web analytics

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????

Links to post

Recent Comments

Recent Posts

  • Brexit vote costs NZ effective EU voice
    Despite being extremely close the result of the referendum in Britain reflects the majority voice, Labour’s Foreign Affairs spokesperson David Shearer says. “While we respect the decision to leave the EU, it goes without saying the move will usher in ...
    2 days ago
  • Pasifika Education Centre doomed
    The Pasifika Education Centre appears doomed to close down this December, says Labour’s Pacific Island Affairs spokesperson Su’a William Sio  “In a written question I asked the Minister whether he would put a bid in for more money. His answer ...
    2 days ago
  • Onetai Station review a shameful whitewash
    A report released today on the Overseas Investment Office’s (OIO) good character test is a whitewash that does nothing to improve New Zealand’s overseas investment regime, says Labour’s Land Information spokesperson David Cunliffe. “The review of the good character test ...
    2 days ago
  • We need a national strategy to end homelessness now
    Long before I entered Parliament, housing and homelessness were issues dear to my heart. I know from personal experience just how hard it is to find an affordable home in Auckland. In my maiden speech, I talked about how when ...
    GreensBy Marama Davidson
    2 days ago
  • Capital feels a chill economic wind
      Wellington is on the cusp of recession with a sharp fall in economic confidence in the latest Westpac McDermott Miller confidence survey, says Labour’s Regional Development spokesperson David Clark.  “Economic confidence amongst Wellingtonians has dropped 12% in the past ...
    2 days ago
  • Dive school rort took six years to dredge up
    News that yet another private training establishment (PTE) has rorted the Government’s tertiary funding system since 2009 shows that Steven Joyce has no control of the sector, says Labour’s Associate Education (Tertiary) spokesperson David Cunliffe. “Like Agribusiness Training and Taratahi, ...
    3 days ago
  • National’s housing crisis hitting renters hard
    National’s ongoing housing crisis is causing massive rental increases, with Auckland renters being hit the hardest, says Labour’s Housing spokesperson Phil Twyford. ...
    3 days ago
  • A Day with the PSA
    This week, along with Labour MP Kris Faafoi, I accepted an invitation to spend a day working alongside the good folk at the Public Service Association in Wellington. As the Workplace Relations and Safety spokesperson for the Greens, I was ...
    GreensBy Denise Roche
    3 days ago
  • A Day with the PSA
    This week, along with Labour MP Kris Faafoi, I accepted an invitation to spend a day working alongside the good folk at the Public Service Association in Wellington. As the Workplace Relations and Safety spokesperson for the Greens, I was ...
    GreensBy Denise Roche
    3 days ago
  • Government holds Northland back
    New information shows Northland remains the most economically depressed region in New Zealand, says Labour’s Regional Development spokesperson David Clark. “The latest Westpac McDermott Miller regional survey found that more Northlanders believe their local economy will deteriorate this year than ...
    3 days ago
  • Rebstock report into MFAT leaks a disgrace
    An Ombudsman’s report on the Paul Rebstock investigation into MFAT leaks shows the two diplomats at the centre of the case were treated disgracefully, says Labour’s State Services spokesperson Kris Faafoi.  “The Ombudsman says one of the diplomats Derek Leask ...
    3 days ago
  • More families forced to turn to food banks for meals
    Increasing numbers of families are having to go to food banks just to put a meal on the table, according to a new report that should shame the Government into action, says Labour’s Social Development spokesperson Carmel Sepuloni. ...
    3 days ago
  • We have a housing emergency in New Zealand
    Auckland, New Zealand, where house prices have risen 20 percent in the last year alone We have a housing emergency in New Zealand.  Like many people we are ashamed and angry that in a wealthy country like ours, we have ...
    GreensBy Eugenie Sage
    4 days ago
  • We have a housing emergency in New Zealand
    Auckland, New Zealand, where house prices have risen 20 percent in the last year alone We have a housing emergency in New Zealand.  Like many people we are ashamed and angry that in a wealthy country like ours, we have ...
    GreensBy Eugenie Sage
    4 days ago
  • Aussie reforms signal trouble ahead for school funding plan
    Plans by the Government to return to bulk funding are likely to see increased class sizes and schools most in need missing out on much-needed resources, Labour’s Acting Education spokesperson Grant Robertson says. “The signaled return to bulk funding is ...
    4 days ago
  • Toxic Sites – the down low on the go slow
    In  2011, I negotiated an agreement with the National Government to advance work on cleaning up contaminated sites across the country. This included establishing a National Register of the ten worst sites where the creators of the problem could not ...
    GreensBy Catherine Delahunty
    4 days ago
  • Aucklanders face new motorway tax of up to $2500 a year
    The Government wants to tax Aucklanders thousands of dollars a year just to use the motorway network, says Labour’s Auckland Issues spokesperson Phil Twyford. “Officials estimate the average city commute is 11.8km. This means for the average Aucklander commuting five ...
    4 days ago
  • 15 corrupt bank managers identified in student fraud
    New information show 15 bank managers in India have been identified by Immigration New Zealand as presenting fraudulent documents on behalf of foreign students studying here, Labour’s Immigration spokesperson Iain Lees-Galloway says. “Documents obtained by Labour under the Official Information ...
    4 days ago
  • National leaves Kiwi savers the most vulnerable in OECD
    News last week that Israel’s Finance Minister will insure savers’ bank deposits means New Zealand will be left as the only country in the OECD that has no deposit insurance to protect savers’ funds should a bank fail. Most Kiwis ...
    GreensBy James Shaw
    5 days ago
  • Comprehensive plan for future of work needed
    A Massey University study showing many New Zealanders are unaware of the increasing role of automation in their workplace, highlights the need for a comprehensive plan for the future of work, says Grant Robertson, Chair of Labour’s Future of Work ...
    5 days ago
  • Another National Government failure: 90 day work trials
    On Friday last week, the Treasury released a report by MOTU economic consultants into the effectiveness of the controversial 90-day work trial legislation. The report found that there was “no evidence that the policy affected the number of hires by ...
    GreensBy Denise Roche
    5 days ago
  • Iraq mission extension case not made
    The Prime Minister has not made the case for extending the Iraq deployment another 18 months nor the expansion of their mission, says Opposition Leader Andrew Little.  “Labour originally opposed the deployment because the Iraqi Army’s track record was poor, ...
    6 days ago
  • Denial is a long river
    William Rolleston from Federated Farmers made the absurd claim on RNZ on Saturday that “we actually have very clean rivers”. This statement doesn’t represent the many farmers who know water quality is in big trouble and are working to clean ...
    GreensBy Catherine Delahunty
    6 days ago
  • Denial is a long river
    William Rolleston from Federated Farmers made the absurd claim on RNZ on Saturday that “we actually have very clean rivers”. This statement doesn’t represent the many farmers who know water quality is in big trouble and are working to clean ...
    GreensBy Catherine Delahunty
    6 days ago
  • Melanoma deaths could be avoided by an early access scheme
      The tragic death of Dunedin’s Graeme Dore from advanced Melanoma underlines the cruelty of this Government in promising a treatment but delaying for months, says Labour’s Health Spokesperson Annette King.  “Graeme was diagnosed with Melanoma last year. He used ...
    6 days ago
  • Assessing the Defence White Paper
    The Government’s recently released Defence White Paper has raised questions again about New Zealand’s defence priorities, and in particular the level and nature of public funding on defensive capabilities. The Green Party has a longstanding belief that priority must be ...
    GreensBy Kennedy Graham
    6 days ago
  • Kiwis’ confidence drops again: Economy needs a boost
    Westpac’s consumer confidence survey has fallen for the seventh time in nine quarters, with middle income households ‘increasingly worried about where the economy is heading over the next few years’, says Labour’s Finance spokesperson Grant Robertson. “This survey is a ...
    6 days ago
  • Relocation grant simply kicks can down the road
    The response by state house tenants and social agencies to the Government’s rushed plan to shift families out of Auckland tells us what we already knew – this is no answer to the chronic housing shortage, Opposition Leader Andrew Little ...
    6 days ago
  • Peace hīkoi to Parihaka
    On Friday a Green crew walked with the peace hīkoi from Ōkato to Parihaka. Some of us were from Parliament and some were party members from Taranaki and further afield. It was a cloudy but gentle day and at one ...
    GreensBy Catherine Delahunty
    6 days ago
  • Children’s Commissioner right to worry about CYF transition
    The Government must listen to the Children’s Commissioner’s concerns that young people under CYF care could be ‘negatively impacted’ as the new agency’s reforms become reality, says Labour’s Children’s spokesperson Jacinda Ardern. “Dr Russell Wills has used the second annual ...
    6 days ago
  • Bill English exaggerates PPL costs to justify veto
    The Finance Minister has used trumped-up costings to justify a financial veto against parents having 26 weeks paid parental leave, says Labour MP Sue Moroney. “Bill English’s assertion on RNZ yesterday that the measure would cost an extra $280 million ...
    1 week ago
  • Government must refund overcharged motorists
    Labour is calling on the Government to refund motor registration fees to three-quarters of a million Kiwi motorists whose vehicles were wrongly classified under National’s shambolic ACC motor vehicle risk rating system, Labour’s ACC spokesperson Sue Moroney says.“Minister Kaye’s ridiculous ...
    1 week ago
  • 90-day work trials an unfair failure which must change
    A new Treasury report shows the Government’s 90-day trials haven’t helped businesses and are inherently unfair, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. “The Motu report found that 90-day trial periods had no impact on overall employment and did not ...
    1 week ago
  • Massey East houses a start but Nick Smith should think bigger
    The Massey East 196-home development is a start but the Government must think bigger if it is to end the housing crisis, Labour’s Housing spokesperson Phil Twyford says. “It is great the Government is finally realising it needs to build ...
    1 week ago
  • More changes needed to ensure fewer cases like Teina Pora’s
    Teina Pora spent 21 years behind bars for a crime he didn’t commit, shafted by a Police investigation that prioritised an investigator’s hunch over the pursuit of credible evidence. Yesterday’s announcement that the government is to pay him $2.5m in ...
    GreensBy David Clendon
    1 week ago
  • New Zealand Labour sends condolences to UK
    The New Zealand Labour Party is sickened and saddened by the murder of British Labour MP Jo Cox, Labour Leader Andrew Little says. “Ms Cox was killed in cold blood while simply doing her job as a constituent MP. She ...
    1 week ago
  • Shameful refugee quota increase still leaves NZ at the bottom of the list
    Minister for Immigration Michael Woodhouse announced this week that the government will put off increasing the refugee quota by 1000 places until 2018.  It’s a shameful decision that undermines the Government’s claim that it takes its international humanitarian obligations seriously, ...
    GreensBy Denise Roche
    1 week ago
  • Paula Bennett as a victim hard to swallow
    The National Party spin machine has gone into overdrive to try and present Paula Bennett as the victim in the Te Puea Marae smear saga, says Labour Housing spokesperson Phil Twyford. “Bill English in Parliament today tried valiantly to paint ...
    1 week ago
  • Voters to have the final veto on paid parental leave
    New Zealanders will have the final right of veto on a Government that has ignored democracy and is out of touch with the pressures and demands on families, says Labour MP Sue Moroney. “Today’s decision by National to veto 26 ...
    1 week ago
  • Collins should put Kiwis’ money where her mouth is
    Labour’s Police spokesman Stuart Nash is calling on anyone who has received a speeding ticket for going up to 5km/h over the 100km/hr open road speed limit to write to him and he will take it up on their behalf ...
    1 week ago
  • Where is the leadership on equal pay for work of equal value?
    The gender pay gap in the public service is worse than in the private sector. I’ve always found this particularly galling because I expect our Government to provide an example to the private sector on things like human rights, rather ...
    GreensBy Jan Logie
    1 week ago
  • Kiwis’ real disposable income goes nowhere for the year
    New Zealanders’ hard work for the last year resulted in no increase in real disposable income, showing Kiwis aren’t getting ahead under National, says Labour’s Finance spokesperson Grant Robertson. “Today’s GDP figures reveal that real gross national disposable income per ...
    1 week ago
  • Pora case a case to learn from
    Conformation that Teina Pora will receive $2.5million from the Crown for more than 20 years of wrongful imprisonment does not fix the flaws in our system that led to this miscarriage of justice, Labour’s Justice spokesperson Jacinda Ardern says. “The ...
    2 weeks ago
  • Government needs to start again with RMA changes
    The National Government’s proposed changes to the Resource Management Act have attracted more than 800 submissions, many of them critical of key aspects of the Resource Legislation Bill. There has been much criticism of the new regulation making powers given ...
    GreensBy Eugenie Sage
    2 weeks ago
  • Bennett’s briefing completely unacceptable
    It is completely unacceptable that Paula Bennett briefed her political staff on the police investigation into Hurimoana Dennis after her meeting with him, despite it having nothing to do with her social housing portfolio, says Labour’s Housing spokesperson Phil Twyford. ...
    2 weeks ago
  • Speech to Green Building Council
    Building smarter, greener cities It will be clear to anyone who has been watching the public debate on the housing crisis that housing in New Zealand is sadly far from being economically sustainable when Auckland has the fourth most unaffordable ...
    2 weeks ago
  • Paula Bennett has more questions to answer
    It is unthinkable that Paula Bennett’s press secretary went rogue and tried to smear the reputation of someone involved in helping the homeless, Labour’s Housing spokesperson Phil Twyford says. “Political staff would not take such serious unilateral action without the ...
    2 weeks ago
  • Speech on Notice of Motion on Orlando
    Mr Speaker, The Labour Party joins with the government in expressing our horror at this atrocity and our love and sympathy are with the victims and their families. Our thoughts are with the people of Orlando and of the United ...
    2 weeks ago
  • Tiakina Ngā Wai – Swimmable Rivers Report June 2016
    The campaign to clean up our rivers was launched at the Green Conference at Queens Birthday weekend. However, the work prior to the launch goes back a number of years. Russel Norman and Eugenie Sage deserve full credit for the ...
    GreensBy Catherine Delahunty
    2 weeks ago
  • We can do more: Refugee quota should be doubled
    New Zealand is a better country than National’s miserable increase in the refugee quota that ignores our obligations to the international community and people in need, says Opposition Leader Andrew Little. “It is a sad day when the Government can’t ...
    2 weeks ago

Public service advertisements by The Standard

Current CO2 level in the atmosphere