Hands on Labour

Written By: - Date published: 9:51 pm, August 16th, 2012 - 31 comments
Categories: capital gains, david cunliffe, david parker, Economy, exports, jobs, minimum wage, monetary policy, superannuation, wages - Tags:

Fresh ideas to grow a stronger manufacturing sector, on top of the major changes Labour has already signalled, such as capital gains tax, r & d credits, universal kiwisaver, increase to the minimum wage, honesty about superannuation and a willingness to change fixed ideas about monetary policy to ease pressure on exporters featured in a speech given today by David Parker to a union audience in Wellington.

I was there to hear it along with organisers and delegates. David Cunliffe and Andrew Little were there as well. You can read the speech here. Vernon Small summarised it thus:

Labour is eyeing a raft of new economic policies including tax breaks and incentives for exporters, extra spending on infrastructure in depressed areas of the country and ways to lower the barriers to capital raising for small businesses. In a speech to unionists this morning finance spokesman David Parker said Labour was looking at ”pulling levers big and small” to help boost economic growth and jobs, especially in manufacturing.

Parker said the policy challenge for Labour was how to get more people into good middle income jobs.

He said the ideas were not policy, and he was only ”floating” them at this stage, but they would come on top of Labour’s other macro-economic policies which include a capital gains tax, research and development tax credits, a long term move to a higher state pension age, and changes to monetary policy.

He said Labour was looking at further moves on monetary policy, but was not backing away from its 2011 policy in the area. Any new measures would go ”at least as far” as its 2011 policy. Labour rejected National’s ”hands-off, leave-it-to-the-market strategy”.”I want an economy which delivers social well-being and maintains New Zealand’s control of our own destiny. Redistribution through the income tax system is important but is not enough to deliver fairness, nor lift our productivity to change our economic destiny.” A productivity breakthrough was needed and that required a stronger manufacturing sector.

David Cunliffe has just come back from a trip to Denmark, a country that could teach us a lot about how to diversify and build high paying jobs in sustainable manufacturing industries. David Parker is off shortly to the US to discuss among other things alternative approaches to monetary policy.

It was good to see Labour getting on to the front foot. It looks like there will be a real economic alternative on offer through to the next election.

The other good thing about the event was the debate and discussion afterwards. It looks like the policy formation will be open and the key players receptive to good ideas.

31 comments on “Hands on Labour”

  1. higherstandard 1

    Blah blah blah blah.

    Waffle waffle.

    Trough.

    • Colonial Viper 1.1

      Its not like you to be against discussion and debate on economic alternatives is it? 🙄

    • xtasy 1.2

      To be honest some of the ideas have raise my eyebrows, but also interest, as this is what some hot shot economists talk about. My concern is, does Labour take it serious, and how are they seriously going to implement these policy ideas? See no plan, still.

    • mike 1.3

      HS. You only parade your utter ignorance here, like the rest of your talk-back mates in government, because there’s no way you can get your thick head around a reasoned argument. Sad

  2. captain hook 2

    well HS has never actually worked in his life but the reality is that the next Labour government has got to produce jobs.
    you know.
    where people go every day and make things that other people want.

    • Colonial Viper 2.1

      Can I speculate on existing assets like houses and hydrodams without making a single new thing, and call that a job?

  3. Colonial Viper 3

    Wow language has changed. Now, providing “tax credits” and “incentives” is considered “hands on”.

    In the old days, the Ministry of Public Works and the DSIR would just go out there to frakking develop, design and build the thing for us, asap, from the ground up. The highways, the railways, the powergrid, from start to finish. Well almost.

    THAT’S what I call “hands-on”.

    • millsy 3.1

      baby steps…

    • Draco T Bastard 3.2

      The Labour Party is hard core free-market that fails to learn the lessons of both the Great Depression (1930s) and the Great Recession (2k8 ongoing). The rather simple lessons that capitalism doesn’t work unless thoroughly regulated and that the private sector isn’t the source of wealth no matter what the capitalists say.

  4. xtasy 4

    Yeah some hope, hope and hope that one day a “miracle” will happen right?

    Well maybe watch the version on Youtube (Zarah Leander had a nice once):

    A wonder is due, aye!?

  5. xtasy 5

    With pleasure I take note that Cunliffe has been in Denmark! That is country not necessarily of a revolutionarly type, but is of a healthy economic and social policy approach, which National has no idea about.

    Otherwise for young Labour I can only recommend to learn from closer to home and the truly revolutionary and down to earth ideas of what Chilean revolutionaries, especialy students like Camilla Vallejo have to communicate. Always be alert, careful and resolute, I think, as the present soft tough Labour policies lack substance and direction. Go and learn – from Chile and somewhere else, please, left and Labour youth!

  6. AmaKiwi 6

    I’ll be interested to hear what they come up with for monetary policy.

    There is a lot of fantasy thinking like the idea that we can have a free floating (freely traded) currency and also control its value. If you go to a trillion dollar global open auction and think you can control the prices, you are delusional.

    Likewise, if you think your central bank can set an arbitrary lending rate and the trillion dollar bond market will follow you, you are equally delusional. Just ask the central banks of Greece, Italy, Argentina, Spain, etc. Studies repeatedly show that central bank interest rates FOLLOW the rates set by the global open auction market place. Central banks NEVER lead the market. They ALWAYS follow.

    Monetary theory says a central bank can control the supply of money in the banking system. Another delusion. The amount of money put out by a central bank is miniscule compared to the credit created by bank lending. In a deflationary cycle (as we are entering now), banks don’t lend because no one wants to borrow and banks won’t lend to anyone except the AAA most credit worthy. Thus the supply of credit contracts. As we saw in 2008-2009 and in Japan for the past decade, interest rates can drop to nearly 0% and still no one is borrowing. No borrowing means the amount of credit (money) in the system is drying up. The US Federal Reserve has pumped over $7 trillion into their system since 2009 and prices continue to drop because banks aren’t lending and no one wants to spend.

    On the other hand, we don’t HAVE to have a freely traded currency. Maybe they have in mind going back to a 1960’s type controlled currency. That would be a HUGE change. It would mean the NZD could only be used inside NZ. Importers and travelers would have to buy foreign currency inside NZ at the rates set by the crown. It can be done, but it would be a shock to the country.

  7. xtasy 7

    The reality is that Labour may have to learn from “Laobur” movements in other countries and even dare to take some semi nationalistic economic policies, to protect and develope local industries, to create and protect jobs, not fall for the bs free enterprise crap that says we must seell cheaps dairy produce to buy low Chinese made consumer products we need.

    The left has been taken hostage by right wing economic pseudo liberal crap talk since the ACT acteurs took over Labour. It is time to take a fucking stand and end this indoctrination, which sadly even Parker, and some other Labour head ones adhere to, even though they do not admit it. Shearer has NO clue about economics by the way, test him!

    • Colonial Viper 7.1

      Resource nationalism is going to be a way of life in the mid 21st century. NZ and NZ politicians better smarten up.

      • xtasy 7.1.1

        Are ou going to share your natural water, healthy soil, minerals witth me, while I want them to grow my econom y in Europe, Us or China, or even India? I am sure you love to “share” but that is not what I learned in life. It is sadly every one to themselves. That is at least a new admission CV. So to make it just, is to sit down and do FAIR deals with like-ninded societies that want to have fair trade and fair deals, to advance all of their societies, not to benefit a few at the expense of the rest.

        What about a “fair trade” agreement, rather than Fran O Sullivan’s FTAs?

        • Colonial Viper 7.1.1.1

          +1

          Although it is likely we will still have to pay some kind of levy to the Imperial Powers of the moment, to hold on to certain benefits.

      • weka 7.1.2

        Greens co-leader Russel Norman says his member’s bill to restrict foreign land ownership is likely to be narrowly defeated
        tonight by an ‘‘evil coalition’’.

         

        The bill aims to retain New Zealand ownership and control of sensitive land and has the support of Labour, NZ First, the Maori Party and Mana.

         

        However, Dr Norman said it was likely to be opposed by National, UnitedFuture and ACT.
        ‘‘The job of Parliament is to represent the will of the people and people don’t want land going into overseas ownership,’’ he said

         
         
        http://www.stuff.co.nz/dominion-post/news/politics/7480511/Norman-predicts-defeat-by-evil-coalition
         
         

        • xtasy 7.1.2.1

          What is needed for all opposition to bloody sit down at a table, have a ruthless brainstorming sessing, make compromises with party politics and agree on some CORE policies. That will set the agenda for a forceful, resolute and united opposition, which we sadly have NOT got yet. Maybe all party members and supporters tell their leaders to ge this bloody worked out?

          • Colonial Viper 7.1.2.1.1

            Maybe all party members and supporters tell their leaders to ge this bloody worked out?

            +1

          • Carol 7.1.2.1.2

            To me it looks like there are some instances in the House when opposition parties are working on the same page. It has seemed like this in some questions and debates on asset sales. And it seemed like that yesterday when National Ministers and the PM’s proxy were under constant pressure over questioning about ministers breaching privacy codes.

            This may not have been planned, but they seem to understand where to put the pressure.

            Also there are some instances of Green and Labour MPs attending meetings on campaign issues eg Auckland transport.

  8. IrishBill 8

    This is some good stuff from Parker and Cunliffe. We’ve been hamstrung by crazy monetarist orthodoxy for far too long.

    • rosy 8.1

      +1 I’m looking forward to a more concrete commitment to hands-on policy rather than just floating the ideas around – but yeah, it’s a start (small yay! for now).

      • Carol 8.1.1

        +1, rosy.

      • mike e 8.1.2

        rosy and Carol unfortunatly revealing full policy now is just oppening the door for National to steal those policies as they have none of their own,its better to look at direction now and have input and consultation with the job creating sector to see what every bodies views are and so we don.t get off side with them.

  9. saniac 9

    I’m pleased to see the boundaries of acceptable discourse edge open a bit wider.

  10. jack 10

    Glad to hear someone mention manufacturing. I like what Parker is saying but will labour follow through. Look at Singapore. They have the highest rate of income per capita and their population is very similar and a lot less land! The only way it can be done is through tax incentives because the labour here can’t compete with asia. I don’t mean bringing in the banks to shuffle money around. Ireland did it and paid a heavy price. If banks get complete tax subsidies, then they become parasites. Draco is somewhat right about regulating the free market to a certain degree, particularly banks. But too much will stifle manufacturing. Fisher and Pykle didn’t have to go offshore if there were tax incentives to keep them here. Maybe that is what Parker is talking about.

    • Draco T Bastard 10.1

      The only way it can be done is through tax incentives because the labour here can’t compete with asia.

      Bollocks. There’s a number of ways to do it but, as history shows, maintaining the capitalist free-market system through subsidies isn’t one of them.

      Fisher and Pykle didn’t have to go offshore if there were tax incentives to keep them here.

      They didn’t have to go offshore so I suspect that even if we had given them subsidies tax incentives they still would have left. Probably used the subsidies tax incentives to help fund their move.

      As for Singapore, well, they still have poverty issues.

      • jack 10.1.1

        They didn’t have to go offshore so I suspect that even if we had given them subsidies tax incentives they still would have left. Probably used the subsidies tax incentives to help fund their move.

        So, your saying regulate all the private sector.. it’s been done but didn’t work. It’s called communism. To fund their move? That’s a generalization. There was no effort to keep them here only a “bad bad employer looking for cheap labour” from Helen Clark and Labour. Your response?? “good riddance.” But tell that to the employees that lost their jobs.

        http://sg.news.yahoo.com/s%E2%80%99pore-is-now-richest-in-the-world.html

  11. ad 11

    I thought it was great that he committed to supporting manufacturing in New Zealand, to a union audience.

    He did not lay out any policy instruments to do so – hopefully they won’t leave these announcements to the last minute like last time.

    I had no idea that he had had a major accident while labouring on a road working gang. Interesting.

    He clearly cribbed pretty heavily from Wayne Swan’s speech a month ago. Sure he didn’t need to do that. OK, he’s not Sam Seabourne or William Saphire, but yinno….

    If Labour can do ten more of these in two months they will begin to turn the tide away from the arcane and Byzantine internal politics and start making some policy stories, like a good Opposition.

    Definitely a solid meat and two veg effort.

  12. Fortran 12

    Jack

    Lets look at Singapore not through tinted glasses.
    The Singapore model of Governance – restricting political freedoms for security and the greater economic good – is that it only works if the ruling elite, and above all the man at the helm, leads by example, avoids the temptations offerred by high office and near-total control of the political apparatus.
    And I love going to Singapore.
    Could not see New Zealanders accepting these disciplines, where it is believed wrongly that Jack is still as good as his master. There is an enormous class systems in Singapore.

  13. QoT 13

    … on top of Labour’s other macro-economic policies which include a capital gains tax

    Wait, capital gains tax is back on now?

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    There appears to be consensus – by omission – that the concept of indigenous futures should be accepted at face value. So I scavenged the internet to see if I could locate an academic descriptor or a framework around how we think about it as a concept, and whether it ...
    EllipsisterBy Ellipsister
    1 week ago
  • Cadbury rumoured to be releasing the Pineapple Trump
    Here’s another novelty chocolate to shove in your gob, New Zealand Cadbury could be seeking to make itself great again with a rumoured new release: Pineapple Trumps, a spin on its classic chocolate-encased pineapple treat and do-it-yourself tooth remover. The global confectionery manufacturer and bumbling “before” character in an infomercial, ...
    The CivilianBy admin
    1 week ago
  • The coming resource war.
    During my time in the Pentagon I had the privilege of sitting down with military leaders and defence and security officials from a variety of Latin American nations. Sometimes I was present as a subordinate assistant to a senior US defence department official, sometimes as part of a delegation that ...
    KiwipoliticoBy Pablo
    1 week ago
  • Māori Language Week with The Civilian
    Kia ora, Aotearoa. It’s that magical time of year. Te Wiki o te Reo Māori. In English, the week that frightens talk radio. As you probably know by now, all your favourite media outlets are participating, some more successfully than others. Stuff has changed its name to Puna for the ...
    The CivilianBy admin
    1 week ago
  • Will Horizons act on climate change?
    Local body elections are coming up next month. And it looks like all Palmerston North candidates for Horizons (the Manawatu-Whanganui Regional Council) want to take action on climate change:Climate change is set to be a key issue in Palmerston North for the next three years if those wanting to get ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • BORA reform is stalled
    Eighteen months ago, the government promised to strengthen the Bill of Rights Act, by explicitly affirming the power of the courts to issue declarations of inconsistency and requiring Parliament to formally respond to them. So how's that going? I was curious, so I asked for all advice about the proposal. ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Corbyn and Brexit
    As the Brexit saga staggers on, the focus is naturally enough on the Prime Minister and his attempts to achieve Brexit “do or die”. But the role played by the Leader of the Opposition is of almost equal interest and complexity. The first problem for Jeremy Corbyn is that he ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • A ditch for him to die in
    Last week, English Prime Minister Boris Johnson boldly declared that he would rather die be dead in a ditch than delay Brexit. Unfortunately for him, the UK parliament accepted the challenge, and promptly dug one for him. The "rebellion bill" requires him to ask for and secure yet another temporary ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Warning! Warning! Danger Jacinda Ardern! Danger Marama Davidson! Warning!
    Lost In Political Space: The most important takeaway from this latest Labour sexual assault scandal, which (if I may paraphrase Nixon’s White House counsel’s, John Dean’s, infamous description of Watergate) is “growing like a cancer” on the premiership, is the Labour Party organisation’s extraordinary professional paralysis in the face of ...
    1 week ago
  • Union solidarity with Ihumatao land occupation
    by Daphna Whitmore Every Sunday for the past two months unionists from First Union, with supporters from other unions, have set out to the Ihumatao land protest, put up gazebos and gas barbeques, and cooked food for a few hundred locals and supporters who have come from across the country. ...
    RedlineBy Daphna
    1 week ago
  • Climate Change: The wrong kind of trees?
    Newsroom today has an excellent, in-depth article on pine trees as carbon sinks. The TL;DR is that pine is really good at soaking up carbon, but people prefer far-less efficient native forests instead. Which is understandable, but there's two problems: firstly, we've pissed about so long on this problem that ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • No freedom of speech in Turkey
    Canan Kaftancioglu is a Turkish politician and member of the opposition Republican People's Party (CHP). Like most modern politicians, she tweets, and uses the platform to criticise the Turkish government. She has criticised them over the death of a 14-year-old boy who was hit by a tear gas grenade during ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Speaker: Tadhg Stopford: Why I’m standing for the ADHB
    Hi there, just call me Tim.We face tough problems, and I’d like to help, because there are solutions.An Auckand District Health Board member has nominated me for as a candidate for the ADHB, because her MS-related pain and fatigue is reduced with hemp products from Rotorua.  Nothing else helped her. If I ...
    1 week ago
  • Good little vassals
    The Inspector-General of Intelligence and Security has published their report on whether the SIS and GCSB had any complicity in American torture. And its damning. The pull quote is this:The Inquiry found both agencies, but to a much greater degree, the NZSIS, received many intelligence reports obtained from detainees who, ...
    No Right TurnBy Idiot/Savant
    1 week ago
  • Who Shall We Turn To When God, And Uncle Sam, Cease To Defend New Zealand?
    Bewhiskered Cassandra? Professor Hugh White’s chilling suggestion, advanced to select collections of academic, military and diplomatic Kiwi experts over the course of the past week, is that the assumptions upon which Australia and New Zealand have built their foreign affairs and defence policies for practically their entire histories – are ...
    1 week ago
  • The Politics of Opposition
    For most of the time I was a British MP, my party was out of government – these were the Thatcher years, when it was hard for anyone else to get a look-in. As a front-bencher and shadow minister, I became familiar with the strategies required in a parliamentary democracy ...
    Bryan GouldBy Bryan Gould
    1 week ago
  • More expert comments on the Canadian fluoride-IQ paper
    The Green et al (2019) fluoride/IQ is certainly controversial – as would be expected from its subject (see If at first you don’t succeed . . . statistical manipulation might help and Politics of science – making a silk purse out of a sow’s ear). Anti-fluoride campaigners have been actively promoting it ...
    1 week ago
  • The return to guerrilla war in Colombia
    by Gearóid Ó Loingsigh On August 29th a video in which veteran FARC (Revolutionary Armed Forces of Colombia) commander Iván Márquez announced that they had taken up arms again was released. There was no delay in the reaction to it, from longtime Liberal Party figure and former president Uribe, for ...
    RedlineBy Admin
    1 week ago
  • Air New Zealand identifies this enormous plot of unused land as possible second airport site
    Air New Zealand couldn’t believe its luck that this seemingly ideal piece of real estate had so far gone entirely unnoticed. Air New Zealand’s search for a site to build a second Auckland Airport may have made a breakthrough this afternoon, after employees scanning Google satellite imagery spotted a huge, ...
    The CivilianBy admin
    2 weeks ago
  • Redline on the Labour Party
    No-one on the anti-capitalist left in this country today puts forward a case that Labour is on the side of the working class.  There are certainly people who call themselves ‘socialist’ who do, but they are essentially liberals with vested interests in Labourism – often for career reasons. Nevertheless, there ...
    RedlineBy Admin
    2 weeks ago
  • New Fisk
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Labour’s failure
    When National was in government and fucking over the poor for the benefit of the rich, foodbanks were a growth industry. And now Labour is in charge, nothing has changed: A huge demand for emergency food parcels means the Auckland City Mission is struggling to prepare for the impending arrival ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Ardern attempts to vaccinate Clarke Gayford live on television to prove that it’s safe
    Gayford, pictured here on The Project, before things got wildly out of control. A bold public relations move by the Government to encourage parents to vaccinate their children has gone horribly wrong. Prime Minister Jacinda Ardern appeared on tonight’s episode of Three’s The Project, where the plan was for her ...
    The CivilianBy admin
    2 weeks ago
  • Has Mr. Whippy gone too far by parking on our front lawns?
    Mr. Whippy’s business model has driven it down a dark road of intimidation. Residents in major centres around the country are becoming disgruntled by the increasingly aggressive actions of purported ice cream company Mr. Whippy, who have taken to parking on people’s front lawns and doorsteps in a desperate attempt ...
    The CivilianBy admin
    2 weeks ago
  • Cleaning up the water
    Today the government released its Action Plan for Healthy Waterways, aimed at cleaning up our lakes and rivers. Its actually quite good. There will be protection for wetlands, better standards for swimming spots, a requirement for continuous improvement, and better standards for wastewater and stormwater. But most importantly, there's a ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Fronting up
    Today I appeared before the Environment Committee to give an oral submission on the Zero Carbon Bill. Over 1,500 people have asked to appear in person, so they've divided into subcommittees and are off touring the country, giving people a five minute slot each. The other submitters were a mixed ...
    No Right TurnBy Idiot/Savant
    2 weeks ago
  • Politics of science – making a silk purse out of a sow’s ear
    Anti-fluoride activists have some wealthy backers – they are erecting billboards misrepresenting the Canadian study on many New Zealand cities – and local authorities are ordering their removal because of their scaremongering. Many New Zealanders ...
    2 weeks ago
  • Democracy – I Don’t Think So
    So, those who “know best” have again done their worst. While constantly claiming to be the guardians of democracy and the constitution, and respecters of the 2016 referendum result, diehard Remainers (who have never brought themselves to believe that their advice could have been rejected) have striven might and main ...
    Bryan GouldBy Bryan Gould
    2 weeks ago

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