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Posts Tagged ‘Public Finance Act’

Isn’t it a crying shame…? (Part #Rua)

26 April 2012 1 comment

… that politicians continue to lie and misrepresent issues, just to push their own perverse agendas,

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Banks is telling outright lies when he says,

Too often politicians spend up large in the good times, leaving nothing in reserve for when things get tough. We saw this type of spend up occur under the previous Labour Government.” – Ibid

Every time this blogger reads comments like that, reinforces the view that the Right Wing are desperate to re-write history, to paint Labour as as fiscally incompetant.

The truth, though, is completely the opposite: Labour posted surpluses year after year, during it’s administration from 2000 to 2008. This IMF graph is fairly clear how debt dropped from 2000 to 2008 – and rose once National took power in November, 2008,

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The Government Debt in New Zealand was last reported at 31.6 percent of the country´s GDP. From 1985 until 2010, New Zealand's average Government Debt to GDP was 41.50 percent reaching an historical high of 71.60 percent in December of 1986 and a record low of 17.40 percent in December of 2007

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See more here: Labour: the Economic Record 2000 – 2008

Under Labour (red), debt dropped.

Under National (blue), debt went up (not helped by two tax cuts in April 2009 and October 2010 we could ill afford).

This is reinforced by another chart, with data sourced from NZ  Treasury, that shows government budgets  under National (in blue) and Labour (in red),

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New Zealand reported a government budget deficit equivalent to 3.3 percent of the Gross Domestic Product (GDP) in 2010. Government Budget is an itemized accounting of the payments received by government (taxes and other fees) and the payments made by government (purchases and transfer payments). A budget deficit occurs when an government spends more money than it takes in. The opposite of a budget deficit is a budget surplus.

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In fact, if any government is guilty of massive deficits and borrowing, look no further than this one,

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Full Story

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Full Story

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And just to prove how incompetant National truly is,

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So much for the ’09 and ’10 tax-cuts being “fiscally neutral”. Rubbish. Those tax cuts were made at a time we could not afford them; were funded by massive borrowings from overseas; and are a dead weight on this country’s finances.

What makes all this even worse is that our Dear Leader, John Key, was warned about the unsustainability of National’s tax cuts programme,

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Full Story

When right wingers try to re-write history, it gives the rest of us the opportunity to set the record straight.  It serves as a valuable opportunity to remind New Zealanders that centre-left governments tend to be fiscally prudent, whilst right wing governments give away money (through tax cuts) that we do not have.

Eventually, the message percolates through to the Great Unwashed. And people like John Banks are caught standing in a rather cold wind, with their trousers down around their ankles.

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Isn’t it a crying shame…?

… that National and ACT have such a poor sense of priorities,

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spend limit a victory for ACT

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To show the reader what I mean, let me re-write the above story,

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Poverty limit a victory for ACT

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ACT New Zealand, Fuseworks April 26, 2012, 2:32 pm

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Today’s announcement that the Government will introduce a poverty limit into the Public Finance Act is another welcome victory for the ACT Party, ACT Leader John Banks today.

“ACT has long believed in the need for a legislated poverty  limit to keep politicians’ attention focused. It is for this reason that we pushed so hard to have it included in our Confidence and Supply Agreement with National,” Mr Banks said.

The provision in the Public Finance Act will reduce poverty to population growth and inflation, but will include decent, affordable housing, free medical care for all children,  and unemployment benefits linked to inflation and living-costs.

“If the poverty limit is exceeded, the Minister of Finance will be required to explain to Parliament the reasons for doing so.  The introduction of a poverty limit will create greater accountability and transparency in government job-creation policies and could prevent future poverty blow-outs.

“Too often politicians waste resources in pointless tax cuts, leaving nothing in reserve for when things get tough. We saw this type of spend up occur under the previous National Government.

“The poverty limit will force politicians to be more accountable and upfront about their taxation and job creation policy promises, and therefore more likely to stick to good social outcomes.

“The Minister of Finance thus far does not deserve praise for the improvements he is making to poverty levels, to strengthen State responsibility as part of New Zealand’s evolving fairness in social frameworks,” Mr Banks said.

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Now that would be a media story worth reading!

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