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Johnpee

238 comments · +2,785 / −1,228 · rank #539 of 40,276

If the government needs to be paying a winter energy top up to low income people, isnt this just a monumental failure of the free market from nearly every angle ? Firstly the free market has resulted in these crazy electricity prices, secondly the free market has led to the supermarket duopoly hoovering up twice what they should be out of NZ consumers (leaving them poorer than they shoudl be), and thirdly, its the free market that isnt paying people enough to live on.And no . . . Im not a socialist . . . I can just see that things are very broken.

+50−11

Best column of yours Ive read.Luxon presides over less customer satisfaction & more accusations of gauging of any previous AirNZ CEO ever. Also, as CEO of a monopoly, how clever does he need to be ? I would argue not very, and I would further argue that he isnt.As a business owner myself, I would completely concur that he doesnt even come close the representing me !

+32−4

So here are sone facts:1. An income to value ratio of greater than 3 is considered (internationally) to be edging towards unaffordability.2. At 5 its seriously unaffordable.3. NZ are sitting at 8 or more4. But it gets worse. Those international numbers are where they pay 2.5 to 3.5% interest . . . we pay 5%5. They also only pay half what we pay for groceries & they also enjoy myriad other cost of living advantages that we dont (decent public transport etc)So . . .. those who think that a crash isnt coming, are just being being wilfully blind. WAKE UP people.

+32−4

Its not just getting a job thats hard for these folks . . . affording to live is almost impossible as well. Everyone talks about the high cost of housing, but thats only one of the many cost hurdles to over come in NZ. The price of goceries is just absolutely criminal (about twice what they should be) energy prices are crazy, fuel, bank interest & fees . . you name it, we pay above the odds for it.

+30−3

Sold our house ourselves a few years ago. Agencies told us wed get maximum of $x less commission. We sold it in 4 weeks ourslves for $x + 60,000 and no comission so we were $80k + better off. be Come on people . . . . be brave.

+28−4

Oh boo friggin hoo. Property investors seem to think they are such an important damned part of the housing market and that if it wasnt for them, thered be nowhere for tenants to live. That might be the case if these people actually built houses to rent out but they dont . . . they buy existing houses & then expect tenants to pay for their speculative folly.These people need to realise that its a business and that as with any business, that comes with responsibilities and obligations.

+45−22

Why do we keep hearing that the cost of living is so high in NZ but noone see the elephant in the room ?The damned supermarkets are absolutely screwing us, yet we blame Fonterra for the high price of milk. Fruit & vegetables are a horrendous price yet we blame the weather. Wake up people . . . . . its these fat cats that are creaming it at every turn. Personally I dont know how Progressive & Foodstuffs can sleep at night given that people everywhere are struggling and they continue to cynically exploit their duopoly position.

+20−0

I wonder how it would stack up if we removed the crazy markups that NZ retailers put on PV panels & associated bits & pieces. Most things can be purchased for less than 35% of what we are expected to pay in NZ . . . and thats after freight & GST has been added. Then theres the how much do we think we can get away with charging model for installation, which further erodes any business case.The reason things like this dont stack up NZ is because we are treated like idiots by the industry who seem hell bent on extracting too much on every transaction.Actually I know how it stacks up when this stuff is priced properly & the answer is very well thank you. You just need to use your brain.

+23−3

Pip is a force of nature, I mean she just gives it everything shes got and totally gives a damn,The fact that she gives a damn and that fact that he notices, are both fantastic qualities . . . . and more rare than you might imagine.Speaks volumes for both peoples integity.

+24−5

Its got to be remembered here that the engineers arent throwing their toys here because Air NZ wouldnt give them a rise, but because AirNZ is proposing an effective pay reduction. And this in the face of record high living costs already.I totally support the engineers on this one . . . . and yes Id potentially be affected. NZers need to stop rolling over for these parasites and start standing up for themselves because the country is becoming unliveable for too many people.

+24−7

I would sheet the blame fairly and squarely onto the supermarkets. I simply cant believe that they have been allowed to get away with what they get away with for so long. Our commerce & competition laws are a joke.

+17−0

Were shockers. I see SO many people just cruising along in the outside lane without the remotest consideration for following motorists (and theyre usually not overtaking anyone either). Then theres general lack of common courtesy . . . if you indicate to change lanes, people seem to deliberately close the gap so you cant.Thern theres the ones that think they have the right to pass all the stationary traffic in the left hand lane when the traffics blocked for any reason by cruising down the right hand lane to the merge spot . . . . . . . unbeleivably loathesome behaviour.Im ahsamed of NZ drivers whenever Im driving people from overseas . . . . their behaviour is mind boggling.

+20−3

I gotta agree that Israel and Israelis dont dont do themselves any favors. Their arrogant treatment of anyone who dares to question their behaviours & actions towards whoever disagrees with them, and the almost universal disdain they engender towards themselves as tourists . . . .really makes me wonder. I certainly have no desire to ever travel there.

+26−9

As long as most of New Zealanders income is gobbled up by necessities (groceries, rent/mortgage, power, fuel) then this will remain the case because theres no discretionery spend left over for any other industry to develop / flourish. The new businesses / industries we need to improve our wages & standard of living are starved of investment capital because all Kiwis money is tied up in property and even if they did get the necessary capital theres no market for them because everyones money has already been spent on necessities. Were very broken Im afraid.

+19−2

Sorry to burst your bubble, but were not the lucky country by a country mile. We have amongst the lowest wages in the OECD, the most expensive groceries & cost of living on the planet, high house prices, high interest rates, and over the last 20 years, massively increasing inequality. Hardly what makes a lucky country,.Best you start doing some travelling with your eyes open.

+22−6

Surely heads MUST roll for such a monumentally incompetent move. I just dont understand what the motivation or ratioanale for these changes were in the first place. The age old mantra of :If it aint broke . . . . . definitely springs to mind, but perhaps Im missing something.We can only hope that its not too late to restore the patronage that has undoubtably been lost as a result of this shambles.

+15−0

You talk about free market. One of the first principles if a free market is seemless entry & exit for all players and unlimited choice for buyers. Wherever these conditions do not exist, then its not a free market. NZ is far from a free market for food & groceries.

+14−0

Yep . . . those Central Otago New Worlds are crazy expensive. All owned by the same family too.

+13−0

From what I can see, NZ businesses have a gross margin expectation far in excess of whats acheivable overseas. They can get away with it in NZ because theyre be often monopolies (or close to it) but fail miserably when theyre faced with anything resembling a competitive situation.

+14−1

Unfortunately they follow the (jurassic) doctrine of increasing shareholders wealth my any means as their driving force. Unfortunately this practice usually results in aggressive financial targets for executives and focusses the enterprise on short term (tactical) behaviours such as quarterly revenue targets, instead of setting the business up strategically for the long term.You see it over and over again, that instead of embracing disruptive technologies and business models (which may canibalise short term revenues but ensure long term viability) companies like this will defend and block innovation, and/or try to charge legacy prices for cheap new products, until its way too late.Maybe its deliberate . . . milking the cash cow in the short term may have delivered them more profit than embracing change would have over the long term. Who knows.

+12−0

Do clowns like this not understand that if low income people have more discretionary cash, then theyll spend it on goods & services . . . . . . and who benefits from that ? You got it . . . businesses. Conversely if wealthy people get extra, they go & buy another house with it, which simply exacerbates the bad situation the poor are already in, and does nothing positive for the economy (or socoety).The current race to the bottom helps no-one.

+29−17

Recruitment agents . . . . . dont get me started. Its very rare to find one who understands even the role theyre recruiting for, let alone the suitability of the individual candidates for those roles. Remember these people are commission sales reps . . . . theyll always take the easiest route to that commission cheque & that means superficiality reigns supreme.

+11−0

What I struggle with is the rationale for these spot price hikes. Why should they go up by any more than the additional cost of generation ? Its kind of like were playing at being some global energy spot price market and pretending that we have this massive global shortfall of supply against demand. But were not . . . were little old NZ with a couple of generation companies who need to switch on sone less efficient generation capacity from time to time. Looks a lot to me like theyre using the old extra margin through confusion / obfuscation trick. We need to get some transparency into these spot prices & then some regulation to stop the cowboys.

+11−1

Big (any business) will do whatever is required, no matter how immorral, unhealthy or ethically questionable to achieve their profitablility goals.They can do it because their employees are blinded by ambition / desire to succeed, and also because there is a degree of inherent insulation available to both parties that they feel they can hide behind.Big tobacco / alcohol / oil / you name it are masters at it.

+12−2

Will commentators please stop referring to Air New Zealand as The National Carrier. That title infers a degree of of social responsibilty to the nation . . . . something Air New Zealand definitely doesnt have.

+12−2

Queenstown is meant to be a lifestyle kind of place, but what sort of lifestyle do you get with the sort of stupid house prices (and rents) you need to pay to live there, all while receiving minimum wage and having to pander to wealthy part time residents & tourists ? Doesnt sound like much of a lifestyle to me.

+12−2

Unfortunately because hospitals are so under funded they need to try and scrape up any bit of extra from whereever they can get it. If that means charging whatever they can get away with for parking, then so be it. I hate it too, but can see why they do it.One thing to be thankful for in this instance is that there isnt a big red Wilson Parking sign . . . . paying money to those parasites when visiting ick relatives would definitely be much more painful than supporting a hospitals cashflow directly.

+13−4

Really ? Fantastic ! This company is right up there (or should that be down there) with Foodstuffs & Progressive in their gauging. Ive gone from being a fiercely loyal Air NZ customer to someone wholl use anyone BUT AirNZ in the space of a few short years.

+10−2

Using bags isnt exactIy environmentally friendly, so just scoop it up and chuck it into the middle of some vegetation where itll biodegrade /wash away without anyone standing in it (eg. into flax bush or similar). Mentioned this in another comment thread a few months back and was seriously abused for it. No pleasing some people.

+17−9

Enjoyed your post . . and totally agree.I got out of the corporate rat race because the more senior you get, the more you be have to go against any set of ethics or morals that were instilled growing up. Some people can hold their nose & carry on climbing (or perhaps just dont have any ethics or morals in the first place), but I couldnt & so got out. Never been happier.

+8−0

To anyone who pays for their own regional flights, Air NZ is far from a good corporate citizen. This is yet more evidence. I always feel seriously angry that they then have the nerve to call themselves the National Airline.

+11−4

Totally agree. I hope its Costco. I completely resent how the two supernarket chains have cynically gouged just about every bit of discretionery spend out of the NZ economy over the years. Lately theyve become even more brazen which, given that so many people are really struggling, is just completely unforgivable.

+7−0

Its not just electricity prices . . . New Zealand has a competition priyblem full stop, where we pay above the odds for nearly everything.We obviously struggle with getting effective competition to flourish in most of the important sectors, so we need to beef up our Com Com with some decent tools & law changes to make things work better for consumers in NZThe ComCom needs to move from being an inneffective observer / overseer into being an active competition stimulator / replicator with teams assigned to industry sectors tasked with obtaining transparency across supply chains, and the power to take action where necessary. For example breaking up vertical integration where it impacts competition, or regulating margins to global averages in sectors where competition is struggling to flourish.Something needs to happen !

+8−1

Of course itll happen here . . . bubbles always burst eventually. Stupid house prices combined with low pay, high interest rates, crazy grocery & energy prices . . . somethings got to give. In fact several things have to give . . . New Zealand is becoming unliveable.

+10−3

All this will do is remove public spaces . . . never to be replaced, and perpetuate the concrete jungle. And itll only provide spaec for a relatively small number of additional dwellings . . . . wont even scratch the surface really.Nope Phil . . . . youre just going to have to bite the bulley, ignore the NIMBYs and change your zoning to allow higher density living.

+7−1

There could arguably also be a case for nationalising housing finance (mortgages) & maybe even insurance . . . theres little benefit to consumers from them being private.We also need to regulate wherever else the market isnt working for consumers . . . the supermarkets spring immediately to mind, but theres market failure in most major sectors in NZ

+5−0

So let me get this straight . . . you dont think that a capital gain is income then ? Were not talking about taxing your capital here, is the appreciation of those assets over time (which is a form of income) that is taxed. Can you please explain your logic because it completely escapes me.

+10−5