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Posts Tagged ‘170000 new jobs’

National – self-censoring embarrassing statements?

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ministry of truth update

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There is  disturbing activity taking place on National’s website.  The Party is self-censoring itself and quietly, without fuss, removing certain embarrassing information from it’s website.

In the last few weeks, this blogger has been referencing quotes from Dear Leader Key on various issues.

One such quote was from John Key, who admitted that Labour left the country in a positive economic state to weather the oncoming 2007/08 Global Financial crisis;

“The level of public debt in New Zealand was $8 billion when National came into office in 2008. It’s now $53 billion, and it’s forecast to rise to $72 billion in 2016. Without selling minority shares in five companies, it would rise to $78 billion. Our total investment liabilities, which cover both public and private liabilities, are $150 billion – one of the worst in the world because of the high levels of private debt in New Zealand.”

The original URL – http://www.national.org.nz/mixed-ownership.aspx – no longer links to the original page  on National’s website, and instead automatically refers the User to a general page on the website;

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website - our programme

 

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An alternative URL – http://old.national.org.nz/mixed-ownership.aspx – leads to a page on the National website that is mostly blank;

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website - government share offer

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An empty page signifying empty promises? Appropriate.

Whilst this blogger has no screen-shot captured from the original article, entitled “Mixed Ownership”, Google’s webcache has retained a copy of the deleted page;

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Selling shares in five companies so we can invest in areas of need.

Responsibly managing the Government’s finances is one of National’s four priorities for this term in office.

We plan to offer minority shares in four energy companies and Air New Zealand to New Zealander investors, while retaining at least 51 per cent Government ownership.  This will help ensure the Government can spend money in areas of need – such as upgrading our hospitals and schools – without loading more debt on to our economy.

What is the Government’s share offer?

We’re going to change the ownership structure of five companies over the next three to five years, by offering shares to Kiwi investors.

This ownership structure is called mixed ownership, and we’re going to apply it to:

- Mighty River Power
– Meridian Energy
– Genesis Energy
– Solid Energy
– Air New Zealand, which is already successfully operating under mixed ownership.

The Government will maintain majority control of each company – at least 51 per cent – and New Zealanders will be at the front of the queue for the remaining shares.  In fact, we’ve made it law that no shareholder other than the Government can own more than 10 per cent of each company.

We expect selling minority stakes in the five companies will return between $5 billion and $7 billion to the Government.  In addition, the Government will continue to receive dividends on at least 51 per cent of each company.

This will broaden the pool of investments for New Zealand savers and deepen capital markets, helping Kiwi companies access the funds they need to grow.

Listing on the stock exchange will also provide stronger commercial discipline, transparency, and greater external oversight for these companies.  And it will give each company access to an alternative pool of capital for growth, other than the Government.

Mixed ownership is a win-win for New Zealanders and for the companies involved.  Our decision not to pursue “shares plus” provides certainty to investors about the future of the share programme.

New Zealanders will be at the front of the queue
We’ve always said that Kiwis will be at the front of the queue for shares in each company.  The Government will make buying shares easier for New Zealanders, while encouraging long-term share ownership.

To find out more about how we will achieve this, visit: www.governmentshareoffers.govt.nz 

Why partial share sales are important

More assets
Government assets are forecast to grow over the next four years, from $244 billion to $258 billion.  By selling less than 3 per cent of the Government’s total assets, we can inject between $5 billion and $7 billion into priority assets like schools, hospitals and other critical infrastructure New Zealanders need.  And we’ll be able to do this without loading more debt on to our economy.

Selling shares in these companies is not about reducing assets, it’s about finding a solution to help pay for their growth in coming years, while getting on top of debt.

We’ve established the Future Investment Fund, which will allow us to invest every single dollar raised through partial asset sales, in new assets.

In Budget 2012, we allocated the first $558.8 million from the Future Investment Fund for:

• Modernising schools – $33.8 million (of $1 billion total)
• Health sector needs, including redeveloping hospitals – $88.1 million
• Helping KiwiRail become commercially viable – $250 million
• Creation of the Advanced Technology Institute, to help New Zealand’s high-tech firms grow • $76 million for capital costs.

Controlling debt
Getting on top of debt – by responsibly managing the Government’s finances – is one of our priorities for this term in office.  Our economy is growing, new jobs are being created, and our public finances are improving. 

The Government’s partial share offers will free up between $5 billion and $7 billion that we can reinvest in taxpayers’ large and growing asset base, while reducing our need to take on extra debt to provide the important services New Zealanders need.

The level of public debt in New Zealand was $8 billion when National came into office in 2008.  It’s now $53 billion, and it’s forecast to rise to $72 billion in 2016.  Without selling minority shares in five companies, it would rise to $78 billion.  Our total investment liabilities, which cover both public and private liabilities, are $150 billion – one of the worst in the world because of the high levels of private debt in New Zealand.

Like every household in New Zealand, we know how important it is to live within our means by budgeting carefully and deciding on our priorities.

Our programme of minority share offers means more assets with less debt.

More information

What effect will this have on power prices?
In the nine years Labour was in government, power prices went up 72 per cent – or an average of 8 per cent a year – and the Government owned 100 per cent of the assets. 

We believe it’s not who owns the energy companies that influences prices, but the regulatory environment, which the National-led Government changed to increase competition.

In our last term of government, we reformed electricity industry regulation, removed inefficiencies and brought rising generation costs under control.  Prices only increased by 14 per cent in National’s first term.

In addition, the very effective “What’s my number” campaign by the Electricity Authority has made it easier for Kiwis to understand the choices they have, and the savings they can make by shopping around for electricity. 

As a result, in the 12 months from May 2011 to April 2012, 422,256 customers changed electricity retailers (or an average of 35,188 each month).

We’re helping keep pressure on the companies to retain customers by offering competitive pricing.

Labour would load our economy with more debt
The opposition has resisted this policy at every stage, yet when they were last in office, Labour applied a mixed ownership model to Air New Zealand.

In addition, between 1984 and 1990 they sold off 100 per cent of $9 billion worth of state assets, including Telecom and the Post Office Bank.

By opposing the partial sale of shares in these companies, Labour is opposing investment in much-needed infrastructure and assets.  Their plans would see the Government borrowing $5 billion to $7 billion more from overseas lenders at a time when the world is awash with debt and consequent risk.  This is just another example of their irresponsible big-spending ways.

New Zealanders let them know what they thought of this at the last election.  Support for National, which campaigned on selling minority shares in five companies, increased at the 2011 election, while Labour received the worst party vote in its history.

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Was the “Mixed Ownership” article removed from National’s website because it contained an embarrassing, inconvenient truth? Namely, that Key had acknowledged Labour’s capable stewardship of the country’s economy when he said,

“The level of public debt in New Zealand was $8 billion when National came into office in 2008.  It’s now $53 billion, and it’s forecast to rise to $72 billion in 2016.  Without selling minority shares in five companies, it would rise to $78 billion…” 

Which was probably not helped when Key basically shafted his own government’s track record in debt when he added;

“Like every household in New Zealand, we know how important it is to live within our means by budgeting carefully and deciding on our priorities…”

No wonder the page was removed from National’s website. It had inadvertently  become a de facto election advertisement for the Labour Party.

The statement regarding “the level of public debt in New Zealand was $8 billion when National came into office in 2008″ was already ‘making the rounds’ on the internet, as blogger after blogger was picking up on the statement and republishing it, as this Google search showed;

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google - The level of public debt in New Zealand was $8 billion when National came into office in 2008.  It’s now $53 billion, and it’s forecast to rise to $72 billion in 2016

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So whoever decided to removed the page is too late. The cyber horse has well and truly ‘bolted’ and John Key’s comments will remain for a very long time. And very useful comments they are, to disprove the misleading, deceitful rubbish that certain fanatic National/ACT supporters bandy about.

Other items have also been removed from National’s website.

The URL – https://www.national.org.nz/files/2008/ECONOMY/Kiwisaver_Policy_Paper.pdf – leads to;

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Kiwisaver_Policy_Paper

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The URL – https://www.national.org.nz/files/2008/ECONOMY/Tax_Policy_Paper.pdf – leads to;

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tax_Policy_Paper

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Curiously though, Key’s 2006 speech to the  Shore National Party luncheon was seemingly so historically worthy of preservation, that it remains intact on the National Party website;

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Speech to North Shore National Party luncheon screencap

 

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Finally (?) the URL – http://www.national.org.nz/OOF/flyer.pdf – is  also a dead link;

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national org flyer 170000 new jobs

 

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It was an election flyer  bearing the promise that “National’s Brighter Future Plan will help businesses create 170,000 new jobs over the next four years“.

Now why would the Nats delete that page, I wonder?

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References

Google cache: Mixed Ownership

Google Search: The level of public debt in New Zealand was $8 billion when National came into office in 2008. It’s now $53 billion, and it’s forecast to rise to $72 billion in 2016

National Party: Kiwisaver Policy Paper

National Party: Tax Policy Paper

National Party: Speech to North Shore National Party luncheon

National Party: 170,000 New Jobs flyer

 


 

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Kirk

Above image acknowledgment: Francis Owen/Lurch Left Memes

This blogpost was first published on The Daily Blog on 22 May 2014.

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The REAL level of unemployment…

20 December 2013 12 comments

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Job-Hunting-10-Tips-for-When-Your-Unemployment-Checks-Stop

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Current unemployment/employment statistics provided by Statistics NZ through the Household Labour Force Survey (HLFS) have been called into question with the release of poll data from two other sources.

Current HLFS stats have unemployment falling to its current level of 6.2% – from a height of 7.3% last year,

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Unemployment Rate - 2008 - 2013

Source

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The HLFS stats appear to put a positive, downward ‘spin’ on New Zealand’s unemployment rates. All good news for the current National-led government that is desperate for good news as it faces an election next year – and probable defeat.

However, on 5 December, Roy Morgan released the shock results of an nationwide poll, showing unemployment as well as  under-employment much higher than the Household Labour Force Survey has been reporting,

New Zealand unemployment was 8.5% (down 0.3% since the June Quarter 2013) of the 2,629,000 in the NZ workforce – an estimated 223,000 (down 5,000) were unemployed and looking for work.

A further 8.6% (down 1%) of the workforce* were under-employed – that is working part-time but looking for more work – 227,000 (down 23,000) New Zealanders.

In total 17.1% of the workforce (450,000, down 28,000) New Zealanders were either unemployed or under-employed.

The latest Roy Morgan unemployment estimate of 8.5% is now 2.3% above the 6.2% currently quoted by Statistics New Zealand for the September Quarter 2013.

Source

Curiously, this poll result was not reported (as far as this blogger can determine) by any mainstream media.

A subsequent  report – again released by Statistics NZ – revealed  the Census 2013 results on unemployment. The results were once again higher than the HLFS,

  • There were 2,001,006 employed adults (people aged 15 years and over) in 2013. Those who were employed made up 62.3 percent of adults, down from 65.0 percent in 2006.
  • Unemployment increased since 2006, but was slightly lower than in 2001. The unemployment rates for the last three censuses were:
    • 2013 – 7.1 percent
    • 2006 – 5.1 percent
    • 2001 – 7.5 percent.
  • Unemployment was higher for the 15–24 year age group than for the labour force overall. In 2013, the unemployment rate for this age group was 18.4 percent.

Source

The Census survey not only revealed that unemployment is much higher than the HLFS (7.1%, instead of 6.2%), but that youth unemployment was 18.4% – an increase from  the 2006 Census result of 13.3%.

The data table below tells the full story,

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Unemployment Rate - 2013 Census

IBID

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Not only are the 2013 Census result and HLFS at odds with each other , but made a damning indictment on the National-led government prior to 2000. Unemployment in the 2001 Census is shown at 7.5% – a legacy of the Bolger/Shipley administrations of the 1990s.

As a side-note, the Census confirmed the decline of  manufacturing  with 29,472 (13.5%) fewer people currently  employed in this industry than in 2006.

Interestingly, whilst HLFS unemployment for March 2006 is reported by Statistics NZ to be 4%,

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Unemployment Rate - 2006

Source

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- the 2006 Census gave a higher result of 5.1% (see above table). The Census results appear to be consistently higher than the HLFS – and most likely more accurate.

The implications of this are not hard to miss; unemployment (and under-employment) are much worse than we have realised.

Not only is this a drag on our economy (like a ship at sea dragging it’s anchor along the ocean-bottom, and wondering why it can’t pick up speed) – but the social consequences must be enormous.

More than ever, this should serve as a wake-up call to any government with a modicum of common sense that allowing job-creation to be left to the “free market” is fraught with uncertainty at best – and a massive failure at worst.

We have listened to 30 years of promises from successive politicians that the neo-liberal model will provide more jobs; higher pay; and growth.

None of those promises have eventuated and on top of which, as former Assistant Auditor-General Bruce Anderson stated in his report, Public Sector Financial Sustainability”,

Kiwis also feel good about themselves. New Zealand rates highly for tolerance, interpersonal trust and life satisfaction, the report says. That is just as well because the country probably needs that “social capital” to offset the negatives faced by the economy.

[...]

Those include increasing income inequality, with New Zealand one of the least equal in terms of market income in the OECD from one of the most equal 30 years ago. The country also shows disturbing social trends, including high youth suicide, teen fertility and unemployment.”

Source

In the same report, Anderson also referred to private borrowing ballooning to 140% of GDP (thanks to massive borrowing from overseas to finance our penchant for property speculation) whilst at the same time our economic performance was mediocre.

If we are to re-build a fairer society where everyone who wants can find work; good wages for a good day’s work; and an opportunity to own our home, then the economic model we have been pursuing must change.

For clues to the change we so desperately need,  the Christchurch Re-build has offered us one.

Canterbury (along with Auckland) has bucked the trend in terms of  reducing unemployment,

The Household Labour Force Survey, released today, shows employment in the Canterbury region rose by 2100 people, an increase of 0.6 percent.

Unemployment figures for the region decreased by 4000 people or 21.3 percent, most of which came from men who showed a decrease of 3800 unemployed.

Overall the Canterbury unemployment rate was 4.3 percent in the March quarter.  

Meanwhile, the national unemployment rate was 6.2% (in reality 7.1%, according to the Census).

The lesson here is simple for all but the most ideologically blind; where there are jobs, people will work.

Where jobs do not exist, unemployment will result.

The so-called “free” market has failed to deliver those jobs – most of which have been exported overseas to low-waged societies.

As David Cull, mayor of Dunedin angrily said in June 2011, when it was announced that Kiwirail would award a contract to purchase rail-wagons from South Korea and China, inside of building them at the Hillside workshops,

This is frankly a form of economic vandalism. What are we mounting here? An economic development strategy for China?”

Source

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catching-up-with-bangladesh

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That decision alone  cost the city of Dunedin over a hundred jobs (at the very least) plus millions in lost wages and down-stream business. The same has been repeated all over New Zealand; lost jobs; lost wages; depressed regions – and a growth in the social welfare cost to taxpayers.

If, after 30 years, the Rogernomics experiment has not delivered the results we were promised – just how long will we have to wait?

Just how long does it take to learn a lesson if we keep repeating the same mistakes, year after year, decade after decade?

Because really, 153,210 people would like an answer.

Meanwhile, as a reminder to us all,

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Budget 2011 - Govt predicts 170,000 new jobs

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Are we there yet?

This blogpost was first published on The Daily Blog on 13 December 2013.

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Sources

TV1:  Budget 2011 – Govt predicts 170,000 new jobs (19 May 2011)

TV1 News:  KiwiRail under fire over job cuts (9 June 2011)

NZ Herald: Unemployment up to 7.3pc – a 13 year high (8 Nov 2012)

TV3:  Canterbury employment rate rises (9 May 2013)

NBR: NZ’s first world aspirations based on economy ‘harvesting water’ (6 June 2013)

Statistics NZ: Household Labour Force Survey: September 2013 quarter (6 Nov 2013)

Roy Morgan: New Zealand real unemployment down 0.3% to 8.5% and a further 8.6% (down 1%) of workforce are under-employed (5 Dec 2013)

References

2006 Census

2013 Census

Trading Economics:  New Zealand Unemployment Rate

Previous related blogposts

Can we do it? Bloody oath we can!

2013 – Ongoing jobless talley

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Key’s broken promise on raising wages

 

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http://fmacskasy.files.wordpress.com/2012/11/john-key-says-id-like-to-raise-wages-but-i-cant.png?w=640&h=514

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Once again, the Prime Minister has shown that he says one thing – whilst doing completely the opposite. The implementation of Youth Rates next month will be another in a series of his broken promises.

I think most readers of this blog (and other sources of  political information) will recall certain statements made by Dear Leader over the last four to five  years,

We will be unrelenting in our quest to lift our economic growth rate and raise wage rates.” – John Key, 29 January 2008

See: National policy – SPEECH: 2008: A Fresh Start for New Zealand

One of National’s key goals, should we lead the next Government, will be to stem the flow of New Zealanders choosing to live and work overseas.  We want to make New Zealand an attractive place for our children and grandchildren to live – including those who are currently living in Australia, the UK, or elsewhere.

To stem that flow so we must ensure Kiwis can receive competitive after-tax wages in New Zealand.” – John Key, 6 September 2008

See: National policy – Speech: Environment Policy Launch

I don’t want our talented young people leaving permanently for Australia, the US, Europe, or Asia, because they feel they have to go overseas to better themselves.” – John Key, 15 July 2009

See: Speech: Key – business breakfast

Science and innovation are important. They’re one of the keys to growing our economy, raising wages, and providing the world-class public services that Kiwi families need.” – John Key, 12 March 2010

See: National policy – Boosting Science and Innovation

We will also continue our work to increase the incomes New Zealanders earn. That is a fundamental objective of our plan to build a stronger economy.” – John Key,  8 February 2011

See: Statement to Parliament 2011

The driving goal of my Government is to build a more competitive and internationally-focused economy with less debt, more jobs and higher incomes.” – John Key, 21 December 2011

See: Parliament – Speech from the Throne

We want to increase the level of earnings and the level of incomes of the average New Zealander and we think we have a quality product with which we can do that.” –  John Key, 19 April 2012

See: Key wants a high-wage NZ

Key has repeated the same pledge every year since 2008.

On 1 May this year, National will be implementing a cut to the wages paid to young New Zealanders. The new youth rates will be  euphemistically known as the “Starting-out wage”.

The cut to wages of young workers will be as follows,

  1. 16 and 17-year-olds in their first six months of work with a new employer
  2. 18 and 19-year-olds who have been paid a benefit for six months or longer, and who have not completed six months of continuous work with any employer since starting on benefit
  3. 16-to-19-year-old workers in a recognised industry training course involving at least 40 credits a year.

Acknowledgement: Scoop – Starting-out wage available from 1 May

On 21 March Labour Minister, Simon Bridges, said,

“…The starting-out wage will provide an incentive for employers to help give young people a foot in the door and start building their skills and experience…

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The starting-out wage will help set young people up for a lifetime of meaningful employment.”

Acknowledgement: Parliament – Hansards – 3. Youth Employment—Starting-out Wage

So will  a reduction in wages for young people, 16 to 19, help create more jobs? Or will it simply increase “job churn”, displacing older worker for younger, cheaper labour?

A previous “job creation” initiative from National was an amendment to the Employment Relations Act 2000, Section 67A – the 90 Day Trial Employment Period.

The 90 Day Trial Employment Period was implemented on April 2009, for workplaces with fewer than 20 employees. Labour Minister Kate Wilkinson enthusiastically predicted that the change to legislation would create more jobs,

“ The 90-day trial period will provide confidence for employers engaging new staff and allow struggling job-seekers to get their foot in the door, rather than languish on a benefit…

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… The 90-day trial will provide real opportunities for people at the margins of the labour market.”

Two years later, by April 2011, National extended the 90 Day Trial Employment Period to cover  all businesses.  Labour Minister Kate Wilkinson stated,

The Government is focused on growing a stronger economy and creating more jobs for New Zealand families,” says Ms Wilkinson.

There are a lot of people looking for work and the changes announced today will help boost employer confidence and encourage them to take on more staff.

[...]

The evaluation showed that 40 percent of employers who had hired someone on a trial period said it was unlikely they would have taken on new employees without it.

Acknowledgement: Government statement – 90-Day Trial Period extended to all employers

So. How did the 90 Day Trial Employment Period work out? Did it create more jobs? The stats reveal the results with unambiguous, damning, clarity,

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Source

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As the chart above clearly shows, the answer is clearly no.  After the initial introduction of the 90 Day Trial Employment Period in April 2009, unemployment continued to rise. The same occurred after April 2011.

There is no reason to believe that implementation of Youth Rates will yield any different results.

The evidence suggests that tinkering with labour laws does not – and cannot –  create jobs. High unemployment is caused by other factors; entrenched problems in our economy; the high value of the dollar; a flood of cheap consumer goods; foreign workers being brought in to fill vacancies; poor wages; lack of planning between business-labour-government; and an ad hoc approach to on-going training for young people.

Instead of treating on-going education and training in young people as an investment – successive governments have erected barriers such as training and education fees. The situation that New Zealand finds itself in is sheer lunacy. We have thousands of unemployed New Zealanders – and yet government does little to facilitate them into training or higher education.

Why, for example, are unemployed paid a benefit to do nothing – and yet are forbidden to take up further education or trades-training?

To a half-way sensible person, this is madness.

And speaking of madness… National must know that cutting wages for young workers will not help create new jobs.  It may displace older workers in some areas, but otherwise it may act as further de-moralisation and discouragement for young people who are already facing tough times and an uncertain future.

What this does show is that National has no real job creation policies. For National, their sole reliance is on the “marketplace” to deliver new jobs. Sadly, they are mistaken – their market-based faith is half the problem.

Having faith that rain will come on a given day will not make it so.

Sensibly, the fast food industry has already come to the same conclusion that unions and others on the Left have instinctively understood for ages,

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Thumbs down by fast-food chains to youth rates

Acknowledgement: Fairfax Media – Thumbs down by fast-food chains to youth rates

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The Nats appear to be so wedded to their screwy market-based faith-politics that the failure of the “marketplace”  eludes them.

It’s a shame that National hasn’t caught up with the bleedin’ obvious.  Or… have they? It appears that some people are doing very well from the “marketplace”.

At our expense…

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Increase for SOE bosses 'obscene'

Acknowledgement: Fairfax Media – Increase for SOE bosses ‘obscene’

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Addendum

Here’s a clever idea – all those people who vote National should have a wage/salary freeze during the term of that government.  After all, as some National supporters keep insisting, raising the minimum wage “harms the economy”. (I assume the same holds for all  wages and salaries?)

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- “Hey, Krystal, let’s freeze our wages, to set an example for everyone else, and for the good of the economy!”
- “Oh, Toby! What an absolutely spiffing idea! Dear Leader WILL be pleased!”

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The rest of us, who vote for Labour, Greens, Mana, et al, can have our wages/salaries linked to Australia’s pay rates.

Now I ask you – what could possibly be fairer than that?

This blogpost was first published on The Daily Blog on 12 April 2013.

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Previous related blogposts

John Key’s track record on raising wages: Preface

1. The “Hobbit Law”

2. The 90 Day Employment Trial Period

3. Ports of Auckland Dispute

4. Rest Home Workers

5. The Minimum Wage

6. Youth Rates

7. Part 6A – stripped away

8. An End to Collective Agreements

9. Conclusion

10. A New Government’s Response

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More dispatches from Planet Key

17 March 2013 4 comments

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planet key

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Planet Key’s #3 Moon “Brownlee”; Largest of the Moons, it tends to disturb other bodies through it’s presence. “Brownlee” has a rough surface and highly abrasive atmosphere that many find obnoxious. “Brownlee’s” gravitational influence has a negative, perturbing,  influence on nearby bodies such as Planet Christchurch.

Brownlee recently let rip at Christchurch City Council for not carrying out repairs to council-owned community housing fast enough,

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Brownlee says housing councillor should go

Acknowledgement: Radio NZ

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Consider for a moment that Brownlee, as the Canterbury Earthquake Recovery  Minister, is in constant contact with CERA, Christchurch’s mayor, and anyone else remotely connected with that city and it’s re-build.

Brownlee has channels of communications that are open to him that allows him to discuss issues and problems as they arise.

So what was the purpose of this display of public excoriation of the Christchurch Council and especially the vilification of one Councillor, Yani Johanson?!

Does Mr Johanson not have a telephone?

Email? Skype? A paper letter? Smoke signals? (The latter seems to work well for the Vatican.)

Could Brownlee not have sat down around a table and asked the most basic of questions,

How can we help?”

Or is the public display of testosterone-fuelled machismo Minister Brownlee’s new modus operandi when dealing with those who fall within his ministerial orbit?

This kind of authoritarianism may be the norm in Zimbabwe, Burma, or North Korea – but here in New Zealand it comes across as the cries and foot-stamping of a petulant child.

Meanwhile, National ministers should look in their own backyard when it comes to housing,

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Pomare housing demolition begins

Acknowledgement: Dominion Post

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Christchurch has been wracked by two massive earthquakes and thousands more quakes since. Every aspect of their basic infra-structure was damaged or ruined to varying degrees.

I think we can cut them some slack when it comes to re-building an entire city, from beneath ground-up.

Meanwhile, nearly eighteen months later, with no earthquakes or any other major disasters (unless one  calls a National Government a major disaster), one wonders why National ministers have not progressed any further to re-build Pomare’s state housing?

After nearly a year and a half, all we’re seeing is a vast vacant lot, where once peoples’  homes existed,

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Pomare state housing_vacant lot_farmers cres

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Pomare state housing_vacant lot_farmers cres

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Any ideas, Mr Brownlee?

(More on this issue in an up-coming blog-story)

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Planet Key’s #4 Moon “Dunne”; covered in a dense, white atmosphere; “Dunne” is known to move from Planet Key to Planet Labour depending on which mass is greatest. The largest surface object on “Dunne” is the ‘Make Me a Minister’ volcano, which erupts whenever there is a nearby power-source.

As Minister of Revenue and Flashy Hairstyles, Peter Dunne is charged with taxation issues in this country.

No doubt his job was made considerably harder with two tax cuts (2009 and 2010) which considerably reduced taxation revenue for the State. (see:  Govt’s 2010 tax cuts costing $2 billion and counting, see:  Outlook slashes tax-take by $8b) Indeed, English was forced to tax children and their paper-rounds. (see:  Key rejects criticism of ‘paperboy tax’)

Taxing kid’s meagre earnings. That’s how low and desperate National ministers have gone, to make up for the 2009/10 ‘lolly scrambles’ when the Nats  gave away billions in unaffordable tax cuts.

To try to fill the fiscal hole that Bill English, Peter Dunne, et al, have put themselves into, they’ve been scrambling to raise government charges  and tax everything and anything else that moves. (see: Prescription fees increase, see: Vulnerable children at risk from Family Court fees increase, see: Student fees rise faster than inflation, see: Petrol price rises to balance books)

The latest attempt to raise new taxes is Peter Dunne’s ‘carpark tax’,

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Business will evade car park tax

Acknowledgement: Fairfax media

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Well, well, well… a new tax?

A new fringe benefit tax?!

This is interesting.

Because John Key has always insisted that his Party cuts taxes and doesn’t increase them. Specifically, way back on 4 April 2005, when National was in Opposition,

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National Party Finance spokesman John Key has signalled an overhaul of the Fringe Benefit Tax, during a speech to the Auckland Rotary Club today.

“The next National Government will cut the red tape and compliance costs that are choking our businesses and preventing them from getting off first base,” he says.

“A practical example of what I am talking about is in the area of Fringe Benefit Tax.

“Today I want to announce that National will revamp Fringe Benefit Tax to remove a substantial amount of the paperwork that currently occupies too much administrative time for many of our businesses, especially the small ones.

[...]

- We won’t entertain suggestions of applying FBT to on-premises car parks.” 

Acknowledgement: Scoop.co.nz

And again in 2010, when a video was uncovered where Dear Leader was quoted as saying,

National is not going to be raising GST. National wants to cut taxes, not raise taxes.

See: Key ‘no GST rise’ video emerges

When challenged on this in the House, just recently,  Minister for Everything, Steven Joyce, responded with this bit of bovine faecal material,

I would say that I think a fair amount has changed since that statement was made back in April 2005, which was when Don Brash was leader of the National Party. Since that time we have had three leaders of the Labour Party, and maybe a fourth leader of the Labour Party—”

Source: Parliament Hansards – 9. Tax System Changes—Employee Car-parks

Yeah. Lot’s of things have changed. Like, for example, the difference between being in Opposition and Promising the Moon – and being in Government and having to explain why the Moon is still out of reach.

And when the Nats have to make smart-arse comments about Labour’s leaders, then you know they’re really on the ropes. Defensive much, Mr Joyce?

Like Key’s broken promise on GST, the “carpark” tax is another instance of National breaking it’s election promises. Which indicates, mainly, that National’s tax-cuts were never as affordable as they made out in 2008.

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Special Edition Tax cuts today - John Key

Acknowledgement: National Party

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Planet Key’s #5 Moon “Bennett”; “Bennett” originated from the asteroid belt, where many poorer dwarf-planets with low mass; minimal mineral wealth; and mostly invisible, are locked in orbits that will take them nowhere. “Bennett” gravitated to the National Zone where her mass and mineral wealth increased by close association with  Planet Key and it’s many  moons.

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To repeat and quote Bennett, when she stated on TVNZ’s Q+A on 29 April 2012,,

There’s not a job for everyone that would want one right now, or else we wouldn’t have the unemployment figures that we do. “

See:  TVNZ  Q+A: Transcript of Paula Bennett interview

To quote Minister Bennett’s latest utterances on this issue, on 12 March 2013, when hundreds of  people recently queued for just seven jobs at Carter Holt Harvey in Auckland,

“Well I am absolutely thrilled that 200 turned up quite frankly we’ve got more than 50,000 on the unemployment benefit but work expectations of them I think the fact that they are lining up that they want those jobs um speaks for itself and about peoples’ motivation to get work.”
 

“There’s always a lot of people going for certain types of jobs and if in particular if they are lower skilled they feel they can do them, they don’t have a lot of work experience, they have been out of work for some time.”

 
“No I don’t feel there is a job for everyone and I think it’s damn tough but I am incredibly proud of New Zealanders and their  motivation and the fact that they want them and I know that the economy is improving and we are going to see more happening.”

See: TV3  – Campbell Live:  Sign of the times: hundreds queue for 7 jobs

Acknowledgement for transcript:  Waitakere News – Don Elder, Paula Bennett and the rest of us

Ok, so the lightbulb has finally clicked in Bennett’s head. New Zealand has a problem. We do not have enough jobs for the number of unemployed and solo-parents who want to work.

It’s not often that a politician acknowledges the bleedin’ obvious – so kudos to her for having the  courage to do so. (John Key might learn a thing from Bennett in terms of not ducking  issues.)

However, if there are not sufficient jobs to go around – what is the point in wasting taxpayers’ money and Parliament’s time on this exercise in futility,

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Welfare reform bill passed into law

Acknowledgement: NZ Herald

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And why is language like this used by Bennett,

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Reforms to help beneficiaries out of 'trap'

Acknowledgement: NZ Herald

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If there are insufficient jobs – as Bennett herself has now acknowledged on at least two occassions, then ipso facto, the following must be true;

  1. The only ‘trap’ is a lack of work – not welfare
  2. Why “reform” the welfare system  when welfare itself is not broke – it’s the economy that is not working (as are 170,000 people)
  3. Why muddy the waters with  rhetoric like  “trap of benefit dependency“; “introduce expectations for partners of beneficiaries and make beneficiaries prepare for work“; or that welfare had “become a bit of a trap for quite a few people“?

What does “a bit of a trap for quite a few people” mean? That it’s a “little” trap as opposed to a “big” trap? Or is she attempting to minimise the impact of her beneficiary-bashing by trying to soften her rhetoric?

So the “dog whistle” rhetoric filters down to the right wing; the ill-informed; and other welfare-hating cliques in our society – but the message is watered-down for the Middle Classes who are uncomfortable with victimising the unemployed, or who may even know someone who recently lost their jobs.

That’s the trouble with beneficiary bashing during times of high unemployment. Most of us know someone who has lost their job through no fault of their own. Bennett is walking a tight-rope here.

Eventually, people will be asking; why are National ministers  wasting time on pointless welfare “reform” when it’s jobs we need?

Once that message percolates into the collective consciousness of the masses, National will be left standing naked – their corrupt, bene-bashing, dog-whistle politics exposed for all to see.

A few questions for Ms Bennett,

Why are you messing around with welform “reform”, when it’s jobs that we need?

Why aren’t you and your well-paid ministerial colleagues reforming the economy to create more jobs?

How much are these “reforms”  costing us, the tax-payer?

How many extra jobs will welfare “reforms” create?

I don’t expect answers to these questions because, really, they are unanswerable.

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Links

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National recycles waste product very well

11 March 2013 7 comments

From Bill Birch, in 1999,

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Bill Birch Speech On Taxation IRD

Source

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Note these two items,

 We aim to grow the economy by 10% in the next three years
 Create 100,000 new jobs

National’s track record in the three years leading up to the November 1999 election, and Labour’s track record from January 2000 onward,

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New Zealands Employed Person 1996 - 2003

Source

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Pretty self explanatory really.

Fast forward eleven years and four elections later,

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Budget 2011 Govt predicts 170,000 new jobs

Source

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 We aim to grow the economy by 4% by 2013
 Create up to 170,000 new jobs

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New Zealands Employed Person 2008 - 2013

Source

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Again, self-explanatory,

Key facts – In the December 2012 quarter compared with the September 2012 quarter:

 The unemployment rate fell 0.4 percentage points, to 6.9 percent.
 The number of people unemployed decreased by 10,000 people (down 6.0 percent).
 The employment rate fell 0.8 percentage points, to 62.6 percent.
 The number of people employed decreased by 23,000 (down 1.0 percent).
 The labour force participation rate fell 1.2 percentage points, to 67.2 percent.
 The number of people in the labour force decreased by 33,000.

Source: Dept of Labour (MoBIE) & Statistics NZ

There we have it: 23,000 jobs lost.

And 33,000 fewer people in the Labour Force (left the country, given up looking for work, etc)

Bill Birch – meet Bill English.  Different Ministers of Finance;  same bullshit; more empty promises.

Any predictions for National in 2023?

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Johnny’s Report Card – National Standards Assessment – Growth

9 January 2013 7 comments

To Whom It May Concern; the following Report Card detail’s Johnny’s achievements over the last four years.

The following contrasts compare four years, ranging from the end of 2008 to the end of this year, 2012.

Whilst it is acknowledged that the Global Financial Crisis impacted harshly on our society and economy, it is also fair to say that National has had the benefits of starting out with a sound economy (surpluses, low unemployment, etc)  in 2008 and four years in office to make good on it’s election promises.

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Growth

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Recent history:

In the past, whenever National (or the right wing “Labour-ACT” government of the 1980s) came to power, the result was never very good,

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Decline in economic activity

Source: Dunedin Star

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Highest jobless rate in 2 years - 7 May 1998

Source: Otago Daily Times

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Redundancies hit Tranz Rail workers hard - 2 Oct 1998

Source: Otago Daily Times

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Current Account deficit blows out to 10-year high - 28 Jan 1997

Source: Otago Daily Times

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The rhetoric:

The National Party has an economic plan that will build the foundations for a better future.

* We will focus on lifting medium-term economic performance and managing taxpayers’ money effectively.

* We will be unrelenting in our quest to lift our economic growth rate and raise wage rates.

* We will cut taxes, not just in election year, but in a regular programme of ongoing tax cuts.

* We will invest in the infrastructure this country needs for productivity growth.

* We will be more careful with how we spend the cash in the public purse, monitoring not just the quantity but also the quality of government spending.

* We will concentrate on equipping young New Zealanders with the education they need for a 21st century global economy.

* We will reduce the burden of compliance and bureaucracy, and we will say goodbye to the blind ideology that locks the private sector out of too many parts of our economy.

And we will do all of this while improving the public services that Kiwis have a right to expect.  ” – John Key, 29 July 2008

See: 2008: A Fresh Start for New Zealand

Growing the economy is the Government’s number one priority, and science and innovation have a key part to play in that growth.

Indeed, this Government has made science and innovation one of the six cornerstones of its economic growth agenda. We’ve done this because New Zealand needs an economic jolt. Our productivity and economic growth have been sluggish for decades and as a result we have slipped down the OECD’s ranking of national wealth per capita.

Our performance compared to other smaller advanced economies has been uninspiring at best. For example, in 1976 our per capita income was slightly ahead of Australia. It was nearly 20 percent greater than the OECD average.

We are now 20 percent behind the OECD average. Australia, by contrast, is still about 20 percent ahead.

Finland is another example of our relative decline. In 1979 our per capita income lines crossed – New Zealand going down and Finland going up. The Finns are now about 20 percent ahead of us.

So, how do we turn the situation around? ” – John Key, 1 July 2011

See: National Economic Development Forum

Present  reality:

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Declining traffic bad for the economy

Full story

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Unemployment up to 7.3pc - a 13 year high

Full story

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KiwiRail under fire over job cuts

Full story

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Current account gap narrows as trade balance shrinks

Full story

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Two things would be fair to say,

    1. National inherited an economy with low unemployment and net government debt at an all time low of 5.6% of New Zealand’s GDP, net. (Far from being fiscally profligate as National claims, Labour actually behaved more responsibly than National has done, as the information below clearly illustrates.)
    2. The Global Financial Crisis was not an event of National’s making. (Though the ideology of corporate greed, profiteering, and minimal government oversight which contributed to the Crisis is most certainly one that National shares.)

As Treasury data shows, New Zealand’s net government debt situation worsened from 2008 to June of 2012,

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NZ Government net debt 2008 - 2012

Source: Treasury – Financial Statemement of the Government of New Zealand

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NZ Government net debt 2008 - 2012 table 16

Source: IBID

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Table 16 above opened with a net government debt of 5.6% – left by the outgoing Labour government.

It closed with 25% net government debt – a fourfold increase – courtesy of National’s “prudent fiscal management”.

As the Treasury document explained,

Net debt increases as a result of cash deficits and
declines as a result of cash surpluses. It also
fluctuates in line with valuation movements in the
underlying financial assets and liabilities of the Crown
and movements in the amounts of currency issued to
New Zealand banks.

Net debt increased this year, continuing the steady
increase since the global financial crisis (figure 11).
Net debt increased from last year primarily due to
additional borrowings over the year to meet the
residual cash deficit (refer table 17).

Source: IBID

In other words, National took in lower revenue – taxes – which  inevitably resulted in increased borrowings; slashing of State services and funding; increasing user pays for other state services;  mass redundancies of state sector workers, and impending partial state asset sales.

The Treasury document goes on to show how much revenue was lost between 2008 and 2012,

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NZ Government tax revenue 2008 - 2012

Source: IBID

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A recent NZ Herald report has updated Treasury’s expections. The tax-take, GDP growth, and unemployment outlooks are not good,

A weaker economic outlook over the next four years has taken a bite of nearly $8 billion out of the Government’s forecast tax revenues for that period.

Nevertheless the Treasury is still forecasting a return to surplus, though only just, on schedule by 2015.

The forecasts in yesterday’s half-year economic and fiscal update are in line with the latest consensus forecasts, which means they are significantly weaker than in the Budget.

The growth track is lower by around 0.5 percentage points a year.

It reflects downwards revisions to expected growth among New Zealand’s trading partners, and a kiwi dollar expected to remain around present levels until the first half of 2014, so that net exports subtract from growth for the next couple of years.

Unemployment has been revised higher; it is 7.3 per cent now and still expected to be 5.6 per cent by March 2016.

See: Outlook slashes tax-take by $8b

The forecast rate of tepid growth is on top of low to negative growth in the last four years,

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NZ GDP growth rate 2000 - 2012

Source: tradingeconomics.com

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So what caused the drop in government tax revenue? And why did the lower tax revenue impact on higher unemployment and lower domestic growth?

The answer, in part, is not hard to uncover, and the following reports tell the story of how National undermined (sabotaged?) our nation’s government accounts.

First, we were offered The Bribe,

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National's 2005 tax cut plans still credible - Key

Full story

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Then we got the warning signs,

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Treasury to Rescue Fannie and Freddie

Full story

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Russia Halts Trading After 17% Share Price Fall

Full story

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Lehman folds with record $613 billion debt

Full story

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We were not exempt from the looming storm that was the coming Global Financial Crisis ,

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Recession confirmed - GDP fall

Full story

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National’s response?

The prudent step to take would have been to cancel the tax cuts as simply unaffordable.  (Labour’s Phil Goff generously promised to support National had it taken such a prudent measure. See: Labour would support deferral of tax cuts)

As a nation, we  would then maintain social services (education, housing, healthcare, justice system, early childhood education, superannuation, etc)  – or cut taxes. We could not have both. Not without even further massive borrowings from overseas.

National’s decision to persevere with their taxcuts beggered belief for those who understood the seriousness of the GFC and the recession we had fallen into,

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Key - $30b deficit won't stop Nats tax cuts

Full story

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The consequences of  National’s irresponsible cutting of taxation revenue was utterly predictable,

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Govt borrowing $380m a week

Full story

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Govt's 2010 tax cuts 'costing $2 billion and counting'

Full story

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Writing for the NZ Herald, Brian Fallow put the cost of taxcuts at $8 billion. (See:  Outlook slashes tax-take by $8b)

Only a fool (or devoted National supporter – the two are not mutually exclusive) could believe that we could give away billions in tax cuts without resorting to massive borrowings to cover the shortfall.

The result was a government deficit rising fourfold from 2008 to 2012, as the above Treasury stats clearly show.

National then desperately needed to balance the books. It scrimped and scrapped by cutting the state sector; raising taxes (gst, fuel tax, ACC levies, government charges, etc) elsewhere; closing tax exemptions for property investors; and cutting back on services (see: Student allowances a thing of the past for post-graduate students ).

Even paper delivery kids were not exempt from the grasp of this Scrooge-like ‘government’. See:  Budget 2012: ‘Paper boy tax’ on small earnings stuns Labour)

It also desperately needed to proceed with it’s state asset sales.

A cynic with a conspiratorial ‘bent’ might suspect that National deliberately manufactured it’s own debt crisis so that it could justify the partial privatisation of Meridian, Genesis, Might River Power, Solid Energy, and Air New Zealand, to it’s corporate/investor/aspirationist constituent-base.

In doing so, not only was the door left open for their privatisation agenda – but the side-effects of tax cuts left National with few options and manouvering room for job creation policies.

With net government debt quadrupling in four years from $10.2 billion (2008)  to $50.6 billion (2012), and taxation revenue falling from $56.7 billion (2008) to  $55 billion (2012), their hands were seemingly “tied”.

Compounding matters,    National cut back state services and  fired thousands of state sector workers, resulting in a further drop in  expenditure, all of which  impacted harshly on the economy.

Whether Free Marketeers like it or not, the state is the #1 business generator in our economy and society. When it cuts spending, the flow-on effects on  other, down-stream businesses, is inescapable.

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Govt austerity slows growth, keeps rates low - RBNZ

Full story

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With higher income earners either saving their tax cuts or paying down debt, tax cuts failed to “fire” the economy as Little Leader said in 2009 and Dear Leader adamantly predicted in  2010,

By taking firm, early and decisive action, the Government is managing the downturn to cushion the immediate impact on New Zealanders and to enhance future growth.” – Bill English, 28 May 2009

See: Budget 2009 – House goes into urgency

We’ve cut all personal income tax rates, GST has increased to 15%, and we’ve boosted NZ Super, Working For Families, and benefit payments by 2.02% to compensate for the rise in GST.

Today’s changes are just one part of our comprehensive plan to grow the economy, create jobs, boost incomes, and raise living standards for all New Zealanders. The tax package improves incentives to work, and tilts the economy towards savings, investment, and exports.” – John Key, 1 Oct 2010

See: Tax cuts today

In May 2010, Key had even used the migration issue as justification to cut taxes for higher income earners, professionals, and others in top brackets,

We can be envious about these things but without those people in our economy all the rest of us will either have less people paying tax or fundamentally less services that they provide.

They include doctors, entrepreneurs often, scientists, engineers, lawyers, accountants, school principals and nurses.

On Thursday you will see a deliberate attempt to make sure those people stay and put their skills to work here in our economy.” – John Key, 18 May 2010

See:  Key again defends tax cuts

BS. All of it is, BS.

None of it worked, of course. The economy not only failed to grow – it  stagnated or contracted (see:  Economic recovery stagnates – NZIER). And despite two tax  cuts, migration to Australia skyrocketed – ten thousand higher than under the previous Labour government’s last four years.  (see related blogpost:  Johnny’s Report Card – National Standards Assessment y/e 2012: migration)

Up until 2011, two of our most important  industries – manufacturing and construction – contracted, at a time when the Christchurch re-build should have been growing their turn-over and profitability. The downturn in manufacturing and construction had a flow-on effect on the  Wholesale Trade sector,

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New Zealand in Profile_2012_economy

Source: New Zealand in Profile: 2012 – Economy

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Other measures of the economy show no sign of improvement,

Bank profits back over $3 billion while economy stagnates (24 April 2012)

then “good news”,

Pickup in economic growth predicted (29 Aug 2012)

followed two months later by bad news,

Businesses gloomy about economic growth (9 Oct 2012)

Current Account Deficit Widens (19 Sept 2012)

 Trade deficit widens as dairy values fall (27 Nov 2012)

Terms of trade continue to drop (4 Dec 2012)

Govt deficit up as tax take dips (5 Dec 2012)

Deficit $169m wider than predictions (6 Dec 2012)

Growth forecast cut, debt seen higher (18 Dec 2012)

Current account gap narrows as trade balance shrinks (19 Dec 2012)

Outlook slashes tax-take by $8b (19 Dec2012)

Whichever way one looks at it, it’s a mess.

And it’s simply a bad joke for Key to reassure us,

While I think we have to acknowledge that the last three years have been pretty tough with the Global Financial Crisis, on a relative basisNew Zealand’s been doing a better than a lot of other countries.” – John Key, 17 Nov 2011

See: Key and Goff Q&A: Creating jobs

Trying to suggest that we  are nowhere as bad off as other nations such as the US, Spain,  Greece, etc – so our current stagnating economy is somehow  acceptable – is sheer rubbish.

One might as well justify National’s poor performance and reckless decision-making by stating we are better off than Zimbabwe, Haiti, or Bangladesh,

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catching-up-with-bangladesh

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We should not be “worse off” than those nations – we headed into the Global Financial Crisis with relatively good economic indicators!

There is Always An Alternative!

A responsible government would have abandoned any prospect of taxcuts and prepared policies to keep people in work; off the unemployment queues;  paying taxes; and contributing to the economy.

Policies such as,

With Option #3, National appears to have missed the obvious.

Injecting several billion into a crash-programme to build ten thousand homes for New Zealanders, who are currently struggling to buy their own houses, makes sense.

The Christchurch re-build has proven this to be the case, as the NZ Herald reported on 20 December 2012,

The economy grew at an annual pace of 2.5 per cent, and was 2 per cent higher than the same quarter a year earlier. Revisions to previous quarters showed New Zealand dipped back into recession in the second half of 2010, with two 0.3 per cent contractions in each quarter.

 The New Zealand dollar dropped to 83.33 US cents after the figures were released, from 83.60 cents immediately before.

Construction kept the economy ticking over with a 4.5 per cent expansion, contributing 0.2 of percentage point to overall GDP. Electricity, gas, water and waste services grew 4.4 per cent in the quarter, contributing 0.1 of a percentage point in growth to GDP, underpinned by an increase in hydroelectric generation.

“Residential and non-residential building activities were both up strongly this quarter, and both were boosted by Canterbury,” Statistics NZ said in its report. “The upper North Island also contributed to the growth in residential building activity.”

The Canterbury rebuild, which is expected to top $30 billion, is widely seen as the saving grace for an economy that has struggled to recover from its deepest recession in two decades, and has been getting some help from a resurgent property market in Auckland in recent months.

See: Economy grows 0.2pc – saved by construction

Statistics NZ national accounts manager Rachael Milicich didn’t split hairs. She bluntly stated,

 “The growth in the latest quarter was driven by construction.”

See: Economic activity up 0.2 percent

As for the tax cuts stimulating the economy with extra spending – you can forget that pipedream. According to Statistics NZ,

Household consumption expenditure, which measures the volume of spending by New Zealand households, was flat this quarter (0.0 percent).

See: IBID

National not only bought the 2008 election with promises of unsustainable, unaffordable tax cuts – Key, English, Joyce, et al, squandered an opportunity to keep 70,000 New Zealanders in paid employment (see: Employment graph, 2008-2012).

It was all so unnecessary.

Addendum

In March 2008, the then Finance Minister, Michael Cullen said,

Even before these challenges hit home John Key wants to increase our debt to at least 25 per cent of GDP. But he does not pretend he wants to borrow more to pay for more services and he does not really believe he needs to borrow more to pay for roads. He only wants to outspend Labour on tax cuts.”

See: [Labour]Government will not borrow for tax cuts

According to Treasury, the current net government debt as at 30 June 2012  stands at… 24.8% of GDP – just shy of 25%,

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NZ Government net debt 2008 - 2012 - Cullen's prediction

Source: Treasury – Financial Statemement of the Government of New Zealand

Cullen called it 100%.

It’s a shame that 1,053,398 voters couldn’t look past their own selfishness, and the lure of cash dangled before them, by a Party that was hell-bent on it’s own agenda to win power at any cost.

For New Zealand, that cost measured $50 billion and 175,000 unemployed.

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Report_Card_growth

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Johnny’s Report Card – National Standards Assessment y/e 2012: employment/unemployment

9 January 2013 4 comments

To Whom It May Concern; the following Report Card detail’s Johnny’s achievements over the last four years.

The following contrasts compare four years, ranging from the end of 2008 to the end of this year, 2012.

Whilst it is acknowledged that the Global Financial Crisis impacted harshly on our society and economy, it is also fair to say that National has had the benefits of starting out with a sound economy (surpluses, low unemployment, etc)  in 2008 and four years in office to make good on it’s election promises.

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 Employment/Unemployment

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The rhetoric:

We agree with you, it’s the government’s responsibility to do everything within it’s powers to try to get people jobs.” – John Key,  17 November 2011

Source

The driving goal of my Government is to build a more competitive and internationally-focused economy with less debt, more jobs and higher incomes.” – John Key, 21 December 2011

Source

It’s true, ultimately if every one was to get off welfare we’d need to create even more jobs, but that’s the Government’s whole agenda is to have a vibrant economy that does produce jobs. I  certainly accept there’s not a job for every single person, but I don’t accept there aren’t some jobs out there.” –  John Key, 28 February 2012

Source

The reality:

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New Zealand Unemployment Rate

Source:  Tradingeconomics – Unemployment rate

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New Zealand Unemployed Persons

Source:  Tradingeconomics – Unemployed persons

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The response:

Unemployment has increased by 70,000 people since National took office in 2008.

The Global Financial Crisis, as a rationale, has worn thin and should be dismissed for what it is;  a shoddy excuse that should no longer be accepted.

The lowest unemployment, as any National politician will happily confirm is in Christchurch,

In Canterbury, in the year to September 2012, the unemployment rate decreased 0.3 percentage points to 5.2 percent. For women the decrease was 0.8 percentage points, down to 5.9 percent. There was a slight increase in the unemployment rate for men (0.1 percentage points), up to 4.6 percent.

The number of people employed rose 8,800 over the year in Canterbury, with 11,600 more people employed in part-time work (up 17.9 percent). There was a 2,800 decrease in the number of people working full time (down 1.2 percent).

The total increase in employment reflected a statistically significant 9,000 rise in the professional scientific, technical services, administrative, and support services industry group. Most of this rise was from the professional, scientific, and technical services industries.

The number of men and women employed in Canterbury both increased. For women the rise in employment was mostly in the professional, scientific, technical services, administrative, and support services industry group. For men the rise in employment was in that industry group, but also in the construction industry.

Source

Which poses the question: if the reconstruction of Christchurch is creating jobs – why has National not engaged in a similar house-building programme throughout the country?

If the reconstruction programme has resulted in increased employment in Christchurch – why not implement the very same solution nationwide, to generate jobs?

The answer, unfortunately, lies in ideological pig-headedness; National does not accept that the State has a role in job creation,

Nothing creates jobs and boosts incomes better than business growth. For New Zealand to build a more productive and competitive economy, we need more innovative companies out there selling their products on the world stage.” – John Key,  24 August 2012

Source

Unfortunately (for us, as a nation and society), this laissez faire, market-based  approach, has  failed to deliver the jobs we desperately need. In fact, the “free market” has simply opted for the cheaper, easy-option,

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Foreigners flood in for Chch rebuild

Full story

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Not exactly a stunning result for National’s promise last year to create 170,000 new jobs.

Addendum:

Will Statistics NZ  include the 719 foreign workers as part of any job growth stats for the next Quarter?

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Report_Card_employment

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