Archive

Posts Tagged ‘unemployment’

2014 – Ongoing jobless tally

.

Unemployment logo

.

Continued from: 2013 – Ongoing jobless tally

So by the numbers, for this year,

January

February

March

April

May

June

July

.

*

.

See also

Reported Job Losses

.

*

.

Current unemployment statistics

 

December 2013 Quarter

December 2013 quarter Quarterly change Annual change
(000) (Percent)
Employed* 2,297 +1.1 +3.0
Unemployed    147  -1.3  -8.9
Not in the labour force 1,103  -0.5  -1.0
Working-age population 3,547 +0.5 +1.2
(Percent) (Percentage points)
Employment rate  64.7 +0.3  +1.1
Unemployment rate    6.0  -0.2   -0.8
Labour force participation rate  68.9 +0.3  +0.7

All figures are seasonally adjusted. Source: Statistics New Zealand

* Employed: Includes people who worked one hour (or more) per week, whether paid or unpaid.

.

March 2014 Quarter

March 2014 quarter Quarterly change Annual change
(000) (Percent)
Employed 2,318 +0.9 +3.7
Unemployed    147   0.0  -1.1
Not in the labour force 1,093   -0.9  -2.9
Working-age population 3,559 +0.3 +1.4
(Percent) (Percentage points)
Employment rate  65.1 +0.4  +1.4
Unemployment rate    6.0   0.0   -0.2
Labour force participation rate  69.3 +0.4  +1.4

 

All figures are seasonally adjusted. Source: Statistics New Zealand

* Employed: Includes people who worked one hour (or more) per week, whether paid or unpaid.

.

Additional statistics

Officially unemployed stats;

In the March 2014 quarter compared with the December 2013 quarter:

  • The number of people employed increased by 22,000 people.
  • The employment rate rose 0.4 percentage points, to 65.1 percent.
  • The number of people unemployed was unchanged.
  • The unemployment rate remained unchanged at 6.0 percent.
  • The labour force participation rate increased 0.4 percentage points, to 69.3 percent.

Official unemployment: unchanged

The  under-employment stats;

Over the year, the total number of under-employed people increased by 27,200 to 122,600. As a result, the under-employment rate increased 1.0 percentage points to 5.3 percent.

Official under-employment: up

 

Source

Definitions

Jobless: people who are either officially unemployed, available but not seeking work, or actively seeking but not available for work. The ‘available but not seeking work’ category is made up of the ‘seeking through newspaper only’, ‘discouraged’, and ‘other’ categories.

Under-employment: employed people who work part time (ie usually work less than 30 hours in all jobs) and are willing and available to work more hours than they usually do.

Employed: people in the working-age population who, during the reference week, did one of the following:

  • worked for one hour or more for pay or profit in the context of an employee/employer relationship or self-employment 

  • worked without pay for one hour or more in work which contributed directly to the operation of a farm, business, or professional practice owned or operated by a relative 

  • had a job but were not at work due to: own illness or injury, personal or family responsibilities, bad weather or mechanical breakdown, direct involvement in an industrial dispute, or leave or holiday.

Source

.

.

[To  be periodically up-dated]

.

.

= fs =

Budget 2014 – Why we will soon owe $70 billion under this government…

.

NZ Government overseas debt 1993 to 2012

Graphic courtesy of The Daily Blog

.

A few reasons why our debt skyrocketed from 2008 onwards…

1. The Global Financial Crisis, which reduced corporate turnover and export receipts, thereby lowering the company tax take;

2. Two tax cuts (2009 and 2010) reduced government revenue, thereby necessitating borrowing more from offshore  to make up the difference. In essence, we borrowed from other peoples’ saving to put more money in our (mostly top incomer earners) pockets.

Using Parliament Library information, the Greens have estimated that this involved borrowing an extra couple of billion each year.

3. National could have kept Debt down by investing in job creation. Key’s cycleway project was promised to create 4,500 new jobs  – it failed spectacularly.

Instead, job creation was largely left to “the market”, which itself was having to engage in mass redundancies for businesses to survive the economic downturn.

This meant more expenditure on unemployed which went from 3.4% in 2008 to 7.3% by 2012 (currently sitting at 6% for the last two Quarters).

Ironically, part of our current economic “boom” is predicated on the Christchurch re-build – evidence that had National engaged in a mass housing construction programme in 2009, after it held it’s mostly ineffectual “Jobs Summit”, we would have;

A. Maintained higher employment,

B. Paid out less in welfare,

C. Persuaded more New Zealanders to stay home and not go to Australia to find work,

D. Addressed the current housing crisis we now have.

As usual, National’s short-sightedness; irresponsible 2008 election year tax-cut bribes; and misguided reliance on market forces resulted in New Zealand borrowing more than we really needed to.

.


 

References

NZ Herald: Govt borrowing $380m a week

Scoop media: Govt’s 2010 tax cuts costing $2 billion and counting

NZ Parliament: Government Proposals—Cycleway and Nine-day Working Fortnight

NZ Herald: Cycleway jobs fall short

Statistics NZ: Employment and Unemployment – March 2008 Quarter

Statistics NZ: Household Labour Force Survey: September 2012 quarter

Fairfax NZ: Jobs summit ‘fails to deliver’

TVNZ News: OECD report shows housing crisis in NZ – Labour

TVNZ News: Christchurch rental crisis ‘best left to market’ – Govt

Additional

Fairfax media: Public debt climbs by $27m a day

Fairfax media: Budget 2014: The essential guide

Previous related blogposts

Can we do it? Bloody oath we can!

 

 


 

.

The Cost of Living

Above image acknowledgment: Francis Owen/Lurch Left Memes

.

.

= fs =

Radio NZ: Focus on Politics for 21 February 2014

23 February 2014 Leave a comment

.

- Focus on Politics -

.

- Friday 21 February 2014  -

.

- Brent Edwards -

.

A weekly analysis of significant political issues.

Friday after 6:30pm and Saturday at 5:10pm

Disagreement about how to reduce poverty and inequality is looming as one of the big debates of election year.

.

Radio NZ logo - Focus on Politics

.

Click to listen: Focus on Politics for 21 February 2014 ( 16′ 38″ )

.

Acknowledgement: Radio NZ

.

.

= fs =

Roy Morgan Poll: Unemployment and Under-employment up in New Zealand!

12 February 2014 Leave a comment

.

Unemployed under-employment

.

A new Roy Morgan poll has un-employment in New Zealand steady at 8.5%, with a further 11.3% under-employed. Collectively,  19.8% of the workforce (519,000, up 69,000)  were either unemployed or under-employed. For the December Quarter 2013, according to Roy Morgan:

.

New Zealand real unemployment steady at 8.5%

.

By contrast, the last Household Labour Force Survey (September 2013 quarter) reported 6.2% unemployed, and the 2013 Census survey gave a figure of 7.1%.

Gary Morgan, of Roy Morgan said,

The latest Roy Morgan New Zealand December Quarter 2013 employment figures show New Zealand unemployment at 8.5% (unchanged from September Quarter 2013). However, New Zealand under-employment – those working part-time but looking for more work – has jumped to a record high 11.3% (up 2.7%). It should be noted that this is the fourth year in a row that under-employment has increased in the December Quarter. However, this year’s increase is substantially larger than in previous years and must represent a major concern for Prime Minister John Key seeking re-election.

“This means a total of 19.8% (up 2.7%) New Zealanders are either unemployed or under-employed – almost identical to the figure earlier last year in the March Quarter 2013 of 19.9%. Total New Zealand unemployment and under-employment is also significantly higher than when Prime Minister John Key won the 2011 Election (19.0%). Key clearly needs to reduce unemployment and under-employment during 2014 to have a strong chance of winning re-election to a third term in November.”

Bearing in mind that Statistics NZ defines being employed as anyone working one hour or more, per week, whether paid or unpaid, and it becomes apparent as to why unemployment/employment statistics in this country are skewed towards the low end. Statistics NZ is simply not presenting us with a real picture of  unemployment.

This, of course, suits governments of either hue, whether National or Labour-led.

Roy Morgan further  explained how their polling was conducted;

The Roy Morgan New Zealand Unemployment estimate is obtained by surveying a New Zealand-wide cross section by telephone. An unemployed person is classified as part of the labour force if they are looking for work, no matter when.

The results are not seasonally adjusted and provide an accurate measure of monthly unemployment estimates in New Zealand. The Statistics New Zealand Unemployment estimates are obtained by mostly telephone interviews.

Households selected for the Statistics New Zealand Labour Survey are interviewed each quarter for up to two years (eight interviews), with one-eighth of the sample being replaced each quarter. The first interview is conducted face-to-face. Subsequent interviews are then conducted by telephone.

Statistics New Zealand classifies an unemployed person as part of the labour force only if, when surveyed, they had actively sought work in the past four weeks ending with the reference week and were available for work or had a new job to start within the next four weeks.

Statistics New Zealand Unemployment estimates are also seasonally adjusted. For these reasons the Statistics New Zealand Unemployment estimates are different from the Roy Morgan Unemployment estimate.

There is a similar divergence caused in Australia’s ABS Unemployment estimates and the Roy Morgan Australian Unemployment estimates. Roy Morgan Executive Chairman Gary Morgan’s concerns regarding the ABS Unemployment estimate are clearly outlined in his letter to the Australian Financial Review, which was not published.

No doubt National/ACT supporters will find little joy in these figures and will casually dismiss them as unreliable or some other reason.

But one suspects they will sing a different tune when a Labour-led government is installed later this year, and Roy Morgan polling continues to show higher-than-official  unemployment statistics.

At that point the Right will suddenly “discover” Roy Morgan.

Note: The Household Labour Force Survey for the  December 2013 quarter was released on 5 February 2014.

.

*

.

References

NZ Parliament: Unemployment and employment statistics: the Household Labour Force Survey in context

Roy Morgan:  New Zealand real unemployment steady at 8.5% and a further 11.3% (up 2.7%) of workforce are under-employed

Roy Morgan:  Roy Morgan measures real unemployment in Australia not the “perception” of unemployment

Statistics NZ: 2013 Census QuickStats about national highlights

Statistics NZ: Household Labour Force Survey: September 2013 quarter

Statistics NZ: Definitions – About the Household Labour Force Survey

Radio NZ: Unemployment rate falls as more give up job hunt

.

*

.

18 percent of 18-24 year olds unemployed

Above image acknowledgment: Francis Owen

This blogpost was first published on The Daily Blog on 5 February 2014.

.

.

= fs =

Un-employment; under-employment; and the plain unvarnished truth… *** UP DATE ***

11 February 2014 1 comment

Continued from: Un-employment; under-employment; and the plain unvarnished truth

.

Unemployed under-employment

.

Additional to my original blogpost on The Daily Blog on 6 February.

In up-coming unemployment stats, I’ll be focusing on the Jobless and under-employed numbers, as well as the narrower “unemployed” stats from the Household Labour Force Survey (HLFS). It is evident from the numbers of under-employed and the extremely narrow defining on what constitutes an unemployed person, that we are not getting the full picture from the HLFS.

Coupled to that, the Census last year revealed unemployment to be at an astonishing 7.1% whilst Roy Morgan poll (5 December 2013) had the figure at 8.5%.

By comparison, the HLFS (at roughly the same time) had unemployment at 6.2%.

So unemployment stats ranged from 6.2% (HLFS) to 8.5% (Roy Morgan).

Coupled to that is the narrow definition of the HLFS used by Statistics NZ (see below), and we begin to see why the “official unemployment rate” appears more ‘benign’.

From the January 2014 Parliamentary report, Unemployment and employment statistics: the Household Labour Force Survey in context;

The Reserve Bank has expressed concern at its variance with other indicators. [2]   A commentator in the Westpac Bulletin, puzzled by the continued weakness of the HLFS in 2012 compared to the Quarterly Employment Survey (QES) and other labour market indicators, described it as ‘confusion reigns’ and suggested that survey ‘volatility’ played a role. [3]   The ANZ commentator is cautious: ‘The HLFS has been very volatile in recent years, and we and the Reserve Bank will treat the result with a degree of scepticism, preferring to take note of a wide range of labour market indicators.’ [4]  

These broader labour market indicators include external ones such as business and consumer surveys and job advertisements. These are in addition to those derived from official statistics such as changes in the employment and labour force participation rates, full- and part-time work, and hours worked, together with fine-grained analysis of changes by region, industry and age.

Various reasons for the volatility of the unemployment rate and its variance with other labour market indicators have been discussed – the impact of the recession, the dynamic nature of the labour market, the survey nature of the HLFS, and differences in coverage of the statistics. It has been suggested that the HLFS is more volatile at a turning point – either going into or out of recession…

The latest Household Labour Force Survey (HLFS) stats;

Officially unemployed stats;

The unemployment rate decreased over the quarter, down 0.2 percentage points to 6.0 percent. This decrease reflected 2,000 fewer people being unemployed [147,000]. The fall in unemployment was from fewer men unemployed.

Official unemployment: down

The  under-employment stats;

Over the year, the total number of under-employed people increased by 27,200 to 122,600. As a result, the under-employment rate increased 1.0 percentage points to 5.3 percent.

Official under-employment: up

The HLFS Jobless  stats;

In the year to December 2013, the number of people in the jobless category fell 27,400 to 257,100. Alongside the 15,000 fall in the number of people unemployed, there was also a 10,200 fall in the number of people without a job who were available for work but not actively seeking.

Official Jobless: down

Source

Observation #1: Under-employment is increasing, which brings into question how effective the “drop” in unemployment and Jobless actually is. As being “employed” is defined as working for one hour (or more) per week; with or without pay: the whole statistical reporting of true unemployment in New Zealand is now called into question. Especially with regards to the next point.

Observation  #2: “A 10,200 fall in the number of people without a job who were available for work but not actively seeking” signifies that the drop in Unemployment/Jobless can also be attributed to people giving up, as this Radio NZ report stated in February last year (2013).

Observation #3: As stated in the “Definitions” below, a person who is job seeking only through newspapers is not considered in the “Unemployed” category, but under the wider “Jobless” definition. Considering that a number of  households  cannot afford the internet, and do not qualify for WINZ registration, this makes a sizeable “chunk” of unemployed effectively invisible.

Observation #4: The above Observation suits successive governments, which are desperate to report lower unemployed so as to gain support from voters.

 

Definitions

Jobless: people who are either officially unemployed, available but not seeking work, or actively seeking but not available for work. The ‘available but not seeking work’ category is made up of the ‘seeking through newspaper only’, ‘discouraged’, and ‘other’ categories.

Under-employment: employed people who work part time (ie usually work less than 30 hours in all jobs) and are willing and available to work more hours than they usually do.

Employed: people in the working-age population who, during the reference week, did one of the following:

  • worked for one hour or more for pay or profit in the context of an employee/employer relationship or self-employment 

  • worked without pay for one hour or more in work which contributed directly to the operation of a farm, business, or professional practice owned or operated by a relative 

  • had a job but were not at work due to: own illness or injury, personal or family responsibilities, bad weather or mechanical breakdown, direct involvement in an industrial dispute, or leave or holiday.

Source

Up-coming unemployment stats will focus  on  Jobless and under-employed numbers, as well as the more restrictive “unemployed” stats from the HLFS. Hopefully this will create a more comprehensive ‘snapshot’ of what is happening in the jobs ‘market’.

Further Information

“4 out of 5 New Zealand homes had access to the Internet, up 5 percent since 2009.”

- Statistics NZ

The corollary to that is that one in five households – a staggering 20%! – do not have internet access.

Which means that job seekers on little or no income (especially if they do not qualify for WINZ support) may rely solely on newspapers to look for jobs.

But as I’ve reported above, using a newspaper to be job-seeking does not quality you as “unemployed”.

20%.

That’s quite a number.

No wonder of official unemployment stats are dodgy as hell.

.

*

.

References

NZ Parliament: Unemployment and employment statistics: the Household Labour Force Survey in context

Roy Morgan:  New Zealand real unemployment steady at 8.5% and a further 11.3% (up 2.7%) of workforce are under-employed

Roy Morgan:  Roy Morgan measures real unemployment in Australia not the “perception” of unemployment

Statistics NZ: 2013 Census QuickStats about national highlights

Statistics NZ: Household Labour Force Survey: September 2013 quarter

Statistics NZ: Household Labour Force Survey: December 2013 quarter

Statistics NZ: Definitions – About the Household Labour Force Survey

Statistics NZ: Household Use of Information and Communication Technology: 2012

Radio NZ: Unemployment rate falls as more give up job hunt

Previous related blogpost

The REAL level of unemployment

Roy Morgan Poll: Unemployment and Under-employment up in New Zealand!

.

*

.

18 percent of 18-24 year olds unemployed

Above image acknowledgment: Francis Owen

This blogpost was first published on The Daily Blog on 9 February 2014.

.

.

= fs =

Un-employment; under-employment; and the plain unvarnished truth…

11 February 2014 Leave a comment

.

Continued from:    Roy Morgan Poll: Unemployment and Under-employment up in New Zealand!

.

Unemployment logo

.

This is the plain, unvarnished truth that most New Zealanders don’t know; don’t understand, and quite frankly, many do not want to know or understand. For many – especially National/Act supporters living in their own fantasyland – this is the reality that would shatter their comfortable upper-middle-class world-view.

First, read Mike Treen’s excellent analysis on The Daily Blog, on 30 January;

.

EXCLUSIVE - Billions of dollars stolen from the unemployed

.

(Note the pathetic and largely ineffectual attempts by right wing blogger; self-proclaimed “social welfare expert”; and ex-Act candidate, Lindsay Mitchell, and one or two other National Party supporters to undermine Mike’s analysis. They are unable to address or answer even the most simple points Mike and others have raised.)

Then, read Matt McCarten’s piece in the NZ Herald, a few days later;

.

Matt McCarten - Rose-tinted view cruel fairy tales

.

And now, here’s the ‘kicker‘;

According to Statistics New Zealand, which carries out both the five yearly Census as well as the Household Labour Force Survey (HLFS), the definition of an employed person is so loose and wide-ranging as to make the term meaningless;

Definitions

About the Household Labour Force Survey

The Household Labour Force Survey (HLFS) provides a regular, timely, and comprehensive portrayal of New Zealand’s labour force. Each quarter, Statistics NZ produces a range of statistics relating to employment, unemployment, and people not in the labour force.

The survey started in October 1985 and the first results published were for the March 1986 quarter.

More definitions

The labour force category to which a person is assigned depends on their actual activity during a survey reference week.

This section includes definitions used in the HLFS release. These conform closely to the international standard definitions specified by the International Labour Organization.

Employed: people in the working-age population who, during the reference week, did one of the following:

  • worked for one hour or more for pay or profit in the context of an employee/employer relationship or self-employment 

  • worked without pay for one hour or more in work which contributed directly to the operation of a farm, business, or professional practice owned or operated by a relative 

  • had a job but were not at work due to: own illness or injury, personal or family responsibilities, bad weather or mechanical breakdown, direct involvement in an industrial dispute, or leave or holiday.

So, if youworked for one hour” – even without pay! ” – you are automatically classed as employed by this country’s statisticians.

No wonder that the Roy Morgan poll consistently reports that New Zealand has a higher unemployment rate than is generally reported by Statistic NZ’s HLFS or Census.

Quite simply,

  • It appears that our stats are horribly wrong and are under-stating the severity of unemployment in New Zealand by several degrees of magnitude,
  • Lower unemployment figures suit the agendas of successive governments (National, as well as Labour-led),
  • Community organisations are over-worked struggling to put  band-aids on the growing problem of hidden unemployment,
  • New Zealand as a whole suffers through loss of productivity; increasing costs due to poverty; and other socio-economic problems.

When a government agency purports to measure employment and unemployment, and defines being employed as “working for one hour or more”, either paid or unpaid, those are not statistics – they are a sick joke. In effect, we are fooling ourselves as a nation that we have “low unemployment”.

These are not facts – they are propaganda; half-truths; mis-information; lies-dressed-up-as-comforting-facts. The reality – unpalatable as it may be for many – is that our unemployment is much, much worse than we have been led to believe.

If New Zealanders want to keep up this pretense, they will eventually have to “pay the Piper”, as societal problems worsen. And then, the rioting begins.

Note: For future reference, any subsequent use of Statistics NZ data referring to unemployment, in any upcoming blogposts,  will carry the caveat;

Definition of Employed (by Statistics NZ) includes any person who is;

  • anyone working for only one hour (or more)
  • anyone not paid for their labour

Accordingly, Statistics NZ information may not present a fully accurate picture of this country’s unemployment/employment rates.”

*** Up-date ***

The HLFS results for the December 2013 Quarter reported a “drop” in unemployment from 6.2% to 6.0%.

Interestingly, as Radio NZ reported, “the fall in unemployment did not match the pick up in jobs, due to more people searching for work“.

This ties in with the fact that “employment” is defined as anyone working for one hour (or more).

If more people are looking for work, this suggests any number of factors,

  • The HLFS survey is failing to pick up accurate numbers of unemployment,
  • Statistics NZ’s definition for unemployed is too narrow,
  • The number of under-employed is (as Roy Morgan reveals) so high as to mask real unemployment.

Also interesting to note that the drop in the HLFS survey results mirror the fall in Roy Morgans polling, further lending credibility to the latter.

.

*

.

References

NZ Parliament: Unemployment and employment statistics: the Household Labour Force Survey in context

Statistics NZ: Hours Worked in Employment

Scoop News:  New Zealand Real Unemployment at 9.1%

Statistics NZ: Household Labour Force Survey: June 2012 quarter

The Daily Blog: EXCLUSIVE: Billions of dollars stolen from the unemployed

NZ Herald: Matt McCarten: Rose-tinted view cruel fairy tales

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

Statistics NZ: Household Labour Force Survey: September 2013 quarter

Scoop News: Inequality keeps rising, says UC social research expert

Statistics NZ:  Labour market statistics for the December 2013 quarter

Radio NZ: Unemployment falls to 6 percent

Previous related blogposts

The REAL level of unemployment

Roy Morgan Poll: Unemployment and Under-employment up in New Zealand!

.

*

.

unemployed welfare beneficiaries paula bennett

Above image acknowledgment: Francis Owen

This blogpost was first published on The Daily Blog on 6 February 2014.

.

.

= fs =

Latest Roy Morgan Poll – the Left has a Sh*tload of Work ahead of it!

10 February 2014 Leave a comment

.

Red Arrow Down

.

The latest Roy Morgan poll is not good news for the Progressive Left, with National regaining much the the loss it suffered in the last few polls, and up 3.5 percentage points since January figures. Labour and the Greens have dropped 0.5 and 1.5 percentage points, respectively.

In the chart below, the most recent Roy Morgan poll (January 20 – February 2, 2014) is compared to a recent TV3-Reid Research poll and previous Roy Morgan poll (6 – 19 January 2014);

.

Roy  Morgan poll 6 – 19 January 2014 TV3 – Reid Research Poll 2 February 2014 Roy Morgan poll – 20 Jan – 2 Feb 2014
Right Bloc

National

43.5%

44.05%

47.00%

Maori Party

2.00%

1.00%

1.50%*

Conservative Party

2.50%

2.10%

1.50%

ACT

0.00%

0.00%

0.00%

United Future/Peter Dunne

0.50%

0.00%

0.00%

Left Bloc

Labour

33.50%

33.50%

33.00%

Greens

12.50%

12.40%

11.00%

Mana

0.50%

0.30%

1.00%

Wild Cards

NZ First

4.00%

5.70%

4.50%

Internet Party

-

-

0.50%

.

For the First time, Kim Dotcom’s Internet Party is registering in a Poll. At 0.5%, it polls higher than both United Future and ACT. But unless it wins an electorate seat (unlikely), it will not gain representation in Parliament.

Tracking Roy Morgan’s polling;

.

Roy Morgan New Zealand Voting Intention - February 4, 2014

.

In their formal press release, Gary Morgan said,

“The resurgence for National comes as Prime Minister John Key has raised the possibility of a referendum on changing the New Zealand Flag coinciding with this year’s election. Key made the point that Canada, which changed its national flag in 1965 to a maple leaf, had never regretted its decision to remove the Union Jack.

“However, despite this week’s improvement for National the latest Roy Morgan New Zealand December Quarter employment statistics show 19.8% (up 2.7% since the September Quarter) of New Zealanders are unemployed or under-employed. A total of 519,000 New Zealanders (up 69,000). For John Key and National to retain their current lead and stand a good chance of re-election at the end of the year, further reforms are needed to reduce labour market regulation and provide real opportunity for the more than half a million New Zealanders looking for work or looking for more work to find gainful employment.”

Which just goes to show; never under-estimate politicians and their tax-payer funded media strategists ability to manipulate the public.

On a discordant note, Gary Morgan’s reference to “further reforms are needed to reduce labour market regulation” is odd, considering that New Zealand’s labour laws are amongst the most de-regulated and liberal in the OECD. It would be hard to see what Morgan is referring to other than doing away with the minimum wage; all remaining health and safety laws; and banning Unions entirely? Bizarre.

Note: Taken between 20 January and  2 February 2014, the poll was conducted through  calling 846 respondents, both on landline and mobile telephones. Currently, Roy Morgan is the only polling company that calls cellphones as well as landlines.

The previous Roy Morgan poll was conducted by calling  1,509 respondents, As such, the lower figure of respondents may be a factor in National’s “improving” fortunes? (Or else, people just liked talking about the flag…)

One thing is for certain;  Labour, Green, and Mana supporters  are going to have to work bloody hard to effect a change in government this year. It’s going to be a tough year!

.

*

.

References

NZ Parliament: Unemployment and employment statistics: the Household Labour Force Survey in context

TV3: 3 News-Reid Research poll shows Peters as kingmaker

Roy Morgan: National (47%) regains lead from Labour/ Greens (44%)

Previous related blogposts

Census, Surveys, and Cellphones (Part rua) (12 December 2013)

Roy Morgan Poll: Unemployment and Under-employment up in New Zealand!

TV3 Polling and some crystal-ball gazing

Latest Roy Morgan poll bad news for National

.

*

.

National ACT out

Above image acknowledgment: Francis Owen

This blogpost was first published on The Daily Blog on 7 February 2014.

* The original blogpost on The Daily Blog contained an erroneous entry for The Conservative Party under the “Roy Morgan poll – 20 Jan – 2 Feb 2014″ category. The actual figure is 1.5% (as shown here), and not 2.5%. My stuff up. (Hat-tip: Weka)

.

.

= fs =

Radio NZ: Nine to Noon – Brian Easton – 7 February 2013

.

 

- Nine To Noon -

 

.

 

- Friday 7 February 2014  -

 

.

 

- Kathryn Ryan & Brian Easton -

 

.

Income inequality in New Zealand is set to become a central election issue, but is it really getting worse?

Brian Easton offers a solution how to address income inequality. Listen and find out what he suggests.

.

Radio NZ logo -  nine to noon with Brian Easton

 

.

 

Click to listen: Brian Easton, Economist ( 13′ 37″ )

 

 

 

.

 

Acknowledgement: Radio NZ

(Hat tip: Murray Simmonds)

.

 

.

 

= fs =

Journalists encouraging irresponsible government policy?

6 January 2014 2 comments

.

John Armstrong - Cutting tax tempting for National

Source

.

Sorry, John, but precisely WHO is talking about tax cuts?

Because so far, all I’m hearing is a couple of journos putting the question to Dear Leader and his faithful little side-kick, Lassie Bill English. No one else is seriously contemplating cutting taxes – not when New Zealand’s sovereign debt is now $60 billion as at 9 November this year – and  increasing by $27 million every day since Key’s hopelessly  incompetent government came to power in 2008.

According to Hamish Rutherford, writing for Fairfax Media, this equates to $13,000 for every man, woman, and child in New Zealand – and expected to increase by another $10 billion by 2017.

We need to address this problem – not fuel it by increasing consumption of imported goods, thereby worsening our balance of payments.

For god sakes, stop encouraging National to engage in any further irresponsible slashing of revenue.  National’s two previous tax cuts in 2009 and 2010 did nothing to  help stem the growth in our sovereign debt. Not when revenue fell by up to $4 billion after those tax cuts.

We have other priorities.

For example, why is the Wellington City Mission short of $2 million to carry out it’s valuable work to assist the poorest in our society? It is obscene that the Mission will have to consider reducing some services, as Chief executive Michelle Branney recently suggested.

Why are New Zealand’s poorest families unable to afford basic  medicines since this government-for-the-rich increased prescription charges in January 2013? When National cut taxes, it attempted to make up for the revenue shortfall by raising GST (despite promising in 2008 not to) and increasing government charges such as for prescriptions, Court fees, etc.

Why are New Zealanders needlessly suffering from rare diseases because PHARMAC cannot afford life-giving medication?

Why are poverty-related diseases making a come-back with such a vengeance?

Children’s Commissioner Dr Russell Wills…

… report is expected to reveal a 12 per cent rise from 2007 to 2011 in hospital admissions for poverty-related illnesses such as acute bronchiolitis, gastroenteritis, asthma, acute upper respiratory infections and skin infections.

“Most New Zealanders will find the numbers of children affected by disease shocking,” Wills told the Herald on Sunday, “but for those of us working clinically with families in poverty it is not surprising.”

Wills also works as a paediatrician in Hawke’s Bay. He said hospital wards were now full of poor, sick children every month of the year – not just in winter. There was no longer a “summer lull” in diseases.

English found himself so cash-strapped after their tax cut profligacy that, by 2012, he was even reaching into the meagre pay-packets of newspaper delivery boys and girls to grab extra tax revenue.

Instead of frittering away taxes, we need to be looking at the real problems confronting us;

  • Address child poverty problems

When children go to school hungry because families cannot afford sufficient food after paying high rents, electricity bills, etc. then there is something seriously wrong with our country.

Especially when we are now seeing children eating out of rubbish bins because there is no food at home for them. I refuse to believe that most New Zealanders want this kind of society for their children.

This is not the New Zealand I grew up in.

The next Prime Minister must make this a #1 priority, and begin with taking on the role of Minister for Children and implementing a comprehensive Food In Schools programme (not the shonkey half-measures undertaken by National earlier this year).

Next on the agenda; returning welfare payments to pre-1991-slash levels (inflation indexed); reduce prescription prices for medicine;  and implement a massive job creation programme.

  • Pay down debt

From 2000 to 2008, Clark’s administration not only paid down debt, but also posted Budget surpluses,

.

Government Debt

New Zealand Government Debt To GDP

Source

.

Government Budgets

New Zealand Government Budget

Source

.

To be fair, Labour’s Finance Minister, Michael Cullen did not have the Global Financial Crisis to contend with. But by exercising fiscal prudence -  instead of  tax-cut lolly-scrambles demanded by the then-National opposition – he left the country in a fit state to weather the on-coming financial storm that was about to envelope the planet.

By the time National came to power in 2008, the global financial crisis was well and truly upon us, with the collapse of Lehman Bros on 15 September 2008. The GFC had started earlier, and signs were apparent to all but the most intransigent optimist that dark storm clouds were on the horizon.

As unemployment rose and economic activity slowed, National persevered stubbornly with it’s tax-cut programme – a move that would further indebt this country and put our government’s books back into the red again. At one stage, National was  borrowing $380 million  a week to make up for the shortfall.

This despite the fact that it was common knowledge that we were facing a dire crisis, as Tracy Watkin and Vernon Small reported on 23 April 2009,

The recession was expected to blow a $50b hole in the economy during the next three years, plunging the Government further into the red as costs climb and tax revenues fall.

“That’s $50 billion we will not recover as a nation, and $50 billion that cannot be taxed by the Government,” Mr English told a business audience in Auckland.

And yet, despite his own candid admission, English went ahead with tax cuts that we could ill afford, and had to make up with massive borrowings; cuts to government services; increased user-pays; mass sackings of state sector worker, and eventual partial asset sales. Even welfare was targetted for “reforms” (read; cost cutting) to claw back government spending.

Little wonder that by September 2011, credit rating agencies Fitch and Standard & Poors had downgraded us.

  • Invest in upskilling the unemployed

Why are we importing tradespeople from overseas when we have 7.1% (153,210) unemployment in this country?

National’s response to the skills shortage was this ideological fob-off from Bill English, in June 2011,

In the first place, it is the responsibility of the companies that expect to rebuild Christchurch to ensure that they have the skills.

And to ensure that everyone understood that National was maintaining it’s long-held tradition of shirking responsibility, he added,

Of course it will be tight, because they are competing with very, very large salaries, particularly those in Western Australia where something like $250 billion worth of capital projects are in the pipeline.”

IBID

That’s the problem with a government that places it’s faith in a free market solution to everything (except corporate welfare) – nothing happens.

Wouldn’t it have made more sense to offer free skills training to every unemployed person in New Zealand, along with subsidised accomodation in Christchurch for workers moving from other towns and cities to take up work offers?

There would have been a cost, to be certain. But that would have been off-set by (a) reduced welfare payments; (b) upskilled workers who would continue to use their new training for subsequent building projects; (c) more taxes paid by more employed workers;  and (d) a flow-on effect to other businesses as income-earning workers spent their wages.

The $4 billion frittered away in tax cuts would have made a considerable dent in our unemployment and given a much needed boost to our economy. And by providing work to the unemployed, the government would have saved millions in welfare.

But by sitting on it’s hands and doing nothing, National has maintained the status quo; 160,000 unemployed wasting their time, and requiring more of our taxes to be paid for the dole.

Is this crazy or what?

Hopefully an incoming Labour-Green-Mana(-NZ First?)  will have more sensible policies than what we’ve seen thus far from National. (Which won’t be hard to achieve.)

And other areas which desperately require State intervention,

  • A fairer taxation system, including reducing (or even eliminating) GST; introducing a comprehensive Capital Gains Tax;  looking at a Financial Transactions Tax (or “Robin Hood” tax, as Mana refers to it); making the first $20,000 tax free; and increasing tax for the top 1%.
  • A sensible pricing system for electricity especially for low/fixed-income earners.
  • Increase funding for early childhood education.
  • More state housing, so our fellow New Zealanders have a decent roof  over their heads.
  • Invest in public transport, especially in Auckland, before the city grinds to a stop.

Those are the things we need to look at. Not cutting taxes for the well off (which is usually what the Nats end up doing).

These should be the priorities of a sensible government. Anything, everything,  else is grossly irresponsible.

Otherwise, what the hell are we leaving our children?

.

debt-mountain-cartoon.

May I have some food, a home, parents

.

Postscript

Armstrong’s article on tax cuts features a large image of a smiling David Cunliffe. Note; Cunliffe. Not English, nor John Key.

Is there a subtle sub-text being conveyed here that I’m missing? Perhaps I’m getting the wrong ‘message’ from Armstrong’s piece, especially when he finishes with this intriguing comment,

Overall, English will not want to tie himself to future tax cuts without more solid evidence they can be sustained.”

My… that almost sounds like a veiled warning, doesn’t it?

This blogpost was first published on The Daily Blog on 30 December 2013.

.

*

.

References

Bill English: Dr Cullen maintains tradition of tax-cut denial

Wikipedia: Bankruptcy of Lehman Brothers

NZ Herald: Govt borrowing $380m a week

Fairfax media: $50b hole in economy

TV3 News: Double credit downgrade a double blow for NZ economy

Fairfax media: Key ‘no GST rise’ video emerges

NZ Herald: Food parcel families made poor choices, says Key

The Press: Irish rush for quake jobs

NBR: Chch rebuild companies will have to find skilled workers – English

TV1 News: Rise in prescription charges ‘not fair’ – Labour

NZ Herald: Tax cuts: High earners set to benefit most

NZ Herald: Budget 2012: ‘Paper boy tax’ on small earnings stuns Labour

Fairfax media: $4b in tax cuts coming

Dominion Post: Bennett expects welfare reform to save $1.6b

Fairfax media: Public debt climbs by $27m a day

Radio NZ: Pharmacies ‘carry cost’ of increases

NZ Herald: Child poverty ills rising

Fairfax media: Hungry kids scavenge pig slops

Fairfax media: Mum Not Prepared To Wait And Die

Radio NZ: PM defends record of helping poor families

Radio NZ: 5th year in deficit at City Mission

Radio NZ: Funding declined for housing project

NZ Herald: John Armstrong: Cutting tax tempting for National

The Atlantic: Tax Cuts Don’t Lead to Economic Growth, a New 65-Year Study Finds

Sources

Trading Economics:  New Zealand Government Debt To GDP

Trading Economics: New Zealand Government Budget

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)

Statistics NZ: 2006 Census

Statistics NZ: 2013 Census

.

.

= fs =

2013 – Ongoing jobless tally

23 December 2013 23 comments

.

Unemployment logo

.

Continued from: 2013 – More redundancies…

So by the numbers, for this year,

January

February

March

April

May

June

July

August

September

October

November

December

See also

Reported Job Losses

(Nice to see Interest.Co.Nz following my lead in recording job losses around the country!)

Current unemployment statistics

June 2013 Quarter

June 2013 quarter Quarterly change Annual change
(000) (Percent)
Employed 2,242 +0.4 +0.7
Unemployed 153 +3.7 -5.1
Not in the labour force 1,127 0.0 +2.2
Working-age population 3,523 +0.4 +0.9
(Percent) (Percentage points)
Employment rate 63.6 -0.1 -0.2
Unemployment rate 6.4 +0.2 -0.4
Labour force participation rate 68.0 +0.1 -0.4

All figures are seasonally adjusted.  Source: Statistics New Zealand

September 2013 Quarter

September 2013 quarter Quarterly change Annual change
(000) (Percent)
Employed 2,272 +1.2 +2.4
Unemployed 150 -2.6 -13.1
Not in the labour force 1,109 -1.5 +0.5
Working-age population 3,531 +0.2 +1.1
(Percent) (Percentage points)
Employment rate 64.4 +0.7 +0.9
Unemployment rate 6.2 -0.2 -1.0
Labour force participation rate 68.6 +0.5 +0.2

All figures are seasonally adjusted.  Source: Statistics New Zealand

 

.

.

= fs =

The REAL reason for the drop in welfare numbers

22 December 2013 22 comments

There is an underlying reason for this headline,

.

Number on benefits drops, reaction mixed - 16.7.2013

Source

.

In the above July 2013 article, Social welfare Minister, Paula Bennett proudly asserted,

Social Development Minister Paula Bennett said today there are now 309,782 people on a benefit compared with 320,041 last year.

[...]

That’s a reduction of more than 10,000 on welfare over the past 12 months and I am particularly pleased that 5600 of them are sole parents.”

IBID

Nowhere in the article does it state where those 10,000 welfare beneficiaries ended up.

Was it in paid work?

Did they go back into full-time education or other courses?

Or were they simply dumped from WINZ’s books?  Like the recipient of these letters that were recently provided to me? (We will call him/her “Citizen X” – all identifying details have been redacted to respect his/her privacy and protect him/her from possible reprisals by Bennett, her office, or MSD official. Same for the WINZ officials whose names appear on the letters.)

.

WINZ letter dec 2013 (1)WINZ letter dec 2013 (2)

.

A few days later, “Citizen X” received this letter. Adding insult to injury, they were demanding that an outstanding amount (an amount between $200 to $300) be repaid;

.

WINZ letter dec 2013 (3)

.

This was despite that “Citizen X” had had her/his unemployment benefit cancelled – not because s/he had found paid employment (s/he hadn’t) – but because s/he had fallen foul of National’s harsh new welfare laws.

In part, the MSD website states,

On Jobseeker Support for more than 12 months

If you still require Jobseeker Support after 52 weeks you’ll have to re-apply for your benefit. We’ll let you know when you have to re-apply and tell you what you need to do.

When you re-apply, you’ll also need to complete a Comprehensive Work Assessment. This will identify what steps you’ve taken to find work and what help you might need from us to be more successful in getting a job.

Source

In effect, National has placed a one year time limit on all unemployment benefits. They haven’t advertised it as such – they refer to it as “re-applying”.

As Simon Collins reported in the NZ Herald back in January (2013),

The Council of Christian Social Services pointed yesterday to “a growing gap between those who receive a benefit and those in genuine need who are either losing or unable to obtain social welfare assistance”.

Unemployment increased in the two years to last September from 144,500 to 170,000, but those on unemployment benefit dropped by almost a quarter from 65,281 to 50,390.

Sole parents on the domestic purposes benefit have also dropped in the past year. Rules for both benefits were tightened in September 2010, when unemployment beneficiaries had their benefits cancelled if they failed to reapply after a year.

Sole parents were required to look for part-time work when their youngest child turned 6, an age reduced to 5 last October.

Christian Social Services executive officer Trevor McGlinchey said his members were reporting increases in demand for their services as people found benefits harder to get.

[...]

Ironically, the tighter welfare rules may also partly explain the rise in unemployment, as beneficiaries are counted as unemployed only if they are actively looking for work. Employment slipped only slightly from 63.6 per cent to 63.2 per cent of adults in the two years to last September, but the “jobless” rose from 7.1 per cent to 8.4 per cent because those not looking for work fell from 29.3 per cent to a record low of 28.4 per cent.

Source

What this  means is that eventually a significant number of people simply give up re-applying for the minimal amount that the dole pays ($206.21 per week).

Constant, repetitive, incessant demands for information and a less than helpful attitude created by MSD policy create an atmosphere of naked hostility.

The complexity of applying, with the multitude of 73 pages of WINZ  forms and other bits of paper, may also prove to be a dis-incentive for many – especially those for whom English, reading ability, and general low education is a real problem.

.

73 pages of WINZ forms

.

The massive number of WINZ forms and other documents handed out to applicants has been covered in this previous blogpost; WINZ, waste, and wonky numbers

These are some of the bureacratic barriers which National and MSD have created for the most vulnerable and dispossessed people in our country.

All done to “massage” beneficiary statistics.

As Bennett said, back in July,

That’s a reduction of more than 10,000 on welfare over the past 12 months and I am particularly pleased that 5600 of them are sole parents.”

No doubt, National will use this “success” at the next election and a sizeable portion of the voting population will be sufficiently uninformed and  gullible enough to accept this without question.

It will be up to those who oppose National and it’s virulent brand of right-wing politics to spread the truth; under this party, poverty and inequality will continue to worsen.

.

Hungry kids scavenge pig slops

Source

.

Because even the Prime Minister has had to reluctantly concede the enormity of what we are facing,

.

Key admits underclass still growing

Source

.

Pushing people off welfare, regardless of whether or not they have jobs to go to, just to massage welfare statistics, is a vile obscenity.

This will not “lift people out of poverty”, as Key has promised.

It is increasing poverty.

How long will it be before this growing poverty, sense of hopelessness, and constant attacks by National and MSD results in the inevitable outbreak of violent civil disturbance? Desperate people tend not to care – especially for the empty promises of well-fed, well-housed, comfortable politicians.

Is this really what New Zealanders want for their country?

The clock is ticking…

.

clock.

This blogpost was first published on The Daily Blog on 15 December 2013.

.

*

.

Sources

NZ Herald: Welfare rules force people to struggle on without benefits

Fairfax media:  Number on benefits drops, reaction mixed

Fairfax media: Hungry kids scavenge pig slops

NZ Herald: Key admits underclass still growing

References

Work and Income:  Jobseeker Support

Additional

Gordon Campbell: Ten Myths About Welfare -The politics behind the government’s welfare reform process

Previous related blogposts

<p>. Source . National today announced that ” href=”http://fmacskasy.wordpress.com/2013/10/21/random-thoughts-on-random-things-4/?relatedposts_to=8882&relatedposts_order=1″ rel=”nofollow”>How Paula Bennett and National are wasting our taxdollars

Random Thoughts on Random Things #4…

OIA Request points to beneficiary beat-up by Minister Chester Borrows

The REAL level of unemployment

.

.

= fs =

The REAL level of unemployment…

20 December 2013 10 comments

.

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

.

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,

.

Unemployment Rate - 2008 - 2013

Source

.

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,

.

Unemployment Rate - 2013 Census

IBID

.

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%,

.

Unemployment Rate - 2006

Source

.

- 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

.

catching-up-with-bangladesh

.

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,

.

Budget 2011 - Govt predicts 170,000 new jobs

.

Are we there yet?

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

.

*

.

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

.

.

= fs =

Random Thoughts on Random Things #3…

21 October 2013 3 comments

Why is it…

That drug testing the unemployed is seen by National Ministers as a good thing…

.

Fail a drugs test and lose your benefit, job seekers warned

By Isaac Davison @Isaac_Davison

5:30 AM Monday Jul 2, 2012
Minister for Social Development Paula Bennett. Photo / Natalie Slade

Beneficiaries who refuse or fail drug tests while applying for jobs will have their welfare cut from mid-2013 under the Government’s next round of welfare reforms.

The National-led Government says there are now no consequences for drug-takers who opted out of job applications when faced with a drug test.

Social Development Minister Paula Bennett told the Herald the new Welfare Reform Bill would have new requirements for drug testing, but the finer details were still being finalised.

National’s pre-election policy document said beneficiaries who did not apply for a job because a prospective employer asked them to take a drug test would have their benefit cancelled.

If they took the drug test and failed it, they would also be sanctioned.

Source: NZ Herald

.

… But drug testing the Police (who regularly have access to lethal weapons), is a big No-No?

.

Police minister says no to drug tests at work

Updated at 7:38 pm on 17 October 2013

Police Minister Anne Tolley says police staff should not be drug-tested in the workplace.

Her comment came after a police prosecutor on Thursday admitted charges of using and possessing methamphetamine, and using cannabis.

Anne Tolley.

Anne Tolley.  NATIONAL PARTY

Brent Thomson posted videos of himself using methamphetamine, and blogs describing his use of drugs at sex parties in April and May, online.

Police found a small amount of the drug “P” and syringes when they searched the 49-year-old’s home. He is seeking a discharge without conviction in the Waitakere District Court.

Thomson, who worked mainly in the Family Violence Court and the Auckland District Court, is also subject to an employment investigation.

Anne Tolley says the overwhelming majority of police staff are doing a fantastic job and they should not face workplace drug testing. She says police are quick to prosecute their own if there is any wrongdoing.

The Police Association agrees that staff shouldn’t be given workplace drug tests. President Greg O’Connor says the public should be re-assured by the systems that police already have.

Source: Radio NZ

.

All together now; H… Y… P… O… C… R… I… S… Y.

Yep, hypocrisy.  National has it mastered to a fine art.

With a good helping of beneficiary bashing.

Because if you, as a government can’t fire up the economy to create jobs and reduce unemployment (as we had under the previous Labour-led government), then the next “best” thing is to paint the unemployed as “lazy druggies”. If enough of the middle class (those who  still have jobs or don’t regularly associate with unemployed friends and family) swallow this mindless pap, then that translates nicely into votes at election time.

Never underestimate the power of demonising a minority – especially if there are votes in it.

Just ask any old historian familiar with Germany in the 1920s and 30s…

.

Jewish_shops_in_Nazi_Germany

 

.

.

*

.

Previous related blogposts

Labour: the Economic Record 2000 – 2008

2013 – Ongoing jobless talley

 

.

.

= fs =

 

Helen Clark – reminding Key & Co what’s important

11 August 2013 4 comments

.

Tackling unemployment would be Clark's priority

Source: Radio NZ -  Tackling unemployment would be Clark’s priority

Listen: Radio NZ – Helen Clark on Sunday Morning

.

No doubt John Key will make some derisory, dismissive response to Ms Clark’s justified concerns.  He’ll conveniently forget that under Labour, unemployment dropped to record lows;

.

New Zealand Unemployed Persons 2008 - 2012

Source:  New Zealand Unemployed Persons

.

new zealand unemployment rate 2002 - 2012

Source: New Zealand Unemployed Rate

.

Of course, there was the Global Financial Crisis and the resultant recession, but…

  1. That same rationale is not extended to the unemployed, solo-mums, and others, who are painted as wilfull “dole bludgers”, “druggies”/”alcoholics”/”gamblers”, “work shy”, “irresponsible breeders”, etc, by Bennett, Key, and other National  Ministers. For them, the excuse of a global crisis that destroyed millions of jobs doesn’t factor in (see:  World unemployment figures set to rise in 2013, claims UN labour agency).
  2. Aside from the Christchurch re-build National has done very little to implement job creation policies. A buy-NZ for governmenment procurement would help boost employment, instead of sending jobs overseas by buying from low-wage societies.
  3. Job training and upskilling of unemployed has been so poor that workers from overseas are being brought into the country to make up for a skills-shortage.
  4. Even a project such as the dodgy Skycity convention centre appears to have  over-inflated job numbers. (see: Puzzle of Key’s extra casino jobs)

So before Key predictably opens his mouth and blames others for our chronically high unemployment rate, he could do well to ponder these points.

Anyway, when it suits Key, he is only too happy to invoke Ms Clark’s well-deserved reputation as an effective Prime Minister. Note his constant references to the former Prime Minister when it suits him – especially over the GCSB and associated legislation;

“That is just the way things are,” he said. “We live in a global environment where there are real threats, that’s the point we make with the GCSB legislation, it is why Helen Clark passed the legislation in 2003.”

And,

“It is obviously small numbers but there are small numbers of radicalised New Zealanders, who have either gone over into those environments or returned, and I don’t think this is terribly new, I suspect Helen Clark would have signed warrants as well.”

Source: TVNZ – Spy law legislation passes second reading

If Key is finding it chilly right about now, it’s because he is standing in the the shadow of his predecessor. Ms Clark certainly did not repeatedly blame others for her failings.

Something else Key might consider.

.

key and Woman's Weekly

.

This blogpost was first published on The Daily Blog on 7 August 2013.

.

.

= fs =

Some more repetitive bene-bashing & a reply

8 August 2013 5 comments

From the letters to the editor page in the Dominion Post, on 8 August – a letter to the editor I took exception to;

.

Amanda Purdy - Dominion Post - 8 August 2013

Amanda Purdy – Dominion Post – 8 August 2013

.

My reply to Ms Purdy,

.

from:     Frank Macskasy
to:     Dominion Post <letters@dompost.co.nz>
date:     Thu, Aug 8, 2013 at 11:42 AM
subject:     letter to the editor

.

The Editor
DOMINION POST
.
It’s a shame that Ms Purdy mistakenly conflates the worthy issue of workplace safety with that of denigrating the unemployed. (8 Aug)

Since when have those who’ve been made redundant since 2008 become ‘druggies’? This is what she is suggesting with the blanket statement, “smoke dope or work but we can’t expect the taxpayer to fund people who smoke dope”.

Is she suggesting that those laid off from Summit Wool Spinners, Southern Institute of Technology, Geon Group, Ellerslie TAB,  Department of Conservation, Telecom, Park Road Post,  Fonterra, Fisher Funds, Ministry of Justice, NZ Post,  Solid Energy, Delta Utility Services, Canterbury Spinners, WINZ, Holcim Cement, Oringi Freezingworks, Tiwai Smelter, etc, etc – have all suddenly acquired a taste for cannabis?

These people are not dope-heads. They are all Ms Purdy’s fellow New Zealanders – victims of a global financial crisis they had no hand in making, and which is still making it’s effects felt throughout our society and economy.

If Ms Purdy is concerned about workplace safety – as is the CTU – then drug test everyone. No exceptions.

That includes politicians and letter writers like Ms Purdy and myself.

Otherwise she is simply repeating, ad nauseum, National’s desperate  bene-bashing  distractions, to avoid responsibility for rising unemployment.

.

-Frank Macskasy
(address & phone number supplied)

.

Meanwhile, unemployment has risen from 6.2% to 6.4%, according to the most recent Household Labour Force Survey,

.

Economists play down jobless rise

Source: NZ Herald – Economists play down jobless rise

.

Another 5,000 drug-users according to people like Ms Purdy?

.

.

= fs =

Bennett & Borrows – where are the jobs?!?!

1 August 2013 7 comments

From a recent Fairfax report,

.

Hundreds apply for 90 Fonterra jobs

Source: Fairfax Media – Hundreds apply for 90 Fonterra jobs

.

And there have been plenty of other similar situations, where job applicants have outnumbered available vacancies. See:

Employment-Unemployment Fact Sheet #1: Queues for Vacancies

So instead of welfare “reforms” which consist of re-naming various benefit categories and constant belittling of unemployed as drug-takers; alcohol abusers; prolific “breeders”; and mis-treating children – what is really needed are,

Jobs

But aside from a Convention centre deal with Skycity, which will most likely result in more problem gamblers, this National government has done precious little to generate more jobs for the unemployed.

Even the Christchurch rebuild, we are now told, will be done by foreign workers,

.

Deal opens door for Chinese workers in Christchurch rebuild

Source: TV3 -Deal opens door for Chinese workers in Christchurch rebuild

.

Why is there a “shortage of 17,000″ workers?!

The last big quake hit Christchurch in February 2011 – two and a half years ago! In that time, what have National ministers been doing?  Surely they must have received advice from governmental departments; industry organisations; and other expert advisers, that an army of trained workers would be required in the coming years?

Why was no plan set up to,

  1. Assess New Zealand’s current “stock” of skilled tradespeople,
  2. Begin a crash-programme to train people where perceived gaps were indicated,
  3. Organise infra-structure (accomodation, transport, meals, etc) to cater for the Rebuild Army

This is how previous governments built past massive projects such as the Manapouri power station, Clyde, etc: planning.

Indeed, I spoke to one person who worked at the Deep Cove end of the Manapouri Power Project in the 1960s. He  informed me that as part of his employment, his accomodation (aboard the Wanganella) and meals were all paid for.  (He also mentioned how his lunch box and tools kept regularly vanishing, and he thought his work-mates were playing pranks on him. Then, one day he saw a Kea make of with his shiny new lunchbox…)

This was the style of planning, support, and incentives offered to workers to travel to an isolated part of the country where the work was difficult, dirty, and often dangerous.

The building of our nation was certainly not left to the vaguaries of the “marketplace” to achieve.

Because really, when you hear comments like this,

“We frankly can’t run our industry without significant numbers of immigrant workers,” says Federated Farmers president Bruce Wills. “The industry is just too important to be hijacked by a lack of labour. If we can’t get Kiwis in these roles, then we’ve got to make it easy to attract and retain good immigrant labour.”

The problem is there aren’t enough New Zealand workers with the right skills.

“They need to be experienced,” says John Hughes of Rural Contractors New Zealand. “They need to have a work ethic. They need to have an ability to hit the ground running.”

Source: IBID

- this is nothing but a pathetic excuse that the “marketplace” has failed spectacularly to plan ahead and invest in up-skilling New Zealand workers.

“They need to be experienced,” says  John Hughes of Rural Contractors New Zealand, without explaining where that experience will come from if  workers are not hired and trained by people like Mr Hughes.

“They need to have a work ethic,” says John Hughes. Really? Is Hughes saying that since 2008, New Zealanders have misplaced their work ethic?? Yet, the situation of 900 people applying for jobs at Fonterra (see above) seems to indicate that workers not only have a work ethic – they want the work to go with it.

“They need to have an ability to hit the ground running,” says John Hughes. What does that mean? Because what I’m getting from Mr Hughes’ statements is nothing but self-serving excuses that his industry – Rural Contractors New Zealand – has done stuff all to train workers to meet their needs.

Who else is he expecting to meet the needs of the “marketplace”? The State?

But… isn’t the State supposed to stay out of the marketplace, according to neo-liberal business doctrine?

Anyway, this lazy, incompetant government is the last place we should be looking for active leadership on this growing problem (I refuse to call it an “issue”).  As Immigration Minister Michael Woodhouse said on TV3′s The Nation, on 21 July,

“Any employer will tell you when Work and Income sends some workers to them they will have some of those barriers. That is they’re not skilled or educated enough to do the jobs. They may have some issues with drug and alcohol or mobility, and I think those are barriers that we need to continue to move so Kiwis are first in line for the jobs.”

Source: IBID

So what Woodhouse is trying to tell us is that 95,000 New Zealanders suddenly developed a drug habit, alcohol dependency, lost their skills, forgot their education since 2007/08?

.

New Zealand Unemployed Persons 2008 - 2012

Source: Trading Economics – Unemployed Persons in New Zealand

.

So the Global Financial Crisis, which National regularly uses as an excuse for the poorly performing economy, had no part to play in the massive growth in unemployment from 3.50% in December of 2007 to the high of 7.3%  last year?

Which is strange, because even social welfare minister, Paula Bennett, was forced to concede on TV1′s Q+A, in 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

Let’s be quite clear here. When Borrows, Bennett, and other National Ministers refer to “drug dependency”, “alcohol abuse”, “lack of skills”, “lack of work ethic”, and other derogatory terms for unemployed and other welfare recipients – in reality they are shifting blame for on-going chronic unemployment from government inaction, to the victims of National’s “hands-off”, market-based policies.

This is a failure on the part of a government that is so wedded to hands-off, free market policies, that it’s hands are “tied” and cannot bring itself to be proactive on this growing problem.

National’s failure is so entrenched; so widespread; that it is, in effect, utterly paralysed to do anything.

The only recourse is to import cheap foreign labour to make up for this gross deficiency in government and industry  planning.

Once upon a time, our great little nation had the determination, resources,  vision, and sheer guts to build dams and roads  in isolated, rugged, wilderness areas.

By contrast, after two and a half years, we are scrambling to find workers trained to whack a nail into a piece of four-by-two.

With 146,000 jobless (HLFS) there is no reason in this wide world why government and industry groups, with union participation, could not have begun planning from Day One after the February 2011 earthquake.

What, exactly, do we pay the Minister for Earthquake Recovery (Gerry Brownlee) to do?

This mess is further proof (not that we needed it) that a hands-off, free-market approach, will not deliver on large scale development where only  the State has the necessary resources to plan and execute such projects.

Blaming the unemployed for lack of planning may fool some gullible members of the public. But the rest will eventually begin to question why we are importing foreign labour when 146,000 pair of hands are ready, willing, and able to do the work.

Once upon a time, we could do this. We rebuilt Napier after the 1931 earthquake, a more devastating seismic event than the 2011 Christchurch quake,

Few insurance policies covered earthquakes, and many insurers refused to pay for fire damage that resulted from the quake. In 1931 Parliament had passed the Hawke’s Bay Earthquake Act, which provided loans for local companies and individuals to rebuild their premises. Because of the economic depression, however, the funds granted were far from adequate, and repayment terms were harsh. Much of the money for recovery came from charity, which poured in during the weeks after the quake…

[...]

In November 1932, Hastings celebrated its reconstruction, and in January 1933, almost two years after the earthquake, during the New Napier Carnival, Napier was declared officially ‘reborn’.

Source: The Encyclopedia of New Zealand – Story: Historic earthquakes- Page 8 – Rebuilding Napier

Almost two years after the quake...”

With far more destruction; greater loss of life (256); less money available (no EQC funding or insurance cover back then!); and limited technology, our grandparents didn’t faff around waiting for the “market place” to deliver results. Nope, they pulled up their sleeves and got down to it.

Whilst it’s true that circumstances between Napier 1931 and Christchurch 2011 differ in many respects – we also have more resources than our grandparents did, eighty years ago.

More resources, perhaps.

Lacking in a bit of #8 fencing wire spirit…

But with a surplus of ideology.

.

Show us the jobs!

.

This blogpost was first published on The Daily Blog on 26 July 2013.

.

*

.

Other blogs

Ideologically Impure: Oh look, Diane Vivian: Paula Bennett DID come for you

.

.

= fs =

Detroit – neo-liberalism’s “Grand Success”

29 July 2013 3 comments

.

Detroit files for bankruptcy

Source: Radio NZ – Detroit files for bankruptcy

.

America’s grand experiment in neo-liberal capitalism has claimed it’s third bloody sacrifice; Detroit (after Jefferson County, Alabama, and Stockton, California).

Detroit now owes US$18.5 billion in debt. It has declared itself officially bankrupt – the largest US city ever to do so.

There are no doubt several reasons for Detroit’s current economic decline and its inevitable urban decay, but it is a dying city nevertheless,

The governor painted a picture of a city in collapse. Citizens wait 58 minutes for the police to respond to calls, compared to a national average of 11 minutes. Only a third of ambulances were in service in the first quarter of 2013. There are approximately 78,000 abandoned buildings in the city. The unemployment rate had nearly tripled since 2000 and the homicide rate was at its highest level in 40 years, he said. Detroit is unable to meet its most basic obligations to its residents, let alone its creditors.

Source: UK Guardian - Detroit becomes largest US city to file for bankruptcy in historic ‘low point’

Jobs in the industry have dropped by 40 percent since 2000, from 1.3 million to 800,000“, wrote Evan Soltas for Bloomberg.

Michael Snyder, writing in theeconomiccollapseblog.com, posted  17 Facts About The Decline Of The U.S. Auto Industry That Are Almost Too Crazy To Believe,

#1 The average age of an automobile in the United States has gone up more than 50% since 1990 and is now sitting at an all-time record of 10.8 years.  The average length of a marriage in the United States that ends in divorce is only 8 years.

#2 Germany made 5.5 million cars in 2010.  The United States made less than half that (2.7 million).

#3 When you add up salary and benefits, the average auto worker in Germany makes $67.14 an hour.  In the United States, auto workers only make $33.77 an hour in salary and benefits.

#4 Back in 2000, about 17 million new automobiles were sold in the United States.  During 2011, less than 13 million new automobiles were sold in the United States.

#5 Do you remember when the United States was the dominant manufacturer of automobiles and trucks on the globe?  Well, in 2010 the U.S. ran a trade deficit in automobiles, trucks and parts with the rest of the world of $110 billion.

#6 Japan builds more cars than anyone else on the globe.  Japan now manufactures about 5 million more automobiles than the United States does.

#7 In 2010, South Korea exported approximately 12 times as many automobiles to us as we exported to them.

#8 According to the New York Times, a Jeep Grand Cherokee that costs $27,490 in the United States costs about $85,000 in China thanks to new tariffs.

#9 U.S. car companies are spending hundreds of millions of dollars building shiny new automobile factories in China.

#10 In 1970, General Motors had about a 60 percent share of the U.S. automobile market.  Today, that figure is down to about 20 percent.

#11 The combined U.S. market share of the “Big Three” American car companies fell from 70% in 1998 to 53% in 2008.

#12 Detroit was once known as the “Motor City”, but in recent decades automobile production has been leaving Detroit at a staggering pace.  One analysis of census figures found that 48.5% of all men living in Detroit from age 20 to age 64 did not have a job during 2008.

#13 Today, only Chrysler still operates an automobile assembly line within Detroit city limits.

#14 Since Alan Mulally became CEO of Ford, the company has reduced its North American workforce by nearly half.

#15 Today, only about 40 percent of Ford’s 178,000 workers are employed in North America, and a significant portion of those jobs are in Canada and Mexico.

#16 The average Mexican auto worker brings in less than a tenth of the total compensation that a U.S. auto worker makes.

#17 In the year 2000, the U.S. auto industry employed more than 1.3 million Americans.  Today, the U.S. auto industry employs about 698,000 people.

Item #9 is off particular relevance to New Zealand, because we are doing precisely the same thing;

U.S. car companies are spending hundreds of millions of dollars building shiny new automobile factories in China.

As Forbes posted in May 2010, in an article  U.S. Companies That Invest Big In China,

General Motors and Volkswagen have invested billions in China, starting more than a decade ago. Ford is rushing to catch up by adding production capacity and expanding its dealer network in China. Ford and its joint-venture partner, Chang’an Ford Mazda Automobile, plan to start producing next-generation Ford Focus models at a new, $490 million plant in Chongqingin 2012.

Essentially, the United States car manufacturing industry has been busy exporting it’s production facilities and jobs to other low-wage  countries – China and Mexico to give two examples.

Here in New Zealand, we’ve done pretty much the same thing; gutted  our manufacturing sector by  busily exporting it to China (and elsewhere) where wages are low, in comparison to New Zealand workers*,

.

Rakon blames job cuts on high dollar

Source: Radio NZ – Rakon blames job cuts on high dollar

.

This, essentially, is the end-result of eliminating tariffs with so-called “free trade” agreements. Except, these agreements are not  “free” at all. They cost jobs.

For every pair of cheap Skellerup  “Red Band” gumboots you and I buy at The Warehouse – New Zealander’s jobs were sacrificed,

The first pairs of Red Band Men’s gumboots retailed for twenty five shillings and 11 pence. Red Band gumboots continued to be made at Skellerup’s Woolston factory in Christchurch until the late 1980s when economic considerations forced the company to move production offshore.

Source

So how cheap are those gumboots made in China?

The economic cost of  people out of work is astronomical: $805,759,000 for the 2012/13 period alone (Unemployment Benefit and Emergency Benefit (M63) – Vote Social Development – Estimates of Appropriations 2013/14)

The social cost is beyond a dollar value.

And yet, it was not always like this. Once upon a time, we had full employment.

In 1973, the numbers of registered unemployed (not including overall jobseekers) stood at 2,321. (source)

By June 2008 the number of registered unemployed (not including overall jobseekers) had increased to 17,710. (Pre Global Financial Crisis recession.)(source)

Forty years later, by June this year, after de-regulation, free trade treaties, abolition of tariffs, and the dismantling employment legislation and the trade union movement, the number of registered unemployed (not including overall jobseekers) increased to 48,438. (IBID)

The actual numbers of jobless, according to regular Household Labour Force Surveys, is much higher (currently at  146,000). (source)

It could be said that the cost of those  cheap, foreign-made Redband gumboots (and other consumer goods)  is costing taxpayers $805,759,000 per annum.

Conformist middle class consumers, if they read this, would probably shrug and dismiss it from their minds. Such matters as Detroit and the pernicious consequences of  the “free” market (which, as I have shown, is not “free”) on our employment, economy, and social fabric is beyond their ken.

It doesn’t affect them directly so they blot it from their minds.

They simply look at a pair of  Redband gumboots and see the printed pricetag.

After all, the capricious nature of neo-liberalism such as the fate of Detroit could never happen here, right?

.

Wellington Dying - John Key - 7 May 2013

Capital a dying city says Prime Minister – Dominion Post – 7 July 2013

Source: Dominion Post (scanned hard-copy)

Related story: Dominion Post – Shearer slams PM over capital dying quip

.

* Yes, there are other serfs in the world paid less than Kiwis.

This blogpost was first published on The Daily Blog on 24 July 2013.

.

.

= fs =

The Right has a new media voice

.

Fairfax Media has a  ” new columnist for the Waikato Times” (see:  Bill denies kids what they need). Narelle Hensen’s first piece appeared in the Waikato Times on 18 March, followed five days later by another piece, Dole queues long but bosses can’t get workers.  (Note: Ms Hensen has previously written and worked  under her maiden name; Narelle Suisted, for the Auckland publication, “Auckland Now“, and TV3′s “The Nation“.)

Her first column-piece was a thinly-disguised, homophobic lecturing against gays, lesbians, marriage equality, and their fitness (or lack thereof) as parents.

The second was a nasty little smear against the unemployed.

(This blogger is waiting for her next target. Solo-mums? Maori? There are plenty of minorities available.)

What Fairfax hasn’t disclosed is that Ms Hensen also worked as a Communications Officer for the right-wing think-tank, Maxim Institute (see: Wikipedia Maxim Institute). The Maxim Institute is virulently opposed to marriage equality, as outlined in their submission to Parliament  on the Marriage Amendment Bill (see:  Submission to the MarriageMaxim Institute).

It appears that the right-wing in this country have a new voice in the msm (mainstream media).

In her first article,  Bill denies kids what they need, Ms Hensen railed against marriage equality.  She used children as her weapon-of-choice, and started of with this bizarre statement,

“Most of us, no doubt, would agree, and would find it difficult to decide which of our parents to give up for another mum or dad. But that is what the Marriage Amendment Bill will require of some kids in generations to come. That is why I don’t support the bill.”

Did I read that right? She condemns the Marriage Amendment Bill because  a child “would find it difficult to decide which of our parents to give up for another mum or dad” ?!

Why would marriage equality demand that of children now? And in what way would that be different to divorce as it is presently?

As most of us are perfectly aware, it is the Family Courts that determine access to children – not the concept of marriage equality.  I doubt if Ms Hensen could point to any aspect of the Marriage Amendment Bill that would demand that a child has to “decide which of our parents to give up for another mum or dad”.

She offers another justification to oppose marriage equality,

“That means some kids will be denied the right to either a mother or a father, while their peers, by luck of birth, will be allowed both.”

Really? And what about the thousands of children who already have only one parent? What about the thousands of heterosexual couples who have separated and their children are “denied the right to either a mother or a father”? Or one has died through illness or accident – that’s real bad luck!

And just why is it “luck” to have heterosexual parents as opposed to gay or lesbian parents? The implication being that having gay/lesbian parents is “bad luck”. Perhaps being born to a mixed-race couple is also “bad luck” for a child? Or born to parents, one of whom might have a disability?

.

racism cartoon

.

Not to mention the bad luck of being born to right wing parents…

If a child is ‘lucky’, it is that they have a stable family, with love, attention, set boundaries, support, respect, nutritious food, warmth, good housing, access to education; healthcare,  etc.  The gender/orientation of parents and caregivers doesn’t really seem to factor as a life-giving necessity.

Indeed, Ms Hensen seemed eager to dismiss love as a trivial matter not worthy of consideration,

Of course, a lot of people argue the Marriage Amendment Bill is about love, and equality. But love or equality for who? These terms sound great, and they capture our emotions, but taking a moment to think about them makes us realise that in practice, they demand compromise from someone – either gay couples who must compromise the right to raise children, or children, who must compromise the right to have both a mum and a dad.”

It is unclear why gay (or straight) couples need to “compromise” – except in Ms Hensen’s mind where, for some reason, having gay or lesbian parents is a lesser option than heterosexual parents. Is  love a transaction that “demands a compromise”? She doesn’t explain what she basis that idea on.

What a strange world that Ms Hensen inhabits.

Except…

Ms Hensen referred to a particular group to justify her prejudices,

That is why the group Homovox started in France. It consists of homosexual couples who disagree with same-sex marriage, and same-sex adoption. As one contributor says: “The law should seek what is best for a child, and that is to have a mother and a father“.”

It took only a few clicks and poking around on a Search Engine to find out a little more about “Homovox“.

For one thing, it is not a LGBT organisation at all. It’s a front group set up by the Catholic Church, as GAYNZ reported on their website,

When is an LGBT organisation not an LGBT organisation? When it has been established by an antigay French conservative Catholic to make it seem as if there is “French LGBT” opposition to marriage equality. Thus it is with France’s  “Homovox”, allegedly a “French” gay organisation of  “LGBT” marriage equality opponents. However, on his website, Joe. My. God’s commenters uncovered who was actually behind the website, which turned out to be someone from the French Catholic Right. To  be more precise:

[redacted information]

A google search of Maillard Jean-Baptiste turned up this:

http://www.jesusprems.com/

He appears to be an anti-gay French Catholic.

[...]

Doing some more research on these guys–they are all Catholics, some are ex-gay, most are right-wingers, and some can’t be found online.

None of these men–an no women–give their full names, where they work, and the man who claims to be the mayor of a “village” doesn’t actually name his village. 

Source: “Homovox” Exposed

It seems that the Catholic Church in France has copied the tactics of the Unification Church and Scientologists, who also  employ front-organisations as  smoke-screens to the parent-church.

Did Ms Hensen know this? If  she didn’t, she’s not much of a journalist.

If she was aware of the true nature of “Homovox” – and chose not to disclose it – then she has an agenda of her own. And the presentation (or lack) of facts is not part of it.

Ms Hensen is not above claiming  statistics to back up her prejudices,

“Of course, there are those who argue it is better to bring up a child in a loving homosexual relationship than it is for them to be raised in an antagonistic heterosexual relationship. But if we are going to make comparisons, they must be fair. And when you compare a loving, heterosexual marriage with a loving homosexual union, the statistics paint a very clear picture.”

- but tellingly, she refuses to disclose any such statistics for the reader. So much for her comment that “if we are going to make comparisons, they must be fair”.

We are, I guess, expected to take her word that such statistics exist? Perhaps they are held by her former employers at Maxim Institute – an organisation known for it’s  hostility toward gays and lesbians having full equal rights.

The point of that last paragraph, I suggest to the reader, is to undermine any notion that having loving parents who care for children should not  be judged on the basis of  sexual orientation. Note her reference,

“And when you compare a loving, heterosexual marriage with a loving homosexual union…”

What about comparing a dysfunctional heterosexual household with a loving gay/lesbian household? God knows there are plenty of the former. Our newspapers are full of stories where children, infants, babies were mercilessly ill-treated until their fragile bodies could no longer cope with dad’s punches whilst mum looked on, or vice versa.

The parents of Delcelia Witika were good, solid, heterosexuals who engaged in  Maxim Institute-approved,  heterosexual, sex. Then they killed their little girl.

I submit to Ms Hensen, that at such a point in a brutalised child’s life, they are not really  going to give a damn if the wearer of  steel-capped boots kicking their heads to pieces,  is heterosexual or not.

Ms Hensen’s says,

It is often very difficult to decide whose rights win, which is why there are so many court cases, and indeed courts, all about human rights. But when it comes to adults’ rights conflicting with the rights of children, most of us would agree that children should come first.”

Except when good parents are gay or lesbian, right, Ms Hensen?

.

*

.

Ms Hensens next article on  job seekers, was nothing less than a hate-fest on one of society’s minorities; the unemployed. (See: Dole queues long but bosses can’t get workers)

Her entire article was dedicated to a simple premise; that  job seekers in this country are unemployable, with anti-social personalities and severe behavioural flaws consisting of;

“Drunkenness
Absenteeism
Failing drug tests
Physicality when told to leave site
Not turning up for interview
Smoking throughout interview
Chewing gum throughout interview
No CV prepared
CVs full of basic spelling mistakes”

Her column  mercilessly depicted the unemployed as unfit for employment. One of her commentators even questioned their right to be citizens.

She quoted anecdote after anecdote of unemployed people with allegedly poor personal habits and poor work ethics – though she gave few details what the jobs were or any other specifics.

Employers and Manufacturers Association Northern chief executive, Kim Campbell, referred to New Zealand’s  unemployed as  being “the dregs” -  a theme typical  of Ms Hensen’s piece.

Dave Connell, vice-president of the New Zealand Contractors Federation and managing director of Connell Construction, was somewhat more subdued in his criticisms,

“We have dealt with absenteeism, drunkenness, drugs . . . We are persevering for three to six weeks sometimes.”

As a damning propaganda piece, with the purpose of vilifying the unemployed, it was masterfully done.

Other than that, though, one has to ask the question; what the hell was the point of it? What possible purpose did it serve? Because it sure as hell didn’t shed much light on the subject.

I have an idea.

Up till now, the unemployed have been painted as lazy, boozing,  and unwilling to go out and find work.

That myth has been well and truly dispelled with stories of thousands of unemployed queuing for a few jobs. Just recently, on 12 March, ‘Campbell Live’ did a series of stories of hundreds of workers lining up for just seven jobs at an Auckland factory (see: Sign of the times: hundreds queue for 7 jobs)

Or any of these stories of job seekers outnumbering vacancies,

10 applicants for every one shelf-stocking job

Applicants queue for 20 jobs at new KFC store

2700 applicants for 150 jobs

Demand Strong for New Jobs Up for Grabs in Glenfield

Jobseekers flood a new Hamilton call centre

1200 applicants for 200 supermarket jobs

Ms Hensen could not write a credible story desparaging the unemployed as “lazy”.  In these times of high unemployment, the public no longer accepts that generalisation. In fact, most people probably know someone who has lost their job, or, fresh our of school or University, cannot land a job, and has been turned down application after application.

So, for  Ms Hensen that avenue was closed off.

Instead, in the best tradition of right wingers who blame the victims of  this country’s on-going recessionary fall-out, she attacked and desparaged the quality of job seekers.

Repeating  anecdotal stories, without any supporting  context to offer a deeper understanding, she wrote a piece that painted job seekers as poorly educated; drug addicts; inarticulate – even chewing gum!

As a hatchet job, it  certainly perpetuated negative stereotypes about the unemployed. It also reinforced the unacknowledged class structure that has been developing in this country for the last 30 years; the unemployed are “riff raff, beneath our contempt; and not worthy of being treated as our equals”.

As a “dog whistle” it attracted 321 comments (as at the time of this blogpost being written) – many of which were little more than ill-informed, offensive, stereotyping.

Ms Hensen might care to reflect on the irrational hatred expressed by those who supported her story. Is that the readership she is pandering to?

It also showed of some of Ms Hensen’s sources as less than ideal unemployers, with barely concealed prejudices.

But even if Ms Hensen’s poisonous polemic was 100% accurate, reflecting an unvarnished reality – employers and government have only themselves to blame.

How many times have trade unionists, economists,  and leftwing commentators warned employers and government that if New Zealand continued to drive down wages – as National has been doing with it’s labour law “reforms” – what did they think would happen?

On 1 April, the minimum wage will rise by 25 cents to $13.75 per hour. In Australia the rate is NZ$19.96 an hour, though wages are usually higher than that.

On 1 May, young people 16 to 19 will also have a new youth rate, that will be 80% of the minimum wage. That’s $11 per hour. How will young New Zealanders react to what is effectively a wage-cut?

And employers are whinging their heads off that the best and brightest are buggering off to Aussie?

The reality, though, is more prosaic. People want work. The unemployment benefiit ($204.96/wk/net) is not sufficient to live on. Many looking for work will be University graduates. Others will be poorly educated. But they all want a job.

Perhaps the real purpose of Ms Hensen’s  article - dressed up as a “news story” -  was designed to serve as propaganda in a  prelude to relaxing immigration laws and allow immigrant workers to flood the country? By creating a new urban myth that unemployed New Zealanders are “dregs”, it gives National the excuse to bring in labour from overseas. Cheap labour. Workers who will not kick up a fuss about exploitation; lax safety practices; and abuse.

The abuse of workers on Foreign Charter Vessels fishing within our EEZ waters gives an idea what might be  our future (see previous related blogpost:  A Slave By Any Other Name).

I suspect Ms Hensen is not finished with excoriating minorities in this country. Her poison pen is poised. It’s only a matter of who is next in her sights. And what her agenda is.

What a waste of intellect.

This blogpost was first published on The Daily Blog on 25 March 2013.

.

*

.

References

Linked In: Maxim Institute Media and Communications Officer at Maxim Institute/Narelle Hensen

Bill denies kids what they need (18 March 2013)

Dole queues long but bosses can’t get workers (23 March 2013)

“Homovox” Exposed.

Other blogs

The Jackal: National’s Campaign of Disinformation

.

.

= fs =

National Party Corporate welfare vs real welfare

People welfare, bad!

.

.

.

.

.

.

It’s fairly obvious what National thinks of New Zealanders who find themselves on the welfare safety net. Especially when those on welfare are there because of a global financial crisis brought on by unfettered,  laissez-faire capitalism (aka naked greed)  hitting a wall, and sending economies worldwide deep into recession.

But never mind. National has an answer for such dire events.

It’s called,

.

Corporate welfare, good!

.

Even as National continues to persecute, demonise, and blame the unemployed, solo-mothers (but never solo-dads), invalids, widows, etc, for their lot in life (because as we all know, the unemployed, solo-mothers (but never solo-dads), invalids, widows, etc, were directly responsible for the Global Financial Crisis that began in Wall Street’s boardrooms) – John Key and his cronies continue to lavish truck-loads of tax-payers’ money on corporate welfare.

.

1. ETS Subsidies for farmers

.

In June 2012, Business NZ CEO, Phil O’Reilly, wrote in the NZ Herald,

There has been a lot of redesign and tinkering with the ETS.  Established in 2008, reviewed and amended in 2009, reviewed again last year and about to be amended again – it’s no wonder that businesses involved in the scheme have review fatigue.”

See:  Phil O’Reilly: Emissions trading scheme must bring investors certainty

Mr O’Reilly may well complain. But he is unfortunately too late. On the morning of  3 July, Dear Leader John Key announced that  the 2015 postponement (of elements of the ETS) had formally become an “indefinite postponement” (ie;  gone by lunchtime on that day).

Key stated,

We’re not prepared to sacrifice jobs in a weak international environment when other countries are moving very slowly.”

See:  Slow economy puts ETS plans on hold

Yet that hasn’t stopped National from levying ETS on the public. No fears there, evidently, of  impacting on the pockets of ordinary Kiwis, and in effect, susidising farmers to the tune of  $400 million per year since 2009.

In effect, this is a transfer of wealth from  ordinary taxpayers to polluters [edited]. After all, what else can it be called when the public have to pay for an ETS – but farmers, industries, coal & oil companies, etc, – the very groups that produce CO2 and methane -  are exempt?

See:  Public to pay tab for polluters

So much for Tim Groser – Minister for Climate Change Issues and International Trade – insisting,

The National-led Government remains committed to doing its part to reduce greenhouse gas emissions, but it is worth noting that we are the only country outside Europe with a comprehensive ETS.”

National’s “committment” to reducing greenhouse gas emissions  has gone up in smoke and carbon dioxide.

As the Sustainability Council NZ reported in November 2009,

  •  Households would bear half the total costs under the amended ETS
    during its first five years (52%),
    while accounting for just a fifth of all
    emissions (19%). Together with small-medium industry, commerce and
    services, and transport operators, they would pay 90% of the costs resulting
    from the ETS during CP1 while being responsible for 30% of total emissions.
  •  Pastoral farmers would gain a $1.1 billion subsidy and pay an amount equal
    to 2% of their fair share of the Kyoto bill during CP1, while large industrial
    emitters would gain a $488 million subsidy (at a carbon price of $30/t).

See:   ETS – Bill to a Future Generation

On top of that, National appears unwilling to release actual financial data when it comes to the ETS.  Critical data has been withheld, as the Sustainability Council discovered last year,

Governments are legally required to provide an update of the nation’s financial position just before elections but those accounts do not recognise carbon obligations until they are in an international agreement, hence there is nothing concrete on the books until after 2012.

See:   Simon Terry: Carbon books reveal shocking gaps

And the Council report goes on to state,

The Sustainability Council requested a copy of those projections eleven weeks ago.
After various delays, the Treasury delivered its projections the day before the election
- late in the afternoon and with much of the key material blanked out.
What arrived is the carbon equivalent of a finance minister presenting a budget and
saying:

“Here is the estimated tax take for the next 40 years, and here is the total
spending. But we are not going to tell you how much tax is coming from any sector,
and we are certainly not going to tell you how tens of billions of dollars worth of
carbon subsidies and other payments are expected to be distributed. And no, we are
not giving you the figures for the past four years of the ETS either”.

It looks to be the closest thing in the public domain to New Zealand’s carbon books
and yet: future agricultural emissions are a state secret; future deforestation rates are a
state secret; even projected fossil fuel emissions are a state secret – all blanked out. “

See:  Show Me the Carbon Money

So what do we have here?

  1. Ongoing subsidies to polluting industries, with said subsidies paid by you and me, the taxpayer.
  2. Secrecy surrounding future  ETS  agricultural, deforestation, and fossil fuel emissions.
  3. Constant deferring of including polluters in a scheme that was designed specifically for dirty industries and farming practices.
  4. Importation of  unlimited, cheap,  foreign carbon credits.

Final point:

It seems a crying shame (as well as a fair degree of sheer madness) that we are paying subsidies to industry – whilst  not offering the same deals to  the  generation of renewable energy  and further research into renewable energy options (wind, solar, tidal, etc).

Ironically, the one subsidy that might have helped our economy and environment was scrapped in 2011, making Solid Energy’s biofuel programme uneconomic.  (See: Biodiesel loses subsidy, prices to rise)

Instead, the taxpayer continues to subsidise polluters. On 27 August 2012, National finally ditched agriculture’s involvement in the ETS, giving farmers, horticulturalists, etc, a permanent “free ride”  from paying for their polluting activities. (See: Farmers’ ETS exemption progresses )

This is the inevitable  result of electing a corporate-friendly political party into government.

.

.

2. Subsidies to Private schools and Tertiary Providers

.

Subsidies to private tertiary education providers continues to increase,

The Government is investing a further $29.503 million in the Private Training Establishment (PTE) sector over four years. This increases the funding rates for private training providers in line with the Government’s promise to treat them more equitably with public providers. The resulting funding difference is now half of what it was previously. “

See: Tertiary Education Commission – Private Training Establishments

So, if you’re a private company offering to train someone a course in “xyz” – expect a hand-out from a corporate-friendly National.

In the meantime,

  • Student allowances are removed for post-graduate study the parental threshold for accessing allowances is frozen for the next four years.  The Government says the changes will save $240 million in the first year and up to $70 million a year thereafter.  The Budget cuts all funding for adult and community education in universities, saving $5.4 million over four years.

See: Radio  NZ -  Benefits for research, science and engineering

  • It also saves $22.4 million over four years by ending funding used to help tertiary education providers include literacy and numeracy teaching in low-level tertiary education courses...”

See: Radio  NZ -  Benefits for research, science and engineering

  • Sunday Star-Times recently reported one in five young people left school without basic numeracy and literacy skills, despite the future workforce depending on advanced expertise. “

See:  Not adding up on Easy Street

  • Early childhood education subsidy cuts worth tens of millions of dollars are likely to be passed on to some parents through increased fees.

Education Minister Hekia Parata has kicked a total revamp of ECE funding into a future Budget, opting instead to stop cost increases to the Crown by cancelling the annual upward inflationary adjustment in rates.

The subsidy freeze takes effect on the next funding round, stripping about $40 million out of ECE payments to 5258 ECE centres. About 1427 of those centres are eligible for “equity funding,” however, and will get a boost through $49m extra directed to them over four years in a bid to enrol more children from the lowest socio-economic parts of the country.

But the scrapping of an annual inflationadjustment for other centres will be an effective funding cut as inflation pushes the cost of running ECE centres up. “

See:  Parents face burden of preschool squeeze

National’s most recent hand-out went to private school, Whanganui Collegiate,

.

Govt ignored advice before private school's integration

See: Govt ignored advice before private school’s integration

.

For a Party that advocates the “free market”, it certainly seems odd that they’re willing to throw bucketloads of our taxes at businesses such as private schools.  After all, what is a private school, if not a profit-making business?

And don’t forget Charter Schools – which is the State paying private enterprise/institutions to run schools – whilst making a profit (at taxpayer’s expense) in the process. Why don’t exporters get this kind of support?

That was certainly Gerry Brownlee’s attitude when Christchurch’s post-earthquake housing crisis became apparent,

.

Christchurch rent crisis 'best left to market'

See: Christchurch rent crisis ‘best left to market’

.

3. Media Works subsidy

.

In 2011, this extraordinary story broke,

.

Prime Minister defends loan to MediaWorks

Published: 8:28PM Friday April 08, 2011 Source: ONE News

The Prime Minister is defending his decision to loan $43 million of taxpayer money to private media companies.

John Key claims the loan scheme was designed to help the whole radio industry.

But a ONE News investigation has revealed MediaWorks was the big winner after some hard lobbying.

Key is known for being media friendly, but he’s facing criticism from Labour that he’s become too cosy with MediaWorks which owns TV3 and half of New Zealand’s radio stations.

It has been revealed the government deferred $43 million in radio licensing fees for MediaWorks after some serious lobbying.

Key and the former head of MediaWorks, Brent Impey, talked at a TV3 Telethon event.

“I just raised it as an issue but we’d been looking at it for sometime. My view was it made sense. It’s a commercial loan, it’s a secured contract,” Key said.

It’s believed the loan is being made at 11% interest.

But in answer to parliamentary written questions, the Prime Minister said he had “no meetings” with representatives of MediaWorks to discuss the deal.

Two days later that answer was corrected, saying he “ran into” Brent Impey at a “social event” in Auckland where the issue was “briefly raised” and he “passed his comments on” to the responsible minister.

See: Prime Minister defends loan to MediaWorks

.

Aside from another example of Key’s mendacity, when he originally claimed to have had no contact with Mediaworks,

… in answer to parliamentary written questions, the Prime Minister said he had “no meetings” with representatives of MediaWorks to discuss the deal.

Two days later that answer was corrected, saying he “ran into” Brent Impey at a “social event” in Auckland where the issue was “briefly raised” and he “passed his comments on” to the responsible minister.

See: IBID

… this affair was another example of selective subsidies being offered to some business – whilst others are left to their own devices to survive,

.

The axe falls - Industry boss blames cuts on Govt

Source

.

We’ve lost 41,000 jobs in the manufacturing and construction sectors over the last five years. To which National’s Minister-Of-Everything, Steven Joyce’s response was,

Nobody’s arguing that being a manufacturer isn’t challenging. In fact, in my history in business, every time you’re in business it’s challenging.

“But going around and trying to talk down the New Zealand economy and talk about a crisis in manufacturing, I don’t think is particularly helpful.

See: Exporters tell inquiry of threat from high dollar

There is no doubt that economic conditions in the post GFC- world are challenging for some firms. The role of Government is to do things that help make firms more competitive and that is what our Business Growth Agenda is all about.”

See: Opposition parties determined to manufacture a crisis

Or Minister for Primary Industries, Nathan Guy saying,

Our trading disadvantage has meant that we need to do more with less, and to work smarter.”

See: Innovation in New Zealand’s Agribusiness sector

To which exporters responded with this,

We’re told to get smarter and I find that irritating and insulting. I’m about as smart as they get in my little field. How the hell do these people get smarter? For a politician to tell somebody else to get smarter – he’s risking his life.”

See: Exporters tell inquiry of threat from high dollar

Not very helpful, Mr Joyce.  Though Opposition Parties may appreciate that you are pushing your core constituents into their waiting arms.

That’s how you alienate your voter-base.

.

4. Sporting subsidies

.

The Rugby World Cup

  • Prime Minister John Key today announced a $15 million grant for an upgrade of Christchurch’s AMI Stadium for the Rugby World Cup in 2011.

See: Govt announces $15m for AMI Stadium (30 April 2009)

  • Dunedin Mayor Peter Chin says he is “chuffed” the Government will contribute up to $15 million to cover shortfalls in private sector funding for the $198 million Otago Stadium project.

See: Chin ‘chuffed’ at $15m for stadium

  • The Government blew out a $10 million budget to host VIPs at the Rugby World Cup – even though just a handful of foreign leaders attended.

See: $5 million overspend on World Cup VIP budget

  • An extra $5.5 million will be spent on the Rugby World Cup to make sure there’s not a repeat of the chaos that unfolded on the evening of the tournament’s opening ceremony.
  • Including the $350m spent to upgrade stadiums and provide IRB-approved facilities around the country and millions more pumped into infrastructure and preparations, the bill for the tournament has easily surpassed the $400m mark.

See: World Cup ‘absolutely worth’ price tag

Yacht Races

The Major Events Development Fund will invest $1.5 million on each of two Volvo Ocean Race Auckland stopovers to be held in 2015 and 2018 following an announcement today by Economic Development Minister Steven Joyce

See: Govt to support 2015 & 2018 Volvo Ocean Race Auckland stopovers

.

Meanwhile, Health Minister Tony Ryall refuses to provide additional funding for specialised medicines for patients with rare disorders. See: Letter from Tony Ryall, 5 December 2012

The message is crystal clear; National will subsidise rugby games and yacht races. But don’t expect help if you discover you have a rare disease.

.

5. Warner Bros subsidy

.

After Jackson made public noises in October 2010 that ‘The Hobbit’ could be taken offshore, there was a kind of mass-hysteria that pervaded the country.

Warner Bros wide-boys jetted down to meet Dear Leader, who kindly supplied a taxpayer-funded chauffeured limousine to bring the Holloywood execs to Parliament.

Dear Leader said “no more subsidies”.

Nek minit; Warner Bros demanded, and got, an extra $15 million. (see: Govt defends Hobbit jobs claim)

All up, the New Zealand taxpayer coughed up $67 million to give to Warner Bros. (Who sez crime doesn’t pay? Gangsterism obviously turns a healthy profit now and then.)

.

Government defends Hobbit subsidies

.

The film obviously didn’t do too badly at the Box Office – $1 billion is not too shabby by anyone’s standards,

.

The Hobbit hits $1billion mark

.

Can we have our money back now, please?

.

6.  Broadband subsidy

.

Funny isn’t it.   Pro-business lobby groups always complain about State intrusion into the market place… Except when subsidies are being handing out.

One wonders why, if the Free Market” is more efficient than the State, that $1.5 billion in taxes has to be paid to private telcos to do what that they should already be doing.

Perhaps this is why it took the State to build this country’s infra-structure over the last hundred years. Infra-structure such as electricity generation. (See related blogpost: Greed is good?)

Which National is now preparing to part-privatise.

Private companies will soon be owning what taxpayers built up over decades, and which private enterprise was loathe to build in the first place. (If you’re wondering whether I’m referring to state power companies or broadband – there doesn’t seem to be much difference.)

.

Meanwhile, back in the Real World!

.

Full story

.

Dear Leader says,

Some argue that people on a benefit can’t work. But that’s not correct.”

Correct.

Because as Welfare Minister Paula Bennett stated candidly on Q+A on 29 April,

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

Correct.

Which means that National’s  “reforms” to push 46,000 of  welfare is not just a meaningless exercise (the jobs simply aren’t there) – but is actually a political smokescreen to hide their own incompetance at forming constructive policies for job creation.

Unfortunately, there are too many right wing halfwits and Middle Class low-information voters who readily buy into National’s smokescreen. It’s called prejudice, and means not having to think too deeply on issues,

.

.

Fortunately, it is the job of those on the Left to dispel these unpleasant notions for the Middle Classes. (National’s right wing groupies are a lost cause.)

Let’s start by posing the question; why is welfare for  corporations supposedly a good thing – but welfare for someone who has just lost their job, supposedly bad?

That’s what we need to keep asking the Middle Classes.

Eventually, they’ll start paying attention.

.

Frank Macskasy Frankly Speaking Blog

.

This blogpost was first published on The Daily Blog on 8 March 2013.

.

*

.

Additional

Scoop: Where’s National’s ‘corporate welfare’ reform?

Fairfax media: Doubt stalls biofuels growth (14 March 2011)

The Press: Solid Energy ‘wasted millions’ on biofuels (31 Aug 2012)

Southland Times: Biodiesel loses subsidy, prices to rise (30 May 2012)

TVNZ: Prime Minister defends loan to MediaWorks (8 April 2011)

Radio NZ: Data reveals drop in manufacturing, building jobs (22 Feb 2013)

Previous related blogpost

Once upon a time there was a solo-mum

Doing ‘the business’ with John Key – Here’s How

Acknowledgements

Tim Jones of  Coal Action Network Aotearoa

.

.

= fs =

What’ve you been smoking, Mr Roughan?

1 April 2013 3 comments

.

Perfect chance to can Tiwai

Acknowledgement: NZ Herald – Perfect chance to can Tiwai

There’s nothing quite like a threat to the New Right economic theory to bring the apologists slip-sliding out of the wood-work.

Case in point: John Roughan’s column in the NZ Herald on 30 March. According to Mr Roughan, the ‘blame’ for this latest fiasco can be sheeted home to John Maynard Keynes and our  post-War desire for full employment.

Because, as we (except for neo-liberals)  all know, full employment is a good thing for society.

First of all, read Mr Roughan’s article. Then come back to this blogpost, and scroll down…

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

.

Ok, read it?

Now who spotted the outrageous piece of delusional rubbish  that Mr Roughan wrote in his column?

Let me quote;

“The price of most things at that time was controlled or subsidised and nobody knew or cared that prices didn’t align the item’s cost of production to its value in a competitive market. The economy was a job-creation scheme that ended with double-digit unemployment in the 1970s.”

Acknowledgement: IBID

Either Mr Roughan doesn’t know his history – or he is being wilfully mendacious to promote his rather obvious neo-liberal views.

Let’s have a look at unemployment in the 1970s though to the 1990s,

.

unemployment - new zealand - 1960s - 1970s - 1980s - 1990s -

Acknowledgement:  Ministry of Business, Innovation and Employment  – How bad is the Current Recession? Labour Market Downturns since the 1960s

.

And to put that graph into actual stats,

Date Unemployment rate
Mar-56 0.6
Jun-56 0.6
Sep-56 0.6
Dec-56 0.6
Mar-57 0.6
Jun-57 0.6
Sep-57 0.6
Dec-57 0.6
Mar-58 0.6
Jun-58 0.6
Sep-58 0.6
Dec-58 0.6
Mar-59 0.6
Jun-59 0.6
Sep-59 0.6
Dec-59 0.6
Mar-60 0.6
Jun-60 0.5
Sep-60 0.5
Dec-60 0.5
Mar-61 0.5
Jun-61 0.5
Sep-61 0.5
Dec-61 0.5
Mar-62 0.5
Jun-62 0.5
Sep-62 0.5
Dec-62 0.6
Mar-63 0.5
Jun-63 0.5
Sep-63 0.5
Dec-63 0.5
Mar-64 0.5
Jun-64 0.5
Sep-64 0.5
Dec-64 0.5
Mar-65 0.5
Jun-65 0.5
Sep-65 0.5
Dec-65 0.5
Mar-66 0.5
Jun-66 0.5
Sep-66 0.5
Dec-66 0.5
Mar-67 0.6
Jun-67 0.7
Sep-67 1.0
Dec-67 1.2
Mar-68 1.3
Jun-68 1.2
Sep-68 1.1
Dec-68 1.1
Mar-69 1.0
Jun-69 0.9
Sep-69 0.8
Dec-69 0.8
Mar-70 0.8
Jun-70 0.8
Sep-70 0.8
Dec-70 0.8
Mar-71 0.8
Jun-71 0.9
Sep-71 1.0
Dec-71 1.2
Mar-72 1.3
Jun-72 1.3
Sep-72 1.3
Dec-72 1.3
Mar-73 1.2
Jun-73 1.1
Sep-73 1.1
Dec-73 1.0
Mar-74 1.0
Jun-74 1.0
Sep-74 1.0
Dec-74 1.0
Mar-75 1.1
Jun-75 1.2
Sep-75 1.2
Dec-75 1.2
Mar-76 1.2
Jun-76 1.1
Sep-76 1.0
Dec-76 0.9
Mar-77 0.8
Jun-77 0.8
Sep-77 0.8
Dec-77 1.2
Mar-78 1.5
Jun-78 1.7
Sep-78 1.7
Dec-78 1.4
Mar-79 1.4
Jun-79 1.5
Sep-79 1.4
Dec-79 1.3
Mar-80 1.4
Jun-80 1.6
Sep-80 2.2
Dec-80 2.5
Mar-81 2.6
Jun-81 2.6
Sep-81 2.6
Dec-81 2.7
Mar-82 2.6
Jun-82 2.7
Sep-82 3.0
Dec-82 3.6
Mar-83 4.4
Jun-83 5.0
Sep-83 5.1
Dec-83 4.8
Mar-84 4.7
Jun-84 4.4
Sep-84 4.3
Dec-84 3.9
Mar-85 3.7
Jun-85 3.6
Sep-85 3.6
Dec-85 3.9
Mar-86 4.2
Jun-86 4.1
Sep-86 4.1
Dec-86 4.2
Mar-87 4.0
Jun-87 4.2
Sep-87 4.2
Dec-87 4.4
Mar-88 4.9
Jun-88 5.4
Sep-88 6.4
Dec-88 6.3
Mar-89 7.1
Jun-89 7.5
Sep-89 7.4
Dec-89 7.3
Mar-90 7.2
Jun-90 7.7
Sep-90 8.1
Dec-90 8.9
Mar-91 9.8
Jun-91 10.5
Sep-91 11.2
Dec-91 11.0
Mar-92 10.9
Jun-92 10.4
Sep-92 10.6
Dec-92 10.6
Mar-93 10.1
Jun-93 10.1
Sep-93 9.5
Dec-93 9.4
Mar-94 9.3
Jun-94 8.5
Sep-94 8.0
Dec-94 7.6
Mar-95 6.8
Jun-95 6.4
Sep-95 6.2
Dec-95 6.4
Mar-96 6.4
Jun-96 6.2
Sep-96 6.4
Dec-96 6.2
Mar-97 6.7
Jun-97 6.8
Sep-97 7.0
Dec-97 7.0
Mar-98 7.4
Jun-98 7.9
Sep-98 7.7
Dec-98 7.9
Mar-99 7.5
Jun-99 7.3
Sep-99 7.0
Dec-99 6.4
Mar-00 6.5
Jun-00 6.3
Sep-00 6.0
Dec-00 5.8
Mar-01 5.5
Jun-01 5.4
Sep-01 5.4
Dec-01 5.6
Mar-02 5.3
Jun-02 5.3
Sep-02 5.5
Dec-02 5.1
Mar-03 5.0
Jun-03 4.8
Sep-03 4.5
Dec-03 4.7
Mar-04 4.3
Jun-04 4.2
Sep-04 3.9
Dec-04 3.8
Mar-05 3.9
Jun-05 3.8
Sep-05 3.8
Dec-05 3.8
Mar-06 4.0
Jun-06 3.7
Sep-06 3.9
Dec-06 3.8
Mar-07 3.8
Jun-07 3.7
Sep-07 3.6
Dec-07 3.5
Mar-08 3.8
Jun-08 4.0
Sep-08 4.3
Dec-08 4.7
Mar-09 5.0

Source: NZIER, Statistics NZ.

Acknowledgement:  Ministry of Business, Innovation and Employment  – How bad is the Current Recession? Labour Market Downturns since the 1960s – Data Table Figure 1: Unemployment Rate

At no point in the 1970s did unemployment ever rise above 1.7%. Hardly the “double-digit unemployment in the 1970s” that Mr Roughan presented as the unvarnished truth.

In fact, if we look at the actual stats, the only time unemployment rose into double-digit figures was from Jun-91 to Jun-93, when National implemented it’s infamous “Mother of all Budgets”. That Budget, written by arch-neo liberal Ruth Richardson, sent businesses to the wall as well as unemployment skyrocketing,

.

Bolger and Richardson 1991

.

John Roughan then attempts to use his bogus “facts” to push the typical New Right line,

“Pacific Aluminium asked Meridian to renegotiate a price that was set just before the world economy went sour in 2007 and demand for aluminium dropped. Meridian agreed to a lower price until 2016 but would not commit to a lower price beyond that.

Last week the Government intervened. Some of your taxes and mine are going to be promised to a global mining conglomerate that wants to sell its New Zealand smelter but cannot find a buyer.

The Government could not have better demonstrated the pitfalls of public ownership if it had tried.”

Acknowledgement: NZ Herald – Perfect chance to can Tiwai

“The Government could not have better demonstrated the pitfalls of public ownership if it had tried”, wrote Roughan.

Based on – - – ?

Falsities?

Ideology?

Whimsy?

Or just plain bullshit.

The stoush between Rio Tinto and Meridian Energy does not “demonstrate[d] the pitfalls of public ownership” at all.

What it demonstrates is that Rio Tinto has seized the main chance to re-negotiate it’s contract. Does anyone who is not on hallucinogenic drugs not believe even for a moment that Rio Tinto wouldf not try it on with Meridian even if that powerco was 100% privately owned?

Does Mr Roughan honestly believe, with hand-on-heart, that Rio Tinto would behave differently if Meridian was a private company, like Contact Energy?

How f*****g naive can some commentators get, for gods-sakes?

John Roughan’s column is nothing less than neo-liberal propaganda. It is a blatant attempt to twist the current situation, and mis-represent the facts.  It is a deflection. It is an acolyte of neo-liberalism trying to white-wash his failed dogma and blame everyone else except his own failed system for this total screw-up.

As if the 2007/08 Global Financial Crisis wasn’t enough to show us that neo-liberal capitalism is a failed ideology. (Who would Mr Roughan blame for that collapse, I wonder? Solo-mums in South Auckland?)

But then, we all know how well Right Wingers take responsibility, don’t we?

Not very well.

.

tiwai point - meridian energy - rio tinto

.

*

.

Hat-tip

Chris Trotter

References

NZ Herald: NZ Herald – Perfect chance to can Tiwai (30 March 2013)

The Daily Blog: Chris Trotter, Lying For The Revolution: John Roughan Defends Neoliberalism (1 April 2013)

.

.

= fs =

Citizen A – Susan Devoy; Nick Smith; Len Brown; and DoC job losses – 28 March 2013

.

- Citizen A -

.

- 28 March 2013 -

.

- Marama Davidson & Efeso Collins -

.

.

Issue 1: Is Dame Susan Devoy’s appointment as Race Relations Commissioner a step forwards or backwards for Race Relations in NZ?

Issue 2: Do Nick Smith or Len Brown have any affordable housing options for the poor?

and Issue 3: Why must we be burning DoC to save DoC?

Citizen A screens on Face TV, 7.30pm Thursday nights on Sky 89


.

*

.

Acknowledgement (republished with kind permission)

Martyn Bradbury

.

.

= fs =

Citizen A – 14 February 2013

15 February 2013 Leave a comment

.

- Citizen A -

.

- 14 February 2013 -

.

- Matthew Hooton & Keith Locke -

.

.

Issue 1: Richard Prosser – is he racist? What are the ramifications for NZ First and does this reflect poorly on MMP?

Issue 2: Salvation Army gives the Government a D for child poverty, housing and employment – what is the Government doing?

and Issue 3 tonight: John Key’s decision to take Australia’s refugees – what do we get?

Citizen A broadcasts on Auckland UHF and will start transmitting on Sky TV on their new public service broadcasting channel ‘FACE Television’ February 7th February 2013.

.

*

.

Acknowledgement (republished with kind permission)

Tumeke

.

.

= fs =

John Key – am I detecting a seismic shift in public attitude?

10 February 2013 22 comments

.

5923658

.

Is Dear Leader  losing his touch? He doesn’t seem quite so “dear” to some people any more…

  • The Novopay foul-up just gets worse and worse and worserer with each passing pay cycle. Wouldn’t it have been cheaper to just delegate the pay-system into the hands of Lotto? The results would’ve been about the same.

 

  • Education Minister, Hekia Parata, screws up on a semi-regular basis. Does Key hand her the ceremonial sword and with a smile tell her, “you know what to do with this”. Nah, he annoints her as National’s “most effective communicator. Has anyone ever seen 4.4 million people do a collective face-palm?! Meanwhile, Joyce is the new de facto Minister of Education and Parata is given duct-tape to put over her mouth. This, for National, is seen as a “solution”.

 

  • Unemployment keeps going up and up and up and up… And when the stats cannot get any worse, they do a massive West Auckland-style u-turn and wheelie burn-out… Unemployment is no longer up – people have given up banging their heads against a brick wall. So the stats are now a mess. What they do indicate is that people are turning off from looking for work.  It must be depressing getting knocked back time after time after time after… And if you think it’s bad now, in bright sunny summer – wait till the gloom and shortened days of Winter really kick in with mass-depression.

 

  • Manufacturing and exporters are screeching like banshees that the high Kiwi Dollar is sending them to the wall… and Steven Joyce smiles benignly and sez, “things are challenging”. Not helpful, Mr Joyce. Not one bit.

 

  • The country’s third biggest construction company goes to the wall and the Nats do… nothing. Question: at a time when we have to rebuild the second (or third) largest city in the country – how does a fricken construction company manage to go into receivership?!?! Someone explain this to me. Wouldn’t that be like a water-tanker truck in the Saharan desert unable to sell water???

 

  • We have a critical housing shortage in the country… A shortage of housing?! But, but, but… isn’t the free market supposed to prevent these shortages??? What goes on here?

 

  • We have a shortage of skilled tradespeople, IT specialists;  healthcare professionals… whilst on the other hand, we have 175,000 unemployed. Hmmmm… shortage of skilled staff… 175,000 unemployed… shortage of skilled staff… 175,000 unemployed… shortage of skilled staff… 175,000 unemployed… why don’t we-? Nah. What a silly idea. For a moment there I had this ridiculous thought in my mind about re-training 175,000 unemployed to meet our skills shortages… Bugger me, where do I get these daft notions from.

 

  • National doesn’t want to build housing for New Zealanders. They say it’s up to the Free Market to do this. Government, sez Joyce, Brownlee, Key, et al, say that it’s not the role of government to offer subsidies or state housing. Unless you’re a private school. Or farmers wanting irrigation systems. Or Rugby World Cup. Or investors in a finance company. Or insurance companies. Or a movie producer – especially a foreign one. Then there’s plenty of money. Whoopie – lolly scramble!

 

  • But just don’t get silly over housing.

 

  • Steven Joyce wants to put the bulldozers and excavators into our conversation lands and have deep-sea drilling off our coast, in deep waters… because, you know, we don’t mind if the remaining few native forests in New Zealand are destroyed for the benefit of foreign investors. Or that we run a risk similar to the horrendous disaster in 2010 in the Gulf of Mexico which spewed millions of barrels of oil into the Caribbean. After all, the oil companies will look after us… *snort!*

 

  • Because National is not a hands-on government to create jobs and support local businesses. But if you’re a private school or Warner Bros, then the question becomes, “How much did you want me to make that cheque out for?”

 

  • Tony Ryall wants $30 million shaved from the Health budget (where else will we get the cash to subsidise those lovely furry Hobbit movies?!). So  grommett operations for kids may be cut. Hey who needs a pesky grommett anyway – and did I say how cool Hobbits are…? And of course those seven New Zealanders who are suffering from the terminal Pompe disease… they aren’t as cool as Hobbits.

 

There’s more.

But I think you, the reader, get’s the point. (Unless you’re a dedicated National/ACT supporter – in which case don’t you just lerrrve those cute Hobbits?)

But it seems that the bad news and continuing incompetance and just sheer lack of bright ideas from National is becoming too much for even National’s traditional cheer leaders…

Fran O’Sullivan wasn’t impressed. Not by a long shot. In fact, she seemed a bit ‘put out’ by Key’s inaction (as if it had suddenly dawned on her),

.

Time for Key to call an economic summit

Full story

.

For Fran O’Sullivan – who is widely noted as a bit of a Nationalphile – to be chiding her beloved Dear Leader indicates that even his adoring legion of glassy-eyed admirers are starting to feel frustration. When O’Sullivan criticises Key for “waffling” and then berates Key for “simply shrugging his shoulders” – then we know that not only is the honeymoon well and truly in the past, but the ‘marriage’ is verging on a trial separation.

O’Sullivan didn’t mince words when she bluntly stated that “faith is no excuse for a failure to act” and demanded that  “it’s time, surely, for Key to call an economic summit to address the issues New Zealand faces“.

Good call, Fran.

A few years too late, but hey, some of us are a bit slower than others.

Meanwhile…

Right wing/all-over-the-place  media “personality” and talkback host, Kerre Woodham wrote an extraordinary column on 23 December, last year. Had it been written at any other time than two days before Christmas – when 99% of the populace is bleary eyed with the so-called “Festive Season” (said through gritted teeth, I might add) – her words would have had far more clout.

In fact, I could just barely recall her column piece and retrieve it from my Bookmarks (filed under WTF?). For the reader’s edification – read and enjoy (if you’re a National/ACT supporter you may want to put down your deluxe, Jackson-autographed, mink-lined Hobbit and read this bit),

.

Kerre Woodham - Nats run out of petrol

Full story

.

If Kerre Woodham speaks closer for the Middle Classes, then National should be in high-gear panic mode by now. Her attitude was summed up thusly,

I thought John Key said that by cutting income tax rates we would be able to stimulate the economy. Guess that didn’t work. I thought Key said that he would be able to stem the flow of New Zealanders to Australia by building a competitive economy and offering after-tax earnings on a par with those across the ditch. Well, that hasn’t worked, either.

 There are now more people moving to Oz under National than there were under Labour. But instead of ‘fessing up and conceding nothing the Government has come up with has worked, the Prime Minister has produced a classic example of Orwellian double-speak.

Akshally, says Key, moving to Australia is a GOOD thing for New Zealanders to do. They’ll see the world, gain experience – no, just like everything else, Key is comfortable with the numbers of Kiwis farewelling this country.”

Source: IBID

That, readers, was the sound of a Middle Class person coming to the realisation that our esteemed Dear Leader; dodgy Party; and worthless policies – are a fraud.

That, readers, was the realisation by a Middle Class person that National was not about to meet their aspirations.

It is the same sound of  National’s ‘House of Cards’ crashing that we heard in the late 1990s. A crash which culminated in National’s election defeat on 27 November 1999.

When bene-baiting right-wing talk-back hosts like Woodham can make statements like,

Well, they may know how to make money for themselves but they don’t seem to have any answers when it comes to making the country richer.

If, after four years of government, the best strategy they can come up with to produce a surplus is to raise the fuel tax, they are devoid of initiative and bereft of imagination.”

Source: IBID

- then we know that the Middle Classes are starting to wake up. And they’re noticing that the Emporer is naked and it ain’t a pretty sight.

Next…

Businesspeople are running as fast as their feet can carry them – to a joint inquiry run by the Opposition Parties in Parliament – and it’s a brave/stupid/both National Government that ignores the signals,

.

Exporters tell inquiry of threat from high dollar

Full story

.

When a businessman – in this case managing director Gordon Sutherland -  says,

We know that – we’ve known that for a very, very long time. Of course we get efficient, of course we try and work as hard as we can to be efficient – it’s the only way we can exist. It drives me insane when people say, ‘Get efficient’. What do you think we are – idiots? We’re not.”

- then the Nats are treading on very thin ice to ignore such messages.

National is supposed to the the Party for business. So when business people begin to turn on the Nats – that’s a pretty bloody big signal that it’s the beginning of the end for this government. And considering Key has stated he will not lead National from the Opposition benches (see:  Key says he’ll quit politics if National loses election) – it’s ‘bye-bye’ Dear Leader.

Once he’s gone, the Nats will have left in their wake a poorly performing economy; high unemployment; growing income divide; higher child poverty; businesses about to collapse (Mainzeal already gone); and a raft of other tragic consequences.

The 2011-14 Key-led  administration will be remembered in the same way many New Zealanders view with derision the Bolger/Shipley-led National government from 1996-99.

Going by the next story, however, Key is already despised by a wide sector of the community.

But more to the point, that hostility is no longer held in check and is being voiced out loud,

.

Mixed reception for Key at Big Gay Out

Full story

.

What we are seeing now seems to be a  seismic shift in public opinion on Key and National. But more importantly,  where only a year ago people were reluctant to voice their dissatisfaction or hostility in public – now that shyness is disappearing. People are pissed off and they know who to vent at,

.

200204-3x2-340x227

.

In 2008, Key raised levels of expectation to new heights (see: A fresh start for New Zealand).

With promises of higher wages and other warm-fuzzy, populist nonsense, people voted for him in droves. Their expectations were raised as Key’s supreme self-confidence;  personal rags-to-riches story; and plausible rhetoric made them line up and put their trust in him.

The trouble with raised expectations, though, is that failing to deliver “the goods” results in an inevitable backlash. Not just at the ballot box, but in terms of vitriol. We tend to pull people of a pedestal mighty quick, if they stuff up.

National’s failure to meet those expectations may already be a foregone conclusion, as NZ Herald columnist, John Armstrong wrote on 22 December last year,

A slight sense of desperation was evident in National’s reaction to this week’s release of the Treasury’s latest forecasts.

National is not going to let anything stand between itself and its Holy Grail of a return to Budget surpluses within the next three years.

What was once merely a target now seems to be an obsession. The reason is straightforward. Some major economic indicators are starting to confirm anecdotal impressions of an economy close to tipping into recession,

National is therefore clinging ever tighter to the increasingly vain hope of balancing the books by its target date of the 2014-15 financial year.

Meeting the target is all part of National’s branding as the party of sound economic management. Failure on that front would be a major blow to its credibility.”

See: Gloom sets scene for tumultuous 2013

If meeting an accounting target is all that National has left – Shearer better start packing up now. He’ll be in the Prime Minister’s residence at the next election.

.

*

.

References

Interest.co.nz: Stats NZ reports 23,000 jobs lost

NZ Herald: Time for Key to call an economic summit

NZ Herald: Kerre Woodham: Nats run out of petrol

Fairfax media: Mixed reception for Key at Big Gay Out

.

.

= fs =

2013 – More redundancies…

31 January 2013 4 comments

.

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

.

Last year’s talley of redundancies – by  no means complete – which added to the rise in unemployment to 175,000 New Zealanders looking for work;

The year is barely one month old, and reports are starting to come in of redundancies,

.

Wool spinner to sell Oamaru plant

Source

Listen to more on Checkpoint

.

This is yet another business that has been affected by the high exchange rate – the same high Dollar that Steven Joyce has resolutely maintained is “not a crisis”,

There is no generic crisis in manufacturing but I would certainly acknowledge it is challenging for some companies.”

See: Currency intervention a fool’s paradise, says Joyce

Strange – I would have thought that the loss of 40,000 manufacturing jobs in the last four years would qualify as a crisis?

And why is it, I wonder, that National is willing and happy to throw $65 million (of our taxes)  at Warner Bros (a multi-billion dollar overseas company), as a subsidy, to “create” 3,000 jobs,

I’m proud our Government took action to make sure The Hobbit films were made here. They created 3000 jobs and poured millions of dollars into our regions.”

See:  National – Celebrating The Hobbit

If my ‘take’ on this is correct,

  • 3,000 jobs ‘created’ – good
  • 40,000 jobs lost – meh!

And ironically, Key’s claims of 3,000 “new jobs” created may not even be correct! (see:  Key denies Hobbit job numbers made up) Dear Leader may be pulling another ‘swiftie’ on us, as he did with the Skycity convention-construction numbers. (See: Puzzle of Key’s extra casino jobs)

So by the numbers, for this year:

Expect this list to increase on a weekly basis.

This blogger also has ‘inside information’ that Veridian Glass – a Wellington-based glass-supplier for the glazing industry – will also be shedding an unknown number of staff, including truck drivers.

Last year’s shocking news that unemployment had reached 7.3% (175,000 men and women out of work) may only be the beginning.

The next Household Labourforce survey data may see unemployment rising even further.

Meanwhile, as the manufacturing and export sector suffer from an over-valued dollar;  more and more jobs are being lost; and business-owners are demanding action from National.

Meanwhile, Steven Joyce reminds us,

Nobody’s arguing that being a manufacturer isn’t challenging. In fact, in my history in business, every time you’re in business it’s challenging.

But going around and trying to talk down the New Zealand economy and talk about a crisis in manufacturing, I don’t think is particularly helpful.”

See: Exporters tell inquiry of threat from high dollar

Business people are supposedly National’s core constituents.

You wouldn’t think  so.

.

“Nope. No manufacturing or export sector crisis down here.”

.

.

= fs =

Johnny’s Report Card – National Standards Assessment – Sunrise, Sunset, and Outlooks

9 January 2013 3 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.

.

Sunrise, Sunset, and Outlook for 2013

.

.

What are we manufacturing today

.

We need businesses producing high-value products for overseas markets and businesses using R&D to develop those products which drives other benefits, like better production processes and marketing.  Basically it’s about using innovation to drive our economy.

We have some of these companies already – the likes of Fisher and Paykel, Tait and Rakon. Our world-leading dairy industry also owes much of its success to innovation.” – Jonathan Coleman,  Associate Minister of Finance, 1 July 2011

See: EDANZ National Economic Development Forum – Speech Notes

It’s a funny old world we live in…

Sunrise Industries…

.

Central Auckland super brothel approved

Full story

.

tobacco-deal-creates-50-jobs-in-petone

Full story

.

skycity-deal-puts-laws-up-for-sale

Full story

.

Another liquor outlet set to open

Full story

.

Sex, gambling, tobacco, alcohol – the new profitable industries of the 1st century? We seem to have left out other “growth” industries, the modern sex-slave trade in women and children, and arms manufacturing.

Oh. Wait. Maybe not,

.

Govt funds still invested in cluster bomb makers

Full story

.

Oh well, National and it’s  free-market fellow-travellers will be delirious with joy. If there’s a buck to be made from vices and weapons, they’ll be happy as a pig in mud.

Now if only they can find the price of a soul, and a market for it…

And the Sun sets on…

.

Sounds silenced by $20m debt

Full story

.

Borders, Whitcoulls under administration

Full story

.

Real Groovy Wellington to close

Full story

.

Closing chapter for fine arts bookshop

Full story

.

Bookstore another victim of public sector cuts

Full story

.

Marbecks music shop closes down

Full story

.

Meanwhile…

Basically it’s about using innovation to drive our economy. We have some of these companies already – the likes of Fisher and Paykel, Tait and Rakon. - Jonathan Coleman,  Associate Minister of Finance, 1 July 2011

.

Rakon cuts full-year profit guidance

Source

.

F&P confirms job losses

Full story

Warning as Haier wins all

Full story

.

Oh well, one (Tait) out of three still seems a ‘goer’. How long for, I wonder?

Meanwhile, how are our export and related sectors doing?

.

Job losses blamed on high NZ dollar - more forecast

Full story

.

And the stats back up the ODT story above,

.

New Zealand in Profile_2012_economy

Source: New Zealand in Profile: 2012 – Economy

.

Not too good it seems.  The red-highlighted sectors all declined from 2006 to 2011.

National’s “hands off” doctrine, in deference of the ‘Invisible Hand of the Market’, is certainly achieving one result; giving advantage to our exporting competitors from other nations. The Nats seem resigned (hellbent?) to more job losses; more exporters going under; more skilled tradespeople leaving for Australia; and a further decline ineconomic growth,

.

Job losses inevitable in declining industries, say ministers

Full story

.

What the hell!? The export sector is a “declining industry“?!?!

When even National’s allies – the Manufacturers and Exporters Association – are calling for government intervention about the high New Zealand dollar, it really drives home the seriousness of the crisis. An economic crisis that this time had it’s origins on Molesworth Street – not Wall Street.

For National to persist in it’s “hands off”  and obedience to Free Market dogma will have nasty consequences for our economy.

For 2013, expect,

  • unemployment to rise
  • the export sector to worsen
  • growth to remain low, under 1%
  • an early election this coming year, as Dunne and the Maori Party desert the National-led coalition.

It’s easy to predict – we’ve seen it all before.

Previous related blogposts

New Zealand’s OTHER secret shame

New Zealand’s OTHER secret shame – *Update*

NZ’s 21st Century Growth Industries – Drugs, Gambling, & Prostitution

Drugs & Gambling – NZ’s 21st Century Growth Industries?

.

outlook for 2013

.

.

= fs =

Follow

Get every new post delivered to your Inbox.

Join 699 other followers