web analytics
The Standard
Advertising

False economy

Written By: - Date published: 11:13 am, March 6th, 2012 - 16 comments
Categories: economy, jobs, national - Tags: , ,

What ideas has National had to grow the economy?

There was the promise that tax cuts would magically do the trick, but that was never anything more than a blatant election bribe. There was the cycleway, but that’s a joke. There was tearing up our best conservation land, but the public quite rightly stepped up and smacked that down. Anything else?

If they have had other ideas, they haven’t worked yet. That’s because National’s approach is cuts and austerity, completely the wrong methods for difficult times. Because constructive ideas and growth are far too hard, they’ve focussed instead on the one and only goal of deficit reduction, which they think they can achieve with slash and burn (like a dieter fixated on a target weight who decides to reach it by hacking off their own limbs). And how’s that working out?

2500 jobs gone but state service saves only $20m

A squeeze on state service backroom functions has saved just $20 million in two years, Treasury boss Gabriel Makhlouf has revealed.

The Government has shed more than 2500 jobs in the past three years and ordered chief executives to shave their IT and human resources bills as part of a drastic overhaul of the public service.

But despite ambitious plans to save $1billion over three years, a `benchmarking’ report to be published next week will show 31 agencies and departments have managed to reduce spending by just $20m. …

In last year’s Administrative and Support Services Benchmarking Report, Treasury estimated government agencies could save more than $230 million a year from back-office functions

$20 Million? For 2,500 jobs lost (and who knows how many other lives affected). Was it worth it? (I wonder if that calculation even takes in to account the increased spending on unemployment and other benefits.) Is that the way that we’re going to save our economy? Bollocks it is.

Meanwhile other opportunities are slipping by. Investment in techniques for a sustainable, green economy, “cleantech”, could be the very answer that we’re looking for. But no, still fixated on short-term, destructive mining, the bungling of the Nats means that “NZ risks falling off green wave“.

No sign of a Brighter Future wherever we look. No wonder Kiwis are fleeing NZ in near record numbers…

16 comments on “False economy”

  1. Pete 1

    Treasury warns of deficit blowout

    “The Treasury said tepid wage growth and employment sapped source deductions, while insurance companies sought GST refunds, and companies paid less tax than forecast”. This government couldn’t manage an economy even if Bill English had a book called How to manage the economy in three easy steps.

  2. Kaplan 2

    Treasury warns of deficit blowout
    I’d like to think if nats and the treasury were on the board of public company they’d have had their backsides handed to them by now.

  3. Sanctuary 3

    2,500 unemployed x $250PW (single, 25+, accommodation supplement) unemployment benefit x 52 weeks = $32,500,000 in additional government spending.

    $250 per person per week is actually on the light side in terms of benefits available.

    Now, how big was that “saving” again?

    • vto 3.1

      $20,000,000 for 2,500 jobs equals $8,000 per job for 2 years.

      So, the clever dunces in this govt save $4,000 and spend $32,500.

      This lot are bloody thick. They simply can’t do maths. It is exactly like putting the ACC premiums up to make it more efficient for the private sector.

      Bill English needs to give his job up to a fifth form maths student.

    • Ianupnorth 3.2

      There is of course the assumption (on the part of NACT) that those 2500 laid off will walk into new jobs, except, those new jobs simply do not exist, as many people’s skill sets are quite different to those in the labour market.

    • Bored 3.3

      I would suggest that that number is totally under the radar….for a comparison lets go back to Marty Gs column a few years ago…. http://thestandard.org.nz/tax-cuts-for-rich-at-heart-of-debt-problem/

      So $1,500,000,000 borrowed for tax cuts for the rich PLUS $2,145,000,000 for unemployment (165000 employed at $250 per week times 52 weeks a year)…you might draw the conclusion that without the tax cuts we would only be in half as bad a position.

      This is a tribute to economic genius of Shonkey Jonkey, the bankster who used to gamble with others peoples money. Now he’s gambling with yours and your childrens childrens money.

  4. Kotahi Tane Huna 4

    Police are scratching their heads after a man was involved in a traffic collision involving his car and a bus stop, three letterboxes, some outdoor furniture and a tree. Security camera footage however, shows that the car was parked the whole time. The driver, a Mr. English, claims that he switched the engine off just before the crash.

    • Vicky32 4.1

      Talking of police, I just heard on 3 News, that police are to be given the option of “your pay or your job”.. I don’t remember details, I was listening whilst correcting someone’s English for their website… (Such (unpaid :( ) fun!)
      But it can’t be good…

    • David H 4.2

      One of Bill English’s Brighter family members involved??

  5. muzza 6

    Here is an example of why the savings have been so poor….

    Large public body, had foreign head leading large resourcing department, in a temporary capacity. During temporary leadership, contracts were signed with foreign based consultancy. Temporary head, now works for foreign consultancy, who have large number of “heads” inside the public body!

    Not really going to save anyone anything is it!

  6. Bored 7

    Actually, I think we could have benefited hugely with the public service cuts….Treasury disbanded completely and replaced with a $5 Tarot card reader….huge efficiency and cost savings gains.

    • Draco T Bastard 7.1

      Why pay $5 when we can get tarot readings for free? In fact, that site has a huge amount of choice for our governmental divination decision making.

      :twisted:

  7. Ianupnorth 8

    There is a hope that one day someone will have the balls to do this to our leader
     
    http://www.guardian.co.uk/world/2012/mar/05/former-icelandic-prime-minister-trial
     
    Does this sound familiar (my emphasis)

    Geir Haarde, who was ousted after Iceland’s three biggest banks collapsed and the country’s economy went into meltdown, could be jailed for two years if found guilty of gross negligence in failing to prepare for the impending disaster. He denied the charges and claimed that “only in hindsight is it evident that not everything was as it should have been”.
    Haarde was instrumental in transforming Iceland from a fishing and whaling backwater into an international financial powerhouse before the credit crunch caused the economy to crash almost overnight.
    The Icelandic parliament’s “truth report” into the causes of the crisis that forced the country to borrow $10bn (£6.3bn) to prop up its economy, accused him of “gross negligence”. He is also accused of failing to rein in the country’s fast-growing banks, whose paper value before the crash had ballooned to 10 times the gross domestic product of the island state of 320,000 people. And he is alleged to have withheld information that indicated the state was headed for financial disaster.

    • Kotahi Tane Huna 8.1

      His best defence is that he is a stupid man who got where he is by good luck, not merit. At least that angle would have the virtue of being backed up by research.

  8. Hami Shearlie 9

    Now we hear the tax take is down. But no talk from Blinglish of reversing the tax cuts to the wealthy. People could have understood a tax cut to large businesses who were willing to use it to employ more people, but giving it to ALL wealthy people was crazy!! The reason given was that it would kick-start the economy. FAIL! Giving a huge tax cut to people who did not use it to expand a business and employ more staff was madness – most of them put it in the bank or spent it on holidays overseas, so nz didn’t even get any of that back in revenue to nz businesses. I’m thinking that they won’t reverse the tax cuts purely out of self-interest, they love their fattened pay packets and their family trusts must be overflowing by now. After all, being a minister(and aren’t there a huge number of those) gets you twice the pay of a backbencher!

    Maybe now we are all starting to see why Simon Power left. He obviously knew all the new and very foolish policies that were being planned and didn’t want to be connected with them. The Nats are realising the loss of Power now, he was popular with many people, and it’s funny, they’re only just starting to realise that their beloved Steven Joyce ain’t a popular guy!! Who’s left to take over from Shonkey – Judith Collins? I bet she even scares her husband!!!

Important links

Recent Comments

Recent Posts

  • Inaction on mandatory social worker registration unacceptable
    Labour believes the Government is putting the most vulnerable members of our society at risk by not acting on the advice of officials to urgently make the registration of social workers mandatory, says Labour’s spokesperson for Social Development, Carmel Sepuloni. … ...
    2 hours ago
  • Government’s housing failure puts pressure on Reserve Bank
    The Government’s failure to take action on the housing crisis has put pressure on the Reserve Bank Governor who has to deal with a rampaging housing market and low inflation at the same time, says Labour’s Finance spokesperson Grant Robertson.… ...
    3 days ago
  • Labour wishes Russel Norman well
    The Labour Party wishes Russel Norman well in the future as he stands down as Green Party co-leader, Labour Leader Andrew Little said today. “Russel has made a significant contribution to New Zealand politics in his nine years as co-leader… ...
    3 days ago
  • Russel Norman to stand down as Green Party Co-leader in May
    Green Party Co-leader Dr Russel Norman has announced today that he will stand down as leader at the party's Annual General Meeting in May.Dr Norman will remain as Co-leader and retain his finance and climate change portfolios until the AGM."After… ...
    GreensBy Russel Norman MP
    3 days ago
  • Russel Norman to stand down as Green Party Co-leader in May
    Green Party Co-leader Dr Russel Norman has announced today that he will stand down as leader at the party's Annual General Meeting in May.Dr Norman will remain as Co-leader and retain his finance and climate change portfolios until the AGM."After… ...
    GreensBy Russel Norman MP
    3 days ago
  • UE bar hike denies access to thousands
    A Government rule change denying access to thousands of young Kiwis access to tertiary education is doing nothing to build a smart, fair future, Labour’s Tertiary Education spokesperson David Cunliffe said today.  “NZQA rules changed by the Government have reduced… ...
    3 days ago
  • Progressive Rainbow rights? Yeah, nah….
    Legally, New Zealand is perhaps one of the more progressive countries when it comes to lesbian, gay, bisexual, transgender and intersex (LGBTI) rights even though we have further to go on the last two. However, the latest Westpac’s Rainbow Acceptance… ...
    GreensBy Jan Logie MP
    4 days ago
  • National’s back to the future on housing sell-off
    National’s newly announced state housing policy is simply a re-run of its failed ideologically-driven 1990s experiment, Labour Leader Andrew Little says. “News articles from the mid-1990s uncovered by Labour shows this is just more of the same. ...
    4 days ago
  • National’s back to the future on housing sell-off
    National’s newly announced state housing policy is simply a re-run of its failed ideologically-driven 1990s experiment, Labour Leader Andrew Little says. “News articles from the mid-1990s uncovered by Labour shows this is just more of the same. ...
    4 days ago
  • National’s back to the future on housing sell-off
    National’s newly announced state housing policy is simply a re-run of its failed ideologically-driven 1990s experiment, Labour Leader Andrew Little says. “News articles from the mid-1990s uncovered by Labour shows this is just more of the same. ...
    4 days ago
  • Waihopai – years on, still the same
    On 24 January, I attended the Waihopai Base protest in my electorate.  It was attended by a great range of people who are all concerned about the direction our country is heading in.  Thank you to all of those who… ...
    GreensBy Steffan Browning MP
    5 days ago
  • Greens call for ring-fencing of state home proceeds
    The Government must ring-fence the proceeds of any state home sales and spend every dollar raised on more Government-built homes in order to address the housing crisis, the Green Party says.Prime Minister John Key has indicated that his first major… ...
    GreensBy Kevin Hague MP
    6 days ago
  • English breaks his $6000 wages promise
    Just one month into the new year Bill English has already rowed back on his election promise of real wage rises for New Zealanders, says Labour’s Finance spokesperson Grant Robertson. “During the election campaign National promised Kiwis that the average… ...
    2 weeks ago
  • National fails to produce evidence justifying attack on RMA
    The National Government is misusing evidence provided in the Motu report on planning rules to justify gutting the environmental protections secured by the Resource Management Act (RMA), says the Green Party today. The Motu group's research into the impacts of… ...
    GreensBy Julie Anne Genter MP
    2 weeks ago
  • RMA changes won’t knock a dollar off the cost of a new home
    The Government’s proposed changes to the RMA won’t increase the number of affordable homes or knock a dollar off the cost of building a new house, Labour Leader Andrew Little says.  “Tinkering with the RMA will not solve National’s housing… ...
    2 weeks ago
  • What is the real ‘price of the club’?
    What price is too high to join a club?  According to the current the New Zealand Prime Minister, the lives of young Kiwi men and women are a part of the package. In his latest BBC interview, John Key fails… ...
    GreensBy Kennedy Graham MP
    2 weeks ago
  • Palestine – NZ talks loudly in New York, does little at home
    Even though New Zealand has been gently slumbering over the last few weeks, world affairs have been progressing at its usual break-neck speed. There have been a number of significant steps since we all disbanded from the last parliamentary year.… ...
    GreensBy Kennedy Graham MP
    2 weeks ago
  • Palestine – NZ talks loudly in New York, does little at home
    Even though New Zealand has been gently slumbering over the last few weeks, world affairs have been progressing at its usual break-neck speed. There have been a number of significant steps since we all disbanded from the last parliamentary year.… ...
    GreensBy Kennedy Graham MP
    2 weeks ago
  • DOC debacle means hundreds may have missed out on fishing licences
    Hundreds of families and recreational fishers may have had their holidays spoiled by missing out on their fishing licences, with Conservation Minister Maggie Barry preferring instead to focus on more high profile portfolio priorities over the summer break, Labour’s Conservation… ...
    2 weeks ago
  • Effective action needed against pirate fishing boats
    New Zealand’s failure to detain pirate shipping vessels poaching endangered species in our region is simply not good enough, Labour’s Defence spokesperson Phil Goff says. “We send New Zealand naval vessels to the Arabian Gulf to board pirate ships there… ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere