PM in the AM
PM in the AM
Dec 8, 2020
Wednesday, 9 December 2020
Play • 8 min

Paul Murray takes you through the day’s headlines and cuts through the spin. Listen to PM in the AM each morning to find out what will be making news today.

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The Mike Hosking Breakfast
The Mike Hosking Breakfast
Newstalk ZB
Mike Hosking: Treasury has it wrong on film subsidies
It must be hard working in treasury. When you’re wrong everyone thinks you’re a doofus, but when you’re right, you must get frustrated that no one listened to you. Treasury warned about the wage subsidy and company profits and wastage, they were right. Treasury warned about printing money and seeing interest rates plummet and the effect that would have on housing prices. Remarkably, it is suggested the Finance Minister was sceptical, which is shocking given how obvious it is. Now treasury’s latest warning is over film subsidies. They project we are handing out over a billion dollars’ worth in the next five years. Their concern is it's unlimited. In other words, there are no specific criteria other than you turn up and start making movies, and when you do, you get large tax breaks. This was dreamed up for Peter Jackson, who in the early days of Lord of the Rings told the government he could shoot anywhere and plenty of places were going to make it worth his while. So, a conservative government, National, caved to the subsidy industry, and not just that, revisited the criteria several years on and sweetened the deal. And that led to the debate over the race to the bottom. In other words, how much of a deal do you want to offer? At what point does it become farcical? Places like India, Ireland, and Canada have long been in the business and the simple truth is this: as wonderous as the South Island scenery maybe as a backdrop, if the dollars don’t make sense, they’ll do it elsewhere. And like most things, once you’ve bitten the bullet, who has got the gonads to bring it to a grinding halt? Do we like having a film industry? Yes, we do. Have we benefitted in a myriad of ways that may or may not be measurable by dollars? Yes, we have. Does it bring jobs and income outside the subsidies? Yes, it does. So, with hindsight I think we can say we did the right thing. But, if that’s true, why don’t we do it for other industries? Tech and space and cars and manufacturing - what’s so special about film, it needs a deal all of its own? The answer is glamour. We are star-struck. Never underestimate the pride factor: Middle Earth, Taika, Sam Neill, anyone that flys our flag in a high-profile way gets a freer ride than say the bloke who invented a machine in the back shed that none of us are quite sure what it actually does. And never forget our current predicament: given our debt, our closed borders, and destruction of tourism, $1 billion over five years to keep people in work and the world knocking at our door with their cameras seems a fairly decent sort of deal. Treasury, I think, might be wrong on this one.
1 min
NZ Everyday Investor
NZ Everyday Investor
Podcasts NZ / / Gorilla Voice Media
Sam Stubbs / Challenging the Status Quo/ Ep 139
The first question - _why are floating rate mortgages so expensive in NZ??_ Currently with the main banks, you can get fixed rate loan in the low 2% area, but floating rates with these same banks are between 3-4%. In a world now where it seems that interest rates are at no risk of increasing, and in fact, may still decrease further, a floating rate loan gives borrowers a tremendous amount of flexibility over fixed rates. Unfortunately to get this benefit though, you have to pay a hefty premium for it. Through Simplicity you may also qualify with them for a mortgage rate which is pretty much the same as the other banks in the low 2’s currently – but the interesting part is that it’s a floating mortgage. How is this possible is one question, then the next question becomes, why aren’t mainstream banks doing this already? Now on to the second question - we’re talking about the NZX -_ is the new Zealand stock exchange functioning in a way that is beneficial for stakeholders, not just shareholders?_ In recent years, we’ve witnessed more than one high profile company opt to list on the Australian stock exchange over the NZX – Why is this? The NZX is evolving, but is it moving in a direction that will help investors, other fund managers, and the bright spark business in NZ that ultimately want to stay here? Well Sam has an opinion on this also - enjoy! Check out the previous episode with Sam here: __________________________________________________________________ Like what you’ve heard? You can really help with the success of the NZ Everyday Investor by doing the following: 1- Tell your friends! 2- Write a review on Facebook, or your favourite podcast player 3- Help support the mission of our show on Patreon by contributing here 4- To catch the live episodes, please ensure you have subscribed to us on Youtube: 5- Sign up to our newsletter here NZ Everyday Investor is on a mission to increase financial literacy and make investing more accessible for the everyday person! Please ensure that you act independently from any of the content provided in these episodes - it should not be considered personalised financial advice for you. This means, you should either do your own research taking on board a broad range of opinions, or ideally, consult and engage an authorised financial adviser to provide guidance around your specific goals and objectives. If you would like to enquire around working with Darcy (an authorised financial adviser), you can schedule in a free 15 min conversation just click on this link _____________________________________________________________________________
54 min
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