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Posts Tagged ‘Finance Minister Bill English’

The Mendacities of Mr Key # 19: Tax Cuts Galore! Money Scramble!

2 December 2016 2 comments

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In troubled times, we are community

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On 14 October, eight hours after two massive 7.8 earthquakes simultaneously rocked the entire country, our Dear Leader John Key made an impassioned (for him, it was impassioned) appeal to the people of Aotearoa on Radio NZ’s ‘Morning Report‘;

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The one thing I’d we’d just say to New Zealanders at the moment is stay close to your family and friends. Make sure you listen to the radio and listen to the best information that you’re getting. And if you do have certainly older neighbours or family, if you could go in and check up on them that would be most appreciated. Because there will be people feeling genuinely alone.“

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It was  an appeal to a sense of community that is rarely made by right-wing governments or their leaders. It was a tacit acknowledgement that No Man or Woman is an Island that that only by acting collectively can human beings survive  and improve their own circumstances and for their children.

Unfortunately, a week later, Key’s sense-of-community-spirit  was returned to it’s hermetically-sealed casket and re-buried alongside cryo-capsules containing New Zealand’s Once-Egalitarian-Spirit and International-Independent-Leadership-On-Moral Issues.

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National dangles the “carrot”

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On 21 November, Key announced that tax cuts were once again “on the table” and Little Leader/Finance Minister, Bill English confirmed it.

With a statement that was more convoluted than usual, Key said;

“We’ve identified from our own perspective if there was more money where would be the kinds of areas we want to go, not what is the make up … for instance, of a tax or family package, what is the make up of other expenditure we want?

Tax is one vehicle for doing that, it’s not always the most effective vehicle for doing that for particularly low income families.”

Tax could be effective higher up the income scale, but lower down it was not that effective because base rates were low or it was very expensive.

Over the fullness of time we’ll have to see whether we’ve got much capacity to move.

Making sure they can keep a little more of what they earn or get a little bit more back through a variety of mechanisms is always something we can consider. It could be a mix, yes.

In the end it’s about equity for New Zealanders and about .. having a rise in their standard of living, and there’s a number of ways you could deliver that.”

Key has once again dangled a billion-dollar carrot in front of New Zealanders as the country heads towards next year’s election.

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National’s previous election “carrots”

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During the 2008 General Election,  as the Global Financial Crisis was impacting on our own economy, Key was promising tax cuts. In May 2008, he said;

“But in 2005 we promised tax cuts which ranged from about $10 to $92 a week, roughly $45 a week for someone on $50,000 a year.

“I described it as a credible programme of personal tax cuts and I’m committed to a credible programme of personal tax cuts,” he said.

Questioned on whether National’s tax cuts programme of 2005 was credible today given the different economic circumstances, Mr Key said: “Well, I think it is.”

At the time, then Labour’s Finance Minister, Michael Cullen  described National’s tax-cut-bribe as ‘reckless‘.

By October 2008, as NZ Inc’s economic circumstances deteriorated, Treasury issued dire warnings that should have mitigated against any notions of affordable tax-cuts;

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.

Key’s government won the 2008 election and proceeded with tax-cuts in 2009 and 2010.

Predictably, government debt – which had been paid down by the Clark-Cullen government – ballooned as the recession hit New Zealand’s economy and tax revenue fell;

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National government debt - tax cuts

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Key himself estimated tax cuts to be worth between $3  or $4 billion.

In 2008, New Zealand’s core government debt stood at nil (net)

Current government debt now stands at $62.272 billion (net).

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Nature intervenes in National’s “cunning plan” for a Fourth Term

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According to Dear Leader Key, estimates for the re-build of earthquake damage in and around Kaikoura; State Highway One, and the rest of the South Island  is likely to be at least “a couple of billion dollars“.

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 The repair bill from Monday's earthquake near Hanmer Springs is estimated to be billions of dollars. Photo: RNZ / Rebekah Parsons-King

The repair bill from Monday’s earthquake near Hanmer Springs is estimated to be billions of dollars. Photo: RNZ / Rebekah Parsons-King

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Finance Minister Bill English has hinted the cost may be much more;

“The combination of significant infrastructure damage in Wellington, obvious damage in Kaikoura – all roading and rail issues – this is going to add up to something fairly significant. We also know that those estimates change over time.”

No wonder Labour leader Andrew Little was less than impressed at tax cuts being mooted. Echoing Michael Cullen from eight years ago, he condemned the irresponsible nature of Key’s proposal;

“Well this is crazy stuff, I mean in addition to a government having $63 billion worth of debt it is yet to start repaying, and you’ve got a billion dollars extra each year just in the cost of superannuation.

Now we have another major civic disaster that is going to cost in terms of repairs. I do not see how John Key can say tax cuts are justified in the present circumstances.”

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National spends-up large on new prison beds

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On top of which, English announced last month that National was planning to spend over $2.5 billion on new prison beds. He questioned whether tax cuts were affordable with such looming expenditure;

Finance Minister Bill English has warned an announcement today of plans for an extra 1,800 prison beds will reduce the room for the Government to consider tax cuts before next year’s election.

English told reporters in Parliament the extra beds would cost NZ$1 billion to build and an extra NZ$1.5 billion to run over the next five or six years.

“It will have an impact because it is a very large spend and, two or three years years ago, we probably thought this could be avoidable,” English said when asked if the extra spending would make it harder for the Government to unveil tax cuts and other spending before the next election.

“It’s all part of this rachetting up of tougher sentences, tighter remand conditions, less bail and taking less risk with people who commit serious offenses,” he added.

Asked if that meant there would be less room for tax cuts, he said: “I wouldn’t want to judge that because it is a bit early, but certainly spending this kind of money on prison capacity is going to reduce other options.”

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The inevitable cost of tax-cuts

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As billions more is wasted on prisons, money spent on health, education, housing, and other social services is being frozen; cut back, or not keeping pace with inflation.

This has resulted in appalling cuts to services such as recently experienced by  96-year-old Horowhenua woman, Trixie Cottingham;

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Other social services have also been wound back – as previously reported by this blogger;

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Cuts to the Health budget have resulted in wholly predictable – and preventable – negative outcomes;

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A critic of National’s under-funding of the health system, Phil Bagshaw, pointed out the covert agenda behind the cuts;

New Zealand’s health budget has been declining for almost a decade and could signal health reforms akin to the sweeping changes of the 1990s, new research claims.

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The accumulated “very conservative” shortfall over the five years to 2014-15 was estimated at $800 million, but could be double that, Canterbury Charity Hospital founder and editorial co-author Phil Bagshaw said.

Bagshaw believed the Government was moving away from publicly-funded healthcare, and beginning to favour a model that meant everyone had to pay for their own.

“It’s very dangerous. If this continues we will slide into an American-style healthcare system.”

As the public healthcare system faces reduction in funding – more and New Zealanders will be forced into taking up  health insurance. In effect, National is covertly shifting the cost of healthcare from public to private,  funding the public/private ‘switch’ through personal tax-cuts.

Tax dollars have previously been allocated to social services such as Education or Health. By implementing tax cuts, those “Health Dollars” become “Discretionary Dollars”; Public Services for Citizens becomes Private Choice for Consumers.

And we all know how “well” that model has worked out in the United States;

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(Yet another) Broken promise by Key

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But equally important is that, in promising to spend the government surplus on tax-cuts, Dear Leader Key has broken yet another of his promises to the people of New Zealand.

In July 2009, National suspended all contribution to the NZ Superannuation Fund. At the time  Bill English explained;

“The Government is committed to maintaining National Superannuation entitlements at 66 per cent of the average wage, to be paid from age 65.

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The suspension of automatic contributions will remain until there are budget surpluses sufficient to fund contributions. Under current projections, the Government is not expected to have sufficient surpluses for the next 11 years.

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Once surpluses sufficient to cover automatic contributions return, the Government intends to contribute the amount required by the Fund formula.”

In 2010, English said;

“We’re managing government spending carefully, the economy is improving a bit faster than we expected, and that means it’s six years instead of 10 years until we start making contributions to the fund. If the economy picks up a bit faster again, we’ll get to that point sooner.”

In 2011, John Key said;

“Once we’re back to running healthy surpluses, we’ll be able to auto-enrol workers who are not members of KiwiSaver, pay down debt and resume contributions to the Super Fund.”

In 2012, English said;

“The Government’s target is to return to surplus by 2014-15 so that we will then have choices about repaying debt, resuming contributions to the New Zealand Superannuation Fund, or targeting more investment in priority public services.”

In 2013, English said;

“It remains our intention that contributions will resume once net debt has reduced to 20 percent of GDP, which is forecast for 2020.”

In 2014, English told Patrick Gower;

“… In this Budget we will have a paper-thin surplus , I mean we’ll just have a surplus but that’s the beginning of a series of surpluses and that means we have choices. And there’s a lot of choices. We’ve got the New Zealand Super Fund to resume contributions, an auto-enrolment for KiwiSaver, paying off debt more quickly, something for households to help them along. Those are choices that New Zealand fortunately will have if we have a growing economy and we stick to being pretty careful about our spending.”

In 2015, Key and English issued a joint  statement saying;

“Through Budget 2015, the National-led Government will…

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Reduce government debt to less than 20 per cent of GDP by 2020/21 when we can resume contributions to the NZ Super Fund.”

In October this year, English said;

“There has not been any broken commitment regarding the Superannuation Fund. We have said for some time that when the Government returns to a sufficient budget surplus and can contribute genuine savings rather than borrowing, National will resume contributions to the New Zealand Superannuation Fund. The straightforward issue is that even when the Government shows surpluses under the operating balance before gains and losses measure, it does not always have cash surpluses until those accounting surpluses get reasonably big.

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I remember that Sunday in 2009 in vivid detail, in fact, and constantly go back to it. The Government has outlined its position many, many times since 2009, and when there are sufficient surpluses and when we have debt down to the levels we think are prudent, which is 20 percent of GDP by 2020, then we will resume contributions, which we would like to do.”

In every year since National ceased contributing to the NZ Super (“Cullen”) Fund, both Key and English have reiterated their committment to resume payments when government books returned to surplus.

By hinting at tax cuts instead, Key and English have broken their promises, made over a seven year period.

Even their “qualifyer” of resuming contributions “when we have debt down to the levels we think are prudent, which is 20 percent of GDP by 2020” becomes untenable with their hints of an election-year tax-cut bribe.

By cutting taxes instead of paying down debt, resuming contributions to the NZ Super Fund is pushed further out into the dim, distant future.

The very suggestion of tax cuts is another potential broken promise.  What’s one more to add to his growing list of promises not kept?

After all, there is an election to be fought next year.

Since National has not thought twice at under-funding the Health Budget, it certainly does not seem troubled at using tax-cuts as an election bribe, and undermining this country’s future superannuation savings-fund for selfish political gain.

Muldoon did it in 1973 – and got away with it.

Carrot, anyone?

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References

Radio NZ: Morning Report – John Key urges New Zealanders to look out for their neighbours

Radio NZ: Morning Report – Key not ruling out tax cuts despite billion-dollar Kaikoura bill

Radio NZ: Morning Report – Government not ruling out tax cuts despite $1B Kaikoura bill

Fairfax media: John Key reveals plans for ‘tax and family’ package, but quake might affect plans

NZ Herald: National’s 2005 tax cut plans still credible – Key

Beehive: National ignores inflation warning

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

NZ Treasury:  Financial Statements of the Government of New Zealand for the Year Ended 30 June 2010 – Debt

Fairfax media: $4b in tax cuts coming

NZ Treasury: Fiscal Indicator Analysis – Debt  as at 30 June 2008

NZ Treasury:  Financial Statements of the Government of New Zealand for the Year Ended 30 June 2016

Radio NZ: Earthquake’s billion-dollar bill won’t compare with Chch

Radio NZ: PM ‘irresponsible’ to talk tax cuts after quake – Labour

Interest.co.nz: English says NZ$1 bln capital cost and NZ$1.5 bln of operating costs for extra 1,800 prison beds reduces room for tax cuts

Radio NZ: Checkpoint – DHB threatens to cut off 96-year-old’s home help in Levin

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

Radio NZ: Patients have ‘severe loss of vision’ in long wait for treatment

Fairfax media: Researchers claim NZ health budget declining, publicly-funded surgery on way out

Radio NZ: Patients suffering because of surgery waits – surgeon

Fairfax media: 174,000 Kiwis left off surgery waiting lists, with Cantabrians and Aucklanders faring worst

Fortune: How the U.S. Health Care System Fails Its Sickest Patients

NZ Super Fund: Contributions Suspension

Beehive: New Zealand Super Fund – fact sheet

Fairfax media: English signals earlier return to Super Fund payments

Scoop media: John Key’s Speech to Business New Zealand Amora Hotel Wgtn

Parliament Today: Questions and Answers – November 7

TV3 News: $23 billion in NZ Super Fund

Throng: Patrick Gower interviews Finance Minister Bill English on The Nation

Beehive: Budget 2015

Scoop: Hansards – Questions and Answers – 18 October 2016

Fairfax media: Compulsory super ‘would be worth $278 billion’

Additional

The Standard: The great big list of John Key’s big fat lies (UPDATED)

Other Blogs

The Standard: The eternal tax-cut mirage

Previous related blogposts

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

Tax cuts & school children

The Mendacities of Mr Key #3: tax cuts

The consequences of tax-cuts – worker exploitation?

Plunket and the slow strangulation of community organisations

The cupboard is bare, says Dear Leader

An earthquake separates John Key and ‘The Iron Lady’, Margaret Thatcher

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This blogpost was first published on The Daily Blog on 27 Novembr 2016.

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National’s Wellington Mayoral candidate, Jo Coughlan – four lanes to nowhere

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jo coughlan - election billboards - four lane highway (2)

Wellington mayoral candidate, Jo Coughlan, standing in front of one of her election billboards.

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Right-wing mayoral candidate, and current Wellington City Councillor, Jo Coughlan, has ducked answering questions relating to her campaign policy advocating for a four-lane motorway from Transmission Gully to Wellington airport.

Coughlan has been a city councillor since 2007, as well as Director for PR firm, Silvereye Communications. Amongst her PR company’s clients are the Ministry for Education, Energy Efficiency Conservation Authority (EECA), Department of Building and Housing, NZ Post, and ACC.

As well as a Director to Silvereye Communications, Coughlan is (was?) a Director of Life Flight Trust – which also happens to be a client of the same PR company.

From 1996 to 1999, she was  Press Secretary  for then-Foreign Affairs Minister, Don McKinnon.

Coughlan is also wife to Conor English, brother to current Finance Minister, Bill English.

On 2 April this year, Coughlan announced her intentions to run for the Wellington mayoralty. She also declared her support for a four land highway to Wellington’s international airport, located in the eastern suburns;

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jo coughlan - election billboards - four lane highway

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“We need to double-tunnel the Terrace and Mt Victoria tunnels and see four lanes along Ruahine St to the airport. Wellington’s mayor must lead on this, and that is my commitment.” – Jo Coughlan, 2 April 2016

Coughlan’s election pamphlet, “My Road Map for Wellington’s future“, reiterated her desire to expand Wellington’s roading system;

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jo coughlan - election pamphlet (2)

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Coughlan linked expanding the roading network with electric cars, even though currently there are only about 150 of the vehicles in the region.

In the same pamphlet, Coughlan also conflated building more roads with making “public transport more reliable”;

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jo coughlan - election pamphlet (3)

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There is no other  mention of public transport, except  in relation to “fixing our roads“, in any of  Coughlan’s other election material (seen by this blogger). Her website also makes only a brief reference to “public transport options”.

On 25 July, this blogger contacted Coughlan through Facebook, asking if she would be available to answer questions on her policy.

Coughlan replied the same day and in an email said;

“Happy to discuss.

The four laning can be achieved by four laning Ruahine St as planned by NZTA.

That way you essentially get (Inc the one way systems ) four lanes  to the planes.”

Since initial contact, Coughlan’s “happy to discuss” response has been met with evasiveness to pin down and arrange a time for a series of questions to be put to her. Requests for a set time to put eleven questions, plus follow-ups, have been ducked. (Which raises questions about her role in  the communications industry.)

The questions which merited answers were;

Q1: In your pamphlet, “My Road Map for Wellington’s future”, you linked building of more roads to public transport stating, “Fix our roads to make public transport more reliable”? What did you mean by “fix our roads”? How does that relate to public transport?

It is well known that building more roads attracts more cars. In one year alone, 43,000 more cars have been added to Auckland’s congested roads;

There are 43,000 more cars on Auckland’s roads than this time last year, with nearly 11,000 of those vehicles registered in January alone.

It’s no wonder the city’s traffic congestion has worsened over that time, national roading authority New Zealand Transport Agency (NZTA) says.

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An average 168,500 vehicles now cross the Harbour Bridge every day, compared with 17,000 in 1960 shortly after it opened.

“You’re reaching a point where you can’t add any more traffic to the Harbour Bridge,” Pant said.

It is unclear how more roads would “make public transport more reliable“.

Ms Coughlan might have shed some light on this unanswered question.

Q2: In pamphlet, you stated, “We need roads that keep us moving. Electric cars need roads”? What do you say to those who say it is disingenuous to link environmentally-clean electric cars with the building of more roads?

With only 150 electric vehicles in Wellington, there seemed no apparent need to build more roads at a cost of billions, for such a small, insignificant number of alternative-fuel cars.

The possibility exists that Ms Coughlan was being willfully disingenuous, and attempting to “green wash” an environmentally unfriendly policy.Was that Coughlan’s intention?

Ms Coughlan might have shed some light on this unanswered question.

Q3: Along with your advocating for a four-lane motorway from Transmission Gully to the airport, you’ve stated you want to “work with Government to accelerate building of the city’s infrastructure and roading to keep the city moving”. Bearing in mind that the planet’s temperature continues to rise according to latest data from NASA and the US National Oceanic and Atmospheric Administration (NOAA), and also bearing in mind that fossil fuels like oil and petrol are prime producers of greenhouse gases, isn’t a four-lane motorway of the kind you are suggesting irresponsible?

Coughlan attempted to mitigate her support for building more roads by stating on her election “pledge” card that she would “protect the greenbelt and natural environment”;

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jo coughlan - election card (2)

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However, nowhere in her election material does Coughlan refer to the effects of climate change on our natural environment.

Ms Coughlan might have shed some light on this unanswered question.

Expanding on the previous question, I wanted to put to Coughlan the following;

Q4: Are you aware of NASA’s latest findings that ” the six-month period from January to June was also the planet’s warmest half-year on record, with an average temperature 1.°C warmer than the late nineteenth century”; that “Arctic sea ice at the peak of the summer melt season now typically covers 40% less area than it did in the late 1970s and early 1980s” and that “Arctic sea ice extent in September, the seasonal low point in the annual cycle, has been declining at a rate of 13.4% per decade”?

Q5: Are you aware that the NOAA recently confirmed NASA’s data, stating, “The average global temperature across land surfaces was 2.33°C above the 20th century average of 3.2°C, the highest March temperature on record, surpassing the previous March record set in 2008 by 0.43°C and surpassing the all-time single-month record set last month by 0.02°C”?
More specifically, the NOAA reported that “New Zealand reported its sixth warmest March in a period of record that dates to 1909, at 1.3°C above the 1981–2010 average. The entire country had above or well-above average temperatures for the month. Parts of Northland, Waikato, Manawatu-Whanganui, and Westland were each more than 2.0°C above their March average”. What is your comment on those latest findings?

New Zealand is not immune to climate change effects as mentioned in this CNN report;

The first six months of 2016 were the hottest ever recorded, NASA announced on Tuesday, while Arctic sea ice now covers 40% less of the Earth than it did just 30 years ago.

Temperatures were on average 1.3 degrees Celsius (2.4 degrees Fahrenheit) higher than average between January and June this year, compared to the late nineteenth century.
In total, the planet has now had 14 consecutive months of the hottest temperatures seen since records began in 1880, the U.S. National Oceanic and Atmospheric Administration (NOAA) said.
Australia, the United Kingdom, Hong Kong and Spain were some examples of places where temperatures soared more than a degree above average, as New Zealand had its hottest January to June period since records began.

The CNN report was based on the NOAA/NIWA findings, referring to New Zealand;

New Zealand reported its sixth warmest March in a period of record that dates to 1909, at 1.3°C (2.3°F) above the 1981–2010 average. The entire country had above or well-above average temperatures for the month. Parts of Northland, Waikato, Manawatu-Whanganui, and Westland were each more than 2.0°C (3.6°F) above their March average.

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NASA sees temperatures rise and sea ice shrink

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Was Coughlan aware of this latest information? She should be: it has been well document in recent local media.

Ms Coughlan might have shed some light on these unanswered questions.

The next question  underscored the critical impact  of climate change on our country,

Q6: To underline the effects of climate-change on our country, the Royal Society said in April this year,

“Changes expected to impact New Zealand include at least 30cm and possibly more than one metre of sea-level rise this century – the report finds it likely that the sea level rise around New Zealand will exceed the global average, which will cause coastal erosion and flooding, especially when combined with storm surges.

Professor James Renwick, Chair of the Expert Panel who wrote the report, warned; “Many New Zealanders live on the coast and two-thirds of us live in flood-prone areas so we are vulnerable to these projected changes.”
Professor Renwick warned that even small changes in average conditions can be associated with large changes in the frequency of extreme events, pointing out;

“With a 30cm rise in sea level, the current ‘1 in 100 year’ extreme sea event would be expected to occur once every year or so in many coastal regions. Along the Otago coast for example, the difference between a 2-year and 100-year storm surge is about 32cm of sea level.”

Ms Coughlan might have shed some light on this unanswered question.

I then wanted to put a seemingly obvious question to Coughlan;

Q7: Instead of building more roads that inevitably lead to more traffic; more congestion; more fuel-consumption; and production of more greenhouse gases, wouldn’t advocating for more expenditure on public transport make better sense, from an environmental aspect?

Ms Coughlan might have shed some light on this unanswered question.

I also planned to ask Coughlan about a glaring omission from any of her election material;

Q8: Aside from your one statement linking “Fix our roads to make public transport more reliable” your election material makes no mention or reference to public transport. Why is that?

Ms Coughlan might have shed some light on this unanswered question.

Coughlan put great weight on Wellington’s needs for the next one hundred years;

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jo coughlan - election pamphlet (1)

jo coughlan - election card (2)

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One has to admire Coughlan’s confidence in being a mayor for the next one hundred years.

Looking ahead for the next century is something that environmentalists and climate scientists are doing. The long-term effects of climate change on our planet are slowly building;

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scientific american - Earth Will Cross the Climate Danger Threshold by 2036

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Which raises the key question as to where Coughlan’s long-term priorities lay;

Q9: Which is more pressing for Wellington’s needs for the next 100 years; taking action to reduce greenhouse gas emissions, or planning on more roading? Which would have greater priority fror you, if you were Mayor?

Ms Coughlan might have shed some light on this unanswered question.

The last two questions were also self-explanatory;

Q10: President Obama has said that “And no challenge — no challenge — poses a greater threat to future generations than climate change”. What is the responsibility of individuals to address this threat to our future?

Q11: What is your responsibility in this, Ms Coughlan?

Ms Coughlan might have shed some light on these unanswered questions.

It could be said that Ms Coughlan, as one person, has minimal effect on our increasingly violent weather patterns and rising sea-levels,  brought on by anthropogenic-induced global warming.

Throughout history, single people have been the instigators of momentous change and upheaval. Not always for good.

If Jo Coughlan were to become mayor – a distinct possibility based on the considerable amount of money spent on her election advertising – her plans to advocate for a four lane motorway would be instigating momentous change and consequential upheaval.

Ms Coughlan might have shed some light on these unanswered questions.

Coughlan’s evasiveness makes a mockery of her finger-pointing at other mayoral candidates. On 28 July Coughlan issued a press release accusing them of “hidden agendas”;

“However it is amazing that some candidates are not prepared to state clearly their real intention for standing and don’t seem to understand the STV voting system used in the Capital.

I am making it very clear that I am standing for the Mayoralty, not as a ward councillor and not to raise my profile for a tilt at parliament. I call on all other candidates to publicly state their real intentions.

So far we have a number of candidates standing with various agendas including increasing their chances of re-election to Council, election to parliament and even to gain profile to look at establishing a new centre-left political party.

Wellington voters deserve a Mayor who will lead the City and is 100% committed to running for the right reasons.

The other candidates need to come clean otherwise their intentions might seem a bit ‘murky’.”

A month earlier, Finance Minister Bill English, endorsed Jo Coughlan for her mayoralty bid;

“It’s because I think that she’s the best candidate for a city that needs this kind of candidate; someone who understands growth; someone who understands communities and someone who understands families.” – Bill English, 28 June 2016

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bill english - jo coughlan

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“Hidden agendas”?

No wonder Coughlan has avoided answering questions.

 

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References

Wellington City Council: Jo Coughlan

Linked-In: Jo Coughlan

Silvereye Communication: About Us

Silvereye Communication:  Silvereye Communications Clients (current and former)

NZ Herald:  Being English

Dominion Post: Councillor Jo Coughlan enters the race to be Wellington’s mayor

Scoop media: Three days of free rides in electric cars

Jo for Mayor: Environment

Fairfax media: 43,000 more cars on Auckland’s roads leads to increased congestion

US National Oceanic and Atmospheric Administration (NOAA):  Global Analysis – March 2016

NASA: 2016 Climate Trends Continue to Break Records

CNN:  NASA – Hottest June on record continues 14-month global heat wave

NIWA: Climate Summary for March 2016

Royal Society of New Zealand: New Zealand vulnerable to the threats of climate change – report finds

Scientific American: Earth Will Cross the Climate Danger Threshold by 2036

The White House: Remarks by the President in State of the Union Address | January 20, 2015

Scoop media: Coughlan says ‘I can win,’ accuses other candidates of hidden agendas

Jo for Mayor: Mayoral Candidate Jo Coughlan – candidates should come clean

Politik: English breaks with National Party convention and endorses Mayoral candidate

Previous related blogposts

John Key – more pledges, more broken promises?

As predicted: National abandons climate-change responsibilities

National ditches environmental policies

ETS – National continues to fart around

National – what else can possibly go wrong?!

National’s moving goalposts on climate change targets

Climate Change Minister Paula Bennett revealed

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This blogpost was first published on The Daily Blog on 31 July 2016.

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The Mendacities of Mr English – Fibbing from Finance Minister confirmed

12 June 2016 7 comments

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Budget-2016

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In a Budget-related piece dated 26 May, Bernard Hickey wrote;

“As largely foreshadowed, English increased the Government’s spending allowance in Budget 2016 for the 2016/17 year to NZ$1.6 billion from NZ$1.0 billion to accommodate extra spending on health and education because of population growth, and includes money spent up front on child welfare reforms.”

Hickey’s suggestion that “English increased the Government’s spending allowance in Budget 2016 for the 2016/17 year to NZ$1.6 billion from NZ$1.0 billion to accommodate extra spending on health and education because of population growth seems at variance with the Finance Minister’s own denial that his Budget was predicated in any way on a per-capita basis.

On 28 May, on TV3’s ‘The Nation‘, Bill English was interviewed by Lisa Owen;

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The nation - lisa owen - Bill english - budget 2016 - homelessness

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English was at pains to reject per-capita calculations as a basis for his Budgetary considerations;

Lisa Owen: “… I just want to be clear on this, because if you look at the figures, let’s say for health, a variety of economists say that we needed about 700 million a year just to keep pace, yet health is getting about 570 million a year. You’ve frozen the schools’ operational budgets, so to be absolutely clear, per capita spending on health and education, it’s down, isn’t it?”

Bill English: “No. Look, I couldn’t say for sure whether it’s up or down. It’s probably about the same. The point I’m making is it’s the wrong measure. The measures that matter are the ones that are about focusing on getting results.”

Lisa Owen: “Shouldn’t you know whether it’s up or down in terms of spending per capita? Because that’s something that our viewers will want to know.”

Bill English:It’s not a measure we apply… Now, per capita, I can’t tell you whether it’s up or down.”

To be fair on Hickey, he wrote his story prior to English’s comments, which were two days later.

At least now we all know that English does not factor-in per-capita data in his Budgetary calculations. He was categorical in his assertion.

No, he obviously uses more precise techniques…

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DICE

 

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Yet, English himself has readily admitted that yes, he does factor in population (aka “per capita”) in his Budgetary considerations;

Strong population growth is both an indicator of New Zealand’s economic performance and a contributor to it,” English told the parliament in his Budget address. “For the first time in a generation, we have a net annual movement of people into New Zealand from Australia, rather than an exodus of Kiwis across the Tasman.”Bill English, 26 May 2016

And,

“Some spending previously earmarked for Budget 2017 has been brought forward, so net new operating spending in Budget 2016 has increased to $1.6 billion per year. This recognises pressures from higher population growth, and opportunities to invest in core public services and economic initiatives.”Bill English, 26 May 2016

And the clincher;

“Spending pressures have changed since the last Budget – in part because higher-than-expected population growth has increased demand for public services… District Health Boards will receive $1.6 billion over four years to invest in services, meet population growth and deliver better results.” Bill English, 26 May 2016

English’s own words reveal that he wilfully misled Lisa Owen on 28 May, on  ‘The Nation‘. Unfortunately, fact-checking politicians who spin untruths is not easy, and requires quick-thinking and an encyclopedic memory.

Only in retrospect can we fact-check politicians’ statements and determine how honest they have been with the public.

As always, eternal vigilance is the duty of all citizens.

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References

Interest.co.nz: Govt sees NZ$0.7 bln OBEGAL surplus in 2016/17

National.org.nz: Govt books show rising surpluses, falling debt  (*1)

Scoop media: On The Nation – Lisa Owen interviews Bill English (transcript)

Beehive.govt.nz: Budget Speech – Bill English

Previous related blogposts

“The Nation” reveals gobsmacking incompetence by Ministers English and Lotu-Iiga

National’s blatant lies on Housing NZ dividends – The truth uncovered!

Letter to the editor – Did Bill English try to pull a swiftie on ‘The Nation’?

Budget 2016 – Who wins; who loses; who pays?

Notes

*1: I have downloaded and retained a copy of the National Party webpage. In the past, National Party webpages tend to “disappear”, and are no longer searchable, making referencing and verification of quotes problematic. If this webpage disappears, English’s comments can still be verified to anyone requesting it. – Frank Macskasy

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Lies - The art of political lying

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This blogpost was first published on The Daily Blog on 6 June 2016.

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= fs =

 

Budget 2016 – Who wins; who loses; who pays?

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Budget-2016

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The point is if we’re going to have a tax programme [of tax cuts] – we’re not ruling that out in for 2017 or campaigning on it for a fourth term. But having probably a bigger one, to be blunt.” – John Key, 16 May 2016

Philosophically we believe in lower taxes and smaller government, and government’s definitely getting smaller.”- John Key, 16 May 2016

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Paula Bennett denies there is a housing crisis in New Zealand;

I certainly wouldn’t call it a crisis. I think that we’ve always had people in need.” – Paula Bennett, 20 May 2016

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Paula Bennett announces plan to offer $5,000 to homeless and state house tenants to leave Auckland and go live in provinces;

I would say to those that are homeless that there is a chance that they could get a house in days if they were willing to look outside of Auckland.” – Paula Bennett, 25 May 2016

.

Very quietly, a cut here and a decrease there, a failure to keep up with inflation in one place, and ignoring increasing population in another place, the Government is walking away from New Zealand’s longstanding social compact.

In his Budget speech, Bill English proudly says that government expenditure is down to less than 30 per cent of GDP, and that’s the way that it’s going to stay.

But how is this retreat from the economy achieved?

It happens by spending less on health and less on education, and not spending enough on housing for the least well off New Zealanders.–  Deborah Russell, 26 May 2016

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While it’s true the overall numbers of Housing NZ homes haven’t risen dramatically, the mix is changing and there are more in Auckland and less in places that we don’t need them.” – John Key, 27 May 2016

 

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Sadly, it seems once again that the Budget is a missed opportunity for children, while the military and Government spy agencies do extremely well. I don’t recall seeing any public opinion polls or evidence indicating the need for more investment in either of these areas, especially when there is such desperate need among families with children.

The Government has achieved its objective of appearing fiscally responsible and not much else. But through a lack of planning and an apparent lack of caring children are living in garages or cars, and do not have the nutrition or warm clothing that they need. Kiwi kids have a right to better lives than that.” – Vivien Maidaborn, New Zealand Executive Director, Unicef, 29 May 2016

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We would like to see some tax reductions, particularly for those middle income taxpayers who find themselves getting into higher tax brackets.” – Finance Minister Bill English, 27 May 2016

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There is absolutely zero doubt in my mind that the 2016 Budget is geared 100% toward building up a surplus for tax cuts to be announced next year. Just in time for the 2017 Election. John Key and Bill English have strongly indicated as much with their “kite-flying” with hints of cuts-to-come.

Funding for various state services have either barely increased – or drastically cut. The result has been a $700 million surplus – which appears to have been achieved at the expense of cutting funding for social NGOs and state services for the most vulnerable people in our society.

Some of the winners and losers from this year’s Budget…

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Winner

GCSB and SIS;

Funding for spy agencies (GCSB and SIS) will increase over the next four years by $178.7 million.

Loser

Department of Conservation;

For 2015/16 Budget, allocated $471,932,000

For 2016/17 Budget, allocated $430,190,000

Budget: Cut $41,742,000

Who Pays?

Endangered species throughout New Zealand and future generations of New Zealanders.

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Winner

Prime Minister’s Department;

For 2015/16 Budget, allocated $65,710,000

For 2016/17 Budget, allocated $77,442,000

Budget: Increase $11,732,000

Loser

Radio NZ;

For 2015/16 Budget, allocated $31,816,000

For 2016/17 Budget, allocated $31,816,000 (Based on zero change to NZ on Air funding; $128,726,000.)

Budget: frozen – nil increase since 2008/09.

Note, based on the Reserve Bank Inflation Calculator, Radio NZ’s funding should be around $36,570,000 and it’s funding freeze by National constitutes a 14.9% under-funding;

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reserve bank inflation calculator - radio nz funding

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Who Pays?

We all do.

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Winner

Education – Charter Schools;

Funding for up to seven new charter schools will be provided in the 2016 Budget, the Government has announced. – NZ Herald

$328.9m of capital funding and $20.2m of operating funding would go towards public private partnerships (PPPs) for seven new schools and three rebuilds. – Fairfax media

Loser

Public schools operation grants – frozen;

School operational funding has been frozen in this year’s Budget in favour of targeted funding for [under-achieving, at-risk] 150,000 kids.

[…]

$43.2 million over four years will be provided to those schools with under-achieving students, and it’s expected the money will be used to raise achievement, there’s no accountability attached to the funding.

[…]

The targeted funding works out at about $1.79 per student, per school week – schools won’t even know which students are being targeted as the policy’s designed not to identify them. – Fairfax media

Early Childhood Education subsidy-funding – frozen;

Early childhood education providers got no increase to their government subsidies for the second consecutive year.Radio NZ

Who Pays?

Our children.

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Winner

NZ military –

The Defence Force receives new operating funding of $300.9 million over four years as part of Budget 2016 to support the work it does, Defence Minister Gerry Brownlee says. – Gerry Brownlee, Minister of Defence

Loser

Home Insulation Programme –

National has cut home insulation funding to its lowest ever level in Budget 2016…

[…]

Budget 2016 allocates just $12 million this year for the Warm Up New Zealand programme this year and $4.5 million for the Healthy Homes programme, compared to $23.9 million for Home Insulation last year. – Scoop media/Green Party

Who Pays?

 

  • “low-income tenants, particularly those with high health needs.
  • …young children (newborns to 5-year olds) who are living in cold, damp and unhealthy homes.” – Jonathan Coleman, Simon Bridges

 

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There are three significant stand-outs for this Budget…

1 – This Surplus was achieved at the expense of the poor.

With school operational funding frozen; no increase for early childhood education funding;  a dire crisis of homelessness; State houses being sold of by National; and a critical shortage of housing – it does not take much wit to understand that Bill English’s $700 million Budget surplus was achieved by under-spending in key social areas.

Worse still, National continues to doggedly pursue it’s policy to sell up to eight thousand state houses  by 2017.

Compounding National’s mis-management of the country’s scandalous housing crisis is National’s unrelenting and inhumane demand for dividends from Housing NZ.

This far, National has extracted over half a billion dollars from Housing New Zealand by way of dividends.

Housing NZ dividends under National

HNZ Annual Report 2009-10 – $132 million   (p86)

HNZ Annual Report 2010-11 – $71 million   (p66)

HNZ Annual Report 2011-12 – $68 million   (p57)

HNZ Annual Report 2012-13 – $77 million   (p47)

HNZ Annual Report 2013-14 – $90 million –  (p37)

HNZ Annual Report 2014-15 – $108 million –  (p33)

HNZ Statement of Performance Expectations 2015/16 – $118 million – (p12)

Total: $664 million (over seven years)

The above figures do not include taxes paid by Housing NZ to the National government.

Imagine how many state house could have been built by Housing NZ in the last seven years.

Imagine that every low-income family that needed a warm, dry, home – could have had one by now.

Imagine that instead, National will be demanding another dividend this year from Housing NZ – and will be effectively giving it away by means of tax-cuts to affluent New Zealanders.

2 – Many so-call “increases” are illusory.

When taken over a four year period many of English’s Budget “increases” are actually a cut in expenditure. Just two examples from many;

School  funding for 150,000 under-achieving, at-risk school children, was budgeted at  $43.2 million This sounds good. But that figure is spread not over the 2016/17 period – but  over four years.

Same with the Warm Up New Zealand and Healthy Homes Initiative, touted by Ministers Coleman and  Bridges as;

“…to insulate rental houses occupied by low-income tenants, particularly those with high health needs” and “to reduce preventable illnesses among young children (newborns to 5-year olds) who are living in cold, damp and unhealthy homes”

The media release touted;

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$36m for warmer, healthier homes

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But look further into the detail;

The investment includes:

  • $18 million of operating funding over two years to extend the Warm Up New Zealand programme to insulate rental houses occupied by low-income tenants, particularly those with high health needs.

  • $18 million over four years to expand the Healthy Homes Initiative to reduce preventable illnesses among young children (newborns to 5-year olds) who are living in cold, damp and unhealthy homes.

This is how English created his Budget “surplus” – with cleverly concealed cuts to social programmes that impact on the poorest; most powerless; most desperate people in our society.

And we wonder why entire families are living in garages, cars, and tents?

And we wonder how it came to be that children are dying from mould in damp houses?

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Damp state house played part in toddler's death

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3 – This is an Ideological Budget

Make no mistake – this was an ideological budget with “Neo-Liberal Approved” stamped in big, red letters all over it. It was cold-blooded and remorseless in it’s pursuit of specific objectives;

  • reducing government spending on the poor, by freezing/cutting expenditure on social services
  • increased government spending on security agencies (spy, defence, police), in case the 1981 up-rising is repeated
  • satisfying demands from National’s business, conservative, and anti-welfare constituents
  • to give Bill English a second surplus
  • set the stage for tax cuts to be announced in next years’ budget
  • and offer an electoral bribe to voters in time for the 2017 general election

As is almost always the case, those at the bottom of the socio-economic heap are the ones who pay for National’s ideologically-inspired budget. Sometimes they pay with their lives.

Expect more of the same next year.

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Addendum

Spotted at a Z Service Station in the Hutt Valley; this Charity “voting” box, where customers vote for the charity of their choice. The charity gaining  most tokens wins a $4,000 donation from Z. Of the four, Fostering Kids NZ is ‘miles’ ahead with tokens;

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Manpreet, standinmg beside Coin-Vote Box, at Z Service Station in Hutt Valley

Z staffer, Manpreet, standing beside Coin-Vote Box, at a Service Station in the Hutt Valley

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Note the level of support for Fostering Kids NZ;

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Fostering kids - charity - homelessness - budget 2016 (2)

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It is refreshing to see indications that  New Zealanders are still compassionate to children  from vulnerable, less well-off families. There is still hope for our society, even if people like Key, English, Bennett, Tolley, et al have turned their heads to look the other way.

Acknowledgement: Many thanks to Deborah L for her sharp eye, spotting, photographing, and sending me the above images along with relevant info.

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References

Fairfax media: Prime Minister John Key hints at $3billion tax cuts for next election

Fairfax media: John Key is beating the tax cuts drum for 2017 with bigger surpluses ahead

Radio NZ: No housing crisis in NZ – Paula Bennett

Interest.co.nz: Paula Bennett announces plan to offer $5,000 to homeless Aucklanders and state house tenants to leave Auckland

NZ Herald: Dr Deborah Russell – Budget 2016 – How do we look after all New Zealanders?

Radio NZ: Checkpoint – PM puts onus on Auckland Council to create land supply

Fairfax media: Budget 2016 – A bare-minimum budget for children

Radio NZ: Tax cuts may be on cards – English

NZ Herald: Budget 2016 – $700m surplus this year

Radio NZ: Budget 2016 – SIS and GCSB get extra $178.7 million over four years

Budget 2016: Vote Conservation

Treasury: Budget 2016 – Vote Prime Minister & Cabinet

Budget 2016: Vote Arts, Culture and Heritage

NZ on Air: Radio NZ Funding Decisions 1993-2016

Reserve Bank: Inflation Calculator

Budget 2016: Vote Education

NZ Herald: New charter school funding announced

Fairfax media: Budget 2016 – School property and early childhood the big winners

Radio NZ: Budget promises funding for nine new schools

Treasury: Summary of Initiatives in Budget 2016

Budget 2016: Defence Force receives $301m new funding

Scoop media: Government cuts Warm-Up programme that saves lives

Beehive.co.nz: $36m for warmer, healthier homes

Radio NZ: Thousands of state houses up for sale

Fairfax media: Damp state house played part in toddler’s death

Interest.co.nz: Govt sees NZ$0.7 bln OBEGAL surplus in 2016/17

TV3 The Nation: Interview with Bill English

Additional

NZ Herald: Shamubeel Eaqub – House crisis puts Auckland’s future at risk

Other bloggers

The Daily Blog: Budget 2016 – What Bill English Didn’t Say In His Speech

The Daily Blog: The rules for the old too good for children?

The Standard: The Mother Budget

The Standard: Key’s powerful speech on the urgent housing crisis

The Standard: John Key used to be ambitious about dealing with poverty in New Zealand

The Standard:  Budget 2016 – F for Fail

Previous related blogposts

Tax cuts & school children

Tax cuts and jobs – how are they working out so far, my fellow New Zealanders?

The Mendacities of Mr Key #3: tax cuts

Letter to the Editor – tax cuts bribes? Are we smarter than that?

National spins BS to undermine Labour’s Capital Gains Tax

John Key’s government – death by two cuts

A Message to Radio NZ – English continues fiscal irresponsibility with tax-cut hints

The consequences of tax-cuts – worker exploitation?

The slow starvation of Radio NZ – the final nail in the coffin of the Fourth Estate?

National’s blatant lies on Housing NZ dividends – The truth uncovered

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give the rich tax cuts

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This blogpost was first published on The Daily Blog on 2 June 2016.

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= fs =

Letter to the editor – Did Bill English try to pull a swiftie on ‘The Nation’?

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Frank Macskasy - letters to the editor - Frankly Speaking

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On TV3’s “The Nation“, Lisa Owen asked Finance Minister Bill English if funding for health and education had been cut on a per-capita basis. The response from  English was jaw-dropping;

“…if you look at the figures, let’s say for health, a variety of economists say that we needed about 700 million a year just to keep pace, yet health is getting about 570 million a year. You’ve frozen the schools’ operational budgets, so to be absolutely clear, per capita spending on health and education, it’s down, isn’t it?”

Bill English replied;

“No. Look, I couldn’t say for sure whether it’s up or down. “

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The nation - lisa owen - Bill english - budget 2016 - homelessness

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What?! The Finance Minister was saying to the New Zealand public that he “ couldn’t say for sure whether it’s [per capita spending] up or down“?! So how does he allocate money within the multi-billion dollar budget? By roll of a dice?

It deserved a response…

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from: Frank Macskasy <fmacskasy@gmail.com>
to: NZ Herald <letters@herald.co.nz>
date: Sat, May 28, 2016
subject: Letter to the editor

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The editor
NZ Herald

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On 28 May, Finance Minister Bill English was interviewed on TV3’s “The Nation“. Host Lisa Owen asked English if funding for health and education had been cut on a per-capita basis;

“…if you look at the figures, let’s say for health, a variety of economists say that we needed about 700 million a year just to keep pace, yet health is getting about 570 million a year. You’ve frozen the schools’ operational budgets, so to be absolutely clear, per capita spending on health and education, it’s down, isn’t it?”

English replied,

“No. Look, I couldn’t say for sure whether it’s up or down. “

Which he repeated;

“It’s not a measure we apply… Now, per capita, I can’t tell you whether it’s up or down. “

It beggars belief that a Finance Minister, responsible for a budget of $77.4 billion of taxpayer’s money, appears not to know if per capita spending on health and education is up or down.

This would be akin to mum and dad doing the weekly grocery shopping – and not knowing how many children to buy food for.

It simply is not credible that a Finance Minister would be unaware of such basic information.

So which is it – incompetence or evasion?

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-Frank Macskasy

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[address and phone number supplied]

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References

TV3 The Nation: Interview with Bill English

Fairfax media:  Budget 2016 – $700m needed for health to stand still – CTU

NZ Herald: New Zealand Budget 2016 – At-risk students targeted, operational funding frozen

Budget 2016: Core Crown expenses

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You might be suffering from capitalism

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This blogpost was first published on The Daily Blog on  29 May 2016.

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= fs =

State house sell-off in Tauranga unravelling?

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1949-state-house-in-taita

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State Houses – “Wrong place/wrong size”?

Last year (2015), National confirmed it’s intention to sell-off thousands of state houses to “community groups”;

Hundreds of state houses in Tauranga and Invercargill could be sold to independent providers in the first phase of the Government’s plans.

In January Prime Minister John Key announced that state house reforms would see up to 2000 state homes sold to “community housing providers” this year, as it cuts the number of state houses it owns by 8000 over three years.

Although the Government was marketing the process as “transfer” the houses would be sold to community groups, generally charity based providers. Because the houses would have to be kept as social housing rather than private sales, the houses were expected to be sold at a discount to the market value.

After nationwide consultation, Housing New Zealand Minister Bill English and Social Housing Minister Paula Bennett said that the first sales were likely to take place in Invercargill and Tauranga.

In a blogpost in November last year, I pointed out the oft-repeated phrase used by our esteemed dear Leader and various Ministers;

Various ministers, including our esteemed Dear Leader,  have indicated that up to “a third” of state houses are “in the wrong place or wrong size (or ‘type’).

The “wrong size/wrong place” claim is the argument used by National to advance a major sell-off of Housing NZ properties.

On 1 November, 2014, Social Housing Minister Paula Bennett said on TV3’s ‘The Nation’,

“It’s about being smart in what we’re doing. So you just look at us having the wrong houses, in the wrong place, of the wrong size..”

On 2 December, 2014, the Minister responsible for Housing NZ, Bill English expressed his agreement with the proposition of one third of Housing NZ homes being in the “wrong size/wrong place” ;

“Yes. As recently as just last month Housing New Zealand issued a press release that said: ‘around one third of our housing stock is in the wrong place, wrong configuration or is mismatched with future demand’.

[…]

… in fact, a third of them are the wrong size, in the wrong place, and in poor condition.”

On 28 January this year, John Key announced in his “state of the nation” speech;

 “Around a third of Housing New Zealand properties are in the wrong place, or are the wrong type to meet existing and future demand.”

After lodging an OIA request with relevant Ministers late last year information released under the  Act suggests that National’s oft-repeated claim that around “one third” ( or 22,000)  of  state houses are in the “wrong place and wrong size” was not wholly supported by Housing NZ’s own figures. As I reported last November;

Housing NZ currently  “manages 67,245 homes” (as at 30 June 2015). When Key, and other National ministers refer to “around a third of Housing NZ properties”, simple arithmetic translates that fraction into 22,190 homes being the “wrong size/wrong place” .

[…]

In a response eventually received on  29 October 2015,  information in the form of a  chart -“Stock reconciliation taking into account impaired properties as at 31 January 2013” – was attached;

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minister english oia response 29 october 2015 - HNZ housing stock - wrong place wrong size

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In two columns headed “Right Place, wrong home” and “Wrong Place“, the respective figures add up to 13,560. This constitutes a little over half of the “22,000” that is being bandied about by National.

Like much of National’s “facts”,  the numbers did not stack up.

Which led to the last question I put to the Minister; “If HNZ houses that are in the “wrong place” are sold/given away to community organisations – what will make those houses suddenly become in the “right place”?

Because if it’s in the “wrong place” when owned by Housing NZ – why would it suddenly be in the “right place” owned by someone else?

The Minister’s response was baffling. In his 29 October 2015 letter to me he said;

“The Government has no plans to offer Housing New Zealand properties that have been
identified as being in the ‘wrong place’ to community housing providers. In Tauranga and
Invercargill for example, the areas identified for initial potential transfers of social
housing properties from Housing New Zealand to community housing providers, MSD’s purchasing
intentions anticipate stable demand. Following a transfer, any new provider would receive
both the properties and a contract with MSD to continue to provide social housing.”

[See full text of letter here]

English’s response seemed to cast a distinction between State housing “in the wrong place/size” and properties to be sold/transferred to community organisations.

Yet, his statement above would appear to contradict a statement issued by English and Bennett earlier on 6 May last year, which is explained further below under the heading, “The Great Invercargill and Tauranga Sell-Off”.

See: State houses – “wrong place, wrong size”?

State Houses, “Wrong place/wrong size”? – Up-date

English’s responses to my questions were vague and offered little in the way of specific detail. In a follow-up letter to the Minister, I repeated two of my questions;

I refer you to two questions which you have not answered in my OIA request;

4. Where are they situated that are considered the “wrong place”?

5. How many areas have been designated “wrong places”?

His response arrived too late to be included in my November 2015 blogpost, but is still highly relevant to the growing housing crisis in this country. On 9 December 2015, English said;

“The analysis produced by Housing New Zealand  in 2013 and provided to you with my previous response [see table here – FM] identifies  the number of houses as being in the wrong place on a regional basis. No specific locations have been designated ‘wrong places’ and, based on this analysis, each region has some properties assessed as being in the wrong place. These will generally be in provincial  areas away from the main centres.”

[See full text of letter here]

In none of the Minister’s correspondence was he able to provide specifics as to where State houses were in the “wrong place”. The ‘best’ he could do was list five regions; Auckland East & South; Auckland North West & Central; South Island, Central North Island, and Lower North Island.

Surprisingly, Auckland was deemed to have  8,180 houses  that are supposedly “Right Place, wrong home”  and a further 420 that are in the “Wrong Place” – 8,600 in total.

However, the Minister’s data was contradicted by the 2014/15 Housing NZ Annual Report which confirmed the on-going high demand for housing in Auckland;

“Across the country we also have too many three-
bedroom properties, while demand has grown for smaller
one- or two-bedroom homes or for much bigger homes.
Demand for homes in the Auckland region is high and
more Housing New Zealand homes are needed.” (p22)

English did, however, point out that “these will generally be in provincial  areas away from the main centres“.

Even that has proven to be a mis-leading assertion from the Minister. Tauranga is certainly a “main centre” by most definitions, and the choice of that city would  prove to be embarrassing to National, as the next chapter below showed.

The Great Invercargill and Tauranga Sell-Off

As National began to roll  out it’s sale of State houses, Bill English specifically referred to State houses being sold in  Tauranga and Invercargill. On 6 May last year, Bennett and English released this statement;

“This is another important step to creating a more effective and efficient social housing sector with more housing providers supporting tenants and their needs.” – Housing New Zealand Minister Bill English.

As announced by the Prime Minister in January, the Government’s Social Housing Reform Programme includes plans to transfer 1000 – 2000 HNZC houses to registered CHPs over the next year.

“We’ve gone through a robust process to identify the first areas for potential transactions. Tauranga and Invercargill have been chosen because they have stable demand for social housing, and active community housing providers keen to consider the next steps. Providers in other regions are also interested.” – Social Housing Minister Paula Bennett

The same media statement referenced;

The Social Housing Reform Programme (SHRP) is designed to get more people in need into quality social housing – either through Housing New Zealand Corporation (HNZC) or registered Community Housing Providers (CHPs). The objectives of the Social Housing Reform Programme are to:

  • […]

  • Ensure social housing is the right design and size and is in the right places for people who need it.

English and Bennett continued to exploit the “wrong size/wrong place” spin that National was using to disguise the privatisation of State housing.

Bear in mind English’s statement in his 29 October 2015 letter to me, where he said;

“The Government has no plans to offer Housing New Zealand properties that have been
identified as being in the ‘wrong place’ to community housing providers. In Tauranga and
Invercargill for example, the areas identified for initial potential transfers of social
housing properties from Housing New Zealand to community housing providers, MSD’s purchasing
intentions anticipate stable demand. Following a transfer, any new provider would receive
both the properties and a contract with MSD to continue to provide social housing.”

Obviously the Ministers find it difficult to keep their “story” straight.

In March this year, potential buyers for State houses in Tauranga and Invercargill had been lined up;

Four potential buyers have made the final shortlist to buy over 1400 state houses being sold in Tauranga and Invercargill.

[…]

In Tauranga, Accessible Properties, Hapori Connect Tauranga, and Kaiana Community Housing Partners made the shortlist to take over 1124 properties or tenancies.

However, even as National’s English and Bennett were prepping State houses for sale, the country’s housing crisis began to be reported elsewhere throughout New Zealand.

Tauranga was one of them;

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Housing situation critical - Tauranga principal - radio nz

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Tauranga gripped by housing crisis - sunlive

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Housing crisis hits Tauranga, forcing families into garages and cars - TVNZ TV1 News

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Community leaders, social agencies call for urgency on 'housing crisis' - bay of plenty times

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People living in caravan parks while waiting for a rental - bay of plenty times

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Campsites for emergency housing debate - bay of plenty times

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People resorting to living in camping sites and caravan parks?

Is that what this country has come to after thirty years of neo-liberal “reforms”? To become a South Pacific version of America’s trailer-park “communities”?

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trailer park community USA

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If, by shuffling ownership of State houses from Housing NZ to “community groups”, National believes it will solve our housing crisis and growing homelessness – they are far more out of touch than I ever thought possible.

This is not just a stubborn pursuit of a free market dogma that has failed to meet basic social needs – this is pseudo-religious self-delusional behaviour from our elected representatives. English, Key, Bennett, Smith, et al, appear to be paralysed into inaction, like possums caught in the headlights of an approaching truck.

Nowhere is this better illustrated than Social Housing Minister Paula Bennett floundering around like a beached cetacean. She first denied that a housing crisis existed in New  Zealand on 20 May;

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No housing crisis in NZ - Paula Bennett - radio nz

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Five days later, she was willing to bribe homeless and State housing tenants up to $5,000 to quit Auckland, making  a sudden announcement that caught Finance Minister Bill English off-guard;

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Paula Bennett announces plan to offer $5,000 to homeless Aucklanders and state house tenants to leave Auckland

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I have said it before and will repeat my conclusions that National is incapable of resolving this crisis. Considerable State intervention is required, and that is anathema to a political party whose very DNA is based on the free market; reducing State involvement in commercial and social activities; and promoting private good over community benefit.

It will take a collective anger from New Zealanders to take notice of what is happening in their own society. At the moment, so many New Zealanders seem insulated from the  growing social problems that are worsening with each passing day.

As Shamubeel Eaqub said on Radio NZ’s Checkpoint, on 26 May, there is an absence of empathy amongst many New Zealanders – a moral-disconnect with the poor; the homeless; those who have been left behind after thirty years of failed neo-liberal theory.

Remarkably, Eaqub invoked the name of Michael Savage, when New Zealanders were capable of building and solving social ills. For an economist,  Eaqub has deep insight where we have arrived in the year 2016;

The only thing that’s missing now is aspiration and leadership,” he said.

Perhaps our economist friend has nailed the problem perfectly; 21st century New Zealand is not just suffering from economic poverty. There is a poverty much, much worse.

A poverty of spirit.

And that affects us all, regardless of wealth and income.

 

 

 

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References

Fairfax media: Invercargill and Tauranga chosen for first state house sales

TV3: The Nation – Social Housing Minister Paula Bennett

Parliament: 6. State Housing—Suitability of Housing Stock

Fairfax media: John Key Speech – Next steps in social housing

Letter from Bill English, 9 December 2015

Housing NZ: 2014/15 Annual Report

Beehive.govt.nz: Next steps in social housing reform announced

Fairfax media: Invercargill state houses may survive sell-off as Government reveals short-list

Radio NZ: Housing situation critical – Tauranga principal

Sunlive: Tauranga gripped by housing crisis

TVNZ News: Housing crisis hits Tauranga, forcing families into garages and cars

Bay of Plenty Times: Community leaders, social agencies call for urgency on ‘housing crisis’

Bay of Plenty Times: People living in caravan parks while waiting for a rental

Bay of Plenty Times: Campsites for emergency housing debate

Radio NZ: No housing crisis in NZ – Paula Bennett

Interest.co.nz: Paula Bennett announces plan to offer $5,000 to homeless Aucklanders

Radio NZ: Airport CEO, health leader & economist look at the Budget

Additional

Dominion Post: Housing MPs cost taxpayers more

Treasury: Social Housing Transactions

Other bloggers

The Daily Blog: Paula Bennett blindsides her own Finance Minister in desperate scramble to respond to housing crisis

The Standard: Newshub poll – Key’s government has failed on housing

The Standard: Bennett’s housing “announcement” is a re-announcement and a lie

Previous related blogposts

Can we do it? Bloody oath we can!

State houses – “wrong place, wrong size”?

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emmerson - homeless - National govt housing

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This blogpost was first published on The Daily Blog on 27 May 2016.

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When National is under attack – Deflect, deflect, deflect!

22 April 2016 5 comments

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national-and-john-key-blames

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As I have pointed out in previous blogposts, when threatened with bad headlines or a scandal of some description, National’s automatic defense is to generally to default to one of three* deflections;

  1. Blame previous the Labour government
  2. Release story on ‘welfare abuse’
  3. Blame Global Financial Crisis or similar overseas event

There are plenty of past instances of this kind of strategy.

In February 2013, the Auditor-General found that National gave Skycity special treatment when negotiating a convention centre in return for 500 additional pokie machines. In a damning report, Deputy Auditor-General Phillippa Smith said;

“Although decisions were made on the merits of the different proposals, we do not consider that the evaluation process was transparent or even handed.”

National’s response was immediate. The following day, Associate Social Development Minister Chester Borrows launched into an attack on so-called welfare fraud;

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government-cracking-down-on-benefit-fraud

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In May 2014, faced with mounting criticism over National’s incompetent mis-handling of legalised synthetic marijuana, our esteemed Dear Leader announced a new policy to introduce a new, restrictive, regulatory framework for psychoactive substances. Key had no shame in blaming Labour for the  Opposition attempting to offer solutions to a botched drug-policy that National was wholly responsible for;

Mr Key said that, in hindsight, the Government should have taken an ultra conservative view last year and not given any legal high substances a waiver.

And he said the Labour Party forced his Government’s hand over announcing a new ban on synthetic drugs, which will take effect on 8 May.

The Government’s new ban was announced late on Sunday after the Labour Party said it would announce on Monday its own plan to immediately stop the sale of synthetic cannabis and other psychoactive substances.

Mr Key said his cabinet decided last Tuesday on a ban but wanted to keep quiet about it to cut down on stockpiling by consumers.

He said the Labour Party has not affected the Government’s policies on synthetic drugs but forced its hand in terms of the announcement.

Also in mid-2014, National was hit with multiple bad-news media stories;

Smith gives nod for open-cast coal mine on conservation land

NZ unprepared for a deep water oil spill,  Greens say

Consumers hard hit by hefty electricity price rises

National’s fix over GCSB draws a storm of protest

Loans door shutting on first-home buyers

High petrol prices hit struggling families

Job ad stall hints at unemployment rise

SkyCity deal doesn’t add up: Treasury

Housing plan ‘a weak compromise’

Right on cue,

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thousands-stopped-from-getting-benefits-not-entitled-to

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Currently, our esteemed Dear Leader is facing political, media, and public heat over New Zealand being a party to the tax-haven industry. When challenged, Key first denied that New Zealand was a tax haven;

“Tax havens are where there is non-disclosure of information – New Zealand has full disclosure of information, and so all you’ve got is New Zealand’s taken a different view from a lot of different jurisdictions and that’s because the way we tax is we tax a settlor.

In other words, it’s all about making sure New Zealanders pay their fair share of tax, what we’ve got is quite a legitimate regime.”

As mounting evidence from several sources disproved Key’s weak assertions, he was forced to announce an enquiry into the country’s trust laws.

Then Labour Leader, Andrew Little, challenged Key to disclose his tax-returns – which Key refused point blank.

Again, on cue, National’s media strategists dropped a Deflection #2 ‘bomb’ into the public discourse, with this offensive vilification of ” basically young males” from Bill English;

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Farmers agree Kiwi farm labourers 'hopeless' - radio nz - bill english - beneficiary bashing

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English’s disparagement of young, unemployed New Zealand men was roundly condemned by fair-minded New Zealanders – but the demonisation tactic had worked. For a moment, the public and media had taken their eyes of the Tax Haven ball. Which would not be the first time;

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hey everyone look up there

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However, in making that ill-advised comment, English may have accidentally opened a can of inconvenient but still-salient facts;

  1. Prior to the 2007/08 GFC, unemployment stood at around 3.4% – or 78,000 workers.
  2. As the GFC/Recession impacted on our economy, unemployment reached 7.3% by 2013 – throwing 154,000 people out of work.
  3. Seventysix thousand people lost their jobs as a result of dubious activities in the financial markets. Or did those 76,000 suddenly decide to voluntarily give up their jobs to go on the dole for $200 a week?
  4. Though the official unemployment rate is currently at 5.3% – there still remains 133,000 out of work.
  5. In 2009, National scrapped the Training Incentive Allowance which benefitted many solo-parents looking to re-train and move off welfare into paid employment

The history of entrenched high-unemployment can be seen to have taken root in the late-1980s, as right-wing economic “reforms” were implemented by Roger Douglas and his cronies. Note the rise of unemployment rate and numbers from late 1987 and early 1988, when neo-liberalism was introduced into the economy and workplace;

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trading economics - unemployed persons - 1986 - 1989

 

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trading economics - unemployment rate 1986 - 1989

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Reference: Trading Economics – Unemployed PersonsUnemployment Rate

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So not only was English blaming 133,000 workers for being out of work as the global economy was slowly recovering from the Global Financial Crisis – but is evidently blaming workers for the steady rise of unemployment since the implementation of neo-liberal economics in this country.

Free trade agreements have also played a role in the destruction of jobs in New Zealand. As more and more manufacturing and service jobs were relocated to low-wage societies (China, Vietnam, Pakistan, Fiji, India, etc), the numbers thrown out of work increased in our own country.

Cheap clothes and shoes from low wage societies are not cheap. They were paid for with the jobs of our fellow New Zealanders.

Bill English’s repugnant diatribe at Federated Farmers – where his ignorant, red-neck views no doubt found sympathy with certain elements from the crudely-informed rural community – are in stark contrast with his stated comments on 28 May 2009. As the GFC storm was beginning to buffet our economy, English was full of sympathy as more and more people were ending up unemployed;

“We are particularly concerned that the economy creates new jobs. The burden of a recession falls most harshly on those who lose their jobs and on their communities. We owe them every effort to create the opportunity for a new job.”

Mr English apparently no longer believes “we owe them every effort to create the opportunity for a new job” and has shifted the “burden of recession” firmly back onto the shoulders of the unemployed.

Or perhaps it is high time that people started asking the acolytes of the Church of Neo-liberalism – at what point do they understand and accept that blaming the victims of their failed, inflexible, free-market doctrine will not make that ideology work?

How long do we have to wait, Mr English?

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stock-photo-9680569-square-peg-in-a-round-hole

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Postscript

* In Auckland’s on-going housing-crisis situation, a fourth Deflection can be applied as a useful tactic to take the heat of National’s inept policies;

4. Blame the RMA

Number 4 deflection can be used in conjunction with Number 1 deflection. Or even Deflection #2, for maximum reactionary responses from the ill-informed.

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References

Fairfax media: SkyCity report slates Government ministers

Radio NZ: Govt cracks down on benefit fraudsters’ partners

Radio NZ: Legal highs to be regulated by July

Radio NZ: Thousands stopped from getting benefits not entitled to

Radio NZ: NZ’s ‘world-class’ tax system defended

Parliament: 3. Prime Minister—Statements

TV3 News: ‘No doubt’ NZ is a tax haven – expert

Radio NZ: Farmers agree Kiwi farm labourers ‘hopeless’

Fairfax media: ‘Hopeless’ comment a sign of a tired Government

Employment.govt.nz: Employment and unemployment – March 2008 Quarter

Trading Economics: Unemployed persons

Statistics NZ:  Household Labour Force Survey: September 2012 quarter

Statistics NZ:  Labour Market Statistics: December 2015 quarter

NBR: Bennett cutting a benefit that helped her – Labour

Scoop media: Speech – Bill English – Budget 2009

Additional

Radio NZ: Deputy PM will not apologise for comments (alt. link) (audio)

Other bloggers

The Daily Blog: Hypocritical narrative blames the victim rather than the cause for economic ‘failings’

The Standard: Trickledown has failed

The Standard: Offers of help flood in to Bill English

Previous related blogposts

Benefit fraud? Is Chester Borrows being totally upfront with us?!

The Mendacities of Mr Key #2: Secret Sources

John Key – Practicing Deflection 101

National under attack – defaults to Deflection #1

National under attack – defaults to Deflection #2

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Yellow-crosses

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This blogpost was first published on The Daily Blog on 17 April 2016.

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