web analytics

LB: Bill’s Busted Budget and Tim’s Exploding Emissions

Written By: - Date published: 4:28 pm, April 9th, 2014 - 13 comments
Categories: bill english, Economy, farming, jobs, Minister for International Embarrassment, tax - Tags: , ,

Local bodies points out a couple more of the National government’s sad-sacks. For some strange (but obvious) reason a warmish market for milk powder doesn’t do much for NZ apart from destroying our enviroment. Nationals’s taxcuts for the wealthy have destroyed the fiscal base of the government and done nothing to cause investment in the productive parts of our economy.

The Government’s ‘Rock Star’ economy hit a bum note (or rather a number of them) when Bill English had to admit that, yet again, his targeted surplus in 2015 is under threat. Despite the often trumpeted improving economy, the tax take was well under what was projected. The core tax revenue was $1.14 billion below expectations because assumptions around personal tax and custom duty did not eventuate and lower than predicted corporate tax and source deductions were received.

The Government has stubbornly stuck with their tax cuts to upper income earners, a loss of around $1.2 billion a year. This is despite the revelation that 107 out of our 161 wealthiest (who have assets of over $50 million) claimed to have taxable incomes of less than $70,000 a year. 2012 research discovered that up to $6 billion in unpaid tax was being cheated by tax evaders.

The dairy industry is largely leading New Zealand’s supposed economic recovery and now generates about 1/5 of our export income (around $15 billion), however very little tax comes from the sector relative to others. We also have a very buoyant property marketwith many regions seeing house prices rising over 10% last year. Property investments are now the preferred method in New Zealand for building wealth because most profits are nontaxable.

Property investments and dairy conversions are largely financed by loans from our big four Australian banks and we all know how little tax they pay.

There is obviously a lot of extra untaxed wealth around because New Zealand’s luxury car market sales have never been better.

The Government’s sale of state assets has not proved to be successful either. While the assets were valued at around $5.2 billion only $4 billion was raised and the sales cost significantly more to promote and manage than budgeted (costing tax payers over $250 million).

Rather than attempting to increase revenue by addressing the huge issue of tax avoidance and evasion Bill English is looking at further restraints in Government spending. There will obviously be more cuts to public services and more state employees will lose their jobs. Further attacks on beneficiaries can be expected too.

Tim Groser came under stiff attack from Russel Norman because of the Ministry of the Environment’s latest projections of our green house gas emissions. Our modeled net emissions under the Kyoto protocol will see an increase of around 50% by 2024. Per capita we are now one of the worst polluters in the developed world. It seems that my satirical description of the Government’s approach to our obligations to reduce emissions was probably closer to reality than I thought.

Bill English and Tim Groser have such a hands off approach to their Ministerial responsibilities that we’d probably be in a better position if they didn’t bother to turn up for work at all.

History

13 comments on “LB: Bill’s Busted Budget and Tim’s Exploding Emissions”

  1. tc 1

    They have to show up for work and execute the backers script, it’s what will feather their nests after they exit the beehive.

    When Bill said in 2008 that he’d inherited a good set of books from the Clark years what he left out was the follow on statement that this means he can plunder and leave someone else to clean up after him.

    The national party is owned by big business and it does what its funders tell it to do, the exiting MP’s probably know this all too well now.

  2. karol 2

    From the post:

    The dairy industry is largely leading New Zealand’s supposed economic recovery and now generates about 1/5 of our export income (around $15 billion), however very little tax comes from the sector relative to others. We also have a very buoyant property marketwith many regions seeing house prices rising over 10% last year. Property investments are now the preferred method in New Zealand for building wealth because most profits are nontaxable.

    Questoon One today in Question Time: David Cunliffe to the PM on housing affordability & home ownership:

    Hon David Cunliffe: Will the Prime Minister now commit to supporting Labour’s capital gains tax; if not, why is he standing by while young Kiwi first-home buyers are outbid by foreign telephone bidders using cheap foreign money to buy up New Zealand houses—for example, like the more than a dozen overseas phone sales witnessed by Auckland real estate agent Adam Wang?

    Rt Hon JOHN KEY: The member is asking me whether I am going to support a capital gains tax on every small business in New Zealand and every hard-working farmer in New Zealand, and whether we are going to support a capital gains tax in an area that is already in existence. It is already on speculators. If the member does not know that, he does not know anything.

    • Tracey 2.1

      capital gains tax on small business… that may be his most laughable lie yet…. mind you… if thats wbat he heard cunliffe asking bim … it could explain alot

    • Naki Man 2.2

      “Hon David Cunliffe: Will the Prime Minister now commit to supporting Labour’s capital gains tax; if not, why is he standing by while young Kiwi first-home buyers are outbid by foreign telephone bidders using cheap foreign money to buy up New Zealand houses—for example, like the more than a dozen overseas phone sales witnessed by Auckland real estate agent Adam Wang?’

      Typical bullshit from Cunliffe, 6.5% of homes are bought by foreigners in New Zealand.
      Most of these houses are in suburbs like Remuera, Only someone like Cunliffe would think first home buyers can afford these types of properties

      • Draco T Bastard 2.2.1

        /facepalm

        We already have a housing shortage so 6.5% going to foreigners, even if they are only in the more expensive suburbs (which they probably aren’t), will still push up prices everywhere else.

        • RedLogix 2.2.1.1

          And next year another 6.5% and the year after …

          Making the very conservative assumption that this rate continues for just another 10 years then 1.065 ^ 10 = 1.87 or about a 90% change.

          In other words 90% of NZ houses would be owned by overseas people. Still keen?

      • That 6.5% figure is not certain, no research has been done to judge the real extent of foreign buyers. Given the huge returns on investment properties here, minimal tax and few restrictions on foreign investment(see the ‘most profits are non taxable’ link on my post) I would be surprised if it wasn’t double that.

  3. srylands 3

    There are no “rich mates”. (There are hardly any “rich” people in New Zealand – probably less than 100.)

    The tax “cuts” were fiscally neutral. Tax revenue is up, not down. It has simply varied down against forecasts. Variance from tax forecasts is nothing new.

    Emissions growth is not news. The last Labour Government faced the same challenges. The answer is to use the flexibility mechanisms allowed by the UNFCCC to help reduce global emissions.

    A capital gains tax with owner occupied homes exempt will increase house prices and drive up rents – viz Australia. Solution = build more houses and release more urban land.

    A capital gains tax is not a bad idea but it should apply to all assets. Labour does not have the courage to do this (neither does National of course.)

    So I found your post a bit hysterical, and not helpful.

    • Draco T Bastard 3.1

      Wow, you really do come out with some BS:

      The tax “cuts” were fiscally neutral.

      No they weren’t – they left government with a billion dollar hole.

      Tax revenue is up, not down. It has simply varied down against forecasts.

      Yeah, you should probably try reading what was said rather than what’s in your head.

      Emissions growth is not news. The last Labour Government faced the same challenges. The answer is to use the flexibility mechanisms allowed by the UNFCCC to help reduce global emissions.

      So, SorryLands advice about not meeting emissions targets is to be “flexible” about it. This sounds remarkably like someone saying we shouldn’t try because we could always get someone else to do it for us.

      I found your comment false, flaky and hysterical.

    • framu 3.2

      “Tax revenue is up, not down. It has simply varied down against forecasts.”

      wouldnt the fiscal neutrality of the tax cuts be based on forecasts as well?

      if so – arent you just trying to have your cake and eat it? I do hope your not using two different systems of measurement to try and make a comparison

      also – you forgot gst increase – go on – how much is gst now? i know you can do it.

  4. Not a PS Staffer 4

    “Tim Groser has also made an artform of making NZ worse off.” So you say. I disagree!

    The little fella has made an artform of being a small big swinging dick wherever international trade negotiation are happening: he loves first class seats on planes, the five star hotels, switching seamlessly from English to French at well-catererd someothertaxpayer funded receptions or dinners.

    Is a more prosperous New Zealand his raison d’être? Non.
    Is the prosperity and happiness of the people of New Lynn (where he is repeatedly thrashed by Cunliffe) the reason he gets out of a satin sheeted bed? Mon Dieu, Non!

    The agoraphobic boy is selling you and me down the river so that he can be acclaimed by his peers in Wasingtton, London and Geneva as a truly great Trade “hand”. Groser is devoid of vision and self confidence. He is a great reason to drop the List System and insist that all MPs get some type of direct mandate from the people. Groser hates having to answer to the piulic: any public.

    • Rodel 4.1

      Not a PS Staffer- ..
      .” He is a great reason to drop the List System and insist that all MPs get some type of direct mandate from the people.”-a sentiment with which I tend to agree even though I like MMP

  5. philj 5

    xox.
    just a thought. Maybe it’s a rock star economy (for the rich) because the tax take is down. it’s not rock star for you and me.

Recent Comments

Recent Posts


History

  • Foreign Students just a commodity to National
    National MP Kanwaljit Singh Bakshi has confirmed that his party sees international students as nothing more than a commodity, says Labour's Immigration spokesperson Iain Lees-Galloway. "Mr Bakshi’s appalling comparison of some students to 'faulty fridges' that should be returned to ...
    15 hours ago
  • Tolley’s spin on Education spend doesn’t add up
    National’s spin about school funding won’t wash with parents who are paying more and more of the cost of their kids’ education every year, says Labour’s Education spokesperson Chris Hipkins.  “All the spin in the world can’t hide the fact ...
    17 hours ago
  • National not facing up to export challenge
    “The latest export data from Statistics New Zealand paints a picture of an economy which is not paying its way in the world, says Labour’s Finance spokesperson Grant Robertson. “Exports fell 9% - led by milk powder exports falling to ...
    18 hours ago
  • Correction over Talley’s statement
    Labour’s Workplace Relations spokesperson Iain Lees-Galloway has been advised by AFFCO Ltd that AFFCO is not advertising for staff in the Manawatu through MSD as stated in a press statement released earlier today.  “I have been advised by AFFCO that ...
    4 days ago
  • Minister, cut your losses – withdraw this doomed Bill
    Local Government Minister Sam Lotu-Iiga’s request for a five month extension on the report back date for the Local Government Act 2002 Amendment Bill (No 2) is an admission that the Bill is fundamentally flawed, says Labour’s Local Government Spokesperson ...
    4 days ago
  • Coleman’s cuts create crisis
    Mental health services in New Zealand are in a state of crisis with Youthline saying that calls for extreme depression doubled last year, says Labour’s Associate Health spokesperson Dr David Clark.  “About 150 young Kiwis are missing out on help ...
    4 days ago
  • Government helping Talley’s to break workers
    The Ministry for Social Development appears to be assisting Talley’s-Affco replace experienced workers effectively locked out by the company, say Labour’s Social Development spokesperson Carmel Sepuloni and Workplace Relations spokesperson Iain Lees-Galloway. “MSD is advertising for meat processing workers for ...
    4 days ago
  • Electives lag due to $1.7 billion hole
    The lag in hip and knee replacements is a direct consequence of the Government’s $1.7 billion underfunding of health, says Labour’s Associate Health spokesperson Dr David Clark.  “A comprehensive study by the University of Otago says that the rate of ...
    4 days ago
  • Speech to Master Builders’ Constructive conference
    Today’s all about being Constructive. And that is good because I believe there is a hunger out there for positive solutions. We must be able to believe there can be a better future. ...
    4 days ago
  • Māori Party housing plan complete failure
    The Māori Party’s housing plan to put more Māori into more homes has been a complete failure with fewer than five loans granted per year, says Labour’s Maori Development spokesperson Kelvin Davis. ...
    5 days ago
  • Fund IRD better to go after tax avoiders
    National’s Tax Working Group used the following graph (p30) in 2010 as part of their justification to cut the top tax rate. The big peaks around the top tax threshold were evidence of a suspiciously high number of taxpayers ...
    GreensBy robert.ashe
    5 days ago
  • Pasifika youth ignored by the Government
    The Adolescent Health Research Group’s new report on the wellbeing of young Pacific people shines a spotlight on the Government’s failure  to deliver any “brighter future” for them, says Labour’s Pacific Island Affairs spokesperson Su’a William Sio.  “Their research shows ...
    5 days ago
  • Police in the provinces are dissatisfied
    Police in the cities of Gisborne, Napier and Hastings are a lot more unhappy than their big city cousins says Labour’s Police Spokesman Stuart Nash.     “In fact the top four districts for enjoyable work within NZ Police are ...
    5 days ago
  • Govt action needed after Wheeler holds
    The Reserve Bank Governor’s warning that “excessive house price inflation” is posing a risk to financial stability puts the pressure back on the Government to take action to address the housing crisis, says Labour’s Finance spokesperson Grant Robertson. “Graeme Wheeler’s ...
    5 days ago
  • Minister confirms – new ministry only about abuse
    ...
    6 days ago
  • Silver Ferns Farms decision a tragedy
    The rubber stamping by the Overseas Investment Office of the Shanghai Maling buyout of Silver Fern Farms is a sorry day for the once proud New Zealand meat sector, says Labour’s spokesperson for Primary Industries, Damien O’Connor.  “Generations of Kiwis ...
    6 days ago
  • Benching Nick Smith first step to Kermadec solution
    Side-lining Nick Smith must be the first step in sorting out the Government's Kermadec debacle, says Labour's Fisheries Spokesperson Rino Tirikatene. “Last week Labour called for Nick Smith to be removed from further negotiations with Te Ohu Kaimoana over the ...
    7 days ago
  • Parents, schools, teachers oppose bulk funding
    Overwhelming opposition to the National Government’s school bulk funding proposal is unsurprising and Hekia Parata should now unequivocally rule out proceeding with the idea, Labour’s Education spokesperson Chris Hipkins says. “Bulk funding could only lead to bigger class sizes or ...
    7 days ago
  • MBIE gives up on enforcing the law
      The Government must provide labour inspectors with the resources they need to enforce basic employment law after reports that MBIE is only prosecuting the worst cases, says Labour’s Workplace Relations and Safety spokesperson Iain Lees-Galloway.  “Today’s news that MBIE ...
    7 days ago
  • West Coast population declines amid bleak economic forecast
    Despite the country experiencing record population growth, the number of people living in the West Coast fell, highlighting struggles in the region from low commodity prices and a poor economic forecast, says Labour’s Economic Development spokesperson David Clark. “The latest ...
    7 days ago
  • Recovery roadblocks cause for concern
    Strong pressure on mental health services, a flagging local economy and widespread issues with dodgy earthquake repairs are all causes for concern for people in Canterbury according to a new survey, says Labour’s Canterbury spokesperson Megan Woods. “Today the CDHB’s ...
    7 days ago
  • Motel purchase must not kick people onto the street
    The Government’s purchase of a South Auckland motel to house the homeless must come with a promise that the current long term tenants will not be kicked out onto the streets, says Labour’s Housing spokesperson Phil Twyford. “It is bizarre ...
    1 week ago
  • Not everyone singing along to so-called rock star economy
    The Westpac McDermott Miller Confidence Survey shows there is serious unease about the economy’s ability to deliver benefits to many New Zealanders, despite the Government trumpeting headline figures, says Labour’s Finance spokesperson Grant Robertson. “According to this survey a significantly ...
    1 week ago
  • Youth no better off under National’s “guarantee”
    John Key’s Youth Guarantee is such a spectacular failure that those who undertake the programme are more likely to end up on a benefit and less likely to end up in full-time employment than those who don’t, Leader of the ...
    1 week ago
  • More low-skilled students becoming residents
    New figures showing international students now make up nearly 40 per cent of all principal applicants approved for New Zealand residency and that their skill level has fallen dramatically, are further evidence that National’s immigration system is broken, says Labour’s ...
    1 week ago
  • 35% of offshore speculators paying no tax
    Offshore investors are aggressively exploiting tax breaks to pay no tax on their rental properties according to IRD data released by Labour’s Housing spokesperson Phil Twyford. “35% of offshore investors are paying no tax on their properties, and are pocketing ...
    1 week ago
  • Friday fish dump stinks
    This government has dumped bad news on a Friday to try to avoid political scrutiny in Parliament, says Labour’s Environment spokesperson David Parker. ...
    2 weeks ago
  • OECD report card: National must try harder
    The OECD report on education shows there’s much more to be done for young Kiwis, Labour’s education spokesperson Chris Hipkins says. ...
    2 weeks ago
  • Kermadec stoush shows Maori Party double-standards
    The Māori Party’s reaction to the trampled Treaty rights and the Government’s lack of consultation on the Kermadec Ocean Sanctuary reeks of the same arrogant mismanagement of the unpopular Maori land reforms, Ikaroa-Rāwhiti MP Meka Whaitiri says. ...
    2 weeks ago
  • Flawed fish dumping calls
    The finding that MPI failed to properly enforce the law even when it had evidence of fish dumping seriously damages the trust and credibility of the Ministry, the industry and this Government, Labour's Fisheries Spokesperson Rino Tirikatene says. ...
    2 weeks ago
  • Sidestepping Smith should be side-lined
    Nick Smith's arrogance and disrespect towards Māori is putting the future of the Kermadec Ocean Sanctuary at risk and he needs to excuse himself from further negotiations with Te Ohu Kaimoana, Labour's Fisheries spokesperson Rino Tirikatene says. ...
    2 weeks ago
  • Government must respond to cash for jobs scam
    Urgent Government action is required to halt  the emerging cash-for-jobs immigration scandal that is taking hold in New Zealand says Labour’s Immigration Spokesperson Iain Lees-Galloway.  “Stories of rogue immigration agents scamming thousands of dollars from migrant workers are just further ...
    2 weeks ago
  • Government dragging its feet on surgical mesh
    Jonathan Coleman is dragging his feet over any action to protect New Zealanders from more disasters with surgical mesh, says Health Spokesperson Annette King.  “The Government’s pathetic response is to claim all will be fixed by a new regime to ...
    2 weeks ago
  • Labour’s baby number app goes gangbusters
    An interactive tool that celebrates Labour’s achievements in health over the decades has become an online hit, says Labour’s Health spokesperson Annette King.  “Since the tool was launched last night, 18 thousand people have used it to find their baby ...
    2 weeks ago
  • Real disposable income falls in last three months
    Kiwis are working harder than ever but real disposable income per person fell in the last quarter thanks to record population increases, Labour’s Finance spokesperson Grant Robertson said. ‘In Budget 2016 the National Government said that what mattered most for ...
    2 weeks ago
  • Baby number app celebrates Labour achievements
    Labour has launched an interactive tool that allows New Zealanders to take a look back at our achievements in health over the decades, says Labour’s Health spokesperson Annette King.  “Today is the 78th anniversary of the Social Security Act 1938, ...
    2 weeks ago
  • Legal experts unpick Māori land reforms
    One of New Zealand’s top law firms has joined the chorus of legal experts heavily critical of the controversial Te Ture Whenua Maori Bill, adding more weight to the evidence that the reforms fall well beneath the robust legal standards ...
    2 weeks ago
  • Industries most reliant on immigration worst offenders
    The industries most reliant on immigration are the worst offenders when it comes to meeting their most basic employment obligations, says Labour’s Immigration spokesperson Iain Lees-Galloway.  “The industries that are most reliant on immigration are Hospitality, Administration, Agriculture, Forestry and ...
    2 weeks ago
  • Time to remove law that discriminates against sole parents
    It’s time to repeal a harmful law that sanctions those who do not name the other parent of their child, Labour’s Social Development Spokesperson Carmel Sepuloni says. “Every week, 17,000 children are missing out because their sole parent is being ...
    2 weeks ago
  • Government handling of Kermadecs threatens Treaty rights
    ...
    2 weeks ago
  • Prime Minister should give Police Minister some backbone
    The Prime Minister should condemn the ridiculously light sentence given to Nikolas Delegat for seriously assaulting a police woman, Labour’s Police spokesman Stuart Nash says. ...
    2 weeks ago
  • Government listens to Labour on family violence
    Labour is pleased the Government has finally acted on strengthening a range of measures against family violence, says Labour’s spokesperson on Family Violence Poto Williams.  “Some of the latest changes including a new family violence offence of non-fatal strangulation is ...
    2 weeks ago
  • Government must rethink paying for police checks
    National’s decision to ignore the concerns of charities will see the voluntary sector face hundreds of thousands of dollars in new costs if the Policing (Cost Recovery) Amendment Bill passes, says Labour's Community and Voluntary Sector spokesperson Poto Williams.  “National’s ...
    2 weeks ago
  • Seven months for families in cars to be housed
    Disturbing new figures show it is now taking the Ministry of Social Development an average of seven months to house families who are living in cars, Leader of the Opposition Andrew Little says.  “John Key made a song and dance ...
    2 weeks ago
  • North Korea test must be condemned
    The nuclear test by North Korea that registered 5.3 on the Richter scale needs to be condemned, says Labour’s Foreign Affairs spokesperson David Shearer. “This test, coming hard on the heels of a missile launch a few days ago, shows ...
    3 weeks ago
  • Tribe footing the bill for Maori Party?
     Waikato-Tainui deserve committed representation, yet the President of the Maori Party is muddying the waters by confusing the core business of the tribe with party politics, says Labour’s Hauraki-Waikato MP Nanaia Mahuta.  “The only way to fix this growing negative ...
    3 weeks ago
  • Schools set to lose millions
    Schools will start 2017 grappling with a $7.8 million funding cut, Labour’s Education spokesperson Chris Hipkins says. “Hekia Parata has been adamant changes to the way our schools are funded would see them better off. ...
    3 weeks ago
  • 70% of families in cold, damp homes powerless to fix them
    Shocking new figures out today show 70 per cent of the families living in cold, damp homes are powerless to make improvements because they are in rental properties, Labour’s Housing spokesperson Phil Twyford says. “The 2016 Household Incomes Report highlights ...
    3 weeks ago
  • Wealth inequality at record levels
    The housing crisis is making inequality worse, with housing costs in New Zealand now way out of proportion for those on the lowest incomes, according to the 2016 Household Incomes Report, says Labour’s Finance spokesperson Grant Robertson. “Most New Zealanders ...
    3 weeks ago
  • Migrant exploitation must be stamped out
    Migrant workers are being treated like slaves by rogue employers and the Government has failed to get on top of the issue, says Labour’s Immigration spokesperson Iain Lees-Galloway.“A report released by Caritas Aotearoa details ongoing exploitation of migrant workers such ...
    3 weeks ago


History


History


History