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Insights 36: 25 September 2026
Podcast: Free to Disagree with Dr Oliver Hartwich & Damien Grant on Nicky Hager's new book
 
New Research Note: Breaking up is hard to do... and a bad idea, by Dr Eric Crampton
 
Newsroom: Dr Oliver Hartwich on how Europe's Russia warnings grew louder yet less precise

Why we spoke up
Dr Oliver Hartwich | Executive Director | oliver.hartwich@nzinitiative.org.nz
Over the past couple of months, we have heard mounting alarm from business leaders about this election campaign. They are asking whether New Zealand still welcomes people willing to invest here. The concern comes from a broad range of industries.

Those conversations prompted an open letter, now signed by 51 business leaders. It asks all political parties to respect private property and the agreements people make.

Politicians have proposed forced business break-ups, state takeovers and rewriting existing contracts. Together with increasingly hostile rhetoric towards business, these proposals suggest that ownership is secure only as long as politicians find it convenient.

People struggling with grocery bills, rent or the cost of seeing a doctor deserve serious answers. Their frustration is understandable. Politicians should tackle the root causes of these problems.

Instead, they are increasingly resorting to blaming business. Such scapegoating is easy. Presumably it polls well. Removing the obstacles to building new homes, increasing competition or generating additional electricity takes sustained work.

Our letter calls for the same rules for everyone. Consumers deserve protection against dishonest conduct and illegal restrictions on competition. Enforcing those rules is part of maintaining a rules-based economy.

So is restraining political power. Property rights mean that what you lawfully own is yours. Freedom of contract means people can make lawful agreements and rely on them. Neither should be vulnerable to politicians claiming that overriding them will make somebody else better off.

Nor does compensation repair the damage to our reputation. Investors elsewhere see the precedent. They do not have to invest in New Zealand. Neither do New Zealanders.

Even a threat that never becomes law can delay a factory or a new power station. Jobs that might have been created may never appear. Customers miss out on new competitors.

Less investment also means fewer opportunities for the higher wages that families so badly need. The cost falls well beyond the owners of the businesses being targeted.

Our letter asks politicians to withdraw these proposals and get on with work the country needs: repairing public finances, improving education and delivering reliable infrastructure. An ageing population and a more dangerous world make that work urgent.

We need conditions in which people can build homes, expand businesses and hire staff with confidence. Those who signed are ready to work with any government towards that end. The next generation should inherit a country where people are confident enough to build something that lasts.

You can read our open letter here.

Nothing endures but change
Dr Michael Johnston | Senior Fellow | michael.johnston@nzinitiative.org.nz
Last week, Labour announced its flagship education policy for the election. If it wins in November, it will introduce a new statutory authority, called the Independent Council for Curriculum and Assessment (ICCA). The New Zealand Principals' Federation first proposed the idea in August.  

The ICCA would oversee future development of school curricula and national assessment systems. Labour’s education spokesperson Ginny Andersen said, “educational professionals should be determining what children learn and how they learn, not the minister of education.”

Andersen’s push to get politics out of education sounds reasonable. Teachers and principals are exhausted by what must feel like constant change in lockstep with political tides.

No sooner have schools adapted to a new initiative, it would seem, than it is abolished or replaced. New Zealand’s three-year electoral cycle does not help.

If it is not the curriculum that is changing, it is the qualifications system, or initiatives like National Standards. That scheme was introduced by the Key government, poorly implemented, and then terminated by the Ardern government.

The proposed ICCA might seem a sensible way to bring the cycle of change to an end. It would comprise experts and make decisions based on evidence. Some questions about curriculum design can be addressed with evidence. Others have more to do with values.

That makes a curriculum an inherently political document. Setting up the ICCA would not change that.

How localised should the New Zealand curriculum be? How deeply should mātauranga Māori be embedded? What balance should be struck between New Zealand history and world history?

Voters should have a say on questions like these. New Zealand’s public schools do not belong to experts, nor to teachers or principals. They belong to the families of the young people they educate.

Elected ministers, not experts or education practitioners, represent families. If ministers cannot influence curriculum content, voters cannot either.

Then there is the question of how experts would be appointed to the Council. If ministers were responsible for appointments, the group would itself be political. Even if appointments were made by the Ministry of Education, ministers would exert substantial influence.

Labour would face temptation to stack the Council with its ideological fellow travellers from the teachers’ unions and the Aotearoa Educators’ Collective. If it succumbed to that temptation, the political wheel would roll on.

Then, an early casualty of the next National-led government would be the ICCA itself.

Tackling the cost-of-living crisis through comparative analysis
Paul Melville | Senior Fellow | paul.melville@nzinitiative.org.nz
This election, the standout issue is the cost of living.

It’s all the focus groups want to talk about.

Petrol, food, insurance, electricity, rates. The cost of everything has gone up and something must be done.

Looking back to 1990, everything was cheaper. Something has clearly gone wrong.

The party that can do the most to bring down the price-of-life should therefore win on November 7th.

NZ First would buy back the BNZ and break up the gentailers. National wants more supermarket competition. The Greens want a government-owned supermarket and will make university fees free. Labour will make GP visits free, cap the price of public transport and make it illegal for big companies to charge too much.

These ideas all sound good to focus groups. But how do they compare to policy in a country that has truly tackled the cost of living?

Which country has done the most to tackle costly life and what can we all learn from it?

There is no clear number one, but, by some measures, the answer is Nigeria.

A haircut can cost NZ$3, a night's accommodation NZ$20 and lunch can be picked up for NZ$2.

So how can we achieve Nigeria’s cost of living?

Nigeria has privately owned supermarkets, banks and hairdressers, so perhaps public ownership may not be the secret. GP visits are not yet free.

There are, however, other policies worth investigating.

Nigeria's minimum wage is about 50 New Zealand cents an hour, much lower than ours. Nigerian employment law provides considerably fewer protections for workers. The rules that regulate the environment and housing are a far cry from New Zealand’s RMA.

A sufficiently determined government could find opportunities to tackle the cost of living by copying some of these policies.

There is just one awkward data point for this international benchmark.

More than 40 percent of Nigerians live below the World Bank's extreme-poverty line. New Zealand's GDP per person is about 45 times Nigeria's.

Having very low prices does not necessarily make things affordable.

This creates a problem for our cost-of-living strategy. A NZ$3 haircut is not cheap if you earn 50 cents an hour.

There is another way to make things more affordable, of course. We could become more productive and earn more.

Unfortunately, "productivity crisis" hasn’t yet shown up in the focus groups.

So, for now, back to the supermarkets.

 
On The Record

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