Archive for 15 November 2012

Did this catch Dear Leader Key by surprise as well?

15 November 2012 8 comments


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The sale of Hillside Workshops will affect it’s workers badly,

KiwiRail is making 80 to 90 workers at the Hillside railway workshop in Dunedin redundant after making only a partial sale of the site.”

See: Dozens of railway workshop jobs to go

I wonder – was John Key as surprised with this announcement today as he was a week ago,  when the HLFS   figures were recently  released, revealing that  unemployment was now at 7.3%?

I’m very surprised with the numbers I’ve seen this morning, goodness knows what the next one will look like.” – John Key, 8 November 2012

Perhaps he was. Perhaps, as Bryan Gould pointed out in the NZ Herald today,

In the wake of the grim news about factory closures and lay-offs over recent months, the figures were only to be expected. Indeed, the warnings about a crisis in manufacturing have been coming thick and fast, and from all quarters.

There was, though, one person, it seems, who was blindsided by the bad news. The Prime Minister, we were told by the television news, was “taken by surprise”. The only explanation for this is that John Key has paid little attention to the unemployment issue over the past four years, despite its destructive impact both on individuals and their families, and on society as a whole.”

See: Bryan Gould: Plight of jobless makes us all poorer

After four years of  Key’s “leadership”, what do we have?

  • High unemployment
  • A shortage of housing, and rising house prices
  • Exporters suffering under a high dollar
  • National policy designed to drive down wages (see: John Key’s track record on raising wages)
  • A stagnating economy

Adding to the above,  this report out today,

Continuing bad economic news is prompting forecasters to speculate the economy may have gone backwards for the first time in two years.

Retail figures for the September quarter showing a big fall in spending follow weak inflation and job numbers for the same period have been released in recent weeks.

Westpac economist Michael Gordon says there is a reasonable likelihood the economy contracted in the most recent quarter.

Deutsche Bank senior economist Darren Gibbs believes that at best, the economy failed to grow at all and possibly went backwards during the period.

He said a manufacturing survey for October due in the next fortnight will give the first indication of whether or not the economy’s loss of momentum is continuing in the current quarter.

Finance Minister Bill English told Morning Report that the numbers bounce from quarter to quarter and the latest figures are not of concern.

He said the economy is as uncertain as it has been for years, and the Government will continue to focus on straight forward objectives, like getting back to surplus and rebuilding Christchurch.”

See: Economy may be going backwards

No wonder New Zealanders are escaping to Australia faster than East Germans climbing The Wall, during the Soviet era,

A net loss of 39,500 people to Australia contributed to New Zealand’s net loss of migrants in
the September 2012 year. This is down from the record net loss of 40,000 in the August 2012
year. The September figure resulted from 53,700 departures to Australia, offset by 14,200
arrivals from Australia. In both directions, most migrants were New Zealand citizens.”

See: International Travel and Migration: September 2012

It’s not just the low pay (which is being driven lower by National policies); nor the cost of housing rising higher and higher as a minority speculate on  property for tax-free gains; nor rising unemployment; nor the growing wealth-divide.

What is driving New Zealanders to escape – and I use that word with precise deliberation – is that our society has a strong impulse for self-flagellation that manifests as constantly making wrong economic decisions. Instead of looking at the long term – sufficient numbers of New Zealand voters opt for short term benefits. The result is that few of our economic problems are actually  addressed in a meaningful way.

The joke is that so many New Zealanders still hold a quasi-religious faith in the National Party as “prudent managers” of the economy.

Which is sad, really.

National is the last political body to earn the reputation of “prudent manager”.

Any Prime Minister who reveals surprise at a worsening economic situation – despite data  screaming “Red Alert! Red Alert!” on every indicator, is one who is asleep at the wheel and hasn’t a clue what is going on around him.

How can a Prime Minister with an entire government department at his disposal, which spends $17,547,000 a year,  be oblivious to 13,000 people losing their jobs in the last three months?

See: Household Labour Force Survey: September 2012 quarter

Does he not read a newspaper?

Or, as with the GCSB briefing in February, was Key simply not paying attention?

Or perhaps, as with the John Banks police file, did he wilfully choose not to look at the information?

Precisely why are we paying this man $411,510 each year?!

One other reason why so many New Zealand voters are so deluded into voting for National; the old ‘aspirational middle class‘ thing.

We all want to be affluent, succesful, and secure. The National Party is filled to the brim with millionaires, rich lawyers, businessmen and women, etc. Even Paula Bennett knew how to rort the welfare system when she was on the DPB, and bought a nice house with WINZ assistance.

Mowst of us want that. So by electing National,  some of that success will rub of onto us, right?


So f*****g wrong.

Who benefitted from National’s 2009 and 2010 tax cuts? Check out the data,


2009 taxcuts



2010 taxcuts



As the numbers above show, the higher your earnings, the greater your tax cut. Conversely,  the lower your earnings, the less you got.

If you earned $40,000 p.a. your tax-cuts in 2009 and 2010 was – $9.94.

At the same time, GST went up. That meant you were now paying 15% on food, electricity, fuel (more actually), rates, etc.

High income earners have done very nicely out of the tax cuts.

By contrast, the Australian governments treated their low-middle income earners somewhat differently,

As part of the Government’s policy to spread the benefits of the mining boom, one million people will be freed from paying tax when the tax-free threshold is trebled from A$6000 to A$18,200.

More than seven million earning less than A$80,000 ($102,000) will receive tax cuts and parents with children at school will be paid A$410 a year for each primary school pupil and A$820 for each secondary student.”

See: Fed-up Kiwis head to Oz en masse

That is called re-distribution of wealth to those who need it.

As compared to National’s re-distribution of wealth to those who do not need it.

It takes a while for the Aspirationists to wake up and realise that they’ve been conned. In the meantime, Key smiles and waves and bats away serious economic problems; Paula Bennett targets and blames the unemployed for daring to be unemployed; Hekia Parata is busy undermining our education system; John Banks is throwing taxpayers money at private Charter schools; and the rest of the National Party are further dismantling our once egalitarian society, and doing dubious back-room deals with casinos, big business, foreign governments, and god-knows-who-else.

The only thing that would really, really, really piss me off is that National voters became disenchanted with their own “government” – a mess of their own making –  and headed off to Australia. To hell with that!

It’s a shame that Aussie Customs can’t made a small addition to their Immigration Declaration Form,

Have you ever,

[] been convicted of a drugs offence?

[] been a part of a terrorist group?

[] voted National?

Ticking the last box should be grounds for immediate repatriation to New Zealand.

The Aussies may already have started: I understand that Paul Henry is being sent back to New Zealand?



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