Archive

Archive for May, 2015

Latest Roy Morgan poll – wholly predictable results and no reason to panic

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Fuck National and the morons who support it

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The latest Roy Morgan poll reports a surge in support for National – up 8.5% to 54% – one of the highest rises since October 2011, according to Australian-based the polling company.

Labour and the Greens have suffered a corresponding drop in support;

National: 54% (+ 8.5%)

Labour: 25.5% (-2%)

Green Party: 10.5% (- 3%)

NZ First: NZ First 6% (- 2.5%)

Maori Party: 1% (-0.5%)

ACT: 1% (n/c)

United Future: nil (n/c)

Mana Party: nil (n/c)

Conservative Party: 1% (n/c)

Undecideds were up one percentage-point to 5%.

However, the results should be seen in the context that the poll was conducted in the lead up to, and during, the 2015 Budget, delivered on 21 May.

In fact, National’s polling rises during each Budget event, only to drop back down as media  attention  and political hype subsides. The charts below show the correlation between Budget events and the days/weeks leading up to each Budget Night, where National drip-feeds positive news stories to the public, via media;

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roy morgan poll march 12 april 1 2012

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Roy Morgan poll - May 2015 - National - Labour - Greens - NZ First

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The ‘spike’ in National’s support will begin to abate, as on previous occassions.

As housing prices continue to escalate, and child poverty continues to be a major problem in our society, the public will once again focus on what – if anything – National is doing to alleviate them.

On top of which will be a growing feeling that if English fails to deliver a Budget surplus next year, then National’s talk of tax cuts becomes more and more an absurdity. This seems more than likely according to various commentators, as next year’s surplus has already been pared back from $565 million to $176 million.

National got away with promises of tax cuts in 2008, even as the Global Financial Crisis was impacting on our economy. But at that stage, the Great Recession had not yet hit with full force. Unemployment in 2008 was still only 4.3% and the Clark-led Labour government had paid down most of the country’s sovereign debt.

By contrast, unemployment is now at 5.8% and the country is around $65 billion in debt. (Net core crown debt is forecast to be $61.7 billion by 30 June, up  $1.7 billion from last year.)

Faced with the Four Horsemen of the Fiscal Apocalyspse of another Budget deficit;  higher debt; broken promise of tax cuts; and a runaway housing crisis in Auckland – National’s undeserved reputation as a “prudent manager of the economy” begins to look every bit as shabby as what Muldoon left the country.

By 2017, even a Budget event may not be sufficient to give National a boost in the polls.

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References

Roy Morgan Poll:  May 25 2015

NBR: Budget 2015 – NZ credit ratings unaffected by government’s 2015 budget

Additional

Fairfax media: Budget 2015 – An idiot’s guide

 

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This blogpost was first published on The Daily Blog on 26 May 2015.

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Campbell Live, No More

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77wNkZgE_400x400

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Campbell Live‘ was more than just current affairs.

It was more than just a vehicle for advertising.

It was the heart and soul of the nation, and epitomised those values which we Kiwis profess to hold dear; fairness, tolerance, and giving others a fair go.

Perhaps in this day and age of bottom-lines; stakeholders; shareholders; mission statements; unbridled consumerism; value-for-money; and all the other faddish buzz-words of this Corporate Age – a show like ‘Campbell Live‘ was an anachronism, reminding us of another New Zealand.

John Campbell and his hard-working team of professionals reminded us that we are better than just consumers chasing, en masse, the cheapest bargains. He reminded us that we are still citizens, and that we should still care about the country we live in.

Friday 29 May 2015 will be a sad day for many. Today, we have lost a little bit more of our spirit. (To those who don’t ‘get’ it – don’t worry. You’ll never understand.)

Today, we lost another small piece of what it means to be a Kiwi.

Today, we lost a little more of our soul.

Today, we lost a friend.

Thank you, John and your team. And my apologies that we could not help you, as you’ve helped us, over the years.

That is my deepest regret.

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He aha te mea nui? He tangata. He tangata. He tangata

(What is the most important thing? It is people. It is people. It is people)

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Previous related blogposts

Radio NZ – Mediawatch for 24 May 2015 – TV3’s Mark Jennings interviewed re Campbell Live

Friends, Kiwis, Countrymen! I come to praise John Campbell, not bury him

Related

NZ Herald: Political roundup – Who killed Campbell Live?

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This blogpost was also published on The Daily Blog on 29 May 2015.

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Categories: Media Tags:

Friends, Kiwis, Countrymen! I come to praise John Campbell, not bury him

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Campbell Live - GCSB - John Key

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Whatever is slated to replace ‘Campbell Live‘, I care not one whit. Short of the second coming of Jesus Christ; time travellers from the future; the breakout of world peace, or some other vastly improbable event, our household will no longer be watching TV3 News and whatever follows.

Mark Weldon and Mark Jennings have badly underestimated that public backlash that will follow this incomprehensible decision.

Campbell Live‘ is a decade-long brand that media companies spend millions in advertising to promote and instill in the public’s consciousness – and at a stroke they have destroyed it.

Conspiracy?

There are rumours – unsubstantiated, I would emphasise – that the Prime Minister demanded from Mediaworks’ CEO, Mark Weldon;

“I want that leftie bastard gone”

The item referred to in The Standard blogpost refers to a piece in Mana News  (now deleted), and was itself based on a Facebook post;

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save campbell live - facebook - I want that leftie bastard gone

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As mentioned, there is no hard evidence that the alleged quote is factually correct, and could well be the result of a well-intentioned – albeit badly misguided – critic of this government. However, it would not be the first time Key has abused the media;

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Herald - John Key calls media 'Knuckleheads'

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Interestingly, it is not beyond the realms of possibility that Key might have had that conversation (or something similar) with Mark Weldon. In a well-researched piece, Rex Widerstrom shone a spotlight on the link between Key and Weldon;

1: He’s the man John Key picked to chair the “Summit on Employment” in 2009(1)

2:He’s also the man John Key picked to lead The Christchurch Earthquake Appeal(2)

3: He’s also the man who used that position to breach the Bill of Rights Act and force “the advancement of religion” into the Christchurch Earthquake Appeal Trust’s constitution(3)

4: And he’s the man Cameron Slater (Whaleoil) characterises as “allegedly a friend of John Key”(4)

5: Slater also asked on October 15 last year “Who will be the first (of many) casualties under Mark “I’m the boss” Weldon at Mediaworks?” with one commenter on that story saying “The man is a tyrant who doesn’t play nicely with others. Frankly, I love the idea of Weldon and John Campbell having to work together …”(5)

6: he’s also the man whom insiders were picking as a potential National Party candidate for the safe seat of Tamaki(6)

7: And he’s a man who praised John Key’s program of asset sales announced in 2011 as “bold, it was clear, it was early – and very positive…” and called those who were cautious about it “fearmongering”. That’s the same assets sales program that had to be drastically cut back and became something of an embarrassment to the government(7)

8: He’s the man who made a substantial personal gain ($6 million) as a result of Key’s asset sales announcement(8)

9: He’s also the man who, as CEO of the NZX, characterised those who voiced concerns about aspects of the Exchange’s operations as mentally ill(9)

10: He’s the man who’s already got rid of two of Mediaworks’s main financial watchdogs – chief financial officer Peter Crossan and company secretary and lawyer Claire Bradley(10)

11: He’s the man of whom blogger Cactus Kate (business lawyer and commentator Cathy Odgers) noted “Mediaworks currently does not employ anyone on your television or radio with a larger ego than Weldon, even Willie Jackson, Sean Plunket and Duncan Garner combined can’t compete” and that “NZX was the greatest reality soap opera in town under Weldon’s leadership, the casting couch of characters was enormous as disgruntled staff left and new bright eyed disciples were employed”(11)

12: He’s the man Odgers also described (in a blog post now deleted by referenced by another, also right wing, blogger) as a “weasel word corporate-welfared CEO…” and a “shallow self-promoting tool”(12)

13: He’s the man who said there was no conflict of interest in allowing the NZX to be the provider of NZX services, the supervisor of its members, a listed participant on its own exchange and the market regulator… a statement one broker described as “utter balderdash”(13)

Weldon was also appointed by Key, or one of his Ministers, the Capital Markets Development Taskforce in 2009/10; the Tax Working Group in 2009; and the Climate Change Leadership Forum in 2007.

Key gave him a QSO in the 2012 Queen’s Birthday Honours List.

[Note: numbers in parenthesis in above extract refers to sources given by Rex Widerstrom. Please refer to the full story for additional information.]

Is it a conspiracy between the National government and Mediaworks?

There is no evidence to prove such an allegation. National supporters will quickly dismiss any such suggestion with derision.

However, when Nicky Hager released his expose on National’s dirty tricks campaigns against it’s opponents, the reaction from many was either automatic derision, or, the casually dismissive, “So what? We all knew it was happening!

If it ever was proven that National had a hand in Campbell’s sacking, would National’s apologists respond in the same way? You bet.

Despite the unproven veracity of the claimed comment between Key and Weldon, there are proven links between the National Government and Mediaworks. In 2011, National bailed out Mediaworks facing a crippling $43 million debt;

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Prime Minister defends loan to MediaWorks

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Which was a story initially denied by National, only a month previously, and spun in a way that stretched credulity;

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Government denies MediaWorks loan

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The loan-that-was-not-a-loan was re-paid by Mediaworks two years ahead of time;

MediaWorks’ subsidiary RadioWorks has repaid the $32.28 million outstanding on a “loan” signed off by former Communications Minister Steven Joyce that allowed the media group to defer payments to the Crown for radio spectrum licences.

The balance of $32.28m of principal plus interest was paid on Wednesday – almost two years ahead of schedule, current minister Amy Adams said in a statement.

MediaWorks had originally owed $43.3m plus GST and had previously made two payments of $11.9m. The Crown charged the private equity-owned company interest of 11.2 percent.

Government officials had recommended against loaning RadioWorks the money, but Mr Joyce, a former owner of RadioWorks, then approved the loan.

Note the reference in the media report above; “[Minister] Joyce, a former owner of RadioWorks, then approved the loan“. Joyce was indeed owner of RadioWorks, until it was bought out by CanWest, in April 2001. CanWest was also former owner of TV3.

Also note the reference that Key discussed the bail-out of MediaWorks with then CEO, Brent Impey, at a “social event”. Key has conducted government business at other, similar, “social events“;

Earlier this week, a spokesman for the Prime Minister said Mr Key’s diary showed no scheduled meetings with Sky City representatives since July last year.

“Having said that, the Prime Minister attends numerous functions and is quite likely to have come across Sky City representatives at some stage.”

Mr Key was asked last July in a question for written answer from Green MP Sue Kedgley whether he or any of his ministers had met representatives from the casino to discuss changes to the Gambling Act.

He replied: “I attended a dinner with the Sky City board 4 November 2009 where we discussed a possible national convention centre and they raised issues relating to the Gambling Act 2003”.

Mr Key said he was unable to speak for other ministers as to whether they had met casino representatives.

Mr Key’s spokesman today refused to say what date Mr Key’s offer to make a deal with Sky City was made.

Commercialism?

Mediaworks’ rationale for canning ‘Campbell Live‘ has rested solely on it’s supposed ratings.

Despite ‘Campbell Live‘ improving in ratings over the last few months, the company has “reviewed” the programme, and decided to ditch it, in favour of something else. According to MediaWorks’ Group Head of News, Mark Jennings, the new show is described thusly;

Campbell Live is to be replaced by a four-day-a-week programme presented by two people.

[…]

Mr Jennings said audience research suggests that people want more stories at a shorter length, and TV3 had already been trying to get more stories into Campbell Live.

[…]

He said people want a mix and a mix of personalities

Considering that ‘Campbell Live‘  already often presents three or four stories, of varying lengths, within it’s half-hour slot – even with advertising breaks  removed! – it is hard to see how much shorter a story can get. Are we talking about four-minutes-once-over-lightly?

Many issues and problems confronting our nation are deep and complex. It is hard to see how making a story shorter gives viewers the details  necessary to inform and enlighten.

In effect, it seems to be a continuing dumbing-down of the 7PM timeslot.

Radio NZ reported Jennings explaining why TV3 had not actively promotedCampbell Live‘;

Asked about criticism of the lack of promotion for the programme and Mr Campbell, Mr Jennings said Campbell Live was an established programme and he didn’t think that publicity campaigns would make much difference to the size of its audience.

Really? And yet TV3 heavily promotes entertain shows like “The GC“;  “X Factor“; “The Block“, and “The Bachelor” – programmes that are high in entertainment (questionable) but lacking in any informative value whatsoever. Like consuming a constant diet of sugar and carbs, but nothing else of a substantive, nutritional nature.

Even the ratings argument does not entirely stack up when we see the figures;

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TV Ratings - All round rises at 7pm - Campbell Live - Seven Sharp - Throng - TV3 - TVNZ - Mediaworks - television

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Acknowledgement: Throng.co.nz

Note the highs where ‘Campbell Live‘ (in green graph) outperforms ‘Seven Sharp‘ (though not often in the same evening) and note how viewing numbers are steadily increasing for ‘Campbell Live‘ but remain relatively static for ‘Seven Sharp‘.

For ‘Campbell Live‘, the numbers are moving in the right direction.

But if Mediaworks is looking at cancelling low rating shows on TV3, then perhaps it should be looking elsewhere, as Throng website reported on 22 May;

Most watched on TV3

  1. Campbell Live: 330,830 (7:00pm – 7:35pm)

  2. The Graham Norton Show: 298,660 (8:35pm – 9:35pm)

  3. Jono and Ben: 224,210 (7:35pm – 8:35pm)

  4. 3 News: 220,930 (6:00pm – 7:00pm)

  5. Live at the Apollo: 169,260 (9:35pm – 10:35pm)

If ratings are the sole determinant of what goes/stays, then TV3’s News at 6PM should be the first to face the chop. At 220,930 viewers, it 109,900 behind ‘Campbell Live‘. Even ‘Jono and Ben did better, with 3,280 more viewers.

Interestingly, TV3 gains viewers after it’s 6PM News.

Note how TVNZ loses viewers after the TV1 News;

Most watched on TV ONE

  1. One News: 700,220 (6:00pm – 7:00pm)

  2. Seven Sharp: 429,510 (7:00pm – 7:30pm)

  3. Millionaire Hot Seat: 386,220 (5:30pm – 6:00pm)

  4. Location Location Location: 382,170 (7:30pm – 8:30pm)

  5. Coronation Street: 255,130 (8:30pm – 9:25pm)

TV1 loses 270,710 viewers after their 6PM News.

The upshot of this should be blatantly obvious to the dullest TV executive (take note please, Mark Weldon); Mediaworks has hot property in the form of  ‘Campbell Live‘.

Seven Sharp’ – not doing quite so well in viewer retention.

Campbell Live‘ should be promoted by Mediaworks – not dumped and replaced by some lowly imitation of TV1’s execrable ‘Seven Sharp’ .

Has Mediaworks  actually taken the time and effort to conduct a focus group on how ‘Campbell Live‘ is perceived? This is important because one of the most important commercial factors in a product or service is branding.

If ‘Campbell Live‘ has a more positive branding than, say, ‘Seven Sharp‘, then Mediaworks is being foolish and short-sighted in not capitalising on it.

If whatever replaces ‘Campbell Live‘ fails to attract numbers, then those responsible should – and must – fall on their corporate swords and resign.

If the leaders of Labour and ACT could take responsibility for their parties dismal results at the last election, then so should the entire Board of Mediaworks, starting with Mark Weldon.

Conclusion

Companies  expect hard work and dedication from their employees, and fair enough. But to then shaft employees who have given that hard work and dedication, and put their heart and soul into their profession – is a poor reward.

For those  executives at Mediaworks who made the decision to axe ‘Campbell Live‘, I have a clear and simple message for them. They may expect the same loyalty from viewers toward TV3, as they themselves have shown to John Campbell, his team, sponsors, advertisers, audience,  and loyal fans.

I look forward to repaying in kind.

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Addendum1

The team at Campbell Live thanked Action Stations for the petition mounted to save the programme;

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Action stations logo - campbell live

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A personal message from the team at Campbell Live to each and everyone of you…

From everyone on Campbell Live, your support and kindness has saved us during these past seven weeks. Not only did it lift us personally, it reminded us why we’re here and that what we do matters and can make a difference. To the 86,000 people who so kindly signed the petition, and even marched for us, thank you – very much. We’re so proud to have you as viewers.

Pip Keane, John Campbell, Ali Ikram, Anna Burns Francis, Sarah Stewart, Tory Evans, Chris Jones, Jayne Devine, Julian Lee, Lachlan Forsyth, Marise Hurley, Michael Hardcastle, Mike Wesley-Smith, Sarah Rowan, Claire Eastham-Farrelly, Tristram Clayton, Vanessa Forrest, Billy Weepu, Dan Parker, Whena Owen, Lee Thomson, Emily Samonta, Jendy Harper, John Sellwood, Kate McCallum, Graeme Mulholland.

Addendum2

From Hilary Barry, one of John Campbell’s closest colleague and friend, shared her feelings with a audience of hundreds of thousands of viewers;

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How many of us felt the same? For many of us, John  Campbell was like the Conscience of the Nation; the person we could most trust to tell a story that held authority to account; truth to power; and spoke for the ‘ordinary Kiwi battler’.

Someone in  mainstream media recently asked me, in a roundabout way, if we would feel the same if Mike Hosking left NewstalkZB.

I suggest not.

Hosking does not engender the same empathy and respect that Campbell does.

Not even close.

 

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The evil that men do lives after them;
The good is oft interred with their bones…

– Julius Caesar, ActIII, scene ii

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#boycottTV3

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References

NZ Herald: John Key calls media ‘Knuckleheads’

TV1 News: Prime Minister defends loan to MediaWorks

Fairfax media: Government denies MediaWorks loan

TV3 News: Mediaworks pays off ‘loan’ 2 years early

Fairfax media/Website: Key’s six million dollar man – Steven Joyce

NZ Herald:  SkyCity deal was PM’s own offer

Radio NZ: TV3 – New show won’t be ‘light and fluffy’

Throng: Ratings – All round rises at 7pm

Throng: TV Ratings – 22 May 2015

Youtube:  Hilary Barry’s tears for John Campbell during 3news

Other bloggers

The Daily Blog: Martyn Bradbury – And then they came for Campbell Live – the end of political journalism on NZ television

The Daily Blog: Rex Widerstrom – Thirteen things you (probably) didn’t know about Mark Weldon (CEO of Mediaworks)

The Standard: I want that left wing bastard gone

Previous related blogposts

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

Doing ‘the business’ with John Key – Here’s How (Part # Rua)

Doing ‘the business’ with John Key – Here’s How (Part # Toru)

The Curious World of the Main Stream Media

Producer of ‘The Nation’ hits back at “interference” allegations over ‘Campbell Live’

Campbell still Live, not gone

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media sensationalism and laziness - Jon Stewart

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This blogpost was first published on The Daily Blog on 24 May 2015.

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Radio NZ – Mediawatch for 24 May 2015 – TV3’s Mark Jennings interviewed re Campbell Live

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Radio NZ logo -  media watch

 

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Originally aired on Mediawatch, Sunday 24 May 2015

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Mediaworks Head of News and Current Affair, Mark Jennings, answers questions on the planned  cancellation of  TV3’s ‘Campbell Live‘…

Jennings’ responses to Colin Peacock are at times contradictory, and at others, raise more questions still.  The listener is left wondering if there is indeed more to the demise of ‘Campbell Live‘ than Mediaworks has been letting on.

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Play AUDIO

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Play AUDIO(Alt. link)

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The number one question has to be why Mediaworks did not promote ‘Campbell Live‘ more heavily. Jennings’ comment that the show “had been drifting down in ratings” simply does not stack up when the rating numbers are looked at.

Jennings admitted that the recent “burst of publicity has helped” ratings. So, one is left wondering why Mediaworks has not done it’s own promotional activity if the “burst of publicity” helped.

Listen to the interview. Come to your own conclusion.

 

 

This blogpost was first published on The Daily Blog on 25 May 2015.

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National Tinkers while Auckland Property Prices Burn

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snail politics - national government tinkers

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When it comes to tax cuts for the rich;  state asset sales; slashing public services; and corporate welfare – National can move at relativistic velocities that Einstein concluded were beyond the realms of physical  laws in our Universe.

When it comes to social problems like child poverty; increasing greenhouse emissions from agriculture; and a housing crisis in Auckland (denied again, recently, by our esteemed Prime Minister)  – the National government can tinker and prevaricate in ways that would do a two year old, at an early childhood centre, proud.

It has opposed, resisted, condemned, criticised, and generally done everything within it’s power not to implement any form of capital gains tax in this country. Suggesting to National that a CGT could be one tool (of many) to quell housing speculation in Auckland has been like inviting a Vegan to a spit-roast barbecue.

Belatedly, as is usual for this  government, after considerable pressure from multiple political, community, business, and state sectors, Key has decided to move – albeit at a glacial pace, and with a tentative single step – to introduce a limited Capital Gains Tax.

The limited CGT will apply;

Introducing a new bright line test to tax gains from residential property sold within two years of purchase, unless it’s the sellers main home, inherited or transferred in a relationship property settlement.

As Key explained;

“It’s not unreasonable to expect that if you buy an investment property and sell it for a gain within two years, then you should be taxed on that gain.”

Fair enough to. It is not unreasonable, especially when the rest of us have no choice but to pay tax on all our other earnings, whether it be as a wage-slave; self-employed; retailer; contractor, etc, etc, etc, etc, etc…

Even property investors admit it is fair, as NZ Property Investors’ Federation CEO, Andrew King, pointed out;

“As we have been saying for years, people trading property have always had to pay tax on their profits and this move will help to clarify this. This should finally put to rest all the unfounded comments from people who say that property has a tax advantage.”

But – two years is the “bright line”?!

So, property speculators/investors who sell their assets in, oh, say, two years and one day are safe?

I’m sure this has escaped the attention of every property speculator/investor in the country. Plus their accountants. Plus tax specialists. Plus the chap who mows the lawns.

Shhhh! Be vewy, vewy quiet! Don’t tell anyone.

As long as no one knows of the two year “bright line”,  the law is “perfectly workable”…

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flying money pig

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Tinkering – best left to a National government. They are expert at it.

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References

Fairfax media:  No housing crisis in Auckland – John Key

NZCity: Capital gains tax on property announced

NZCity: Capital gains tax – what’s been said

Other blogs

Bowalley Road: The Least They Could Do

Gordon Campbell on the government’s belated moves on property speculation

No Right Turn: Winning the argument on taxing capital gains

Polity: At the end of the day what most New Zealanders ackshully accept is… (Housing edition)

Polity: More-tax-on-capital-gains-but-not-at-all-a-capital-gains-tax

The Dim Post:  Progress

The Standard: CGT – the focus groups made Key do it

The Standard: Capital gains tax to be introduced

The Standard: Herald praises Cunliffe for CGT policy

Previous related blogposts

A Capital Gains Tax?

Our growing housing problem

National spins BS to undermine Labour’s Capital Gains Tax

Why should tradies be prosecuted for doing “cashies” and not paying tax?

Letter to the Editor – A Claytons Capital Gains Tax?

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capital-gains-tax-first-world-problem

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This blogpost was first published on The Daily Blog on 21 May 2015.

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John Banks – A Tale of Two Cheques

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John banks - kim dotcom - false electoral return - conviction - 2010 local body election - cheques to dotcom

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On Radio NZ’s Morning Report, on 20 May, John Banks admitted to Guyon Espiner that he had requested a donation from Kim Dotcom for his mayoral campaign in the 2010 local body elections;

@ 4:42 –

Espiner: “You got five donations of $25,000, all were

recorded as anonymous. How did Kim Dotcom know to

split his donation into two lots of twentyfive thousand

dollars?

Banks fudged the question and repeated that he had  been exonerated under the Electoral Act.

With constant probing and deft dismissal of Banks’ obfuscation, Espiner persisted until he got a truthful response from Banks;

@ 5:56

Espiner: “Did you ask Kim Dotcom for money?

Banks: “Yes. And that is the evidence. You should have

a look at the evidence.”

So three questions remain;

  1. Why did Kim Dotcom split his $50,000 donation into two lots of $25,000?
  2. Why was Kim Dotcom’s two donations recorded as “anonymous”, when the name “Megastuff” was clearly imprinted on his cheques?
  3. Who were the other three $25,000 anonymous cheques from? Were they all from one donor, splitting his/her $75,000 donation into three lots to avoid requirements to name benefactors?

Plus, there are other matters of Banks “forgetting” that he had met Kim Dotcom; forgetting that he had asked for a donation; forgetting taking a helicopter ride to his Coatesville mansion, etc.

Banks referred several times that the Court of Appeal had vindicated him and his wife;

I have been completely exonerated.” (@ 2:05)

No such thing has occurred. His case was dismissed on a technicality. The evidence – including any new evidence – was never put before a jury to determine.

I submit to the reader that judicial “vindication” by technicality is no vindication at all.

Banks’ claim to innocence should be regarded as a mere “technicality”, at best.

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References

Radio NZ: Morning Report – Banks calls for Solicitor-General to stand aside (alt. link) (audio)

NZ Herald: Dotcom’s secret donation to Banks

NZ Herald: Banks’ donations – ‘I know nothing’

NZ Herald: Banks scandal – Lost in the memory banks

Other blogs

No Right Turn: Acquitted

Pundit: If you want people to believe you are honest, then it’s best not to file false donation returns

The Standard: John Banks; Conviction Quashed

Previous related blogposts

John Banks – escaping justice

John Banks: condition deteriorating

John Banks – escaping justice (Part Rua)

John Banks – escaping justice (Part Toru)

From the Pot-Kettle-Black files: John Banks (1997)

John Banks, ACT, and miscellaneous laws

Graham McCready to John Banks – an Open Letter

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John banks - kim dotcom - false electoral return - conviction - 2010 local body election.

This blogpost was first published on The Daily Blog on 21 May 2015.

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The cupboard is bare, says Dear Leader

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a-country-of-opportunity

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The latest on Budget 2015;

Prime Minister John Key is lowering expectations about measures to combat child poverty in this week’s budget.

Mr Key says there’ll be “some support” for those suffering material deprivation.

“But you’d appreciate that there’s a limited amount of resources that we’ve got in very tight financial conditions,” he told reporters on Monday.

Key has driven home the lack of “resources” (ie; money) in this year’s budget. On the Paul Henry show – that great bastion of critical thinking –

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cartoon

 

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–  Key was his usual relaxed self as he casually informed his host;

“We don’t have a lot of money. But again what I’d say to you is that we already do a lot, but there could be more we could do.”

And just to drive home the point, again casually;

“When you go to a Budget, you don’t have a lot of cash – and we haven’t, because we’ve been wanting to get the books in order.”

Of course National doesn’t “have a lot of money“.

Remember the tax cuts that Key promised during the 2008 general election? That was the  money National gave away in 2009 and 2010.

2008 was election year, and National’s aspiring leader, John Key, was pulling out all stops to win. His promises of tax cuts were the lynch-pin of National’s campaign strategy.

On  2 August 2008, National announced;

National will fast track a second round of tax cuts and is likely to increase borrowing to pay for some of its spending promises, the party’s leader John Key says.

But Mr Key said the borrowing would be for new infrastructure projects rather than National’s quicker and larger tax cuts which would be “hermetically sealed” from the debt programme.

The admission on borrowing comes as National faces growing calls to explain how it will pay for its promises, which include the larger faster tax cuts, a $1.5 billion broadband plan and a new prison in its first term.

On  26 September 2008, the Herald reported;

GDP shrank 0.2 per cent in the June quarter, confirming what everyone already knew – that the country is in recession. The smaller than expected June quarter decline followed a fall of 0.3 per cent in the three months to March, so the country now meets the common definition of recession: two consecutive quarters of economic contraction.

Undeterred by the country entering into recession, on  6 October 2008, Key promised;

John Key has defended his party’s planned program of tax cuts, after Treasury numbers released today showed the economic outlook has deteriorated badly since the May budget. The numbers have seen Treasury reducing its revenue forecasts and increasing its predictions of costs such as benefits. Cash deficits – the bottom line after all infrastructure funding and payments to the New Zealand Superannuation Fund are made – is predicted to blow out from around $3 billion a year to around $6 billion a year.

With a looming election only a month away, on 14 October 2008, National maintained it’s commitment to tax-cuts;

National will not slash spending at a time when people are looking to the government for a sense of security. In developing our economic management plan, we have concentrated on the fundamentals of the economy, and particularly on laying the foundations for a future increase in productivity.

National’s rebalancing of the tax system is self-funding and requires no cuts to public services or additional borrowing.

Over the next term of government the total cost of National’s personal tax cuts is balanced by the revenue savings from:
• Changes to KiwiSaver.
• Discontinuing the R&D tax credit.
• Replacing Labour’s proposed tax cuts.

Overall, our fiscal policy does not result in any requirement for additional borrowing over the medium term.

National won the election on 8 November 2008.

By 6 March 2009, the Global Financial Crisis had crashed New Zealand’s economy;

Budget deficit worse than forecast; debt blows out by NZ$15.4 bln

The New Zealand government’s operating balance before gains and losses (OBEGAL) for the seven months ended January 31 was NZ$600 million, which was NZ$800 million below the pre-election update and NZ$300 million below December forecasts, Treasury said. Tax revenue and receipts during the period were NZ$500 million lower than the pre-election forecast. Meanwhile, Treasury also disclosed a NZ$15.4 billion rise in Gross Sovereign Issued Debt to NZ$45.4 billion (25.3% of GDP) from the pre-election forecast. This included fresh Reserve Bank bill issuance to mop up the liquidity from lending to the banks against securitised mortgages.

Despite falling tax revenue, and increased borrowing by the government,  the tax cuts went ahead regardless. First, on 1 April 2009. The second trance on 1 October 2010.

The cost of these tax cuts was in the billions.

According to Key, the 2009 tax cuts cost the government $1 billion;

“…The tax cuts we have delivered today will inject an extra $1 billion into the economy over the coming year, thereby helping to stimulate the economy during this recession. More important, over the longer term these tax cuts will reward hard work and help to encourage people to invest in their own skills, in order to earn and keep more money.”

And according to information obtained from Parliamentary Library, and released by the Greens, the 2010 tax cuts cost the country an additional $2 billion;

The Green Party has today revealed that the National Government has so far had to borrow an additional $2 billion dollars to fund their 2010 tax cut package for upper income earners.

New information prepared for the Green Party by the Parliamentary Library show that the estimated lost tax revenues from National’s 2010 tax cut package are between $1.6–$2.2 billion. The lost revenue calculation includes company and personal income tax revenues offset by increases in GST.

All up, National gave away an estimated $3 billion – per year – in tax cuts.

That is why John Key has reneged on his promise – made on 22 September 2014, on TV3’s ‘Campbell Live‘ – that his third term would be spent combating child poverty.

No money.

Not only will National abandon any serious work to alleviate growing child poverty in this Country of Plenty, but it seems that the viability of  community organisations doing invaluable work  are threatened by chronic under-funding.

These community groups are often the ones on the front-line, picking up the pieces after government programmes are cut back or cancelled entirely. Even as our Brave New Free-Market World widens the wealth-gap even further, year after year.

Since National came to office in 2008, their cuts to community organisations has been systematic and dire.

From Women’s Refuge;

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Women's Refuge cuts may lead to waiting lists

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Then it was the turn of  Rape Crisis;

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NZ Herald - Govt funding cuts reduce rape crisis support hours - government funding cuts

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To medical clinics serving our most vulnerable, in-need youth;

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Christchurch's 198 Youth Health Centre to close its doors as management fails to implement directives from CDHB - National cuts to community organisations

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A Radio NZ report on 19 May revealed that yet another community organisation has become the latest victim of National’s mania to starving community organisations of funding;

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Relationships Aortearoa - funding cuts - Anne Tolley - budget 2015

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Relationships Aotearoa is facing closure as Radio NZ outlined on 19 May;

Relationships Aotearoa, New Zealand’s largest provider of counselling services, says its funding has been cut by $4.8 million since 2012 and the situation is increasingly dire with no assurance of more government funding.

The organisation posted a $271,000 deficit for the year ended 30 June 2014.

[…]

Relationships Aotearoa spokesman John Hamilton said since 2012 its funding from government agency contracts had fallen by $4.8 million – a fall of about 37 percent from $13.1m to a forecast $8.2m.

“There’s been no grants or injections to the bottom line … there’s been no CPI increase for MSD services for seven years but there has been increasingly complex demands in reporting requirements.”

Mr Hamilton said the situation was increasingly dire and more than 120 staff and 60 contractors would potentially lose their jobs if went goes under.

A funding cut of $4.8 million…

A deficit last year of $271,000…

Staff cuts of  46…

When interviewed on Radio NZ’s Morning Report, Minister Anne Tolley’s outright denial of any cuts to Relationship Aotearoa’s funding – despite evidence presented to her –  left seasoned journalist and interviewer, Guyon Espiner, frustrated with her moronic semantics game-playing;

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radio nz - Min. Tolley responds to potential collapse of counselling - relationship aotearoa - underfunding

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Tolley’s exercise in word-games beggars belief and if she thinks any intelligent person listening to her comments gave  credence to her obvious avoidance-tactics, then she is delusional. There is a world of difference between Radio NZ’s critical audience – and those who stare stupified and lobotimised at ‘X Factor‘/’My Kitchen Rules‘/’The Block‘.

As Key lamented,

“We don’t have a lot of money. But again what I’d say to you is that we already do a lot, but there could be more we could do.”

“When you go to a Budget, you don’t have a lot of cash – and we haven’t, because we’ve been wanting to get the books in order.”

Though there is always cash for really important things that “matter to New Zealanders”.

Things like corporate welfare;

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PM defends $30m payout to Rio Tinto

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Or like a flag referendum – $26 – $27 million;

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John Key defends cost of flag referendums

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And even spending $6 million of taxpayer’s money to build a sheep farm for a Saudi millionaire;

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NZ Government gifts $6m to offended Saudi businessman

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Key will always find money for things that matter to his government.

Child poverty just doesn’t happen to be one of them.

 

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References

NZCity News:  PM lowering expectations on child poverty

NZCity News: Child poverty targeted in budget

TV3 News: Child poverty targeted in Budget – John Key

NZ Herald: Nats to borrow for other spending – but not tax cuts

NZ Herald: Recession confirmed – GDP falls

NZ Herald: Key –  $30b deficit won’t stop Nats tax cuts

Jo Goodhew MP for Rangitata: Newsletter #41

Interest.co.nz: Budget deficit worse than forecast; debt blows out by NZ$15.4 bln

Parliament: Hansards – Tax Cuts – Implementation

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

Dominion Post: Women’s Refuge cuts may lead to waiting lists

NZ Herald: Govt funding cuts reduce rape crisis support hours

NZ Doctor: Christchurch’s 198 Youth Health Centre to close its doors as management fails to implement directives from CDHB

TV1 News: ‘Devastating news for vulnerable Kiwis’ – Relationships Aotearoa struggling to stay afloat

Fairfax media: Government may let Relationships Aotearoa fold

TV1 News: Relationships Aotearoa hanging on at ‘awful’ 11th hour

Radio NZ: Counselling service rejects claim it’s badly run

Radio NZ – Morning Report: Min. Tolley responds to potential collapse of counselling (alt. link) (audio)

NZ Herald: PM defends $30m payout to Rio Tinto

NZ Herald: John Key defends cost of flag referendums

TV1 News: NZ Government gifts $6m to offended Saudi businessman

Other blogs

Local Bodies: Government Kills Relationships Aotearoa

Previous related blogposts

That was Then, this is Now #6

Budget 2013: petrol taxes

“It’s fundamentally a fairness issue”- Peter Dunne

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200000-abandoned-for-national-tax-cuts-ht-william-joyce

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This blogpost was first published on The Daily Blog on 20 May 2015.

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