Hickey on how Key’s failing the kids

Written By: - Date published: 11:20 am, October 30th, 2011 - 15 comments
Categories: debt / deficit, john key, superannuation - Tags:

To: Sir John Key (former PM of New Zealand)
Address: Somewhere warm and comfortable
Date: August 6, 2026
From: New Zealanders born from 2002 to 2011, living in New Zealand, Australia, UK, US and Asia.
Subject: Happy 65th birthday

Dear Sir John,

We congratulate you on your 65th birthday.

We hope you are enjoying your retirement after your 24 years of service as an MP and your 12 years as Prime Minister.

We understand you are due to receive the New Zealand Superannuation from the taxpayers which, when combined with your wife Bronagh’s pension, still works out at 66 per cent of the average wage.

We also understand you will also be receiving a pension on top of that from the government from your years of service as an MP and Prime Minister. And we understand you have retained your wealth from your years as a successful foreign exchange trader and investment banker, including the tax-free capital gains made on the various properties you owned.

We had thought of buying you a present to go with your pension, the NZ Super and your own private savings, but we’re a bit short of cash at the moment.

In fact, we’re not that thrilled with some of the decisions you made 15 years ago, which mean we’re not feeling that flush right now.

We are the generation born between 2002, when you became an MP, and 2011, when you won your second of four terms as Prime Minister.

We wonder why you insisted on spending our inheritance to ensure you were voted back in.

We’re now either about to graduate, are unemployed or have just started work. Our taxes are about to go up to pay the interest costs on the debt you incurred and to pay for the healthcare and pension costs of your generation.

We understand your government borrowed $20 billion alone in the 2010/11 year. We remember the appalling earthquake, but most of this was to pay for middle-class welfare measures that Labour and National used during the 2000s to get themselves elected.

The tax cuts you delivered to your fellow wealthy New Zealanders had to be paid for with borrowings of $2.8 billion in the 2010/11 year alone. What happened to that money?

All we see now are excruciatingly high house prices in Auckland in particular.

We can’t afford to even think about buying a house here.

Those people of your generation that owned property when we started being born in 2002 became fabulously wealthy and paid no tax on those capital gains.

You and your generation then decided to keep the retirement age at 65 and the payment for a couple at 66 per cent of the average wage, even though the Retirement Commission, Treasury and a host of other experts told you that you could not afford to keep doing it, particularly now.

We understand you even said you would resign if you ever increased the retirement age or changed the 66 per cent payout.

We had a look through Hansard and found a quote from October 4, 2011, where you said you weren’t concerned about economic outlook beyond 2025. Why? We care. Why didn’t you?

Kind regards,

Bernard.

———————————————-
A chilling vision of the future. The way to avoid it seems to be to make sure that Key doesn’t get four terms, but only the one.

15 comments on “Hickey on how Key’s failing the kids ”

  1. Zaphod Beeblebrox 1

    Those tax cuts amount to generational theft. Give tax cuts to high earners now and don’t pay into the super fund. Whats more important ? Higher house prices in 2011 or not having the ratings agencies slashing our credit rating because we are too hedonistic to save for the future?

    Hickey is right on to it.

  2. Lanthanide 2

    I can’t really take anything Hickey says seriously because he’s essentially spouting double-talk and I’ve never seen him actually acknowledge or address it.

    One of his favourite topics is young New Zealanders moving off to Australia after they’ve graduated here because there are no jobs and the jobs in Oz are better paid. Then, in the next breath, he is calling on the government to get rid of interest free student loans because it’s unaffordable middle-class welfare and driving up the deficit.

    Well which is it? You take away interest-free student loans and you’re giving even more incentive for these graduates to move to Australia, where they will *need* to get a job with a higher salary in order to pay back the loan in any realistic time frame.

    • Nick C 2.1

      I’ve never understood this as an arguement for interest free loans. Reduced government expenditure as a result of abolishing IFSL would mean lower taxes and lower interest rates on other borrowing such as mortgages. You would pay the interest on the loan whether you live in Aussie or NZ, but you would only get the benefit of lower taxes if you live in NZ. So there is just as much or more incentive to stay in NZ.

      I also just dont buy the idea that people are mainly motivated to seek higher incomes overseas because they have debts. From my experience the people who move overseas for work arent the ones in financial hardship due to loans. They are people who are already quite comfortable, but got job offers with vastly higher salaries which they couldnt really refuse.

  3. Phaedrus 3

    So correct. Hickey’s credibility is high, especially as a reformed monetarist. Great to see this in the NZ Herald as well. The smile and wave facade is cracking, the mask is slipping and the real Key is being revealed.

  4. gingercrush 4

    Hickey looks seriously sick.

  5. gingercrush 5

    Its the same thing he does every few months. Just a rant that gets slightly adjusted whenever someone announces something. Of course prior to 2008 he was calling for a low flat rate. Since he went the other way that part has been removed. But the gist of it remains the same.

    • Colonial Viper 5.1

      Not a ‘rant’ – a narrative of where we are going wrong and why as a nation.

      We ignore it at our peril.

      If it seems to you that Hickey is being a broken record, fair enough. Its because NZ’s underlying economic themes which need to be changed have not been changed.

      And it seems to me that the 3000 New Zealanders leaving for Australia every month (including his family members) agrees.

      • Zaphod Beeblebrox 5.1.1

        So do Fitch’s and Standard and Poors- unlike the NZ media they can see what is going on.

      • gingercrush 5.1.2

        So lets remove working for families then and get interest back on student loans and implement a land tax on everything and reduce government spending to a pittance of what it is now. For that is Hickey’s wishlist.

        • McFlock 5.1.2.1

          His solution might not be something I agree with (although I’m not sure your summary does it justice), but he certainly identifies the problem. A bit like Marx, in that respect.

    • bbfloyd 5.2

      not a very convincing effort to shoot the messenger really…. insulting and patronising pseudo analysis, while occasionally momentarily amusing, is still pointless…. there’s more than a hint of “rant” about your comment itself…. is there a personal issue you aren’t sharing with us?

  6. Nick C 6

    Absolutely raise the age to 67. Annoyed by Key being hamstrung by this stupid promise, and I suspect that once he retires there will be a consensus that we should. To be fair to him I think he was motivated to do it in 08 to a) Try get rid of Winston b) As a responce to Clarks hysterical cries that Key would cut and sell everything, its entirely reasonable for him to think she would have started talking about superannuation to scare seniors when people realised that he wasn’t going to sell every state asset the minute he got elected.

    The other thing we should do is means test. I used to find it odd that Labour opposed means testing: Surely it allows more money to be saved which could be spent helping their poorest constituents. Then I realised that Labour dont care about their poorest constituents as much as they care about power.

    • dazed & confused 6.1

      Means testing? How would that work?

      Perhaps the supposed “well-off” at a certain cut off point have to sell their house and pay their rent and live off the invested income perhaps. Those who have the family home in an ideal trust world would of course be exempt. A targeted Super would not work, as it would just be avoided through trusts.

      In theory I like the United Party’s policy framework that appears to give flexibility, letting those people who work and stay active for longer opt for a larger amount later and a lesser amount for those who wish to take it up earlier…I’d need to really study the figures, but it could help address certain demographics and professions where premature aging is a characteristic.

      • Nick C 6.1.1

        You would have a dual asset and income test, with a sliding scale as to how much benefit is recieved. Only those who were very wealthy would recieve nothing, most people who go into retirement with good savings built up would still be recieving money.

        I disagree that you could use trusts to avoid the laws. Many aspects of the have to deal with the fact that people keep a substantial number of their assets in trust and have developed to do so, bankrupcy laws being an example.

Recent Comments

Recent Posts

  • EV road user charges bill passes
    Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April.  “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Bill targets illegal, unregulated fishing in international waters
    New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Reserve Bank appointments
    Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.  Carl Hansen, the executive director of Capital ...
    BeehiveBy beehive.govt.nz
    18 hours ago
  • Stronger protections for apartment owners
    Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Travel focused on traditional partners and Middle East
    Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend.    “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says.   Mr Peters will attend the NATO Foreign ...
    BeehiveBy beehive.govt.nz
    20 hours ago
  • Keep safe on our roads this Easter
    Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Cost of living support for over 1.4 million Kiwis
    About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Tenancy reviews for social housing restart
    Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Kermadec Ocean Sanctuary plan halted
    The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
    BeehiveBy beehive.govt.nz
    24 hours ago
  • Cutting all that dam red tape
    Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track.  “Dam safety regulations ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Drought support extended to parts of North Island
    The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Passage of major tax bill welcomed
    The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis.  “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Lifting economy through science, tertiary sectors
    Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government announces Budget priorities
    The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says.  The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government to consider accommodation solution
    The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government approves extension to Royal Commission of Inquiry into Abuse in Care
    Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says.                                         “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $18m boost for Kiwis travelling to health treatment
    The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says.   “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009.  ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM’s Prizes for Space to showcase sector’s talent
    The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Concerns conveyed to China over cyber activity
    Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government.     “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Independent Reviewers appointed for School Property Inquiry
    Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function.  The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Brynderwyns open for Easter
    State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to the Infrastructure Funding & Financing Conference
    Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Parliamentary network breached by the PRC
    New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ to provide support for Solomon Islands election
    Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ-EU FTA gains Royal Assent for 1 May entry to force
    The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union.    “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 inquiry attracts 11,000 submissions
    Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says.  “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Families to receive up to $75 a week help with ECE fees
    Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unlocking a sustainable, low-emissions future
    A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.  “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Chief of Army thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister to meet Australian counterparts and Manufacturing Industry Leaders
    25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government commits nearly $3 million for period products in schools
    Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech – Making it easier to build.
    Good morning, it’s great to be here.   First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning.  I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pacific youth to shine from boost to Polyfest
    Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • 2024 Ngarimu VC and 28th (Māori) Battalion Memorial Scholarships announced
    ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to Breast Cancer Foundation – Insights Conference
    Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Kiwi research soars to International Space Station
    New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to the New Zealand Planning Institute
    Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Support for Northland emergency response centre
    The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed.  “Northland has faced a number ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Celebrating 20 years of Whakaata Māori
    New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Some commercial fishery catch limits increased
    Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
    BeehiveBy beehive.govt.nz
    7 days ago

Page generated in The Standard by Wordpress at 2024-03-28T20:27:59+00:00