web analytics

Abbott laughingstock for saying Aussie should copy Key

Written By: - Date published: 8:42 pm, February 21st, 2010 - 27 comments
Categories: australian politics, Economy - Tags: ,

The Australian Liberals’ new drongo of a leader, Tony Abbott, has been widely derided for saying that Australia should ape National’s economic policies:

”There are other countries which have chosen a different path, and there is no evidence that their response has been any less effective than ours,” Abbott told ABC Radio National yesterday.

”For instance, in New Zealand they have tried to reform their way through the global financial crisis under the new government’s leadership, and they seem to be doing pretty well. What Mr Rudd chose to do was to spend his way out of the crisis.”

I don’t recall any major reforms under Key, a few favours here and there to mates but nothing that would influence overall growth. The idea that Australia should copy the do-nothing governance of Key and co is dumb:

“Abbott’s remark came the day that Australia’s unemployment rate fell from 5.5 to 5.3 per cent. The NZ rate? It’s 7.3 per cent. If we had the NZ level of unemployment, we’d have another 219,000 people looking for work.

We’ve fallen further behind Australia by every measure since Do Nothing Key and his gang of rightwing zealots and incompetents came to power.

”And bear in mind, New Zealanders have the option of coming here,” said Saul Eslake, an economist at the Grattan Institute in Melbourne. ”If more New Zealanders had stayed home, their unemployment rate would probably be higher.”

True, Australia’s government spent lots more money proportionately on stimulating growth in the teeth of the global recession. But guess what? Not only will Australia emerge from the global recession with higher growth and lower unemployment than New Zealand, but it will also have less debt in proportionate terms.

The OECD projects that Australia’s government will be in deficit equal to 2.6 per cent of its GDP, while NZ will have a deficit of 3.9 per cent of GDP.

How so? ”Because unemployment rose more, the cyclical impact on the next budget was worse,” Eslake said.”

Ouch. Key has seen our unemployment go higher and far from saving us money by not having a stimulus programme all he has really succeeded in doing is let the potential of tens of thousands of Kiwis go to waste. The result is we are worse off than if we had borrowed and invested smartly.

“guess which country the conservative Prime Minister of New Zealand, John Key, is holding up as his model? ”Our vision is to close the gap with Australia by 2025,” Key said.”

Interesting that political commentators seperated from the spin have no problem identifying Key as rightwing while some here still persist in calling him a pragmatist. And he has no ‘pragmatic’ plan to catch Australia, just the same failed rightwing perscription.

What I find really odd is that Key never suggests that if we want to catch Australia we ought to be copying what Australia does. For example, why don’t we adopt Australia’s tax system with a tax-free bracket at the bottom, top personal tax rate of 45%, stamp duty, capital gains tax, and GST of 10%?

Why would heading in the opposite direction work to close the gap?

27 comments on “Abbott laughingstock for saying Aussie should copy Key ”

  1. mike 1

    I can see you are very bitter about the latset poll on TV1 Marty. It must be bloody frustrating for you guys – crying wolf every other day that ‘Labours message is getting through..” “honeymoons over…”etc etc only to have the NZ public repeatedly proving you very, very wrong.

    • Marty G 1.1

      stop trolling. you want to talk about a different subject, use the open mike

    • sk 1.2

      Sure, the polls allow a lot of smugness. But the only stats that matter this far out from the election are the economics one – and here Marty has been one of the few commentators pointing that out. It looks as if we are only track for 1% growth in 2010, after -2% in 2009. Credit growth is zero, the dollar is hurting exporters, and small business is in world of hurt. 1-2% growth over 2010/11 = 10% unemployment by mid-2011.

      So for NZ’s stake stop looking at the &%$* polls, and look at the economy. Was at a lunch y’day, that included nat party donors, and everyone was depressed by the lack of attention to the fact that the economy is going down the tubes, as the rest of the world recovers. Trouble Mike and Gooner, is that you guys reflect where Mr Key’s head and focus is at . . . .

      • gitmo 1.2.1

        Ummmm the rest of the world is recovering…. really ?

        Have you seen the figures coming out of the UK and USA in relation to debt and unemployment, and these were countries with monumental spend ups. NZ and Australia are different economies they are lucky to have never gone into recession and to have Western Australia as a very large open cast mine.

        That being said the Nats are doing fuck all.

        • Marty G

          UK unemployment is 0.5% higher than ours and hasn’t risen for half a year, we’ve closed that gap to nearly nothing.

          US unemployment is falling.

          The US grew 2% in the last half of last year. NZ grew 0.4%

          • sk

            If you take as a starting point 4Q’08, when the Nats were elected, by the end of this year (2 years into their term), Australia will have grown 5%, the US 3%, Korea (a middle income OECD economy just below us) 10% . … and NZ 2% if we are lucky.

            With the Aussie banks shrinking their NZ exposure, we face huge structural headwinds, but from all accounts John Key does not give a damn. We need to get this economy growing, and that means gettings kids into jobs, or else we will be facing a crisis in a year or two.

  2. Jenny 2

    Marty G
    “Key has seen our unemployment go higher and far from saving us money by not having a stimulus programme all he has really succeeded in doing is let the potential of tens of thousands of Kiwis go to waste.”

    Despite the Job Summit and all the rhetoric around it all the evidence is, that Marty is dead right. Key couldn’t give a damn about unemployment.

    They can tell this clear across the Tasman sea.

    • SHG 2.1

      They can tell this clear across the Tasman sea

      No, they can’t. Because they’re not looking. And even if they did look and did see, they wouldn’t care.

      This may come as a bit of a shock, but Australia as a whole cares about what’s happening in New Zealand about as much as it cares what’s happening in, say, Tuvalu.

      • Akldnut 2.1.1

        You’re a moron if you think that – I lived there for 20 years and they hold great importance to the state of political affairs in NZ. It even gets to the stage where Liberals use our GST as scare a scare tactic during election campaig. 15% here we come.

        • SHG

          The Liberals would use the price of tofu in Los Angeles as a scare tactic during elections if they thought it would get them votes. That doesn’t mean they give a shit about the price of tofu in Los Angeles.

          The only people in Australia who take any more than a passing interest in what’s happening in NZ are a) ex-pat Kiwis, and b) businesspeople trying to sell something in NZ.

  3. B 3

    Abbott’s plan could see NZ catch up with Australia by 2012!

  4. Gooner 4

    Mike, you missed the TV3 poll.

  5. Cnr Joe 5

    so – new plan over trans-tasman lunch – Aus.corp will slow down for us to catch-up?

  6. SHG 6

    ‘And bear in mind, New Zealanders have the option of coming here,’ said Saul Eslake, an economist at the Grattan Institute in Melbourne. ‘If more New Zealanders had stayed home, their unemployment rate would probably be higher.’

    The average Kiwi in Australia is better educated and better paid than the average Australian in Australia. If all those Kiwis had stayed home, who knows? Maybe New Zealand would be in a different situation economically. Maybe the unemployment rate would be lower.

  7. bobo 7

    Guyon gave Bill a patsy interview on Q+A, no mention of GST, I must admit Bill has got better at saying nothing in interviews trying not to contradict Key like he used to, then on the news I cringe seeing Key goofing around like hes a member of the B-Sharps,.. Helen had a much tougher interview from a smug Holmes criticizing her UN failure in Haiti and making the argument we need to mine conservation land to give 17 year olds jobs. Holmes at times uses logic like Ralph of the Simpsons…

  8. tc 8

    Hey SHG if all the economists in the world were layed end to end they still wouldn’t reach a conclusion……bank economists always have a predictable line for example centered around exciting interest in mortgages and saying how doomed it all is….therefore we’re raising our rates to cover risk.

    Talent travels and you’d find we get paid more all over the world more than the average local as the mobile/educated travel not the welfare recipients/blue collar workers which generate the averages.

    This type of talent, especially IT, will never find the quality/scale of work in NZ…..it’s called globalisation/consolidation….the jobs just don’t exist here anymore.

Links to post

Recent Comments

Recent Posts

  • Worsening housing crisis must prompt action
    A growing public housing waiting list and continued increase of house prices must be urgently addressed by Government, Green Party Co-leader Marama Davidson said today. ...
    10 hours ago
  • Twenty highlights of 2020
    As we welcome in the new year, our focus is on continuing to keep New Zealanders safe and moving forward with our economic recovery. There’s a lot to get on with, but before we say a final goodbye to 2020, here’s a quick look back at some of the milestones ...
    3 weeks ago

  • Jobs for Nature funding will create training and employment opportunities
    A major investment to tackle wilding pines in Mt Richmond will create jobs and help protect the area’s unique ecosystems, Biosecurity Minister Damien O’Connor says. The Mt Richmond Forest Park has unique ecosystems developed on mineral-rich geology, including taonga plant species found nowhere else in the country. “These special plant ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Pre-departure testing extended to all passengers to New Zealand
    To further protect New Zealand from COVID-19, the Government is extending pre-departure testing to all passengers to New Zealand except from Australia, Antarctica and most Pacific Islands, COVID-19 Response Minister Chris Hipkins said today. “The change will come into force for all flights arriving in New Zealand after 11:59pm (NZT) on Monday ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Bay Cadets learn skills to protect environment
    Bay Conservation Cadets launched with first intake Supported with $3.5 million grant Part of $1.245b Jobs for Nature programme to accelerate recover from Covid Cadets will learn skills to protect and enhance environment Environment Minister David Parker today welcomed the first intake of cadets at the launch of the Bay ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Cook Islanders to resume travel to New Zealand
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Mark Brown have announced passengers from the Cook Islands can resume quarantine-free travel into New Zealand from 21 January, enabling access to essential services such as health. “Following confirmation of the Cook Islands’ COVID ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Supporting communities and landowners to grow employment opportunities
    Jobs for Nature funding is being made available to conservation groups and landowners to employ staff and contractors in a move aimed at boosting local biodiversity-focused projects, Conservation Minister Kiritapu Allan has announced. It is estimated some 400-plus jobs will be created with employment opportunities in ecology, restoration, trapping, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Border exception for some returning international tertiary students
    The Government has approved an exception class for 1000 international tertiary students, degree level and above, who began their study in New Zealand but were caught offshore when border restrictions began. The exception will allow students to return to New Zealand in stages from April 2021. “Our top priority continues ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Tiwai deal gives time for managed transition
    Today’s deal between Meridian and Rio Tinto for the Tiwai smelter to remain open another four years provides time for a managed transition for Southland. “The deal provides welcome certainty to the Southland community by protecting jobs and incomes as the region plans for the future. The Government is committed ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • New member for APEC Business Advisory Council
    Prime Minister Jacinda Ardern has appointed Anna Curzon to the APEC Business Advisory Council (ABAC). The leader of each APEC economy appoints three private sector representatives to ABAC. ABAC provides advice to leaders annually on business priorities. “ABAC helps ensure that APEC’s work programme is informed by business community perspectives ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Govt’s careful economic management recognised
    The Government’s prudent fiscal management and strong policy programme in the face of the COVID-19 global pandemic have been acknowledged by the credit rating agency Fitch. Fitch has today affirmed New Zealand’s local currency rating at AA+ with a stable outlook and foreign currency rating at AA with a positive ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Additional actions to keep COVID-19 out of NZ
    The Government is putting in place a suite of additional actions to protect New Zealand from COVID-19, including new emerging variants, COVID-19 Response Minister Chris Hipkins said today. “Given the high rates of infection in many countries and evidence of the global spread of more transmissible variants, it’s clear that ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • 19 projects will clean up and protect waterways
    $36 million of Government funding alongside councils and others for 19 projects Investment will clean up and protect waterways and create local jobs Boots on the ground expected in Q2 of 2021 Funding part of the Jobs for Nature policy package A package of 19 projects will help clean up ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand Government acknowledges 175th anniversary of Battle of Ruapekapeka
    The commemoration of the 175th anniversary of the Battle of Ruapekapeka represents an opportunity for all New Zealanders to reflect on the role these conflicts have had in creating our modern nation, says Associate Minister for Arts, Culture and Heritage Kiri Allan. “The Battle at Te Ruapekapeka Pā, which took ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Better care for babies with tongue-tie
    Babies born with tongue-tie will be assessed and treated consistently under new guidelines released by the Ministry of Health, Associate Minister of Health Dr Ayesha Verrall announced today. Around 5% to 10% of babies are born with a tongue-tie, or ankyloglossia, in New Zealand each year. At least half can ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Prisoner disorder event at Waikeria Prison over
    The prisoner disorder event at Waikeria Prison is over, with all remaining prisoners now safely and securely detained, Corrections Minister Kelvin Davis says. The majority of those involved in the event are members of the Mongols and Comancheros. Five of the men are deportees from Australia, with three subject to ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Pre-departure COVID-19 test for travellers from the UK and the US from 15 January
    Travellers from the United Kingdom or the United States bound for New Zealand will be required to get a negative test result for COVID-19 before departing, and work is underway to extend the requirement to other long haul flights to New Zealand, COVID-19 Response Minister Chris Hipkins confirmed today. “The new PCR test requirement, foreshadowed last ...
    BeehiveBy beehive.govt.nz
    3 weeks ago