ANNUAL REport 2019 THE NEW ZEALAND INITIATIVE — i The New Zealand Initiative Annual Report 2019 © The New Zealand Initiative 2020 Published by The New Zealand Initiative PO Box 10147 Wellington 6143 New Zealand www.nzinitiative.org.nz Designed by Angela Whitney, www.angelawhitney.com Printed by True North New Zealand Ltd Cover photo: Oliver Hartwich / Villa Maria Estate, Auckland (2019) ii — THE NEW ZEALAND INITIATIVE Contents Foreword 03 Highlights of our year 30 What we stand for 04 What others say about us 42 Our principles 05 Our team 44 Our research & submissions 09 Our board 47 Our engagement 18 Our members 50 Engagement with members 19 Events 21 Media 28 THE NEW ZEALAND INITIATIVE — 01 “The New Zealand Initiative does remarkable work in raising rational discourse and critical thinking. Its contribution is incredibly valuable for society, especially one which focuses on growth, development and prosperity. The provocation of ideas by the Initiative puts New Zealand on the map as a global thought leader and creates a breeding ground for important conversations to tremendously advance New Zealand as a whole.” Suzi Jamil | Owner and Director, Think Inc. Foreword The Prime Minister called 2019 “the year of Given these widely shared goals, we are We also organised our business delegation delivery”. Later this year, voters will deliver most disappointed with the speed of reform visit to Denmark and Sweden, which saw their verdict on that statement and promise. in New Zealand. We can and should do three dozen New Zealand business leaders much better. learn about the Scandinavian economies. At the Initiative, it was definitely a year of We hosted events with domestic and delivery for us. Over the year, we produced To that end, in our published work international experts, including former a record number of reports, research notes over 2019, we highlighted practical Canadian Prime Minister Stephen Harper and submissions. Our team has continued solutions to some of New Zealand’s most and US psychologist Jonathan Haidt. to focus on the big issues that really matter pressing challenges. Our reports on to the prosperity of New Zealanders. energy policy showed how we can achieve At the Initiative, we are proud of what a low-emissions future by using market our team has delivered. We look forward Our views on these coincide with mechanism. On transport policy, we laid to informing New Zealand debates in Government’s goals. out how congestion charging can un-clog this election year and in the future. Swimmable rivers, sustainable freshwater our cities. Our analysis of education data management, making housing affordable, revealed how our schools are performing better education for all our children, and how they could learn from each other. significant reductions in child poverty, The Government has been receptive to reducing carbon emissions, improving our views. We can see that our ideas on transport and supporting regional economic competitive land markets are informing development: These are neither left-wing emerging reforms around the RMA. nor right-wing, conservative or liberal, Meanwhile, the Government engaged with progressive or traditional objectives. us on the use of school data to improve These are the things all New Zealanders the performance of the education system. Roger Partridge Dr Oliver Hartwich want and deserve. Chairman Executive Director THE NEW ZEALAND INITIATIVE — 03 What we stand for The New Zealand Initiative What truly sets us apart is Our vision is to contribute to is a unique organisation, and while most think tanks are a prosperous, free and fair not just by New Zealand only loosely affiliated with society with a competitive, standards. their donors, we take the open and dynamic economy. opposite approach. We are a non-partisan think We believe our goals and tank, we are an association We are proud to have values are similar – if not of business leaders, we are some of New Zealand’s identical – to what most an evidence-based research highest profile business New Zealanders want to institute, and most of all we leaders among our diverse see achieved: are independent. We believe membership and who bring these are not contradictions. a wide range of interests, experiences and ideas. A good Affordable An open A free and The protection Sound public A stable education housing economy democratic of our natural finances currency system society resources and heritage 04 — THE NEW ZEALAND INITIATIVE Our principles The challenge in public policy is often not to define what you want to achieve, but to find ways of achieving widely shared goals. Every good think tank needs solid foundations. These are ours: We are credible. We are evidence-based. We are non-partisan. We are independent. We are committed. Our research is based Our recommendations We engage with We promote good public Our members and the on a sound theoretical are supported by parties from across the policy, not the interests of Initiative team share the framework and is empirical, and often political spectrum. individual businesses or vision to build a better rigorously peer-reviewed. international, evidence. industries. New Zealand. THE NEW ZEALAND INITIATIVE — 05 2019 radio and television 12 277 appearances Initiative events opinion articles 71 33 published speaking held, hosting engagements (including 140 Insights pieces) 32 speakers 1 research business delegation 269 interns direct media to Denmark with 3 mentions 37 research reports international & submissions speakers 24 published 4,656 engaged Insights readers 4,382 2,642 210,045 Facebook likes Twitter followers YouTube video views 06 — THE NEW ZEALAND INITIATIVE THE NEW ZEALAND INITIATIVE — 07 OUR RESEARCH & SUBMISSIONS Our research Our report restarted the discussion about He found that the proposal was KiwiBuild in various media outlets with conspicuous by a lack of exemptions and KiwiBuild: headlines like “Phil Twyford defends concessions around business investment, Twyford’s tar baby KiwiBuild after damning report”. Bryce so a full rate would arguably qualify Dr Bryce Wilkinson spoke about his research on TVNZ New Zealand’s CGT regime as one of Breakfast, and Radio New Zealand, the harshest in the world. And given Newstalk ZB, Newsroom, Stuff, and New Zealand’s recognisably low-income The New Zealand Herald also covered it tax thresholds by international standards, In January, we released our first research extensively. The ACT Party supported a new CGT would disproportionally hit note of 2019 written by Dr Bryce the report with a press release. middle-income earners already struggling Wilkinson. to invest for retirement. Bryce examined the public Newstalk ZB and Magic Talk interviewed policy justifications for KiwiBuild Patrick about his policy point. He also – the government programme to build wrote about his findings in The National or deliver 100,000 homes in 10 years – The pitfalls of CGT Business Review and our weekly to find they do not stack up. Dr Patrick Carvalho Insights newsletter. KiwiBuild has no clear public interest rationale and it won’t increase the housing stock enduringly. Bryce #localismNZ: explained why it makes no sense for In February, we released our first policy Bringing power taxpayers to subsidise KiwiBuild homes, point – a two-page policy analysis – on to the people but neither does it make sense for the the Tax Working Group’s proposed Ben Craven, Jack government to commission houses on broad-based top rate of 33% capital Goldingham-Newsom an unsubsidised basis. gains tax (CGT). and Dr Oliver Hartwich The report emphasised what is really Research Fellow Dr Patrick Carvalho With New Zealanders’ attitudes needed to solve New Zealand’s housing argued in The Pitfalls of CGT that towards devolved government shifting, affordability problem: decisive action the headline rate would immediately many believe now is the time to to increase land supply for residential push New Zealand to the top of the explore localism. housing and to reduce regulatory red international CGT rankings among tape to reduce construction costs industrialised economies, just behind Devolving New Zealand’s government across the board. Denmark and Finland. will enable us to deliver a programme THE NEW ZEALAND INITIATIVE — 09 of services tailored to the citizens living Since renewables already account for When the government announced it had in each city. It will allow the members of 83 percent of our electricity, achieving an accepted the ICCC’s recommendations, that city to determine their own affairs additional 17 percent may not sound like Matt said: and govern their communities as they see a big challenge. The Interim Committee is directly fit. Our democracy will be kicked back However, Matt Burgess showed in his responsible for New Zealand to life and everyone will be able to fully report Switched On! why the 100 percent avoiding an environmental participate in community affairs. renewable target is an ambitious one. and economic disaster in the #localismNZ explained the rationale To achieve it while keeping energy 100% renewables policy. The behind localism, responded to commonly affordable and reliable requires careful Government’s decision to allow an heard objections, and outlined how policy thinking. independent committee to evaluate unusual New Zealand’s centralism its flagship environmental policy, The report identified what New Zealand is when compared internationally. then make changes in response should do – and avoid – to transition to a New Zealand’s councils have limited fiscal to their findings, is exceptional. renewable energy future. autonomy. Their mandate is also much more restricted than local government Matt discussed his findings with in other parts of the world. Mike Hosking on Newstalk ZB, in an opinion piece for The National Business Dr Oliver Hartwich, along with Ben Tomorrow’s Review, and in our weekly Insights Craven and Jack Goldingham-Newsom, Schools: newsletter. His report was referenced made the case for localism by spelling Data and evidence in several other interviews, including out how much better New Zealand could Joel Hernandez an endorsement from Fraser Whineray, be by adopting devolution and being Chief Executive of Mercury.