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

  • Steven Joyce takes the scalpel to medical students
    This November access to the Student Loan scheme will be cut off at seven years seriously harming medical students. Studying to become a doctor takes years of hard work, dedication and intense study and it’s a blunt tool and… ...
    GreensBy Gareth Hughes MP
    2 hours ago
  • Tolley must assure safety of vulnerable clients
    Social Development Minister Anne Tolley must guarantee the safety of Relationships Aotearoa’s thousands of Māori clients – some of whom are very vulnerable – following the closure of the nationwide counselling service, Labour’s Māori Development spokesperson Nanaia Mahuta says. Relationships… ...
    5 hours ago
  • ANZ has moral obligation to fully compensate farmers
      The ANZ Bank has a moral obligation to fully compensate farmers after the High Court today declared it breached the Fair Trading Act by misleadingly representing interest rate swap loans, Labour’s Primary Industries spokesperson Damien O’Connor says. The Commerce… ...
    1 day ago
  • Fairfax can’t use restructure to cut terms and conditions
    The restructure and upheavals at Fairfax should not be used as an opportunity to cut journalists’ terms and conditions, Labour spokesperson for Labour Issues Iain Lees-Galloway says. “Businesses have to adapt to new technologies and consumer demands and there is… ...
    1 day ago
  • McCully excuses unravel in Saudi sheep scandal
    Murray McCully has misled New Zealanders, Parliament and his Cabinet colleagues on the real reasons for paying millions of dollars in the Saudi sheep scandal – it’s time for him to clean, says Labour’s Export Growth and Trade spokesperson David… ...
    1 day ago
  • Nats break health and education spending promises
    National has outstanding promises of almost $1 billion to be spent on health, education and agriculture from the Future Investment Fund but has only $536 million left in the fund, says Labour’s Finance spokesperson Grant Robertson. “John Key and Bill… ...
    1 day ago
  • Manurewa youth leaders acknowledged
    The depth and breadth of leadership of youth throughout Manurewa, which has been recognized at the Youth Week Award ceremony held at Parliament this week, should make the community extremely proud, Manurewa Labour MP Louisa Wall says. “The 'Limitless Youth… ...
    1 day ago
  • Oi Auckland Transport: fare’s fair
    Auckland Transport should go back to the drawing board on its proposal to charge commuters for its park-and-rides, Labour’s Transport spokesperson Phil Twyford says. “When we need to be getting people out of their cars and onto public transport, it’s… ...
    1 day ago
  • Is Nick Smith making it up as he goes along?
      Housing Minister Nick Smith must release the list of Crown land parcels which formed the basis of the Government’s Budget announcement, Labour’s Housing spokesperson Phil Twyford. “If the public is to have any faith the Government is not just… ...
    1 day ago
  • Norway moves first to dump coal investments
    The Green Party today called on the Government to secure cross-party support to sell its investments in coal mining companies.The Norwegian Parliament's finance committee agreed in a bipartisan motion yesterday to instruct the $1.2 trillion Government Pension Fund to sell… ...
    GreensBy Russel Norman MP
    1 day ago
  • Fonterra payout $13b black hole over 2 years
    Fonterra’s dramatic cut to its forecast farmgate payout over this season and next will lead to a $13 billion black hole over two years, and shows the need for a plan to diversify the economy, says Labour’s Finance spokesperson Grant… ...
    1 day ago
  • Labour calls for select ctte inquiry into Rural Broadband Initiative
    Labour is calling for an immediate inquiry into the flailing $300 million rural broadband initiative, before companies and consumers are forced to pick up the tab for the new $150 million broadband tax, says Labour’s ICT spokesperson Clare Curran. “Rural… ...
    1 day ago
  • Public broadcasting takes big hit under National Government
    Public broadcasting funding has been cut by 25 per cent in real terms since the National Government took office in 2009, leading to the erosion of our once world-class news and current affairs culture, says Labour Broadcasting Spokesperson Clare Curran. … ...
    1 day ago
  • Hospital food plan hits another snag
    The Government has been left with egg on its face with Hawke’s Bay District Health Board today giving a plan to outsource hospital food services the thumbs down, Labour’s Health spokesperson Annette King says. “Doing away with local kitchens by… ...
    2 days ago
  • Hospital food plan hits another sang
    The Government has been left with egg on its face with Hawke’s Bay District Health Board today giving a plan to outsource hospital food services the thumbs down, Labour’s Health spokesperson Annette King says. “Doing away with local kitchens by… ...
    2 days ago
  • Wilkinson appointment wrong in principle
    The appointment of former Conservation Minister Hon Kate Wilkinson as an Environment Commissioner is wrong in principle, says Labour’s Shadow Attorney-General David Parker. “The doctrine of separation of powers requires judicial processes to remain separate and independent from the legislature… ...
    2 days ago
  • McCully doesn’t deny bribe in Saudi sheep scandal
    “In Parliament today I asked Murray McCully directly: Why is he the first Minister in history to back a multi-million dollar facilitation arrangement which in other jurisdictions is called a bribe? says Labour’s Export Growth and Trade spokesperson David Parker.… ...
    2 days ago
  • National must back our future doctors
    National must support our future doctors and agree to the calls from the Medical Students’ Association and the Young Nats to lift the arbitrary 7 year cap on student loans for medical and dental students, Labour’s Tertiary Education Spokesperson David… ...
    2 days ago
  • Taxpayer the loser after Government folds
    Steven Joyce today admitted the main exhibition hall at the New Zealand International Convention Centre is 19 per cent smaller than what was described at the time other bidders were edged out of the process, Labour’s Economic Development spokesperson David… ...
    2 days ago
  • Govt’s lack of ambition for women
    Yesterday, the Government put out a media release entitled “Number of women leaders continues to grow”. It was to inform us that the percentage of women on state-appointed boards has increased to 41.7%, up from 41.1% in 2013. Well, woo-hoo… ...
    GreensBy Jan Logie MP
    2 days ago
  • Auditor-General exposes Key’s scapegoating of Council
    The National Government's blaming of Auckland Council for the city’s housing crisis has been exposed as scapegoating in the Office of the Auditor-General’s latest report, Labour’s Housing spokesperson Phil Twyford says. “The Auditor-General says Auckland Council’s part in fixing the… ...
    2 days ago
  • Reform – not money – needed for meat sector
    The National Government continues to throw good money after bad at the meat industry instead of addressing the fundamental problem of its dysfunctional structure, Labour’s Primary Industries spokesperson Damien O’Connor says. “The latest Primary Growth Partnership grant to the venison… ...
    2 days ago
  • Government cuts corners on school bus funding
    The safety of children – not cost cutting – should be the main objective behind the Government’s funding of school buses, Labour’s Education spokesperson Chris Hipkins says. “Buried in the detail of this year’s Budget are $19 million of funding… ...
    2 days ago
  • Women the losers under National’s cuts
    National’s poor performance in appointing women to state sector boards is set to get worse with funding cuts to the nomination service provided by the Ministry for Women, Labour’s Woman’s Affairs spokesperson Sue Moroney says. “Minister for Women Louise Upston… ...
    2 days ago
  • Help sought by agencies now asked to help
    The organisation Social Development Minister Anne Tolley has tasked with setting up an emergency hotline for stranded Relationships Aotearoa clients has just lost a bid for a government contract to launch a new national helpline, Labour’s Acting Social Development spokesperson… ...
    2 days ago
  • Wellington got loud again on climate
    On Monday night, in Wellington, I attended the last of the Government’s climate target consultation meetings. It was quite well attended with maybe 150 people, not bad for a second meeting with very little notice and, as far as I… ...
    GreensBy Jan Logie MP
    2 days ago
  • Final nail in coffin for Solid Energy workers
    Today’s confirmation of job losses at Solid Energy’s Stockton and Spring Creek mines shows the urgent need for new economic opportunities on the West Coast, Labour’s MP for West Coast-Tasman Damien O’Connor says. “Our economy can no longer rely on… ...
    3 days ago
  • Ramadi proves Iraq deployment high risk, low benefit
    The fall of Ramadi and the collapse of the Iraqi Army proves Labour was right to be concerned about the deployment of our troops to Iraq, Labour’s Defence spokesperson Phil Goff says. “The fall of Ramadi brings IS fighters within… ...
    3 days ago
  • English admits new taxes on the cards
    Eight months after pledging “no new taxes” at the election Bill English today admitted he would bring in more sneaky taxes along the lines of the border tax, says Labour’s Finance spokesperson Grant Robertson. “Not only did National bring in… ...
    3 days ago
  • What the Dickens is going on at SDHB?
    Problems at the financially-strapped Southern District Health Board appear to stretch to its HR department with information obtained by Labour showing it still records staff leave entitlements using manual book-keeping methods. “The Board’s draft 10-year plan document forecasts a cumulative… ...
    3 days ago
  • Teachers turn backs on new professional body
      The fact that just 56 per cent of nominations for the Education Council came from registered teachers shows the profession has turned its back on Hekia Parata’s new professional body, Labour’s Education spokesperson Chris Hipkins says. “Answers to written… ...
    3 days ago
  • No spade work done on big building plan
      Only a quarter of the 500 hectares of Crown land the Government wants to use for new homes is understood to be suitable for building on, Labour’s Housing spokesperson Phil Twyford says. “This was National’s bold new idea to… ...
    3 days ago
  • National: Seven KiwiSaver cuts in seven years
    National’s campaign of KiwiSaver cuts has reached seven in seven years as it dismantles KiwiSaver block by block, Labour Leader Andrew Little says. “KiwiSaver is critical to establishing a savings culture in New Zealand but National has taken a jenga-style… ...
    3 days ago
  • Tolley’s actions contradict reassurances
    Social Development Minister Anne Tolley has serious questions to answer following the forced closure of Relationships Aotearoa just days after her reassurances she was looking at ways to keep the service operating, Labour’s Acting Social Development spokesperson Annette King says.… ...
    3 days ago
  • SkyCity downsize another broken promise
    The downsized SkyCity Convention Centre does not deliver on the promised iconic world-class centre and shows the true extent of Steven Joyce’s incompetence, Labour Leader Andrew Little said today. “New Zealanders were promised an iconic world-class convention centre that would… ...
    3 days ago
  • Te Arawa partnership model a step closer
    Councils around New Zealand have an opportunity to improve their consultation with Iwi Māori by following Rotorua District Council’s Te Arawa Partnership Model, Labour’s Māori Development spokesperson Nanaia Mahuta says. “The Rotorua District Council will today decide whether to adopt… ...
    3 days ago
  • Labour mourns Dame Dorothy Fraser
    Labour Leader Andrew Little said the party is today mourning the loss of the youngest person to join the Labour Party, Dame Dorothy Fraser, who went on to be a stalwart of the Dunedin community and tireless worker for others.… ...
    4 days ago
  • The ultimate scapegoat: PM blames fruit fly for new tax
    The Prime Minister has found the ultimate scapegoat for breaking his promise not to introduce a new tax – the Queensland fruit fly, Labour’s Biosecurity spokesperson Damien O’Connor says. “John Key’s first policy upon taking office and assigning himself the… ...
    4 days ago
  • How many victims missing out on protection?
    Hundreds of domestic abuse victims could be missing out on getting protection orders because they are unable to get legal aid, Labour’s Justice spokesperson Jacinda Ardern says.“In the last two years some 351 people who applied for legal aid for… ...
    6 days ago
  • Government kicks hardworking whanau
    A major incentive to help young Kiwis and people on low incomes to start saving has been kicked out from under them with the National-led Government ramming through short-sighted legislation under Urgency today, Labour’s Maori Development Spokesperson Nanaia Mahuta says.… ...
    6 days ago
  • Speculator tax political stunt gone wrong
    Bill English’s admission he doesn’t know whether National’s new speculator tax will have any effect shows last weekend’s announcement by the Prime Minister was a desperate political stunt, says Labour’s Housing spokesperson Phil Twyford. “This Government is so desperate to… ...
    6 days ago
  • The value of parenting
    This week, as part of the Budget, the government introduced a bill to address child poverty. This bill will require parents receiving income support to look for part-time work once their youngest child is three years of age rather than… ...
    GreensBy Jan Logie MP
    6 days ago
  • Another new tax, another broken promise
    National has unveiled yet another new tax in this budget – a rural broadband levy that will almost certainly result in an immediate price hike for internet and telephone connections across New Zealand, Labour’s ICT spokesperson Clare Curran said “The… ...
    1 week ago
  • Anniversary of Sri Lankan Tamil Massacre
    This is not going to be a happy story but if the Green Party of Aotearoa doesn’t want to know who else will? May 18th marks the anniversary of what is known as the ‘Mullivaikal massacre’ of Tamils in 2009 at… ...
    GreensBy Catherine Delahunty MP
    1 week ago
  • Labour MPs join youth to take part in 40 hour famine
    A team of Labour MPs took part in the 2015 World Vision 40 hour famine and we were told by World Vision and the young people, that it was the first time MPs had joined them and how appreciative they… ...
    1 week ago
  • Rodeo: ‘Family entertainment’ or animal abuse?
    Recently  TVNZ ran a story with confronting footage showing rodeo animals being punched, repeatedly shocked with electronic prods and having their tails violently twisted over their backs. It was clear that significant force was being used behind the scenes to make… ...
    GreensBy Mojo Mathers MP
    1 week ago
  • Budget puts the squeeze on police
    The Government has cut funding to the New Zealand police force in the latest Budget, says Labour’s Police spokesperson Kelvin Davis. “The reduction is a whopping $15.3 million that could put front line officers at risk. ...
    1 week ago
  • Crucial social services take another hit
    The Government looks set to slash half a million dollars of funding for critical social services, including Women’s Refuge and Barnados, says Labour’s Social Development spokesperson Carmel Sepuloni “Taking $500,000 from organisations aimed at improving the lives of vulnerable families… ...
    1 week ago
  • Saying it Loud on Climate in Christchurch
    The Government’s Christchurch consultation meeting on New Zealand’s emission targets was inspiring – not for what was in the Ministry for the Environment’s (MFE’s) defeatist video about the obstacles to changing to a low carbon future, but for what the… ...
    GreensBy Eugenie Sage MP
    1 week ago
  • Budget silent on small business
    The Government has completely ignored one of the most important sectors of the economy – small and medium-sized enterprises – in Budget 2015, Labour’s Small Business spokesperson Jacinda Ardern says. "A stunning 41 per cent of jobs were created by… ...
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere