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Roads, grandma, and John Key

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“However, the Government could not afford to give DHBs the $140 million required to enable rest homes to pay their staff more,”

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“It’s one of those things we’d love to do if we had the cash. As the country moves back to surplus it’s one of the areas we can look at but I think most people would accept this isn’t the time we have lots of extra cash.” – John Key, 28 May 2012

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In March of this year, rest home care workers went on strike throughout New Zealand, demanding an increase in their pay rate of $13.61 an hour.

That paltry sum is only 11 cents an hour above the minimum wage, which as Finance Minister said on TVNZ’s “Q+A“, on 6 November last year, was not liveable for any long period of time,

GUYON:  Okay, can we move backwards in people’s working lives from retirement to work and to wages?  Mr English, is $13 an hour enough to live on? 

BILL:  People can live on that for a short time, and that’s why it’s important that they have a sense of opportunity.  It’s like being on a benefit.

GUYON:  What do you mean for a short time?

BILL:  Well, a long time on the minimum wage is pretty damn tough, although our families get Working for Families and guaranteed family income, so families are in a reasonable position.Source

If $13 an hour is ‘ pretty damn tough’ and ‘people can live on that for [only]  a short time’  – then how much better is $13.61 an hour? Not by much, one would think.

But, as Dear Leader told the nation on 28 May,

It’s one of those things we’d love to do if we had the cash. As the country moves back to surplus it’s one of the areas we can look at but I think most people would accept this isn’t the time we have lots of extra cash.

You could certainly change the proportion of where you spend money in health. We spend about $14.5 billion in the overall health sector.

What’s going to go to pay the increase in this area? If you said all of the increase is going to go into this area, that would be roughly $600m over the forecast period which is four years… So that would have left us $1bn for other things.

“We put the money into cancer care and nursing and various other things. On balance, we think we got that about right.”

See: PM: No money for aged care workers

“On balance”, I think National is about as incompetant as it was in the 1990s, and as it was under Rob Muldoon.

To make sure that the peasantry (ie, us) got the message,  he shifted blame on to Labour by insisting, that the former Labour government “had a lot more cash floating around and didn’t meet the bill“.

I wonder how many times he’s going to blame Labour?

I thought National was BIG on people  taking responsibility?

But just when the public get used to the idea that paying hundreds of  heroic careworkers in resthomes – who look after our grandmas, grandpas, the sick, and the infirm – a measely $13.61 is the best we can afford, we discover that National does have access to pots of  cash (our cash, by the way).

And boy, do they  know how to spend it like it’s going out of fashion by 2014,

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Full Story

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Full story

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A total of  $336 million spent on consultants, and various “fees” for selling our own state assets to “mums and dads”  (aka,  corporate investors).  Of that, $216 million has already been spent on “consultants” – and that’s without  one metre of tarseal being laid.

And yet, our smiling and waving Dear Leader has the cheek to say that we can’t pay resthome careworkers any more money? He insists that,  “it’s one of those things we’d love to do if we had the cash. As the country moves back to surplus it’s one of the areas we can look at but I think most people would accept this isn’t the time we have lots of extra cash.”

When I found and collated these three media stories, my jaw dropped.

I have long since given up trying to understand John Key’s “moral compass” (if he actually has one).

But I wonder what those 1,058,636 New Zealanders who voted for this wretched Party must be feeling when they read this sort of thing? Does it even register with those 1,058,636, I wonder?!

But there is a delicious irony that will eventually fall upon most of those 1,058,636.  For they too, are growing older…

And eventually, they will end up in resthomes, being cared for by low-paid, exploited, careworkers.

I wonder if those careworkers, by then, will still be the conscientious, dedicated, saints that  Human Rights Commissioner, Dr Judy McGregor said of them,

The complexity of the job was actually a surprise for me. It’s quite physical work, and it’s emotionally draining because you are obliged to give of yourself to other people.

Saint-like women do it every day so that older New Zealanders can have a quality of life.”

See: Resthome spy hails saint-like workers

Will Resthome careworkers still be Saint-like in their care for us?

Or will they have had a gutsful by then, and not give a damn? If we continue to pay them $13.61 an hour (or a future-equivalent) – is that the value of service we’ll end up receiving?

If so, I hope those exploited, burnt-out, angry workers will vent their frustrations on a specific group of 1,058,636 New Zealanders. After all, they will have paid for their care. All $13.61 of it.

Karma.

As for the rest of us – those who understand the utter futility of electing John Key into power – I hope that National’s apalling waste of our valuable tax-dollars will motivate you all for the next election.

I know that most readers who visit this blog are fair minded, decent, people. I know you will be voting to get rid of this rotten, morally-corrupt,  government in 2014 (if not earlier).

But that’s not enough. Simply voting is insufficient.

If, after reading this (and similar examples of National’s wretched policies)  you are angry and want to get rid of John Key – then at the next election, find one other adult who did not vote last year and encourage that person to walk to the nearest polling booth with you to cast his/her vote.

About a million people did not vote last year. We need to find them and explain to them why their vote is crucial.  The future of this country lies in their hands.

Our most powerful Weapon of Mass Democracy – our vote.

It is our vote that makes us powerful.

Let’s do it.

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Related Blogposts

No Rest for the Wicked

“It’s one of those things we’d love to do if we had the cash”

1 March – No Rest for Striking Workers!

Additional

Service & Food Workers Union

NZ Nurses Organisation

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The National Party, common sense, and sausage sizzles

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Frank Macskasy Blog Frankly Speaking

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I’ve been involved in politics, in one form or another, for much of my life. I think I have a fairly good ‘handle’ regarding politicians; their ideologies; and their Parties.

I’ve seen Muldoon come and go; Bolger and Richardson; Shipley and English; and now Key and English, try their hand at managing our economy and spending our tax dollars.

Without exception, folks, every single National Government, from Robery Muldoon onwards, has been an apallingly bad fiscal manager.

National’s modus operandi,

  1. Cuts short term spending, worsening long-term social problems, which will become more expensive eventually, as social ills remain unaddressed,
  2. Cuts state sector employees and services, then realises that essential issues still remain,
  3. Cuts taxes when we can least afford it,
  4. Implements fiscal, political, and social policies that impact negatively on economic and social indicators,
  5. Borrows from overseas lenders when it was never necessary in the first place (or reduced borrowing, had tax cuts not been implemented)
  6. And generally makes bad choices that, long term, will cost the taxpayer more.

So – how on Earth has National ever built up a reputation of being a “sound fiscal manager” of our economy?!?!

Because every time National has been in office, it has left the country in an absolute economic shambles.

From Ruth Richardson’s “Mother of All Budgets”, to Jenny Shipley’s and Bill English’s “slash and burn” of the health sector,  state housing, Police force, and other essential state services in the late 1990s – National  has proven time and again it’s ineptness.

This Party is utterly clueless when it comes to simple matters of cause-and-effect.

One thing, though, has escaped me utterly.

How have they  sucked in the public to effect a (undeserved) reputation of sound fiscal management?

Whilst National runs deficits,  Labour, in the 2000s, ran surpluses. (A fact National attempts to hide by clumsily  persisting in re-writing history.)

See previous blogpost: Labour: the Economic Record 2000 – 2008

Case in point; Dear Leader and his minions has made a great deal about slashing the state sector. National has made deep cuts into state sector services and sacked over 2,500 much-needed employees,

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Frank Macskasy Blog Frankly Speaking

Full Story

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As 2,500 people were sacked from their jobs – all for a grand saving of $20 million,  National belatedly realised that their slash-and-burn was little more than a false economy.

It soon became apparent that many of the sacked workers were much-needed experts in their field, and essential personnel to make the State function smoothly.

National took “appropriate action”,

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Frank Macskasy Blog Frankly Speaking

Full Story

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Frank Macskasy Blog Frankly Speaking

Full Story

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Frank Macskasy Blog Frankly Speaking

Full Story

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Two thousand, five hundred of our fellow kiwis lost their jobs for “savings” of $20 million.

The Economic Development Ministry alone  increased spending on consultants, contractors, etc,  from $6.7 million in 2008-09 to $19.2 million in 2010-11. Other ministries most likely spent several million on their consultants, contractors, advisors, and Uncle Tom Cobbly.

See: ‘Consultancy culture’ cost $525m last year – Labour

So much for “savings” of $20 million.

One can only try to imagine what those 2,500 people who were sacked by National, must be feeling right now.

So the question remains; how has National managed to paint itself as a “responsible steward” of the country’s economy? Especially when a cursory study of their real performance reveals otherwise?

Tracey Watkins, writing in today’s (19 May)  ‘Dominion Post‘, may have  offered a clue,

But while these sorts of measures might be an annoyance, they do not cause widespread pain.

And in a perverse way, Europe helps Bill English’s cause. It maintains a sense of crisis while the sight of workers marching in the streets only underscores the gentle and low-fuss nature of our own austerity drive.

This is why Labour has struggled so far to run a coherent argument against National’s management of the books – the danger has always been that protesting any cuts to date look not only shrill, but profligate. To voters, less is more at the moment.

See: Kiwis are tolerating moderate austerity

A sense of crisis “. It may well be that the Middle Classes have been panicked by overseas events. There may be an under-lying fear that – like households in tough times – the country needs to cut back on spending, to avert a Greece-like melt-down in our own economy.

There may be an underlying belief  within the collective consciousness of New Zealanders that, in “tough times”, National is better at cutting than Labour. In “tough economic times”, cutting expenditure may appear to the public as more of a priority than, say, job creation.

Such feelings are not necessarily based on any reality or logical analysis of the country’s true economic situation; nor of the side-effects of cutting back on State expenditure. These may be deep-seated feelings based on how people may view the economy.

Generally speaking, people have very little experience with macro-economics; Keynesian-vs-Friedmanite economic systems; nor any real understand of how government economic policies work.

For most folk, their only experience is running the finances of their own households. Doing a household budget; paying bills;  and balancing the chequebook is the extent to most peoples’ exposure to finances.

And yet, government finances is not like household finances at all. The former is more complex, with control over fiscal and taxation policy; revenue streams;  and policies that can work to generate income for the state. The State has access to borrowings (if necessary) not open to ordinary households. By widening the tax-base, the State can increase its revenue – no easy task for ordinary households.

In short, the State has options not readily available to households.

But  through a dumbed-down media which focuses mostly on superficial political issues; mindless entertainment; and on the Here-And-Now, the public have become low-information voters.

By not being aware of the true extent of the State’s abilities, the public are trapped in a narrow paradigm of  the State being akin to “household budgets”.

So when National cuts expenditure, services, and jobs – it appears to the public to be a “common sense” plan to follow.

The public are not so aware that austerity measures can have negatives impacts on our economy and society, even in the short-term. Cutting back on government economic activity means a drop in all-round economic activity.

It is no coincidence that following Ruth Richardson’s “Mother of all Budgets“, that unemployment, company liquidations, economic growth, and other indicators worsened.

This is a Party that I would barely trust to run a sausage sizzle. They’d get rid of the volunteers; sell the barbeque; pay themselves a hefty fee; and claim success,

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The ‘mother of all budgets’

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Frank Macskasy Blog Frankly Speaking Mother of all budgets

Prime Minister Jim Bolger and Finance Minister Ruth Richardson make their way to the House of Representatives for the presentation of the 1991 budget. Richardson was from the radical wing of the National Party, which promoted individual liberty and small government. This was reflected in the budget, which severely cut government spending, including on welfare. Richardson proudly proclaimed her plan as the ‘mother of all budgets’, but such was its unpopularity among voters that it – along with high levels of unemployment – nearly cost National the next election.

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Frank Macskasy Blog Frankly Speaking

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Frank Macskasy Blog Frankly Speaking

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In the above graph, note the two ‘spikes’ in unemployment. The first in the early 1990s, after cuts (through the “Mother of all Budgets”)  created a rise in unemployment. The second rise occurred in the late 1990s, when the Shipley/English government again cut government services.

However, unemployment fell after the election of a Labour-led government in late 1999.

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Frank Macskasy Blog Frankly Speaking

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The implications of austerity policies should be crystal clear to everyone:  reducing government expenditure and activity in the economy dampens overall economic activity.  Everyone is affected – no one escapes the inevitable downturn.

Hence why the new French President, Francois Hollande, has rejected austerity policies for his country. President Hollande understands full well that cutting government expenditure will result in reduced state services; more unemployment; and a drop in economic activity and  growth.

As long as the public are aware of these facts, then they can make decisions accordingly.

Ignorance of these facts will be painful, as anyone with memories of the 1990s will attest to.

In this case, ignorance is not most definitely not ‘bliss’. And no one will be exempt.

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Additional

Dominion Post: Public service cuts get deeper

Bloomberg:  Hollande Vows to Fight Austerity After Beating Sarkozy

References

Te Ara: Story – Business failures and corporate fraud

Te Ara: Story – National Party

Trading Economics: New Zealand

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$13 million taxdollars down the toilet. Thankyou, Mr Key, may we have another?

This government has thrown over 2000 state workers onto the unemployment scrapheap, despite having promised in 2008 to CAP the civil service – not fire workers.
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These 2000+ government workers  are ordinary New Zealanders; mums and dads; many of  whom have families to care for. Like the Van der Lems, who both lost their jobs within months of each other,

(See earlier story;A strong streak of masochism? Or a full moon?”)

This is not “capping” the state workforce –  it is deliberately throwing people out of their jobs after giving years of loyal service. It is gutting services – despite John Key promising – yet again – not to do so.

Now it is revealed that this government has wasted $13 million on a couple of hundred “consultants”??? Many of whom were “former public service chief executives and Treasury staffers contracting back to the organisation”!?

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This is ludicrous!

So much for John Key promising us in 2008,

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

Yet again, we have another example of why National is not fit to be in government. Their idea of prudent economic “management” is a sick, pathetic joke.

Unfortunately, the joke will be on us if New Zealand voters are silly enough to re-elect these clowns.

By the way, I know of one civil servant who was made redundant in the early ’90s (again during a National Government) from the old Ministry of Works. They then found that his job was so specialised that the MoW had to rehire him as a “consultant” – at $50 an hour!!!

Thankyou, National. But wouldn’t it be quicker if I just flushed my tax dollars down the toilet myself?

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Meanwhile, the rest of us peasants have to make do with an extra 38c  an hour…

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I somehow don’t believe that this is quite what we had in mind when we voted for a John Key-led government in 2008.

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Further reading

2008: A Fresh Start forNew Zealand – A State of the Nation Speech

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