Quarterly news

Final election results announced! Labour government sworn in

On 6 November, the new government led by Labour leader Jacinda Ardern was sworn in at Government House in Wellington, New Zealand’s capital.

New Zealand Governor-General Patsy. Reddy signed the Prime Minister’s warrant of appointment on the morning of the 6. Returning Prime Minister Ardern and her Cabinet ministers took their oaths in turn, formally establishing the new government. In the new Cabinet, Grant. Robertson became Deputy Prime Minister, Minister of Finance and Minister for Infrastructure, while Chris. Hipkins, the previous Cabinet’s Minister of Health, took up the newly created role of Minister for COVID Response. Nanaia Mahuta became Minister of Foreign Affairs, the first woman in New Zealand’s history to hold the role.

The New Zealand Electoral Commission announced preliminary parliamentary election results on the evening of 17 October. The governing Labour Party, led by Ardern, achieved a stunning victory in the 2020 election, winning more than half the seats and the right to form a government. This was Labour’s best election result since 1946, and the first time a single party had secured an outright majority since New Zealand adopted the MMP electoral system in 1996. New Zealand will continue under Labour’s leadership for the next 3 years. The main policies Labour released before the election give us a clear picture of the future government’s direction.

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Pandemic response:

• Require a negative nucleic acid test before entering New Zealand, followed by 14 days of mandatory isolation after arrival;

• Conduct regular routine testing of border workers;

• Continue rolling out CovidCard in isolation facilities and the Roturua community;

• Allocate 10% of isolation places to highly skilled workers from overseas (critical. overseas. workers), and invest NZ$12,000,000 to attract overseas investment.

Economic recovery, income and taxation:

• Invest NZ$3,000,000,000 in infrastructure construction, creating 20000 jobs;

• Launch the NZ$8,000,000,000 New Zealand Upgrade Programme, covering projects including schools, hospitals, clean energy, housing and transport;

• Allocate NZ$750,000,000 to support and upgrade New Zealand’s water infrastructure;

• Launch a NZ$1,100,000,000 Jobs for Nature fund, creating thousands of environmental jobs;

• Introduce a small business support package, extending the Small. Busines s. Cashflow (Loan) Scheme for a further 3 years and extending the interest-free period;

• Apply a personal income tax rate of 39% to annual income above NZ$180,000;

• Increase the minimum wage to NZ$20 by 2021.

Health:

• Increase paid sick leave from 5 days to 10 days;

• Provide mental health support for primary and secondary school students;

• Allocate an additional NZ$200,000,000 to reduce planned care waiting lists;

• Increase dental assistance for people on low incomes to NZ$1000, and fund an additional 20 mobile dental clinics.

Education:

• Invest NZ$600,000,000 to increase early childhood teachers’ pay;

• Build new schools and classrooms for 100,000 students, and upgrade 180 schools over the next 10 years;

• Expand free healthy school lunches to reach 200,000 students in 2021;

• Transfer school site planning powers from school boards to the Ministry of Education to maximise the use of existing school buildings;

• Offer free apprenticeships over the next two years, merge all polytechnics into a single vocational training institute, and retain the first-year fees-free scheme for returning students.

Housing:

• Provide NZ$350,000,000 for residential construction and continue building 18000 public and transitional homes;

• Support first-home buyers by continuing existing first-home policies;

• Support changes to rental market adjustment rules, including limiting rent increases to once a year.

Immigration:

• Review immigration thresholds to allow more workers to enter the country;

• Allocate 10% of isolation places to highly skilled workers from overseas;

• Establish a new investment attraction strategy to encourage targeted groups and high-value international investment into New Zealand;

• Work with primary industries to help them find the seasonal workers they need;

• Update partnership visas;

• Reconsider parent-category visas and lower the income threshold for applications.

For the Chinese community, alongside pandemic control, economic recovery and immigration policy, a leading concern is each party’s stance towards China. Relations between China and New Zealand have achieved several firsts among China’s relationships with developed Western countries. China is New Zealand’s largest trading partner,

with close ties in trade, society, education and culture. However, during the final week of campaigning, Prime Minister Ardern said while discussing China on Newstalk’s morning programme that New Zealand should diversify further to reduce its dependence on China.

New Zealand to become the world’s seventh country to legalise euthanasia

In the 2020 election, alongside voting for a party and an electorate candidate, New Zealand voters were asked to vote in referendums on two bills: the End of Life Choice Bill and the Cannabis Legalisation and Control Bill. The End of Life Choice Bill ultimately received support from 61% of voters and will take effect on 6 November 2021.

Currently, only Canada, the Netherlands, Belgium, Switzerland, Australia (Victoria only) and the United States (six states, including California) allow euthanasia. When the End of Life Choice Bill takes effect, New Zealand will become the world’s seventh country to legalise euthanasia.

The End of Life Choice Bill allows terminally ill patients who meet strict criteria to legally request medical assistance to end their lives. Patients requesting assisted dying (euthanasia) must meet the following conditions:

• Have 6 months or less to live;

• Be aged 18 or older;

• Be a New Zealand permanent resident or citizen;

• Have a significant and ongoing decline in physical capability;

• Experience unbearable suffering that cannot be relieved;

• Be able to make an informed decision about euthanasia.

In other words, mental illness, disability or advanced age alone does not qualify someone for euthanasia. The one-year wait before the legislation takes effect allows time to upgrade systems and establish a new oversight committee. Three new bodies or roles will administer and oversee the system:

• The Support and Consultation for End of Life in New Zealand (SCENZ) group will compile a list of doctors, psychiatrists and pharmacists willing to participate in assisted dying. It will also develop standards of care and advice on medical and legal procedures;

• The End of Life Review Committee will examine assisted dying reports to ensure the law has been followed throughout the process, and notify the specialist resident medical officer of any concerns;

• The specialist resident medical officer will carry out checks to ensure the entire process complies with the law, receive complaints and refer them to the relevant authorities, such as the Police or the Health and Disability Commissioner.

As the End of Life Choice Bill has already passed through Parliament, no further amendments are required. Future governments will nevertheless retain the power to amend it. The legislation will be reviewed after three years, followed by regular reviews every 5 years.

Cannabis legalisation blocked as majority say NO!

The Cannabis Legalisation and Control. Bill was opposed by 50.7% of voters, meaning it will not be implemented.

Prime Minister Ardern had previously said that, regardless of the referendum outcome, some issues cannabis legalisation was intended to address would receive attention, including referring cannabis users to health services rather than the justice system.

Ardern also said the government would closely monitor the medicinal cannabis scheme to see whether its standards were too high, leaving too many patients unable to access medicine.

An overview of the bill:

• Allow products to be purchased only from licensed and registered retailers at licensed premises, with online and remote sales prohibited;

• Prohibit cannabis use in public places, permitting it only at specially licensed premises or on private property;

• Control the potency of cannabis in existing products;

• Set the legal purchase age at 20;

• Prohibit advertising of cannabis products and require products to carry health information;

• Allow people aged 20 and over to purchase up to 14 grams of dried cannabis, or its equivalent, per day from licensed shops;

• Limit the amount that may be shared with others aged 20 and over to 14 grams of dried cannabis, or its equivalent.

The proposal does not cover medicinal cannabis, hemp, impaired driving or workplace health and safety, which are already covered by existing laws. Medicinal cannabis is already legal under the Medicinal Cannabis Scheme.

Officially signed! New Zealand joins the world’s largest trade agreement

New Zealand and 14 other Asia-Pacific countries formally signed the Regional Comprehensive Economic Partnership (RCEP) on 15 November. Trade Minister Damien O’Connor signed the agreement on New Zealand’s behalf in Auckland.

The world’s largest trade agreement finally came to fruition at a virtual ASEAN summit after 8 years of negotiations. Signatories include Japan, China, South Korea, the 10 members of the Association of Southeast Asian Nations (ASEAN), Australia and New Zealand. These 15 countries will create a free trade area covering nearly a third of global trade and economic output. New Zealand had already signed separate trade agreements with many RCEP signatories and established links with other countries through the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

International. Business. Forum trade analyst Stephen. Jacobi said that despite other agreements already being in place, RCEP could still benefit New Zealand’s overseas trade. Trade Minister Damien O’Connor believes signing the agreement will bring security and certainty to New Zealand exporters. One goal over the coming years is to gradually reduce tariffs across many sectors. Jacobi also noted that, following Brexit, New Zealand’s current trade focus is reaching agreements with the United Kingdom and the European Union. He said talks with the UK were progressing well, but negotiations with the EU were much more difficult. Further ahead, New Zealand will need to seek new trade opportunities in other countries and regions, such as Africa and Eurasia.

New Zealand Primary Industries Summit focuses on technological innovation and sustainability

From 23 November to 24, the second New Zealand Primary Industries Summit was held in Wellington, focusing on technological innovation and sustainability. Prime Minister Ardern attended.

Speaking at the summit, Ardern said primary industries were central to New Zealand’s economy and that the government would continue increasing investment in technological innovation and sustainability in the sector, creating jobs and business opportunities.

She also said New Zealand’s signing of the Regional Comprehensive Economic Partnership (RCEP) was hugely positive for its primary industries, particularly agricultural and dairy exports. New Zealand’s primary industries encompass agriculture, pastoral farming, forestry and fisheries, with dairy among the country’s most important economic pillars. The New Zealand Primary Industries Summit was first held in 2019. This year’s summit was postponed until November because of the pandemic and attracted hundreds of industry representatives, academics and officials.

Reserve Bank to reinstate mortgage restrictions as prospects for negative interest rates fade

The Reserve Bank of New Zealand said on 25 November that it would reinstate mortgage restrictions, known as loan-to-value ratio (LVR) restrictions, next year and work with the government to tackle the housing crisis. This reinforced the view that the central bank was unlikely to introduce negative interest rates.

Amid widespread concern over soaring house prices, New Zealand Finance Minister Grant Robertson said on 24 November that the government was reviewing housing market policies and had written to the Reserve Bank asking it to consider incorporating house prices into its policy remit.

“We intend to work quickly with the government in a constructive and open way to assess long-term solutions to excessively high house prices,” Reserve Bank of New Zealand Governor Adrian Orr said at a press conference. This is also believed to be the Bank’s response to the government’s letter. Asked about negative interest rates, Orr said the Reserve Bank of New Zealand was prepared to introduce them if necessary. However, ANZ chief economist Sharon. Zollner said in her report: “Given the news now emerging, it is increasingly likely that the Reserve Bank of New Zealand will not adopt negative interest rates.”

New Zealand’s fertility rate hits a record low!

The latest quarterly data from Stats. NZ shows that the ratio of births to women of childbearing age is now 1.63, well below the 2.1 needed to sustain population growth.

This also marks New Zealand’s lowest fertility rate on record. Without immigration, New Zealand’s population would shrink, like those of other countries experiencing negative growth. In the year ending in 2019, in September, more than 59,000 babies were born in New Zealand.

Over the same period this year, births fell by 1300.

Stats NZ senior demographer Kim Dunstan said New Zealand’s declining birth rate was not a short-term issue, but a trend that had persisted over the past decade.

“Fertility has been declining since 2010, when women had an average of 2.2 children each.” He believes the decline is driven more by social and economic factors than biological ones.

Rising living costs and housing shortages are likely contributing factors. This is reflected in the data, which shows the largest fertility decline among those under 35, while fertility among older women has remained largely unchanged.

“Fertility rates among women aged 35 to 50 remain relatively unchanged compared with 10 years ago,” Dunstan said.

A study by New Zealand’s National. I n s tit u te. ofDemographic. and. Economic. Analysis also shows a sharp fall in the latest birth rate compared with the same period last year.

Dr Natalie Jackson of the institute noted that, during the pandemic, many women of childbearing age (15–49) were unable to leave New Zealand, while many previously living overseas had returned. A larger female population, combined with declining births, therefore caused the fertility rate to plunge.