ANNUAL REport 2020

NZIJ0195_Annual_report_2020_COVER.indd 1-3 9/03/21 3:36 PM The New Zealand Initiative Annual Report 2020 © The New Zealand Initiative 2021

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

NZIJ0195_Annual_report_2020_COVER.indd 4-6 9/03/21 3:36 PM Contents

Foreword 03 Highlights of our year 24

What we stand for 04 Our team 38

Our principles 05 Our board 41

Our research & submissions 06 Our members 43

Our engagement 16

Engagement with members 17 Events 18 Media 22

The New Zealand Initiative — 01

NZIJ0195_Annual_report_2020.indd 1 9/03/21 4:16 PM 02 — The New Zealand Initiative

NZIJ0195_Annual_report_2020.indd 2 9/03/21 4:16 PM Foreword

The year 2020 was one none of us will notes, essays and books, we made relevant, education opportunities for our children? forget in a hurry. Lives were put on hold. timely and impactful contributions to How to make housing a‘ordable for people Borders were closed. International travel policy decisions. on all incomes? How to create a vibrant was stopped. Businesses got disrupted. business environment? Despite the dark shadow of Covid-19 Like all other New Zealand organisations, dominating the year, we also continued The Initiative will be working on these the Initiative had to operate out of our work on other issues with long-term questions with the same dedication to bedrooms, living rooms and studies for a implications for this country’s future. sound research as in the past. And we will couple of months. incorporate the lessons from the turbulent The Initiative’s most significant non-Covid year that was 2020. But as a public policy think tank, we had contribution was in education policy. the additional task of finding solutions to Our innovative model of using data to novel issues: How to preserve jobs when monitor and improve school performance the country was locked down? How to yielded new results from comparing safely restart the economy? How to restore di‘erent school types. Meanwhile, our international connectivity without risking critique of student-centred pedagogy, public health? New Zealand’s Education Delusion, was a seminal contribution to explaining how The crisis that gripped New Zealand and our education system operates. the world unfolded apace surrounded by enormous uncertainties. Policy The pandemic is not yet over, but the start Roger Partridge Dr Oliver Hartwich deliberations, which under normal of vaccinations globally gives us hope that Chairman Executive Director circumstances would have taken years, New Zealand and the world will soon find were compressed into days. a path to a ‘new normal.’

Our team at the Initiative took up the What this ‘new normal’ will look like is challenge and delivered unprecedented anybody’s guess. But we strongly suspect output last year in research, commentary it will require good policy thinking – and and advocacy. From short papers on most likely on questions that have also specific and urgent questions to research troubled us in the past: How to create good

The New Zealand Initiative — 03

NZIJ0195_Annual_report_2020.indd 3 9/03/21 4:16 PM 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 a‘iliated 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 some of New Zealand’s identical – to what most are an evidence-based highest profile business New Zealanders want to research institute, and we leaders among our diverse see achieved: are independent. We believe membership. Our members these are not contradictions. bring a wide range of interests, experiences and ideas.

A good A‘ordable An open A free and A sustainable A sound fiscal A stable education housing economy democratic natural environment oversight currency system society and heritage

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NZIJ0195_Annual_report_2020.indd 4 9/03/21 4:16 PM Our principles

The challenge in public policy is often not to define what you want to achieve, but to find workable ways of achieving widely shared goals based on solid foundations. We pledge that:

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 Our members and on a sound theoretical are supported by parties from across the public policy, not the the Initiative team framework and is empirical, and often political spectrum. interests of individual strive to build a better peer-reviewed. international, evidence. businesses or industries. New Zealand.

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NZIJ0195_Annual_report_2020.indd 5 9/03/21 4:16 PM OUR RESEARCH & SUBMISSIONS

NZIJ0195_Annual_report_2020.indd 6 9/03/21 4:16 PM Our research

Dr Oliver Hartwich spoke about the background from the contribution of Pricing Out findings on The AM Show, Radio NZ, each school. Congestion: Newstalk ZB and Newshub 6pm News. Experiences Insights and Excellence demonstrated that from abroad the Ministry of Education has a world-first Dr Patrick Carvalho opportunity to identify high-performing schools – regardless of decile – and get Insights and the best educational outcomes for every Excellence: In January, we released the second Kiwi student. We believe this information School success in report in our transport series. Research should be made available to all school New Zealand Fellow Dr Patrick Carvalho described in principals and boards of trustees. Joel Hernandez Pricing Out Congestion how cities around Chief Economist Dr Eric Crampton the world are turning to decades of appeared on TVNZ Breakfast to discuss scientific and empirical research on using In March, we released Insights and this research and findings. Newshub, congestion charging to manage chronic Excellence about our ground-breaking Newstalk ZB and The New Zealand Herald road overuse. tool for measuring school performance also covered the report. From the first congestion charging objectively and fairly. The report

implementation in Singapore in 1975 to demonstrated the valuable analysis about London, Stockholm and Dubai in the New Zealand schools that could one day 2000s to the expected 2021 New York be given to every parent and principal. Cannabis Reform in the City launch, a myriad of road pricing United States Policy Analyst Joel Hernandez showed schemes have been successfully The New Zealand Initiative how three secondary schools performed harnessing the power of the markets to over ten years relative to themselves Given the dearth of solid country-level fix road overcrowding – and providing and every other secondary school in data about the e‘ects of cannabis valuable lessons along the way. the country. legalisation here, the Initiative took an in- Congestion charging clearly works. depth look at each state in the US. Using data from Statistics New Zealand’s New Zealand should learn from such Integrated Data Infrastructure (IDI), Joel We presented data on all fifty states in international experiences to tailor a uncovered some unique insights into an interactive HTML map of the country. pricing scheme that is right for us. the true state of education performance The project collected the headline Patrick also provided further insights into by separating the contribution of each outcomes of cannabis legalisation from creating a more rational, updated and student’s family and socioeconomic the states that had passed such laws and sustainable urban transport system.

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NZIJ0195_Annual_report_2020.indd 7 9/03/21 4:16 PM o‘ered a snapshot of all relevant laws achieve, no one can tell if the budget is He found that while private schools were and regulatory settings across the US. too big, too little or providing value for generally more expensive, state-integrated money. Funding from taxation is costly for schools delivered a better student outcome For Kiwis considering their position on households that could fund their normal at a cheaper rate while public schools the referendum, the interactive project requirements directly, with or without continued to perform poorly. was a useful addition to the policy space. private insurance, and with greater We encouraged the Ministry of Education choice. Targeting subsidies at those in to figure out what goes on in those financial need would spread the subsidy well-performing state-integrated and dollar further. Those are the prime state schools and share their insights questions about the Pharmac system that and practices across the sector to government needs to address. lift the education attainment of all New Zealand students.

The State of Schooling Democracy in Joel Hernandez the Dark Pharmac: The right Dr Eric Crampton prescription? Dr Bryce Wilkinson In cooperation with The New Zealand Herald, Policy Analyst Joel Hernandez Democracy in the Dark captured the state used the Initiative’s school performance of civics knowledge in New Zealand. While the Crown entity, Pharmac, has database to assess the three types of It also showed wide gaps in the public’s drastically lowered prices of many schools in New Zealand (state, state- understanding of New Zealand’s political pharmaceutical medicines for Kiwis, integrated and private). The results were and civic institutions. Senior Fellow Dr Bryce Wilkinson found published in The State of Schooling. in Pharmac: The right prescription? that the The report drew on both previously If university entrance is a desired goal biggest weakness in current arrangements published surveys and a survey of for education, then state-integrated was the lack of clarity about what the 1,000 voting-age New Zealanders schools appear to o‘er the best value problem was for which the government commissioned by the Initiative: for money. Joel compared data from subsidy budget was the solution. Statistics New Zealand’s Integrated Data • Just under 70% of respondents named When no one knows what the universal Infrastructure (IDI) to see what each school every party in Parliament; pharmaceutical subsidy is intended to type contributed to student achievement. • One in twenty knew David Parker is

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NZIJ0195_Annual_report_2020.indd 8 9/03/21 4:16 PM Minister for the Environment; the Ministry of Education to track better Raising or introducing new taxes would • One in eight identified all three testing data and find the gaps. hurt growth while productivity can branches of government; be boosted by improving education, The book argued against ‘child-centred • Just over one in five respondents tweaking regulatory settings a‘ecting learning’ and made the case for a knew which political parties voted for investment, steadying monetary policy, knowledge-based school curriculum. the Zero Carbon Bill; and and tackling climate change intelligently. • 56% of respondents said The book was covered extensively in Roadmap for Recovery outlined our New Zealand has a military alliance the media (including on the front page key recommendations to the incoming with the UK (it does not). of The New Zealand Herald and several government to facilitate the recovery. radio and TV interviews) and also Chief Economist Dr Eric Crampton triggered more than a hundred feedback recommended that New Zealand should emails and letters from parents, teachers strengthen civics education and give and principals. people incentives to learn how our Is Climate Change democracy works. a Key Risk to Global

Financial Stability? Roadmap for Dr Bryce Wilkinson New Zealand’s Recovery: Briefing Education Delusion: to the incoming How bad ideas government In Is Climate Change a Key Risk to ruined a once world- The New Zealand Global Financial Stability? Senior Fellow leading school Initiative Dr Bryce Wilkinson assessed RBNZ system governor Adrian Orr’s claim that climate Briar Lipson New Zealand is facing its worst recession change was a “key risk” to financial in nearly a century. stability even though none of the New Zealand’s education system is a Unfortunately, government response published research – either by the RBNZ mess, riddled with unscientific ideas and to the recession and the economic or international agencies – appeared to seduced by child-centred orthodoxy. challenges of Covid-19 leaves much to support the notion. Research Fellow Briar Lipson highlighted be desired. Bryce suggested the central in New Zealand’s Education Delusion Sensible policies are desperately bank should focus on preventing how moving away from knowledge-based needed to protect the livelihoods of all irresponsible lending and managing learning and focusing on ‘21st century New Zealanders. Promoting employment, real risk instead of shouldering activist skills’ has eroded our education system. growth and productivity, and a credible “transformation” projects in the To arrest the decline, Briar outlined a path back to sustainable debt levels wider New Zealand economy. series of recommendations and called on is critical.

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NZIJ0195_Annual_report_2020.indd 9 9/03/21 4:16 PM Misdirection on Housing In response, Senior Fellow Dr David Law Submissions Ažordability Unhelpful wrote the Minimum Wages to the Dr David Law Maximum, in which he demonstrated In 2020, the Initiative made that the proposed minimum wage hike submissions to: New Zealand has long struggled with will not fix inequality and could even hurt housing a‘ordability. The issue is the most vulnerable – particularly during • The Ministry of Business, complex, but a lot is known about how a recession. Innovation & Employment (MBIE) the housing market works. on the Review of the Crown David recommended scrapping any In an interview with radio presenter Minerals Act 1991. plans to lift the minimum wage further Mike Hosking, Prime Minister and suggested winding back the 2020 Jacinda Ardern noted the current record • The Ministry of Business, Innovation increase as well. levels of home lending and suggested & Employment (MBIE) on the that “a lot of that will be, probably, Better Protections for Contractors New Zealanders coming home.” discussion paper. Ežective and Ažordable – Why Senior Fellow Dr David Law the ETS is sužicient to deal with • The Associate Minister of Health demonstrated in Misdirection on Housing the climate emergency and the Health Select Committee AŠordability Unhelpful why there is no Dr Oliver Hartwich on the Smokefree Environments straight line between high house prices and Regulated Products (Vaping) and net migration. More significant Thanks to successive climate change Amendment Bill. factors are pushing up demand. David ministers from David Parker to James spoke about his findings on Newstalk ZB. Shaw, New Zealand has a world-leading • The Finance and Expenditure Emissions Trading Scheme (ETS) to help Committee on the Overseas reduce our carbon emissions e‘iciently. Investment (Urgent Measures) Minimum Wages to the Maximum: In the policy essay EŠective and Amendment Bill. The risks of lifting the minimum AŠordable, Executive Director Dr Oliver wage Hartwich cited the UN Intergovernmental • Treasury and the Reserve Bank Dr David Law Panel on Climate Change (IPCC) to warn of New Zealand on the third that the nature of the ETS would render consultation round of Phase 2 of In a joint paper, The Helen Clark other environmental policies ine‘ective. the Reserve Bank Act Review. Foundation and The New Zealand Institute of Economic Research The essay pointed out that additional suggested lifting the minimum wage to taxes, subsidies or regulations will be a a “living wage” of $22.10 – which may waste of money and not yield any further sound appealing. emissions reductions.

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NZIJ0195_Annual_report_2020.indd 10 9/03/21 4:16 PM Covid–19 The unprecedented and simultaneous shutdown of the world’s economies created a maze of challenges. To navigate them takes competence, experience and sound judgment. Our team worked tirelessly to light a way out of this crisis in twenty research papers on Covid-19.

Short-Time Work to Maintain Ežective Treatment: Public policy Covid-19 Alert Level 4 period. This was Employment prescription for a pandemic wrong on two levels: It wasted precious Dr David Law Dr Eric Crampton resources that should have been dedicated to the crisis, and it precluded In Short-Time Work to Maintain In EŠective Treatment, Chief Economist the public from properly participating in Employment, Senior Fellow Dr David Law Dr Eric Crampton (with support the democratic submissions process. outlined an alternative to the from Research Assistant Leonard government’s wage subsidy scheme. Hong) proposed additional steps the During the GFC, Germany pioneered the government should take regarding the concept of Kurzarbeitergeld (short-time public health aspects of the Covid-19 Stay on Target work allowance). It allowed companies crisis. His paper also outlined which Dr Eric Crampton and Dr David Law to slash working hours and salaries, economic policy tools could help In Stay on Target, Chief Economist and the government then compensated companies and individuals deal with Dr Eric Crampton and Senior Fellow employees for a large chunk of the the financial impact. Dr David Law explored whether a lost income for up to a year. In this Eric discussed his findings with Universal Basic Income (UBI) would way, companies got e‘ective cost Mike Hosking on Newstalk ZB. help deal with the fallout of the country’s relief. They maintained flexibility, kept economic woes, an option Minister connected with their workforce, and of Finance Grant Robertson said he recovered quickly after the crisis. was considering. However, our report Time to Process The National Business Review and explained why the UBI would not have the Dr Eric Crampton Newstalk ZB interviewed David about beneficial employment e‘ects of a short- his proposal. Chief Economist Dr Eric Crampton time work allowance. In place of a UBI for looked at the absurdity of keeping people encountering financial di‘iculty, parliamentary enquiries going during the we proposed extending and opening lockdown in Time to Process. He showed the student-loan scheme to everyone. that the due dates for submissions on This would be much better targeted and 14 pieces of legislation fell within the less onerous on public finances.

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NZIJ0195_Annual_report_2020.indd 11 9/03/21 4:16 PM How Bad Might the Lockdown Lessons from Abroad: Singapore’s Bryce discussed his findings on Radio Be for Jobs and Income? Covid-19 containment model NZ and Newstalk ZB. Internationally, the Dr Bryce Wilkinson Leonard Hong report featured in The Financial Times and in other major newspapers, as well In How Bad Might the Lockdown Be for The world has had mixed success as on BBC World Service. Job and Income? Senior Fellow Dr Bryce containing Covid-19, but Singapore was a Wilkinson presented an estimate of the standout example during the early phases impact of the current economic crisis of the pandemic. Research Assistant on jobs and income. By his calculations, Leonard Hong analysed Singapore’s Deficit Spending in a Crisis: Why the costs could reach about $10,000 per approach in Lessons from Abroad and there is no such thing as a free lunch household. Bryce also reminded us that applied relevant lessons for New Zealand. Dr Bryce Wilkinson even as the government must spend He highlighted Singapore’s ‘no-nonsense’ In Deficit spending in a Crisis, Senior more to deal with the crisis, it must do so approach in strictly enforcing its rules Fellow Dr Bryce Wilkinson highlighted wisely and e‘ectively. using surveillance technology. some worrying ideas about expanding the Bryce spoke about his report to Newshub money supply to help pull New Zealand and Newstalk ZB. out of the Covid-19 economic crisis. The Quantifying the Wellbeing Costs report pointed to a misperception that of Covid-19 creating billions of dollars of additional Dr Bryce Wilkinson central bank credit is a simple way to Relief Measures: Comparing stem the recession. To avoid excessive Covid-19 wage subsidy schemes In Quantifying the Wellbeing Costs debt, New Zealand must instead ensure Dr David Law of Covid-19, Senior Fellow Dr Bryce any increases in central bank borrowing Wilkinson calculated that spending Comparing New Zealand with Australia and lending are not a free lunch. 6.1% of the annual GDP would have and Canada, Senior Fellow Dr David been justified to prevent the 33,600 Bryce appeared on TVNZ Breakfast Law explained in Relief Measures why Covid-19 deaths epidemiologists advised to discuss the economic costs of the the government’s wage assistance the Ministry of Health could result Covid-19 crisis in more detail. did not protect Kiwis enough from the were the pandemic left “substantially worst e‘ects of the Covid-19 crisis. He uncontrolled.” Under the Ministry’s lower also outlined the significant di‘erences projection of 12,600 deaths, spending between the three countries in the Lessons from Abroad: South Korea’s more than 3.7% of the annual GDP would construction of wage subsidy schemes. Covid-19 containment model have been excessive, even if success Leonard Hong were assured. Bryce highlighted the need to properly assess the costs and In Lessons from Abroad, Research benefits of the public health response to Assistant Leonard Hong, with support the pandemic. from Policy Analyst Joel Hernandez,

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NZIJ0195_Annual_report_2020.indd 12 9/03/21 4:16 PM outlined how South Korea contained crises to show how New Zealand might FDI: Unjustified Urgency its Covid-19 outbreak while maintaining avoid falling into the trap of choosing a Dr Bryce Wilkinson a relatively open economy. The report quick economic sugar hit over a more Keeping in line with our scrutiny on presented seven key examples of South wholesome strategic diet. government policies during a crisis, Korea’s pandemic approach and shared Senior Fellow Dr Bryce Wilkinson lessons for New Zealand. warned in FDI: Unjustified Urgency Lessons from Abroad: Taiwan’s of the rushed update to the Overseas Covid-19 containment model Investment Act (OIA) with little regard Open for Minds: Export education Leonard Hong for public and expert feedback. While and recovery the OIA changes may have been After assessing the epidemiological Dr Eric Crampton essential and urgent, Bryce said critical systems in South Korea and Singapore, legislation must always be open to In Open for Minds, Chief Economist Research Assistant Leonard Hong, public assessment regardless of the Dr Eric Crampton analysed the financial with support from Policy Analyst severity of an emergency. Unfortunately, position of New Zealand’s universities Joel Hernandez, tackled the third public submissions were open for only and the di‘iculty border closures caused outstanding performer during the two working days before the amended them. He argued that international Covid-19 crisis – Taiwan. Like its East OIA was passed. students should be admitted back to Asian peers, the country’s experiences New Zealand when it was safe to do so. with SARS had taught its government the importance of preparing for the inevitable dangerous pandemics. Taiwan’s The Rule of Law or the Law government was able to retain an open of Rulers For Better or for Worse: How economy while keeping the overall case Roger Partridge governments respond to crises rate of Covid-19 one of the lowest in Dr David Law Even in an emergency, Chairman the world during the early months of Roger Partridge reminded us in As the Covid-19 lockdown ended, 2020. The report highlighted multiple The Rule of Law or the Law of Rulers Senior Fellow Dr David Law cautioned lessons from Taiwan the New Zealand that all governments are subject to the in For Better or for Worse against the government might adopt as it plans for law of the land. While the lockdown may government pushing through well- the next pandemic. have been a wise decision to deal with intentioned policies to jump-start the Covid-19, legal experts were concerned economy. Instead, he advocated setting the process may have been illegal. sustainable strategies that use robust The rule of law forms a significant part cost-benefit analysis, fiscal responsibility of New Zealand’s unwritten constitution. goals, and long-term thinking. David Although urgent times call for urgent looked at how a handful of foreign measures, Roger cautioned against governments dealt with similar major

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NZIJ0195_Annual_report_2020.indd 13 9/03/21 4:16 PM the precedent of undermining laws to penalise thrift and prudent investing by advocated a series of crucial steps to achieve government goals. Kiwis or reward imprudent and risk-taking safely scale up border capabilities. Part of investors or banks. their approach is “rafting up” with other Covid-free countries such as Taiwan or Singapore. And rather than charging Lessons from East Asia’s returning Kiwis for quarantine, subsidised Covid-19 Containment Borrowing to Save: Retirement vouchers could be o‘ered to o‘set the Leonard Hong income policy after Covid-19 cost of managed isolation. Dr David Law Bringing together all the insights from how Taiwan, South Korea and Singapore tackled The Covid-19 economic crisis put the Covid-19 crisis, Research Assistant New Zealand on track to balloon its Extra Quarantine Capacity for Leonard Hong drew a rough outline of what debt levels to 53% of GDP by 2024. ‘Critical Workers’ is Critical New Zealand might do to prepare for the Policymakers were looking at a handful Roger Partridge next pandemic in Lessons from East Asia’s of options to lower public spending or Covid-19 Containment. Taiwan and South increase taxation to pay for the new debt. With a recession looming, companies Korea, especially, o‘ered clear examples Senior Fellow Dr David Law suggested desperately wanted to ramp up their of what can be achieved with appropriate in Borrowing to Save that rethinking operations back to normal after the two health and epidemiological provisions. retirement policy should be included in lockdowns. However, many couldn’t get the government’s set of ideas, particularly the right talent into the country. in Kiwisaver, the NZ Superannuation and In Extra Quarantine Capacity for ‘Critical the NZ Superannuation Fund. Not only Doing Whatever It Takes with Workers’ is Critical, Chairman Roger could reassessing these structures free Someone Else’s Money Partridge showed that the government’s up rainy-day capital, but it might also Dr Bryce Wilkinson border protection and quarantine put more money in the pockets of Kiwis measures were not flexible enough. The government decided to fix the exactly when they needed it. country’s economic damage after the He warned that both factors must be Covid-19 lockdown with unprecedented eased for New Zealand’s economy money printing and higher public debt. to attract, retain and employ some Safe Arrivals Not only will that debt need to be repaid of the best talent wanting to come Dr Eric Crampton and Leonard Hong at some point, but few options will remain to this country. in the government’s toolbox to cope with Re-opening the borders is critical for a new crisis – should one occur in the re-invigorating New Zealand’s economy: next few years. Senior Fellow Dr Bryce the longer it stays shut, the harder Wilkinson warned in Doing Whatever It the recovery will be. In Safe Arrivals, Takes with Someone Else’s Money that Chief Economist Dr Eric Crampton solving the problems of 2020 must not and Research Assistant Leonard Hong

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NZIJ0195_Annual_report_2020.indd 14 9/03/21 4:16 PM 2020 9 391 Initiative events 278 direct media held, hosting opinion articles mentions published (including 142 Insights pieces) 26 32 speakers speaking engagements radio and television 5,303 appearances engaged 84 Insights research reports readers published 38 (including 5 submissions)

550 4,604 3,103 238,441 podcast plays Facebook likes Twitter followers YouTube video views

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NZIJ0195_Annual_report_2020.indd 15 9/03/21 4:16 PM OUR ENGAGEMENT

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NZIJ0195_Annual_report_2020.indd 16 9/03/21 4:16 PM Engagement with members

We held four members’ meetings and hosted several other high-profile speakers in 2020. These meetings provided our members the opportunity to hear from and engage with politicians, industry experts and international speakers on a wide range of topics.

In 2020, we hosted the following guest speakers:

Grant Robertson Simon Bridges Hon Sir Roger Douglas Minister of Finance Former Leader of the Opposition Minister of Finance (1984–88) and Chair of Parliament’s Epidemic and father of ‘Rogernomics’ Response Committee

Dr Graham Scott CB Rt Hon Sir Bill English Hon Judith Collins Secretary to the Treasury (1986–93) Minister of Finance (2008–16) and Leader of the Opposition Prime Minister (2016–17)

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Auckland and Members’ Retreat (March) Wellington events Our eighth annual Members’ Retreat Nick Cater, Executive Director of Menzies was held for the first time at Orakei Bay Research Centre in Australia, and In November and December, we (12–13 March) and attended by around Josie Pagani, Executive Director of the organised networking events for our 70 of our members. Council for International Development, members in Wellington and Auckland. commented on both surveys and their In the 2020 election year, the retreat Our Wellington-based members joined implications for the future of democracy. focused on how we could use our us for drinks and discussion with Rt research from the past eight years to To help us make sense of developments Hon Sir Bill English and Forsyth Barr create more debate in the lead-up to 19 in international politics and business, Managing Director Neil Paviour-Smith. September. With the unfolding Covid-19 former Prime Minister Rt Hon Sir John At a reception for our Auckland- crisis, conversations at the retreat were Key shed light on the biggest trends, based members, Westpac’s Chief dominated by the economic implications including Covid-19. Executive David McLean and Chapman of the pandemic and New Zealand’s The members also heard from Tripp’s Managing Partner Nick Wells response compared to other countries. Bjørn Lomborg, one of the world’s reflected on the upcoming Opinion polls showed that the leading thinkers on development and parliamentary term. government and opposition were neck- sustainability. Via a video link from and-neck ahead of the 2020 election. The California, Bjørn described his newest New Zealand Herald’s Fran O’Sullivan project aimed at achieving the best policy and political scientist Dr Bryce Edwards results with limited resources. discussed the election intrigue. Leader of Dr Bella d’Abrera, Director of the Opposition Simon Bridges spoke to the Foundations of Western Civilisation our members about the National Party’s Program at the Institute of Public A‘airs policy platform. in Melbourne, gave the Retreat Dinner Acumen Republic’s Adelle Keely address. She shared her views on the previewed the new Edelman Trust Western civilisation. Barometer for New Zealand. Dr Oliver Hartwich unpacked the results of a survey of Kiwis’ knowledge about and attitudes towards democracy.

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NZIJ0195_Annual_report_2020.indd 19 9/03/21 4:16 PM Webinar Reefer Madness or Pot Paradise? The impact of cannabis legalisation in the USA (October)

Together with The Helen Clark Foundation, legislative e‘orts in the US ahead of the we hosted John Hudak, Deputy Director of 2020 presidential election, the impact of the Center for E‘ective Public Management reform, and the lessons for New Zealand at The Brookings Institution in Washington, before its 2020 referendum. D.C., for a timely webinar ahead of The session was co-chaired by New Zealand’s vote on cannabis law reform. Kathy Errington, Executive Director of Cannabis law reform has been implemented The Helen Clark Foundation, and our in several states in the US and in various Chief Economist Eric Crampton. ways. John shared his thoughts on the

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NZIJ0195_Annual_report_2020.indd 21 9/03/21 4:16 PM Media

The New Zealand Initiative’s aim is to shape the public debate and inject new ideas into the political discourse. An e‘ective communications strategy is vital to this and our engagement with media is an essential part of our work.

We did just that in 2020 through our system, was featured on the cover of a column to it. BBC World Service too widespread media coverage. The New Zealand Herald; Briar was also interviewed Bryce on his findings. interviewed on TVNZ Breakfast and During the Covid-19 lockdown in March Oliver Hartwich shared his views on Prime The AM Show. Eric Crampton’s report and April, we produced many short Minister Jacinda Ardern’s first term and the Democracy in the Dark got extensive research reports as a quick response upcoming election in The New York Times, coverage on The AM Show, TVNZ Breakfast, to policy announcements on the wage TIME magazine and The Economist. The New Zealand Herald, StuŠ, Newshub, subsidy scheme, Universal Basic Income Newstalk ZB and Radio NZ. In 2020, our social media following and (UBI), East-Asia’s Covid-19 containment Insights readership has continued to grow models, retirement policy, scaling up border Besides our regular columns on Newsroom throughout the year, allowing us to share capabilities, etc. and The Dominion Post, we were proud to our research and media commentary. add a weekly column in The New Zealand The high number of publications in 2020 We also started our own weekly podcast, Herald. Our columns allow us to reach a fetched us a record number of direct where our researchers discuss a wide wide-ranging audience and often lead to media mentions (391 times) and radio and range of topics in detail. radio interviews with our researchers on television appearances (84 times). Mike Hosking Breakfast and Magic Talk. The extensive media coverage this year We also achieved extensive media coverage proved we are an established source of Our research and findings found for our traditional in-depth research. expert commentary on the major policy international attention too. Bryce Wilkinson’s Briar Lipson’s book, New Zealand’s and economic issues of the day. We are research note assessing the wellbeing costs Education Delusion: How bad ideas proud of that. of Covid-19, Deficit Spending in a Crisis, went ruined a once world-leading school viral after The Financial Times dedicated

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NZIJ0195_Annual_report_2020.indd 23 9/03/21 4:16 PM JAN

 JANUARY  JANUARY  JANUARY Eric Crampton discussed the Briar Lipson wrote about child- We released the second report economics of parenting on his and teacher-led education and in our transport research series.

regular slot on Radio NZ Nights. the delusion of doing both in In Pricing Out Congestion: The New Zealand Herald. Experiences from abroad, author  JANUARY Patrick Carvalho focused on the In our first Insights newsletter of the international experiences around year, we covered the una‘ordability congestion pricing. Oliver Hartwich of housing in New Zealand, teaching spoke about the findings on The AM subject knowledge (not activism), Show, Newstalk ZB, Radio NZ and and New Year’s resolutions. Newshub 6pm News.

 JANUARY Getting the framework right matters if the government wants to hit its Smokefree 2025 goal. Letting the  JANUARY gears grind just a little longer could HIGHLIGHTS In a submission to the Ministry of be well worth it, said Eric Crampton

OF OUR YEAR OUR OF Business, Innovation & Employment, on StuŠ. Bryce Wilkinson addressed questions about the role and purpose of the Crown Minerals Act.

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NZIJ0195_Annual_report_2020.indd 24 9/03/21 4:16 PM FEB MAR

 FEBRUARY  FEBRUARY  MARCH  MARCH In his fortnightly column in Following SkyCity’s cancellation of We launched Insights and We welcomed the Reserve Bank The Dominion Post, Eric Crampton Peter Singer’s speaking event, Eric Excellence: School success in of New Zealand’s decision to cut explained why congestion charging Crampton discussed the importance New Zealand. Joel Hernandez interest rates and loosen bank could solve our tra‘ic woes. of free speech on Newstalk ZB. presented a ground-breaking capital requirements in preparation tool that could give parents and for a significant hit to the economy  FEBRUARY  FEBRUARY principals the first objective from Covid-19. On TVNZ Breakfast, Eric Crampton Eric Crampton argued in measurement of school performance questioned the logic and fairness The Dominion Post that we do not in New Zealand. TVNZ Breakfast,  MARCH of subsidising foreign films shot need UN “housing experts” as Newshub, Newstalk ZB and The New After the government announced in New Zealand with millions of they are utterly clueless. Zealand Herald covered the report. its $12.1 billion Covid-19 rescue taxpayers’ dollars. package, we released an extra Insights newsletter. Eric Crampton discussed the package on The SpinoŠ, Radio NZ and The Dominion Post.

 FEBRUARY  MARCH After Wellington City Council Eric Crampton gave advice on The o‘icially supported a congestion Project about how people could charge for inner-city motorists, Eric keep their money safe during these  FEBRUARY Crampton talked about our research troubling economic times. Oliver Hartwich spoke about the on congestion pricing on The Panel possibilities of a rise in populist (Radio NZ) and Magic Drive.   MARCH parties in New Zealand on Radio We held our eighth Members’ NZ’s podcast The Detail.  FEBRUARY Retreat at the Orakei Bay Roger Partridge made a submission Conference Centre in Auckland. to the Ministry of Business, Dr Bella d’Abrera gave the dinner Innovation & Employment on the address on Western civilisation to discussion paper Better Protections more than 100 attendees. for Contractors.  MARCH Oliver Hartwich discussed New Zealand’s response to the Covid-19 related economic crisis compared to other countries on Magic Talk.

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NZIJ0195_Annual_report_2020.indd 25 9/03/21 4:16 PM APR

 MARCH  MARCH  MARCH APRIL Our first members’ event of the year We released Short-Time Work In his paper Time to Process, In How Bad Might the Lockdown was a livestream-only event: 47 to Maintain Employment by Eric Crampton examined the Be for Jobs and Income? Members dialed in to hear Minister David Law. The National Business absurdity of keeping parliamentary Bryce Wilkinson showed that of Finance Hon Grant Robertson’s Review interviewed David about enquiries going during the Kiwi households could lose update on the Covid-19 crisis and his suggestions to better support lockdown. $10,000 of yearly income from the economy. employment and business flexibility the Covid-19 lockdown. He spoke during the Covid-19 crisis.  MARCH about his findings on Newshub MARCH Eric Crampton and David Law and Newstalk ZB. In a joint statement with BusinessNZ, explored in their paper Stay on Target we encouraged the government to whether a Universal Basic Income go further with its Covid-19 economic (UBI) would help fix the economic support package. fallout from the Covid-19 crisis.

MARCH Roger Partridge wrote in our first weekly New Zealand Herald column that exceptional times call for  MARCH extraordinary measures. Peace-time Eric Crampton (with support from  APRIL rules about government spending, Leonard Hong) wrote EŠective Eric Crampton explained in The deficits and public debt should be Treatment: Public policy prescription Dominion Post why suppliers to set aside during the Covid-19 crisis. for a pandemic. The paper listed some essential services might be the economic policy tools that  MARCH more essential than first thought. could help support companies and Eric Crampton made a submission individuals deal with the financial on the government’s proposed impact of Covid-19. Eric discussed vaping regulations. He also his findings on Newstalk ZB. appeared (via Zoom) in front of the Parliamentary Committee.

 MARCH In a media release, we welcomed MARCH the government’s plans to ramp up  APRIL After the government announced a testing for Covid-19 beyond 3,500 In Relief Measures: Comparing Covid-19 lockdown, Oliver Hartwich per day to get the country closer to Covid-19 wage subsidy schemes, spoke to reopening its economy. Heather du Plessis- David Law compared Canada’s and Allan on Newstalk ZB about why Australia’s wage subsidy schemes companies should be encouraged to and found that better information retain their employees. could increase the flexibility and generosity of New Zealand’s version.

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NZIJ0195_Annual_report_2020.indd 26 9/03/21 4:16 PM APR  APRIL  APRIL APRIL APRIL Oliver Hartwich spoke to former Bryce Wilkinson showed in his In Deficit Spending in a Crisis: Why Bryce Wilkinson’s Deficit Spending Newsroom Editor Bernhard Hickey report Quantifying the Wellbeing there is no such thing as a free in a Crisis, which assessed the and Kiwibank Chief Economist Costs of Covid-19 how an economic lunch, Bryce Wilkinson highlighted wellbeing costs of Covid-19, went Jarrod Kerr about how the Eurozone hit of about 6.1% of GDP would be concerns from both the government viral after The Financial Times and the European Union were justified if it meant saving 33,600 and the Reserve Bank about dedicated a column to it. BBC World handling Covid-19. lives during the Covid-19 pandemic. expanding the money supply to pull Service too interviewed Bryce. Bryce discussed his findings on New Zealand out of the Covid-19  APRIL Radio NZ and Newstalk ZB. economic crisis. Bryce discussed his Following the release of Short-Time report on TVNZ Breakfast. Work to Maintain Employment, David Law discussed the benefits of short- time work on Newstalk ZB.

 APRIL Our members heard from Simon Bridges, Leader of the Opposition and Chair of Parliament’s Epidemic APRIL  APRIL Response Committee, in a webinar.  APRIL Oliver Hartwich explained to the Lessons from Abroad: South Korea’s In a media release, we welcomed Epidemic Response Committee why Covid-19 containment model by comments from Finance Minister an economic framework with secure Leonard Hong and Joel Hernandez Grant Robertson about the need property rights, sound money, outlined how South Korea for a principles-based approach to competition, freedom of contract, contained its Covid-19 outbreak which businesses will be able to open markets, and a functioning while maintaining a relatively operate at Alert Level 3. price system would give us the open economy.  APRIL flexibility needed to grow out of the In Lessons from Abroad:  APRIL Covid-19 economic crisis. Singapore’s Covid-19 containment After the government announced model, Leonard Hong analysed extending the Covid-19 lockdown, Singapore’s pandemic approach and Oliver Hartwich explained on shared lessons for New Zealand. Newstalk ZB why every extra day would be more costly than the one before.

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NZIJ0195_Annual_report_2020.indd 27 9/03/21 4:16 PM MAY

 MAY  MAY  MAY  MAY In Open for Minds: Export education Eric Crampton discussed the Bryce Wilkinson wrote on StuŠ Eric Crampton discussed better and recovery, Eric Crampton upcoming Budget 2020 with about what to watch for in alternatives for ‘helicopter money,’ highlighted the rare opportunity Kathryn Ryan on Radio NZ. Budget 2020. such as extending the student loan for Kiwi universities to reinvigorate scheme to non-students, with Wallace their international student numbers.  MAY Chapman on Radio NZ’s The Panel. Newshub, Newstalk ZB, Radio NZ, Oliver Hartwich talked to Ryan StuŠ and The New Zealand Herald Bridge on Magic Talk about the  MAY covered the report. lessons New Zealand could learn We warned in a media release from Germany regarding our that the government’s proposed Covid-19 economic recovery. changes to the Overseas Investment Act would only make it harder  MAY for struggling Kiwi businesses to We were pleased to hear Education recover after Covid-19. Minister Chris Hipkins considering  MAY reopening universities for There are lessons to be learnt from  MAY international students – but with how economic downturns were Eric Crampton reviewed the strict quarantine measures in place. managed historically. We were 2020 Budget on StuŠ. He said small This is exactly what Eric Crampton fortunate to host a webinar for our investments in setting up rigorous had proposed in his report, members with three key figures from quarantine facilities so others could MAY Open for Minds: Export education the 1980s reform and GFC years: Hon safely join our lifeboat would pay Following his speech to the Epidemic and recovery. Sir Roger Douglas, Dr Graham o‘ rapidly. Response Committee about the Scott CB and Rt Hon Sir Bill English. lessons to be learnt from post-war  MAY Germany’s economic recovery, Oliver In For Better or for Worse: How Hartwich discussed New Zealand’s governments respond to crises, economic situation in more detail David Law looked at the with ACT leader David Seymour. international recovery policies that Around 2,000 people watched the had gone wrong. He found that the online conversation. more a government keeps its hands o‘ the regulatory levers, the faster  MAY  MAY the economy returns to normal. Taiwan was one of the few countries Bryce Wilkinson argued in the to flatten the curve of Covid-19 submission on Overseas Investment without a national lockdown. (Urgent Measures) Amendment Leonard Hong outlined in Lessons Bill that more time was needed for from Abroad: Taiwan’s Covid-19 scrutiny of the proposed changes containment model 11 key examples to the Overseas Investment Act, of Taiwan’s pandemic approach. particularly when thousands of Kiwi Newstalk ZB covered the report. businesses were near bankruptcy.

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NZIJ0195_Annual_report_2020.indd 28 9/03/21 4:16 PM JUN  MAY  MAY JUNE  JUNE Bryce Wilkinson gave a speech on Eric Crampton summarised In his regular Radio NZ Nights’ slot, Eric Crampton was a panellist Budget 2020 and the impact of New Zealand’s housing a‘ordably Eric Crampton discussed how at this year’s virtual Friedman Covid-19 on the economy to the shambles on PrefabNZ’s virtual our borders could be the key to Conference. Other panelists Epidemic Response Committee. conference. economic recovery. included Chris Snowdon and Kate Andrews from the Institute for  MAY JUNE Economic A‘airs in London. They Eric Crampton discussed on The AM Roger Partridge warned in The New talked about paternalistic regulation Show why New Zealand’s relatively Zealand Herald that Shane Jones’ and ‘nanny state’ initiatives. safe status would give the tertiary Forestry Bill would strangle forestry sector a real opportunity to become investment and harm the economy.  JUNE a more desirable destination for In Doing Whatever It Takes  MAY international students. with Someone Else’s Money, While the lockdown eradicated Bryce Wilkinson outlined why Covid-19 from the country, New Zealand is on a dangerous Roger Partridge outlined in The Rule path to higher public debt and of Law or Law of Rulers why the legal unprecedented money printing with underpinnings of the lockdown may no credible plan for unwinding the not have been as robust as the situation before the next crisis hits. government has intimated – especially during the lockdown’s early days.  MAY Eric Crampton participated  JUNE in a LEANZ panel discussion, Roger Partridge explained on alongside Andreas Heuser Newstalk ZB how New Zealand and Richard Meade, on the could better use its Covid-free economic consequences of status. “Gold standard” quarantining Covid-19. They discussed better could safely allow multinationals, policies for mitigating Covid’s students, researchers and sports economic e‘ects. teams into New Zealand.  JUNE Eric Crampton talked to  MAY Kerre McIvor on Newstalk ZB about Singapore, South Korea and why it is time to start paying blood Taiwan all successfully “flattened donors – and why relying on blood the epidemiological curve” early in from the US is not sustainable. their Covid-19 pandemic responses. Leonard Hong explained in Lessons from East Asia’s Covid-19 containment the importance of preparation in the three states.

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NZIJ0195_Annual_report_2020.indd 29 9/03/21 4:16 PM JUL  JUNE JUNE  JULY  JULY In a media release, we said it Eric Crampton suggested on TVNZ Oliver Hartwich spoke to Kerre In Safe Arrivals, Eric Crampton was “deeply concerning” that the Seven Sharp how the government McIvor on Newstalk ZB about the argued New Zealand must ‘raft up’ government was refusing to let could provide vouchers to cover the ACT Party‘s new employment with other Covid-free countries MFAT o‘icials advise the Select cost of quarantine services instead insurance scheme. He said that in while building stronger border Committee about how Shane Jones’ of asking returning Kiwis pay for these challenging times, policies capabilities. He suggested a Forestry Bill might hurt the country’s it themselves. He also spoke to where workplaces can quickly voucher programme to help safely trade relationships. Andrew Dickens on Newstalk ZB. upscale again are preferable to scale up the country’s managed employment insurance. isolation system. Eric spoke about  JUNE his research on TVNZ Breakfast, Oliver Hartwich spoke to  JULY Newstalk ZB and Radio NZ. StuŠ the New Zealand Investment David Law reviewed the Green and The New Zealand Herald also Forum 2020, organised by Party’s “Poverty Action Plan” in covered his findings. Russell Investments, about how The Dominion Post. While the plan New Zealand should approach is all about tackling poverty, the  JULY JUNE the economic challenges caused outcomes may di‘er from what the The New Zealand Herald Activist movements are striving by Covid-19. party expects. published a full-page article about to solve what they see as social, Eric Crampton’s recommendations economic or environmental ills.  JUNE in Safe Arrivals on safely scaling But digging deeper shows that the David Law explained in Borrowing up New Zealand’s managed West’s foundational ideals are again to Save: Retirement income policy isolation system. facing an existential threat – this time after Covid-19 why the government from within, wrote Oliver Hartwich must rethink its retirement income in The New Zealand Herald. policies and use its rainy-day funds to plug the fiscal gap created by the Covid-19 crisis.  JULY In a long chat with Newstalk ZB‘s Leighton Smith, Oliver Hartwich discussed the significance of the 2020 election, the most important issues to keep in mind when we  JULY  JUNE vote, and monetary stability. In Pharmac: The right prescription? Ahead of the cannabis referendum, Bryce Wilkinson examined the we released a clickable state-by- JULY strengths and weaknesses of state map of the US highlighting the David Law discussed tax issues New Zealand’s drug buying agency policies and outcomes of cannabis and how New Zealand would pay Pharmac. The report got extensive legalisation in each state to help for Covid-19 in an interview with media coverage, including in voters gain a more comprehensive Wallace Chapman on Radio NZ’s The New Zealand Herald, StuŠ picture as we headed towards our The Panel. and Newstalk ZB own referendum.

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NZIJ0195_Annual_report_2020.indd 30 9/03/21 4:16 PM AUG SEP  AUGUST  AUGUST  SEPTEMBER  SEPTEMBER Sir John Key told Newshub he On Radio NZ’s Morning Report, We hosted a webinar with Leader Following Labour’s announcement supported our idea to allow Roger Partridge argued that border of the Opposition, Judith Collins. to lift the top tax percentage, we international students back into exemptions for critical workers had Around 80 members heard about argued in a media statement that New Zealand. become a bit of a lottery. A survey National’s proposals for the Covid-19 if Labour’s goal is to get debt back among our members showed that recovery and its plans to create more under control, it would make more large projects are stalling, major plant jobs and build a stronger economy. sense to cut spending, such as on commissions are being deferred, and superannuation. senior executives and their families are marooned overseas.  SEPTEMBER Joel Hernandez wrote on Newsroom  AUGUST that Sweden’s high Covid-19 In cooperation with The New mortality highlighted the need Zealand Herald, Joel Hernandez for health o‘icials to understand used the Initiative’s school SEPTEMBER the hidden disadvantages and Roger Partridge argued in Extra  AUGUST performance database to assess advantages in their country’s Quarantine Capacity for ‘Critical Based on his report Safe Arrivals, the di‘erent types of schools in healthcare. Workers’ is Critical that we needed Eric Crampton spoke about New Zealand. He found that state- to ease border restrictions to allow  SEPTEMBER how New Zealand’s border integrated schools may o‘er the the entry of essential workers and Matt Burgess, author of our capabilities can be safely scaled best value for money. We published keep the economy going. 2019 Switched On! report, talked up by introducing a Pacific Travel the results in The State of Schooling. to Newstalk ZB about why the Bubble in a webinar organised Joel was interviewed by Radio NZ  SEPTEMBER government’s commitment to 100% by the New Zealand Pacific and Newstalk ZB. We released Democracy in the renewable electricity by 2030 went Business Council.  AUGUST Dark by Eric Crampton. The report against the advice of its own experts. captured the poor state of civics  AUGUST Roger Partridge participated in a knowledge among Kiwis and got Oliver Hartwich spoke to Salvatore webinar panel discussion organised extensive coverage on The AM Babones for The Centre for by the Law and Economics Show, TVNZ Breakfast, The New Independent Studies’ On Liberty Association of New Zealand. He Zealand Herald, StuŠ, Newshub, show about New Zealand’s post- shared his views on the Covid-19 Newstalk ZB and Radio NZ. pandemic future. emergency response measures and the rule of law.

 AUGUST  SEPTEMBER In his regular Radio NZ Nights’ Oliver Hartwich joined the Menzies slot, Eric Crampton talked about Research Centre’s Nick Cater to the poor state of civics knowledge discuss the economic consequences among Kiwis. of New Zealand’s attempts to eradicate Covid-19.

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NZIJ0195_Annual_report_2020.indd 31 9/03/21 4:16 PM OCT  OCTOBER  OCTOBER  OCTOBER  OCTOBER Ahead of New Zealand’s chance Oliver Hartwich spoke about Following the release of her book, The Green Party claimed their to vote on cannabis law reform, we the challenges and opportunities New Zealand’s Education Delusion, proposed wealth tax regime hosted a webinar with The Helen for New Zealand at the PEPANZ Briar Lipson spoke to Newshub 6pm would only a‘ect around 6% of Clark Foundation and John Hudak election forum. News about why New Zealand’s New Zealand, but Eric Crampton from The Brookings Institution on education system is a mess, riddled explained to Heather du Plessis- the impact of cannabis legalisation with unscientific ideas, and home to Allan on Newstalk ZB why the real in the US. child-centred orthodoxy. number is a lot higher.

 OCTOBER We were delighted by the media coverage for Briar Lipson’s OCTOBER book New Zealand’s Education  OCTOBER Oliver Hartwich shared his views Delusion: How bad ideas ruined a In Roadmap for Recovery: Briefing to  OCTOBER on Prime Minister Jacinda Ardern’s once world-leading school system. the incoming government, we listed Eric Crampton and Max first term and the upcoming election The book featured on the cover of more than 30 smart ways to fix the Rashbrooke joined TVNZ Breakfast in The New York Times, TIME The New Zealand Herald, and Briar worst social and economic ills that to discuss the political parties’ magazine and The Economist. was interviewed on TVNZ Breakfast have plagued this country economic policies in the lead-up to and The AM Show. for decades. the election.

 OCTOBER Bryce Wilkinson and Roger OCTOBER Partridge made a submission to Wellington City’s Draft Spatial  OCTOBER Treasury and the Reserve Bank in Plan sparked opposition; some In a webinar hosted by the response to the third consultation people don’t want to see high- Property Council New Zealand, round of Phase 2 of the Reserve density housing or new subdivisions Eric Crampton shared his Bank Act Review. on the outskirts of Wellington. perspectives on recently announced Eric Crampton discussed the political party policy promises. details of the plan on Newstalk ZB.

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NZIJ0195_Annual_report_2020.indd 32 9/03/21 4:16 PM NOV  OCTOBER NOVEMBER  NOVEMBER  NOVEMBER Eric Crampton talked to Bryan Reserve Bank Governor Adrian Orr Oliver Hartwich commented Oliver Hartwich wrote an open Crump on Radio NZ Nights’ about argued climate change was a “key in The New York Times about letter to Mike Hosking in The New the problem with climate policy and risk to global financial stability.” Prime Minister Jacinda Ardern’s Zealand Herald taking aim at some how we can utilise it for an e‘ective Bryce Wilkinson argued in Is new cabinet, the most diverse of the radio host’s comments on Covid-19 recovery. Climate Change a Key Risk to Global in New Zealand’s history. housing. They discussed their Financial Stability? that no evidence divergent views in Hosking’s show OCTOBER exists for this link – either in the on Newstalk ZB. Oliver also spoke Australia’s ABC Radio interviewed IMF’s latest global financial stability about housing on Magic Talk. Oliver Hartwich about the New assessment or RBNZ’s financial Zealand election and why voters stability reports. chose health over wealth.

 NOVEMBER In his first Energy News column, Matt Burgess wrote about the  NOVEMBER e‘ect of Environment Minister Our Wellington-based members James Shaw’s sweeping powers joined us for drinks and a on emissions. discussion with former Prime Minister Rt Hon Sir Bill English  NOVEMBER and Forsyth Barr Managing Briar Lipson had a long chat with Leighton Smith on Newstalk  OCTOBER Director Neil Paviour-Smith. ZB about what is wrong with our In The New Zealand Herald, schools – and how we can fix it. Oliver Hartwich said we may only  NOVEMBER Many listeners reached out to us discover how unlucky we are in The Prime Minister said New supporting Briar’s comments. New Zealand once the shine of Zealanders coming home after stopping Covid-19 wears o‘. The Covid-19 was a major factor in piece sparked a lot of attention and the record levels of home lending. Oliver was interviewed by Magic David Law demonstrated in Talk and Radio NZ. Misdirection on Housing AŠordability Unhelpful why there is no straight line between high house prices and net migration. Newstalk ZB interviewed David about his findings.

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NZIJ0195_Annual_report_2020.indd 33 9/03/21 4:16 PM DEC  DECEMBER DECEMBER In an op-ed for The Australian We organised a reception for Financial Review, Oliver Hartwich our Auckland-based members. argued the real solution for housing Westpac’s Chief Executive a‘ordability depends on making it David McLean and Chapman easier to build more houses. Tripp’s Managing Partner Nick Wells reflected on the forthcoming parliamentary term.

DECEMBER David Law outlined in Minimum Wages to the Maximum why calls from The Helen Clark Foundation and the New Zealand Institute of Economic Research to lift the  DECEMBER minimum wage will not fix inequality Thanks to the work of successive and could end up hurting the climate change ministers from David most vulnerable. StuŠ had a great Parker to James Shaw, New Zealand write-up about our research and has a world-leading Emissions also quoted other economists Trading Scheme (ETS). In a policy who questioned lifting the essay, Oliver Hartwich outlined why minimum wage. we should rely on the ETS to drive down carbon emissions.

 DECEMBER STA News, the monthly magazine for school trustees, published an interview with Briar Lipson about her book, New Zealand’s Education Delusion. A hard copy of the book was enclosed with this mailing to all school trustees in New Zealand.

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NZIJ0195_Annual_report_2020.indd 34 9/03/21 4:16 PM Entry from other locations “ must be made safe. And while closing borders entirely can feel like the right response when other parts of the world are in dire straits, it is impossible. Too many Kiwis live abroad and may wish to return. The managed isolation and quarantine system must be able to scale up to accommodate those people along with potential non-citizen visitors from similar locations.”

Dr Eric Crampton Research Note: Safe arrivals July 2020

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NZIJ0195_Annual_report_2020.indd 35 9/03/21 4:16 PM Our team He served as Lecturer and Senior Chelsy Killick Lecturer in Economics at the Operations Director Department of Economics & Finance at the University of Canterbury from 2003 Dr Oliver Hartwich to 2014. Executive Director Chelsy is the Operations Director of Eric’s columns and commentary appear The New Zealand Initiative. She works regularly in New Zealand’s major closely with the Board on governance Oliver is the Executive Director of media outlets, as well as on his blog, matters and is responsible for The New Zealand Initiative. Before OŠsetting Behaviour. membership, human resources, and joining the Initiative, he was a Research finances at the Initiative. Fellow at The Centre for Independent Studies in Sydney, Chief Economist She project manages the Initiative’s Dr Bryce Wilkinson at Policy Exchange in London, and an events, including the annual members’ Senior Fellow advisor in the UK House of Lords. retreat, and has organised two international delegations (Switzerland in Oliver holds a Master’s degree in 2016 and Denmark in 2019) for 40 of Economics and Business Administration Bryce is a Senior Fellow at The New our members, consisting of CEOs and a PhD in Law from Bochum Zealand Initiative, and also Director and Chairs of some of New Zealand’s University in Germany. of Wellington-based economic top companies. consultancy Capital Economics.

He worked in the New Zealand Treasury from 1970 to 1985, reaching Dr Eric Crampton the position of Director. Bryce moved Chief Economist into investment banking and became a Director of, and shareholder in, First NZ Capital until 1997, when he founded Eric is the Chief Economist at The Capital Economics. New Zealand Initiative, where he has worked in policy areas ranging from Bryce holds a PhD in Economics from freshwater management to earthquake the University of Canterbury and preparedness, and from local was a Harkness Fellow at Harvard government to technology. He is now University. He is a Fellow of the Law and focusing on policy related to Covid-19 Economics Association of New Zealand. response.

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NZIJ0195_Annual_report_2020.indd 36 9/03/21 4:16 PM

Matt Burgess Joel Hernandez Leonard Hong Senior Economist Policy Analyst Research Assistant

Matt is a Senior Economist at The New Joel is a Policy Analyst and an Leonard joined The New Zealand Zealand Initiative. He has been Senior econometrician at The New Zealand Initiative as a Research Assistant in Economic Advisor to the Minister of Initiative working on education policy. 2020. In 2019, he completed his Finance, Chief Executive of iPredict, and He has a Master’s degree in Economics BA/BCom conjoint degree at the a Senior Associate at consultancy firm at Victoria University of Wellington, University of Auckland, where he Charles River Associates. where he focused on productivity, labour majored in Politics & International economics, and game theory. Joel also Relations, History, Economics, He has a Master of Commerce in holds a Bachelor of Science degree and International Business. Economics with first class honours from the from the University of Otago, majoring University of Canterbury and a Bachelor of Previously, he has worked as a research in Microbiology. Commerce in Economics and Mathematics. intern at The Centre for Independent Studies in Sydney on economic, cultural and global a‘airs. Briar Lipson Leonard is a member of the National Dr David Law Research Fellow Unification Advisory Council with the Senior Fellow Korean Consulate in Auckland.

Briar is a Research Fellow specialising David joined The New Zealand Initiative in education. Before joining the Initiative, as a Senior Fellow after spending three she was a Maths teacher and Assistant years in the Economics Department of the Mangai Pitchai Principal in London, where she also co- Organisation for Economic Co-operation Editor founded the Floreat family of primary and Development (OECD) in Paris. schools. Briar has worked for international Between 2003 and 2016, he worked in the education consultancy CfBT, and the Mangai is The New Zealand Initiative’s New Zealand public sector, undertaking Westminster think tank Policy Exchange. editor. She has worked as an editor and economic research and analysis for the publications manager at the Initiative and Treasury, the Commerce Commission, She holds a Master’s degree in The Centre for Independent Studies in and the Electricity Authority. Economics from the University Sydney since 2009. Before that, she has of Edinburgh. He holds a PhD in Economics from Victoria worked in legal publishing in Australia, University of Wellington with a focus on journalism in California and India, and policy evaluation in savings and housing. teaching in India.

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NZIJ0195_Annual_report_2020.indd 37 9/03/21 4:16 PM Mangai has an MPhil in Archaeology marketing for Oticon New Zealand, and Linda Heerink from India and she has studied journalism more recently as an administrator for Communications O’icer in California. the Royal Australian and New Zealand College of Radiologists.

Linda is a Communications O‘icer at The She has a Bachelor’s degree in Business New Zealand Initiative. She works closely Administration from Victoria University Simone White with our research team as they scope, of Wellington. Communications O’icer write and publish their research reports. Linda engages with stakeholders and Simone is a Communications O‘icer media to facilitate opportunities for the Karen Ewart at The New Zealand Initiative and the research team to discuss their reports on Accounts and Payroll main contact for media queries. She TV, print and radio, and helps maintain Administrator writes media releases and manages the Initiative’s social media channels the Initiative’s social media channels. and website. Karen works part-time with The New Simone also engages with the Initiative’s Linda has worked in communications at Zealand Initiative and is responsible for members, collates our Annual Report the Dutch Postcode Lottery, BankGiro accounting and payroll. and member updates, and works with the Lottery, and FriendsLottery in The leadership team as they scope, write and She holds a New Zealand Diploma in Netherlands. She holds a Bachelor’s publish research reports. She engages Business and Accounting and has more degree in Communications. with the media to facilitate opportunities than 20 years’ experience working in for the team to discuss their research finance and administration for various across TV, print and radio. companies in New Zealand and abroad. Helene Luey She has worked in communications O’ice Administrator at The Royal Australasian College of & Event Coordinator Physicians and New Zealand Post. Simone holds a Bachelor’s degree in Helene looks after the day-to-day running Media Studies and Classical History from of the Initiative’s o‘ice. She works closely Victoria University of Wellington. with the Operations Director to plan in- house and external events and helps keep the website updated. She also collates the Initiative’s weekly newsletter, Insights.

Helene has worked for many years in event coordination, administration and

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NZIJ0195_Annual_report_2020.indd 38 9/03/21 4:16 PM firm Bell Gully, with the last five years as Our board Barbara Chapman Chairman, specialising in construction, (Deputy Chair) commercial property and major Chair and Independent Roger Partridge projects. He has been an Independent Director Chairman, The Director of Tainui Group Holdings New Zealand Initiative Barbara Chapman was appointed Limited since March 2011. Deputy Chair of The New Zealand Initiative’s Board of Directors in 2019. She served as Chief Executive Dr Oliver Hartwich Roger Partridge is Chairman and a and Managing Director of ASB Bank Executive Director, Co-founder of The New Zealand from 2011 to 2018. Since 1994, she has The New Zealand Initiative, and is a senior member of held diverse senior executive roles with Initiative its research team. He led law firm the Commonwealth Bank Group of Bell Gully as Executive Chairman Oliver Hartwich is the Executive companies, having started her career from 2007 to 2014, after 16 years as a Director of The New Zealand Initiative. as Chief Manager of marketing at ASB. commercial litigation partner. Roger Before joining the Initiative, he worked Barbara is the Chair of Genesis Energy was Executive Director of the Legal for leading think tanks in London and and an Independent Director of Fletcher Research Foundation, a charitable Sydney as well as in the UK House of Building, IAG and the publisher of The foundation associated with the Lords. His research covers a broad New Zealand Herald, NZME. She was University of Auckland, from 2001 to range of policy issues, and his articles named New Zealand Business Leader 2009, and was a Member of the Council have been widely published. of the Year in 2017 and was made a of the New Zealand Law Society, the Companion of the New Zealand Order governing body of the legal profession of Merit in the 2019 New Year’s Honours in New Zealand, from 2011 to 2015. Roll for services to business. Stephen Jennings He is a Chartered Member of the CEO and Founder, Institute of Directors, a Member of the Rendeavour editorial board of the New Zealand Law Review, and a Member of the Matthew Cockram Stephen Jennings is one of Mont Pelerin Society. Chief Executive, New Zealand’s most successful Cooper and Company entrepreneurs. For more than 20 years, the Taranaki-born economist and Matthew Cockram serves as the investor has been living and working Chief Executive O‘icer and Principal in emerging markets. A pioneer of of Cooper and Company NZ. capital markets in Central and Eastern Prior to that, he spent 20 years at law Europe and Africa, he is responsible

The New Zealand Initiative — 39

NZIJ0195_Annual_report_2020.indd 39 9/03/21 4:16 PM for more than $200 billion worth of through public sector and infrastructure Scott Perkins investment into these regions. engagements, with particular emphasis Non-Executive Director, on central government departments, Woolworths Ltd and As leader of Africa’s largest urban transport, education, and housing. Brambles Ltd development company, Rendeavour, Linda is a Board Member of Weltec Stephen now helps build city-scale and Whitireia polytechnics and Studio Scott Perkins is a Non-Executive developments in some of the fastest- Pacific Architecture, and a Member of Director of Brambles Ltd, Origin Energy growing cities in Kenya, Ghana, Nigeria, Women’s Infrastructure Network advisory Ltd, and Woolworths Ltd. He is an Zambia, and the Democratic Republic board. She owns two childcare centres active participant in the not-for-profit of Congo. in Wellington, which were established communities in Australia and New as a lighthouse of best practice in early Zealand, and has had an extensive career childhood education, and is a former in financial services. He was head of John Judge Trustee of Wellington Zoo. corporate finance for Deutsche Bank Independent Non- Australia and New Zealand. Executive Director Neil Paviour-Smith John Judge has been Chief Executive of Managing Director, Chris Quin Ernst and Young New Zealand, Chairman Forsyth Barr Chief Executive, of ANZ Bank, and Chairman of Accident Foodstu’s North Island Compensation Corporation. He is also Neil Paviour-Smith is the Managing a former Director of Fletcher Building Director of Forsyth Barr, a leading Chris Quin was appointed CEO of and Fletcher Building Finance. John is a New Zealand share-broking firm and Foodstu‘s North Island Ltd in 2015. Prior Member of the Otago University School investment bank. He is a Director of to joining Foodstu‘s, Chris was CEO of of Business Advisory Board. the New Zealand Exchange (NZX) and Spark Home, Mobile and Business and Chartered Accountants Australia and led the company through its successful New Zealand, and a Council Member of rebranding from Telecom to Spark. From Linda Meade Victoria University of Wellington. 2008 to 2012, Chris was CEO of Gen-i Director Australasia (now Spark Digital), and was Acting CEO of Spark Group for three months in 2012. Linda Meade was a Partner at Deloitte New Zealand from 2013 to 2020, and then she established her own advisory firm. She continues to play a leadership role

40 — The New Zealand Initiative

NZIJ0195_Annual_report_2020.indd 40 9/03/21 4:16 PM Our members

Accordant Fletcher Building Russell McVeagh Not for Profit Acumen Republic Foodstu‘s North Island Southern Cross Health Tainui Group Holdings Air New Zealand Forsyth Barr Society University of Auckland ANZ Freightways Stephen Jennings ASB Gallagher Group Stobo Group Ltd Honorary Members Auckland Airport Genesis Tappenden Holdings Tony Carter Avanti Finance Google Limited Sir Roderick Deane Bell Gully Greymouth Petroleum TIL Logistics Group Bob Field BNZ Grant Samuel Tilt Renewables Catherine Isaac Boag Allan SvG Heartland Bank Todd Corporation Sir Robert McLeod British American Tobacco Infratil Toyota Peter Shirtcli‘e Cameron Partners Imperial Brands Trustpower Alumnus Members Chapman Tripp Jarden The University of Waikato Paul Baines Chartered Accountants Janssen Uber Charles Bidwill (Australia and New Jim Grenon UP Education Dean Bracewell Zealand) Kiwibank Vero Bridget Coates Chorus Kiely Thompson Caisley Vodafone Dame Jenny Gibbs Cityguard Lion Wellington Airport Murray Jack Coca-Cola Amatil (NZ) Mainfreight Wesfarmers Alan Judge Contact Energy Mastercard Westpac John Judge Cooper and Company McKinsey and Company Ian Kuperus Countdown Mercury John La Grouw DCVC Data Collective Meridian Sir Chris Mace Deloitte Myers Family Scott Perkins Direct Capital NZX Sjoerd Post Downer PortfolioConstruction David Richwhite Du‘y Books in Homes Forum Geo‘ Ricketts EY PwC Sir Gil Simpson

NZIJ0195_Annual_report_2020.indd 41 9/03/21 4:16 PM NZIJ0195_Annual_report_2020.indd 42 9/03/21 4:16 PM The New Zealand Initiative Annual Report 2020 © The New Zealand Initiative 2021

Published by The New Zealand Initiative PO Box 10147 Wellington 6143 New Zealand www.nzinitiative.org.nz

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NZIJ0195_Annual_report_2020_COVER.indd 4-6 9/03/21 3:36 PM ANNUAL REport 2020

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