Archive

Posts Tagged ‘Steven Joyce’

Observations on the 2017 Election campaign thus far… (wha)

11 September 2017 Leave a comment

.

.

Who paid for the Budget surplus?

.

The 2017 Pre-Election Fiscal Update (PREFU) revealed that the Nats had achieved a respectable $3.7 billion surplus – contrasting sharply  with the $1.6 billion forecasted surplus in the May 2017 Budget.

How did National achieve such a remarkable feat, despite reduced revenue from tax cuts in 2009 and 2010 and the re-build after the Christchurch and Kaikoura earthquakes?.

One doesn’t have to search far to find one possible answer where cuts were made to achieve their much-vaunted surplus;

.

.

.

.

.

.

.

.

.

.

The answer has been revealed in an editorial in the New Zealand Medical Journal last year;

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.

Six prominent industry health leaders and researchers contributed to the editorial in the latest edition of the New Zealand Medical Journal, after several months analysing Government documents and data.

Their analysis showed Government spending in health had steadily tracked downward since 2009, despite constant reassurances from health ministers that spending was increasing year-on-year.

The $16.1 billion 2016 Health Budget, announced on Thursday, was $170 million more than last year, including $124m for Pharmac, $96m for elective surgery and $39m for a new bowel screening programme.

However, the researchers’ analysis of Budget data from 2009-10 found the country’s health budget had fallen short of what was needed each year to cover new services, increasing costs and the Ministry of Health’s cost-weighted index, which accounted for population growth and ageing.

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.

Writing for Fairfax,  Ashleigh Stewart  pointed out;

Vote Health’s operational expenditure decreased from 6.32 per cent to 5.95 per cent as a proportion of GDP in the same five years.

Government expenditure was set to continue falling overall, with New Zealand ranked 26th out of OECD countries for spending as a proportion of GDP in 2013.

This meant further cuts for health spending, which was estimated to drop by about 4 per cent a year.

“The continued under-resourcing of our health services . . . is not owing to unaffordability; it is a policy decision to reduce government expenditure overall and introduce tax cuts,” the editorial said.

Anyone who  harbours illusions that tax cuts are beneficial should think twice. Especially if  they have to face  waiting months or years on hospital waiting lists for critical surgery, or turned away because the system is stretched to breaking point;

.

.

Then again, those like Bill English – who stands to gain the most from tax cuts – are also the most likely to be able to afford private health insurance.

National’s tax cuts should come clearly labelled;

.

.

Because they really are.

.

Steven Joyce – Pot. Kettle. Hypocrite.

.

In the Dominion Post on 5 September, Steven Joyce was ‘doubling down’ and digging his hole deeper, as he steadfastly maintained National’s spin (aka, lie) that Labour’s Budget had a “$11.7 billion hole” in it;

.

.

Joyce’s claims have since been rubbished by various economists – including, surprisingly, the right-wing think-tank, the NZ Initiative (formerly Business Roundtable);

.

Acknowledgement for above graphic: Newshub

.

More damning still was another remark Joyce made about Labour’s fictitious $11.7 billion “hole”;

“That level of spending and increased debt can only lead to one thing – higher interest rates for Kiwi mortgage holders.”

Which is risable as National has borrowed  eight times Joyce’s figure of $11.7 billion;

.

 

.

That’s right;

“Government annual operating expenditure in these forecasts increases from $77 billion to $90 billion over the next four years, which is sufficient for significant ongoing improvement in the provision of public services,” Mr Joyce says.

And interestingly, during National’s massive borrowing-spree, interest rates have remained low. Joyce’s contention that borrowing leads to higher interest rates for mortgage holders doesn’t seem to have happened (yet) – and National has borrowed like there’s no tomorrow.

By making up outright lies about Labour’s budgetary plans, Joyce has not only revealed himself as as deceptive  – but drawn unwanted attention to National’s own irresponsible borrowing over the last nine years.

Well done, Steven;

.

.

 

Peter Dunne. Ohariu. Coat-tailing.

.

If it hasn’t been said already, the seat of Ohariu has become irrelevant.  Whether Brett Hudson or Greg O’Connor wins is now academic. Once again, it is the Party Vote that counts.

When Dunne was standing, the coat-tailing provision made him a valuable asset to National. If Dunne breached the 1.2% threshold as well as winning Ohariu, he would’ve dragged in another MP off the United Future party list.

It is the same reason National offered patronage to David “H” Seymour to gift him Epsom: the possibility of an extra ACT MP via MMP’s coat-tailing rule.

This is why Judith Collins doubled-down and stubbornly refused to implement the Electoral Commission’s recommendations in 2013  to eliminate the coat-tailing provision.

The Green Party was thus correct to stand a candidate in Ohariu. Whilst the Greens are not seeking to win the electorate, they are chasing Party Votes – and Ohariu is another opportunity to remind voters that the Greens are vital for this country’s environmental well-being.

Simply put; to be healthy we need our Greens.

.

National’s fiscal hole?

.

Bill English’s announcement on 4 September on TV3’s Leader’s Debate that his party would raise 100,000 children out of poverty in the next three years appears to have been policy made-on-the-hoof.

Because it’s not a matter of simply raising incomes for poor families. As English pointed out in the Debate, it is far more complex, requiring support from an array of social services;

“There’s two things you need to do, one is lift incomes the other is get inside the very toxic mix of social issues which we know are family violence, criminal offending and long-term welfare dependency. We’ve got the best tools in the world now to support rising incomes with cracking the social problems.”

This comes on top of National’s other pledges to improve access for social services;

National have pledged 600,000 low-income New Zealanders will have access to $18 GP visits. 

National will also expand the community services card to an additional 350,000 people, with low incomes and high housing costs.

Alongside free GP visits for under 13s and the Very Low Cost Access (VLCA) scheme for GP visits, which were already in place, National’s new policy would mean more than half of New Zealanders would be eligible for either free or cheap doctors visits. 

Health Minister Jonathan Coleman also chucked in a few more lollies from Labour’s lolly-jar;

“As well as getting access to cheap GP visits, 350,000 more New Zealanders with lower incomes and high housing costs, will receive cheap prescriptions, free emergency dental care and free glasses for children through their new community services cards.”

Plus National’s $10.5  billion “Roads of National Significance”.  (Called that, because those Roads are Significant for National to be re-elected.)

The obvious question is: has Steven Joyce checked if  it’s all been costed?

Are there any lurking micro-Black Holes in National’s Budget?

Wouldn’t it be ironic if…?

.

.

.

References

Radio NZ:  Govt’s books show one-off $2bn boost

NBR:  Budget 2017 – Government forecast surpluses narrow on family package, capital spending

NZ Herald:  Report shows 170,000 people who need surgery are not on waiting list

Radio NZ:  Patients suffering because of surgery waits – surgeon

NZ Herald:  700 surgeries postponed as Auckland hospitals struggle to cope

Fairfax media:  Southern patients may be dying while waiting for surgery – Labour

Radio NZ:  Prostate cancer patients face wildly varying wait times

Radio NZ:  Southern DHB in a ‘slow motion train crash’

Scoop media:  280,000 New Zealanders waiting for surgery, wait times up

Fairfax media:  Thousands left off surgery waiting lists suffering indefinitely – study

Fairfax media:  Who is missing out on surgery? Government releases first figures of ‘phantom waiting list’

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

Fairfax media:  Busy Hamilton clinics turn away ambulances

Newsroom:  Election 2017 Live – Leaders clash in fiery debate

Dominion Post:  National accuses Labour of $11.7b spending plan error, Labour says National got it wrong

Mediaworks:  Economist consensus – there’s no $11.7b hole in Labour’s budget

National Party:  Pre-Election Fiscal Update 2017 (alt. link)

Fairfax media:   Government’s MMP review response slammed

Mediaworks:  Newshub Leaders Debate – Bill English commits to poverty target

Fairfax media:  National pledges $18 doctors visits for an extra 600,000 New Zealanders

Fairfax media:  National announce $10.5 billion roading plan

Previous related blogposts

Observations on the 2017 Election campaign thus far… (tahi)

Observations on the 2017 Election campaign thus far… (rua)

Observations on the 2017 Election campaign thus far… (toru)

.

.

.

.

This blogpost was first published on The Daily Blog on 6 September 2017.

.

.

= fs =

Advertisements

Steven Joyce rails against low mortgage interest rates; claims higher interest rates “beneficial”

.

 

.

National is increasingly on the back-foot with New Zealand’s ever-worsening housing crisis. Ministers from the Prime minister down are desperately trying to spin a narrative that the National-led administration “is getting on top of the problem“.

Despite ministerial ‘reassurances’, both Middle and Lower Working  classes are feeling the dead-weight of a housing shortage; ballooning house prices,  and rising rents.

Recently-appointed Finance Minister, Steven Joyce,  has found a new unlikely scapegoat, blaming the housing bubble and worsening housing affordability  on current low interest rates.  On 11 May, on Radio NZ’s Morning Report, he said;

“We have very, very low interest rates historically, and as a result that’s directly linked to how much house prices are being bid up around the world. It’s not the sole reason for why we have high asset prices around the world, it’s not just houses, it’s shares and everything else. But it is certainly one of the dominant reasons for that. And unfortunately it’s going to be a little bit of time yet before that changes, although there’s indications that this period of ultra-low interest rates that the world has seen is coming to an end. And so I think that, that, will improve affordability over time.”

Radio NZ’s Guyon Espiner reacted with predictable incredulity that Joyce was relying on interest rates rising to “improve affordability over time“.

Joyce’s finger-pointing and blaming “very, very low interest rates historically” is at variance with a speech that former Dear Leader, John Key, gave in January 2008 where he specifically indentified higher interest rates as a barrier to home ownership;

* Why, after eight years of Labour, are we paying the second-highest interest rates in the developed world?

[…]

* Why can’t our hardworking kids afford to buy their own house?

Good questions, Mr Key

Got any answers, Mr Joyce?

Because according to Statistics NZ, home ownership rates have worsened since John Key gave his highly-critical speech, nine years ago;

Home ownership continues to fall

  • In 2013, 64.8 percent of households owned their home or held it in a family trust, down from 66.9 percent in 2006.

  • The percentage of households who owned their home dropped to 49.9 percent in 2013 from 54.5 percent in 2006.

Home ownership reached a peak of 73.8% by 1991. Since then, with  the advent of neo-liberal “reforms” in the late ’80s and early ’90s, home ownership has steadily declined.

Those who have benefitted have tended to be investors/speculators. In 2016, 46% of mortgages were issued to property investors/speculators in the Auckland region. Despite a watered-down, pseudo-capital gains tax,  referred to as the “bright line” test implemented in October 2015, investors/speculators still accounted for 43% of house purchasers by March of this year.

The same report revealed the dismal fact that first home buyers constituted only 19% of sales.

John Key’s gloomy plea, “Why can’t our hardworking kids afford to buy their own house?” rings truer than ever.

Poorer families are fairing no better.

National’s abysmal policy to sell off state housing has left a legacy of families living in over-crowded homes; garages, and cars. This scandal has reached the attention of the international media.

From the Guardian;

.

.

From Al Jazeera;

.

.

As with our fouled waterways, we have developed another unwelcomed reputation – this time for the increasing scourge of  homelessness.

But it is not just the sons and daughters of the Middle Classes that are finding housing increasingly out of their financial reach. The poorest families in our society have resorted to living in over-crowded homes or in garages and in cars.

National has spent millions of taxpayer’s dollars housing families in make-shift shelters in motels. At the behest on National ministers, WINZ have made it official policy to recoup money  “loaned” to beneficiaries to pay for emergency accommodation;

.

.

National’s track record on this growing community cancer has been one of ineptitude.

In 2015, Dear Leader Key made  protestations that  no problem exists in our country;

“No, I don’t think you can call it a crisis. What you can say though is that Auckland house prices have been rising, and rising too quickly actually.”

He kept denying it – until he didn’t;

.

.

Unfortunately, former-and current State beneficiary, and now Social Housing Minister, Paula Bennett, apparently ‘did not get the memo’. She still denies any housing crisis in this country;

“I certainly wouldn’t call it a crisis. I think that we’ve always had people in need. So the other night on TV I heard the homeless story was second in and then the seventh story was a man who’d been 30 years living on the streets.”

Despite  being in full denial, in May last year Bennett announced that National would be committing $41.1 million over the next four years  for emergency housing and grants.

By April this year  it was revealed that National had already spent $16.5 million on emergency accomodation. It had barely been a year since Bennett issued her Beehive statement lauding the $41.1 million expenditure, and already nearly a third of that amount has been spent.

This is clear evidence as to how far out-of-touch National is on social issues.

The stress and pressure on Ministers and state sector bureaucrats has become apparent, with threats of  retribution flying.  This month alone, a MSD manager and associate minister of social housing, Alfred Ngaro, were revealed to have warned critics of the government not to talk to the media;

.

.

Bennett went on to make this extraordinary statement;

“I spend the bulk of my time on social housing issues and driving my department into seriously thinking about different ways of tackling this.”

Her comment was followed on 20 May, on TV3’s The Nation, when current Dear Leader, Bill English tried to spin a positive message in  National’s ‘fight against homelessness’;

“Our task has been to, as we set out three or four years ago, to rebuild the state housing stock. And that’s what we are setting out to do.”

English and Bennett’s claims would be admirable – if they were not self-serving hypocrisy.

In 2008, Housing NZ’s stock comprised of  69,000 rental properties.

By 2016, that number had fallen to 61,600 (plus a further 2,700 leased).

In eight years, National has managed to sell-off 7,400 properties.

No wonder English admitted “we set out three or four years ago, to rebuild the state housing stock“. His administration was responsible for selling  off over ten percent of much-needed state housing.

No wonder families are forced into over-crowding; into garages and sheds; and into cars and vans.

Confronted by social problems, National ministers duck for cover. Especially when those same social problems are a direct consequence of their own ideologically-driven and ill-considered policies.

National ministers English, Bennett, Joyce, Nick Smith, et al are responsible for our current homelessness.

Parting thought

Left-wing parties and movement are generally proactive in identifying and resolving critical social problems and inequalities. It is the raison d’etre of the Left.

The Right seem only able to belatedly react to social problem and inequalities.

Especially when they caused it.

.

.

.

References

Interest.co.nz: PM says no housing crisis in Auckland

NZ Herald: Housing shortage growing by 40 homes a day

Fairfax media: House prices rise at an ‘eye-popping’ rate for 6 NZ regions – Trade Me

Interest.co.nz: Median rents up $50 a week over last 12 months in parts of Auckland

Radio NZ: Lessons for NZ in Australia’s Budget

NZ Herald: John Key – State of the Nation speech

Statistics NZ: 2013 Census QuickStats about national highlights

Statistics NZ: Owner-Occupied Households

Radio NZ: Homeless family faces $100k WINZ debt

Interest.co.nz: New official Reserve Bank figures definitively show that investors accounted for nearly 46% of all Auckland mortgages

Simpson Grierson: New “bright-line” test for sales of residential land

Property Club: First buyers still missing out in Auckland’s most affordable properties

The Guardian: New Zealand housing crisis forces hundreds to live in tents and garages

Al Jazeera: New Zealand’s homeless – Living in cars and garages

NZ Herald: No house, not even a motel, for homeless family

Radio NZ: Key denies Auckland housing crisis

Radio NZ: No housing crisis in NZ – Paula Bennett

Beehive: Budget 2016 – 3000 emergency housing places funded

Mediaworks: Homeless crisis costing Govt $100,000 a day for motels

Radio NZ: Emergency housing providers instructed not to talk to media

Radio NZ: Ngaro apologises for govt criticism

TV3: The Nation – Patrick Gower interviews Bill English

Housing NZ: Annual Report 2008/09

Housing NZ: Annual Report 2015/16

Previous related blogposts

Can we do it? Bloody oath we can!

Budget 2013: State Housing and the War on Poor

Budget 2013: State Housing and the War on Poor

National recycles Housing Policy and produces good manure!

Our growing housing problem

National Housing propaganda – McGehan Close Revisited

Housing; broken promises, families in cars, and ideological idiocy (Part Tahi)

Housing Minister Paula Bennett continues National’s spin on rundown State Houses

Another ‘Claytons’ Solution to our Housing Problem? When will NZers ever learn?

Government Minister sees history repeat – responsible for death

Housing Minister Paula Bennett continues National’s spin on rundown State Houses

Letter to the Editor – How many more children must die, Mr Key?!

National under attack – defaults to Deflection #1

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

.

.

.

Problem…

.

.

Solution.

.

.

This blogpost was first published on The Daily Blog on 21 May 2017.

.

.

= fs =

Election ’17 Countdown: Joyce – let the lolly scramble begin!

25 February 2017 1 comment

.

(Or, “Under-funded health, education, and other social services? Let them eat tax-cut cake!”)

.

23-september-2017-elections-nz

.

2017 Election – Opening Gambits and Giveaways

You can tell it’s election year; the lolly-scramble (aka, hint of tax cuts) has begun;

.

steven-joyce-tax-cuts-lolly-scramble-2017-election

.

Historical Context

Cutting taxes (and social services on-the-sly) is one of National’s mainstays when it comes to election promises. Bribes work best when a government has nothing left to offer.

Who can forget the infamous  2008 election campaign, where – despite the Global Financial Crisis firmly taking hold of the New Zealand economy – then-National Party leader, John Key promised tax cuts.

In January 2008;

“We will cut taxes, not just in election year, but in a regular programme of ongoing tax cuts.

[…]

And we will do all of this while improving the public services that Kiwis have a right to expect. ”

In March 2008, then Finance Minister, Michael Cullen warned against borrowing for tax cuts;

“ Those who would actively choose to drive New Zealand into further debt to pay for tax cuts lack real ambition for our economy…

[…]

Even before these challenges hit home John Key wants to increase our debt to at least 25 per cent of GDP. But he does not pretend he wants to borrow more to pay for more services and he does not really believe he needs to borrow more to pay for roads. He only wants to outspend Labour on tax cuts.

His plan would cost an extra $700 million a year in financing costs alone, around what the government has invested in new health services for each of the last two years.

But the real worry is that Mr Key’s pro-debt policy shows he does not take long-term challenges seriously. His risky deal for tax cuts today would leave the bill to our children and grandchildren tomorrow.”

Undeterred, Key pursued his irresponsible promises and in August 2008 announced to a gullible public;

National will fast track a second round of tax cuts and is likely to increase borrowing to pay for some of its spending promises.

Key made the incredible assertion that tax-cuts would not impact on government debt;

So that will be extremely clear cut and rather hermetically sealed.

Key’s claim of “hermetically sealing” tax cuts from the rest of government fiscal activity was never fully explained, and nor did the MSM ever challenge that unbelievable promise.

In October 2008, Key repeated his fantasy of affordable tax cuts;

Our tax policy is therefore one of responsible reform…  We have ensured that our package  is appropriate for the current economic and fiscal conditions… This makes it absolutely clear that to fund National’s tax package there is no requirement for additional borrowing and there is no requirement to cut public services… National’s rebalancing of the tax system is self-funding and requires no cuts to public services or additional borrowing’ .

The rest is history. National was elected to power on 8 November and tax cuts implemented in 2009 and 2010. Government borrowing and  debt rocketed;

.

budget-blow-out-by-national

.

A third round scheduled for 2011 was cancelled as the budget blow-out  caused – in-part – by  unaffordable tax-cuts began to hit home even on a profligate National-led administration.

By May 2011, National was borrowing $380 million per week to fund it’s debt. Bill English and John Key seemed startled by the government’s deteriorating financial position;

Finance Minister Bill English said the Government’s financial position had deteriorated “significantly” since late 2008.

“The pre-election update in 2008 forecast that the deficit for this year would be $2.4 billion,” he said.

“It’s much more likely to be around $15b or $16b.”

That level of deficit, as NZPA has previously reported, will be the highest in New Zealand’s history and Mr English confirmed that today.

Prime Minister John Key confirmed the average weekly borrowing figure, which he said was unaffordable.

Michael Cullen’s warnings over unaffordable tax cuts seem to have been long-forgotten as collective amnesia over-took the National Party leadership.

Worse still, it was the rising army of unemployed who were to pay the fiscal bill for National’s profligacy;

More than three quarters of all beneficiaries will be forced to seek work or face cuts to their payments under sweeping recommendations from the Government’s Welfare Working Group… Working group chairwoman, economist Paula Rebstock, said the present high levels of welfare dependency meant major changes were needed. “ There are currently few incentives and little active support for many people reliant on welfare to move into paid work. Long term benefit dependency can be avoided if investments are well targeted and timely…”  Social Development Minister Paula Bennett said the report was an opportunity to change the welfare system and would feed into Government work in the area.

Key indulged in National’s favourite activity when things went horribly wrong after his administration’s apalling policty-decisions. He blamed those at the bottom of the economic heap;

Prime Minister John Key says beneficiaries who resort to food banks do so out of their own “poor choices” rather than because they cannot afford food. “But it is also true that anyone on a benefit actually has a lifestyle choice. If one budgets properly, one can pay one’s bills. “And that is true because the bulk of New Zealanders on a benefit do actually pay for food, their rent and other things. Now some make poor choices and they don’t have money left.”

By 2016/17, National’s net debt had reached $66.3 billion. (Damn those beneficiaries’ “poor choices”.)

The Joy of Joyce’s Tax Bribe

On 8 February this year, Joyce announced aspects of this year’s coming Budget. Joyce  dangled the tax-cut carrot  in  front of voters;

It is also very important to remain mindful that the money the Government spends comes from hard working Kiwi families. We remain committed to reducing the tax burden on lower and middle income earners when we have the room to do so.

On the same day, Joyce voiced concerns about New Zealand’s massive mountain of private debt;

I have discussed DTIs with the Reserve Bank Governor, who remains concerned about the levels of debt in some households in the context of recent increases in house prices.

Joyce has good reason to be nervous. As of this year, New Zealand’s household debt has reached stellar proportions;

.

new-zealand-residential-property-hits-1-trillion-mark

 

.

Any further tax-cuts will not only be based on cuts to social services (health, education, housing, NGOs, etc), but may further fuel the housing bubble.  This would raise the prospect of a monstrous  three-headed creature of National’s making where;

  • it would likely have to have to borrow to fund the tax-cuts,
  • fuel an increase in private debt as tax-cuts are spent on a property-buying binge,
  • as well as driving first-home buyers out of the market as housing-prices take off again.

Joyce voiced this concern on 8 February;

The use of macro-prudential tools can be complex and affect different borrowers in different ways. I am particularly interested in what the impacts could be on first home buyers.”

So further tax cuts may have negative impacts that a fourth National administration would have to deal with if it wins the 23 Sept election.

On top of which, New Zealanders would be faced with further cuts to social services and increasing user-pays in health and education. From our on-going housing crisis;

.

homelessness-in-new-zealand

.

… to more user-pays in education;

.

parents-fundraise-357m-for-free-schooling

.

…in healthcare;

.

patients-have-severe-loss-of-vision-in-long-wait-for-treatment

.

… and the gutting of NGO services through budget-cuts;

.

relationships-aortearoa-funding-cuts-anne-tolley-budget-2015

 

.

When Kiwis take up National’s tax-cut bribes, they end up paying more, elsewhere.

But even slashing the budgets for the state sector and NGOs is insufficient to meet the multi-billion dollar price-tag for tax-cuts.  National is desperately having to scramble to find money where-ever it can. So-called student loan “defaulters” are firmly in National’s eyesights;

Almost 57,000 student loan borrowers found in Australia

The agreement came into force in October and the details of around 10,000 New Zealanders were found in the first data match. The process has since been refined and a total of 56,897 people have now been located.

“These borrowers have a combined loan balance of $1.2 billion and $430 million of that is in default. Inland Revenue will now start chasing up these borrowers and taking action to get their student loan repayments back on track,” says Mr Joyce says.

Mr Woodhouse says “The data shows that more than half of these borrowers left New Zealand over five years ago, with nearly a quarter having been away for more than 10 years. A third of them have not returned to New Zealand in the past four years. One third of the group has had no contact with Inland Revenue, and 43% have not made a payment since they left New Zealand.

“It’s time these people did the right thing and met the obligations they signed up to when they took out their student loan,” Mr Woodhouse says.

Who else will National target to squeeze money out of?

What social services will National slash to fund tax-cuts?

What further user-pays will be implemented?

One further question; if National does not pay down our sovereign debt – how will the country cope with another global financial crisis and shock to our economy? As Joyce himself pointed out;

 

“ We need to keep paying down debt as a percentage of GDP. We’ve set a target of reducing net debt to around 20 per cent of GDP by 2020. That’s to make sure that we can manage any shocks that may come along in the future.”

 

When National took office from Labour, the previous Clark-Cullen government has prudently resisted National’s tantrum-like demands for tax cuts and instead paid down our sovereign debt. As former Dear Leader Key himself was forced to admit;

In 2005, as Leader of the Opposition;

“ Firstly let me start by saying that New Zealand does not face the balance sheet crisis of 1984, or even of the early 1990s. Far from having dangerously high debt levels, gross debt to GDP is around a modest 25 percent and net debt may well be zero by 2008. In other words, there is no longer any balance sheet reason to justify an aggressive privatisation programme of the kind associated with the 1980s Labour Government.

In 2012*, as Prime Minister Key  justified the partial sale of state-owned assets;

The level of public debt in New Zealand was $8 billion when National came into office in 2008.  It’s now $53 billion, and it’s forecast to rise to $72 billion in 2016.  Without selling minority shares in five companies, it would rise to $78 billion.  Our total investment liabilities, which cover both public and private liabilities, are $150 billion – one of the worst in the world because of the high levels of private debt in New Zealand.”

(* No link available. Page removed from National Party website)

With our current debt of $66.3 billion, we no longer have a safety-buffer. That is the current dire state of our government books.

It is astonishing that Joyce has the nick-name of “Mr Fixit”, as he makes irresponsible hints of tax cuts to come.

Little wonder that Joyce’s unearned reputation as “Mr Fix It” was deconstructed by journalist and political analyst, Gordon Campbell;

The myth of competence that’s been woven around Steven Joyce – the Key government’s “Minister of Everything” and “Mr Fixit” – has been disseminated from high-rises to hamlets, across the country. For five years or more, news outlets have willingly (and non-ironically) promoted the legend of Mr Fixit…

[…]

Of late however, the legend has lost some of its lustre. More than anything, it has been his handling of the SkyCity convention deal that has confirmed a lingering Beltway suspicion that Joyce’s reputation for business nous has been something of a selfie, with his competence appearing to be inversely proportional to his sense of self-esteem. Matthew Hooton’s recent critique of Joyce in NBR – which was inspired by how the SkyCity convention deal had cruelly exposed Joyce’s lack of business acumen – got a good deal of traction for that reason. On similar grounds, Joyce’s penchant for (a) micro-managing and (b) the prioritising of issues in terms of their headline potential has resulted in his ministerial office becoming somewhat notorious around Parliament for (c) its congested inefficiency and for (d) a not-unrelated extent of staff burnout.

[…]

Not only is Joyce’s ministerial office renowned as an administrative bottleneck – where issues tend to be ranked in terms of their p.r. potential for the Minister – none of this seems to be in service of any wider goal or vision. As Mr Fixit, Joyce tends to be engaged in the equivalents of blown fuses and leaking taps – rather in the re-design of the political architecture. Joyce has simply never been – and has never pretended to be – a big picture kind of politician. He has been never someone with an abiding interest in – or the intellectual stamina for – systemic change.

The re-election of National this year – by any means necessary, whether beneficial to New Zealand or not, no matter what the social or financial costs – appears to be ‘Mr Fixit’s’  latest ‘DIY’ project.

And like most DIY budgets, wait for the blow out.

Just like 2009.

.

 

 

.

References

Interest.co.nz: Finance Minister says Government remains ‘committed to reducing the tax burden

Scoop media: Tax cuts still in the mix for Joyce’s first budget

Sharechat: Tax cuts still in the mix for Finance Minister Steven Joyce’s first budget

Radio NZ: Budget date set, tax cuts likely

NBR: Government hints at tax cuts in Budget 2017

Fairfax media: Joyce signals low and middle earners’ top rates target for tax cuts

NZ Herald:  The Economy Hub – About those tax cuts… Steven Joyce, the big interview

NZ Herald: John Key – State of the Nation speech

Scoop media: Government will not borrow for tax cuts

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

Guide2: National Party – Tax Policy

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

NBR: Tax cuts scrapped in budget

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

NZ Herald: Govt borrowing $380m a week

Fairfax media: Extensive welfare shake-up needed – report

NZ Herald: Food parcel families made poor choices, says Key

NZ Treasury: Budget Economic and Fiscal Update 2016

Beehive: 2017 Budget to be presented on 25 May

Beehive: Finance Minister requests cost-benefit analysis on DTIs

NZ Herald: New Zealand residential property hits $1 trillion mark

Beehive: Almost 57,000 student loan borrowers found in Australia

Scoop media: John Key Speech – State Sector Under National

Werewolf: The Myth of Steven Joyce

Other Blogs

The Hand Mirror: A crack in the wall

Previous related blogposts

Tax cuts & school children

Letter to the editor: Setting it straight on user-pays in tertiary education

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

The Mendacities of Mr Key #3: tax cuts

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

The Mendacities of Mr English – Social Services under National’s tender mercies

.

.

.

tax-cuts-lolly-scramble-bill-english

.

This blogpost was first published on The Daily Blog on 20 February 2017.

.

.

= fs =

The Mendacities of Mr English – Social Services under National’s tender mercies

12 February 2017 2 comments

.

1949-state-house-in-taita

 

 

 

.

Context

.

On 25 January, as Radio NZ returned to it’s normal broadcasting schedule (and putting away it’s dumbed-down “summer programming” until next December/January), John Campbell had his first interview with John Key’s replacement, Bill English.

Campbell raised several issues with English; the US withdrawal from the TPPA; the Pike River mine disaster; and the housing crisis. At this point, English made this staggering claim;

@ 5.58

“We’ve got a government actually with a good record on addressing, in fact, some of the toughest social issues. There may be disagreement over means by which we’re doing it, ah, but our direction is pretty clear. And you know over, certainly heading into election year we think that the approach the government’s developed around social investment, around increasing incomes is the right kind of mix – “

English’s bland assertion that “government actually with a good record on addressing, in fact, some of the toughest social issues” is at variance with actual, real, mounting socio-economic problems in this country.

.

Key indicator #1: Unemployment

.

The latest HLFS unemployment stats show an increase from 4.9% to 5.2% in the December 2016 Quarter. However, in all likelihood, the unemployment numbers are actually much, much, higher since Statistics NZ arbitrarily altered the way it  calculated what constituted  unemployment.

On 29 June 2016, Statistics NZ announced that it would be changing the manner in which it defined a jobseeker;

Change: Looking at job advertisements on the internet is correctly classified as not actively seeking work. This change brings the classification in line with international standards and will make international comparability possible.

Improvement: Fewer people will be classified as actively seeking work, therefore the counts of people unemployed will be more accurate.

The statement went on to explain;

Change in key labour market estimates:

  • Decreases in the number of people unemployed and the unemployment rate

  • Changes to the seasonally adjusted unemployment rate range from 0.1 to 0.6 percentage points. In the most recent published quarter (March 2016), the unemployment rate is revised down from 5.7 percent to 5.2 percent 

  • Increases in the number of people not in the labour force 

  • Decreases in the size of the labour force and the labour force participation rate

The result of this change? At the stroke of a pen, unemployment fell from 5.7% to 5.2% for the March 2016 Quarter (and subsequent Quarters).

If the “current unemployment figures” from Stats NZ are reported as “5.2%’, they may well be back to the original March 2016 figure of 5.7%, before the government statistician re-jigged definitions.

.

Key indicator #2: Housing

.

– Home Ownership

According to the 1984 NZ  Yearbook, in 1981 the number of rental dwellings numbered 25.4% of housing. 71.2% were owner-occupied. Nearly three quarters of New Zealanders  owned their homes.

Home ownership reached it’s maximum height in 1991, when it stood at 73.8%. Since then, it has steadily declined.

By 2013 (the most recent census survey), the numbers of rental dwellings had increased to 35.2% (up 33.1% in 2006). Home ownership had decreased to  49.9%  (down from  from 54.5% in 2006). If you include housing held in Family Trusts, the figure rises to 64.8% of households owning their home in 2013, down from 66.9% in 2006.

Whether you include housing held in Family Trusts (which may or may not be owner-occupied or rented out), home ownership has fallen steady since the early 1980s.

Renting has increased from 25.4% to 35.2%.

More and more New Zealanders are losing out on the dream of home ownership. Conversely, more and more of us are becoming tenants in our own country.

As Bernard Hickey from Interest.co.nz said in December last year;

Nearly two thirds of the 430,000 households formed since 1991 are tenants.

Think about that for a moment. It is a stunning revelation of how the young and the poor have been hit the hardest by the changes in New Zealand since the mid-1980s, and on an enormous scale.

It means two thirds of the kids born in those families grew up in rental accommodation, and more than 80% of those are private rentals (although the Housing NZ homes are often no better). That means they often grew up in mouldy, damp, cold and insecure housing. It’s true that some homes occupied by their owners are also below par, but it’s a much lower proportion and owners have the option to improve their homes through insulation and ventilation.

The NZ$696 billion increase in the value of New Zealand’s houses to NZ$821 billion between 1991 and 2015 means the 64% of owners in live-in houses have also had plenty of financial flexibility to improve those houses. Renters have had no access to that wealth creation and are not allowed to put a pin in the wall, let alone put in a ventilation system or some batts in the ceiling. The take-up for the Government’s home insulation and heating subsidies were vastly higher among home-owners than they were for landlords.

Those 284,000 renting households formed since 1991 have also often been forced to move schools and communities and all the roots that build families because New Zealand’s rental market is so transient.

[…]

It illustrates the scale of the fallout from that collapse in home ownership from 1991. Not only has it handicapped the education, health and productivity of a entire generation of New Zealanders, but it is set to magnify the likely growth in pension and healthcare costs of our ageing population. And that’s before the wealth and income inequality effects.

.

– Affordability

In 2016, the 13th Annual International Demographia International Housing Affordability survey rated New Zealand as one of the most unaffordable housing markets in the world;

The most affordable major housing markets in 2015 are in the United States, with a moderately unaffordable Median Multiple of 3.9, followed by Japan (4.1), the United Kingdom (4.5), Canada (4.7), Ireland (4.7) and Singapore (4.8). Overall, the major housing markets of Australia (6.6), New Zealand (10.0) and China (18.1) are severely unaffordable. (p2)

[…]

In New Zealand, as in Australia, housing had been rated as affordable until approximately a quarter century ago. (p24)

A 2014 report by the NZ Institute for Economic Research stated  the “the average house price rose from the long-run benchmark of three times the average annual household income to six times“;

.

house-price-to-income-ratio-new-zealand-housing-affordability

.

The NZIER report refers to several reasons for increasing housing prices; slow supply of land; demographic demand (from ‘Baby Boomers’); and investor demand caused by lack of a capital gains tax. Interestingly, the Report also refers to an “over-supply of finance”;

The loosening of financial standards and rising household debt relative to income has happened over a long period of time. The increase in indebtedness has coincided with rising house prices relative to incomes. This suggests that increased household indebtedness has at least partly contributed to the increasing price of homes. (p14)

Prior to Roger Douglas de-regulating the banking/finance sector, New Zealand banks could only lend depositor’s funds as mortgages.

As a result, mortgage money was “tight”, and scarcity helped keep house prices down. Vendor’s expectations were kept “in check” by scarcity of bank funds. Prior to the mid 1980s, Vendor’s Finance (by way of a Second Mortgage) were commonly-used financial tools to assist house-owners to sell and buyers to complete a purchase.

Once the banking sector was opened up, and monetary policy relaxed, cheap money flooded in from overseas for banks to on-lend to house-purchasers. As property investor, Ollie Newland vividly explained in the 1996 TV documentary, Revolution;

“I got a phone  call from my bank manager to say some bigwigs were coming up from Wellington to have a chat with me. I thought it was just one public relations things they do. I had a very small office, it wasn’t much bigger than a toilet cubicle, and those five big fellows  crowded in with their briefcases and books and they sat on the floor and the arms of the chairs – I only had one chair in the place – and stood against the walls. Their first words to me were, we’re here to lend you money. As much as you want. For somebody like me, and I’m sure it’s the same for everybody else, to suddenly be told by the bank manager that you could have as much money as you want, help yourself, that was a revelation. We thought we had died and gone to heaven.”

Unfortunately, the side affect of this was to increase vendor’s expectations to gain higher and higher prices for their properties. Combined with recent high immigration, and a lack of a comprehensive capital gains tax, and the results have been troubling for this country;

.

new-zealand-residential-property-hits-1-trillion-mark

.

As well as increasingly unaffordable housing, we – as a nation – are sitting on a trillion-dollar fiscal bomb.

Think about that for a moment.

Little wonder that in September last year, the Reserve Bank issued the sternest warning yet that we were headed for impending economic mayhem;

A sharp correction in house prices represents a key risk to the financial system, and one that is increasing the longer the current boom in house prices persists. A severe downturn in house prices could have major implications for the banking system, with over 55 percent of bank loans secured against residential property. Moreover, elevated household debt levels and a growing exposure of the banking system to investor loans could reinforce a housing downturn and extend reductions in economic activity, as highly indebted households are forced to reduce consumption and sell property.

As with many other individuals, institutions, organisations, business leaders, left-wing commentators, media, political pundits, political parties, the NZIER was (and still is) calling for a comprehensive capital gains tax to be implemented.

Even then, this blogger suspects we may be too late. National (and it’s predecessor, to be fair) have left it far to late and the economic horse has well and truly bolted.

Even a Capital Gains Tax at 28% – New Zealand’s current corporate tax rate – may be insufficient to dampen speculative demand for properties.

Meanwhile, the dream of Kiwis owning their own homes continues to slip away.

Depressingly, New Zealanders themselves have permitted this to happen.

.

– State Housing

If the Middle Classes and their Millenial Offspring are finding it hard to buy their first home, think of the poorest  families and individuals in our communities. For them, social housing consists of packing multiple families into a single house; living in an uninsulated, drafty,  garage; or in cars.

Last year, the story of mass homelessness exploded onto our media and our “radar” as New Zealanders woke up to the reality of persistent poverty in our cities;

.

homelessness-in-new-zealand

.

Although on occassion, the mainstream media found them themselves  in embarrassingly ‘schizophrenic’ situations as they attempted to reconcile reporting on our growing housing crisis – whilst raising advertising revenue by  promoting “reality” TV programmes that were far, far removed from many people’s own disturbing reality;

.

tv3-homelessness-the-block-reality-show

.

According to UNICEF;

295,000 New Zealand kids are living beneath the poverty line, which means they are living in households where income is less than 60% of the median household income after housing costs are taken into consideration.

One way to alleviate poverty is to provide state housing, at minimal rental, to families suffering deprivation. Not only does this make housing affordable, but also strengthens a sense of community and reduces transience.

Transience can have deletarious effects on families – especially on children – who then struggle with the stresses of losing friends; adjusting to new neighbourhoods, and new schools.

A government report states that transience for children can have extreme, negative impact on  their learning;

Nearly 3,700 students were recognised as transient during the 2014 year. Māori students were more likely to be transient than students in other ethnic groups.

[…]

Students need stability in their schooling in order to experience continuity, belonging and support so that they stay interested and engaged in learning.

All schools face the constant challenge of ensuring that students feel they belong and are encouraged to participate at school. When students arrive at a school part-way through a term or school year, having been at another school with different routines, this challenge may become greater.

Students have better outcomes if they do not move school regularly. There is good evidence that student transience has a negative impact on student outcomes, both in New Zealand and overseas. Research suggests that students who move home or school frequently are more likely to underachieve in formal education when compared with students that have a more stable school life. A recent study found that school movement had an even stronger effect on educational success than residential movement.

There is also evidence that transience can have negative effects on student behaviour, and on short term social and health experience

Writing for The Dominion Post, in April 2014, Elinor Chisholm and  Philippa Howden-Chapman pointed out the blindingly obvious;

Continuity of education and supportive relationships with teachers are critical for children’s educational performance.

“Churn” is not good for educational performance or enrolment in primary health care, where staff can ensure children are properly immunised and chronic health problems can be followed up.

It was for this reason that, in our submission on the Social Housing Reform Bill late last year, we strongly recommended that families with school- age children should be excluded from tenancy review.

Secure tenure and stability at one school would allow children the best chance of flourishing. In high- performing countries such as the Netherlands, children are explicitly discouraged from changing schools in the middle of the school year.

The bill had announced the extension of reviewable tenancies to all state tenants (new state tenants had been subject to tenancy review since mid- 2011). However, the housing minister, as well as the Ministry of Business, Innovation and Employment, had made clear that the disabled and the elderly were to be excluded from tenancy reviews.

In our submission, we acknowledged the Government for recognising the importance of secure tenure.

People who are compelled to move house involuntarily can experience stress, loss, grief and poorer mental health. Housing insecurity is also associated with poorer physical health.

National’s policy of ending a state “house for life”;  increased tenancy reviews for state house tenants, coupled with the sale of state houses, is inimical to the stabilisation of vulnerable families; the well-being of children in those families; and to communities.

In 2008, Housing NZ owned 69,000 rental properties.

By 2016, that number had dropped significantly to 61,600 (plus a further 2,700 leased).  National had disposed of some 7,400 properties.

Between 2014 and 2016, at least 600 state house tenants lost their homes after “reviews”.

This, despite our growing population.

This, despite John Key’s own family having been provided with the security of a state house, and Key enjoying a near-free University education.

This, despite John Key, ex-currency trader,  and multi-millionaire, admitting in 2011 that New Zealand’s under-class was growing.

.

Key indicator #3: Incomes & Inequality

.

In June 2014, Oxfam reported on New Zealand’s growing dire child poverty crisis;

The richest ten per cent of New Zealanders are wealthier than the rest of the population combined as the gap between rich and poor continues to widen.

Oxfam New Zealand’s Executive Director Rachael Le Mesurier said the numbers are a staggering illustration that the wealth gap in New Zealand is stark and mirrors a global trend that needs to be addressed by governments in New Zealand, and around the world, in order to win the fight against poverty.

“Extreme wealth inequality is deeply worrying. Our nation is becoming more divided, with an elite who are seeing their bank balances go up, whilst hundreds of thousands of New Zealanders struggle to make ends meet,” said Le Mesurier.

Figures for the top one per cent are even more striking. According to the most recent data, taken from the 2013 Credit Suisse Global Wealth Databook, 44,000 Kiwis – who could comfortably fit into Eden Park with thousands of empty seats to spare – hold more wealth than three million New Zealanders. Put differently, this lists the share of wealth owned by the top one per cent of Kiwis as 25.1 per cent, meaning they control more than the bottom 70 per cent of the population.

Oxfam New Zealand’s Executive Director, Rachael Le Mesurier, was blunt in her condemnation;

“Extreme inequality is a sign of economic failure. New Zealand can and must do better. It’s time for our leaders to move past the rhetoric. By concentrating wealth and power in the hands of the few, inequality robs the poorest people of the support they need to improve their lives, and means that their voices go unheard. If the global community fails to curb widening inequality, we can expect more economic and social problems.”

A 2014 OECD report placed New Zealand as one of the worst for growing inequality;

.

oecd-2014-income-inequality-increased-in-most-oecd-countries

.

Not only was inequality a social blight, but according to the report it impacted negatively on economic growth;

Rising inequality is estimated to have knocked more than 4 percentage points off growth in half of the countries over two decades. On the other hand, greater equality prior to the crisis helped increase GDP per capita in a few countries, notably Spain.

According to the OECD assessment,  income inequality had impacted the most on New Zealand, with only Mexico a close second;

.

oecd-2014-estimated-consequences-inequality-cumulative-growth

.

The OECD Report went further, making this “radical” observation;

The most direct policy tool to reduce inequality is redistribution through taxes and benefits. The analysis shows that redistribution per se does not lower economic growth.

The statement went on to “qualify”  any suggestion of socialism with a caveat. But the declaration that “analysis shows that redistribution per se does not lower economic growth” remained, constituting a direct contradiction and challenge to current neo-liberal othodoxy.

In August 2015, former City Voice editor, and now NZ Herald social issues reporter, Simon Collins revealed the growing level of child poverty in this country;

The Ministry of Social Development’s annual household incomes report shows that the numbers below a European standard measure of absolute hardship, based on measures such as not having a warm home or two pairs of shoes, fell from 165,000 in 2013 to 145,000 (14 per cent of all children) last year, the lowest number since 2007.

Children in benefit-dependent families also dwindled from a recent peak of 235,000 (22 per cent) in 2011, and 202,000 (19 per cent) in 2013, to just 180,000 (17 per cent) last year – the lowest proportion of children living on benefits since the late 1980s.

But inequality worsened because average incomes for working families increased much faster at high and middle-income levels than for lower-paid workers.

The net result was that the number of children living in households earning below 60 per cent of the median income after housing costs jumped from a five-year low of 260,000 in 2013 to 305,000 last year, the highest since a peak of 315,000 at the worst point of the global financial crisis in 2010.

In percentage terms, 29 per cent of Kiwi children are now in relative poverty, up from 24 per cent in 2013 and only a fraction below the 2010 peak of 30 per cent.

In September 2016, Statistics NZ confirmed the widening of  income inequality from 1988 to 2015,  between households with high  and  low incomes;

  • In 2015, the disposable income of a high-income household was over two-and-a-half times larger than that of a low-income household.
  • Between 1988 and 2015, the income inequality ratio increased from 2.24 to 2.61.  

.

income-inequality-nz

.

The neo-liberal “revolution” took place from the mid-to-late 1980s. Hardly surprisingly, the rise in income inequality takes place at the same time.

Income inequality dipped from 2004 when Labour’s “Working for Families” was introduced.

However, income inequality worsened after 2009 and 2010, when National cut taxes for the rich; increased GST (which impacts most harshly on low-income families and individuals); and increased user-charges on essential services such as prescription fees, ACC levies, court fees, etc. Increasingly complicated WINZ requirements for annual re-applications for benefits and complex paperwork may also have worsened the plight of the country’s poorest.

Despite all the promises made by the Lange government; the Bolger government; and every government since, our neo-liberal “reforms” have not been kind to those on low and middle incomes.

.

Key indicator #4: Child poverty

.

According to Otago University’s Child Poverty Monitor in 2014;

Child poverty has not always been this bad – the child poverty rate in the New Zealand many of us grew up in 30 years ago was 14%, compared to current levels of 24%.

Thirty years prior to 2014 was the year 1984. David Lange’s Labour Party had been elected to power.

Roger Douglas was appointed Minister of Finance. The Member for Selwyn, Ruth Richardson, was also in Parliament, taking notes.

The term “trickle down” entered our consciousness and vocabulary. It promised that, with tax cuts; privatisation; winding back state services; and economic de-regulation, wealth would trickle down to those at the bottom of the socio-economic ladder.

How is that working out for us so far?

.

living-in-cars-rheumatic-fever-mouldy-houses-hungry-children-new-zealand

.

So much for  the “aspirational dream” offered to us by “trickle down” economics.

.

Key indicator #5: The Real Beneficiaries

.

In June last year, Radio NZ reported  the  latest survey of household wealth by Statistics NZ. It found;

“…the country’s richest individuals – those in the top 10 percent – held 60 percent of all wealth by the end of July 2015. Between 2003 and 2010, those individuals had held 55 percent. The richest 10 percent of households held half of New Zealand’s wealth, while the poorest 40 percent held just 3 percent of total wealth.”

.

radio-nz-wealth-income-inequality-new-zealand

.

Following hard on the heels of the Stats NZ report,  Oxfam NZ made a disturbing revelation;

.

wealth-inequality-in-nz-worse-than-australia

.

Three years after her previous public warning,  Oxfam New Zealand’s, Rachael Le Mesurier, was no less scathing. Her exasperation was clear;

“The gap between the extremely wealthy and the rest of us is greater than we thought, both in New Zealand and around the world. It is trapping huge numbers of people in poverty and fracturing our societies, as seen in New Zealand in the changing profile of home ownership.”

National minister, Steven Joyce responded. He was his usual mealy-mouthed self when interviewed on Radio NZ about the Oxfam report;

“There’s always inequality but again you have got to look at those reports carefully because in that report a young medical graduate who has just come out of university would be listed as somebody who is in the poorest 20 per cent because they have a student loan.They’ll pay that student loan off in about four years and they’ll be earning incomes of over $100,000 very quickly.

So although they’re in those figures today, they won’t be in those figures in five years’ time.”

Which appears to sum up the National government’s head-in-sand attitude on child poverty and income inequality.

Economist, Shamubeel Eaqub, though, had a different “take” on the issue and warned;

“Every time we see a new statistic on inequality, whether it’s in terms of income, opportunities or wealth, it shows very clearly that New Zealand is being ripped apart by our class system.”

When economists begin to issue dire social warnings, you know that matters have taken a turn for the worse.

So where does that leave our New Dear Leader Bill English  with his insistence  that “we’ve got a government actually with a good record on addressing, in fact, some of the toughest social issues”?

English’s assertion to John Campbell on Radio NZ, on 25 January, (outlined at the beginning of this story) makes sense only if it it is re-phrased;

“We’ve got a government actually with a good record on addressing, in fact, some of the toughest wealth-accumulation issues. There may be disagreement over means by which we’re doing it, ah, but our direction is pretty clear. And you know over, certainly heading into election year we think that the approach the government’s developed around private investment, around increasing incomes for the wealthiest ten percent is the right kind of mix – “

Not a very palatable message – but vastly more truthful as income inequality continues to wreak appalling consequences throughout our communities and economy.

Otherwise, English appears to reside not so much in the Land of the Long White Cloud, but in the Realm of Wishful Thinking.

.

.

.

References

Radio NZ: Checkpoint – Bill English on the challenges of his first month as PM

Scoop media: Unemployment rate rises to 5.2 percent as labour force grows

Statistics NZ: Household Labour Force Survey – Revisions to labour market estimates

NZ 1984 Yearbook: 3A – General SummaryCensus of population and dwellings 1981 (see “Tenure of Dwelling”)

Statistics NZ: Owner-Occupied Households

Statistics NZ: 2013 Census QuickStats about national highlights – Home Ownership

Interest.co.nz: Bernard Hickey says the collapse in home-ownership rates among families formed since 1991 is an unfolding disaster for NZ’s economy, our society and the Government’s finances

International Demographia: 13th Annual  International Housing Affordability

NZ Institute for Economic Research: The home affordability challenge

Monetary Meg: What is vendor finance?

Radio NZ: NZ immigration returns to record level

NZ On Screen: Revolution

NZ Herald: New Zealand residential property hits $1 trillion mark

Reserve Bank: Regulatory Impact Assessment of revised LVR restriction proposals September 2016 – Adequacy Statement

The Guardian: New Zealand housing crisis forces hundreds to live in tents and garages

Fairfax media: One in 100 Kiwis homeless, new study shows numbers quickly rising

Al Jazeera: New Zealand’s homeless: Living in cars and garages

NZ Herald: Homelessness rising in New Zealand

Radio NZ: Homeless family faces $100k WINZ debt

TV3 News: The hidden homeless – Families forced to live in cars

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

UNICEF: Let’s Talk about child poverty

Education Counts: Transient students

Dominion Post: Housing policy will destabilise life for children

NZ Herald: State housing shake-up – Lease up on idea of ‘house for life’

Radio NZ: Thousands of state houses up for sale

Housing NZ: Annual Report 2008/09

Housing NZ: Annual Report 2015/16

Fairfax media: Nearly 600 state house tenants removed after end of ‘house for life’ policy

NZ Herald: Key admits underclass still growing

Oxfam: Richest 10% of Kiwis control more wealth than remaining 90%

NZ Herald: 300,000+ Kiwi kids now in relative poverty

Statistics NZ: Income inequality

Law Society: Civil court fee changes commence

Fairfax media: Prescription price rise hits vulnerable

Salaries.co.nz: ACC levies to increase in April 2010

Radio NZ: Thousands losing benefits due to paperwork

Scoop media: Health Issues Highlighted in Child Poverty Monitor

NZ Herald: Hungry kids foraging in pig scraps ‘like the slums of Brazil’

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

NZ Herald: More living in cars as rents go through roof

NZ Doctor: Tackle poverty to fight rheumatic fever

Radio NZ: 10% richest Kiwis own 60% of NZ’s wealth

Fairfax media: Wealth inequality in NZ worse than Australia

Radio NZ: Steven Joyce responds to Oxfam wealth inequality report

Additional

Dominion Post: Kids dragged from school to school

Other Blogs

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

Previous related blogposts

Lies, Damned lies and Statistical Lies

Lies, Damned lies and Statistical Lies – ** UPDATE **

National exploits fudged Statistics NZ unemployment figures

2016 – Ongoing jobless tally and why unemployment statistics will no longer be used

CYF – The Hollowing Out of a State Agency

The Mendacities of Mr Key # 18: “No question – NZ is better off!”

Foot in mouth award – Bill English, for his recent “Flat Earth” comment in Parliament

The Mendacities of Mr English – Fibbing from Finance Minister confirmed

Rebuilding the Country we grew up in – Little’s Big Task ahead

.

.

.

200415bodycartoongif

.

This blogpost was first published on The Daily Blog on 7 February 2017.

.

.

= fs =

Matthew Hooton on “secret” UMR poll?

.

Red Green Up

.

On Monday 11 July, right-wing commentator Matthew Hooton was making his regular appearance on Radio NZ’s Nine To Noon Political Panel programme. The host was Kathryn Ryan, the commentator from the Left was Stephen Mills.

During the debate on Labour’s recently-released housing policy, Matthew Hooton made this startling revelation;

.

Matthew Hooton, right-wing commentator and Director of 'Exceltium' PR company

Matthew Hooton, right-wing commentator, columnist, and Director of ‘Exceltium’ PR company

.

@ 10.25

Matthew Hooton: “And Labour’s at twenty eight percent… And, and, look here’s the thing, Labour, in the latest UMR poll for June, done by Steven’s polling company, Labour was at twenty eight percent, Greens at sixteen. So we are, so they will need to increase because currently they’re polling worse than Jeremy Corbyn.”

Kathryn Ryan: “And where is National at, in that poll?”

Matthew Hooton: “Forty two.”

Using a search engine I could find no reference to any poll carried out in June having been released.

Through Twitter, I asked if Matthew could clarify his comment regarding such a UMR poll. He promptly replied, confirming his statements on Radio NZ;

.

matthew hooton - umr poll - twitter - radio nz - nine to noon

.

When I asked for a source, Matthew replied;

“No. It’s secret.”

I have no way of confirming the validity of Matthew’s assertion of the existence of a secret poll by UMR. He could be mischief-making, for which he occasionally has some inclination.

Yet…

The alleged UMR polling bears striking similarity to a recent Roy Morgan poll released on 20 June;

.

roy morgan poll - new zealand - june 2016

.

In the Roy Morgan poll above, 5.5% were Undecideds.

According to Hooton’s “secret poll”, a combined Labour-Green rating of 44%  has over-taken National on 42%.

If the so-called “secret poll” is legitimate, then that explains the recent flurry of panicked activity from National to counter Labour’s recently released housing policy.

The next few polls will be  Crunch Time for National and if they bear out Roy Morgan and the “secret UMR Poll” – then we are indeed witnessing the decaying administration of John Key’s third term government.

The rich irony of such a crisis for an incumbent government is that attempting to avert the down-ward spiral becomes a hopeless exercise. The more policies they “throw” at a problem, the greater the public’s perception that they are panicking.

“Policy-making on the hoof” reached new levels of comic-absurdity when the “Fixit Minister”, Steven Joyce, announced by Twitter that Housing NZ would forego dividend-payments to the National government for the next two years;

.

steven joyce - dickhead - twitter - housing nz - dividends

.

Shipley’s short-lived administration and Helen Clark’s final three years were marked by similar acts of desperate ad hocery. (But without “Tweeting” sudden  policy lurches.)

Our esteemed Dear Leader may be about to discover the same fate.

.

Addendum

Roy Morgan polls are considered more accurate because they call respondents using both landlines and mobile telephones. (See: Census, Surveys, and Cellphones)

.

.

.

References

Radio NZ: Nine To Noon – Political commentators Matthew Hooton and Stephen Mills

Twitter: Mathew Hooton

Roy Morgan Poll: National and Labour down in June but New Zealand First still holds the balance of power if Election was held now

Twitter: Steven Joyce

Other bloggers

Chris Trotter: Tricky Customer – Why Is Matthew Hooton Accusing John Key’s Government Of Lurching To The Left?

Chris Trotter: The Terrifying Radicalism of Matthew Hooton

Previous related blogposts

Mr Morgan phoned (2013)

Census, Surveys, and Cellphones (2013)

Census, Surveys, and Cellphones (Part rua) (2013)

Latest Roy Morgan poll – wholly predictable results and no reason to panic (2015)

The slow dismantling of a Prime Minister – downward slide continues

.

.

.

6a00d83451d75d69e20154362ebac8970c-450wi

.

This blogpost was first published on The Daily Blog on 14 July 2016.

.

.

= fs =

Letter to the editor: Setting it straight on user-pays in tertiary education

19 February 2016 4 comments

.

Frank Macskasy - letters to the editor - Frankly Speaking

.

Labour’s promise of a return to (limited) free tertiary education appears to be unsettling some, for whom the last thirty years has been dominated by the implementation and bedding-in of  user-pays (often gradually, so as not to spook the punters) ; reduced-tax; and minimalist-government ideology;

.

letter to editor - the wellingtonian - sue usher - student debt

.

I replied to Ms Usher’s public expression of “guilt twinges”…

.

from: Frank Macskasy <fmacskasy@gmail.com>
to: The Wellingtonian <editor@thewellingtonian.co.nz>
date: Sat, Feb 13, 2016
subject: Letter to the editor

.

The editor
The Wellingtonian

.

Sue Usher defends user-pays in Universities, asserting, “anyone who takes out a loan on anything surely knows that there’s no such thing as a free lunch; you are not given money, you are lent it”. (letters, 11 Feb)

Prior to 1992, there were no student loans/debt. Tertiary education was paid from taxes, with the expectation that graduates would, in turn, pay for following generations.

That was the social contract.

That contract dissolved when successive governments introduced user-pays, with seven tax cuts in 1986, 1988, 1996, 1998, 2008, 2009, and 2010. The burden of higher education shifted from society, onto individuals. By 2014, student debt reached $14.8 billion.

Ms Usher admits this unfairness, “I acknowledge that repaying a loan and trying to buy a first home is a mighty challenge and feel slightly guilty that my generation did not have any such system”.

John Key and Tertiary Education minister, Steven Joyce, should also feel a twinge of guilt. Both obtained their University degrees free, paying almost nothing.

Those who parrot the cliche that education is a “private good” should consider if our doctors, scientists, engineers, teachers, et-al, all decided to pack up and move overseas.

Or if none of us could read and write.

Education benefits us all, which user-pays fails to recognise.

.

-Frank Macskasy

.

[address and phone number supplied]

.

.

.

Additional

Salient: A short history of tertiary education funding in New Zealand

Ministry of Education: Student Loan Scheme Annual Report 2014

IRD: Student Loan Scheme Amendment Act 2014 – Arrest at border

Fairfax media: Joyce defends student loan crackdown

Fairfax media: Student loan arrest could prompt others to address debt

NZ Herald: ‘I don’t think I’m a criminal’

Teara.govt.nz: National Party – The ‘mother of all budgets’

Sunday Star Times: Politics – John Key – A snapshot

Wikipedia: Steven Joyce

National Party: Steven Joyce

Related blogposts

Letter to the Editor: Steven Joyce – Hypocrite of the Year

The Mendacities of Mr Key # 16: No one deserves a free tertiary education (except my mates and me)

.

This blogpost was first published on The Daily Blog on 14 February 2016.

.

.

= fs =

The Mendacities of Mr Key # 16: No one deserves a free tertiary education (except my mates and me)

11 February 2016 9 comments

.

student-loans-debt

.

Prologue

As reported in a previous blogpost last year (Steven Joyce – Hypocrite of the Week);

Fun Fact #1: Student loan stood at $14.235 billion, as at 30 June 2014 – up from 9.573 billion in 2008.

*Up-date* – Student loan stood at  $14.837 billion as at 30 June 2015 – up from $14.235 billion in 2014.

Fun Fact #2: As at 30 June 2013, 721,437 people had an outstanding student loan, registered with Inland Revenue. That’s roughly 16% of the population.

Fun Fact #3: Approximately 1.2 million people – roughly a quarter of the population –  have taken out  student loans.

Fun Fact #4: Students have borrowed $20.119 billion of which  $9.157 billion has been collected in loan repayments.  More than 415,000 loans have been fully repaid.

Fun Fact #5: $1.031.7 billion in loan repayments were received, $22.2 million less than last year. The total number of students completing formal qualifications reached 144,000 in 2013 – a decrease of 0.6% from 2012. The number of people enrolled in tertiary education has dropped, from  504,000 in 2005 to  about 420,000 (in 2014).

Fun Fact #6: The student fees/debt system began in 1992. Prior to that, students  had access to Bursaries and Student Allowances and tuition fees were minimal.

Fun Fact #7: “The median borrowing increased – from $7,441 in 2013 to $7,708 in 2014. The median loan balance also increased – from $13,882 in 2013 to $14,421 in 2014. Both were driven by higher fee borrowing: fees are rising and students are more likely to take more expensive courses. In the 2014 academic year, 72.4% of eligible students took out a loan, down from 73.8% in 2013… The number of borrowers in default has declined slightly on 2013/14, but the amount in default has increased.”

Fun Fact #8: On 17 May 2013, National announced new legislation would give the IRD powers to arrest loan defaulters at “the border” (ie, airports) if they are “about to leave or attempt to leave New Zealand after returning from overseas”.

Fun Fact #9: On 18 January this year, the first person arrested at the border for non-payment of a student debt was a 40-year-old with  an  outstanding debt that, with interest,  had ballooned from $40,000 to $130,000.

Fun Fact #10: The Prime Minister, John Key, and Tertiary Education Minister, Steven Joyce, both received near-free tertiary education, paid nearly entirely by the New Zealand taxpayer.

Sources: Ministry of Education, Beehive, NBR, and The Wireless

Some Recent History: 1972 – 1992

Prior to 1992, tertiary education at Universities was mostly free, with minimal course fees. On top of which, a student allowance plus part-time paid employment, was usually sufficient for students to graduate with minimal debt hanging over them.

This allowed graduates to start their adult lives, careers, and families with only as much debt as they chose to take on. This was usually in the form of a mortgage and business start-up costs (if they elected to be self-employed).

Those that earned more in a professional capacity, paid a higher rate of tax. This ensured that those who stood to gain the most, financially, from a near-free tertiary system, paid more in taxation. This – in part – assisted funding for future generations to move through the tertiary education system.

Those that did not achieve high income-brackets could contribute in other ways.

When National’s Ruth Richardson became Finance Minister in 1990, the social contract between generations “paying it forward” was broken. University fees were increased; student loans were made available to cover payment for increasing user-pays;

.

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

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

Acknowledgement of image: NZ Herald

.

Ironically, Ruth Richardson herself was a beneficiary of New Zealand’s then near-free tertiary education system. In 1972, she graduated from the University of Canterbury with a Bachelor of Law  (Honours).  She immediately went to work – debt-free – for the NZ Department  of  Justice  (NZ).

She has made herself a Limited Liability Company, ostensibly to minimise her tax “liabilities”.  According to her website, her husband is General Manager of “Ruth Richardson Ltd”.

Some Recent History: 1986 – 2010

Though the tertiary education system was far from perfect – for example polytechnics could charge higher student fees – it offered near-free higher education and taxpayers were ultimately beneficiaries of a system that produced doctors, engineers, scientists, and other skilled professionals to take New Zealand into the 21st Century.

Even those who went overseas in pursuit of lucrative work gained valuable experience which benefited the country as a whole, upon their return.

Unfortunately, the social contract between generations was broken as the Lange-Douglas Labour Government implemented neo-liberal policies that included user-pays as a new concept upon which to base State/individual transactions.

Labour did not implement user-pays in tertiary education – but it laid the fertile ground for the following Bolger-Richardson National government to radically change University funding for course fees.

For the right-wing Labour (of the 1980s) and National, smaller government meant tax-cuts, and from 1986 there were no less than seven cuts to taxation;

1 October 1986 – Labour

1 October 1988 – Labour

1 July 1996 – National

1 July 1998 – National

1 October 2008 – Labour

1 April 2009 – National

1 October 2010 – National

Each cut to taxation has meant less revenue for the government and resulted in either reductions to social services, and/or increases in user-pays.

The ballooning of “voluntary” school fees to over a billion dollars since 2000 is the clearest example yet of  tax-cuts making way for the covert rise in user-pays for what is supposedly “free” schooling in this country.

The under-funding of schools and desperate need for parents’ “donations” has become such a pressing problem that Patrick Walsh, of the Principals Association of New Zealand,  has openly suggested that the ideal of  free education should be abandoned;

“I think the basic principle is you undertake a study … of what it costs to actually run a school, all the operational costs including staffing, and you either fund it to the level it actually costs, or you say the pie isn’t big enough to support that and we will now allow schools to charge parents for some of the services.”

Perhaps Walsh has a point. It would at least acknowledge the current semi-user-pays system as a reality, rather than fooling ourselves with dishonest and quaint notions of “school donations”.  Only then might New Zealanders clearly comprehend how we have arrived at a toxic mix of tax-cut bribes and implementation-by-stealth of user-pays in education, and other state services.

Education is not the only state service suffering from lack of adequate funding, as recent media reports from Canterbury and Waikato DHBs indicate. The increasing waiting times for public operations, and painful suffering of people with debilitating medical conditions,  is a telling indicator that our health care system is ailing through lack of funding.

A September 2012 Treasury paper,  “Average Marginal Income Tax Rates for New Zealand, 1907-2009“, revealed;

In 1900 tax revenues were approximately 8% of GDP. They rose to 28% of GDP during WWII and to a high of 37% in 2006. Currently tax revenues make up around 29% of GDP.

.

government-tax-revenue-by-source-1903-2011

.

Source

Taxation has fallen – as have once-free services which New Zealanders took for granted. At the same time, population growth has put pressure on (reduced) government revenue and spending.

In 1984 the population stood at 3,175,737 (as at 1981 Census).

By 2013: our population had swelled by over a million to 4,242,048 (as at 2013 Census).

We are spending less, for more people, to meet expectations that are simply unrealistic after seven tax cuts.

Rather unsurprisingly, the consequences of successive tax-cuts have been predictable, and well-reported in the media;

According to the most recent data, taken from the 2013 Credit Suisse Global Wealth Databook, 44,000 Kiwis – who could comfortably fit into Eden Park with thousands of empty seats to spare – hold more wealth than three million New Zealanders. Put differently, this lists the share of wealth owned by the top one per cent of Kiwis as 25.1 per cent, meaning they control more than the bottom 70 per cent of the population.

New Zealand’s wealthiest individual, Graeme Hart, is ranked number 200 on the Forbes list of the world’s billionaires, with US$7 billion. That makes his net worth more than the bottom 30 per cent of New Zealanders, or 1.3 million people. 

The Progressive Response

January 31st marked a giant step Kiwi-kind that – if endorsed by voters – could prove to be the the first nail-in-the-coffin for user-pays.

Labour leader, Andrew Little, announced a policy that, while seemingly radical in the 21st century, was common-place policy in this country pre-1980s.

.

Labour's announcement welcomed and slammed

.

Little proposed;

“… that the next Labour government will invest in three years of free training and education after high school throughout a person’s life.

[…]

Three years of free skills training, of apprenticeships or higher education right across your working life.”

He then pointedly explained not just where the money would come from – but that bribes in the form of  successive tax-cuts had under-mined our once-proud cultural expectations of state-provided services;

“The money is there – the Government just has it earmarked for tax cuts. We will use that money instead to invest in New Zealand’s future.”

In effect, this would be a massive admission of failure in user-pays, and the beginning of rolling back thirty years of New Right doctrine.

The Neo-Libs Strike Back

The response of the National Party and it’s front-organisation, the so-called “Taxpayers’ Union“, has been utterly predictable.

From Tertiary Education minister, Steven Joyce, came these two ‘clangers’ via Twitter;

.

Steven joyce - tertiary education - hypocrite

Source

Source

.

Judging by the angry responses on Joyce’s Twitter account, his comments were more provocative and self-defeating, than achieving any ‘hits’ on Labour’s policy-announcement.

John Key fared little better after his jaw-dropping gaffe on this issue;

.

John Key draws flak after questioning why waitresses' taxes should fund students

.

Aside from the usual tactic of playing on low-paid workers’ dire plight to criticise free education (or free anything provided by the State), links were quickly drawn to Key’s on-going assault on waitress Amanda Bailey, in Auckland’s Rosie Cafe;

Prime Minister John Key has drawn a barrage of criticism after questioning if Labour’s fee free study policy was fair on waitresses who would be paying tax to subsidise students.

His comments also drew a quick response from some critics on social media who drew the link with Key’s repeated pulling of Auckland cafe waitress Amanda Bailey’s ponytail.

Key’s rhetorical question attempted to paint free tertiary education as unfair on low-paid workers;

“How much should the waitress.. how much of her taxes should go to a student who will absolutely earn a lot more?”

The question could equally be put;

“How much should the waitress.. how much of her taxes should go to…”;

  • National Ministers  gifting themselves 34 new BMWs. The last batch – bought in 2011 – are to be replaced only after about three years’ use. Cost? Unknown. According to National, the price is “commercially sensitive”. (Code for *politically embarrassing*.)
  • Subsidies and special tax concessions to Warner Bros for ‘The Hobbit‘, and to other movie companies? Cost – ongoing.

But the main question should be;

“How much should the waitress.. how much of her taxes should go to paying for tax-cuts for the top 1% of  New Zealanders.”

When National cut taxes for high-income earners in 2010, and raised GST from 12.5% to 15%, this was essentially a transfer of wealth from low-income earners to the uber-wealthy. Low income earners pay disproportionately more in GST than the wealthy.

People like Ruth Richardson can structure their tax-affairs by registering as a limited liability company (or using Trusts and other accounting trickery) – which allows her to claim back on GST – this puts the rest of us at a distinct disadvantage.

Other companies such as Facebook and Apple have made big profits in New Zealand, but paid minimal tax. Facebook paid $23,034 in 2013/14 (out of alleged revenue of just $846,391), whilst Apple paid $5.5 million in 2012/13 (out of $571 million revenue).

As for criticisms from the so-called “Taxpayers Union” – this is a front-organisation for National. It’s organisers are party apparatchiks from National and ACT;

Jordan Williams is closely connected to the likes of David Farrar, Cameron Slater, and Simon Lusk – all of whom are hard-Right National/ACT supporters and apparatchiks.

Right-wing blogger, David Farrar, is one of the  Board members of the Taxpayers Union. He has been a member of the National Party since 1986, as his candid Disclosure Statement on Kiwiblog reveals.

John Bishop; businessman; columnist for the right-leaning NBR; and authored a “puff piece” on National’s Deputy Leader, Bill English; Constituency Services Manager,  ACT Parliamentary Office, April 2000 – August 2002, “developing relationships with key target groups and organising events”.

Gabrielle O’Brien; businesswoman; National Party office holder, 2000-2009.

Jordan McCluskey; University student; member of the Young Nationals.

Jono (Jonathan) Brown; Administrator/Accounts Clerk at the Apostolic Equippers [Church] Wellington, which, amongst other conservative policies,  opposed the marriage equality Bill.

See: A Query to the Taxpayers Union – ***UP DATE ***

Publishing criticisms from the “Taxpayers Union” is simply another PR statement from National, masquerading as independent analysis.

People’s Exhibit #1 – The Case for Key’s and Joyce’s Hypocrisy

Undeniably the worst aspect of National’s condemnation of  free tertiary education rests with our esteemed Dear Leader, John  Key, and Tertiary Education minister, Steven Joyce.

Both men were recipients of free, tax-payer-funded, University education.

In Key’s case, his  was obtained at Canterbury University, from 1979 to 1981;

.

POLITICS - John Key - A snapshot - tertiary university education - free education

.

Has Key re-paid any of his University education? One suspects the answer is a firm “no”.

And with seven tax cuts, neither did he pay for it with taxation, as high-income earners paid less and less since 1986 – five years before graduating.

In Joyce’s case, as first reported on 6 August 2015, in a previous blogpost;

  1. Steven Joyce, born: 1963.

  2. After completing a zoology degree at Massey University, Steven started his first radio station, Energy FM, in his home town of New Plymouth, at age 21 (1984).

  3. Student Loan system is started: 1992.

Joyce completed his University studies and gained his degree eight years before the Bolger-led National government introduced student fees/debt in 1992.

One wonders how Joyce reconciles his free tertiary education – as well as benefiting from seven tax-cuts, along with John Key – with justifying National’s  issuing warrants-to-arrest for loans defaulters;

Just because people have left New Zealand it doesn’t mean they can leave behind their debt.  The New Zealand taxpayer helped to fund their education and they have an obligation to repay it so the scheme can continue to support future generations of students.

Key and Joyce never paid for their free University tuition.

Yet they expect other New Zealanders who followed in their foot-steps to pay for theirs.

Or face arrest.

What does it say about us as a nation, when we elect hypocrites as our elected representatives, who bludge of the tax-payer?

If this does not fly in the face of New Zealanders’ values of fairness and giving everyone a fair go – then we are not the same people we once were.

Postscript

Tweet from Steven Joyce, condemning Labour’s policy for free tertiary education;

.

Steven joyce - tertiary education - hypocrite - achieving nothing

.

Can we take it from the Tertiary Education Minister that his own university education “achieved absolutely nothing”?

.

.

.

References

National Business Review: Budget 2015 – student loans – does the government dare to act?

Ministry of Education: Student Loan Scheme Annual Report 2014

Beehive.govt.nz: Celebrating student support under Labour

Ministry of Education: Student Loan Scheme Annual Report 2015

The Wireless: Getting by on a student budget

IRD: Student Loan Scheme Amendment Act 2014 – Arrest at border

Fairfax media: Joyce defends student loan crackdown

Fairfax media: Student loan arrest could prompt others to address debt

NZ Herald: ‘I don’t think I’m a criminal’

Teara.govt.nz: National Party – The ‘mother of all budgets’

Statistics NZ: Annual unemployment rate has increased from 1987

Ruth Richardson NZ Ltd: Ruth Richardson CV

Ruth Richardson NZ Ltd: Home page

Fairfax media: ‘Free’ education cost set to mount to more than $1 billion

Fairfax media: ‘Human scandal’ as Christchurch elderly refused access to surgeries

Fairfax media: ‘Painful wait’ for surgery

NZ Treasury:  Average Marginal Income Tax Rates for New Zealand, 1907-2009

NZ 1984 Yearbook: 3A – General Summary – Increase of population

Statistics NZ: 2013 Census Usually Resident Population Counts

Oxfam NZ: Richest 10% of Kiwis control more wealth than remaining 90%

Radio NZ: Labour’s announcement welcomed and slammed

Andrew Little: State of the Nation speech

Twitter: Steven Joyce

Twitter: Steven Joyce

Fairfax media: John Key draws flak after questioning why waitresses’ taxes should fund students

NZ Herald: Govt backtracks on limo statements

NZ Herald: Complaints laid against Murray McCully over Saudi farm deal

Radio NZ: Saudi abattoir deal will proceed – PM

Fairfax media: NZ government shells out $11m on New York apartment for UN representative

Fairfax media: NZ diplomat involved in decision to buy $6.2m luxury Hawaiian mansion

Otago Daily Times: Smelter gets Meridian, Govt lifeline

Rio Tinto.com: Rio Tinto announces a 10 per cent increase in underlying earnings to $10.2 billion and 15 per cent increase in full year dividend

NZ Herald: GST rise will hurt poor the most

Fairfax media: Time to pay some tax, Facebook?

NZ Herald: Apple’s NZ unit coughs up 0.4pc tax

Kiwiblog: Disclosure Statement

Sunday Star Times: Politics – John Key – A snapshot

Wikipedia: Steven Joyce

National Party: Steven Joyce

Fairfax media: IRD monitoring 20 for possible arrest in student loan repayment crackdown

Additional

Salient: A short history of tertiary education funding in New Zealand

NZ Herald: Minister to students – ‘keep your heads down’

Other bloggers

The Daily Blog: John Key said WHAT about waitresses’???

The Daily Blog: Why does Steven Joyce hate education so much?

Previous related blogposts

A Query to the Taxpayers Union

A Query to the Taxpayers Union – ***UP DATE ***

Know your Tory fellow travellers and ideologues: John Bishop, Taxpayers Union, and the NZ Herald

Greed is good?

It’s official: Political Dissent Discouraged in NZ!

Shafting our own children’s future? Hell yeah, why not!

Hon. Paula Bennett, Minister of Hypocrisy

Budget 2013: How NOT to deal with Student loan defaulters

Budget 2013: Student debt, politicians, and “social contracts”

Steven Joyce – Hypocrite of the Week

Anne Tolley’s psycopathy – public for all to see

Letter to the Editor: Steven Joyce – Hypocrite of the Year

The Mendacities of Mr Key # 15: John Key lies to NZ on consultation and ratification of TPPA

.

.

.

*Note: For New Zealand audiences, simply replace "Social Security" with Superannuation, and "Medicare" with public health system.

*Note: For New Zealand audiences, simply replace “Social Security” with Superannuation, and “Medicare” with public health system.

.

This blogpost was first published on The Daily Blog on 7 February 2016.

.

.

= fs =