed. All non-essential businesses will shut.

On this day, there were 36 new cases of Covid-19 bringing the total to 102.

2.10pm: Ardern rejects capital gains tax argument in fiery debate

Jacinda Ardern and Judith Collins are facing off over today’s housing package announcement.

After questioned about whether she believed the bright-line test extension would see house prices rise, Ardern said she believed it would have the same impact that National did when the party introduced it in the first place.

The PM, to laughs and applause from her side of the house, also quoted several National MPs – including John Key – who rejected that the bright-line test was a capital gains tax.

Ardern also pushed back on a question from Collins around the lack of houses that have been built under the KiwiBuild scheme, saying that she expected the opposition would therefore support the initiatives for building included in today’s package.

Watch the exchange here

1.50pm: Ministry confirms single Covid-19 location of interest

Updated

Following the new Covid-19 information (see: 1.00pm), the Ministry of Health has formally confirmed a single location of interest.

That location is the Countdown in Mount Roskill, at 112 Stoddard Road. The date is Saturday March 20 and the time is 3-3.15pm. The advice is as follows: “Monitor your health until April 3. If you begin to feel unwell or develop any Covid-19 symptoms, contact Healthline, get tested and stay at home until a negative test result is received.”

1.00pm: Family member of new Covid-19 case returns ‘weak positive’ test

Updated

A family member of the latest case of Covid-19 – a cleaner at the Grand Millennium managed isolation facility – has returned a “weak positive” Covid-19 test, Chris Hipkins has announced.

The original worker tested positive for the coronavirus after “regular, routine surveillence testing,” Hipkins said. They were immediately moved into isolation at home along with their family.

Three other family members have returned negative tests, said Hipkins. “This is the system working as we intended.” The person works in an environment that requires diligent use of PPE.

Contact tracing has identified “very limited exposure” from the worker. The individual was asymptomatic, Hipkins confirmed.

The family member who returned a weak positive result is being retested today and genome sequencing is being carried out for the whole family, results of which are expected back today.

Since March 1 there have been eight cases at the Grand Millennium, which is the country’s biggest managed isolation facility, said Ashley Bloomfield. All were identified on day zero or one.

The person who has tested positive worked yesterday, confirmed Bloomfield. They wore a mask and two workmates are now in isolation.

The family is being spoken to about moving to the quarantine facility.  The new case was on fortnightly swabs, with the last one taken on March 4. They had received the first dose of the vaccine on February 23 and the second on March 16. Full protection from the vaccine generally kicks in only seven days after the second dose, said Bloomfield.

One location of interest has so far been confirmed: the Mount Roskill Countdown on Stoddard Road. The Covid-infected individual visited the store for a 10 minute period on March 20.

The time period of interest will soon be on the Ministry of Health’s website and anyone who was there at the relevant time should be aware of symptoms.

How effective the vaccine is at preventing spread is the subject of intense research and evidence changes daily, said Bloomfield. When large portions of the community are vaccinated, it is effective at preventing spread, he said.

The worker’s family had not yet been vaccinated, Bloomfield confirmed. Family members of MIQ workers are in group one of the government’s vaccine roll-out.

In addition to the new MIQ worker case, there are three positive cases in MIQ and one historical case, bringing the rolling seven-day average to five. There are now 68 active cases, with 2,112 cases in total.

Hipkins reiterated his earlier message that the risk to the public from this new case is low. Even lower was the risk of an alert level change: “very very very low”, said Hipkins.

The person should have been swabbed last Thursday on the fortnightly schedule, confirmed Bloomfield, but had a good personal reason not to be tested. They were tested a few days later before they returned to work.

The CCTV upgrade at the Grand Millennium is almost complete, which allows visibility of most of the common areas in the facility and will therefore help with the investigation into how the person was infected, said Hipkins.

In response to a question from The Spinoff’s Justin Giovannetti as to whether the person was still being paid, Hipkins said MBIE worked very closely with hotels to ensure this. “Certainly our expectation is staff will continue to be paid and treated well if they contract Covid-19 or have to isolate.”

Asked by Giovannetti about there being only one vaccination centre for the families of border workers – located in East Tamaki –  Hipkins said more vaccination centres will be opening up in coming weeks. He said that the booking system for those seeking a vaccine is “new” and will be improved.

12.45pm: Watch – Bloomfield to reveal new details about MIQ Covid-19 case

It’s been a while since an unexpected Ashley Bloomfield presser, but today’s the day. Jacinda Ardern announced this morning that the director general of health would be fronting a 1pm briefing to provide an update on the latest Covid-19 case.

As reported earlier, the new Covid-19 case is a worker at the Grand Millennium managed isolation hotel in Auckland. We’re expecting the latest genome sequencing and contact tracing information shortly.

Tune in below:

On The Spinoff: ‘It’s a drop in the bucket and it’s a leaky bucket at that’

I know there’s a risk of overwhelming you with critical reaction to today’s housing announcement, but the sheer range of reactions indicates just how big the announcement actually was.

Right now on The Spinoff, our business editor Michael Andrew has chatted to Kiwibank chief economist Jarrod Kerr who said the policy changes simply “tinkered at the edges”.

Here’s an extract:

“It was pretty disappointing to be honest. Some of the ideas are good, but the size is pathetic. It’s a drop in the bucket and it’s a leaky bucket at that.”

Kerr said the tool with the most potential was the $3.8b infrastructure accelerator, which is intended to help local councils create the necessary services infrastructure – plumbing, roads, power – to unlock remote land for property development.

“I think the idea is great; we need to get funding into councils to sort out woeful infrastructure and get it to areas that need to be developed. But the fact that it only got $3.8b means that it’s going to be ineffective – $3.8billion spread across all our councils is a rounding error.”

To take some of the heat out of housing demand and curb property speculation, the government announced an extension to the bright-line test – which requires investors to pay income taxes on profits from selling houses they don’t live in – from five to ten years. The IRD will also be phasing out a provision over the next four years that allows investors to deduct interest payments from their income taxes.

Read the full piece here

11.30am: Housing announcement a ‘very small start’ – Greens

The Greens are underwhelmed by the government’s new housing package, describing it as “a very small start” that “doesn’t go far enough.”

The party’s finance spokesperson Julie Anne Genter said while the announcement is a step in the right direction, more should be done. “It needs to go further, faster to meet the scale of the housing crisis,” she said.

“We welcome the government identifying and closing a tax loophole which allows investors to deduct mortgage interest costs from their taxable income. This will go some way to discouraging property speculation.”

Genter said there are “more tools” in the government’s toolbox to stop accelerating the housing crisis. “We urge the government to remove the cap for the bright line test altogether,” she said. “A 10-year cap extension just kicks the can down the road a few years, while property speculators will hold on to their properties until the day after the bright line test is over.

11.00am: Latest Covid-19 case had received one dose of the vaccine

A Covid-infected managed isolation worker had receive one dose of the vaccine. To become effective, the Pfizer vaccine required two doses several weeks apart.

According to Stuff, Covid-19 response minister Chris Hipkins said there are very few locations of interest in relation to the case, and the situation is looking fairly low-risk.

He said the vaccine took a while to become effective and it doesn’t always stop infection.

We’ll know more at 1pm.

10.10am: Update on MIQ worker Covid-19 case expected this afternoon

In case you missed last night’s sudden Covid-19 news, here’s a quick debrief:

A worker at the Grand Millennium managed isolation hotel in Auckland tested positive for Covid-19 as part of routine surveillance testing. “The information available indicates the worker is asymptomatic. Further investigation is being undertaken,” the ministry reported last night.

We’re expecting more information on this case today at 1pm, with Jacinda Ardern confirming that Ashley Bloomfield will be fronting a press conference. We’ll have a livestream for you then and any other details as they become available.

9.40am: ‘Just bizarre’ – a property investor reacts to the housing plan

Andrew King from the NZ Property Investors Federation told the Herald the decision to eliminate interest rate tax deductions was “crazy”.

“What, so every other business in New Zealand can still claim tax deductions, but not landlords?” King asked. “You’re joking! This is just bizarre, it’s crazy.”

He also speculated that today’s announcement could make it harder for people to find a rental property. “This change will make it almost impossible for people to provide new rental accommodation. This means the only people able to buy rental properties in the future will be those with almost all the cash to pay for the property.”

9.10am: ‘Underwhelming’ – first reaction to housing announcement

It’s been out in the open for just 10 minutes, but the first expert analysis on today’s housing announcement is already in with  Bernard Hickey labelling it “underwhelming”.

In an update on his newsletter The Kākā, Hickey told readers that the package added “no new specified housing supply and gives landlords four years to adjust to the removal of interest as a taxable expense”.

He added: “There appears to be no increase in borrowing for Kāinga Ora to build beyond its existing plan for 14,400 new homes by 2024.”

Hickey said that the only major new spending is the creation of the $3.8 billion fund to help councils and developers with infrastructure, and to buy more land for housing. “The last Housing Infrastructure Fund ($1b) announced by the Key/English Government in October 2016 stopped making grants in late 2018 and was underspent by around $100m.”

While you’re here: check out Bernard’s new podcast for The Spinoff

9.00am: Bright-line test extended, more support for first home buyers, in major package announcement

Updated

The government has unveiled its long-touted housing package, confirming speculation the bright line test will be extended.

The package does not increase the first home grant available for those looking to purchase their first home, but it does increase the price cap for houses it can put towards.

The announcement includes:

  •  $3.8 billion fund to accelerate housing supply in the short to medium term
  • More New Zealanders able to access First Home Grants and Loans with increased income caps and higher house price caps in targeted areas
  • Bright-line test doubled to 10 years with an exemption to incentivise new builds
  • Interest deductibility loophole removed for future investors and phased out on existing residential investments
  • Government to support Kāinga Ora to borrow $2 billion extra to scale up at pace land acquisition to boost housing supply
  • Apprenticeship Boost initiative extended to further support trades and trades training

Read more: New housing plan promises help for some first-time buyers

Speaking at parliament, Jacinda Ardern – flanked by senior ministers Megan Woods, Grant Robertson and David Parker – reaffirmed her message that there is no “silver bullet” to fix the housing crisis.

“We are undertaking activity to both bring down the heat and the demand but also increase the number of houses being built in New Zealand,” she said. “We want our first home buyers to be able to get into the market … We do hope that over time this will make a difference, but we’re also clear: this is a complex issue in which there is no silver bullet so we are pulling all the levers we have to make a difference,” she said.

“Property investors are now the biggest share of buyers,” Ardern added. “First, we need to dampen property speculation. Last year, 15,000 people bought homes that already owned five or more. Second, we need to build more houses.”

Housing minister Megan Woods said the $3.8 billion housing acceleration fund will speed up the pace and scale of building.

“We’ve found out just how broken the system is for getting new housing, especially affordable housing, built. There is a clear market failure in getting new houses off the ground and a significant missing link is ready-to-build land with infrastructure in place.”

Finance minister Grant Robertson said today’s announcement will tilt the housing market in favour of first home buyers and away from speculators. “The average house in New Zealand owned is for seven to eight years. Extending the bright-line test for existing properties to just beyond this mark will catch more speculative investment while protecting investors who have just a single investment property which in effect, for many of them, is a form of retirement savings.

On removing a tax loophole that favours investors, Robertson said, “Cabinet has agreed to remove the ability for future property investors to deduct interest expenses from their taxable income. It will be phased out for existing investors over a four-year period.”

Ardern said: “Our view is that this will make a difference. We have taken an approach of using every lever we have. There is no silver bullet to the housing crisis.”

As was picked up by several reporters, Grant Robertson said last September that there would be no change to the bright line test. Despite explicitly changing the bright line test today, Ardern said the government had not broken Robertson’s pledge.

“I was too definitive in my comments in that [September] interview,” Robertson added. “But New Zealanders expect us to address the housing crisis and we are doing that today.”

Ardern added: “At that time we were just not seeing the rampant house price growth that we are now. In fact, during the last year we were told that house prices would come down, that potentially the housing market could collapse. We have seen the exact opposite. It is incumbent on us to make sure that we as a government are acting responsibly to try and support first-time buyers, to act on what we’re seeing in the market. So when the advice to us was that we should move on extending the National Party’s bright-line test, we’ve accepted that and we’ve done it.”

Asked how many new houses would be built from this package, Woods said it was “highly dependent on partnerships”, but modelling suggested 80-130,000 over 20 years.

In response to a question from The Spinoff’s Justin Giovannetti about why the government wasn’t targeting speculators in a more active way, Ardern said, “I don’t think anyone who operates in this space would consider this package to be passive. I think some may underestimate the impact of the tax deductibility changes.”

Watch below:

8.00am: No ‘silver bullet’ to fix the housing crisis – so what could we expect?

As reported in The Bulletin, the government is this morning set to unveil a long-touted housing policy that will reportedly “tilt the balance” of the housing market towards first-home buyers. However, as the prime minister warned yesterday: there is no “silver bullet” to fix a market that is continually spiralling out of control.

So what might we expect?

Bernard Hickey, in his newsletter The Kākā, said an extension of the bright line test seems likely as does higher caps for first home buyer grants. “The wild cards could be a tax on undeveloped land and changes to rules about how much interest landlords can claim as a taxable expense,” Hickey said.

Independent economist Michael Reddell told the Herald that an extension of the bright-line test is “almost a done deal”; a view also held by Infometrics economist Brad Olsen. He told RNZ he wanted everything thrown at fixing the crisis.

“There are no good ideas that should be left on the cutting room floor, we need to put all of them in practice to give ourselves the best shot of addressing the housing crisis in front of us,” he said.

National’s Nicola Willis said extending the bright line test would constitute a capital gains tax – a breach of the election promise not to introduce new taxes (although arguably an extension is not a “new” tax).

Hickey isn’t the only one anticipating an extension of first home buyer grants. Lesley Harris from the First Home Buyers Club said that banking criteria is often the problem for first home buyers.

Over on Stuff, Thomas Coughlan said the “smart money” remained on a bright line extension. “The big question is how long the test would be extended. Extending the tax out for 30 years – the length of the average mortgage – could fundamentally change the investment equation for many property investors, and essentially turn the test into a CGT in all but name,” he said.

Most of the above measures would speak to the demand side of the equation, but Ardern has also indicated today’s announcement will address supply. We’ll know more in just over an hour and, of course, we’ll have everything you need to know right here.

7.30am: Top stories from The Bulletin

Today’s the day in which we find out how the government intends to confront the housing crisis, which has been dragging them down ever since winning reelection. The problems are multifaceted – in some cases the crisis reflects a lack of supply, in some cases it’s about people living in inadequate or unsafe homes, in some cases it’s about people being unable to get on the ladder because of extreme price inflation – and of course all of those problems are connected. As such, the package of measures is expected to cover supply, demand, and access for first home buyers.

Why is the demand part important? Because right now, the housing market is fuelling a severe and possibly irreversible increase in inequality. Several days ago Newshub reported that the share of homes being sold to people who already owned property was at a record high. The long-term consequences of that are obvious – greater concentration of wealth in fewer hands, with all of the societal and economic problems that come with that. Our economic system is also currently stacked very heavily in favour of simply buying and selling houses, which does little to grow any real wealth.

Immense pressure has come on the government from all sorts of angles. Every party currently in parliament has their suggestions and prescriptions. Economists have weighed in. Even the Reserve Bank governor has been getting into it, telling One News that successive governments had failed, allowing the current situation to develop. The announcement will be made at 9am, so if you’re reading this after that, keep an eye on The Spinoff’s homepage for our live updates and coverage.


Not every announcement can be a total showstopper, but even by generous standards yesterday’s travel bubble news was underwhelming. In fairness, we weren’t promised we’d get a date yesterday, and that non-promise was duly delivered on. Our live updates reports the announcement involved the announcing of a further announcement of a date for the bubble to open, to be announced on April 6. Unbecoming sarcasm aside, there was also more detail about the criteria by which the government will make the decision, and further confirmation that outbreaks would likely require the travel bubble to close at very short notice.