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Posts Tagged ‘cycleway 4000 jobs’

To intervene or not to intervene, that is the question…

8 February 2013 8 comments

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To intervene, or not to intervene, that is the question:

Whether ’tis nobler in this government’s mind to suffer The slings and arrows of outrageous recessionary fortune,

Or to take arms against a global sea of economic troubles,

And by opposing end them? To be hands on, and interventionist…

(With apologies to The Bard…)

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Farmers get it…

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'Well-deserved' $80m for irrigation

Full story

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Rich families get it…

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Richlisters up for Govt bailout

Full story

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Kids from rich families  get it…

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$43 million should be saved from private school subsidy

Full story

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Insurance companies get it…

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Government announces $500m bailout for insurer AMI

Full story

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Even cute, furry-footed Hobbits get it…

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OECD knocks 'Rings' films' multimillion tax subsidies

Full story

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And more for the Precious

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Hobbit tax rebate swells to $67.1m in second year of production

Full story

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Hell, practically everyone can get it…

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business.govt.nz Grants & incentives

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Subsidies for everything and everyone…

But not, it seems, to assist struggling construction companies until the Christchurch re-build kicks in, in earnest, and they can trade their way out of difficulties,

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Mainzeal collapse 'tip of iceberg'

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In a brutally frank analysis of the industry,  NZ Herald journalist Anne Gibson wrote this piece about other failed construction companies and the effect it was having throughout the country – see: Recession hammered building firms, say chiefs

Greg O’Sullivan, of  Takapuna-based building consultants Prendos, said,

The recession has hammered the industry to the ground.  It becomes a very acrimonious environment. Builders are having to watch every penny to survive.”

Source: IBID

And it was all so unnecessary.

No government could  not have prevented the recessionary effects of the Global Finance Crisis. But a more proactive government could have mitigated the harshest effects of the international recession with careful stimulation of the economy.

And by “stimulation” I do not refer to the wasteful, blunt-instrument-style tax cuts of 2009 and 2010. Those tax cuts added nothing to economic growth and only served to cut government revenue (see: Outlook slashes tax-take by $8b).

Thousands of jobs could have been saved. Thousands more jobs created.

A proactive government, with Ministers able to look ahead, would have immediatly implemented strategies to counter damaging recessionary effects;

  • a dynamic building programme post-2009’s “Job Summit” (and I don’t mean Key’s wretched cycleway idea – see:  Cycleway jobs fall short)
  • increased investment, incentives, and  subsidies for apprenticeships and other training/education for young people and other unemployed New Zealanders
  • reform of tax laws which see inefficient investment in speculative house-buying/selling less attractive, and re-direct investment into productive industry

National should never have allowed our economy to get where it is now.

This is a government that is derelict in it’s duty, and for Steven Joyce and his cronies to carp on about  “overseas investment” is a moronic cargo-cult mentality that simply defies understanding.

If New Zealand businesses leaders and Captains of  Commerce still believe that National is a “prudent manager of the economy” – then going by the last four years and events in the 1990s – I promise you that you will get what you richly deserve if they are re-elected in 2014 (or earlier).

This isn’t governance. This is economic decline by a thousand cuts.

Expect things to get worse.

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Other Blogs

Keys bald-faced lies

Additional

NZ Herald: Collapse ‘gut wrenching’ for roofing business (9 Feb 2013)

NZ Herald: Rise and fall of a very modern businessman (9 Feb 2013)

NZ Herald: Brian Gaynor: Mainzeal collapse needs investigation (9 Feb 2013)

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Jobs Summit: 2012

10 October 2012 5 comments

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1. Problem

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If we’re going to have to wait for National’s policies kick-in and create the 170,000 new jobs they promised us last year, the  rate of progress will be so glacial that continental drift will  propel New Zealand to crash into the Australian sub-continent before anything happens.

Oh well, at least we won’t have to fly to Australia to find jobs. We’ll just be walking across the beach to Sydney.

Unfortunately, that may take the better part of 50 million years, give or take.

All hilarity aside, the point that should not escape us is that National’s policies are simply not growing the economy and not delivering the jobs we need to reduce  162,000 jobless numbers.  Their obstinate  reliance on ‘The Market’ to deliver job-growth has ham-strung National’s ability to address growing redundancies and unemployment.

Bullying the unemployed – as Bennett has been doing with her bizarre “social obligations”, compulsions, and sanctions  – is little more than a vote-grabbing exercise for rednecks and low-information voters, but otherwise of no practical value in creating even one single job.

John Key’s much-vaunted “Jobs Summit” in early 2009 appears to have  generated only limited success, with John Key’s “darling” project – the Cycleway – not living up to hype for job creation,

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Source

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National clearly has no inkling of how to generate jobs.

Indeed, their own neo-liberal doctrine demands that all job-creation be left solely up to ‘The Marketplace’,

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

Although when it suits Key, he can be  unashamedly “Janus-faced” when it comes to whether or not the State has a role to play in job-creation,

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

Indeed, Mr Key.

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2. Solution

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It is patently obvious to all but the most partisan neo-liberal National/ACT disciple, that the last 30 years of  “orthodox” market ideology has not delivered the ‘goods’.  Rogernomics/Market economy/crony capitalism  – call it what you will – has failed at nearly every level.

Only a few have benefitted,

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Full pathetic story

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The EPMU (Engineer Printing Manufacturers Union) is not waiting around for John Key and National to get of their chuffs and act.

They have called for a summit, to be held this Friday (12 October), in Auckland.

EPMU national secretary, Bill Newson, said,

No one who has seen the mass redundancies of recent months or the numbers of Kiwis heading to Australia can be unaware of the deepening jobs crisis in this country and the need for a new approach.

“Every day we’re seeing redundancies and the impact these have on communities all over New Zealand. At the same time we’re talking to employers who tell us they don’t want to lay people off and are looking for any support they can get to keep people in jobs.

“The common thread through all of these redundancies is the hands-off approach of the last 30 years, which says the Government should keep out of the economy, leave our exchange rate to be set by speculators and accept the decline of manufacturing in this country as somehow inevitable.

“Our union is part of a growing consensus that the hands-off approach to the economy is broken and we need the Government to step up and support our manufacturing sector and the jobs it provides.

“There are alternatives, and as a country we need to discuss them. This summit is about bringing together the new consensus and we welcome anyone interested in the future of our country to join us in planning a new way forward.”

See: EPMU calls summit to tackle jobs crisis

See: EPMU call urgent meeting to tackle job crisis

Those invited to the Summit include,

  • Russel Norman, Green Party co-leader
  •  David Parker, Labour’s finance spokesperson
  • Winston Peters, NZ First leader
  • Peter Conway, NZ  Council of Trade Unions
  • Nick Inskip, Heavy Engineering Research Association
  • Selwyn Pellett, technology entrepreneur
  • John Walley, NZ Manufacturers & Exporters Association
  • Hugh Whitaker, University of Auckland

This is a good start and is something that the next incoming government should take on board and run with.

But rather than a “talkfest” and propaganda exercise, such as National’s 2009 exercise-in-futility, a real New Zealand Summit should include representatives from all industry groups, Iwi, trade unions, and other community, business, and activist representatives.

A real New Zealand Summit should have firm targets to address, with a committment from a new government to find solutions.

Such a Summit must have, as it’s priorities,

  1. Jobs, jobs, jobs.
  2. Elimination of child poverty
  3. Economic growth with entrenched  environmental conservation

As a society we  need to reappraise our values, our goals, and what sort of nation we want for ourselves and our children.

Do we want to live as a highly individualistic “society” of  minimal taxation; minimal social and state services; a greater degree of user pays; and where those left behind rely on struggling charities to survive? And where jobs and services are left purely for Market Forces to deliver?

Or do we want a more cohesive society where we pay sufficient taxation to deliver comprehensive social and state services; where we do not tolerate child poverty and adopt a collective responsibility to assisting those who need it? And where the State, Business, and Unions work together to deliver jobs; good wages; a productive economy with sensible investment/monetary policies; and where the environment is considered our #1 wealth asset?

We need to ask ourselves ,

  • Why is it acceptable to provide vast amounts of electricity to the Rio Tinto/Tiwai aluminium smelter at vastly subsidised prices – and yet our nation opposes subsidised electricity to New Zealand families and retirees?
  • Why is it acceptable to give the movie industry a $100 million tax break to produce fantasy films here – whilst at the same time objecting to a $4-$20 million dollar programme to provide healthy meals in schools for our children who face the harsh reality of poverty?
  • Why is it suddenly necessary that we need overseas investment and foreign “expertise” in our farms – when we lead the world in dairying and agriculture? Why are New Zealanders investing in housing speculation – forcing farmers and businesspeople tro look overseas for investment?
  • How is it we can produce the cleanest, safest food in hygenically maintained factories – and yet we foul our riverways and lakes to the point where many are no longer safe to swim in?
  • Where is the logic of allowing our Dollar to be speculated on by overseas money traders; investment bankers; and outright crooks – and it’s our workers who have to pay the price by losing their jobs when our exporters are no longer able to sell their goods overseas?
  • Why do we have a crisis in housing in this country, and then to top it off, our skilled tradesmen and women head off to Australia?
  • Why are our young folk not in education, employment, or training – with rising joblessness and hopelessness – and then 1 million of us vote for a government that has no solution except to use sanctions to take away what little money they have? And then we wonder where crime, poverty, and lack of hope springs from?

These are a few critical problems (I refuse to call them “issues”) , and it is high time we addressed them instead of opting for soft-options such as unaffordable tax cuts and blaming the unemployed for daring to be unemployed.

Being adrift on the vast sea of ‘Market Forces’ and “muddling through” is no longer acceptable.

Electing inept governments that rely more on ideology than common sense will no longer be of any benefit to us.

Personally speaking, if National wants to participate in a new New Zealand Summit, then so be it.

But in my view, I consider them part of the problem, and their ideology of more-of-the-same is simply a waste of time and energy.

National is part of an unfortunate economic experiment in market liberalism and raw Individualism. They are as much a failure in outcomes as was the great marxist-leninist experiment in the former-USSR.

It took our Russian cuzzies 72 years to realise that their grand experiment in State collectivism was unworkable and failing.

Let’s hope we can make that same determination in only half the time, when it comes to neo-liberal capitalism.

I applaud the EPMU for taking the first steps in beginning a conversation that is long over-due, and which we can no longer avoid.

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“More exports, more real jobs” – Really?

1 November 2011 2 comments

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Another of National’s public “mission statements” on their billboards promises, “More exports, more real jobs”,

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However, National past policies in cutting training programmes has seen an increase in youth unemployment from 25,000 to 58,000.

National’s Grand Plan, at it’s recent Conference was simply to introduce a “bene card” and pay beneficiaries’ living costs directly.

The only problem is;

A) A “bene card” to stop 16 and 17 year olds from buying booze and tobacco is kinda pointless when it’s already illegal for retailers to sell these products to 16 and 17 year olds.

B) WINZ already has the option to pay rent, power, and phone directly for beneficiaries.

Of course, one also has to wonder if this is as good as it gets under National – a “bene card”?!

This is a far cry from National’s bold election statements in 2008,

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

  • We will focus on lifting medium-term economic performance and managing taxpayers’ money effectively.
  • We will be unrelenting in our quest to lift our economic growth rate and raise wage rates.
  • We will cut taxes, not just in election year, but in a regular programme of ongoing tax cuts.
  • We will invest in the infrastructure this country needs for productivity growth.
  • We will be more careful with how we spend the cash in the public purse, monitoring not just the quantity but also the quality of government spending.
  • We will concentrate on equipping young New Zealanders with the education they need for a 21st century global economy.
  • We will reduce the burden of compliance and bureaucracy, and we will say goodbye to the blind ideology that locks the private sector out of too many parts of our economy.
  • And we will do all of this while improving the public services that Kiwis have a right to expect.  Source

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Instead of “concentrating on equipping young New Zealanders with the education they need for a 21st century global economy“, National has cut the Training Incentive Allowance and $146 million from skills training,

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Even their much vaunted cycleway has not produced the 4,000 jobs that were anticipated,

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Source

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It is little wonder then, that even “Business NZ” – this country’s employer group and traditionally allied to the National Party –  has voiced serious concerns about National’s ability to lead this country and questions whether it has any long-term economic policy,

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Full Story

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Deloitte New Zealand’s chief executive Murray Jack stated with brutal candour,

Despite the prime minister saying this morning he has confidence in his party’s plan, a lot of people in this room are not sure there is one.”

When National’s own allies voice doubts that National has any coherent plan – then it is time to get worried. Very, very worried. Rod Oram also voices his doubts.

It is time for New Zealanders to consider: does National have plan for economic growth; increase wages; and reduce unemployment?

Or is it sitting back and replying on the “free market” to achieve it’s lofty-sounding goals and promises? Is National relying on a “roap map” – or a “wish list”?

Labour may not be perfect, but they are sounding a whole lot more cohent than their rivals.

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Well, it looks like the unemployment rates are not “co-operating” with National’s stated intentions,

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Additional:

Wages, salaries up 2% – but inflation’s up 4.6%

Radio NZ: Rod Oram, economist & business commentator

Wellington economy flat lining

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