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Posts Tagged ‘Steven Joyce’

That was Then, This is Now #29 – Joyce’s $11.7 billion hole – goneburger!

9 October 2018 1 comment

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Billions of dollars extra cash that are there that they could dip into“, eh?

It would appear that Ms Kaye has inadvertently ‘sunk’ Steven Joyce’s claims of Labour’s $11.7 billion “hole” made during last year’s election campaign.

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References

National Party: Labour must explain where the money is (alt-link: Scoop media)

Radio NZ:  Govt’s tertiary fees free policy wrong priority – Nikki Kaye (alt-link)

Previous related blogposts

That was Then, This is Now #28 – John Key on transparency

Dollars and sense – Joyce’s hypocrisy

St. Steven and the Holy Grail of Fiscal Responsibility

National’s $11.7 billion hole is right where they left it

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This blogpost was first published on The Daily Blog on 4 October 2018.

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St. Steven and the Holy Grail of Fiscal Responsibility

30 November 2017 3 comments

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National’s Steven Joyce is up to his old tricks, pontificating and lecturing the new Coalition government on “fiscal correctness”

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Which called for this timely reminder to the former Minister of Finance…

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from: Frank Macskasy <fmacskasy@gmail.com>
to: NZ Herald <letters@herald.co.nz>
date: 22 November 2017
subject: Letter to the editor

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The editor
NZ Herald

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Former Finance Minister, Steven Joyce, rails against the Coalition government’s plans to introduce a regional fuel tax for Auckland, claiming;

“Because if they controlled their costs properly they’d be able to have the sort of money, the $150 million a year that a regional fuel tax would generate, they’d have that in surplus if they just ran the council properly.

… ‘hey get your costs under control’.” (Radio NZ: “Auckland Council could avoid fuel tax – National Party”)

This is the same minister whose previous government racked up $70 billion in debt during their nine years term – exacerbated by two unaffordable tax cuts in 2009 and 2010, and increasing debt by $2 billion each year. (Scoop media:  “Govt’s 2010 tax cuts costing $2 billion and counting”) In effect, National borrowed money – up to $450 million per week in 2009 – from offshore to put into the pockets of mostly top income earners.

Which made a mockery of John Key’s claim in August 2008 that National’s planned tax-cuts would be “hermetically sealed” from the rest of National massive borrowing plans. (NZ Herald: “Nats to borrow for other spending – but not tax cuts”)

Let’s hope the Auckland Council doesn’t follow National’s appalling record of “controlling their costs properly”. It would bankrupt the city.

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-Frank Macskasy

[address and phone number supplied]

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Each time the Nats open their mouths to carp about the Coalition’s reforms, it is a delight to remind them of their own pitiful track record over the last nine years. And for Steven Joyce, I offer his very own:

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Postscript

It appears that Mr Joyce has taken offence at something I’ve said. The poor fragile flower has blocked me from his Twitter account;

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It is highly reassuring to know that  I have been noticed by those in high office. And amusing to realise just how incredibly thin-skinned they are.

My work continues.

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References

Radio NZ:  Auckland Council could avoid fuel tax – National Party

Scoop media:  Govt’s 2010 tax cuts costing $2 billion and counting

ODT:  Government now borrowing $450 million a week – claim

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

Twitter:  @stevenljoyce

Other blogs

Werewolf: The Myth of Steven Joyce

Previous related blogposts

Joyce, TPPA, and wine exports

Key & Joyce – competing with Paula Bennett for Hypocrites of the Year?

Steven Joyce – Hypocrite of the Week

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

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

Dollars and sense – Joyce’s hypocrisy

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This blogpost was first published on The Daily Blog on 25 November 2017.

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Dollars and sense – Joyce’s hypocrisy

7 November 2017 5 comments

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You’d think that after the humiliation of being dumped from government, that National’s ex-Ministers would keep a relatively low profile in the next few months.

You’d think that National’s former ministers and backbenchers would be familiarising themselves with their newly-appointed roles as impotent  Opposition MPs.

You’d think that National’s members of parliament would be nursing massive, Jupiter-sized hang-overs after drowning their collective sorrows at being turfed out of office by the ungrateful peasantry.

Not so.

Former Economic “Development” Minister in the Former National Government, Steven Joyce, has been busying himself  critiquing the recently-elected, newly-sworn-in, Labour-Green-NZF coalition.

Even before the dust settled on the recent election; the subsequent swearing-in ceremony at the Governor-General’s residence on 26 October, and only three days since the new government ministers have barely moved into their new offices, Joyce has been making mischief like a spoiled brat.

On 30 October, Joyce demanded;

“Mr Robertson has done two long-form interviews over this weekend and yet New Zealanders are still none the wiser about the cost of the coalition’s programme and the impact on their back pockets.”

He added,

“They also have a right to know whether the new Government’s spending plans in actual dollars will match the cast-iron commitments Labour repeatedly made before the election.”

Now bear in mind that this is the same National (ex-)government that, in 2008, campaigned on tax-cuts despite the Global Financial crisis already impacting on New Zealand’s economy that year.

On 6 October 2008, Key was only too happy to dangle the tax-cuts carrot in front of a gullible electorate, to win power;

John Key has defended his party’s planned program of tax cuts, after Treasury numbers released today showed the economic outlook has deteriorated badly since the May budget. The numbers have seen Treasury reducing its revenue forecasts and increasing its predictions of costs such as benefits. Cash deficits – the bottom line after all infrastructure funding and payments to the New Zealand Superannuation Fund are made – is predicted to blow out from around $3 billion a year to around $6 billion a year.

The rest is history. National won the 2008 election. Tax-cuts were enacted in April 2009 and October 2010.

All that despite a massive budget blow-out deficit of $15.4 billion by March 2009;

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The tax cuts were (and still are!) costing us around $2 billion per year, according to figures obtained by the Green Party from the Parliamentary Library.

New information prepared for the Green Party by the Parliamentary Library show that the estimated lost tax revenues from National’s 2010 tax cut package are between $1.6-$2.2 billion. The lost revenue calculation includes company and personal income tax revenues offset by increases in GST.

“The National Government said that their signature 2010 income tax cut package would be ‘fiscally neutral’ — paid for increased revenues from raising GST. That hasn’t happened. The net cost for tax cuts has been about $2 billion,” Green Party Co-leader Dr Russel Norman said today.

“Borrowing $2 billion in 18 months to fund upper-income tax cuts is fiscally irresponsible.

“National’s poor economic decisions have led to record levels of government debt and borrowing.

“They have also broken a promise to the electorate when they said their tax cut package was going to be fiscally neutral.”

Whilst it can be justifiably argued that New Zealand’s debt increased because of the 2008 Global Financial Crisis and two Christchurch earthquakes – both of which were out of National’s control – the loss of revenue through two unaffordable tax cuts in ’09 and ’10 were of it’s own making.

Against this backdrop of gross fiscal irresponsibility, Steven Joyce has  pontificated that “New Zealanders are still none the wiser about the cost of the coalition’s programme and the impact on their back pockets“.

It could also be argued that “most New Zealanders are still none the wiser about the cost of National’s tax-cuts and the impact on their social services“.

Steven Joyce lecturing the incoming coalition government on fiscal integrity and transparency would be like Robert Mugabe advising the U.N. on human rights.

Or like Steven Joyce telling the “truth” about a non-existent $11.7 billion “hole”.

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Postscript – A letter to the Editor

from: Frank Macskasy <fmacskasy@gmail.com>
to: Dominion Post <letters@dompost.co.nz>
date: 31 October 2017
subject:Letter to the editor

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The editor
Dominion Post

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Opposition MP, Steven Joyce, has been busying himself attacking the recently elected Labour-Green-NZ First Coalition government.

Despite barely moving into their new offices on 27 October, three days later Joyce was complaining;

“…New Zealanders are still none the wiser about the cost of the coalition’s programme and the impact on their back pockets. They also have a right to know whether the new Government’s spending plans in actual dollars will match the cast-iron commitments Labour repeatedly made before the election.”

Mr Joyce should settle down and take a deep breath. The coalition government has only been sworn in since 26 October.

The new government’s policies will be better costed than National’s unaffordable tax-cuts of 2009 and 2010. Those tax-cuts cost this country $2 billion p.a. according to the Parliamentary Library.

John Key happily over-looked NZ’s growing budget deficit, as reported on 6 October 2008;

John Key has defended his party’s planned program of tax cuts, after Treasury numbers released today showed the economic outlook has deteriorated badly since the May budget. The numbers have seen Treasury reducing its revenue forecasts and increasing its predictions of costs such as benefits. Cash deficits … is predicted to blow out from around $3 billion a year to around $6 billion a year.

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-Frank Macskasy

 

 

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References

Fairfax media: Jacinda Ardern’s new government sworn in

Radio NZ:  550 staff move office at Parliament this weekend

NZCity:  Ardern won’t budget on coalition costs

Mediaworks:  Spending plans ‘totally affordable’ – Jacinda Ardern

NZ Herald:  Recession confirmed – GDP falls

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

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

Infonews:  Government’s 2010 tax cuts costing $2 billion and counting

Fairfax media:  Which side of the fiscal hole debate are experts standing on?

Additional

Frankly Speaking: Time-line

NZ Herald:  National and Labour’s nine years in charge – what the data shows

NZ Treasury: Debt

Previous related blogposts

“Less Debt and Lower Interest Rates” – Really?

Solid Energy and LandCorp – debt and doom, courtesy of a “fiscally responsible” National Govt

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

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

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This blogpost was first published on The Daily Blog on 1 November 2017.

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National’s $11.7 billion hole is right where they left it

3 November 2017 1 comment

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Remember Steven Joyce’s claim there was a “$11.7 billion hole” in Labour pre-election budget?

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The claim of an $11.7 “fiscal hole” became a dominating irritant throughout the election campaign, even though in large part it failed simply because no one else (except Bill English) agreed that it existed.  TV3’s “Newshub” even created this now-famous, handy, infograph to illustrate the fact that Joyce and English were effectively on  their own;

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The claim has been largely forgotten, except when the Left need a handy reminder of right-wing duplicity to throw at National/ACT trolls – just to wipe any smirk of entitlement  from their silver-spoon-fed faces.

Except, on Thursday, 23 November, there was a curious – and disturbing – juxtaposition of media stories in Fairfax’s Dominion Post;

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Joyce seems curiously very sure of himself on the existence of the “hole”;

“Unfortunately, sadly, I think it looks like over time I will be proven correct. I genuinely don’t take any joy out of that because actually all that says is that the new Government is going to spend more than it said to meet its promises, and that’s because it didn’t allow enough money for other things

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Sadly I think we’ll get to the ($)11(b) over time.”

Where might this “hole” come from, if it exists?

One possible answer lay on the front page of the same edition on the Dompost;

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The report, by Fairfax journalist Rachel Thomas, revealed a massive shortfall in spending on medicines alone;

Cancer patients say they are sick of paying for their own survival after an independent report revealed a $682 million “hole” in government funding for lifesaving medicines.

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The $682m figure in Wednesday’s report from the New Zealand Institution for Economic Research (NZIER) is the amount it says would be needed to restore the community pharmaceuticals budget to 2007 levels.

In real terms, Budget spending for prescription medicines, vaccines, haemophilia treatments, nicotine replacement, and cancer medicines – sometimes administered in hospitals – dropped from 6.2 per cent in 2007 to 3.6 per cent in 2018, according to the report.

Now granted that Medicines New Zealand is a “drug lobby group” – but the NZIER which analysed the problem also revealed their methodology;

The NZIER report was commissioned by Medicines New Zealand, a drug lobby group, and collated from Pharmac annual reports and Official Information Act requests.

When former Health Minister, Jonathan Coleman, was asked to explain the massive $682 million hole in the medicines budget, his reply was;

Since 2007, almost 900,000 Kiwis had received 426 new and widened-access medicines. “It’s important to note that … Medicines NZ [has] a direct interest in increased Pharmac spending.”

Notice that Coleman – whose working relationship with DHBs has been frought over the last three years – deflected from the issue itself. His reference “to note that … Medicines NZ [has] a direct interest in increased Pharmac spending” fails to address the relevant fact that, according to NZIER, spending on medicines has fallen under the previous National government.

He deliberately evaded the question.

Which is hardly surprising given that English’s miraculous budget surpluses appear to have been made at the expense of  under-funding for services such as healthcare – including  mental health – throughout the country.

This poses some serious questions for the new Coalition government…

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from: Frank Macskasy <fmacskasy@gmail.com>
to: Dominion Post <letters@dompost.co.nz>
date: 26 November 2017
subject: Letter to the editor

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The editor
Dominion Post

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Let us recall that on 5 September, National’s then-Finance Minister and “Fix-It Man”, Steven Joyce, made a startling claim that Labour’s alternative budget concealed a $11.7 billion “hole”.

Joyce’s claim was scrutinised by economists, commentators, and even a right-wing think-tank and lobby group – and declared to be unsusubstantiated by any known facts. Only Joyce, supported by his leader Bill English, maintained the existence of a purported “hole”.

On 23 November, Fairfax reported findings by the NZIER that PHARMAC’s medicines budget was underfunded by a whopping $682 million. (“$682m ‘hole’ in medicine budget”). When asked to respond, former National Health Minister Coleman criticised those that commissioned the report – Medicines NZ, a pharmaceutical lobby group – but in no way disputed the figures.

In essence, PHARMAC’s funding budget suffered a savage cut from 6.2% in 2007 to 3.6% in 2018 – the equivalent of $682 million in vital medicines.

No wonder Joyce was so confident that a fiscal “hole” existed where none could see one.

Joyce knew precisely that the $11.7 billion “hole” was of National’s own making; a legacy “gifted” to the incoming Coalition government, and a ticking fiscal time bomb waiting to detonate as incoming Finance Minister, Grant Robertson, uncovered further hidden funding shocks.

What other “legacy gifts” has Joyce left us?

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-Frank Macskasy

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[address and phone number supplied]

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References

National Party:  Labour must explain where the money is

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

Fairfax media:  Steven Joyce sticks to $11.7 billion hole in Government budget

Fairfax media:  Cancer patients renew call for more funded medicines, as report reveals $682m ‘hole’

Radio NZ:  ‘Extraordinary’ conflict between DHBs and health officials

Other Blogs

The Standard:  Health disasters – useless Coleman in all kinds of shit

Previous related blogposts

Weekend Revelations #1 – Dr Jonathan Coleman

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

Dollars and sense – Joyce’s hypocrisy

St. Steven and the Holy Grail of Fiscal Responsibility

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This blogpost was first published on The Daily Blog on 28 November 2017.

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

11 September 2017 2 comments

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Who paid for the Budget surplus?

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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;

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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;

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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;

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Because they really are.

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Steven Joyce – Pot. Kettle. Hypocrite.

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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;

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

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Acknowledgement for above graphic: Newshub

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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;

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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;

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Peter Dunne. Ohariu. Coat-tailing.

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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.

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National’s fiscal hole?

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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…?

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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)

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

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

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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?

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* 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;

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From Al Jazeera;

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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;

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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;

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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;

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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.

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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!

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Problem…

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Solution.

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

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

25 February 2017 1 comment

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

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2017 Election – Opening Gambits and Giveaways

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

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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;

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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;

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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;

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… to more user-pays in education;

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…in healthcare;

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

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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.

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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

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

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

12 February 2017 3 comments

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Context

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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.

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Key indicator #1: Unemployment

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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.

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Key indicator #2: Housing

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– 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.

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– 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“;

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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;

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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.

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– 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;

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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;

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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.

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Key indicator #3: Incomes & Inequality

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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;

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

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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;

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

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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.  

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income-inequality-nz

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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.

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Key indicator #4: Child poverty

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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?

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

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

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Key indicator #5: The Real Beneficiaries

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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.”

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

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

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

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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.

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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

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

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Matthew Hooton on “secret” UMR poll?

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Red Green Up

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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;

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

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

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@ 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;

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

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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;

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roy morgan poll - new zealand - june 2016

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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;

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steven joyce - dickhead - twitter - housing nz - dividends

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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.

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Addendum

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

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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

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

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

19 February 2016 4 comments

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Frank Macskasy - letters to the editor - Frankly Speaking

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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;

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

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

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

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The editor
The Wellingtonian

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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.

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-Frank Macskasy

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[address and phone number supplied]

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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)

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

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

11 February 2016 9 comments

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student-loans-debt

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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;

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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

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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.

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

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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.

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Labour's announcement welcomed and slammed

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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;

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Steven joyce - tertiary education - hypocrite

Source

Source

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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;

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

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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;

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

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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;

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Steven joyce - tertiary education - hypocrite - achieving nothing

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

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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

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*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.

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

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

2 February 2016 7 comments

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Frank Macskasy - letters to the editor - Frankly Speaking

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Labour’s recent policy announcement regarding re-introducing free tertiary education met with predictable knee-jerk hysteria from the Right;

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Labour's announcement welcomed and slammed

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Though why the media still seeks comment from the so-called  “Taxpayers Union” escapes me, as they are a well-known front-group for the National Party, and are run almost exclusively by National and ACT party apparatchiks.

National’s Tertiary education minister, Steven Joyce, was somewhat frothy-mouthy with his panicky tweeting;

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Steven joyce - tertiary education - hypocrite

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Image courtesy of The Daily Blog

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Which prompted me to write letters to the editor to remind New Zealanders of a certain salient fact…

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from: Frank Macskasy <fmacskasy@gmail.com>
to: Dominion Post <letters@dompost.co.nz>
date: Sun, Jan 31, 2016
subject: Letters to the editor

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The editor
Dominion Post

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Immediatly after the release of Labour’s new tertiary education policy, which promised three years of free education, National’s Minister for Tertiary Education, Steven Joyce tweeted,

“Labour Party wants to take more than a billion dollars a year off taxpayers to achieve absolutely nothing #desperate”

Which is an irony, considering that Steven Joyce received a free university education, courtesy of the New Zealand taxpayer, before user-pays was implemented in 1992.

Even more ironic is that whilst National is unleashing the Police to arrest graduates who have not re-paid their student loans, neither Steven Joyce nor John Key have ever repaid their free University educations.

The only ones desperate are Joyce, Key, and other National ministers, who have rorted the system; gained personal benefit; and now displaying a level of hypocrisy that can only be described as breath-taking.

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-Frank Macskasy

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from: Frank Macskasy <fmacskasy@gmail.com>
to: NZ Herald <letters@herald.co.nz>
date: Sun, Jan 31, 2016
subject: Letter to the editor

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The Editor
NZ Herald
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Soon after Labour leader Andrew Little released their “new” policy advocating free tertiary education for the first three years, National’s own Tertiary Education Minister was quick to respond on Twitter;

“Labour more desperate than we all thought.Stealing massively expensive InternetMana policy on “free tertiary education from last election”

Which is astounding, for two reasons;

1. New Zealand once had free tertiary education and was readily affordable until seven tax cuts since 1986 gutted taxation-revenue, making social services less affordable and increasingly more user-pays.

2. Both John Key and Steven Joyce benefitted from a free tertiary educatyion. Yes, folks, Both Key and Joyce had their University tuition paid by the taxpayer. Neither men have ever repaid a single cent of their education.

Now Joyce is issuing comments on social media condemning the concept of free education? The same free education he personally benefitted from?!

The man’s hypocrisy is boundless.

Education was wasted on him.

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-Frank Macskasy

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[address and phone number supplied]

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References

Radio NZ: Labour’s announcement welcomed and slammed

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

Previous Prize Hypocrites

Identifying a hypocrite in three easy steps.

Judith Collins – Hypocrite of the Week

Key & Joyce – competing with Paula Bennett for Hypocrites of the Year?

Steven Joyce – Hypocrite of the Week

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Steven Joyce – Hypocrite of the Week

6 August 2015 8 comments

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joyce

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

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.

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

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During Bill English’s Budget speech on 16 May 2013, the Finance Minister made perhaps the most  extraordinary announcement that I have ever heard from a New Zealand politician;

Introducing the ability to arrest non-compliant borrowers who are about to leave New Zealand

Making it a criminal offence to knowingly default on an overseas-based repayment obligation will allow Inland Revenue to request an arrest warrant to prevent the most non-compliant borrowers from leaving New Zealand. Similar provisions already exist under the Child Support Act. This will be included in a bill later this year.

It was extraordinary on at least two levels.

The first is because a loan defaulter does not normally fall under the Crimes Act. It is what is known as a Civil matter.

If, for example, you, the reader, default on your mortgage, rent, or hire purchase, the Lender does not involve the Police (unless deliberate fraud is involved). Instead, they apply to the Courts for a remedy.

The Tenancy Tribunal and Small Claims Court are examples where litigants can take their cases before a Court, and make their claims. Police are not involved. In the Tenancy Tribunal, there are not even any lawyers (generally).

For National to intend issuing arrest warrants, for student loan defaulters, takes the matter of a civil contract into the realm of the Crimes Act.

Secondly, this law – if enacted – would not stop people leaving New Zealand. It would prevent people returning to New Zealand.

The law targets ex-students with loans  who had moved overseas; who had defaulted on their loan repayments whilst overseas; and who then returned to New Zealand (perhaps for a funeral, holiday, or visit family). Only then were were they to be  arrested at an airport as they attempted to board a plane to fly out of the country again.

Shades of former USSR and it’s Eastern Europe satellite-states!

Under such circumstances; what loan-defaulting New Zealander in their right mind would ever consider coming back to this country?

The law was enacted, and as Alex Fensome reported for Fairfax Media last year;

However, others believe the increase [in former students declaring bankruptcy whilst overseas] is down to the Government’s more aggressive pursuit of recalcitrant debtors, and an attempt by some of the borrowers to wipe their New Zealand slate clean.

Student-loan defaulters can be arrested if they try to enter or leave New Zealand, under legislation passed last year.

A few days ago, it was reported;

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IRD monitoring 20 for possible arrest in student loan repayment crackdown - student debt - steven joyce.

To complete National’s Soviet-style crack-down on loan defaulters, the story also reported;

Ministers have also considered refusing to renew passports for those who do not engage with Inland Revenue.

As Finance Minister Bill English desperately tries to balance the government’s books and return to a Budget Surplus, it appears that National Ministers are prepared to go to any extraordinary lengths to claw back cash from New Zealanders. Whether those New Zealanders are low-paid paper-delivery boys and girls or the sick needing medication or ex-pat New Zealanders living overseas – this government is reaching deep into peoples’ pockets.

Tertiary Education Minister Steven Joyce said this about 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.

Which, when one looks into Joyce’s background, finds something curious.

Steven Joyce,  benefitted from a free, tax-payer funded, University education, with no debt incurred from his  tuition.

The facts are simple;

  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.

Joyce’s university education was mostly free, except for minimal course fees. He was most likely  also eligible for a bursary and/or student allowance, as well, to assist his living costs.

As Joyce was reported in the Fairfax story;  “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.

Will Joyce repay the cost of his University studies?

Or will he simply be one of those who benefitted from a near-free University education – paid by other hard-working taxpayers at the time  – and now insisting that others pay for their own tuition, racking up huge debts in the process?

Another case of a Baby Boomer telling Gen X to “do as I say, not as I do”?

Neither Joyce, nor Revenue Minister Todd McClay, have any moral authority to demand payment for tertiary education from any New Zealander.

Both men are hypocrites.

No one should take them seriously.

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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

IRD: Budget 2013 announcements

Fairfax  media: Wipe your student loan – go bankrupt

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

NZ Herald: Budget 2012 – ‘Paper boy tax’ on small earnings stuns Labour

Fairfax media: Prescription cost to rise to help pay for Budget

Wikipedia: Steven Joyce

National Party: Steven Joyce

Additional

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

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

Previous related blogposts

Greed is good?

It’s official: Political Dissent Discouraged in NZ!

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

Budget 2013: How NOT to deal with Student loan defaulters

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

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040512_toon

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This blogpost was first published on The Daily Blog on 1 August 2015.

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The Rise and Fall of John Key – who will be the next Leader of the National Party?

26 August 2014 7 comments

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john-key-smile-and-wave

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It was all set to go: Teamkey would be the cult of personality that would do Stalin, Mao, Reagan, Thatcher, or any of the Nth Korean Kim Dynasty, proud.  National and it’s “Teamkey” propaganda strategy  would cash-in Big Time on Key’s immense public popularity.

It was a popularity that seemed impervious to all the scandals, stuff-ups, and questionable economic and social policies enacted by this government over the years. Every time a minister stuffed up,  Key’s popularity remained unblemished.

People couldn’t work out how it was being achieved. Despite shitstorms surrounding so many National ministers – many of which resulted in sackings/resignations – Key walked through it, much like Superman might walk through an atomic bomb-blast, barely feeling a tickle.

But Key is no extra-terrestrial super-powered being (despite accusations to the contrary). His seeming talent for invulnerability wasn’t a preternatural super-power. It was wholly manufactured by mere mortals, working in back-rooms, funded by tax-payers, and played out with ruthless efficiency.

The plan, as outlined in Nicky Hager’s expose, “Dirty Politics“, and based on leaked emails, was that Key would be kept “above politics”. Others would do the dirty work, and he would maintain an “apolitical”, almost Presidential style. It was a form of fake neutrality.

When  Key said in January 2011,

“I don’t think it suits me as a person. I’m not a negative person and a lot of Opposition is negative.”

– he wasn’t talking about his own persona, he was reciting a pre-prepared script.

Nicky Hager’s book has stripped away the secrecy to this plan and Key’s closeness to the players in dirty politics has been exposed to public scrutiny.

Russell Norman once pointed out that there is a great deal of similarity between John Key and Robert Muldoon. Russell was half-way correct. Key’s politics was every bit as destructive as Muldoons, attacking, destabilising, and under-mining critics of the government.

The only difference is that Muldoon did his own dirty politics. He never hid behind others.

Dirty Politics” has achieved more than simply revealing  unwholesome machinations between National party apparatchiks, ministers, and halfway-insane right-wing bloggers. The book has explained the nature of Key’s seemingly “Teflon” nature. The secret is revealed; the mystery is stripped away; and now, when Key is confronted by a media pack, the brown smelly stuff is sticking to him.

Result? Key is just another self-serving politician and his bloody-mindedness in continuing to shield Judith Collins is corroding his reputation and public standing. I am guessing this will be reflected in coming polls. It’s game over for this government.

If National loses this election, Key has already made it abundantly clear what his intentions will be;

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Key says he'll quit politics if National loses election

 

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Which then begs the question – who would replace Key?

Of the options available to National, I offer these insights;

Steven Joyce

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joyce

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Style: loud, abrasive, intolerant of dissenting views.

Low points: his “debate” on TV3’s “The Nation“, with Labour’s Grant Robertson, where he continually shouted over his opponant and almost hijacked the show.  Or his veiled threats against protesting tertiary students in September 2011.

Leadership chances: 5/10

Electoral saleability: 3/10

Comment: Joyce alienates people by shouting them down. It is bullying and as a political strategy makes him a liability. His pugnacity is more openly Muldoonesque than any other politician.

Judith Collins

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collins

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Style: abrasive, intolerant of dissenting views, 100% Pure vindictiveness in high-heels.

Low points: her relationship with National’s black-ops team headed by Jason Ede and Cameron Slater; lying about journalist Katie Bradford; dodgy dealings with Oravida; mis-use of ministerial power; etc, etc, etc, etc, etc.

Leadership chances: 2/10

Electoral saleability: 0/10 (nil)

Comment: Collins would be a gift for the Left if she were elected Leader of the National Party. She brings back memories of Jenny Shipley – and didn’t that end ‘well’? The Nats would be unelectable with her as Leader. (In simple terms, her political career is over.)

Bill English

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english

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Style: inoffensive.

Low points: rorting the ministerial accomodation allowance (double dipping) in 2009. A silly thing to do for minimal gain. Mostly forgotten by the general public.

Leadership chances: 7/10

Electoral saleability: 7/10

Comment: English has been mostly untainted by all the scandals swirling around Richard Worth, Phil Heatley, Pansy Wong, Nick Smith, Aaron Gilmore, John Banks, Hekia Parata, Judith Collins, et al. In fact, he distanced himself from Collins’ actions in leaking a civil servant’s personal information to far-right blogger, Cameron Slater, by saying,

“I certainly wouldn’t condone an attack by a blogger on a public servant doing their job.”

If  English is positioning himself for a future leadership bid, it was a good move.

English was Leader of the National Party from 2001 to 2003, and was dumped after the Nat’s worst electoral result in decades. During that time, he’s kept his head down; focused on economic issues; and avoided public controversies.

He comes across as likeable, and the public might be persuaded to give him another shot as a Leader.

Conclusion

The political dramas will only be beginning on 20 September.

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References

NZ Herald: Key says he’ll quit politics if National loses election

Fairfax media:  Key’s staff can’t disprove reptilian theory

NZ Herald:  Norman – Key ‘acting like Muldoon’

TV3:  The Nation – Debate: Grant Robertson and Steven Joyce on the wealth of the nation

NZ Herald: Bill English to pay back part of allowance

Wikipedia: Bill English – Leader of the Opposition

Wikipedia: 2002 General Election

Radio NZ: Key, English distance themselves from Collins

Previous related blogposts

Dear Leader loves you!

It’s official: Political Dissent Discouraged in NZ!


 

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20 september 2014 VOTE

Above image acknowledgment: Francis Owen/Lurch Left Memes

This blogpost was first published on The Daily Blog on 21 August 2014

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Key & Joyce – competing with Paula Bennett for Hypocrites of the Year?

7 February 2014 3 comments

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Labour hasn't learned from the past - Joyce

Source

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Reacting to Labour’s newly announced “Best Start” policy, National launched into a wholly predictable – and somewhat repetitive – reactionary condemnation of the plan.

According to “Economic Development” Minister, Steven Joyce,

Once again, the moment we get a lift in the economy, they want to start bribing people with massive extra spending. We haven’t even got to the end of January and Labour and the Greens are already promising to spend the thick end of an extra three quarters of a billion dollars a year. You can’t spend your way to prosperity. This Government understands that and is building a stronger economy to provide higher incomes for Kiwi families.”

Bribing people“?

Massive extra spending“?

You can’t spend your way to prosperity“?

Aside from being more meaningless right-wing cliches, the sheer hypocrisy of Joyce’s remarks beggar belief.

It was only five years ago that John Key was promising bribes – a-la tax cuts – even as the Global Financial crisis was beginning to impact on our economy.

Here in New Zealand, by 26 September 2008 (note the date) – we were officially in Recession – convincing evidence just how rapidly individual economies were being shaken as the Global Financial Crisis (GFC) spiralled out of control.  Three days later, as global share-markets lost value, the NZ Superannuation Fund posted a $880.75 million loss for the year to June 2008 , compared with a $1.09 billion profit the previous year.

By October, Republican President Bush signed into effect a US$700 billion bailout package for firms facing bankruptcy and the Bank of Scotland and HBOS – both facing collapse – were “effectively” nationalised by the UK government.

By November 2008, Lehmann Bros was bankrupt; over 200 US banks were in serious financial troubles; US mortgage finance companies Fannie Mae and Freddie Mac had collapsed; the Russian stock exchange closed after massive share-price falls; and other shocks reverberated throughout the global economy.

As the media was reporting the crisis day-by-day, with financial  headlines dominating every newspaper and television network in the country – what was National doing?

It was promising tax cuts. Big tax cuts “north of $50” for each taxpayer. Tax cuts which Cullen said were unaffordable as then-Finance Minister, and warned,

Finance Minister Michael Cullen yesterday sent the country a further warning that the Government’s cupboard was bare, saying the pre-election fiscal update was expected to show “significantly worse” deficits than the $3.5 billion forecast in the Budget.

As Key’s promises mounted up, Cullen  challenged the Nats to say they would not borrow to pay for their tax cut programmes.

Despite the country being in recession, and the global situation deep in trouble, Key was still promising tax cuts. And he promisedthat the package announced today requires no additional borrowing, or cuts to frontline services to fund it“.

“No additional borrowing.”

In another speech at around the same time, Key said that “National has been mindful of recent global events“. So they were not oblivious to the financial storm swirling around the planet.

On 8 October 2008, Key was even more specific;

“Several months ago I made it clear that our tax plans would be hermetically sealed from other government spending tracks. That continues to be the case.

Paying for this package will not require additional borrowing. It will not require any cuts to public services.”

Unfortunately, like so many of Key’s promises, it was hollow rhetoric. Blatant lies, to be more accurate.

By March 2009, as the GFC and recession impacted on our economy, government revenue was already falling,

“The New Zealand government’s operating balance before gains and losses (OBEGAL) for the seven months ended January 31 was NZ$600 million, which was NZ$800 million below the pre-election update and NZ$300 million below December forecasts, Treasury said. Tax revenue and receipts during the period were NZ$500 million lower than the pre-election forecast.

Meanwhile, Treasury also disclosed a NZ$15.4 billion rise in Gross Sovereign Issued Debt to NZ$45.4 billion (25.3% of GDP) from the pre-election forecast.”

Despite worsening indicators and falling government tax revenue, in  April 2009, the newly-elected National Government enacted it’s first round of tax cuts. The second was scheduled for October 2010.

The result was wholly predictable. As the government lost hundreds of millions in foregone revenue, National  cut state sector services  – despite Key’s promise not to make such cuts,

“Government biosecurity cut backs leaves billion dollar industry vulnerable

The National Government’s decision to make more than 50 workers whose job it is to protect New Zealand from biosecurity risks leaves this country’s primary production industries vulnerable, Labour Biosecurity spokesperson Damien O’Connor says.”

As Andrea Vance wrote in October 2010,

“More than 2000 positions have been cut from the core public service since the Government capped numbers soon after it came to power.

State Services Minister Tony Ryall said yesterday more jobs were likely to go as many government departments would have little or no increase in funding in the next few years.”

And debt continued to rise,

(Year Ended 30 June 2010)

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As the second round of tax cuts was implemented on 1 October 2010, two thousand positions had been cut from the public State sector. And John Key’s government was borrowing $380 million a week – despite his earlier assurances that “paying for this package will not require additional borrowing”,

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Govt borrowing $380m a week

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A month later, all those borrowings were totalled up;

Treasury today published the Government’s financial statements for the 10 months ended April 30, which showed the debt mountain had grown to $71.6b. “

Meanwhile, despite assurance by Key,  cuts were also being made to public services such as  early childhood education, which was amongst the worst to suffer,

The Government is refusing to rule out further cuts to early childhood education as reductions affecting more than 2200 centres kick in today.

The Government announced at last year’s Budget it would eliminate the top rate of funding to early childhood centres.

Later in the year, Education Minister Anne Tolley announced an ECE taskforce would review the effectiveness of spending in the sector and propose new ideas.

Asked yesterday if she could rule out further cuts in this year’s Budget, she said: “Any budget decisions will be announced on Budget day.”

Tolley said the Government was “bringing spending under control”.

Labour says thousands of families will face average fee increases of $20 to $45 as a result of the funding cuts.

It has promised to restore funding and will today put its name to a petition against any more cuts.

Ministry of Education figures show 2249 of the country’s 5251 services will be affected by the cut.

Without much doubt (except to the most blinded-by-ideology National/ACT supporters), National won the 2008 election with big promises of “affordable” tax cuts; no cuts to public services; nor State sector redundancies.

None of those promises were kept.

On 29 January,adding to Joyce’s comments, Key said,

David Cunliffe’s developing a reputation around Parliament for being very tricky. He [Cunliffe] just needs to learn to be up front with the public so they can actually trust his word. I read his speeches and now after a number of examples of this, I really question whether the guy is telling me the truth …”

The same might be said of John Key’s reputation  for being very tricky, and perhaps Key  needs to learn to be up front with the public so they can actually trust his word.

Because really, when Key makes promises, I really question whether the guy is telling me the truth.

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*

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References

TV3: Labour hasn’t learned from the past – Joyce

Labour Party: Best Start Package

Marketwatch: The fall of Lehman Brothers

CNN Money: New recession worry: Bank failures

Washington Post: Treasury to Rescue Fannie and Freddie

Huffington Post: Russia Halts Trading After 17% Share Price Fall

NZ Herald:  Recession confirmed – GDP falls

Fairfax media: NZ Super Fund drops $880.75m

The Telegraph: Financial crisis: HBOS and RBS ‘to be nationalised’ in £50 billion state intervention

NZ Herald: National sticking to $50-a-week tax cuts

Dominion Post: Cullen to Nats: will you borrow for tax cuts?

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

John Key Website:  NEWS: Economic plan: A tax package for the times

John Key Website: SPEECH: National’s Economic Management Plan

NZ Herald: John Key on Tax Cuts: The National leader’s speech

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

Scoop Media:  Biosecurity cut backs leaves industry vulnerable

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

Fairfax media: ‘Unrealistic’ workloads on civil servants after cuts

NZ Herald: Govt borrowing $380m a week

Fairfax media: Government debt rises to $71.6 billion

Fairfax media: Further early childhood education cuts possible

Scoop Media: National Election Pledge Card

NZ Herald: Key launches scathing attack on Cunliffe’s credibility

Previous related blogposts

The National Party, common sense, and sausage sizzles

Another day in a lie of the National Party

From 2011 back to 1991?

Other blogs

The Standard: Gower plays a shocker

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Election 2014

Above image acknowledgment: Francis Owen

This blogpost was first published on The Daily Blog on 30 January 2014.

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Random Thoughts on Random Things #5…

21 October 2013 1 comment

From Dunedin’s “Star” ( a weekly community newspaper, published by the ODT) on 17 October;

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Government not ‘abandoning’ city
Michael Woodhouse National Party List MP

  

I share concerns around the proposal to relocate jobs from Invermay to the new Lincoln hub. But it’s important to have balance in the discussion, and that balance has so far been missing from the pages of our local daily paper.   

The Minister of Science and Innovation, Hon Steven Joyce, has assured Dunedin the proposal will receive a high level of scrutiny, and has committed to testing the proposal further with the AgResearch board. That’s appropriate. AgResearch is a Crown Research Institute, independent of Government.   

David Cunliffe has strongly inferred that a Labour-Greens government may reverse the board’s decision. However, he stopped short of committing to do so.   

The Opposition is well aware Parliament would need to change the law in order to make that happen, breaking down the long›standing separation that protects our crown entities from direct political interference.   

They steadfastly refused to do that in their nine years in government when restructures and even redundancies were being proposed by crown entities and State›owned enterprises.   

The Opposition should be required to clarify their real position, rather than get away with offering the Dunedin community weasel words they have no intention of honouring.   

I also note that for all Mr Cunliffe’s hand›wringing over the proposal and its impact on Otago, when facing a Dunedin audience, he was lauding the positive impact the AgResearch proposals would have for Massey University when speaking in Palmerston North recently.   

Mr Cunliffe cannot have it both ways.   

Either Labour opposes the proposed merger, or it doesn’t. Either it will commit to reversing the decision should it take power, or it will not.   

No-one wants to see jobs move from the city. But it’s completely wrong to suggest the Government is abandoning Dunedin. There are now more doctors, nurses, students and academic positions than when we took office. Port Otago is reporting record freight movements, house prices are holding up, and there are many other positive signs of growth.   

I look forward to working with the new city council to continue promoting this city to the world.

 

Source: The Star

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Isn’t it interesting…

National List MP, Michael Woodhouse, devotes seven out of his eleven paragraphs bagging Labour, The Greens, David Cunliffe, and Uncle Tom Cobbly… but nowhere does he offer any practical solutions to a major crisis affecting Dunedin’s local economy. The gutting of the Invermay Agresearch centre will be a further blow to Otago’s regional economy – one that appears to have no rational basis (see:  AgResearch staff ignored)

One of National’s taxpayer funded spin-doctors really should take Mr Woodhouse to one side; whack him about the face with a wet fish; and advise him that criticising the Opposition’s suggestions whilst offering none in return – is not a particularly good look.

Especially when Mr Woodhouses’ own colleagues seem to be endorsing the gutting of Invermay:  Govt says AgResearch restructure is ‘logical’,

“It’s tough for individuals that may have to shift, but the upside is that I think we’ll get a much greater impact for our research investment in the agricultural area, which is really important to New Zealand.” – Steven Joyce, Economic Development Minister

What was that you were saying, Mr Woodhouse?

At this rate, don’t count on winning a local electorate seat any time soon.

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Joyce on manufacturing

21 June 2013 1 comment

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In January this year,  Labour, Green, NZ  First, and Mana parties held an  inquiry (after the Parliamentary Finance Select committee rejected a request for a similar investigation) into the loss of  40,000 jobs  from the manufacturing sector in the past four years.

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Exporters tell inquiry of threat from high dollar

Acknowledgement: Radio NZ – Exporters tell inquiry of threat from high dollar

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In case anyone believes National’s claim that this was a “political stunt” (see: Opposition determined to manufacture a crisis), the comments from manufacturers who participated in  the Inquiry took it deadly seriously. Whilst politicians like Joyce suckle on the tax-payer’s teat, exporters and manufacturers actually have to earn a living.

They were not impressed and made their feelings known;

Mike Eggers;

We’re told to get smarter and I find that irritating and insulting. I’m about as smart as they get in my little field. How the hell do these people get smarter? For a politician to tell somebody else to get smarter – he’s risking his life.”

A W Fraser;

We know that – we’ve known that for a very, very long time. Of course we get efficient, of course we try and work as hard as we can to be efficient – it’s the only way we can exist. It drives me insane when people say, ‘Get efficient’. What do you think we are – idiots? We’re not.”

Acknowledgement: IBID

The Inquiry made its findings known;

Recommendation 1:  The government adopt macroeconomic settings that are
supportive of manufacturing and exporting, including:

  • a fairer and less volatile exchange rate through reforms to monetary

policy;

  • refocusing capital investment into the productive economy, rather

than housing speculation;

  • and lowering structural costs in the economy, such as electricity prices.

Recommendation 2: New Zealand businesses are encouraged to innovate.
Research and Development tax credits, with a stronger emphasis on
development, should be introduced as part of a package for innovative
manufacturing, supporting exports and quality jobs.

Recommendation 3: The Government adopt a national procurement policy
that favours Kiwi-made and ensures that New Zealand manufacturers enjoy
the same advantages as their international competitors.

Recommendation 4: The tax system is used to boost investment in new
technology and machinery. An accelerated depreciation regime should be
implemented for the manufacturing sector.

Recommendation 5: A wide range of funding is available for manufacturers to
invest in their business and employees. Measures to encourage the availability
of venture capital and mezzanine funding should be continued, including
government funds through commercial-managers.

Recommendation 6: Businesses are supported to achieve 21st Century
organisation and practices. Policies such as NZTE’s focus on Lean
Management, and the work of the High Performance Work Initiative should
be extended. Apprenticeship training support for the sector should be
reviewed immediately.

Recommendation 7: Manufacturers are given a voice in FTA negotiations.
From the outset of FTA negotiations the interests of manufacturing must be
explicitly addressed. Negotiating teams must keep the sector informed.

Recommendation 8: Measures to encourage foreign direct investment in
manufacturers should be consistent with the strategic direction of New
Zealand’s manufacturing and exports.

Recommendation 9: Government should lower compliance costs wherever
they can be consistent with maintaining New Zealand’s values including
workers’ rights, environmental standards, and product quality assurance.

Recommendation 10: Manufacturing’s ability to create jobs and boost exports
should be recognised in national, regional and industry policies.

Recommendation 11: Taskforces of government local government,
businesses and unions, be established to assess and act on new business
and job opportunities in the wake of major closures or restructuring in the
manufacturing sector.

For full details of each Recommendation, read the full report.

Source: Manufacturing Inquiry Report

Joyce’s response? There was no crisis.

Labour, the Greens, New Zealand First and Mana are determined to manufacture a crisis in manufacturing. The massive problem for them is that while individual firms face real challenges at different times, no crisis exists.

Acknowledgement: Scoop – Opposition determined to manufacture a crisis

Dear Leader also made the same astounding assertion,

Quite honestly there is no manufacturing crisis in New Zealand; there are challenges for some manufacturers.

Acknowledgement: Fairfax Media – Opposition manufacturing inquiry report released

There we have it: no crisis exists.

40,000 jobs lost since 2008 – but Key and Joyce insist, no crisis exists.

It is the measure of this shonkey, incompetant, self-serving  government that National ministers can deny the existence of a crisis when companies are folding and 40,000 people have lost their jobs.

I wonder if Key and Joyce’s attitude would be different if Labour were in power and 40,000 jobs had been lost in the last four years under theitr watch?  Would they still insist there was  no crisis exists ?

I think we all know the answer to that question.

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12 June – Issues of Interest

12 June 2013 4 comments

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Looking at the pieces

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Nigel Latta on National Standards

On Facebook, child psychologist and TV host, Nigel Latta, had this to say about the recent National Standards “results”;

‘National Standards’ aren’t.

The latest national standards ‘results’ being reported in the media are utter nonsense. Pure and simple. Even if we ignore the large inconsistencies between the way that the ‘standards’ are measured (and we can’t because the inconsistencies make comparisons all but impossible), and the fact that it assumes all children of a given age are maturing at the same rate (which they don’t), and we ignore the impact of little things like child poverty (which some politicians like to do much to their shame), it’s still impossible to say anything at all about a change in the numbers when you only have two data points.

They can’t say that a difference of 1.2-2% on the various measures between last year and this year is an ‘improvement’, because we simply don’t know.

If you had assessed all of those very same children again the day after they were assessed for these numbers, in the exact same conditions with the exact same measures, then you would also get a different number. That’s because in the real world we have this little thing called statistical variation–things never work out exactly the same. To make any meaningful statements about ‘improvements’ you need meaningful measures (which national standards aren’t anyway) over several different data points (i.e. over several years).

I wish the media would get that very simple, but very important point. Politicians will spin it as a gain, but it isn’t. It’s simply meaningless statistical ‘noise’.

The government went with national standards because they thought voters would like it, not because it’s the best thing for making progress on education. If we really wanted to lift our ‘national standards’ then, perhaps as a beginning, we’d take more care of the large numbers of our kids living in poverty.

When they produce their ‘rankings’ of schools I’m pretty sure it’s going to show a trend whereby higher decile schools meet/exceed the ‘standards’ much more than lower decile schools. I wonder why that might be? And who do we blame for that? Teachers?

Don’t be sucked in by all this political positioning. My advice is to ignore the national standards tables because they don’t mean anything. There’s a reason teachers were so opposed to the way these ‘national standards’ are being used… fundamentally because it’s nonsense!

Nigel Latta, Facebook, 12 June 2013

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100% Pure brand busted!

New Zealand’s distance from it’s major trading partners (except Australia) has always been a major impediment to our trading. Our point-of-difference has  been the quality of our food products, and has made them desirable commodities on that basis.  Branding ourselves as “100% Pure” and  “Clean and Green” were marketing tools that created a multi-billion dollar export industry.

But that is coming to an end.

We are not “100% Pure” and nor are we “Clean and Green”. Anything but.

National has paid lip service to being green.

Pollution has been allowed to increase.

It’s focus on “reforming” the RMA to allow for exploitation mof sensitive environmental areas; more and more chemicals ion our farms; allowing dangerous deep sea drilling of our coastline; mining in Conservation lands; and ditching our committment to the Kyoto Protocol – have not gone unnoticed by our trading partners.

And those trading partners  are starting to react accordingly,

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Sri Lanka demands DCD testing on NZ milk powder

Acknowledgment: Radio NZ – Sri Lanka demands DCD testing on NZ milk powder

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An over-reaction?

Not when National has appointed a  board to over-see a resource consent application to allow an increase of nitrogen pollution  in the Tukituki River  by a staggering 250% !

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Nitrate proposal seen as death knell for river

Acknowledgment: Radio NZ – Nitrate proposal seen as death knell for river

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This will not doubt be ratchetted back to “only” 50% or 100%, and National will claim that they are “listening” to public concerns. It’s an old political trick when a deeply unpopular policy is put forward. Make a number unfeasibly large; then offer a lower number, and claim that government has listened to the public. In reality it was the lower number all along that was the preferred option.

National has consistently undermined environmental protections in this country, as well as knee-capped DoC by sacking staff and under-funding it’s operations.

We are now starting to pay the price of right-wing policies that pursue business and profit ahead of  preserving our environment.

What National and it’s one-eyed supporters don’t seem to comprehend is that business and profits are dependendent on our clean and green environment. Mess up the environment and expect to lose customers and profits.

Just ask the Sri Lankans.

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User-pays healthcare?

For those neo-liberals and naive National supporters who advocate replacing our socialised healthcare system with privatised healthcare insurance, I present the reality,

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NZ private health insurance uptake hits 6-yr low

Acknowledgment: NZ Herald – NZ private health insurance uptake hits 6-yr low

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Private health-privider,  Wakefield chairman Alan Isaac said,

“The total number of New Zealanders with private health insurance (is) decreasing.”

Acknowledgment: IBID

Well, no wonder!

Even as private healthcare companies like Wakefield are complaining about losing customers, they are hiking premiums and still making a 27% increase in full-year earnings. Twentyseven percent! Compare that to other investments, and you begin to realise that these companies aren’t doing too bad.

That’s 27% that could have been re-invested in healthcare – but is instead going into the pockets of shareholders.

What would happen, I wonder, if New Zealand’s healthcare system was fully privatised and  went totally “free market”, as ACT policy demands?

This OECD chart suggests the result, if we were ever foolish enough to go down that road,

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OECD - private - public - healthcare expenditure -2007

Source: OECD – Total health expenditure per capita, public and private, 2007

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At 7,290, the United States spends nearly three times as much on healthcare as we do. Their private/public health costs are vastly greater than the entire public/private expenditure we have here in New Zealand with our “socialised” system.

And ACT wants to emulate our American cuzzies?!

The only thing the USA has demonstrated is that a privatised healthcare system will result in a massive blow-out in costs and rapacious profits for shareholders.

The argument from the neo-liberal Right is that private enterprise is “more efficient” and better for consumers. This is absolute bollocks.

If anything, private health insurance is highly ineffective at delivering  universal healthcare for it’s clients,

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Ongoing jumps in health insurance costs

Acknowledgment: Fairfax Media – Ongoing jumps in health insurance costs

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As has been observed by others in the past, private health insurance is relatively cheap when you are young, healthy, and make few demands for medical intervention.

But with old age; increased infirmity; and heightened vulnerabilty comes increased premium payments for policy-holders. Just when they most require increased medical services.

This is the fatal flaw in private medical insurance; those who most require it, will pay the highest premiums. And pay, and pay, and pay…

Just ask the Americans.

See also: NZ Herald – Jack Tame: Sickness is too expensive in the land of the free

Other blogs:  Canadian and U.S. healthcare – a debate

Canadian and U.S. healthcare – a debate
Canadian and U.S. healthcare – a debate
Canadian and U.S. healthcare – a debate

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Some good news at last…

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It has been a stain on our reputation that despite our anti-nuclear legislation, our Superannuation Fund was still investing in overseas companies engaged in producing atomic bombs and cluster munitions. This was a problem (I refuse to call it an “issue”)  that I highlighted  in December, last year.

Previous related blogposts:  New Zealand’s OTHER secret shame

Previous related blogposts:  New Zealand’s OTHER secret shame – *Update*

The Superannuation Fund has done the right thing by no longer continuing to invest in Babcock & Wilcox, Fluor Corporation, Huntington Ingalls Industries, Jacobs Engineering Group, Serco Group and URS Corporation;

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Super Fund sells nuclear investments

Acknowledgment: Fairfax Media – Super Fund sells nuclear investments

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The other weapons we are no longer investing in is the manufacture of cluster-munitions. These vile things are the weapons-of-choice for vicious dictators and other repressive regimes which they use against their civilian population.

They have been used in Syria, against unarmed civilians. Children have been killed by these monstrous devices.  (see: Syrian children ‘killed by cluster bombs’)

Cluster munitions have been outlawed by  nearly 100 nations which signed a  treaty to ban cluster bombs.  In 2009, to their credit, the current National-led government  passed legislation banning these obscene weapons from our country. This included the possession, retaining, stockpiling, assistance, encouragement, or even inducement to deal with them.

NZ Parliament: Cluster Munitions Prohibition Act 2009 (17 Dec 2009)

It would take a ruthless person to discount this human suffering and advocate for our continued investment in their manufacture.

The Superannuation Fund was effectively breaking the law with it’s investments in General Dynamics, L-3 Communications, Raytheon, and the Goodrich Corp.

It’s good to see that our fingers are no longer bloodied by such  investments.

As for right-wingers who dismiss investment in atomic bombs or cluster munition – go play with a cluster bomb.  Come back to me after it’s detonated in your hands. Then we’ll talk.

Just ask the Syrians.

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The bucks stops with me over there, somewhere…

I guess it was inevitable, really…

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Deputy Secretary resigns over Novopay

Acknowledgment: Radio NZ – Deputy Secretary resigns over Novopay

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Did we really, really expect any one of the three Ministers who signed off on Novopay to put their hand up and admit responsibility?!

No less than three ministers signed off on Novopay, to allow it to “go live”;

  • Education Minisrer Hekia Parata
  • Associate Education Minister Craig Foss
  • Finance Minister Bill English

Because doesn’t it strike people as  indicative that Minister for Everything, aka, Mr Fixit, Steven Joyce was appointed Minister in charge of Novopay – thereby taking responsibility for this ongoing balls-up away from Parata?! (see: ODT – Joyce to take on handling of Novopay)

Despite the so-call “ministerial inquiry”, Joyce had a very interesting point to make on 31 January;

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Government sticking with Novopay - for now

Acknowledgement – Radio NZ – Government sticking with Novopay for now

Steven Joyce revealed that Education Minister Hekia Parata, Finance Minister Bill English and former education minister Craig Foss approved the use of Novopay despite being told that it had bugs.”

So… how can  Joyce’s statement be reconciled with his statement, five months later,

Reporting to Ministers was inconsistent, unduly optimistic and sometimes misrepresented the situation.”

Source: Beehive.govt.nz: Ministerial Inquiry report into Novopay released

Either Ministers were “told that it had bugs” or  reporting wasunduly optimistic and sometimes misrepresented the situation“. Which is it?!

By the way, the Ministerial Inquiry was undertaken by Maarten Wevers and Chairman of Deloitte New Zealand Murray Jack.

Mr Weavers was former head of the Department of the Prime Minister (John Key) and Cabinet.

Connect the dots.

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WhiteWash

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Other blogposts: Gordon Campbell on the latest Novopay revelations

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The Politics of Power and a Very Clear Choice – Part Wha

new zealand high electricity prices

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Continued from: The Politics of Power and a Very Clear Choice – Part Toru

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First NZ

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As Chris Trotter pointed out in his excellent blogpost just recently,

ONLY STEVEN JOYCE could offer up JB Were, Woodward Partners, Milford Asset Management, First NZ Capital,  and Forsyth Barr as credible critics of the Labour-Greens’ energy policy. As if these six financial institutions were ever likely to offer the Opposition parties their fulsome support!.”

Acknowledgement: The Daily Blog – No Dog In The Fight: Whatever happened To Academic Expertise?

We can add to the above list; AMP Capital, Morningstar Research, BusinessNZ, and Federated Farmers – all of which appear to be the front-line foot-mercenary-soldiers in National’s counter-attack to the Labour-Green’s NZ Power.

Minister of the Known Universe, Steven Joyce’s actual comment was,

Financial analysts including JB Were, Woodward Partners, Milford Asset Management, First NZ Capital, Devon Funds Management and Forsyth Barr are unanimous in their condemnation. One has labelled it a ‘hand grenade’ to the New Zealand economy, while others have said it will cut the value of every New Zealanders’ KiwiSaver account and lead to rolling blackouts. ”

Acknowledgement: Scoop –  Labour-Greens Power ‘Plan’ Economic Sabotage

Rolling blackouts“?!

He left out a plague of locusts and rivers turning into blood (though with farm run-offs, these days it’s more like Rivers of  Excrement).

We’ve had power black-outs in the past, due to dry weather; equipment failure; shut-downs for maintenance; human error; etc. And we will continue to have unavoidable power cuts, in the future;

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Damaging gales forecast for north 5.5.2013

Acknowledgement: NZ Radio – Damaging gales forecast for north

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Joyce added,

Kiwis are deeply suspicious about the Labour-Greens announcement and its timing. It’s simply economic sabotage. ”

Hmmm, considering the high value of the New Zealand dollar’s destructive effects on our manufacturing/export sector and the 40,000 jobs that’s been lost in the last four years – if I were Joyce, I would not be too keen to bandy about charges of “economic sabotage”. National’s policies in the last few years have been more than effective in that regard,

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Exporters tell inquiry of threat from high dollar

Acknowledgement: Radio NZ – Exporters tell inquiry of threat from high dollar

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It’s hardly surprising that most of the negative response has been from the financial markets and commercial firms. They are the ones with the naked vested interests.

To date, the following fear-threats have been thrown at the New Zealand public – because make no mistake, these  doomsday scenarios are directed at voters, and not Labour or the Greens.

Perhaps the most outrageous claims – or outright lies – came from share broking company, First NZ,

“Despite the alleged “excessive price increase in the 13 years since 2000 we are not convinced the system is broken. If it isn’t, then it doesn’t need fixing.

Since 2008, the “real” rate of increase (net of line charges) has slowed even further to 0.5 per cent per annum. Your writer knows for a fact he is paying less for electricity today than three years ago.

Our modelling assumes 11.6 per cent residential tariff increases over the next four years, however net of line charges this reduces to 3.2 per cent over four years.

We believe the Opposition’s desire for a 10 per cent reduction in power prices can mostly be achieved through the current market without the need for a complex and costly change of market structure.”

Acknowledgement:  NZ Herald –  Power price cuts coming anyway, says First NZ

In another document, First NZ made the extraordinary claim,

“Despite the alleged “excessive” price increases in the 13 years since 2000 we are not convinced the system is broken. We estimate that, net of line charges and after allowing for inflation, residential electricity prices have risen 2.6% since 2000.

Acknowledgement:  First NZ – Contact Energy – If it ain’t broke don’t fix it

Hold on.

Is First NZ is really telling the public that power prices have only risen 2.6% since  2000?!?! Well, they do qualify that with “net of line charges and after allowing for inflation”. Though why they would omit line charges seems pointless; the public are still paying at the end.  “Clipping the ticket” seems the norm and impacts on the end-consumer regardless of how it is done.

Which also raises a question in my mind;  why is First NZ making this assertion only now? Why did they not make the effort to rebut National’s claims when Dear Leader issued public statements like this, on 27 January, 2011,

“In the nine years Labour was in government, power prices went up 72 per cent and the Government owned 100 per cent of the assets.”

Acknowledgement:  NZ Herald – Power price fears if Govt stakes go

Why did First NZ not issue public statements ‘correcting’ National’s “misrepresentations” at the time?

Why have they left it only till now, to counter the assertion that “power prices went up 72%”?

Why is a single-buyer desk for electricity sending brokerage firms into a panic? Especially, considering, that we already have single buyer-desk’s in the form of Fonterra, Zespri, PHARMAC, etc.

The answer, I submit, is fairly obvious. First NZ’s fanciful statements and assertions are part of an orchestrated litany of bullshit to scare Joe & Jane Public to run back into the cold, dead arms of Nanny Neoliberal.

The Financial Money Men, with their Federated Farmers allies, are propping up their neo-liberal stooges in Parliament. The rats are out of the woodwork, and we can see who is lined up against the best interests of the public.

Because, in the final analysis, this all boils down to money – who makes it and who gets to keep it. And because so much money is at stake, we are told that rising power bills is the price for living in a “free” market.

We’re also promised that power prices will drop. Sometime. In the future.

We just have to be patient.

Maybe another thirty years?

It will be interesting if people buy into this propaganda BS.  Will voters believe the fear-mongering campaign from the money-pushers?

Or will they realise that share brokers and merchant bankers are  interested only in seeing that power prices remain at stratospheric levels, to provide maximum returns for their shareholders?

Because one thing is as certain as the sun rising tomorrow; these firms are not remotely interested in our welfare. Nor in the welfare of Kiwi families being gouged with higher and higher power bills.

I’m struck senseless that so many National supporters believe  that siding with the likes of JB Were, Woodward Partners, Milford Asset Management, First NZ Capital, Devon Funds Management,  Forsyth Barr, Business NZ, Federated Farmers, et al, will somehow gain them some kind of  ‘benefit’. Are National supporters so masochistic and blinded by their faith in the “free market” that they are willing to tolerate  paying higher and higher prices for electricity?

I hope they realise that JB Were, Woodward Partners, Milford Asset Management, First NZ Capital, Devon Funds Management,  Forsyth Barr, Business NZ, Federated Farmers, et al, will not pay the power bills for National supporters.

Good luck with that!

The Labour-Green coalition should welcome these attacks as an opportunity. Every time one of these money-pushing firms launches a critical attack on NZ Power – the Labour-Greens should counter with press conferences where facts, stats,   and more details are presented for the public and nice, big, colourful  graphic-charts presented.

Like this one, from the Ministry of Economic Development/Business, Innovation, and Employment;

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Ministry of Economic Development - Power Prices 1974 - 2011

Acknowledgement: Ministry of Economic Development/Business, Innovation, and Employment – Power Prices

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(Note price drop around 1999. Whilst Industrial and Commercial prices fell, residential prices continued to rise. There is more to explain the 1998/99 price fall here;  Statistic NZ –  Electricity consumption. It had little to do with Bradford’s reforms, and more to do with competing retailers changing their  methods of calculation for the CPI electricity price index and building extra generation capacity. The cost of the latter had shifted from the State and onto domestic consumers.)

Where possible, David Parker and Russell Norman should  speak at engagements around the country at public meetings. (Community newspapers and other local media should be engaged, as they love anything that happens within their community.)

Invite others such as  the Salvation Army, and experts such as energy-sector expert, Molly Melhuish, and Victoria University researcher Geoff Bertram, should be invited to address media events.

Invite members of the public; families, etc,  to present their power bills as evidence of skyrocketing prices.

Build a Broad Front of support. Show the country that there is support for NZ Power.

People want reassurance. We need to give it to them. And we need to show them why the National and the  finance sector are working in cahoots.

Because ain’t it funny that no community organisation has come out, demanding that the electricity sector remain unregulated and welcoming higher and higher prices?

And if the media aren’t presenting the full story, use progressive blogs to publish the information. We, too, can be  “foot soldiers” in this struggle. (Because surprise, surprise,  we too, use electricity.)

This is a war between the Neo Liberal Establishment and Progressive forces fighting to roll back thirty years of  a failed experiment.

That war began on 18 April.

There is no reason on Earth why we should not win.

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NZ First

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I find it hard to trust  NZ First. Or, to be more precise; I find it hard to trust it’s leader, Winston Peters.

His parliamentary colleagues; party members; and supporters – I have no problem with. They are people who, generally, want the best for this country and dislike the false religion of neo-liberalism as deeply as those on the Left do.

But Peters…

Peters has ‘form’. He has changed direction  on numerous occassions, and I find it hard to take him at his word.

Some examples…

1.

In 1996, Winston Peters campaigned to defeat the National Government and remove it from power. His campaign statements at that time seemed unequivocal;

Jim Anderton: Is the member going into a coalition with National?

Winston Peters: Oh no we are not.” – Parliamentary Hansards, P14147, 20 August 1996

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There is only one party that can beat National in this election that that is New Zealand First.” – Winston Peters, 69 & 85 minutes into First Holmes Leaders Debate, TVNZ, 10 September 1996

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Of course I am not keen on National. Who is?

… This is a government bereft of economic and social performance  [so] that they are now arguing for stability.” – Winston Peters, Evening Post, 25 June 1996

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The prospects are that National will not win this election, that they will not form part of any post-election coalition.” – Winston Peters, The Dominion, 5 October 1996

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It is clear that this National government will use every means at its disposal to secure power… Come October 12…  Two months ago I warned that the National Party would use every trick and device at their command to to retain their Treasury seats.” – Winston Peters speech to Invercargill Grey Power, 26 August 1996

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The Prime Minister [Jim Bolger] is not fit for the job and come 12 October he will be out. He should not get on his phone and call me like he did last time, because we are not interested in political, quisling  behaviour. We are not into State treachery.” – Winston Peters, Parliamentary Hansards, P14146, 20 August 1996

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We believe the kind of politician depicted by Bolger, Birch, and Shipley is not to be promoted into Cabinet. As a consequence we will not have any truck with these three people.” – Winston Peters, NZ Herald, 22 July 1996

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We are a party that says what we mean and mean what we say, regardless of the political consequences.” – Winston Peters, Speech to public meeting, 9 October 1996

Despite Peters’ assurances,  on  11 December 1996  the public woke up to this nightmare,

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2.

In 1996, one of the biggest election issues was the sale of  Forestry Corporation of New Zealand Ltd (cutting rights only,  not the land). In 1996, the then Bolger-led National government had announced it’s intention to privatise the SOE,

In 1996, the Minister of Finance announced the government’s intention to sell its shares in the Forestry Corporation of New Zealand (formerly Timberlands Bay of Plenty). The corporation’s assets were Crown Forestry Licences to planted forests, which had expanded to 188 000 ha in the central region of North Island, processing plants in various locations, a nursery and a seed orchard.

A handful of large forestry companies and consortia submitted bids. The sole criterion was price. However, as the strength of the bids was not as great as hoped, bidders were asked to resubmit their bids. In August 1996, it was announced that the Forestry Corporation of New Zealand had been sold to a consortium led by Fletcher Challenge in a deal that valued the assets at $NZ 2 026 million.

Acknowledgement:  Devolving forest ownership through privatization in New Zealand

The sale went ahead and the  final sale-price was $1,600,000, to a consortium made up of  Fletcher Challenge Forests (37.5%), Brierley Investments Ltd (25%) and Citifor Inc (37.5%).

Acknowledgement:  Treasury – Income from State Asset Sales as at 30 September 1999

Throughout 1996, Winston Peters engaged in an election campaign to “hand back the cheque” should he and his Party be elected into a position of power,

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Forests Buy back signalled - Evening Post - 13 August 1996

Acknowledgement: (hard copy only): Evening Post, 13 August 1996

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the Game plan - what we're all playing for - Eveni ng Post - 2 October 1996

Acknowledgement: (hard copy only): Evening Post, 2 October 1996

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To quote  Peters, who said on 13 August 1996,

I ask both the Labour and Alliance parties – putting politics aside for  this one day – to join New Zealand First in it’s post-election pledge to reverse the sales process“.

As many who lived through the times will recall, Peters pledged to “hand back the cheque”. It was a powerful message.

But it never happened.

Peters joined in coalition with National  (consigning Labour and The Alliance into Opposition) and the pledge to buy back the forests was dropped – much to the disgust of people at the time..

Sixteen years later, and Peters has made the same promise all over again.  On TV3′s The Nation, on 24 June 2012,  Winston Peters stated,

 “The market needs to know that Winston Peters and a future government is going to take back  those assets. By that I mean pay no greater price than their first offering price. This is, if they transfer to seven or eight people, it doesn’t matter, we’ll pay the first price or less. ”

Acknowledgement: TV 3 – The Nation

On 4 March this year (2013), Peters announced,

New Zealand First will use its influence on the next coalition Government to buy back our state-owned power companies which are being flogged off by National and we are committed to buying back the shares at no greater price than paid by the first purchaser.”

Acknowledgement: Scoop – One More Quisling Moment from Key

Another quote from Winston Peters, who  said in a speech to the NZ First Conference,  in 1999,

All the policies and manifestos in the world are meaningless when you cannot trust the leadership. That is what leadership is about – trust. Nobody expects leadership to be infallible. But you have a right to expect it to be trustworthy.”

Acknowledgement: (hard copy only):  Speech by Rt Hon Winston Peters to the New Zealand First Conference, 18 July 1999, at the Eden Park Conference Centre

Indeed; “All the policies and manifestos in the world are meaningless when you cannot trust the leadership.”

If Peters and NZ First hold the balance of power in 2014 and choose to enter into a coalition arrangement with National – will he carry out his pledge this time?

Or will that promise be dropped and buried for political expediency and some babbled, weak excuse?

It’s happened once, before. And not too long ago.

Can he be trusted for a second time?

I am of  the belief that folks can learn from their mistakes. God knows I’m made a few in my early adulthood.

Has Winston Peters learned to honour his electoral pledges and not to treat the voting public as fools? Has he learned that he betrays voters at his peril? I hope so.

Because the public exacted a fitting response to his behaviour in 2008, as he and his Party were punished and spent three years in the political wilderness (see;  New Zealand general election, 2008).

More than ever, the future of this country – and the power –  is in our hands,

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NZ Power Shearer Norman

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Residents Vote In Mana By-Election

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Don’t screw up this time, Mr Peters.

This blogpost was first published on The Daily Blog on 6 May 2013.

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Previous Related Blogposts

History Lesson – Tahi – Electricity Sector “reforms”  (4 March 2012)

John Key: Man of Many Principles (28 Sept 2012)

Labour, Greens, NZ First, & Mana – A Bright Idea with electricity! (10 March 2013)

Additional Sources

Statistics New Zealand: The history of electricity reform

Ministry of Economic Development: Electricity Prices

NZ History Online:  Dancing Cossacks political TV ad

The Treasury: Income from State Asset Sales as at 30 September 1999

References

NZPA: Splitting up ECNZ expected to cut wholesale power price (16 Dec 1998)

NZPA:  Reforms aimed at business – Luxton (21 April 1999)

Otago Daily Times: Power Prices Set To Soar (12 May 1999)

Otago Daily Times: No case for regulation (24 May 1999)

Otago Daily Times: Lower power prices coming says Bradford (3 June 1999)

Otago Daily Times: Power prices to rise by up to 15.1% (29 June 1999)

Otago Daily Times:  Reforms blamed for hike (13 July 1999)

Scoop: Alliance to hold Winston Peters accountable (8 Oct 1999)

NZ Herald: Peters ‘forgets’ NZ First support for power reforms (13 Aug 2008)

Fairfax: Government to seek inquiry into power price rise  (30 September 2008)

NZ Herald:  Put prices on hold, Brownlee tells power companies (21  May 2009)

NZ Herald: Mighty River directors’ 73pc pay rise realistic – Key (5 April 2013)

Scoop:  Labour-Greens to rip up the book on electricity pricing (18 April 2013)

NZ Herald:  Labour-Greens plan could work, says Vector CEO (19 April 2013)

NZ Herald:  National gobsmacked at Labour idea (19 April 2013)

NZ Herald: Power plan likened to Soviet era (19 April 2013)

NZ Herald: MRP chief slams socialist’ plan (21 April 2013)

TVNZ:  Q+A – Transcript of Steven Joyce interview (21 April 2013)

NZ Herald:  Bernard Hickey: Power barons fail to fool the public this time around (21 April 2013)

Radio NZ: Power prices nearly double since 2000 (21 April 2013)

Other blogs

Kiwiblog: Electricity Prices

Tumeke: MANA threaten overseas investors not to buy assets – Bloomberg pick up on the story

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Skycity: National prostitutes New Zealand yet again

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smoking-and-gambling and prostitution

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Not only does an extension (to 2048)  of Skycity’s licence unconstitutionally bind future governments, but this deal adds to the growing problem (I refuse to call it an “issue”) of gambling addiction in this country.

What on Earth is National thinking?!  Is this the best they can do to grow the economy and create jobs???

Because it certainly seems that gambling is indeed one of the country’s “growth” industries,

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Acknowledgment: Statistics New Zealand – Gaming: an economically significant industry

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It is worth comparing the above graph with the timelime on the increase of different forms of gambling in this country;

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Graph, Timeline for Introduction of Gaming Activities.

Acknowledgment: IBID

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Note the increase in gambling turnover sharply increasing from 1996, when Auckland’s Skycity casino opens.

The full National Government/Skycity deal is;

Key features of the SkyCity convention centre deal and what KordaMentha estimates they’re worth over 35 years:

* Extension of SkyCity’s casino licence, due to expire in 2021: $65m-$115m

* Additional 230 pokie machines: $95m-$115m*

* Additional 40 gaming tables: $72m-$101m

* More gaming tables that can be substituted for automated table game player stations: $77m-$109m

* Ticket-in, ticket-out and card-based cashless gaming technology on all pokie machines and automatic table games: $84m-$88m

* *Includes allowing up to 17 per cent of pokie machines and automatic table games (in restricted areas only) being able to accept banknotes of denominations greater than $20.

Acknowledgment: NZ Herald – PM defends 35-year SkyCity deal

It doesn’t take much imagination to consider the boost that this deal will give to Skycity’s turnover.

Key’s claim that this will create 1,800 jobs is dubious, to put it mildly, as his June 2012 NZ Herald report revealed;

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Puzzle of Key's extra casino jobs

Acknowledgment: NZ Herald – “Puzzle of Key’s extra casino jobs”

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Once again, Key shows that our laws are for sale, if you happen to have the cash to buy a “good deal”. (I must remember that next time I get a speeding ticket…)

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Bribing A Cop

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What is the difference between a citizen bribing a policeman to evade the law – and a corporation paying a government   to changing the law in return for building a convention centre?

And note that this is not the first time National has changed our laws in return for corporate favours;

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Warner Bros sought job law change to film The Hobbit in NZ

Acknowledgment: NBR – Warner Bros sought job law change to film The Hobbit in NZ

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A government that has a plan for economic growth and job creation would not need to stoop to advancing the profitability of what is inarguably a vice – and a particularly dangerous vice, which can destroy families and bring down companies, as addicts steal from employers (or their own business) to fund their habit.

One has to ask; what next? Deals with the Chow Brothers to expand their brothel-business? Deals with tobacco corporations to expand their operations and/or weaken our anti-smoking legislation?

What else is for sale to the highest bidder?

And is this really how New Zealanders see themselves – available for sale?

Is this the best we can do for ourselves, to become  a nation of economic prostititutes? (No offence intended to sex-workers.)

Addendum

Some years ago, my partner and I were passing through Auckland on our way to Whangarei to meet up with friends. We stopped in to see Skycity – out first opportunity to visit the tower.

As well as going up the skytower and standing on the glass foot-block, seemingly suspended hundreds of metres over empty air, we had a ‘nosy’ into the casino itself.

I was expecting the casinos of James Bond novels and movies, with patrons dressed in smart, formal evening-wear; jet-black tuxedos and outrageously expensive and outrageously sexy gowns…

What I found were, for the most part, were local Kiwis dressed so far ‘down’, as to appear they had just come from working on their gardens. It was unnaturally quiet, with figures bent over table and pokie machines. There was no “atmosphere” of excitement… more one of fixated desperation.

James Bond would have sniffed his nose with disdain and walked out.

Which is what we did.

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Related blogpost

ACC. Skycity. NZ Superannuation. What is the connection?

Doing ‘the business’ with John Key – Here’s How (Part # Toru)

Doing ‘the business’ with John Key – Here’s How

Dear Leader caught telling porkies (again)?! (part rua)

Dear Leader caught telling porkies (again)?!

National under attack – defaults to Deflection #2

Johnny’s Report Card – National Standards Assessment – Sunrise, Sunset, and Outlooks

NZ’s 21st Century Growth Industries – Drugs, Gambling, & Prostitution

John Key has another un-named source???

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John Key – am I detecting a seismic shift in public attitude?

10 February 2013 22 comments

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5923658

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Is Dear Leader  losing his touch? He doesn’t seem quite so “dear” to some people any more…

  • The Novopay foul-up just gets worse and worse and worserer with each passing pay cycle. Wouldn’t it have been cheaper to just delegate the pay-system into the hands of Lotto? The results would’ve been about the same.

 

  • Education Minister, Hekia Parata, screws up on a semi-regular basis. Does Key hand her the ceremonial sword and with a smile tell her, “you know what to do with this”. Nah, he annoints her as National’s “most effective communicator. Has anyone ever seen 4.4 million people do a collective face-palm?! Meanwhile, Joyce is the new de facto Minister of Education and Parata is given duct-tape to put over her mouth. This, for National, is seen as a “solution”.

 

  • Unemployment keeps going up and up and up and up… And when the stats cannot get any worse, they do a massive West Auckland-style u-turn and wheelie burn-out… Unemployment is no longer up – people have given up banging their heads against a brick wall. So the stats are now a mess. What they do indicate is that people are turning off from looking for work.  It must be depressing getting knocked back time after time after time after… And if you think it’s bad now, in bright sunny summer – wait till the gloom and shortened days of Winter really kick in with mass-depression.

 

  • Manufacturing and exporters are screeching like banshees that the high Kiwi Dollar is sending them to the wall… and Steven Joyce smiles benignly and sez, “things are challenging”. Not helpful, Mr Joyce. Not one bit.

 

  • The country’s third biggest construction company goes to the wall and the Nats do… nothing. Question: at a time when we have to rebuild the second (or third) largest city in the country – how does a fricken construction company manage to go into receivership?!?! Someone explain this to me. Wouldn’t that be like a water-tanker truck in the Saharan desert unable to sell water???

 

  • We have a critical housing shortage in the country… A shortage of housing?! But, but, but… isn’t the free market supposed to prevent these shortages??? What goes on here?

 

  • We have a shortage of skilled tradespeople, IT specialists;  healthcare professionals… whilst on the other hand, we have 175,000 unemployed. Hmmmm… shortage of skilled staff… 175,000 unemployed… shortage of skilled staff… 175,000 unemployed… shortage of skilled staff… 175,000 unemployed… why don’t we-? Nah. What a silly idea. For a moment there I had this ridiculous thought in my mind about re-training 175,000 unemployed to meet our skills shortages… Bugger me, where do I get these daft notions from.

 

  • National doesn’t want to build housing for New Zealanders. They say it’s up to the Free Market to do this. Government, sez Joyce, Brownlee, Key, et al, say that it’s not the role of government to offer subsidies or state housing. Unless you’re a private school. Or farmers wanting irrigation systems. Or Rugby World Cup. Or investors in a finance company. Or insurance companies. Or a movie producer – especially a foreign one. Then there’s plenty of money. Whoopie – lolly scramble!

 

  • But just don’t get silly over housing.

 

  • Steven Joyce wants to put the bulldozers and excavators into our conversation lands and have deep-sea drilling off our coast, in deep waters… because, you know, we don’t mind if the remaining few native forests in New Zealand are destroyed for the benefit of foreign investors. Or that we run a risk similar to the horrendous disaster in 2010 in the Gulf of Mexico which spewed millions of barrels of oil into the Caribbean. After all, the oil companies will look after us… *snort!*

 

  • Because National is not a hands-on government to create jobs and support local businesses. But if you’re a private school or Warner Bros, then the question becomes, “How much did you want me to make that cheque out for?”

 

  • Tony Ryall wants $30 million shaved from the Health budget (where else will we get the cash to subsidise those lovely furry Hobbit movies?!). So  grommett operations for kids may be cut. Hey who needs a pesky grommett anyway – and did I say how cool Hobbits are…? And of course those seven New Zealanders who are suffering from the terminal Pompe disease… they aren’t as cool as Hobbits.

 

There’s more.

But I think you, the reader, get’s the point. (Unless you’re a dedicated National/ACT supporter – in which case don’t you just lerrrve those cute Hobbits?)

But it seems that the bad news and continuing incompetance and just sheer lack of bright ideas from National is becoming too much for even National’s traditional cheer leaders…

Fran O’Sullivan wasn’t impressed. Not by a long shot. In fact, she seemed a bit ‘put out’ by Key’s inaction (as if it had suddenly dawned on her),

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Time for Key to call an economic summit

Full story

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For Fran O’Sullivan – who is widely noted as a bit of a Nationalphile – to be chiding her beloved Dear Leader indicates that even his adoring legion of glassy-eyed admirers are starting to feel frustration. When O’Sullivan criticises Key for “waffling” and then berates Key for “simply shrugging his shoulders” – then we know that not only is the honeymoon well and truly in the past, but the ‘marriage’ is verging on a trial separation.

O’Sullivan didn’t mince words when she bluntly stated that “faith is no excuse for a failure to act” and demanded that  “it’s time, surely, for Key to call an economic summit to address the issues New Zealand faces“.

Good call, Fran.

A few years too late, but hey, some of us are a bit slower than others.

Meanwhile…

Right wing/all-over-the-place  media “personality” and talkback host, Kerre Woodham wrote an extraordinary column on 23 December, last year. Had it been written at any other time than two days before Christmas – when 99% of the populace is bleary eyed with the so-called “Festive Season” (said through gritted teeth, I might add) – her words would have had far more clout.

In fact, I could just barely recall her column piece and retrieve it from my Bookmarks (filed under WTF?). For the reader’s edification – read and enjoy (if you’re a National/ACT supporter you may want to put down your deluxe, Jackson-autographed, mink-lined Hobbit and read this bit),

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Kerre Woodham - Nats run out of petrol

Full story

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If Kerre Woodham speaks closer for the Middle Classes, then National should be in high-gear panic mode by now. Her attitude was summed up thusly,

I thought John Key said that by cutting income tax rates we would be able to stimulate the economy. Guess that didn’t work. I thought Key said that he would be able to stem the flow of New Zealanders to Australia by building a competitive economy and offering after-tax earnings on a par with those across the ditch. Well, that hasn’t worked, either.

 There are now more people moving to Oz under National than there were under Labour. But instead of ‘fessing up and conceding nothing the Government has come up with has worked, the Prime Minister has produced a classic example of Orwellian double-speak.

Akshally, says Key, moving to Australia is a GOOD thing for New Zealanders to do. They’ll see the world, gain experience – no, just like everything else, Key is comfortable with the numbers of Kiwis farewelling this country.”

Source: IBID

That, readers, was the sound of a Middle Class person coming to the realisation that our esteemed Dear Leader; dodgy Party; and worthless policies – are a fraud.

That, readers, was the realisation by a Middle Class person that National was not about to meet their aspirations.

It is the same sound of  National’s ‘House of Cards’ crashing that we heard in the late 1990s. A crash which culminated in National’s election defeat on 27 November 1999.

When bene-baiting right-wing talk-back hosts like Woodham can make statements like,

Well, they may know how to make money for themselves but they don’t seem to have any answers when it comes to making the country richer.

If, after four years of government, the best strategy they can come up with to produce a surplus is to raise the fuel tax, they are devoid of initiative and bereft of imagination.”

Source: IBID

– then we know that the Middle Classes are starting to wake up. And they’re noticing that the Emporer is naked and it ain’t a pretty sight.

Next…

Businesspeople are running as fast as their feet can carry them – to a joint inquiry run by the Opposition Parties in Parliament – and it’s a brave/stupid/both National Government that ignores the signals,

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Exporters tell inquiry of threat from high dollar

Full story

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When a businessman – in this case managing director Gordon Sutherland –  says,

We know that – we’ve known that for a very, very long time. Of course we get efficient, of course we try and work as hard as we can to be efficient – it’s the only way we can exist. It drives me insane when people say, ‘Get efficient’. What do you think we are – idiots? We’re not.”

– then the Nats are treading on very thin ice to ignore such messages.

National is supposed to the the Party for business. So when business people begin to turn on the Nats – that’s a pretty bloody big signal that it’s the beginning of the end for this government. And considering Key has stated he will not lead National from the Opposition benches (see:  Key says he’ll quit politics if National loses election) – it’s ‘bye-bye’ Dear Leader.

Once he’s gone, the Nats will have left in their wake a poorly performing economy; high unemployment; growing income divide; higher child poverty; businesses about to collapse (Mainzeal already gone); and a raft of other tragic consequences.

The 2011-14 Key-led  administration will be remembered in the same way many New Zealanders view with derision the Bolger/Shipley-led National government from 1996-99.

Going by the next story, however, Key is already despised by a wide sector of the community.

But more to the point, that hostility is no longer held in check and is being voiced out loud,

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Mixed reception for Key at Big Gay Out

Full story

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What we are seeing now seems to be a  seismic shift in public opinion on Key and National. But more importantly,  where only a year ago people were reluctant to voice their dissatisfaction or hostility in public – now that shyness is disappearing. People are pissed off and they know who to vent at,

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200204-3x2-340x227

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In 2008, Key raised levels of expectation to new heights (see: A fresh start for New Zealand).

With promises of higher wages and other warm-fuzzy, populist nonsense, people voted for him in droves. Their expectations were raised as Key’s supreme self-confidence;  personal rags-to-riches story; and plausible rhetoric made them line up and put their trust in him.

The trouble with raised expectations, though, is that failing to deliver “the goods” results in an inevitable backlash. Not just at the ballot box, but in terms of vitriol. We tend to pull people of a pedestal mighty quick, if they stuff up.

National’s failure to meet those expectations may already be a foregone conclusion, as NZ Herald columnist, John Armstrong wrote on 22 December last year,

A slight sense of desperation was evident in National’s reaction to this week’s release of the Treasury’s latest forecasts.

National is not going to let anything stand between itself and its Holy Grail of a return to Budget surpluses within the next three years.

What was once merely a target now seems to be an obsession. The reason is straightforward. Some major economic indicators are starting to confirm anecdotal impressions of an economy close to tipping into recession,

National is therefore clinging ever tighter to the increasingly vain hope of balancing the books by its target date of the 2014-15 financial year.

Meeting the target is all part of National’s branding as the party of sound economic management. Failure on that front would be a major blow to its credibility.”

See: Gloom sets scene for tumultuous 2013

If meeting an accounting target is all that National has left – Shearer better start packing up now. He’ll be in the Prime Minister’s residence at the next election.

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References

Interest.co.nz: Stats NZ reports 23,000 jobs lost

NZ Herald: Time for Key to call an economic summit

NZ Herald: Kerre Woodham: Nats run out of petrol

Fairfax media: Mixed reception for Key at Big Gay Out

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

8 February 2013 8 comments

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

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

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

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

(With apologies to The Bard…)

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Farmers get it…

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'Well-deserved' $80m for irrigation

Full story

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Rich families get it…

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Richlisters up for Govt bailout

Full story

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Kids from rich families  get it…

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$43 million should be saved from private school subsidy

Full story

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Insurance companies get it…

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Government announces $500m bailout for insurer AMI

Full story

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Even cute, furry-footed Hobbits get it…

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OECD knocks 'Rings' films' multimillion tax subsidies

Full story

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And more for the Precious

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

Full story

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Hell, practically everyone can get it…

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business.govt.nz Grants & incentives

Source

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Subsidies for everything and everyone…

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

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Mainzeal collapse 'tip of iceberg'

Full story

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

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

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

Source: IBID

And it was all so unnecessary.

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

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

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

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

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

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

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

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

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

Expect things to get worse.

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Other Blogs

Keys bald-faced lies

Additional

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

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

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

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2013 – More redundancies…

31 January 2013 4 comments

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Job-Hunting-10-Tips-for-When-Your-Unemployment-Checks-Stop

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Last year’s talley of redundancies – by  no means complete – which added to the rise in unemployment to 175,000 New Zealanders looking for work;

The year is barely one month old, and reports are starting to come in of redundancies,

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Wool spinner to sell Oamaru plant

Source

Listen to more on Checkpoint

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This is yet another business that has been affected by the high exchange rate – the same high Dollar that Steven Joyce has resolutely maintained is “not a crisis”,

There is no generic crisis in manufacturing but I would certainly acknowledge it is challenging for some companies.”

See: Currency intervention a fool’s paradise, says Joyce

Strange – I would have thought that the loss of 40,000 manufacturing jobs in the last four years would qualify as a crisis?

And why is it, I wonder, that National is willing and happy to throw $65 million (of our taxes)  at Warner Bros (a multi-billion dollar overseas company), as a subsidy, to “create” 3,000 jobs,

I’m proud our Government took action to make sure The Hobbit films were made here. They created 3000 jobs and poured millions of dollars into our regions.”

See:  National – Celebrating The Hobbit

If my ‘take’ on this is correct,

  • 3,000 jobs ‘created’ – good
  • 40,000 jobs lost – meh!

And ironically, Key’s claims of 3,000 “new jobs” created may not even be correct! (see:  Key denies Hobbit job numbers made up) Dear Leader may be pulling another ‘swiftie’ on us, as he did with the Skycity convention-construction numbers. (See: Puzzle of Key’s extra casino jobs)

So by the numbers, for this year:

Expect this list to increase on a weekly basis.

This blogger also has ‘inside information’ that Veridian Glass – a Wellington-based glass-supplier for the glazing industry – will also be shedding an unknown number of staff, including truck drivers.

Last year’s shocking news that unemployment had reached 7.3% (175,000 men and women out of work) may only be the beginning.

The next Household Labourforce survey data may see unemployment rising even further.

Meanwhile, as the manufacturing and export sector suffer from an over-valued dollar;  more and more jobs are being lost; and business-owners are demanding action from National.

Meanwhile, Steven Joyce reminds us,

Nobody’s arguing that being a manufacturer isn’t challenging. In fact, in my history in business, every time you’re in business it’s challenging.

But going around and trying to talk down the New Zealand economy and talk about a crisis in manufacturing, I don’t think is particularly helpful.”

See: Exporters tell inquiry of threat from high dollar

Business people are supposedly National’s core constituents.

You wouldn’t think  so.

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“Nope. No manufacturing or export sector crisis down here.”

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= fs =

Did we just hear Steven Joyce sh*t all over his colleagues?!?!

31 January 2013 14 comments

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Government sticking with Novopay - for now

Acknowledgment: Radio NZ – Government sticking with Novopay – for now

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Steven Joyce,

Steven Joyce revealed that Education Minister Hekia Parata, Finance Minister Bill English and former education minister Craig Foss approved the use of Novopay despite being told that it had bugs.”

See: IBID

In colloquial terms, that is what is known as ‘dropping someone in it’ – “it” being brown, smelly, and heading for waste-treament ponds.

Is there a civil war going on within National, comprising two factions with one led by technocrat Steven Joyce and the other by neo-liberal Bill English?

Or is there something even more disquieting going on within National’s ranks.

Joyce added,

There was definitely knowledge there were bugs at the outset of going live. But the advice of all involved was that the thing should proceed. I doubt they’d give the same advice today.

Noticeably, when queried by media, all three Ministers had similar responses – obviously coached by the same tax-payer funded Party spin-doctors and media-minders,

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Mr Fix-It has Novopay plan

See: Mr Fix-It has Novopay plan

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Hekia Parata

I think hindsight’s a wonderful thing....

Bill English

In hindsight....

And the tongue-tied Craig Foss,

Well in hindsight… is a benefit of hindsight...

See: IBID

You can always tell when a politician has been coached; they use the same words and phrases over and over again. Spin doctors/media-minders develop a mantra, and their clients are expected to learn and parrot it, by rote. It takes a skilful journalist/interviewer to peel away the carefully-crafted coaching and get to the truth.

This indicates that Parata, English, and Foss had been pre-warned of Joyce’s press conference and admission of the three Minister’s actions.

So is this some sort of carefully managed internecine warfare?

Or a very subtle, clever strategy to neutralise possible Opposition disclosures in Parliament?

Joyce’s statements that there will be on-going problems with Novopay could be seen as an attempt to minimise future media reports on Novopay errors.After all, if National admits that there will be ongoing problems – does that make it news when it happens?

Whichever is the case, this is Steven Joyce at his most cunning, and the Opposition will need to be on their toes. As will the media, if they are not to be out-manouvered by National’s “Mr Fix It”.

“Mr Fix It” does not apply to sorting out computerised pay systems. “Mr Fix It” fixes political messes.

This certainly qualifies as the Mother of all Messes.

Addendum

As is common with National, Joyce attempted to shift blame onto advisors/bureacrats/Uncle Tom Cobbly, when he stated,

There was definitely knowledge there were bugs at the outset of going live. But the advice of all involved was that the thing should proceed…

My bet is that we will never, ever see this “advice”.

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= fs =

Karma for Key?

30 January 2013 9 comments

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John Key, on Hekia Pata, nearly a fortnight ago,

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“I actually think she’s a very effective communicator; in fact if you look at her history in politics, she’s been one of the smoothest communicators we’ve actually had.” – John Key, 18 January 2013

“I actually think she’s a very effective communicator; in fact if you look at her history in politics, she’s been one of the smoothest communicators we’ve actually had.” – John Key, 18 January 2013

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Hekia Parata, confirming Dear Leader’s assertion that she is  “one of the smoothest communicators we’ve actually had”,

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'Karma' strikes unpaid Education Ministry staff

Full story

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It takes a profound and deeply  callous indifference to make light of the ongoing Novopay fiasco and the resulting stresses on teachers and school admninistrators.

Parata may have been ‘joking’ when she made  her  “Karma” quip.

The joke, though, is on her and on John Key. I suspect that the moment this story hit the headlines, that Key was on the phone quick-smart and gave her a simple message; “shut the  – up!”.

As pundits have reasonable postulated, Key has evaded demands that Parata be despatched as Education Minister. (After all, only eight days ago he fired two other Ministers  who were nowhere as masterful in the  incompetance stakes  as Ms Parata.)

The difference, as the pundits have most likely correctly guessed, is that sacking Parata would’ve been seen as caving in to teacher’s unions, school boards, parents, and anyone else that she has pissed off in the last year or so. It would’ve been a major coup for the Opposition, who are now only 22 months away from becoming the next government.

So instead of sacking Parata, Key went for Plan B; side-line her so she is Minister of Education in name only, and assigned  National’s “hatchetman” – Stephen Joyce – as the real Power-behind-the-Ministerial-Leather-Throne,

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Joyce to take on handling of Novopay

Full story

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In the meantime, Key’s message to Parata would’ve been simple,

Sit there.

Smile vacantly.

Shut up.

And do nothing.”

As I wrote in my previous blogpost (see: National and the Cult of Buck-Passing )  on 22 Decemberlast year,

As  for Hekia Parata, this blogger is ambivalent about her resigning her portfolio.

A new Minister would simply take up the reins and pursue current National Party policies. Perhaps with a new vigour. That would be of no help to this country whatsoever.

Parata’s presence as Minister of Education has an ongoing “benefit” of focusing on the ideological nuttiness of National’s education “reforms”.

National’s education portfolio is a mess because National’s policies are, in themselves, a mess.

Why take away a constant reminder of National’s failings, by sacking one of it’s most inept Ministers?

Why put a fresh, new, clean face on a cesspit of problematic policies?

Why let the Nats off the hook?

Let Parata stay. It will give voters something to think about in 2014 (if not earlier).

It seems that two of my “predictions” have come  to pass,

  1. A new Minister would simply take up the reins and pursue current National Party policies.” Enter: Stephen Joyce.
  2. Let Parata stay. It will give voters something to think about in 2014 (if not earlier).” With her bizarre comments, she certainly is giving voters something to think about.

When Hekia Parata referred to Karma today, I think she was missing the Big Picture. See the bite marks on Key’s $50 million arse?

That’s  karma.

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References

Otago Daily Times: Joyce to take on handling of Novopay

NZ Herald: Parata safe in her job – Key

Dominion Post: No pay for Education Ministry staff

NZ Herald: ‘Karma’ strikes unpaid Education Ministry staff

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= fs =