web analytics
The Standard
Advertising

David Parker’s Greece-proof paper

Written By: - Date published: 5:05 pm, May 22nd, 2012 - 30 comments
Categories: budget2012, david parker, economy, labour, same old national - Tags:

Don’t blame Greece.

I was fortunate enough to go to David Parker’s pre-budget speech to business people this morning. He coined it his “Greece-proof paper” as he talked through how New Zealand’s problems are for our government to solve – rather than just blaming Greece.

Conservative ol’ National isn’t prepared to change the orthodoxy, to change from business as usual.

And with that we continue down the same track – down OECD rankings for wealth, and to an ever larger current account deficit as we slowly, inexorably, sell ourselves off to sustain our path.

As ever, it will be up to Labour to make the changes we need to our economy.

National will tinker with welfare, increase class sizes and prescription costs, and reduce police numbers.

But they won’t solve the real problems in their budget.

They won’t make it so it’s better to invest in productive Kiwi businesses rather than land as it is now. They won’t solve our lack of capital. They won’t look at the severe problems our exchange rate has on our exporters. They won’t encourage investment in research and development to make a smarter economy.

They won’t touch superannuation with a barge pole. Despite the fact that in just 3 years time it will be 20 times all other benefits combined, and they tell us of the pressing need to make sure the few hundred parents under 18 are spending “correctly”.  In 3 years time the super budget will be larger than all education – from pre-school to tertiary – combined.  Will they consider how we afford that?

No.

A CGT, compulsory savings, changes to our monetary policy, r&d tax credits and a rise in the super age are all necessary, and all out of the Government’s view.

Parker would like to see Reserve Bank decisions made by the Board, rather than just the Governor, and that Board to have the interests of exporters, and labour (small l) represented.  A few more instruments would be added to their tool kit and they wouldn’t solely target inflation – growth, exports, current account deficit, jobs would all be a consideration.

We wouldn’t wait until we have only 2.5 working people for each pensioner (or worse if those left have headed to Oz to escape the bill…) before we discuss changes to the age of eligibility for our Super scheme.

And we don’t want to keep flogging our brightest and best companies overseas because there is no New Zealand money to invest in them.  A compulsory savings scheme like Australia’s (or Kirk’s, as scrapped by Muldoon…) would massively deepen our capital pool.  A Capital Gains Tax would mean that people are less likely to invest in property for the tax advantage, and more likely to invest in productive business that will actually help our economy.

Research and Develop­­ment tax credits will encourage our businesses to focus more on the smart tech­nologies that are high value and create high value jobs.

While not against all mining, drilling and mineral exploitation (outside National Parks at any rate…), Parker points out they’re unlikely to save us – or they already would have.  Other than our pristine National Parks the restrictions on those industries are light, so any lack of exploitation is due to private companies not feeling it is worth it…

When asked about working with the Greens on such issues, Parker’s own environmental streak came through: he doesn’t see a problem working with them, because he agrees with them – and the Pure Advantage group of businesses.

We shouldn’t mine our parks, we shouldn’t have watered down our Fresh Water standards, and the polluter should pay the costs, not push them off to society or the environment.  That’s why he spent 3 years fighting to get the ETS through – again sadly watered down by this government.

Pure Advantage understands that it’s beneficial to NZ for business to own their environmental credentials. More regulation will in fact strengthen our environmental services sector, and is a real selling point overseas.

Some good ideas from David Parker, and once again it is up to the left to be Progressive and initiate the change our society needs.

If you change nothing, nothing changes, and we’ll keep getting fabulous projections and disappointing results like all of National’s budgets so far.  0.6% growth in total over the last 3 years, despite predictions like this:

30 comments on “David Parker’s Greece-proof paper”

  1. ochocinco 1

    I take issue with your comment (on the frontpage blurb) that our “brightest and best” are heading to Australia

    Our “best” don’t abandon their country for 40 pieces of silver. Our “best” are loyal to the bitter end. Our “best” value patriotism above individual wealth. Our “best” realise NZ won’t get better by running away to the GC.

    • Carol 1.1

      Our “best” are loyal to the bitter end. Our “best” value patriotism above individual wealth.

      You don’t include John Key in “our best”, then?

    • tc 1.2

      admire the sentiments but hardcore reality differs once you see medical,engineering and trade talent moving across the ditch.

    • Kotahi Tane Huna 1.3

      Our best know that when patriotism is valued, a nation has fallen into decay.

    • Draco T Bastard 1.4

      Patriotism isn’t rewarded or, to be more precise, those who stay out of patriotism get shafted even more. It cannot be a one way street, the community needs to ensure that people have a reason to stay. NACT and the previous governments back the 4th Labour government haven’t been doing that as they’ve been cutting away all the reasons why people would want to stay – interesting, well paid jobs and community spirit rather dog eat dog competition. The only people who have been catered to over the last three decades have been the rich and they’ve seen their exploitation of the masses made easier under free-market dogma.

    • Eddie 1.5

      I don’t think it’s morally bad of people to leave nz for opportunities overseas. it’s bad when government policy and poor economic management results in more people making that choice.

      and i’m wary of an argument that relies on patriotism. there’s a valid case for looking out for the national interest, because that’s the community you live in. patriotism though, loving your country right or wrong, that’s something else.

      • Draco T Bastard 1.5.1

        patriotism though, loving your country right or wrong, that’s something else.

        Yep, sure is.

        Patriotism is the last refuge of a scoundrel.

    • prism 1.6

      What? ochocinco

      Our “best” don’t abandon their country for 40 pieces of silver. Our “best” are loyal to the bitter end. Our “best” value patriotism above individual wealth

      What is this stirring propaganda? Sounds like a general or sergeant major busy building team morale to be ready for going over the top chaps. People deserve to have a life of their own. We don’t want to be chesspieces for deluded people who think like you.

    • Ben Clark 1.7

      Actually heading to Australia isn’t particularly our brightest and best either – it’s a wide cross-section of the population (including our brightest…), as 1.2% of us is highly likely to be. But those motivated to move are likely to be the go-getters – as seen by the fact that NZers have the lowest unemployment of any group in Oz (despite Australians thinking it’s quite the opposite).

      The real brightest and best that it’s a worry that we’re losing are our tech companies: A2 milk, Right Hemisphere, Biovittoria – great New Zealand success stories sold overseas or in the process of selling. Largely to get more capital. Now our great ideas are earning other countries their fortunes.

      State asset sales will of course worsen the problem. What little capital there is free here will be absorbed by those behemoths as they completely dominate. More innovation will be lost. And yet somehow the Nats think it’ll be good for our stockmarket etc to be completely dominated by these energy companies, ruining any diversity and absorbing all capital…

      • prism 1.7.1

        Just think of all those useful millions that might have gone into building great innovative NZ businesses but went down with shitty finance houses of cards. Plus South Canterbury Finance where private money was lost and then public money went in to save it from drowning. That is the likely end of all our savings because our investment environment controls are geared towards such behaviour.

        • Colonial Viper 1.7.1.1

          R&D tax breaks are going to encourage NZ companies to do private research? A little maybe, but its drop in the bucket stuff which does not recognise the sheer size of the mountain this country faces. What are others in the asia-pacific doing, in comparison?

          The Biopolis is the hallmark of Singapore’s R&D success. It co-locates public sector research institutes with corporate labs and is designed to foster a collaborative culture among the institutions and organisations under its roof. At Biopolis, scientists, technoprenuers and researchers meet, forge partnerships and grow with renowned scientific institutions, through intensive research and graduate training programmes.

          The Biopolis enables researchers to access state-of-the-art facilities, scientific infrastructure and specialised services. These allow companies to cut R&D costs significantly and accelerate the development timeline. In addition, there are conference facilities and meeting rooms that companies can use. By 2013, the Biopolis will provide more than 3.3 million square feet of space for biomedical sciences R&D activities.

          http://www.edb.gov.sg/content/edb/sg/en_uk/index/industry_sectors/pharmaceuticals__/industry_background.print.html

          • prism 1.7.1.1.1

            CV So that’s how smart countries get on! A tutor at a business economics class told us that NZ was an outlier, the only country that had been able to progress into the developed economies using agriculture.

            Now dairy prices are falling, the wool and lamb market decimated, trees dependent on mono culture fast growing pine, a type of tree that will only remain strong using expensive compression methods or unpopular and unhealthy chemicals, when we have drowned our scenic rivers in flat lakes suitable for boaties and jet skis, will we have much income earning capacity with jobs providing livable wages?

            Our smart industries will have been bought out by overseas interests because of our own dopy cargo-cult lack of interest in providing for ourselves in a self-managing country with expertise and energy and capability. We’re going along that slippery slope quite nicely now thank you but all children’s slides have a soft end that absorbs the fall, I do hope the powers that be think ahead far enough to provide that. Not!

    • kiwi_prometheus 1.8

      Not for 40 pieces of silver, just a half decent chance of getting a reasonable wage, owning a home etc.

    • JonL 1.9

      Bollocks!

  2. Ad 2

    That was a good solid speech. I liked that he put his business credentials on the line. I liked that he supported his colleagues. I liked him reaffirm support for the Capital Gains Tax.

    Didn’t like the wiggle on Kiwisaver. We should get straight back into saving as a nation.

    Didn’t like the lack of export or sector targets, particularly if he is prepared to be so bold.

    Parker, please do more of this. Just need that extra media cuthrough rather than being overshadowed by Norman.

  3. prism 3

    Yes Norman has been heard a lot recently and making good points, sounding good.

  4. Colonial Viper 4

    Labour being the advocates of raising the retirement age. Talk about walking away from your base.

    Why not institute a 0.5% asset tax focussed on the top 5% in order to pay into the super fund. Then drop the retirement age 2.5 years in order to help the mass excess of young people to enter the workforce.

    The more you raise the retirement age, the more you turbocharge youth unemployment.

    Think, people, please.

    • Ed 4.1

      I don’t see this as walking away from the base. The reality is that Labour started doing something about the baby boomer bulge, but a worse extra liability is increasing longevity. With National plundering any cash they can see, we will find it difficult to fund even longer term liabilities. It is a discussion we need to have – National are likely to turn from ignoring the problem and denying they will ever do anything (either to pre-fund or to reduce payments) to suddenly creating a scare and wanting to move quickly to an age 70 or 75 start – but you can bet they will never want to means test payments. This is an issue that must be talked about, and I believe any changes should be phased n over 20 to 30 years. There are alternatives – and we should not be rushed into making sudden changes.

      In the meantime there are other important issues that Labour is also addressing – lets not concentrate on the long term at the expense of the short term – already this budget and policies around it are shaping up to be a shocker for the majority of New Zealanders

      • Colonial Viper 4.1.1

        I don’t see this as walking away from the base.

        The base sees this as walking away from the base. I’m not talking about the social liberals. I’m talking about the 80% of the Labour Party which has long gone since the 1980’s.

        That is, the working class. I’ve heard old (>70 years of age) Labour supporters whom these retirement age proposals don’t even impact, tell me how shit the proposals are and how they voted for Winston because of them.

    • rosy 4.2

      I’m beginning to agree with you on this CV. I do think a flexible retirement age is a good thing, depending on how worn out the body and mind are, but you’re are right – there are not enough jobs to go around.

      First things first, imo, is means testing super and never paying it while a person is still in paid employment.

      • Blue 4.2.1

        “First things first, imo, is means testing super and never paying it while a person is still in paid employment.”

        That should be a no-brainer. I really don’t get why Labour wants to move the age up to 67 rather than addressing the elephant in the room.

        NZ Super is a massive cost to the state, and paying it to people who don’t need it is a straight up waste of money. But no pollie will touch it, to the point where increasing the retirement age for everyone, even manual workers who physically can’t work until 67, is seen as more palatable than trying to introduce means-testing.

  5. Roy 5

    I know I’ve been flamed on this site before for saying this, but I think we need means-testing of superannuation. It could be quite generous; there is no need to penalise the pensioner who supplements their income with rental from a single spare house they were canny enough to buy. I’m talking about not shovelling money at people who are already millionaires. The Wellington CBD high-rise office block I work in belongs to a superannuatant (not Bob Jones in this case, but he’s another example). I mean, seriously, is it really so tory to object to seeing the likes of Don Brash and Bob Jones getting superannuation?

    I also agree with those who think it is absurd to pay super to people who still have a job. Someone who still holds down a job and also is collecting super is a double-dipping bludger, IMO. I speak as someone who has a close relative who made plenty as a GP until they were 75 years of age, happily pocketing super as well from 65. What a rip-off artist!

    • prism 5.1

      Roy GPs are not in huge over supply so he was probably more asset than money drain. And any money earned or capitalised should be looked at. Someone working could be good, and allowed to keep super if they also mentored and trained a young person. That would not be easy but would get some started in the workforce. Those not working but creaming off the money in interest, or who have arranged their affairs so well that they can actually be issued a Community Services card are another matter.

      It could be that the wealthy could still have cheap prescriptions or such. Just not the dosh that they don’t need.

Important links

Recent Comments

Recent Posts

1 2 3 7

  • Time for NZ to prohibit the killing of great apes
    That ban was widely hailed, and spurred efforts in other countries to get similar bans. However, apes are still being exploited, abused and killed, both in captivity and in the wild. Examples of cruelty, neglect and abuse abound. Apes are… ...
    GreensBy Mojo Mathers MP
    3 hours ago
  • Auckland building consents: Tragic
    The only word to describe the latest building consent figures for Auckland is ‘tragic’, Labour’s Housing spokesperson Phil Twyford says. “Whatever the Government is doing to address the Auckland housing crisis, it is clearly not working. ...
    4 hours ago
  • A whiff of a new biosecurity scandal?
    A pest which could create havoc for New Zealand’s horticulture and agriculture sector must be as much a focus for the Government as hunting out fruit flies, Labour’s Biosecurity spokesperson Damien O’Connor says. “While the Ministry for Primary Industries is… ...
    7 hours ago
  • Government shrugs off health sector crisis
    Despite new evidence showing that cuts to health spending are costing lives the Government continues to deny the sector is struggling, Labour’s Health spokesperson Annette King says. “Health services in New Zealand are in crisis. ...
    1 day ago
  • Parata lowered the bar for failing charter school
    When Hekia Parata became aware that the Whangaruru charter school was experiencing major problems her first action was to drop standards by reducing the number of qualified teachers they had to employ, Labour’s Education spokesperson Chris Hipkins has revealed. “Hekia… ...
    1 day ago
  • National not being straight about the economy
    John Key and Bill English need to be straight with New Zealanders about the damage their failure to diversify the economy is doing, after new figures show export growth plunged due to a collapse in dairy exports, says Grant Robertson.… ...
    1 day ago
  • Mind the Gap
    This week the International Monetary Fund released a report on the wider economic value in closing the gender pay gap. When even the bastions of free-market economics start to raise concerns about gender pay gaps, we have to realise how… ...
    GreensBy Jan Logie MP
    1 day ago
  • Labour will hold National to parental leave promise
    Labour will hold National to its promise to increase the support given to new parents of premature, multiple birth and babies born with disabilities, Labour’s paid parental leave campaigner Sue Moroney says. "I am naturally disappointed that after battling for… ...
    2 days ago
  • It was all just pillar talk
    Steven Joyce’s confession that he can no longer guarantee a pillar-free design for the New Zealand International Convention Centre shows the Government has abandoned its dream of creating an ‘iconic’ ‘world-class’ structure, says Labour Economic Development spokesperson David Clark. “Steven… ...
    2 days ago
  • Australians move on offshore speculators
    John Key might want to have a quiet word with Australian Prime Minister Tony Abbott about Canberra's just-announced crack down on offshore speculators when he visits New Zealand this week, Labour's Housing spokesperson Phil Twyford says."Tony Abbott's centre right government… ...
    2 days ago
  • Government at odds on overseas driver crashes
    National backbencher Jacqui Dean has spoken out about overseas driver crashes, putting herself at odds with Prime Minister John Key who is on record as saying it’s not a big issue, Labour’s Transport spokesperson Phil Twyford says. “I’m not surprised… ...
    2 days ago
  • Human Rights and the Palestine Crisis
    Last week I heard two Palestinians speak at Wellington events about the ongoing crisis in their country. Samar Sabawi spoke to a full house about the history of Palestine and gave us a lucid and disturbing account of the situation… ...
    GreensBy Catherine Delahunty MP
    2 days ago
  • Time to take real care of our kids
    An Amnesty International report has once again criticised New Zealand’s track record on looking after our kids, Labour’s Children’s spokesperson Jacinda Ardern says. The annual report, which looks at global human rights abuses highlights not only the fact that high… ...
    2 days ago
  • John Key wrong about Labour’s war vote
    John Key’s desperate claims that the former Labour Government didn’t put combat troop deployment to a Parliamentary vote are simply wrong, Labour’s Defence spokesperson Phil Goff says. “It was disgraceful that the Prime Minister ran rough shod over democracy and… ...
    2 days ago
  • Māori language bill needs work
     It is clear that the first draft of the Māori Language Bill was about structures and funding rather than the survival of te reo Māori, Labour’s Māori Development Spokesperson Nanaia Mahuta says.  “Labour is pleased that the Minister of Māori… ...
    2 days ago
  • Report proves troubled school shouldn’t have opened
    The long-awaited release of an Education Review Office report into Northland’s troubled Whangaruru charter school proves it should never have been approved in the first place, Labour’s Education spokesperson Chris Hipkins says. “This report identifies problems with absenteeism and disengaged… ...
    3 days ago
  • Reply to PM’s statement on deploying troops to Iraq
    “The decision of any Government to send troops to a conflict zone is a very serious one, and it is right that this House takes time to consider it, to debate it, and, ideally, to vote on it, but we… ...
    3 days ago
  • Minister must take action on death trap slides
    Workplace Relations Safety Minister Michael Woodhouse must take urgent action to ensure inflatable amusement rides don’t become death traps for children, Labour’s spokesperson on Labour Relations Iain Lees-Galloway says. “No one wants to stop kids having fun, but horror stories… ...
    3 days ago
  • Manus Island and the New Zealand Government
    This week the Greens have participated in awareness activity about Manus Island, the refugee camp on an island in Papua New Guinea where Australia dumps asylum seekers. John Key says that he has every confidence in the Australian Government’s claim… ...
    GreensBy Catherine Delahunty MP
    1 week ago
  • Election Inquiry – Getting accessible voting on the agenda
    James Shaw has been doing a series of blogs on the Election Inquiry into last year’s general election.  I thought this was a great opportunity to raise an issue very dear to me – accessible voting. Last year’s general election… ...
    GreensBy Mojo Mathers MP
    1 week ago
  • RMA changes no solution to Christchurch housing
    Housing will continue to be a big issue in 2015. The latest Consumer Price Index, released last month, shows both good news and bad news on the housing front. After years of being the most expensive place to build a… ...
    GreensBy Eugenie Sage MP
    1 week ago
  • Saving kokako in South Auckland’s Hunua Ranges
    It is amazing that you can hear the song of the endangered North Island kokako in South Auckland’s Hunua Ranges, less than 50 kms from the central city. A heavy schedule of policy workshops at the Green Party’s Policy… ...
    GreensBy Eugenie Sage MP
    2 weeks ago
  • Let’s not turn a blind eye to human rights
    The Cricket World Cup has just opened in New Zealand, and it’s an opportunity for us to shine on the world stage. International sport can be a chance for us to build relationships with other countries, and examine what it… ...
    GreensBy Catherine Delahunty MP
    2 weeks ago
  • Its Just Not Cricket
    This week it was my privilege to work with Sri Lankan Tamil communities in this country and host Australian journalist and human rights advocate Trevor Grant. I knew a bit about Trevor from his biography but I didn’t know just… ...
    GreensBy Catherine Delahunty MP
    2 weeks ago
  • Time for NZ to #BeCrueltyFree
    The Government is about to progress the final stages of the Animal Welfare Amendment bill. This will be our last opportunity to get changes made to improve the bill to ensure a better outcome for animals. I have put forwards… ...
    GreensBy Mojo Mathers MP
    2 weeks ago
  • We want access!
    Access to buildings is a big issue for many New Zealanders. It looks like that, due to the hard work and persistence of people in the disability community, the Government may finally be starting to take access to buildings seriously.… ...
    GreensBy Mojo Mathers MP
    2 weeks ago
  • Greens call on Super Fund to divest from fossil fuels
    The Green Party today called on the New Zealand Superannuation Fund (the Fund) to divest from fossil fuels, starting immediately with coal. The call was accompanied with a new report, Making money from a climate catastrophe: The case for divesting… ...
    GreensBy Russel Norman MP
    2 weeks ago
  • Young Kiwis’ housing crisis
    Shelter is a fundamental human need along with food, water and clean air. All humans need adequate shelter; it’s a human right. Warm, safe, stable accommodation is critical for young people to be able learn and grow and just be.… ...
    GreensBy Jan Logie MP
    2 weeks ago
  • On the River Patrol in Te Tai Tokerau
    Last Wednesday, I went on a tour of some of Northland’s rivers with  Millan Ruka from Environmental River Patrol as he monitored water quality throughout Te Tai Tokerau. The dry conditions meant we couldn’t use the boat but we visited… ...
    GreensBy Catherine Delahunty MP
    2 weeks ago
  • Opening of Parliament 2015
    Russel NormanOpening of Parliament Speech February 2015 Tēnā koutou Tēnā koutou Tēnā koutou katoa. A brief history of climate change What a summer! It's been hot, even here in Wellington, hotter than any summer I can remember. All… ...
    GreensBy Russel Norman MP
    2 weeks ago

Removed at the request of The Daily Blog.
Public service advertisements by The Standard

Current CO2 level in the atmosphere