web analytics
The Standard

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.

      😈

  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!!!

Recent Comments

Recent Posts

  • RMA: We need to know
    Environment Minister Nick Smith needs to spell out to New Zealanders what they can expect from his substantial reform of the RMA, says Labour’s Environment spokesperson Megan Woods.  In an open letter to the Minister, Megan Woods has urged him… ...
    49 mins ago
  • He Aituā! He Aituā!
    “Papā te whatitiri! Hikohiko te uira! Ka wāwāhia ki runga o Hikurangi maunga, o Waiwhetū kainga. “Kua katohia e te ringa kaha o Aituā i tetahi pou whakarae o te reo Māori. Nō reira kei hea taku manu tui… ...
    17 hours ago
  • Stratoil – Iwis do what National will not
    Tomorrow, Far North tribal representatives for the Te Hiku o Te Ika tribes will be travelling to the head office of Statoil to discuss the opposition to its oil exploration program in Te Reinga Basin. Statoil have decided to begin… ...
    GreensBy Gareth Hughes MP
    18 hours ago
  • Mana whenua head North to oppose oil drilling
    It was good to hear the news that a mana whenua delegation is heading north, a long way north, to make their views known about the proposed  oil drilling off the Northland coast. The roopu will be representing iwi and hapu… ...
    GreensBy David Clendon MP
    19 hours ago
  • Ministers must act on 111 failure
    Lives are being put at risk if the company contracted to manage emergency 111 calls can’t cope with increased numbers, Labour’s ICT spokesperson Clare Curran says. “Saturday’s situation where people calling the emergency services were unable to get through and were… ...
    21 hours ago
  • People trying to save lives don’t deserve abuse
    WorkSafe New Zealand staff trying to save lives on farms shouldn’t be subjected to a tirade of verbal abuse from a Member of Parliament, Labour’s spokesperson for Labour Issues Iain Lees-Galloway says. “Chester Borrows has labelled WorkSafe New Zealand officials… ...
    22 hours ago
  • Action on laws needed in Privacy Week
    The Government must speed up promised law changes to reassure the public their private information is in safe hands as the country marks Privacy Week, Labour’s associate Justice spokesperson Clare Curran said today. “The previous Justice Minister Judith Collins announced… ...
    24 hours ago
  • Māori Caucus call on iwi leaders support
    Labour’s Māori caucus has sent an open letter to iwi leaders around the country seeking their support for meat workers currently in employment negotiations with Talleys.  “We are aware that when Talleys locked out workers for a period of 89… ...
    1 day ago
  • National still splashing cash on charter school experiment
    New figures confirming that charter schools are still being funded at up to four times the rate of their state school counterparts shows just how desperate the National Government is to make its experiment a success, Labour’s Education spokesperson Chris… ...
    3 days ago
  • Regions pay price for inaction on housing
    New figures put the cost of an average Auckland home at $800,000 and show large parts of the country facing stagnant or falling property values, Labour’s Housing spokesperson Phil Twyford says. “The QV data released today shows residential property values… ...
    4 days ago
  • Regions pay price for inaction on housing
    New figures put the cost of an average Auckland home at $800,000 and show large parts of the country facing stagnant or falling property values, Labour’s Housing spokesperson Phil Twyford says. “The QV data released today shows residential property values… ...
    4 days ago
  • PPP schools not at expense of community groups
    The Government must guarantee community groups will not be the losers out of its signing of a $298 million deal for four more public private partnership (PPP) schools, Labour’s Education spokesperson Chris Hipkins says. “Community groups will find it more… ...
    4 days ago
  • Surplus: The biggest broken promise ever
    Bill English has failed to deliver on his double-election campaign promise of a surplus by this year, instead delivering seven deficits out of seven budgets, says Labour’s Finance Spokesperson Grant Robertson. “The Government spent seven years and two election campaigns… ...
    4 days ago
  • McDonald’s serves up some McHappiness
    Unite Union and McDonald’s have given New Zealand a perfect way to celebrate May Day by reaching a settlement that strikes another blow against zero-hour contracts, Labour spokesperson for Labour Issues Iain Lees-Galloway says. “Earlier this week it looked like… ...
    4 days ago
  • Justice delayed and delayed and delayed
    Today we found out that the case of the prominent New Zealander  charged with indecent assault will retain name suppression until the case goes to court in about a year. Putting aside the appropriateness or not of granting name suppression,… ...
    GreensBy Jan Logie MP
    4 days ago
  • No golden age for books
    The ‘indefinite’ postponement of an initiative designed to encourage people to read Kiwi books will be a major blow to local authors, publishers and booksellers, Labour’s Arts, Culture and Heritage spokesperson Jacinda Ardern says.News that the annual NZ Book Month… ...
    5 days ago
  • Cracks showing in economy of milk and houses
    Fonterra’s latest cut to its forecast farmgate payout confirms that an economic black hole of $7 billion is opening up that will seriously affect the regions, says Labour’s Finance spokesperson Grant Robertson. “The cut confirms the long term trend of… ...
    5 days ago
  • Human Rights – An Issue for Everyone
    This week, the issue of human rights has been everywhere in the news. We have seen John Key prioritise a free trade agreement with Saudi Arabia over all else with no guarantee of human rights clauses being included. We have… ...
    GreensBy Catherine Delahunty MP
    5 days ago
  • Govt inaction on housing keeping rates high
    The Government’s failure to rein in the housing crisis means the Reserve Bank Governor cannot lower interest rates despite inflation being at 15-year lows, says Labour’s Finance spokesperson Grant Robertson. “Inflation is below the target band and the economy has… ...
    5 days ago
  • What do our refugee policies say about us?
    It is my pleasure to share with you a blog from Hester Moore who is currently interning with the United Nations High Commission on Refugees in Cairo, after graduating from the Univeristy of Canterbury. Sometimes, as a nation it is… ...
    GreensBy Denise Roche MP
    5 days ago
  • Tamaki state housing transfer risky and desperate
    The Government’s transfer of 2800 state houses to the Tamaki Redevelopment Company -- to be announced at 9am today -- shows it's desperation to off-load state houses and show some kind of action against Auckland's out of control housing crisis,… ...
    5 days ago
  • Tamaki state housing transfer risky and desperate
    The Government’s transfer of 2800 state houses to the Tamaki Redevelopment Company -- to be announced at 9am today -- shows it's desperation to off-load state houses and show some kind of action against Auckland's out of control housing crisis,… ...
    5 days ago
  • Woodhouse should close work visa loophole
    The Immigration Minister must revoke the work visas of temporary Chinese engineers working on KiwiRail trains and close the loophole that allows their employers to avoid New Zealand employment laws, says Labour’s spokesperson for Labour Issues, Iain Lees-Galloway. “New Zealanders… ...
    6 days ago
  • Job losses show folly of Chorus’ copper cuts
    Chorus and the Government are neglecting the copper broadband network, leading to 145 potential job losses at Transfield Services as well as poor services in the regions, says Labour’s Broadcasting Spokesperson Clare Curran. “Steven Joyce and Amy Adams have made… ...
    6 days ago
  • National quietly ditches its surplus promise
    National has quietly dropped its long-promised return to surplus by this year by removing the date it will get the books back in the black from its online campaign material, says Labour’s Finance Spokesperson Grant Robertson. “National’s pledge to reach… ...
    6 days ago
  • Even cheap houses now unaffordable
    New housing affordability data show that now even the cheapest houses in Auckland are unaffordable for first home buyers, says Labour’s housing spokesperson Phil Twyford.  “The AMP360 Home Loan Affordability Report reveals Auckland's lower quartile house price has leapt to… ...
    6 days ago
  • Key’s careless chatter tips off Arabic media
    John Key has shown a frightening lack of judgement in disclosing to an Arabic media outlet that Kiwi troops are in the UAE awaiting deployment to Iraq, Labour’s Foreign Affairs spokesperson David Shearer says. “At the same time the Prime… ...
    6 days ago
  • Child poverty will not be solved by vouchers
    New Zealand has debilitating levels of child poverty, entrenched violence against women and children, and the ongoing effects of colonisation on Maori are brutalising communities. When we dwell on the statistics – which mostly we don’t because it all seems… ...
    GreensBy Jan Logie MP
    6 days ago
  • Simon Bridges spent over $6500 on Northland
    Transport Minister Simon Bridges spent over $6519 on travel and flights to Northland for the by-election – spending around $1000 a week, Labour’s Acting Leader Annette King says. “Simon Bridges’ desperate dashes to Northland got him in political hot water.… ...
    6 days ago
  • Firing squad deaths deplorable
    The execution of eight men by an Indonesian firing squad is deplorable, Labour’s Foreign Affairs spokesperson David Shearer says. “New Zealanders do not support the use of the death penalty under any circumstances. ...
    6 days ago
  • Aged care workers need more than talk
    Yesterday AUT released the New Zealand Aged Care Workforce Survey 2014. The conditions of aged care workers are important for many reasons. We have an ageing population and people are going into care/requiring care later than before, so it’s critically… ...
    GreensBy Jan Logie MP
    6 days ago
  • Aged care needs urgent attention
    The Government must stop neglecting older New Zealanders and the people who care for them and give urgent attention to a sector that is in dire straits, says Labour’s Associate Health Spokesperson Iain Lees-Galloway. “The lead author of the New… ...
    6 days ago
  • Passing the buck a disaster in the making
    Moves to overhaul the social services sector are nothing more than privatisation in drag and are a potential disaster in the making, Labour’s Social Development spokesperson Carmel Sepuloni says. “A report from the Productivity Commission supports the Government’s push for… ...
    6 days ago
  • Tauranga’s oil spill shows potential for devastation
    When the Rena ran aground off the Bay of Plenty coast, the impact was overwhelming. Some 2000 dead birds were found, and up to 20,000 birds are thought to have been killed. Taxpayers paid nearly  $48 million in the aftermath… ...
    GreensBy Eugenie Sage MP
    6 days ago
  • More hype and half-truths from Coleman
    The rising incidence of rheumatic fever has nothing to do with ‘families having a better understanding of the disease’ as the Health Minister wants us to believe but everything to do with his failure to address the root causes of… ...
    7 days ago
  • Regional air routes must be maintained
    The Government must use its majority shareholding to make sure Air New Zealand cooperates with second tier airlines stepping into the regional routes it has abandoned, Labour’s Transport spokesperson Phil Twyford says. Air New Zealand’s cancellation of its Kaitaia, Whakatane,… ...
    7 days ago
  • Action needed on decades old arms promise
    Nuclear weapons states must honour the unequivocal promise they made 45 years ago to disarm, says Labour’s Disarmament Spokesperson Phil Goff. Mr Goff is attending the Nuclear Non-Proliferation Treaty Review Conference at the United Nations in New York. ...
    7 days ago
  • Worker safety top of mind tomorrow and beyond
    Workers’ Memorial Day, commemorated tomorrow, is both a time to reflect and to encourage a better safety culture in all workplaces, says Labour’s spokesperson for Labour Issues Iain Lees-Galloway.“On Worker’s Memorial Day, working people across New Zealand will remember those… ...
    1 week ago
  • Communities forced to stomach water woes
    Confirmation by Health Minister Jonathan Coleman that he is to wind up a water quality improvement scheme will leave thousands of Kiwis with no alternative but to continue boiling their drinking water, Labour’s Health spokesperson Annette King says. The Drinking… ...
    1 week ago
  • Labour calls for immediate humanitarian aid for Nepal
    The Government should act immediately to help with earthquake relief efforts in Nepal, Labour’s Foreign Affairs spokesperson David Shearer says. “The Nepalese Government is appealing for international assistance following yesterday’s massive quake. The full impact is only now being realised… ...
    1 week ago
  • New holiday reflects significance of Anzac Day
    Anzac Day now has the full recognition that other public holidays have long enjoyed, reflecting the growing significance it has to our sense of identity and pride as a nation, Labour MP David Clark says.“The importance of the 100th Gallipoli… ...
    1 week ago
  • Housing crisis hurting export growth
    If Steven Joyce wants to revive his failing export growth target he needs to make sure the Government gets to grips with the housing crisis, says David Parker, Labour’s Export Growth and Trade spokesperson. “Our exporters are struggling to compete… ...
    2 weeks ago
  • Gallipoli’s lesson: never forget, never repeat
     A special monument to one of our greatest war heroes should be a priority for the new Pukeahu National War Memorial Park, Labour Leader Andrew Little says.  “This will honour the spirit of Lieutenant Colonel William Malone, who led 760… ...
    2 weeks ago
  • Minister for who? Women, or Team Key?
    Louise Upston yesterday broke her silence on John Key’s repeated unwanted touching of a woman who works at his local café, to jump to the defence of her Boss. Upston repeated Key’s apology but, according to media reports “she refused… ...
    GreensBy Jan Logie MP
    2 weeks ago
  • Taxpayer bucks backing US billionaire
    Kiwis will be horrified to know they are backing a Team Oracle subsidiary owned by a US billionaire, Labour’s Sports and Recreation spokesperson Trevor Mallard says. It has been revealed today that a Warkworth boat building company, which is wholly… ...
    2 weeks ago
  • English’s sins of omission: ‘Nothing left to be done’ on housing
    When Bill English said ‘there is nothing left to be done’ on the Auckland housing crisis he had overlooked a few things – a few things, Labour’s Housing spokesperson Phil Twyford says.  “He’s right if you ignore: ...
    2 weeks ago
  • Climate change now hurts Kiwis
    Kiwis have twice been given timely and grave warnings on how climate change will hit them in their hip pockets this week, says Climate Change spokesperson Megan Woods.  “The first is the closure of the Sanford mussel plant and the… ...
    2 weeks ago
  • Clean, green and chocolate!
    Like many people I absolutely love chocolate! But until recently I hadn’t given much thought to how it was grown and produced. Fair trade and ethical food production are core Green Party principles, so yesterday Steffan Browning and I were… ...
    GreensBy Mojo Mathers MP
    2 weeks ago
  • National admits loan shark law not up to it
    National has admitted new laws to crack down on loan sharks, truck shops and dodgy credit merchants aren’t up to the task of protecting vulnerable consumers, Labour’s Commerce spokesperson Kris Faafoi says. “Paul Goldsmith has acknowledged the laws might just… ...
    2 weeks ago
  • Power and the Prime Minister
    I’d like to acknowledge the young woman* who has publically told her story. It was a very brave thing to do. She kept her story very simple and focussed on her experience of what happened. It told of unwanted attention… ...
    GreensBy Jan Logie MP
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere