MEDIA

Wellington, 22 April - No matter how seductive it sounds, central bank funding of the additional government spending on Covid-19 would set New Zealand on a dangerous path, according to a new report by the New Zealand Initiative. The report, Deficit spending in a crisis: why there is no such thing as a free lunch, highlights some concerning ideas from both the government and the Reserve Bank about expanding the money supply to help pull New Zealand out of the Covid-19 economic crisis. Read more

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Wellington, 14 April - The New Zealand Initiative welcomes comments from Finance Minister Grant Robertson today before the Epidemic Response Committee about the need for a principles-based approach to what businesses will be able to operate at Alert Level 3. New Zealand Initiative Executive Director, Oliver Hartwich said: “The essential/non-essential categorisation of businesses or business activities at Alert Level 4 was cumbersome, bureaucratic and difficult for both businesses and consumers. Read more

Wellington, 9 April - A new report Quantifying the wellbeing costs of Covid-19 by the New Zealand Initiative shows how an economic hit of about 6.1% of GDP would be justified if it meant saving 33,600 lives during the Covid-19 pandemic. The figures, compiled by research fellow Dr Bryce Wilkinson, were generated by updating a Ministry of Health model from 2017 and plugging in the available data on Covid-19. Read more

Wellington, 8 April - Singapore has set a high standard for dealing with Covid-19 and despite its decision to enter a lockdown this week, New Zealand can learn a lot from the country, according to a new report Lessons from abroad: Singapore’s Covid-19 containment model from the New Zealand Initiative. Although Singapore has enacted a “circuit breaker” lockdown to defend against some new sources of coronavirus, it could make this choice due to its earlier efforts to identify, control and contain the pandemic threatening its territory. Read more

Wellington, 7 April - The Government’s current wage subsidy scheme may insufficiently protect Kiwis from the worst effects of the Covid-19 crisis, according to a new report from the New Zealand Initiative. Comparing New Zealand with Australia and Canada, the report Relief measures: comparing Covid-19 wage subsidy schemes by Dr David Law shows significant differences between the three in the construction of wage subsidy schemes. Read more

Following the release of his report Short-time work to maintain employment, David Law discusses the benefits of short-time work with Kerre McIver on Newstalk ZB.

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Wellington, 3 April - If New Zealand can’t recover from the economic “heart attack” of self-imposed lockdown, it could face GDP losses at Great Depression levels, according to a New Zealand Initiative research note. While the Covid-19 pandemic has not ruined New Zealand’s economic capabilities, the lockdown has forced the country into an unprecedented productivity pause which the Initiative’s senior fellow Bryce Wilkinson says could slice away about $10,000 per household this year. Read more

More than 2000 New Zealand businesses have annual revenues over $80 million. That is the baseline for "tailor-made" assistance that Finance Minister Grant Robertson has promised to provide to larger firms that are suffering from the coronavirus pandemic. Read more

Wellington, 1 April - Rushing to deal with new vaping legislation during an unprecedented economic lockdown is not just folly, it is anti-democratic, according to a public submission by the New Zealand Initiative. While most businesses and public services are shut down as a result of the Covid-19 pandemic, the Government has retained its deadline for public submissions about its tabled Smokefree Environments and Regulated Products (Vaping) Amendments Bill, due today. Read more

Wellington, 31 March - The New Zealand Initiative welcomes the Government’s plans to ramp up testing for Covid-19 beyond 3500 per day to get the country closer to reopening its economy. Prime Minister Jacinda Ardern told a press briefing this afternoon the Government has completed approximately 21,000 tests for the coronavirus Covid-19 already and is on track to issue 3500 tests per day. Read more

Eric Crampton talks to Mike Hosking on Newstalk ZB about restarting the economy after the Covid-19 lockdown. Read more

Wellington, 27 March - The pandemic-induced recession creates a strong case for the Government to support struggling workers with targeted assistance, rather than a Universal Basic Income (UBI), according to the new policy paper Stay on Target by The New Zealand Initiative. As the Government searches for fresh and innovative ideas to prepare for the worst economic effects of shutting down the country’s commerce over four weeks, it has tentatively proposed the introduction of a universal basic income scheme. Read more

Wellington, 26 March 2020 – Mixing the New Zealand Initiative’s research with ideas from dozens of the largest Kiwi firms, the think tank has produced a comprehensive touchstone document on the best range of Covid-19 policy responses. Written by the Initiative’s chief economist Eric Crampton, with research assistance from Leonard Hong, Effective Treatment: Public policy prescription for a pandemic warns that without sound, quick and careful policy adjustments implemented by the Government, New Zealand risks slipping into a deep recession. Read more

Wellington, 26 March - Asking the public for submissions on pending legislation while the country is in pandemic lockdown risks making a farce of democracy and unnecessarily distracting the Government, according to a new policy paper by the New Zealand Initiative. The business of government must go on, said the Initiative’s chief economist Dr Eric Crampton, but politicians can afford to put less urgent matters aside for the time being. Read more