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Government announces spending cuts and changes to ‘save’ $4b

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The government says changes it is making to spending will save nearly $4 billion, including cuts to contractors and consultants.

A cumulative $1b will be saved come from a reduction in spending allowances by $250m and $500m each for the 2025 and 2026 Budgets, about $1.4b from baseline savings, and more than $1.4b in operating and capital savings. It comes on top of the $4b saved in the Budget in May.

At Monday’s post-Cabinet media briefing, Prime Minister Chris Hipkins said the steps were being taken to “fight inflation and ensure the government’s books return to surplus as soon as possible”.

He said a lot had changed in the months since Budget 2023 was released, including the Reserve Bank saying inflation could stay “stickier for longer”.

“While the fundamentals remain sound, and it’s clear the economic cycle we’re in will at some point come to an end, what’s important now is that the government maintains our balanced and responsible fiscal approach to set our economy up for success.”

In a statement, Finance Minister Grant Robertson said a review of savings had found underspends and money set aside for programmes that was no longer required.

“Public sector agencies are being required to trim 1 or 2 percent off their existing baselines. They have been directed to do this while protecting frontline services. To ensure this, I have excluded several agencies from the exercise entirely,” he said.

The agencies and areas off limits for spending reductions included: Superannuation, benefits and KiwiSaver; loans, finance costs, tax receivables; frontline health and education spending; NZDF, Police, NZSIS and GCSB, Whaikaka the Ministry for Disabled People, and the Offices of Parliament.

Robertson said this left 19 percent of government within scope for trimming baseline costs.

He said there would be ongoing funding reviews for agencies, to understand the drivers of baseline expenditure and look for efficiencies.

“We’ve also changed the processes around what is called out-of-cycle expenditure, i.e. calls for spending outside of the normal Budget cycle, where there will now be a higher bar for agreement.”

He said the money saved would all be treated as savings rather than money available for new spending, to help curb inflation and make up for a worsening economic outlook.

“The government’s published accounts for the 11 months to the end of May showed that tax revenue was more than $2b behind where Treasury had forecast it to be at the Budget. It should be noted that government spending was in line with forecasts during this period,” he said.

“Since May we have seen further deterioration in the global economy, particularly in China. This will continue to have a direct impact on the New Zealand economy, and it is important that the government responds to meet our balanced and responsible fiscal goals.”

Cuts to consultant and contractor spending
As had previously been reported, agencies were also being directed to cut spending on contractors and consultants.

“The government is committing to getting contractor and consultant spending to below 11 percent of public service workforce spending. This will save about $165 million per year, representing an 18 percent reduction on current spend.”

Robertson said the government was committed to getting contractor and consultant spending to below 11 percent of public workforce spending, saving approximately $165m per year. He said Labour had brought spending on consultants and contractors down when it came into government, but more had needed to be spent on it during the Covid-19 response.

“After inheriting a spend of 13.4 percent in 2017/18, we reduced that to 10.4 percent in 2021 before it spiked – largely due to Covid-19 related expenditure in 2021/22 at 14.6 percent.”

He said how that would affect public service headcounts was yet to be decided, but the government was already asking departments to reconsider whether they should fill vacancies.

“There isn’t a specific headcount target here, there is a dollar target.”

Hipkins, Robertson target National’s tax cuts
Robertson said the level of savings “went as far as we can do in good conscience to meet the balance and protect frontline services”.

“Going further would start to undermine the investments in public services that have been made and those that are needed to support New Zealanders.

“Those who would propose deeper cuts to pay for tax cuts skewed towards higher earners will be placing in jeopardy the public services that New Zealanders rely upon. To make that clear: The National Party would need around $11b across the forecast period to pay for their tax cut proposals, above and beyond these savings.”

Robertson said that $11b was composed of the changes to tax brackets, and interest deductability, announced by National.

Hipkins also targeted National’s tax cuts.

“Uncosted, untargeted tax cuts for millionaires like those promised by the opposition are simply not affordable,” he said.

“Likewise, broad sweeping statements about slashing the number of public servants and abolishing entire government departments is destabilising and it also isn’t upfront with New Zealanders.”

Monday’s post-Cabinet briefing follows Hipkins’ speech on Sunday in which he ruled out working with New Zealand First following October’s election, saying he could work with the Greens and Te Pati Māori, but not Winston Peters.

Peters told Morning Report on Monday morning he had ruled out working with Labour, calling Hipkins’ speech “PR and excuses”.

Recent polls have had ACT and National sitting pretty to form the next government, but the polls remain close – and NZ First is starting to register above the 5 percent threshold required to get into Parliament without winning an electorate seat.

 

VIA RNZ

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Trump administration denounces CNN for airing Iranian leaders’ messages

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The Trump administration denounced CNN on Thursday (local time) for airing a portion of the new Iranian supreme leader’s public statement, the second time in three days the network has been targeted for reporting on how the regime is responding to the American attacks.

The attack illustrated the care news outlets must take in reporting during wartime, and the responsibilities of American journalists to report the perspective of countries its government views as enemies. It also exposed inconsistencies.

The message of Supreme Leader Ayatollah Mojtaba Khamenei during his first public statement since he succeeded his father, who was killed in an Israeli airstrike, was widely available elsewhere.

The White House said on social media that “fake news CNN just aired four straight minutes of uninterrupted Iranian state TV, run by the same psychotic and murderous regime that prided itself on brutally slaughtering Americans for 47 years”.

Earlier CNN interview criticised by Trump’s communications leader

Two days earlier, White House communications director Steven Cheung took issue with CNN anchor Erin Burnett’s interview with Hossein Mousavian, a former Iranian nuclear negotiator. Burnett asked Mousavian what he had been hearing about the Iranian government’s interest in having talks with the United States. There wasn’t much, he said.

“Ever notice how CNN just regurgitates quotes and unverified information from Iranian terrorists?” Cheung wrote on X.

“Total disgrace. They have become the murderous Iranian Regime’s version of Pravda,” he said, referring to the official newspaper of the former Soviet Union.

CNN did not address Cheung’s statement but did respond to the White House attack on Thursday. It noted that CNN, Sky News and Al Jazeera also showed portions of the ayatollah’s statement live.

“The world is watching with anticipation which direction this war will take,” CNN said. “Purported remarks from Iran’s new supreme leader are a critical component in helping audiences understand where this conflict is heading and were aired for their obvious news value.”

Other news outlets, including The Associated Press, sent out alerts on what Khamenei said. His vow to keep up attacks on other Arab countries in the region and plans to choke off the world’s oil supply were headlines.

Mojtaba Khamenei, the son of Iran's Supreme Leader, Ayatollah Ali Khamenei, center, attends the annual Quds, or Jerusalem Day, rally in Tehran, Iran, May 31, 2019.

The New York Times led its website with a story on the speech in its immediate aftermath, later writing that the speech “was an early indication of how the new supreme leader would approach the war, as well as how he would lead the country”.

CNN has long been a favoured target of President Donald Trump, dating back to his first term. It’s a particularly vulnerable time for the network with Paramount Global’s agreement to purchase CNN’s parent company, Warner Bros Discovery, raising questions about its future editorial independence.

CNN showed a news anchor reading a portion of Khameini’s remarks in Farsi, with an English translation. It did not air them in full. After the speech, correspondent Nick Paton Walsh gave a debrief to anchor Kate Bolduan, noting how the non-appearance of the leader — reportedly injured in an air attack — was as important as what he said.

“We were waiting to see the face of the man to have proof of his health and survival,” Walsh said, “and they’ve not met that moment. Instead, a handwritten message, it seems, that mostly reiterates things we kind of already knew.”

A social media message board for Iran’s point of view

The Tech Transparency Project has reported that several Iranian leaders and institutions maintain verified accounts on X, formerly Twitter, owned by Trump ally Elon Musk. CNBC said Thursday that Khamenei has one of them, and an X account with his portrait posted the text of his remarks, available in Farsi and in an English translation.

Even though Khamenei’s father is dead, an account with his portrait was active on Thursday, mainly reposting messages from his son. “The revenge we have in mind is not just because of the martyrdom of the illustrious Leader of the Revolution,” read one message posted Thursday. “Every member of the nation martyred by the enemy is a separate case that demands we seek revenge.”

X is officially blocked in Iran, although many use a virtual private network to bypass restrictions. A message sent to the platform on Thursday was not immediately returned.

There’s a long history of journalists seeking interviews with world leaders, even when they are regarded as enemies of the United States. Most notable was 60 Minutes correspondent Mike Wallace’s interview with Iran’s Ayatollah Ruhollah Khomeini in 1979, when that country was holding Americans hostage.

Thursday’s remarks by Iran’s new supreme leader were absolutely newsworthy and legitimate for CNN to air them, said Jane Ferguson, a veteran international correspondent and founder of the journalism platform Noosphere. It’s not the job of government leaders to pick apart what CNN is reporting, she said.

“We’ve always faced this,” she said, about when reporters interview leaders or other figures hostile to American interests. “This has been a bit of low-hanging fruit for a while.”

Historian Douglas Brinkley of Rice University said that it’s unfair for CNN to be singled out in this instance. He, too, believes it is newsworthy to learn what leaders of an adversary are thinking, but it’s important to make sure that journalists are careful.

“You have to be leery of being used as a propaganda tool by the Iranian regime,” he said. “On the other hand, knowing what the enemy is saying and looking for a sign of a peace offering or a nuance is important … It’s a difficult balance.”

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University of Auckland building on fire

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A fire at the University of Auckland law school building has now been extinguished.

A Fire and Emergency spokesperson said there had been a fire at the University and six fire trucks were at the scene on Short Street. The call to 111 came through at about 2.40pm.

FENZ said the fire was now extinguished but crews will stay near the building this afternoon.

Staff and students were seen going in floor by floor, starting with level 6, to retrieve any belongings left behind

A student who was evacuated from the fourth floor of the building said it seemed the fire started on level two.

Police were at the scene talking to students who have been evacuated.

Student Talisha Lal said when the fire alarm went off she, and other students, thought it was a drill.

Lal said once she was out of the building, she could see smoke.

More to come…

~ RNZ 

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Teacher struck off after filming explicit videos at school

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An Auckland teacher has had her registration cancelled after recording explicit videos of herself urinating on the floor of a classroom and on a student’s belongings.

The New Zealand Teachers Disciplinary Tribunal found Lisa Marie Edmondson had committed serious misconduct.

The school was alerted to the content after the deputy principal of the school was approached by a member of the public who had come across a video on TikTok and recognised the setting. A search for the username led to a pornographic account.

The account contained more than 30 explicit videos which had been recorded at various locations over a period of two-and-a-half years.

In one of the videos, Edmondson appeared to urinate on the floor of a classroom with genitalia clearly visible. A second video showed the teacher urinating on a hat with a student’s name clearly visible in a lost property box.

The summary of facts stated there was an “ongoing urine smell” in some classrooms during the time of her employment which had been attributed to rats and mice. Bait stations had been set up during the school holidays but no rodent activity was noted. The tribunal said her students were “likely to have been adversely affected” due to evidence of an “unpleasant smell that required deep cleaning”.

While she was not visible in the videos, the teacher was recognised due to her voice and clothing.

Edmondson resigned in May 2023 after receiving notice of a formal investigation.

Following her resignation, Edmondson worked as a relief teacher at a second school before being invited to apply for a fixed-term position.

The tribunal found that Edmondson had failed to disclose her full employment history when applying for – and subsequently working at – a new school in 2023 and failing to inform her employer that she was the subject of a mandatory report and current investigation by the Teaching Council.

In her reflective statement, Edmondson acknowledged that she had let her students down and “was not the role model that I should have been for them”.

“I have accepted that the likelihood of returning as a teacher has ended. This has been a very difficult concept to accept because I loved teaching, loved being in the classroom and loved my students and their whānau.”

The tribunal noted Edmondson failed to address the conduct head on or express concern for her former students and colleagues.

Edmondson’s registration was cancelled and the former teacher was issued a formal censure. She was ordered to pay $3,255.87 towards the Complaints Assessment Committee’s costs and $582 to the Teaching Council.

‘I have let down so many people’

In a statement to Stuff, Edmondson said she had no choice but to accept the ruling, but regretted her actions.

“During a two-year period which covers this time I was suffering from extreme anxiety, I can’t explain why I did it other than self sabotage and treating myself badly for things that had happened. By the time it was reported, I really did not even remember and hadn’t done anything else.”

Her actions had impacted her children and her ability to provide for them.

“I can’t change what I have done, but can make sure it never happens again.”

~ RNZ

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