web analytics

John Key – Economic Miracle Maker

Written By: - Date published: 7:02 pm, July 9th, 2013 - 24 comments
Categories: david parker, Economy, john key, Politics, privatisation, uncategorized - Tags:

John Key morphing

You have to hand it to John Key and this National Party.  It appears that they are economic miracle makers, able to  make money go way further than it should do and capable of, a la loaves and fishes, making what is left more than what was initially introduced.

What makes me say this?  Their ability to stretch the Future Investment Fund to extreme limits.

I must admit that I was initially opposed to the selling of the SOE shares.  After all their return were about 15% or so and it was proposed that the proceeds would reduce debt on which the Crown only paid an interest rate of 5% or so. I thought the idea made no financial sense whatsoever.  Indeed I thought that the phrase “financial lunacy” was applicable.

But I was not aware of the miraculous powers that the Government had to make the money last and last.  Two reports suggest the Government has decided to spend or is thinking of spending the sale proceeds of the share floats on the following projects:

  • $100 million on propping up Solid Energy.
  • $426 million for the Christchurch Hospitals redevelopment.
  • $94 million for the fourth year of KiwiRail’s turnaround plan.
  • $80 million for irrigation infrastructure.
  • $10 million for the National War Memorial Park.
  • $50 million to speed up the School Network Update Project.
  • $500 million for Christchurch’s justice and emergency services precinct and to help the Canterbury Tertiary Education Institutions recover from the earthquakes.
  • $172 million for building new schools to meet the demands of a growing population.
  • $1 billion for priority health investments
  • $1 billion for the 21st century schools program
  • $5.4 million for extending Health on the Police network.
  • $7.2 million on upgrading our distress beacon systems
  • $1.4 million on rolling over the Matriach Accounting System
  • $15.7 million on rebuilding Auckland’s Refugee Centre

They are also suggesting that the Crown contribution of the Auckland Inner City Rail Loop and maybe other transport assets could also be paid out of this fund.  The Crown contribution to the inner city loop alone has been assessed at $1.4 billion.

This is a total of up to $4.9 billion of spending not including Auckland’s other transport assets and they have only earned $1.7 billion so far.  The Meridian share sale, worth possibly $2.4 billion, is looking sick on it and Solid Energy is looking positively anemic.  It was thought that the share sale could be worth a billion or so.  If you take these figures off the top end estimate of $7 billion for the sale proceeds you have only $3.6 billion.  And the Government previously promised to reduce debt by an estimated $6 billion dollars and to stave off a credit rating downgrade!  Unfortunately the credit rating downgrade occurred anyway. Those overseas Credit Assessors obviously do not appreciate the extreme skills that John Key brings to the job.

This truly is a miraculous result by this Government.  Of course there is no reason to think that they will not succeed.

And interestingly the Solid Energy $100 million appears in this Budget document

Solid Energy

Yet it has been redacted in this Budget document

Solid Energy2

Why could this be?

24 comments on “John Key – Economic Miracle Maker”

  1. Gruntie 1

    He’s just a man – he’s not the Messiah !

  2. Gruntie 2

    Correction

    He’s not the Messiah – he’s just a naughty boy !

  3. karol 3

    Is that the redacted bit that English was asked about in the House today?

    Hon David Parker: Given that Treasury documents from March 2013, recently released under the Official Information Act, state that Cabinet has already agreed to spend $616 million against the Budget 2013 Future Investment Fund’s spending profile, then list Christchurch hospitals, irrigation infrastructure, and the National War Memorial, at a total of $516 million, was the other $100 million blanked out for Solid Energy?

    Hon BILL ENGLISH: I understand that it was, but Treasury is wrong. The Government has not committed to $100 million from the Future Investment Fund, as the member asked in the first question. The Government decides what the Future Investment Fund is spent on, not Treasury accountants.

    It’s all the Treasury’s fault?

    • mickysavage 3.1

      I believe so Karol. And if “it is all the treasury’s fault” means that “none of us actually saw it or read it or we now understand it could be politically embarrassing and we want to deny all knowledge and blame someone else” then yes.

      • Colonial Viper 3.1.1

        Maybe Key and English do believe in printing money out of thin air after all?

        • Draco T Bastard 3.1.1.1

          Of course they do – they know how the banking system works and they’re quite happy about it.

    • Alanz 3.2

      “It’s all the Treasury’s fault?”

      This is tremendous improvement on National’s part in not blaming Labour.

  4. chrissy 4

    Maybe they are getting budgeting advice from Christine Rankin.

    • geoff 4.1

      Leave Christine out of it! She could feed the entire Nation of thrupence and ha’penny a week!
      “Please, Miss Rankin, may I have some more??”
      “No you may fucking not youfilthy little worm!! I’ve got to stretch a single weetbix across 200 thousand snivelling little shits!!! Now get back to sewing those fucking stuffed kiwis for the wealthy Chinese tourists!!”

      • Rosetinted 4.1.1

        geoff
        You’re getting awfully mixed up. You’re thinking of the bible story of feeding the multitudes with a few loaves and fishes. Surely you don’t think that Christ-ine is the embodiment of the divine resurrected?

    • dumrse 4.2

      Sure as fuck won’t be from your man Cullen.

  5. Yes 5

    The numbers don’t add up above! Have I missed something?

    • mickysavage 5.1

      The total of the bullet pointed expenses is $3,461.7 billion and the cost of the inner city loop is $1.4 billion. The Government did say that asset sale proceeds could be used for up to $10 billion of Auckland’s transport assets so the total could be even bigger …

  6. yeshe 6

    they must have learned maths from hekia in one of her schools … just amazing isn’t it ?

  7. Rosetinted 7

    A Radionz BBC talk on middle class entrepreneurs in Ghana tonight had people saying things that could equally be applied to NZ.

    A politician stressing that government doesn’t need to run everything and private enterprise can do it. Cost of living too high. Company taxation has been brought down. But water may be delivered only four times a week. Electricity goes off and businesses have to save to buy generators.

    Nobody thinks they are well off even those who are relatively so.
    The banks won’t lend the young people money. Furniture can be imported cheaper than the same quality made in the country.

    • Yes 7.1

      They have a left wing government too! Must be ok then

      • Draco T Bastard 7.1.1

        Sounds like they got a “left” government that’s like Labour – decidedly on the right of the political spectrum.

  8. georgecom 8

    One of the comments floating round before the last election, in regards to a CGT, was the aussie saying “a dollar earned is a dollar earned”, meaning however a dollar was earned, it should be taxed.

    With Key and his Government, a dollar earned is $3 spent.

  9. Sable 9

    This government are fundamentally dishonest. Question is with their blanket ownership of mainstream media will people see past the smoke and mirrors come election day? Personally I have my doubts.

  10. Follow-the-money 10

    I think I know how it could happen.

    The Future Fund is hauled up to Sky City & put it all on black. No, it isn’t guaranteed, and, yes, there is an element of risk, but thousands of kiwi mums & dads are taking those same risks every day. This is the biggest recession since the 1930s, and it needs visionary thinkers to create bold policy.

    Well, at least it’s an idea, and that’s better than nothing.

Recent Comments

Recent Posts

  • Government spend up on state house sell off
    The Government has spent $28.9 million and has 129 officials working on its misguided state house sell-off, says Labour’s housing spokesperson Phil Twyford.  “This is a scandalous waste of taxpayers’ money on a policy that won’t deliver a single extra… ...
    13 hours ago
  • Housing crisis has huge impact on education
    The National Government’s failure to get on top of the housing crisis is having a major impact on the quality of education a lot of school kids are getting, Labour’s Education spokesperson Chris Hipkins says.  “There are thousands of kids… ...
    17 hours ago
  • Minister celebrates while arts organisations face cuts
    Maggie Barry was full of self-congratulations for her small arts announcement in the budget, ignoring the pain that a large number of organisations are facing due to her inaction, says Arts, Culture, Heritage spokesperson Jacinda Ardern.  “The Budget delivered a… ...
    18 hours ago
  • Regions miss out again in Joyce’s Koru Lounge Fund
      The regions have missed out yet again with Steven Joyce offering just $10m a year for key regional development projects while trumpeting a bunch of re-heated announcements, says Labour’s Economic Development spokesperson David Clark. “The dairy downturn has put… ...
    2 days ago
  • Children’s Commissioner misses out in Budget
      The Office of the Children’s Commissioner has missed out on a much needed boost in this year’s Budget, meaning they will be forced to continue their reduced monitoring role of CYFs residences, says Labour’s spokesperson for Children Jacinda Ardern. … ...
    2 days ago
  • Communities miss out in Budget
    Budget 2017 has left community and NGO providers feeling exposed about the services they provide to vulnerable families especially in smaller towns and communities, says Labour’s Whānau Ora Spokesperson Nanaia Mahuta. “Approximately $40m will go into Whānau Ora to work… ...
    2 days ago
  • Budget2016: Two Worlds
    Sometimes I feel as if I live in two worlds. The world created by the National Government where everything is great and they’re doing a great job and the world as seen through the eyes of child advocates, community workers,… ...
    GreensBy Jan Logie
    3 days ago
  • Parekura would be proud – MTS gets boost
    The Labour Party is ecstatic that the Māori Party have shown support for one of Labour’s proudest policies, says Labour’s Māori Broadcasting Spokesperson Peeni Henare.  “The Māori Television Service was launched in 2004 by the late Hon Parekura Horomia. ...
    3 days ago
  • Māori housing in state of emergency
    The Government needs to declare a state of emergency for Māori Housing, says Labour’s Māori Development spokesperson and Te Tai Tokerau MP Kelvin Davis. “The extra $3 million a year Māori Housing Network fund will not scratch the surface in… ...
    3 days ago
  • State house sell off in disarray after provider pulls out
     The Government should cancel its planned sell-off of state houses after the second big community housing provider pulled out leaving the process in disarray, says Labour’s Housing spokesperson Phil Twyford.  “It is time for the Government to back away from… ...
    3 days ago
  • Nothing in Budget to help police to solve crime
    The Police Minister has failed to make communities safer with virtually no new money in yesterday’s Budget for police to address the appalling burglary resolution rates, says Labour’s Police spokesperson Stuart Nash.  “It’s a disgrace there’s no money or aspiration… ...
    3 days ago
  • Blog – Budget 2016: What about ordinary working people?
    Ordinary working New Zealanders don’t fare very well from this Budget. Setting aside the spin from the Government, it contains a lot to be concerned about and a fudging of the numbers. Green Party workplace relations spokesperson Denise Roche For… ...
    GreensBy Denise Roche
    3 days ago
  • Real wages go backwards for next two years
    New Zealanders’ real wages will fall for the next two years as the cost of living outpaces forecast pay rises, says Leader of the Opposition Andrew Little. “New Zealanders have been doing it tough for far too long. They expect… ...
    3 days ago
  • The Attack on Public Education – by a thousand cuts
    Budget 2016 is another step towards the free public education system being a memory from the past. The Budget freezes the operations grant for schools and does not sufficiently cover the real increase in numbers of students entering the education system.… ...
    GreensBy Catherine Delahunty
    3 days ago
  • The Attack on Public Education – by a thousand cuts
    Budget 2016 is another step towards the free public education system being a memory from the past. The Budget freezes the operations grant for schools and does not sufficiently cover the real increase in numbers of students entering the education system.… ...
    GreensBy Catherine Delahunty
    3 days ago
  • The give with one hand – take with the other Budget
    The Minister of Health has pumped out media releases to 20 District Health Boards heralding increases in funding for their regions, says Labour’s Health spokesperson Annette King. “But when you add population growth and inflation into the figures you get… ...
    3 days ago
  • Budget offers no hope of fixing housing crisis
    The Budget’s underwhelming housing measures will give New Zealanders no hope that National is capable of fixing the housing crisis, Labour’s Housing spokesperson Phil Twyford says. “There isn’t a scrap of an idea to help desperate young Kiwi families into… ...
    3 days ago
  • How the budget fails new New Zealanders
    Greens co-leader James Shaw was absolutely correct to say the 2016 budget is just papering over the cracks. There’s nothing in this budget to increase wages, address inequal pay for carers or deal with the shocking pay rates and employment… ...
    GreensBy Denise Roche
    3 days ago
  • Parents will pay more as school budgets frozen
    Parents will pay more for their kids’ education as a result of this year’s Budget after the Government froze operational funding for schools, Labour’s Education spokesperson Chris Hipkins says. “This means schools are effectively going backwards. They will need to… ...
    3 days ago
  • Sticking Plaster Budget fails the test
    Bill English’s penultimate Budget fails to tackle the structural challenges facing the economy – a housing crisis, rising unemployment, underfunded health and creaking infrastructure, says Labour’s Finance spokesperson Grant Robertson. “This Budget applies a sticking plaster to a compound fracture.… ...
    3 days ago
  • John Key fails middle New Zealand with no fix for housing crisis, more underfunding of health
    Middle New Zealand has again missed out in this year’s Budget with not a single fix for the housing crisis, and health and education woefully underfunded again, Leader of the Opposition Andrew Little says. “This Budget is just a patchwork… ...
    3 days ago
  • Labour Bill would back Kiwi jobs
    The Government’s $40 billion of buying power would go towards backing Kiwi businesses and jobs under a Labour Member’s Bill which will be debated by Parliament, Leader of the Opposition Andrew Little says. “My Bill – which was pulled from… ...
    4 days ago
  • Julie Anne Genter: My Budget 2016 wish is fairness
    When my parents first visited me in Auckland ten years ago, they remarked on how there were no homeless people on the streets. Coming from Los Angeles, they were used to seeing the impacts of horrendous inequality and a lack… ...
    GreensBy Julie Anne Genter
    4 days ago
  • Steffan Browning: Pesticide reduction and Organic Growth Strategy in Budget 2016
    Pesticide reduction The Budget is an opportunity for the Government to launch a pesticide reduction strategy that multiplies the Environmental Protection Authority’s (EPA) and the Ministry for Primary Industries’ capacity to reassess pesticides and other toxins.  The Agricultural Compounds and… ...
    GreensBy Steffan Browning
    4 days ago
  • Steffan Browning: Pesticide reduction and Organic Growth Strategy in Budget 2016
    Pesticide reduction The Budget is an opportunity for the Government to launch a pesticide reduction strategy that multiplies the Environmental Protection Authority’s (EPA) and the Ministry for Primary Industries’ capacity to reassess pesticides and other toxins.  The Agricultural Compounds and… ...
    GreensBy Steffan Browning
    4 days ago
  • Minister won’t fess up on wrong figures
    The Minister of Health was caught out telling porkies in Parliament today when he was asked about the number of people getting access to mental health and addiction services, says Labour’s Health spokesperson Annette King. ...
    4 days ago
  • Budget 2016 and our LGBTQI communities
    LGBTI people make up about a tenth of our population, and our communities face a unique set of needs and challenges. These challenges are caused or exacerbated by discrimination, invisibility and barriers to appropriate support. We have a long way… ...
    GreensBy Jan Logie
    4 days ago
  • Budget 2016 and our LGBTQI communities
    LGBTI people make up about a tenth of our population, and our communities face a unique set of needs and challenges. These challenges are caused or exacerbated by discrimination, invisibility and barriers to appropriate support. We have a long way… ...
    GreensBy Jan Logie
    4 days ago
  • Scrambled announcement policy on the hoof
    Paula Bennett’s scrambled desperate announcement that she will pay homeless people to move to the regions is just the latest evidence of the disarray this Government’s housing policy is in, Leader of the Opposition Andrew Little says. “This is policy… ...
    4 days ago
  • Police Minister admits resolution rates fall short of expectation
    Police Minister Judith Collins has admitted in Parliament current burglary resolution rates are not meeting the expectations of our communities, says Labour’s Police spokesman Stuart Nash “Out of 284 police stations in New Zealand in 2015, 24 stations recorded zero… ...
    5 days ago
  • Mojo Mathers: A better deal for animals in Budget 2016
    Currently we are failing animals in NZ. On the face of it farmed and domestic animals in this country have strong legal protection from abuse, cruelty and neglect. In reality it seems that only the very worst, most extreme cases… ...
    GreensBy Mojo Mathers
    5 days ago
  • Metiria Turei: What we need from Budget 2016
    Every family deserves a warm decent home.  Everyone believes that. This housing crisis is just the latest consequence of a Government who puts the interests of the few wealthy people above the needs of NZ families.  Families are doing it… ...
    GreensBy Metiria Turei
    5 days ago
  • Dairy exports fall of 11%: Budget action on diversification needed
    Dairy exports have fallen 11 per cent compared to this time last year, a fall of almost $1.5b, showing the Government must take clear action on diversifying the economy in tomorrow’s Budget, says Labour’s Trade and Export Growth spokesperson David… ...
    5 days ago
  • Investors driving families out of homes in South and West Auckland
    Investors cashing in on skyrocketing Auckland house prices are driving families out of homes in South and West Auckland and causing homeownership rates in some of our poorest suburbs to plummet, Labour’s Housing spokesperson Phil Twyford says. “New analysis shows… ...
    5 days ago
  • Budget must deliver on paid parental leave
    Budget 2016 must deliver 26 weeks paid parental leave by April 2018 – anything less will be short-changing families, says Labour MP Sue Moroney. “My Bill which is before Parliament this afternoon has majority support and does just that. I… ...
    5 days ago
  • Key’s “brain fart” on tax cuts news to English
    John Key didn’t tell his own Finance Minister he was about to go on radio and announce he wanted $3b of tax cuts, just days after Bill English ruled them out, says Labour’s Finance spokesperson Grant Robertson. “In Parliament today… ...
    5 days ago
  • What I’m looking for in Budget 2016 – A better start for our tamariki
    Ensuring the best start for our tamariki is a priority for me in everything I do. And so in Budget 2016, my first budget as an MP, I looking for the Government to make a real investment in the wellbeing… ...
    GreensBy Marama Davidson
    6 days ago
  • What I’m looking for in Budget 2016 – A better start for our tamariki
    Ensuring the best start for our tamariki is a priority for me in everything I do. And so in Budget 2016, my first budget as an MP, I looking for the Government to make a real investment in the wellbeing… ...
    GreensBy Marama Davidson
    6 days ago
  • Denise Roche: What I’m looking for in Budget 2016 Pt II
    Aotearoa’s new New Zealanders,  come to our country in vulnerable position: – often away from the culture, communities and families they know, sometimes in neighbourhoods without familiar faces and often encountering barriers to employment. With net migration at 50,000+ a… ...
    GreensBy Denise Roche
    6 days ago
  • Equal Pay and Budget 2016
    The last few years we’ve seen equal pay for women flagged as an undefined risk in the budget. This year we should expect to see this, as well as budgeted money to deliver equal pay to caregivers and funding for,… ...
    GreensBy Jan Logie
    6 days ago
  • Equal Pay and Budget 2016
    The last few years we’ve seen equal pay for women flagged as an undefined risk in the budget. This year we should expect to see this, as well as budgeted money to deliver equal pay to caregivers and funding for,… ...
    GreensBy Jan Logie
    6 days ago
  • A great Budget would
    A great Budget would embrace the challenge of our polluted rivers and move the money away from justifying the status quo water rules into cleaning up waterways. A great Budget would take the Ministry for the Environment freshwater budget and… ...
    GreensBy Catherine Delahunty
    6 days ago
  • Budget building materials policy backfires
    On the eve of this year’s Budget official figures show Nick Smith’s Budget 2014 centrepiece to reduce the cost of building materials has backfired, says Labour’s Housing spokesperson Phil Twyford. “Ministry of Business, Innovation and Employment officials have spent the… ...
    6 days ago
  • Smarter, Better, Cleaner, Stronger
    This Thursday Bill English will deliver his eighth Budget. Will it continue the trend of previous National budgets, making tertiary education less affordable, putting only token funds into innovation, and subsidising polluters? Budgets aren’t what they used to be. Once… ...
    GreensBy Gareth Hughes
    6 days ago
  • Govt must come clean on tax cuts in Budget
    National is making a mockery of the Budget process by dangling the promise of tax cuts but failing to include them in the Budget, says Labour’s Finance spokesperson Grant Robertson. “National’s tax cut promises have turned into a farce. One… ...
    7 days ago
  • Grant Robertson Pre-Budget Speech
    Today I want to talk about success. As we know success can come in many different forms, from the fact you all made it here at such an early hour on a Monday, for which I am very grateful, to… ...
    7 days ago
  • Budget must deliver for middle New Zealand
    The Government must ensure next week’s Budget stops the squeeze on middle New Zealand and delivers shared prosperity for all New Zealanders, Leader of the Opposition Andrew Little says. The call follows new research commissioned by Labour that shows working… ...
    1 week ago
  • Our housing emergency – why we have to act
    Marama and Metiria at Homes Not Cars launch On Thursday, Metiria Turei announced the Green Party’s plan to start addressing the emergency housing crisis facing our country. Too many people are without homes right now – homeless. It is the… ...
    GreensBy Marama Davidson
    1 week ago
  • Will funding boost for sexual violence services go to the right places?
    This week the Government announced $46million for sexual violence services. This announcement was a result of decades of work by advocates and everyone who submitted to the Select Committee inquiry into funding for sexual violence services that I initiated with… ...
    GreensBy Jan Logie
    1 week ago
  • Will funding boost for sexual violence services go to the right places?
    This week the Government announced $46million for sexual violence services. This announcement was a result of decades of work by advocates and everyone who submitted to the Select Committee inquiry into funding for sexual violence services that I initiated with… ...
    GreensBy Jan Logie
    1 week ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere