ANZ Bank says that card spending on restaurants and bars was down 6.3% year on year. Photo / Alex Burton
Cost of living eating into hospitality sector
Reading “Hospo crisis” in the Business section on Saturday disturbed me. I can’t begin to imagine how the impact of rising rates weren’t on the radar years ago.
Anyone who’s lived long enough will know that housing mortgage interest rates, along with rates of inflation, can seem random but as one who has lived through a record high interest rate in March 1987 of over 20% and the same decade when inflation spiked to a high of 18.4% I can actually join dots.
Interest rates were at a record low with an official cash rate of 0.25% in 2020 and have now risen to 6.5% to almost 7% in some cases. People who had such fun buying houses way beyond their means with a huge mortgage did sums and decided they were able to make their payments to the banks as long as the interest rates stayed low.
Well good luck with that as that will rarely happen, particularly in a volatile global economic climate. We and our cohort were pretty much appalled that this was being allowed to happen.
I have on good authority from a bank mortgage expert that staff weren’t allowed to warn the potential mortgagee that they wouldn’t be able to pay the mortgage back, on current income, if rates increased above a certain level. Surely banks could have shown a graph to customers showing interest rates and rate of inflation over successive years; the then potential mortgagee would do their own sums and work this out.
Now we have the flow-on effect of mortgagee sales, struggling retail and restaurants doing it tough amid the consequent downturn. ANZ Bank says that card spending on restaurants and bars was down 6.3% year on year — about the same amount as some mortgages. Where were the warnings and why weren’t people more aware?
Helen Hickford, West Auckland.
Leadership styles
A week can be a very revealing time in politics.
In the US there’s a new kid on the political block and the bullying and name-calling has begun.
Back in New Zealand, David Seymour played dress-up as the Prime Minister while Dad was away and strayed clumsily into an area where others feared to tread by making an “observation” about the Reserve Bank Governor’s next move regarding the official cash rate.
With a little maturity, Seymour may learn to stay in his lane. Then one current PM and one past one apologised abjectly for the abuse in care report findings released this week. Both showed compassion and regret for the horrific damage the survivors now live with.
Swift redress will be the next challenge, and hopefully those apologies won’t ring hollow. So, we have had three examples of very different styles of leadership on display this week, and it’s easy to figure out what are some of the qualities that make a good leader: hubris or humility, and sincerity, or sound bites.
Mary Hearn, Glendowie.
Beacon of hope
I am writing to express my optimism and support for the new Health NZ commissioner, Lester Levy. Having listened to his recent addresses, I am encouraged by his straightforward approach and his evident commitment to addressing the challenges within our health system.
Dr Levy’s refreshing perspective, which eschews blame-shifting and instead focuses on constructive action, is a welcome change. It is clear that he understands the gravity of the situation facing Health NZ and has articulated a clear, honest plan to navigate through it.
This approach instils confidence that he has both the vision and the capability to elevate our health departments to the standards our community deserves.
I believe Dr Levy’s willingness to tackle difficult decisions head-on will prove invaluable in steering Health NZ towards a more efficient and effective future. His leadership is a beacon of hope, and I sincerely hope that he receives the full support of all stakeholders in this endeavour.
Wishing Dr Levy all the success in his crucial role.
Alan Walker, St Heliers.
Modifying Trump
Bruce Cotterill’s mystifying take on Donald Trump as having a “modified demeanour” is one of several concerning aspects of his opinion column (Weekend Herald, July 20).
Among them is his happiness to parse the language used by Debbie Ngarewa-Packer in her passionate advocacy for her people against what she rightly sees as this coalition’s threats to them. He doesn’t bother to note that nowhere does she use the language of rape, murder or family threat directed at female politicians, scientists and commentators by anonymous trolls who no doubt delight in the coalition’s minority parties’ policies against Māori.
Peter Beyer, Sandringham.
Church abuse
The report on abuse in care has been released, and it is grim. There must be many millions due in compensation, and so there should be.
Some of these poor children were hurt in state care, and the state must provide redress. But others suffered in faith-based institutions, and the relevant religious organisations must face their responsibilities.
I suggest the churches be taxed at normal business rates, and the resulting funds ringfenced as compensation for the victims.
Genuine religious faith does not tolerate the decades-long brutalisation of innocents.
John Roy, Ōmokoroa.
Unhealthy argument
I read with disbelief and some sadness the opinion piece contributed by Andrew Little on the health reforms that he began, then abandoned (NZ Herald, July 25).
This change was his own idea, not supported by the expert review he commissioned. Nobody I know of in the health system believes that triggering major administrative change in a struggling system in the throes of a pandemic was a sensible move, but Mr Little apparently knew better.
I am particularly struck by his justification: “The number of Ministry of Health staff whose job was to negotiate with DHBs just to get things done was in the hundreds”.
Those of us who have spent a lifetime working in the health system would have seen that as a reason to abolish the ministry, not the DHBs.
Ross Boswell, Christchurch.
Smokes and mirrors
Correspondent David Barber is spot on talking about the Government’s breathtaking duplicity on tobacco laws (Weekend Herald, July 20) after binning the previous regime’s groundbreaking policies to reduce tobacco use, plus now halving some tobacco taxes. Jeff Hayward in the very next letter rightly too condemns the appalling Government actions on tobacco use.
So, as suggested by David, are these despicable actions because the Associate Health Minister (or is that non-health minister?) chaired an organisation that received funding from tobacco companies? Or alternatively is it really driven by the fact that very powerful Winston Peters has a long history as a very heavy smoker?
Surely in the interests of NZ health now and in future years it is high time to put New Zealand first and keep our smoke-free laws plus no halving of tobacco taxes? Time will tell.
Like David I smoked my first cigarette at age 15, but took one puff and I did not enjoy it so immediately threw it away and I have not smoked since.
Lucky me for my lifetime of good health not being always attacked by Big Tobacco. Please try to get your teenage children to never smoke as it is a magnificent life benefit for them. The best decision of my life.
Murray Hunter, Titirangi.
Nostalgic ads
I loved the trip down memory lane Shayne Currie took us on with “Ad genius grieves for creativity” (Weekend Herald, July 20).
Tony Williams’ ads - the Great Crunchie Train Robbery, the Dear John BASF ad, the “Bugger” Toyota ad and the Spot the Dog commercials - must be etched in the memories of many New Zealanders.
It was so interesting getting an insight into how advertisements were made back then. People were respected, creativity was encouraged and allowed to flourish, there wasn’t a battle of egos, there was fun and clients didn’t come on set.
It sounds like the workplaces were relaxed and supportive, and the results were fantastic.
Lorraine Kidd, Warkworth.
An armed robber starts with a four-year 10-month jail sentence, reduced to four months’ home detention - a 65% discount for being caught. Maximum sentence 168 months’ imprisonment. His sentence four months, outside, at home, doing what he wants. His real discount is 97.6%. Consequences for offending? Rehabilitation? Chances …. yep ... 2.4%
Ian Doube, Rotorua.
Roman Catholic schools have always been subject to the same inspections as state schools as conducted by the Education Review Office to ensure standards are met, which raises the question what was the Minister of Education, school inspectors and the ERO in the period from 1950 to the present time doing for their well-paid tax remuneration when so many cases of child abuse were running riot under their very noses.
Gary Hollis, Mellons Bay.
I am curious about the situation of MP Darleen Tana. I believe she was a list member of the Green Party before she resigned and became an independent. If this is correct, as a list member in Parliament, does she have the right to become an independent Member of Parliament when she wasn’t voted in by the voting public? If not, why is she still there?
Pamela Baird, Taupō.
Looking at the way many of our civil service departments appear to have approached their redundancy processes, in response to Government edicts about reducing costs, I have formed the opinion that one of two reasons for the success of Public Service Association legal cases (or both at the same time) must be in play given the requirements of the Employment Relations Act 2000 to observe due process, and given the availability of many previous cases, either the executives in charge of these processes appear to be exhibiting some level of incompetence or perhaps a deliberate effort to subvert the intent of the elected Government parliamentarians. The only outcome will be more money spent in divisive and acrimonious argument and no attention turned to desired efficiency of the affected departments.
Nigel Meek, Raglan.
If Donald Trump really did say that Kamala Harris was as “dumb as a rock” it shows his limited use of the English language, and his very limited understanding of intellect and intelligence given her qualifications.
Rae Edgar, Mt. Albert.
I didn’t think political statements were allowed on the rugby field, but in the All Blacks vs Fiji match I counted at least five players with bandages on their right ear.
Doug Hannan, Mount Maunganui.
If Chris Penk as Building and Construction Minister is considering lowering insulation standards because they increase cost, can I then seek to buy a car without seatbelts, ABS or airbags on the basis that all these features - only necessary if I have an accident - add to the vehicle’s cost?
Gerard Robertson, Greenlane.
A few months ago David Seymour told us that legislation aimed at preventing young people from accessing tobacco products was an example of the “nanny state”. Now he says that if people don’t behave themselves the Government may have to restrict access to nitrous oxide cannisters used in baking. His libertarian instincts seem as fickle as the weather.
Rowan Hill, Mt Eden.
I agree that Griffin’s biscuits are having us on, reducing the size of the biscuit to enhance their return. They are now eaten in one bite. Can I suggest there is a very good alternative to the old traditional Gingernut which is larger and has real ginger in them. Check out your supermarket shelves. They even dunk well.
Lynne Lagan, Takapuna.
How a resilient Kiwi village hopes to bounce back from a big drop in visitors.