web analytics

Key’s plan arse backwards

Written By: - Date published: 11:21 am, May 25th, 2012 - 23 comments
Categories: budget2012, national - Tags: ,

Can’t be a good sign for Key that the media are starting to ask if there is a plan:

John Key: We do have a plan

Prime Minister John Key has denied his Government does not have a plan for growing New Zealand’s economy following criticism from the opposition about the Budget.

Key said on TV ONE’s Close Up tonight getting back to surplus is the first step to growing the economy.

See, that’s our problem right there. Key’s plan is arse backwards. Getting back to surplus is not the first step to growing the economy. It’s the other way round. Growing the economy is the first step to getting back to surplus. The problem is that the Nats have no idea how to do that.

What Key’s answer really means is that the premise of the question is correct, there is no plan. No wonder we’re in such a mess.

23 comments on “Key’s plan arse backwards ”

  1. Steve Withers 1

    National’s supporters include too many monopolists and duopolists. They aren’t entrepreneurs. They want wages reduced and work conditions degraded….starting with the weakest among us.

    That isn’t a plan that takes new Zealand anywhere worth going….but it’s the only plan National has.

    It’s sad to see them be so consistently……stupid. But then the 47% who voted them are cut of the same cloth. But the rest of us have to wear the consequences….or leave the country.

    • ad 1.1

      Key – and indeed parliament as a whole – is now less and less the economic power-centre of New Zealand other than in a very basic level. New Zealand right now reminds me of the kind of state that Act was advocating for a decade ago.

      Building on your point, the oligopolies who run most of our core services have little effective public scrutiny (granted the financial regualtors are better than they were). Particularly annoying when an old scrote like Sir Ron Birerley can’t even get shifted with good sharehodler activism.

      We are increasingly a shareholder society, rather than a democracy. So we are governed, in any economic sense, by fewer and fewer people, who have greater and greater power. Money has become power.

      Increasingly, whether John Key has a plan or not is irrelevant, because we have not had an economically activist central gvoernment since the first term of the Lange government.

      Pretty strange when if we looked at New Zealand from beyond these shores, we are so economically tiny and vulnerable as to need every bit of the economy and the public sector working lock step in unison. Or continue to be played off by the likes of Maersk, Australian banks, French insurers, and the commodity exchanges.

      It will take the most almighty of structural adjustments to do that, and to be the Prime Minsiter of a plan to alter the future of New Zealand. I would vote for that party.

  2. ianmac 2

    Yes Rob. Saw that on Close up and was surprised that the questions were quite persistent and had Mr Key looking uncomfortable.
    As you say Growing the Economy would lead to surplus, but Mr Key does contend that it is not the Government’s job to provide jobs. Funny how they bask in in the glow of any recent improvements and blame 9 long years of Labour for “failures.” Can’t have it both ways.

    • Dv 2.1

      >>bask in in the glow of any recent improvements

      Huh, what have you seen Ian that I havent?

  3. Dr Terry 3

    The problem is that so many people take Key precisely at his word, not pausing to reflect upon the lack of logic therein. When one examines these words, one sees either a sly dog that depends upon our gullibility, or a leader who possesses little personal intelligence (putting it kindly!)

  4. tsmithfield 4

    From my update from BNZ Currency research, that arrives to my inbox daily:

    Markets have become too pessimistic on the outlook for NZ growth and interest rates. Forward indicators still point to a stronger pace of growth ahead, meaning market expectations of RBNZ rate cuts should be reversed in time.

    So, it looks like growth is coming, depending on what happens in Europe, of course. The rebuilding of Christchurch is an obvious driver for this.

    The problem with stimulus spending is that if it doesn’t actually lead to growth, as a number of countries have found out, all you are left with is a massive debt.

    At the moment, while our debt is low, it is much easier, and requires very little in the way of austerity to climb our way back out. I would rather this than spend like crazy and then find we have a huge hill to climb to get the economy back on track some time in the future.

    • Draco T Bastard 4.1

      Austerity = digging a deeper hole

    • mike e 4.2

      The silly monetarist downward spiral, look back in NZ hisTory every time we have gone down this path our economy has stayed in recession. which means we have to borrow more to stay stagnant.

    • muzza 4.3

      The fact you have signed up to that TS shows how little you appear to know about money!

      Our debt is low… um…No its not!

      What do you reckon the amount of interest we are paying each year might be on our govt debt, that sif you take it at the offical figures, which have never been audited!

      Go on then, have a guess!

    • Georgecom 4.4

      “So, it looks like growth is coming”

      TS, does it look to you like Santa may be on his way as well? How about the tooth fairy?

      Your mates Bill and John told you it looked like growth was on its way back in 2009, and then 2010, and 2011.

      • Colonial Viper 4.4.1

        Growth is not coming back. A toxic combo of peak energy, peak minerals and peak debt mean that the next 30 years will be very unlike the previous 30.

        Of course, all our politicians can say from now on is “growth is just around the corner…”

        • Ad 4.4.1.1

          On the one hand that sentiment sounds like standard Left Melancholy willing sustained catastrophe. The leftie analogue of The Is No Alternative.

          Although to undercut myself, the EU will take a decade to recover as will the US. Which blows back onto China’s manufactured goods.

          Mind you given the option of being Singaporean or Australian, I would be Singaporean.

    • Matt 4.5

      “The problem with stimulus spending is that if it doesn’t actually lead to growth, as a number of countries have found out, all you are left with is a massive debt.”

      So backwards. The stimulus expenditures are not what rack up the debt, it’s the underlying economic weakness that does it. In the States, it’s a common right wing trope that the ‘failure’ of post 2008 stimulus is evidence that stimulus is a waste of money, when in fact the problem was the inadequacy of the amount of stimulus. It’s like saying you need 20m3 of concrete to build a foundation, and you decide to only use 8m3, and then when it inevitably fails you say that concrete doesn’t work.

  5. Adrian 5

    ” ..while our debt is low..”. What bullshit is this TS, our ( Govt) debt is astronomical compared to 4 years ago and overall dangerously high. This is obviously a spin line that you are being paid to promulgate.

    • infused 5.1

      It’s not high at all, regardless of how it’s been in the past.

      • Colonial Viper 5.1.1

        Its private debt which is the killer, also our balance of payments.

        • infused 5.1.1.1

          I think people are continues paying back debt now… hence why there is no growth. Everyone I know is paying something off.

          I’m down to the student loan, with just 4k to go, about 1k on my cc. Like I said, everyones seems to be in the same boat.

          Basically, the country binged on credit from 2001 to 2008. I’d say the majority of people are guilty in this respect.

          • Ad 5.1.1.1.1

            Anyone for bets that with the same tax settings here, by 2014 we will have another real estate boom, both here and in Australia. And milk is back up trading to $8.50 of milk solids. And government is spending again. Christmas 2014, say.

          • Steve Withers 5.1.1.1.2

            A lot of people are now in lower-paying jobs than they were a few years ago. National’s policy on raising wages has been to lower them. Like much of what they said with respect to working people, the result is the opposite of what they promise. You don’t raise wages by giving employers more power and making workers weaker. You don’t raise wages by contracting out jobs that used to be done by employees on a decent wage.

            National’s pledge to raise wages was the same joke they played on Kiwis in the 90s….virtually unaltered. That enough Kiwis lacks the understanding to be suckered by it is a sad indictment on a huge proportion of the population.

            Roadkill on the highway of life…..

            The flow-on consequences of many thousands of people earning les money can only be that the economy is seriously constrained by consumer debt and falling wages.

            In response, NZ’s monopolists and duopolists are raising prices to keep their profits up in a flat market placing more pressure on the people already knobbled by lower wages and existing debt.

            It can’t last. It won’t.

  6. Uturn 6

    Ah I understand it now, some people don’t understand English or logic, that’s how they get sucked in.

    “Borrowing stimulates the economy, repaying debt stalls growth; spending by governments that chose not to influence the market (borrow) results in massive debt; repaying debt is evidence of previous low debt and rapid growth, but also over-stimulated economy, causing stalled growth. Everyone is guilty over over stimulating the economy; government should stop them repaying debt.”

    It’s hardly surprising that these, erm, “concepts” are offered by two resident collaborators with the status quo. But seriously guys, either you’re having a bit of a giggle – and I admit, if it were spoken instead of written, it would be an interesting rhetorical phrasing – or I might be the first to break the news to you, that either you have gulped the cool aid or you might be brain damaged.

  7. Matthew 7

    Getting back to surplus is no big deal, in fact its blindingly easy. Just slash spending until it is less than revenue. Regardless of whether the long-term effects of that slashing will cause massive extra costs in the future, it is that simple.
    NACT could, in all honesty, be in surplus by the next budget, but the slashing would be far too noticable. By doing it slowly, they think we will assume they have some sort of plan, which of course they dont.

    • Steve Withers 7.1

      Matthew: It probably isn’t that simple. Pulling the pins out from under a big chunk of the economy would / could have a big impact on revenue….and the money you’d save by cutting may find itself met by a further big downward bump in tax revenue. Carry that spiral on for as long as you can stand rising crime, social unrest and possible insurrection. You may still not balance that budget because of the increases required for police and security. Speculation? Sure. But absolutely supported by precedent in similar situations elsewhere.

Links to post

Recent Comments

Recent Posts

  • Biggest Year for Clean Cars on Record
    57,000 EVs and Hybrid registered in first year of clean car scheme, 56% increase on previous year EVs and Non Plug-in Hybrids made up 20% of new passenger car sales in March/April 2022 The Government’s Clean Car Discount Scheme has been a success, with more than 57,000 light-electric and ...
    BeehiveBy beehive.govt.nz
    10 hours ago
  • Police Wing 355 includes the highest ever proportion of Wāhine Māori
    Police Minister Chris Hipkins congratulates the newest Police wing – wing 355 – which graduated today in Porirua. “These 70 new constables heading for the frontline bring the total number of new officers since Labour took office to 3,303 and is the latest mark of our commitment to the Police ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • New RBNZ board takes up role from 1 July
    Members with a range of governance, financial and technical skills have been appointed to the Reserve Bank Board as part of the shift to strengthen the Bank’s decision-making and accountability arrangements. The Reserve Bank of New Zealand Act 2021 comes into force on 1 July 2022, with the establishment of ...
    BeehiveBy beehive.govt.nz
    11 hours ago
  • New measures to help manage COVID-19 as country stays at Orange
    New Zealand to remain at Orange as case numbers start to creep up 50 child-size masks made available to every year 4-7 student in New Zealand 20,000-30,000 masks provided a week to all other students and school staff Extra funding to schools and early childhood services to supports better ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • NZ to join International Court of Justice case against Russia
    Aotearoa New Zealand will join Ukraine’s case against Russia at the International Court of Justice (ICJ), which challenges Russia’s spurious attempt to justify its invasion under international law. Ukraine filed a case at the ICJ in February arguing Russia has falsely claimed genocide had occurred in Luhansk and Donetsk regions, as ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • New advisory group provides enduring Māori expertise for Te Aorerekura delivery
    The Government has taken another step forward in its work to eliminate family violence and sexual violence with the announcement today of a new Tangata Whenua Ministerial Advisory Group. A team of 11 experts in whānau Māori wellbeing will provide the Government independent advice on shaping family violence and sexual ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Making work better for Kiwi women
    Te Mahere Whai Mahi Wāhine: Women’s Employment Action Plan was launched today by Minister for Women Jan Tinetti – with the goal of ensuring New Zealand is a great place for women to work. “This Government is committed to improving women’s working lives. The current reality is that women have ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Good Employer Awards celebrate food and fibre sector
    The food and fibre sector acknowledged its people and leadership at last night’s 2022 Primary Industries Good Employer Awards, a time to celebrate their passion towards supporting employees by putting their health, welfare and wellbeing first,” Acting Minister of Agriculture Meka Whairiti said. “Award winners were selected from an extraordinary ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • PM's comments to NATO session
    Kia ora koutou katoa.  It is a rare thing to have New Zealand represented at a NATO Summit. While we have worked together in theatres such as Afghanistan, and have been partners for just on a decade, today represents an important moment for our Pacific nation.   New Zealand is ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Veterans Minister announces new focus on mental health for veterans and their whānau
    Te Arataki mō te Hauora Ngākau mō ngā Mōrehu a Tū me ō rātou Whānau, The Veteran, Family and Whānau Mental Health and Wellbeing Policy Framework “We ask a lot of those who serve in the military – and we ask a lot of the families and whānau who support ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Minister to advocate for Small Island States
    Associate Minister of Foreign Affairs Aupito William Sio has been appointed by the United Nations and Commonwealth as Aotearoa New Zealand’s advocacy champion for Small Island States.  “Aotearoa New Zealand as a Pacific country is particularly focused on the interests of Pacific Small Island Developing States in our region.  “This is a ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Increased support for households to pay local council rates
    An estimated 100,000 low income households will be eligible for increased support to pay their council rates, with changes to the rates rebate scheme taking effect from 1 July. Local Government Minister Nanaia Mahuta has announced increases to both the maximum value of the rates rebate, and the income threshold ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • He Oranga Poutama expanded into four new regions
    A long-standing physical activity programme that focuses on outcomes for Maori has been expanded to four new regions with Government investment almost doubled to increase its reach. He Oranga Poutama is managed by a combination of hapū, iwi, hauora and regional providers.   An increase in funding from $1.8 million ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Wellington’s rapid transit option progresses to next stage
    The Government is progressing a preferred option for LGWM which will see Wellington’s transport links strengthened with light rail from Wellington Station to Island Bay, a new tunnel through Mt Victoria for public transport, and walking and cycling, and upgrades to improve traffic flow at the Basin Reserve. “Where previous ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Keynote remarks: Tech 4 Democracy Summit, Madrid
    To Provost Muniz, to the Organisers at the Instituto de Empresa  buenas tardes and as we would say in New Zealand, kia ora kotou katoa.  To colleagues from the State Department, from Academia, and Civil Society Groups, to all our distinguished guests - kia ora tatou katoa. It’s a pleasure ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • On June 28, 2022, a meeting took place in Madrid between the President of the Government of the Kingdom of Spain, Pedro Sánchez Pérez-Castejón, and the Prime Minister of New Zealand, Jacinda Ardern, who was visiting Spain to participate in the Summit of the North Atlantic Treaty Organization as one ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • More young Kiwis able to travel and work in Spain
    A six-fold increase in the Aotearoa New Zealand-Spain working holiday scheme gives a huge boost to the number of young people who can live and work in each other’s countries, Prime Minister Jacinda Ardern says. Jacinda Ardern and Spanish President Pedro Sánchez Pérez-Castejón made the Working Holiday/Youth Mobility Scheme announcement ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Supporting local government candidates
    A significant barrier has been removed for people who want to stand in local government elections, with a change to the requirement to publish personal details in election advertising. The Associate Local Government Minister Kieran McAnulty has taken the Local Electoral (Advertising) Amendment Bill through its final stages in Parliament ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Govt passes law to protect consumers in banking and insurance sector
    New financial conduct scheme will ensure customers are treated fairly Banks, insurers and non-bank deposit takers to be licensed by the FMA in relation to their general conduct Sales incentives based on volume or value targets like bonuses for selling a certain number of financial products banned The Government ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New law paves way for greater supermarket competition
    Legislation that bans major supermarkets from blocking their competitors’ access to land to set up new stores paves the way for greater competition in the sector, Minister of Commerce and Consumer Affairs Dr David Clark said. The new law is the first in a suite of measures the Government is ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Vaccine mandate for border and corrections workers to end
    The Government has announced an end to the requirement for border workers and corrections staff to be fully vaccinated. This will come into place from 2 July 2022. 100 per cent of corrections staff in prisons, and as of 23 June 2022 97 per cent of active border workers were ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New Zealand's Commonwealth relationships strengthened at CHOGM
    Foreign Affairs Minister Nanaia Mahuta has concluded a visit to Rwanda reaffirming Aotearoa New Zealand’s engagement in the Commonwealth and meeting with key counterparts. “I would like to thank President Kagame and the people of Rwanda for their manaakitanga and expert hosting of this important meeting,” Nanaia Mahuta said. “CHOGM ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Emergency monitoring centre opened to keep New Zealand safer
    Minister for Emergency Management Kieran McAnulty officially launched the new Monitoring, Alerting and Reporting (MAR) Centre at the National Emergency Management Agency (NEMA) today. The Government has stood up the centre in response to recommendations from the 2018 Ministerial Review following the 2016 Kaikoura earthquake and 2017 Port Hills fire, ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Waikato Expressway speed limit to change to 110km/h
    Transport Minister Michael Wood has welcomed the announcement that a 110km/hr speed limit has been set for the SH1 Waikato Expressway, between Hampton Downs and Tamahere. “The Waikato Expressway is a key transport route for the Waikato region, connecting Auckland to the agricultural and business centres of the central North ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government listening to sector on NCEA
    Following feedback from the sector, Associate Minister of Education Jan Tinetti, today confirmed that new literacy and numeracy | te reo matatini me te pāngarau standards will be aligned with wider NCEA changes. “The education sector has asked for more time to put the literacy and numeracy | te reo ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Further Aotearoa New Zealand support for Ukraine
    $4.5 million to provide Ukraine with additional non-lethal equipment and supplies such as medical kit for the Ukrainian Army Deployments extended for New Zealand Defence Force (NZDF) intelligence, logistics and liaison officers in the UK, Germany, and Belgium Secondment of a senior New Zealand military officer to support International ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Electoral changes will bring greater transparency for voters
    Changes to electoral law announced by Justice Minister Kiri Allan today aim to support participation in parliamentary elections, and improve public trust and confidence in New Zealand’s electoral system. The changes are targeted at increasing transparency around political donations and loans and include requiring the disclosure of: donor identities for ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government invests to minimise gambling harm
    The Labour government has announced a significant investment to prevent and minimise harm caused by gambling. “Gambling harm is a serious public health issue and can have a devastating effect on the wellbeing of individuals, whānau and communities. One in five New Zealanders will experience gambling harm in their lives, ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • More free flu vaccines and a second COVID-19 booster to groups at risk of hospitalisation
    The Government has widened access to free flu vaccines with an extra 800,000 New Zealanders eligible from this Friday, July 1  Children aged 3-12 years and people with serious mental health or addiction needs now eligible for free flu dose. From tomorrow (Tuesday), second COVID-19 booster available six months ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government backs action to drive strong wool growth
    The Government is investing to create new product categories and new international markets for our strong wool and is calling on Kiwi businesses and consumers to get behind the environmentally friendly fibre, Agriculture Minister Damien O’Connor said today. Wool Impact is a collaboration between the Government and sheep sector partners ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Veterans Minister pays tribute to service and sacrifice at Korean War commemoration
    At today’s commemoration of the start of the Korean War, Veterans Minister Meka Whaitiri has paid tribute to the service and sacrifice of our New Zealand veterans, their families and both nations. “It’s an honour to be with our Korean War veterans at Pukeahu National War Memorial Park to commemorate ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Matariki projects star in latest round of Tourism Infrastructure Fund
    Minister of Tourism Stuart Nash and Associate Minister of Tourism Peeni Henare announced the sixth round of recipients of the Government’s Tourism Infrastructure Fund (TIF), which supports local government to address tourism infrastructure needs. This TIF round will invest $15 million into projects around the country. For the first time, ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Prime Minister’s Matariki speech 2022
    Matariki tohu mate, rātou ki a rātou Matariki tohu ora, tātou ki a tātou Tīhei Matariki Matariki – remembering those who have passed Matariki – celebrating the present and future Salutations to Matariki   I want to begin by thanking everyone who is here today, and in particular the Matariki ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • First Matariki holiday marked across New Zealand and the world
    Oho mai ana te motu i te rangi nei ki te hararei tūmatanui motuhake tuatahi o Aotearoa, Te Rā Aro ki a Matariki, me te hono atu a te Pirīmia a Jacinda Ardern ki ngā mahi whakanui a te motu i tētahi huihuinga mō te Hautapu i te ata nei.    ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Minister to attend second United Nations Ocean Conference in Portugal
    Oceans and Fisheries Minister David Parker will represent Aotearoa New Zealand at the second United Nations (UN) Ocean Conference in Lisbon, Portugal, which runs from 27 June to 1 July. The Conference will take stock of progress and aims to galvanise further action towards Sustainable Development Goal (SDG) 14, to "conserve and sustainably use ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government supports innovative dairy sheep sector to scale up
    The Government is boosting its partnership with New Zealand’s dairy sheep sector to help it lift its value and volume, and become an established primary industry, Agriculture Minister Damien O’Connor has announced. “Globally, the premium alternative dairy category is growing by about 20 percent a year. With New Zealand food ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government supports Buller flood recovery and longer term resilience
    The Government is continuing to support the Buller district to recover from severe flooding over the past year, Minister for Emergency Management Kieran McAnulty announced today during a visit with the local leadership. An extra $10 million has been announced to fund an infrastructure recovery programme, bringing the total ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Government outlines plans for future COVID-19 variants
    “The Government has undertaken preparatory work to combat new and more dangerous variants of COVID-19,” COVID-19 Response Minister Dr Ayesha Verrall set out today. “This is about being ready to adapt our response, especially knowing that new variants will likely continue to appear. “We have undertaken a piece of work ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Next steps for NZ UK free trade agreement
    The Government’s strong trade agenda is underscored today with the introduction of the United Kingdom Free Trade Agreement Legislation Bill to the House, Trade and Export Growth Minister Damien O’Connor announced today. “I’m very pleased with the quick progress of the United Kingdom Free Trade Agreement Legislation Bill being introduced ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Five new members join education Youth Advisory Group
    A ministerial advisory group that provides young people with an opportunity to help shape the education system has five new members, Minister of Education Chris Hipkins said today. “I am delighted to announce that Harshinni Nayyar, Te Atamihi Papa, Humaira Khan, Eniselini Ali and Malakai Tahaafe will join the seven ...
    BeehiveBy beehive.govt.nz
    1 week ago