Paul Reynolds is the CEO of Telecom. He has sacked 1200 Kiwi workers during his tenure. They’re you’re neighbours, the members of your community. His company has been disasteriously run as we fall further and further behind in internet and cellphone technology.
This is just the kind of man that National thinks we need to keep in New Zealand with tax bribes using our money. Hell he must be valuable, that’s why Telecom pays him $7 million a year.
So, National has given him another $290,000 a year of our money. Forget about a few extra bucks for school principal on $100,000, it’s the few on the really big bucks that will be getting our money. That money is coming from our higher GST, our higher rent bills.
Reynolds’ ‘rich guy bonus’ alone is enough to hire six nurses or teachers. It’s enough to pay for 40,000 hours of early childhood education. It’s the added GST bill for some 400 typical Kiwi workers.
But, nah, it’s gone to a man who already seems quite happy working for $7 million a year.
Let’s see what else is in the Budget:
Tax cuts favour the rich:
– GST increases from 12.5% to 15%
– Company tax rate drops from 30% to 28%
– Top tax rate from 38% to 33% (up to $70,000)
– Medium tax rate from 33%-30%, Lower rates 21%-17.5% (up to $48,000) , Bottom rate 12.5%-10.5% (up to $14,000)
So a great windfall for John Key and Paul Reynolds there…
(Update 1) Education and health cuts:
Both education and health will get too little money to cover inflation and increased population. Health and eduation have been cut.
(Update 2) Landlords, conservation, deterioration of public services
Clamp down on landlords as expected, which will hit renters hard. This is what is funding Key and Reynold’s tax grab.
Health and education do not get the funding they need just to tread water. So expect deterioration in these vital public services.
Conservation gets another cut by being forced to fund Key’s pet cycleways from its existing budget.
(Update 3) Greens slam the budget as fiscally irresponsible
John Key’s Government has chosen a Budget of fiscal, social and environmental deficits when smarter options were available, the Green Party said today.
‘The Government is borrowing to pay for poor quality spending on tax cuts that heavily favour the wealthy, more motorways for more congestion, and subsidies for the worst climate polluters,’ Green Party Co-Leader Dr Russel Norman said.
‘There is a deficit of vision in this Budget.
(Update 4) Early childhood education slashed by 50%
Audrey Young writes: “The Government will save about $400 million over four years in abolishing the top two funding rates for early childhood centres. – the funding rates depend on qualified staff.
Officials tell me that that will affect about 2000 centres or about 50 per cent of them.”
(Update 5) Borrowing for tax cuts
The tax swindle isn’t fiscally neutral as promised. This year, the cuts for the rich will cost $465 million more than the tax increases will bring in.
(Update 6) No growth from tax cuts
Oh and on the promise that this give away of our money to the rich will boost growth? The Budget documents forecast growth will be just 0.1% a year higher as a result. So, your slice of the pie just got smaller but, hey, the pie is microscopically bigger.
(Update 7) No Vision
Armstrong: “It is after that [tax cuts] the Budget suddenly stops dead in its tracks. Those looking for the bright ideas and initiatives to galvanise economic growth are going to be hugely disappointed.”
The Nats have no vision. Cut taxes for the rich and rip minerals from the earth – it’s thinking straight out of last century.
(Update 8 ) Cuts to education details
These are the cuts in simple dollar amount to education, let alone the cuts when you take rising inflation (5% this year because of the GST rise) and rising rolls into account.
Curriculum Support cut 2.5 million (4%)
Education Research Initiatives cut $150,000 (5%)
Professional Development and Support cut $7.4 million (7.5%)
Quality Assurance cut $4.3 million (56%)
International Student Scholarships by $800,000 (26%)
Mapihi Pounamu (assistance to at-risk secondary students) by $550,000 (14%)
National Study Awards by $1.7 million (6%)
Study Abroad Awards by $550,000 (30%)
Tertiary scholarships by $4.2 million (20%)
Adult and Community Education by $23.7 million (28%)
Tertiary Education Organisation Component -Capability Fund by $224.6 million (54%)
School Furniture and Equipment by $7 million (28%)
There you have it. Quality assessment, upskilling teachers, tertiary capability, scholarships, at-risk kids, hell even furniture all getting the chop.
(Update 9) Real term cuts to Health
NZ Herald: “Govt puts Health on life support”. Link.
“…health will get $1.95 billion in operating costs over the next four years. That is just under $500 million annually – $250m less a year than the increase in last year’s budget”
“…unions had calculated that $555 million in new spending was necessary to keep current levels of health services, but the Budget offered only half that.”
(Update 10) Still thinking short term
Scoop: “Also missing is any mention of superannuation or indications of timing for a resumption in contributions to the Cullen New Zealand Superannuation fund.”