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Scoop
2 days ago
- Health
- Scoop
Political cosyism behind 3rd medical school decision-making
On 21 May I was introduced to two new words (always a moment of light excitement for me) by Dr Bryce Edwards, Director of the newly established Integrity Institute which publishes regular Integrity Briefings. On this occasion the new word was 'chumocracy' and 'cosyism': Chumocracy and cosyism. He was referring to the work of Auckland University Professor of Economics Robert MacCulloch who was calling out 'soft corruption' by political and business elites in Aotearoa New Zealand. His focus included government, banks, big business and the rightwing 'thinktank' New Zealand Initiative. Such was the strength and persistence of the hostile response from these elites that he felt sufficiently pressured to close his website. The core of MacCulloch's argument is that New Zealand is run by a 'chumocracy' of elites who are connected by what he calls 'cosyism'. Third medical school announcement These were the words that I began to think about after absorbing the announcement by Health Minister Simeon Brown and Universities Minister Shane Reti early in the afternoon of 21 July that it was proceeding with the proposed third medical school at Waikato University: Official announcement. Later that the same day I was interviewed about the decision on Radio New Zealand's The Panel where my main focus was on the poor process which was likely to lead to an eventual poor outcome: Medical school decision based on poor process. Nearly two years earlier I had outlined my concerns about the Waikato University proposal in an article published by BusinessDesk (26 August 2023): Third medical school caution. What is the third medical school The new medical school is to provide a four-year medical degree for students who already are graduates with a non-medical degree to work as general practitioners (or as other rural doctors) in regional and rural areas. The medical degree at the existing two medical schools, Auckland and Otago, is five years. The advocated expectation is that the proposed Waikato Medical School will be graduating 120 doctors a year once it is up and running. With its opening scheduled for 2028 the first graduates should start working as general practitioners or other rural doctors at the earliest in 2037. This gap comprises both the time at the medical school and the time as resident (junior) doctors in training. Last year the Ministry of Health commissioned a report which advised that that Waikato's teaching model would be similar to the model in Wollongong University, south of Sydney. Reportedly 45% of the latter's graduates become GPs of which around 30% proceeded to work in rural areas. In 2017 the Auckland and Otago medical schools had proposed that they be allowed to jointly establish a new joint 'school of rural medicine'. However, while the previous Labour-led government and Ministry of Health was favourably disposed to this initiative, progress was understandably impeded by the Covid-19 pandemic. In a memo to then Health Minister Shane Reti in September last year, Treasury recommended that Auckland and Otago Medical Schools be asked to present a counter-factual argument to the Waikato proposal. However, it appears that no such invitation was made. Analysis by the Integrity Institute The best commentary I have seen on this decision has come from Bryce Edwards in another Integrity Briefing published the same day as the Government's announcement and after my The Panel interview (21 July): Costly case study in policy capture. Edwards also drew upon the excellent investigative work of Radio New Zealand's Guyan Espinar. Consistent with his above-mentioned piece on 'chumocracy' and 'cosyism' he describes the decision as: … not, at its core, a decision about health policy. It is a decision about political power, influence, and the erosion of good process. This project serves as a textbook case study of policy capture, where the interests of a well-connected institution, amplified by high-powered lobbyists, have overridden expert advice, fiscal prudence, and superior alternatives. Later in his piece he adds: This lack of transparency and due process is antithetical to good governance. The entire Waikato med school saga has unfolded via secret contracts, private lobbying meetings, and politically wired relationships – all largely hidden from the public until journalists and watchdogs pried it into the light. Backing this up Edwards draws upon many questionable process features including: Waikato Vice-Chancellor Professor Neil Quigley working 'hand-in-glove' in 'partisan coordination' with Shane Reti before the last election and promising the proposed school would be 'a 'present' to a future National government'. Waikato University helping pay for the National party's campaign announcement of the medical school plan (about $5,000). Government officials seeing 'red flags' in the proposal including alarm bells ringing from Treasury, the Tertiary Education Commission and the Ministry of Education warning of bloated costs, duplication risks and logistical hurdles. The use of two of the most well-connected lobbyists: initially former Labour senior adviser Neale Jones and more substantially former National cabinet minister Steven Joyce. Joyce's firm was paid about $1 million over three years by Waikato for 'consultancy' (le, leveraging his political influence). Questionable procurement in the way Waikato University hired Joyce leading to a public 'scolding' by the Auditor-General John Ryan. Ignoring the arguably better alternative of expanding the existing Auckland and Otago medical schools which were already running rural immersion schemes and satellite programs geared toward rural health. Edwards does not hold back: At its core, the Waikato medical school saga is an illustration of how not to make public policy. The process has failed every basic test of transparency, public accountability, and evidence-based decision-making. A public university and eager politicians cooked up a major spending initiative as a political favour, greased by lobbyists and implemented via dubious means. The normal checks and balances – open procurement, independent policy analysis, genuine stakeholder consultation – were subverted or ignored. It's the kind of deal that breeds public cynicism in politics, the sense that big decisions are made on behalf of the powerful or the connected, not the public. Further: By greenlighting this project in July 2025, ministers have signalled that political paybacks matter more than prudent spending. They have effectively rewarded a campaign of lobbying and pressure that sidestepped the usual contest of ideas. That sets a horrible precedent. It tells every other vested interest: hire the right insiders, make the right donations or deals, and you too can get the government to write a big cheque, officials' advice be damned. And: The Waikato medical school greenlight might be a political win for a few, but it's a loss for New Zealand's standards of governance. It undermines confidence that our health investments are made wisely and fairly. And it should prompt some soul-searching in Wellington: if this is how we make big decisions now, what does that say about who really runs the country? Unconvincing contrary views There have been contrary analyses supporting the Government's decision which I find unconvincing. Luke Malpass, Stuff Political, Business & Economics Editor and formerly holding a leadership role in the New Zealand Initiative expressed a negative view of current medical schools describing them emotively, but without substantiation, as a 'duopoly'. Writing in The Post (22 July; paywalled) in a flaky critique he dismisses those critical of the process, presumably including Bryce Edwards, as 'weird': Flaky rather than investigative. Two days later Waikato University ethics professor and philosopher Nick Algar wrote a paywalled opinion piece in The Post abstractly arguing that those critical of the Government's were guilty of 'sloppy thinking'. This reminded me of the expression 'pot calling the kettle black': Sloppy thinking in the debate over Waikato medical school | The Post Sloppy analysis of 'sloppy thinking'. He also reminded me of Oscar Wilde on philosophy although without the latter's famous and infamous wit: 'My philosophy? I'm always right and you are wrong.' The last word Let's leave the last word to the action of the Government in releasing its redacted 'cabinet business case' material at 6.45pm last Friday as reported by the Otago Daily Times the following day: Politically expedient timing of third medical school case. This timing has been a common practice of successive governments recognising that this is the most difficult time for media scrutiny before it is taken over by other news. If the difficult to substantiate claim of $50 million savings per year stood up to rigorous scrutiny it would have been released at a time convenient for media scrutiny. But 'chumocracy' and 'cosyism' necessitated otherwise. Ian Powell Otaihanga Second Opinion is a regular health systems blog in New Zealand. Ian Powell is the editor of the health systems blog 'Otaihanga Second Opinion.' He is also a columnist for New Zealand Doctor, occasional columnist for the Sunday Star Times, and contributor to the Victoria University hosted Democracy Project. For over 30 years , until December 2019, he was the Executive Director of Association of Salaried Medical Specialists, the union representing senior doctors and dentists in New Zealand.
Otago Daily Times
21-07-2025
- Health
- Otago Daily Times
‘Otago is being overlooked'
A new medical school will be established at the University of Waikato. File photo The government's backing of a third medical school at Waikato is yet more evidence it cares little about Dunedin, opponents say. Health Minister Simeon Brown said yesterday Cabinet had approved $82.85 million in government funding towards the project, with the university chipping in more than $150m. The numbers differ from National's policy heading into the 2023 election. Then, it pledged $280m for a third medical school at Waikato University, with the university to raise a further $100m. The school would also open in 2028, a year later than National had promised, but still with an initial roll of 120 students. The University of Otago and University of Auckland — which run the country's two existing medical schools — had submitted to the government they could train more medical students for significantly less than the cost of establishing a new medical school. Megan Pōtiki. PHOTO: ODT FILES Otago Polytechnic executive director Dr Megan Potiki said she was surprised by the decision, "which even Treasury had described as unaffordable". "Otago Polytechnic has concerns about the potential impact on clinical placements for our nursing ākonga [students], and on the long-term security of our industry-leading nursing programme." Dr Potiki's comments come after the government's decision to place Otago Polytechnic in a federation model rather than being fully stand-alone. "It appears Otago is being overlooked by this government with their recent decisions, and Otago's proud tertiary track record is being undermined." Otago University, which had been strongly opposed to the idea, yesterday had a mixed response. . Megan Gibbons. PHOTO: SUPPLIED Pro-vice-chancellor for health sciences Prof Megan Gibbons said the university was disappointed the government did not follow the alternative and more cost-effective option of further increasing the intakes into the country's existing medical schools. "However, any investment that supports growing and sustaining the health workforce is a step towards strengthening care for our communities — particularly in rural and under-served regions." Otago was committed to working alongside others in the sector to ensure the best outcomes for the health of all New Zealanders, she said. Auckland University dean of medical health services Prof Warwick Bagg would not comment on that university's previous opposition to the plans. Instead, Prof Bagg looked towards the positive. "Today is a historic day for medical education in New Zealand. The government has made its decision, and the good news is the extra 120 students." Others were not so sanguine. Bryce Edwards. PHOTO: ODT FILES Director of The Integrity Institute Dr Bryce Edwards issued a scathing assessment of the decision that said it had been political rather than one made in the best interests of the health system or the education system. "It's a stark contrast to have the new Dunedin hospital really restrained in its build and essentially funds cut back, producing a less than optimal new hospital at the same time that $83m is going to be spent elsewhere in the health system that, frankly, very few experts believe is a good spend of money. "The people of Dunedin and Otago should feel aggrieved." Taieri MP Ingrid Leary, of Labour, said nothing about the decision had been transparent. "There's nothing rational about it either. "Given the cuts to the new Dunedin hospital, the vindictive and appallingly communicated decision last week by Penny Simmonds regarding Otago Polytechnic, and now this decision that effectively kneecaps our medical school, it is clear that Christopher Luxon and his three-headed government don't care one iota about the deep South." In August last year, Treasury shared the concerns of the existing medical schools saying the plan was unaffordable and that there were other ways to achieve the government's goal of increasing the number of rural GPs. Green MP Francisco Hernandez said the government had committed to yet another irresponsible, white elephant project. "The quarter of a billion dollars on just capital costs for a third medical school would have been more responsibly spent on boosting the number of doctors that Aotearoa needs from tried-and-true training facilities at Otago and Auckland." University of Waikato vice-chancellor Prof Neil Quigley said it was "a landmark moment for New Zealand". "We will be offering a programme that selects and trains doctors in a fundamentally different way and will complement New Zealand's two existing medical schools."
Scoop
17-06-2025
- Business
- Scoop
New Zealand Rich List Exceeds $100 Billion Amid Cost-Of-Living Crisis
New Zealand's Rich List, compiled annually by the National Business Review (NBR), boasted last week that the country's wealthiest are now collectively worth more than $NZ100 billion. The figure increased from $95.55 billion in 2024, despite a brutal cost-of-living crisis and two recessions in the past 18 months. The nation of just 5.3 million people now has 18 billionaires, up from 16 last year. A dozen newcomers, with $4.3 billion, are among 119 individuals and families profiled by the NBR, who altogether have a total of $102.1 billion—equal to more than 40 percent of the country's annual Gross Domestic Product (GDP). Like similar reports posted internationally, the NZ list points to soaring wealth among a tiny privileged layer, even amid a gathering global economic crisis. Nine years ago the 2016 Rich List's wealth was just under $60 billion, rising to $72.6 billion two years ago. Commenting on the rapid increase in the concentration of wealth, Bryce Edwards, director of the Integrity Institute, noted: 'We are witnessing inequality grow towards heights approaching those of the early 20th century.' He described it as 'a roadmap of oligarchic power in New Zealand, complete with policy wish lists, political connections, and breathtaking displays of luxury that would make a Gilded Age robber baron blush.' New Zealand is already an extremely unequal society. According to Statistics NZ's Household Economic Survey in 2021, the richest 5 percent of individuals owned 43.1 percent of the country's wealth, while the bottom 50 percent held just 2.1 percent. Brothers Nick and Mat Mowbray, who with sister Anna Mowbray, founded Zuru Toys in 2003, topped the Rich List with $20 billion. The pair have been outspoken about their ambitions to be 'the next Apple, Google, Tesla' with a target of $10 billion in revenue within five years. Former list leader Graeme Hart is second, with an estimated net worth of $12.1 billion. Hart built his global packaging empire following his purchase of the state-owned Government Printing Office, for a vastly undervalued $23 million, during the 1984–90 Lange Labour government's public asset fire sale. Others to feature were prominent filmmaker Peter Jackson and his wife Fran Walsh, at fifth richest with a net worth of $2.6 billion. This year the NBR also launched a Women's Rich List, headed by Anna Mowbray and Lucy Liu, co-founders of online payments company Airwallex. Liu's company was valued at more than $10 billion in a capital raise in May. The publication profiled 14 women, all of them estimated to be worth between $20 and $100 million. The celebration of a handful of super-rich women comes after the right-wing coalition government last month passed the Equal Pay Amendment Act, designed to make it almost impossible for workers in female-dominated professions to claim that they are underpaid because of gender-based inequity. The primary source of the Rich Listers' fortunes is not the production of socially necessary goods and services. Their vast wealth derives almost entirely from parasitic activities such as financial investment and property speculation. Viaduct Harbour Holdings, owned by the Gibbs, Wyborn, Farmer and Green families—all of whom regularly appear on the Rich List—leases out areas of the expensive Auckland harbour waterfront to the hospitality, sports and accommodation sectors. The Gibbons, Guntons, Carters, and Wallaces have all built their fortunes on property development. A 2023 Inland Revenue Department (IRD) investigation into the wealth of the country's 311 richest individuals found that only 7 percent of their income is in a form subject to income tax. The remaining 93 percent comes from returns on investment, including financial assets and capital gains—all of which is either not taxed, or taxed at a lower rate than incomes. This privileged layer paid tax on their earnings at a rate of just 8.9 percent—less than half the 20 percent rate paid by someone on the average wage. Well-off New Zealanders are paying less tax than their peers in nine similar OECD nations, including Australia, Canada, the US, the UK, and five European countries, according to a Victoria University of Wellington study commissioned by Tax Justice Aotearoa last year. In 2024, New Zealand and Belgium were the only two OECD countries not to have a capital gains tax—though Belgium had other wealth taxes, which New Zealand does not. None of this prevents the wealthy elite from endlessly agitating for cutting corporate taxes, privatising public services, slashing welfare and cutting government 'bureaucracy,' all while seeking incentives for private sector 'risk takers.' The recent King's Birthday Honours awards celebrated former National Party finance minister Ruth Richardson, appointing her as a Companion of the NZ Order of Merit. Richardson is reviled in the working class for her infamous 1991 'Mother of all Budgets' which savagely cut welfare and thrust thousands of beneficiaries into poverty, imposing conditions of misery that still exist. The main opposition Labour Party meanwhile has consistently rejected any significant increase in tax on wealth. Despite campaigning in the 2017 election for a modest capital gains tax, in 2019 Labour Prime Minister Jacinda Ardern ruled it out. Her stance was endorsed by current leader Chris Hipkins. The Labour Party-Greens government from 2017-2023, like others throughout the world, exploited the COVID-19 pandemic to engineer a huge transfer of wealth to the ultra-rich. Property values and corporate and bank profits soared due to millions in subsidies, bailouts and tax concessions, and the Reserve Bank's quantitative easing and ultra-low interest rates. While the country has since had near back-to-back recessions, the impact has fallen entirely on the working class. The NZX50 index increased by 1,500 points or 12.74 percent during 2024, its best performance since 2020. The Reserve Bank's official cash rate cut from 5.25 to 4.75 percent last October gave the share market, dominated by investments in utilities, infrastructure and real estate, a strong boost in the final quarter of 2024. Political connections play a critical role in maintaining and boosting the wealth of the richest at the expense of ordinary people. Last year the National Party-led government delivered a massive tax cut for landlords, estimated to have cost $NZ2.9 billion, falsely claiming this would lead to more affordable rents. At the 2023 election, Rich Listers were among the most generous donors to the coalition parties, National, NZ First and ACT. Nick Mowbray gave hundreds of thousands of dollars to both National and the far-right ACT Party. Graeme Hart donated $700,000 to the right-wing parties over two years—$400k to National, $200k to ACT and $100k to NZ First. The rich are not shy about flaunting their wealth. Along with mansions and overseas apartments, several, including Peter Jackson, own private jets. Hart runs a multi-million dollar, 102-metre superyacht. A bid by Anna Mowbray and her husband, rugby player Ali Williams, to put a helipad on their property in the exclusive Auckland suburb of Westmere currently faces strong opposition from nearby residents and community groups. Speaking for the entire ruling class, Prime Minister Christopher Luxon gushed over the NBR's report: 'Isn't it fantastic that we have got people with ambition, aspiration and positivity, and we should be celebrating success.' But under Luxon's government, there is an escalating social disaster. Tens of thousands of people have lost their jobs and Radio NZ reported on June 9 that the net worth of all households declined by $4.185 billion in 2024. Already in 2023, 36.1 percent of households were scraping by on income that was either 'not enough' or 'only just' enough, according to Statistics NZ. In 2024, the Treasury estimated that nearly one-in-five children, 17.7 percent, were living in poverty. The New Zealand Food Network estimated this year that 500,000 people, a tenth of the population, is regularly dependent on food parcels. 16 June 2025
Kiwiblog
23-04-2025
- Business
- Kiwiblog
The party above the law
Bryce Edwards reports: New revelations this week show Te Pāti Māori still hasn't produced an auditor's report for its 2023 financial statements of political donations. The party told the Electoral Commission that a 'delay with the auditing firm continued to be a problem' in explaining why its 2023 accounts remain unaudited. This was reported yesterday by BusinessDesk's Denise McNabb – see: Still no sign of Te Pāti Māori audit report (paywalled) This excuse comes despite Te Pāti Māori having already paid the audit firm for the work, and it highlights a troubling pattern: the party has repeatedly failed to comply with basic electoral finance laws. Te Pāti Māori's ongoing issues with late and incomplete financial disclosures – from annual accounts to donation returns – raise serious questions about its commitment to legal obligations and political integrity. The general public should be concerned that a party which aspires to represent Aotearoa's indigenous voice is also gaining a reputation for flouting the rules meant to ensure transparency and trust in our democracy. Why would they bother to comply with the law, when the Police give them a free pass? The way you get compliance is to haul the party secretary into court. Instead the Police have closed the file, despite TPM now being almost 10 months later (and after three weeks it is meant to be escalated to a more serious offence).
