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National’s proposed public spending to GDP ratio – the election’s clear blue line

Written By: - Date published: 9:22 am, May 15th, 2014 - 71 comments
Categories: bill english, Economy, national, privatisation, Public Private Partnerships, public services - Tags:

The real story of the coming election is neither corruption nor perceptions of corruption but rather what was revealed in Bill English’s reported pre-budget speech to the National Party’s Southern Region conference at the weekend. He signalled an intention to reduce the proportion of government spending to 26% of GDP over the next 6 to 7 years. The current level reported to be hovering at 30% already places NZ in the lowest quartile of OECD countries, having fallen from 35% of GDP in 2008. Most developed nations, despite kinder geography and greater economies of scale, spend a significantly higher proportion of GDP on government goods and services. Bill English’s reported statement (I cannot find the whole speech online) is probably the clearest indication yet of the general direction of the National Party’s policies in a new term.

When parties approach a third term in government the claim is often made that they have run their course as far as new ideas are concerned. There are no manifesto policy announcements yet from National so we just don’t know how it is proposed that this objective be met. However it does reveal that the National Party’s basket of ideas is far from empty and that it does not regard status quo spending as desirable. To achieve this would require extraordinarily high GDP growth, above historical averages which is very unlikely, or further large cuts to public expenditure.

For all those who hold dear the benefits to the wider population achieved by New Zealand’s Social Democratic programme of the last 70 years, this is where the election contrast between National and more progressive parties lies.

We do not know what cuts are proposed but the options identified below are either continuations of existing policy directions by the National Party or have been signalled through press releases, law changes or speeches as possible initiatives.

  • public service whipping dogFurther outsourcing of public sector services by competitive tender using the government’s ‘best sourcing’ model for delivering “Better Public Services’
  • A continuation of the policy of ‘digital by default’, replacing staffed offices with websites and 0800 numbers,
  • Cuts to the inequality reducing financial transfers to poorer New Zealanders – such as Working for Families.
  • Possible moves to means testing of benefits like pensions as was signalled in an article in yesterday’s Dominion Post
  • Weakening the roles of public agencies so they are less costly to run. The model here is the Department of Conservation’s change of role to focus on volunteering and tourism rather than policy advice and species and habitat protection.
  • Further privatisations, possibly using different models than the mixed-ownership model, including potentially beyond State Owned Enterprises like NZPost, Quotable Value and Kiwibank and into core services like for example the Land Registry as the UK has just done.
  • The adoption of different funding models (such as public private partnerships) for infrastructure projects such as roads, hospitals and schools which keep the cost off the government books in the short term but essentially mean that for generations the public buys the right over and over to use public infrastructure.

It will be interesting to see in the lead-up to the election whether this public spend to GDP ratio commitment is communicated . It seems to have been in a speech intended for party members and the bald fact of the lower ratio has not, so far as I can see, been signalled in other more public speeches.

References

  1. Treasury graph – public spending as a proportion of GDP by country 2007
  2. Best sourcing policy paper:
  3. Minister of Finance’s speech to National Party Queenstown conference
  4. Super for rich has $570m price tag

Jan Rivers,
Public Good Champion in a personal capacity
www.publicgood.org.nz

71 comments on “National’s proposed public spending to GDP ratio – the election’s clear blue line”

  1. Colonial Viper 1

    And this is where Labour can hit back hard and fast. National has just given Labour a theme it can run with for the next 3 months.

    Say that Labour believes that public sector spending is a crucial part of the economy, creates jobs and provides services that every New Zealander uses and which the economy depends on.

    Say that National’s plan amounts to a turn down the path of ugly European austerity; Labour on the other hand will maintain Government spending around 30% higher than National at around 1/3 of GDP in order to give New Zealanders.

    Labour will do this because it values giving New Zealanders a common wealth of health, education and other public sector services that they deserve, and because Labour believes in supporting our doctors, nurses, teachers, lecturers police, armed forces and tertiary students for doing a tough job every day, not trying to balance the books by short changing every day New Zealanders.

    • Matthew Hooton 1.1

      “ugly European austerity”?

      Look at the graph. Spending as a percentage of GDP is higher in most European countries than in NZ. They haven’t had “austerity” in Europe, they have a correction from massive overspending.

      • kenny 1.1.1

        Tell that to the Greeks, Italians, Portuguese,Irish and French.

        What a wally!

        • Gosman 1.1.1.1

          The French???? They have attempted to avoid any cut backs for as long as possible and even looked at trying to get an even bigger slice of the economy in State hands with the aborted 75% wealth tax. How has that worked out for them?

      • KJT 1.1.2

        Don’t you mean a failure to address the necessary “correction” from massive under-taxing of the wealthy.

        Just like National.

        Borrowing for unaffordable tax cuts.

        Then having to run around like a bunch of destructive rodents gnawing at the foundations of New Zealand’s social and physical infrastructure, and putting sneaky taxes on the poorest to pay for it, to pretend they have a, wholly delusional, surplus.

        Leaving a swath of destruction that will take generations to fix.

        • Matthew Hooton 1.1.2.1

          Top tax rates are high in Europe: see http://en.wikipedia.org/wiki/List_of_countries_by_tax_rates
          So how do you get that Europe’s problems come from under taxation of the wealthy?

          • Gosman 1.1.2.1.1

            Maybe because the French failed to raise taxes on the wealthy to 75%.

            Interesting that most austerity in Europe comes with increased taxes on the wealthy and not just cuts in spending. The left tends to ignore that inconvenient fact.

            • North 1.1.2.1.1.1

              Read and understand Kenny @ 1.1.1 you ugly fool Gooseman. The wealthy suffer austerity and the masses don’t ? True fanatical right wing liar you.

              • Gosman

                Kenny tried to argue that the French have undergone austerity. He/she lost all credibility after that outrageous statement.

          • Ennui 1.1.2.1.2

            Oh Matthew, do you really think that the wealthy pay tax at those rates in Europe (and elsewhere)? Check the maths, it does not add up. Being wealthy does not mean having to be taxed at a high rate, there are so many vehicles for avoidance. Do you really expect us to be so credulous?

          • Mike S 1.1.2.1.3

            Because as you know very well Mathew, the wealthy don’t pay income tax because they don’t declare any income.

      • Colonial Viper 1.1.3

        “ugly European austerity”?

        Look at the graph. Spending as a percentage of GDP is higher in most European countries than in NZ. They haven’t had “austerity” in Europe, they have a correction from massive overspending.
        M

        Deliberately collapse the private sector and yes of course government spending will look bigger “as a proportion of GDP.” Come on Hooton, you know the tricks, and we do too.

        The obfuscation spoken earnestly like a true austerity advocate.

        There’s a simple clue as to when austerity is being applied Mr Hooton, and that is when a country’s unemployment rate skyrockets over 10% within the space of a couple of years even as the fat cats get fatter, and “democracy” is no longer run by the people, but the central banks, Goldman Sachs and JP Morgan.

        • Gosman 1.1.3.1

          The countries that underwent more austerity post 2007 generally have lower unemployment than those that have dithered over cutting back the size of the State. Witness the difference between France and the UK.

        • Matthew Hooton 1.1.3.3

          So you define “austerity” not by government spending as a percentage of GDP but by the unemployment rate?
          That means there has been no austerity in New Zealand since 1993 (see http://www.rbnz.govt.nz/statistics/key_graphs/employment/ ) but very considerable austerity in Greece through most of the 2000s (see http://www.craigwilly.info/wp-content/uploads/2013/01/greece-unemployment-rate.png )
          I’ll go for govt spending as % if GDP as my measure, if that’s ok.

          • Colonial Viper 1.1.3.3.1

            Oh FFS Hooton you may think that you will do OK by being allowed inside the friendly club house of the top 0.1% as an honorary member or hanger on, but the power elite is screwing everything and everyone in sight and no one is going to be better off for it in the long run.

            • Ennui 1.1.3.3.1.1

              CV, Matthew falls into that category known as “Useful Fools”. It is sort of analogous to the Clown Jester who ate from the kings tables and sat by the fireside. You get to partake until you are neither funny or wanted, then you go to live in the pigsty with the rest of the peasants.

              When Matthew speaks some words of the Bard come to mind that fit his role, and his ultimate insignificance.
              Life’s but a walking shadow, a poor player
              That struts and frets his hour upon the stage,
              And then is heard no more. It is a tale
              Told by an idiot, full of sound and fury,
              Signifying nothing.

        • Colonial Viper 1.1.3.4

          Gossie all your shit is irrelevant. NZ has the lowest unemployment of all those countries and we have mainly dodged austerity approaches. Which makes sense because austerity means pulling money out of provinces, towns and cities and everyone seems surprised when that results in massive unemployment.

          • Gosman 1.1.3.4.1

            The nations in Europe that actually did undergo a high amount of austerity like the Baltic nations have bounced back strongly. Those like France and Italy that have resisted efforts to pair back the size of the State have languished. This is at odds with your view that austerity is bad.

            http://www.forbes.com/sites/dougbandow/2013/04/15/the-triumph-of-good-economics-austere-baltic-states-outgrow-their-european-neighbors/

            • Colonial Viper 1.1.3.4.1.1

              The “baltic nations” went through a fucking genocidal war, next you’ll be adding that into the recipe for “economic recovery.”

              And of course there is nothing “wrong” with austerity if you are in the top 5% who benefit from it (because they are the ones who structure and design the austerity programmes), not the bottom 50% who get smashed (also by design).

              Seriously do you think we were all born last night? FFS.

              • Gosman

                Ummm… what genocidal war did the Baltic nations go through recently?

                • King Kong

                  Getting the Balkans and Baltics mixed up is an easy mistake to make however it makes you look a bit of a prat when stridently decrying an areas economic policies it turns out you are talking about completely the wrong place.

                  • Colonial Viper

                    Ahhh right thanks KK. The Balkans got massive bribes from the EU and Nato to join, and their citizens got access to work in far richer European nations.

                    It was part of the power elite’s plan to bring austerity to western Europe and reduce labour standards and wages there.

                    • Gosman

                      What??? Jeeze CV you kind of lost it there. I generally place you in the reasonably sane hard core lefty but not sure you deserve your place there after that.

              • Disraeli Gladstone

                Baltic states. Not Balkan.

                The Baltics have gone through their own Soviet oppression and civil unrest, but not at anything approaching a genocidal level as far as I’m aware.

            • thatguynz 1.1.3.4.1.2

              Gos, one simple question. have you ever read “Confessions of an Economic Hitman” by John Perkins?

              • Gosman

                No but from what I can tell it is one large conspiracy theory with minimal connection with reality.

                • thatguynz

                  Really, you drew that conclusion from NOT reading it? Interesting. Would that be a “conspiracy theory” in the same sense of GCSB’s involvement in the global surveillance apparatus?

                  I’m sure you manage to rationalise a lot of things by drawing a line under them and labelling them a “conspiracy theory”. Doesn’t that become an issue for you when said theories become proven fact?

                  • Gosman

                    Don’t know. Hasn’t happened yet. I’ll let you know when it does.

                    • thatguynz

                      Sure it has – you’re just too blind to have seen it. Nice attempt at deflection however.

                      Despite your assertions to the contrary, you seem to have little idea how the IMF and World Bank operate in the context of global debt markets. Clearly that must be a “conspiracy theory” too. Oh to have your world view..

      • Jan Rivers 1.1.4

        My point in writing the article was to point out that it would be good to have the potential governmental, social and spending impacts of a continuation of a sharply reducing ratio of government spend discussed as part of the budget and later the election debate.

        People may think a reducing ratio this is a good idea or not. Personally I think there are significant problems from the cuts to date that relate to increasing poverty and inequality as well as reduced resilience to the challenges NZ faces – climate change, aging population, and so on. Further limits in this direction are in my view are likely to increase the nature and scope of these issues in ways that many will find unacceptable.

        • Gosman 1.1.4.1

          What are your thoughts on thelessons identified at the conclusion of this article then?

          http://www.forbes.com/sites/dougbandow/2013/04/15/the-triumph-of-good-economics-austere-baltic-states-outgrow-their-european-neighbors/2/

          • Colonial Viper 1.1.4.1.1

            Forbes, the magazine of growth for the 1% and of course for the next 4% of hangers-ons, what a crock of shit.

            Austerity is perfect for them, it boosts their incomes, lets them acquire assets on the cheap, and dump workers and workers’ pay for extra corporate profits. What’s there not to like if you are part of the power-elite.

            As for the Baltic states, they bounced back from a genocidal war and state communism, so the fuck what does that have to do with Australasia.

        • Wayne 1.1.4.2

          Actually this is a good discussion topic.

          By the way the graph has all types of govt spending, including local govt, typically 4 to 5%. That is why the NZ is just below 40%. Since it relates to 2007, it effectively shows central govt expenditure at 35%.

          So Labour is happy with 35%, if not more. For the Nats, the figure for 2014/15 will be about 30%, which the Nats are typically happy with. I do recall that Bill Birch thought 27 to 28% would be better, making a total govt sector of 33%.

          In any event the 5% difference in the size of government between Labour and National is a worthwhile debate. It is around $10 billion a year. Labour would spend it through government programmes. And you can have a lot of programmes for $10 billion. Though under Labour, they will allow the state sector to lazily grow as a payback for their union supporters, so some, maybe as much as 30% of the $10 billion is soaked up by excessive bureaucracy, without any actual new services.

          National would leave that money in peoples pockets and for businesses to reinvest.

          Voters get to choose.

          • thatguynz 1.1.4.2.1

            Absolute bollocks Wayne. Whilst the State Sector permanent employees may (or may not) have decreased under the current National government, the number of contract employees has grown dramatically.

            Rather than your “payback for their union supporters” dog whistle perhaps you could cite some actual figures to substantiate your position?

            Incidentally, as a rule of thumb the businesses don’t typically reinvest as you have alluded to here “National would leave that money in peoples pockets and for businesses to reinvest.” – they provide a greater return to their shareholders.

            • Wayne 1.1.4.2.1.1

              Well, three things happen with the $10 billion being left with citizens and businesses.

              Some, probably the majority, gets spent on consumption which flows through the economy. Some gets invested in to capital assets. And some is used to repay debt.

              However, I guess in fact the govt would spend a fair chunk of the $10 billion on debt repayment. You could halve govt debt by paying $3 billion a year for 10 years. And of course there are payments to build up the Super Fund.

              So at least half of the $10 billion will stay with the govt.

              • thatguynz

                So your suggestion that “Though under Labour, they will allow the state sector to lazily grow as a payback for their union supporters” doesn’t really hold water then does it?

          • lprent 1.1.4.2.2

            The graph selected was more my choice than Jan Rivers. It is a guest post, which means that one of us had to put it up. I looked and saw that there wasn’t a good visual draw in the text to highlight the point, so pulled a link out of the references. But I was in a bit of a rush so I took the first graph in the link..

          • Jan Rivers 1.1.4.2.3

            Thank you. It is indeed a worthwhile debate. I think you are being disingenuous to say that lower levels of spending leave money in people’s pockets and for businesses to reinvest though.

            People: – The current levels of inequality and poverty are well documented. Even august bodies like the OECD, World Bank, and World Economic Forum as well as the United Nations are united in agreement about this. New Zealand is an extreme example of the inequality problem and hundreds of thousands of people here are socially dislocated to the point where they cannot play an active part in their communities including simple things like adequate food, warmth and clothing.

            Businesses: The work of people like Mariana Mazzucato, Ha Joon Chang and more locally Shaun Hendy has shown that the idea of courageous entrepreneurs bringing wealth to their own businesses is highly over-rated and very few small business either grow fast or employ many people. Unfortunately in New Zealand the profitability of investing in real estate and dairying absorbs far too much of the available capital leaving other sectors high and dry.

            As for your comment : “under Labour, they will allow the state sector to lazily grow as a payback for their union supporters, so some, maybe as much as 30% of the $10 billion is soaked up by excessive bureaucracy, without any actual new services.” I’d be interested to hear of any reputable research here or internationally that supports that assertion.

      • Johnm 1.1.5

        Yes, it’s austerity in Europe. Public spending is still high because the public are paying to bail out the private casino banks, which should have been allowed to go bankrupt, while the public are being beggared. Try spinning that one! Natzis are following their pathetic contemptible neolibereal ideogy Key and English are overpaid smug flash suit parading idiots, and the types who vote for them selfish pack of bastards.

      • Puddleglum 1.1.6

        The graph (I presume you mean the one in the post?) references the year 2007, Matthew.

    • blue leopard 1.2

      +100 CV

      Good idea

      Did you check out the new website that Karol pointed out?

      The website’s stated aim is to promote public discussion on important issues we face by providing information in the following manner:

      A group of writers have been assembled to write short briefing papers based on extensive research programmes and presented in a form that can be easily understood by the public at large.

      The first paper has been written by Brian Easton (13 May 2014), who I view as pretty mainstream and his article has stuck in my mind since I read it. Here is an excerpt (with my bold added)

      So the public rhetoric makes a fetish of economic growth which the research evidence concludes economic policy has little influence over (poor quality management aside – as the Rogernomic era demonstrates) and that, in any case, the material standard of living does little for individuals’ wellbeing. Ironically to pursue that [growth] goal demands that measures which actually address wellbeing should be cut back.

      That is why the debate on the budget will stress the need to restrain expenditure and pay little attention to a host of quality-of-output activities being reduced. The examples are too numerous to list but it is well to remember that the consequences may not become immediately apparent.

      The Website address: http://briefingpapers.co.nz/2014/05/the-purpose-of-economic-policy/

      • Ad 1.2.1

        Fairly bracing for those of us who prefer more intervention to less:

        “…a fetish of economic growth which the research evidence concludes economic policy has little influence over…”

        Cheers for the Easton article – a whole lot of succinct common sense spoken there. I commend it to you all.

      • Tracey 1.2.2

        thanks blue

      • Colonial Viper 1.2.3

        🙂 BL

      • karol 1.2.4

        Yes, bl, and excellent briefing paper that says succinctly pretty much what I think about the interaction between economic and social policy. It is good to see someone like Easton, with some fairly widely known credibility on the topic explain it clearly. I posted a comment under it.

        • blue leopard 1.2.4.1

          I hope you get a response/start a discussion, that was an interesting question you asked.

  2. Crunchtime 2

    First! 😉

    EDIT: Dang, beaten to the punch by CV even as I typed my message 😛

    How does the steady reduction in govt spending jibe with the massive increase in govt foreign debt over the same period?

    Where is our money going??

    • KJT 2.1

      To Nationals private contractors and asset strippers.

      Just like the third world countries we resemble where most of the borrowing and aid money goes straight back offshore to banks, oversea corporates and wealthy thieves.

      To ensure that National politicians get their lucrative figurehead jobs in the private sector after leaving politics. Which is how New Zealand politicians take their bribes.

    • Gosman 2.2

      The increase in debt is as a result of the structural deficit that the last Labour led government left the country. A series of deficits that was predicted to last till 2018.

      • Colonial Viper 2.2.1

        In this case I actually think the deficit is good. Labour’s promise to move us into surplus is well meaning but totally misguided. English could have done a Ruthansia slash and burn to balance the books (I’m sure you would have loved that) but he didn’t, and that is something he deserves credit for from the Left.

      • framu 2.2.2

        ha ha – thats bullshit

        bill english was borrowing more per week than he needed to remember – there was an entire series of stories about it in the MSM

        and yet again – the prediciton was made in 2008 – did it take into account events that occured after 2008 and what either party might have done or changed?

        the answer to that is “no”

        • Gosman 2.2.2.1

          Ummm…. no hence why we are only 6 years down the track and are already back in the black as opposed to 2018. However I am curious what you think Labour would have done to reduce the deficit in a more expedious manner.

          • framu 2.2.2.1.1

            Ummmmmm – your talking a bunch of crap that has nopthing to do with what i said or what you said before that

            ok – lets make it really simple for you

            you said
            “The increase in debt is as a result of the structural deficit that the last Labour led government left the country”

            i replied
            “ha ha – thats bullshit

            bill english was borrowing more per week than he needed to remember – there was an entire series of stories about it in the MSM”

            your reply of “no hence why we are only 6 years down the track and are already back in the black as opposed to 2018.” is irrelevant

            you said
            “A series of deficits that was predicted to last till 2018.”

            i said
            “the prediciton was made in 2008 – did it take into account events that occured after 2008 and what either party might have done or changed?”

            your reply of ” However I am curious what you think Labour would have done to reduce the deficit in a more expedious manner.” is irrelevant

            do you see how this language thing works?

            • Gosman 2.2.2.1.1.1

              How much more was Bill English borrowing and where did he use this extra money?

      • Tracey 2.2.3

        zre you saying national saw the prediction of deficits til 2018 and the causes for it, and changed nothing, hence the 73billion debt?

      • newsense 2.2.4

        more political predictions that turned out to be complete BS then and make the Treasury in need of a check of party affiliation and bias more than any broadcaster- although oddly enough the former electorate chair of the PM and the former press secretary of a National PM in prominent management positions didn’t resurface during the latest hand-wringing (bias is only one way- PM forgets Paul Holmes and Dr Brash) , then you get Michael Bassett on the radio representing cough a ‘Labour’ point of view or at least introduced as a ‘former Labour cabinet minister’.

        yeh.

  3. greywarbler 3

    OMG We’re a banana republic but we don’t grow bananas (so we’ll have to import them) and we are not a republic (so we will import the USA brand which comes in a plain wrapper, covertly). But we are also not really a developed country. Can a country like ours sink to being an emerging country after crawling from the water and after it has taken a large number of steps on dry land? It seems that this toddler has some disease difficult to diagnose causing it to regress. Dummy anyone?

  4. Tracey 4

    has he said anything about 28% of gdp being financial services and agriculture 8%?

  5. Philj 5

    xox
    + 1 Mathew for posting in your own name, if it is Mathew.
    Matt, have you ever been terribly wrong in errors of political judgement? Please elucidate. Do you believe the USA system of corporate bought government is a total crock, and NZ is heading the same way? Interested in your opinion, if It is you, and not Pete George. Sheesh, it’s nice not having him around. I feel much cleaner.

    [lprent: As far as I can see (which is pretty far), Matthew Hooton always posts under his own name. Most ‘public’ personalities do. And I tend to frown on people sockpuppeting, mostly because I have to release their first comments and I usually run a check on new handles to find out who they used to be. I’m mostly interested in when the handles for one person start talking to each other – which tends to receive permanent bans. But I also don’t like people changing handles too often (more work for me). Or when people start trying to astroturf topics using different handles. ]

    • Colonial Viper 5.1

      Geee are you trying to reply to Matthew Hooton? He’s a long time PR man, trainer and consultant to National Party peeps.

  6. aerobubble 6

    In Australia….

    So they declare, they are for less regulation, less
    government, and so the harder they work towards
    that end the easier their work is, god what giants
    of politics they are.

    Yet what happens with hard times…

    After thirty years of lowering standards, arguing
    and then implementing banking deregulation, the world
    enters a giant financial caused recession, and guess what,
    not them, anyone but not them, not their policies.

    Its the unions again, the left. But how? So…

    Its you. And you have to pay with less services,
    less government, less safety net, more of the same.

    Imagine going to the supermarket, the quality which
    has been falling, suddenly collapses. You were told
    that to maintain prices you had to give tax cuts to
    upper tax payers. Now those tax cuts have clearly not
    worked, have not been working. But instead of removing
    the bad incentives, instead of raising taxes on the
    high end, they now raise the prices!

    Not the wealthy who get more wealthy even during the GFC,
    no not them, they should always win whether a growing or
    falling economy.

    You see they are right to be angry, they were expecting
    to make the government smaller, easier to manage for them,
    and now this, its frustrates them so much, and the
    great unwashed must pay as they always pay somehow.

    The young and poor especially.

    You choose them, and they choose you to lose.

    A vote for Abbott is a vote for a unfair go.

    Now of course Abbott realizes this, and knows the Senete
    will send him back to the voters, and knows he’ll get
    a landslide for your toughness in the face of his pain.

  7. Clemgeopin 7

    Good points in the article, but the graph is outdated by 7 years, being for the year 2007!

  8. Jim 8

    Having the argument as to what percentage of GDP government spending should be is good. It is not just an argument that less spending is better. Country’s that have high or low percentage GDP to government spending are not necessarily better performers, in fact some where in the middle is probably about right. How ever the Labour and National Government’s over the last 25 years have differed in the respect with National Government decreasing spending as a percentage and Labour increasing spending as a percentage. When you continually here of government services being run down, for example state housing, or depleting the railway links, you tend to think the pendulum has swung to far to the right. Yes I do think roads and railway lines are public goods and not commercial entities. I also think a state house for life is a better aspiration that making money out of housing for the poor.

  9. blue leopard 9

    Excellent article with very lucid points, Jan Rivers, thank you for the heads up.

  10. Ennui 10

    Just love the abstract arithmetic concepts here…

    Do National intend to grow the economy to nearly double today’s whilst keeping Government expenditure capped?
    Do National intend to shrink the proportion of Government expenditures to 26% of today’s GDP?
    Do National want 26% to be the “standard rate” of Government GDP expenditure?

    Who knows? I suspect not Bill and John.

    PS Is this a requirement for the TPPA driven by some corporate privatiser somewhere in Wall St????

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    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… ...
    3 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
    4 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… ...
    4 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.… ...
    4 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… ...
    4 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. ...
    5 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
    5 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
    5 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… ...
    5 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… ...
    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
  • 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… ...
    1 week 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… ...
    1 week 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

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