web analytics

Leaping into inaction

Written By: - Date published: 12:32 pm, April 20th, 2009 - 12 comments
Categories: economy, employment, national/act government - Tags:

Cycling is a great way to travel, so it’s great that the government is going to back more cycleways around the country to make the experience safer and more enjoyable for cycle tourists. But the new plan will only see a national network completed in “10-20” years time. That’s not going to help the recession now.

So let’s review National’s recession package:

  • Restart: 1,303 are getting some extra assistance after losing their jobs. Good but tens of thousands have lost their jobs, what about the rest?
  • Bank-Govt business equity scheme: killed by banks
  • Mortgage holidays: killed by English
  • SME package: already planned, minor changes
  • Tax cuts: smaller than planned, targeted at wrong incomes, cuts for middle incomes to be cancelled
  • 9-day fortnight: two businesses signed up, possibly a third
  • $1 billion for roads: stolen from public transport and road safety
  • Cycleway: 4000 jobs over next two years? Not happening.

They have at least given a $30 million boost to the pavillion industry. Oops, most of that will be spent in China.

It adds up to whole lot of nothing. We’ll start to see the cost of National’s delicition of duty when the unemployment numbers come out.

12 comments on “Leaping into inaction ”

  1. Eddie, it seems to have escaped you that the non-use of many of National’s initiatives is a good sign that the economy is not in as bad a position as we thought. Banks are saying they are managing without the equity scheme and they are providing mortgage holidays off their own bat (hardly “killed by English”). Businesses have not yet needed the 9-day fortnight.

    Don’t know where you get your “tens of thousands” of job losses but virtually all job losses qualify for restart. Presumably, people are finding new jobs quickly and not needing it.

    Not sure where you think the money should come from for roadways, tax cuts and cycleways. A magical money tree, perhaps? If tax cuts are smaller than planned, that is hardly National’s fault is it?

    • Maynard J 1.1

      Eddie, it seems to have escaped you that the non-use of many of National’s initiatives is a good sign that the economy is not in as bad a position as we thought.

      It cuts bothways, MacD – I’m gonna argue that the initiatives are crap, explains why no one is using them. Everything tells us there’s trouble – unemployment, retail figures, announced job losses, wage freezes. Unlikely that the piddling effect the NACT Government is having is because it’s not needed!!

      The cycleway was meant to be their flagship idea, and they could have found $50m from somewhere without too much fuss if it didn’t turn out their flagship idea was also crap, for a colorful variety of reasons.

      Eddie argues (tax cuts were) “smaller than planned, targeted at wrong incomes, cuts for middle incomes to be cancelled” – so maybe you’re right about ‘magical money tree’ for the first, but irrelevant to second two points.

  2. Rich 2

    In a boom, a sensible government should pay down debt, just as the former Labour one did.

    Then, in a recession (particularly one that stems from a credit crisis, like this one), the government should borrow and spend to substitute for private borrowing and spending. This one is, instead, cutting back.

    I’d add to the employment-destroying actions of the Nats the following:
    – removing the tax incentive for R&D.
    – putting much of the public service on a hiring freeze, so that efficiency reduces along with employment.

  3. Meanwhile while their mucking about with their hobby cycleway the Budget looks at slashing the Public Sector and Key is quoted as saying

    “New Zealand “cannot afford” to provide fresh fiscal spending for its embattled economy and was instead planning to cut government expenditure”

    This after we have already had a round of tax cuts!!!!

  4. BeShakey 4

    MacDoctor – So if National does nothing its ok because nothing must be needed, whereas, presumably, when they get around to doing something that’ll be good too because clearly it’s needed then? Your whole argument is ‘National can’t do anything wrong, therefore whatever they’ve done is right’.

  5. •$1 billion for roads: stolen from public transport and road safety

    Is it too much to ask for The Standard to pin up a copy of the proposed GPS to stop this error from being perpetuated?

    The reduction in funding for PT from roading revenue is ‘up to’ $225 million. Some of this reduction is a transfer of liability to fund rail improvements from the NZTA to the Crown. That may be even worse than eliminating the money entirely as it can be spent at the whim of politicians buying marginal electorates.

    The reduction for ‘road safety’ is actually a reduction for road policing. You will need to look at the size of the increase in safety funding for roadworks to see if there an actual reduction. Bearing in mind how ineffective previous road policing funding increases have been it is well past time to put the emphasis back on engineering as it was during the 1990s.

    Why do The Standard’s writers and guest writers keep overlooking the GPS’s proposed $225 million reduction in funding for local roads? Do they think the cost of bitumen is going to benefit from the fall in oil prices for evermore? Do they think ratepayers are crying out for bigger rates increases?

  6. Jan Farr 6

    Delicition? Did you mean dereliction?

  7. ak 7

    Yep, lucky we’ve got the “party of business” in charge, I mean they did so well last time we gave them free rein. Anyone remember Douglas telling us how we were “so far ahead of Austrailia” with our “reforms”, and set to become the “Switzerland of the South Pacific” within 3 – 5 years?

    “The OECD report pitilessly reveals New Zealand’s woes: apart from the vulnerability to external shocks because of the current account deficits, now at 8.9 per cent of GDP, the policy reforms of 1980s and 1990s have completely failed, leaving NZ productivity and standard of living near the bottom of the OECD tables.” (added emph)

    http://www.businessspectator.com.au/bs.nsf/Article/Love-thy-neighbour-pd20090417-R6TWP?OpenDocument

  8. Rich 8

    He meant Swaziland..

    • Was Roger planning to turn us into a tax haven then?

      A bit like Anderton’s constant references to our position at the top of the OECD in 1948 without noticing that almost every other OECD country had just been bombed to buggery by the Nazis.

      But then we used to believe we had racial harmony, a pristine environment and that Auckland is the engineroom of the economy, so self delusion is hardly confined to our politicians..

  9. BLiP 9

    From the new plan link:

    Planning consultant Mike Barnett, who researched the Lake Wakatipu-Bluff route on behalf of Venture Southland, said the Ministry of Tourism had found “the practical thing was a network of excellent cycle opportunities in New Zealand which may lead to bigger things later”.

    What – like strip malls in the middle of our National Parks, perhaps?

    • BLiP, That reads like you’ve never talked to a cycle tourist.

      The bigger things arrive when those living along the cycle routes discover that cycle tourists need tent sites with showers, B&Bs, cafes, stores, etc located much closer together than is needed for motorvehicle dependent tourists. That sprinkling of a variety of non-farming jobs through remote rural regions slows the loss of youth to the big smoke so it’s good for the social fabric as well as being an extra income source.

Recent Comments

Recent Posts

  • Tokelau Language Week reminds us to stay united and strong
    Staying strong in the face of challenges and being true to our heritage and languages are key to preserving our cultural identity and wellbeing, is the focus of the 2020 Tokelau Language Week. Minister for Pacific Peoples, Aupito William Sio, says this year’s theme, ‘Apoapo tau foe, i nā tāfea ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • NZ announces a third P-3 deployment in support of UN sanctions
    The Government has deployed a Royal New Zealand Air Force P-3K2 Orion (P-3) maritime patrol aircraft to support the implementation of United Nations Security Council (UNSC) resolutions imposing sanctions against North Korea, announced Minister of Foreign Affairs Winston Peters and Minister of Defence Ron Mark. “New Zealand has long supported ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pacific trade and development agreement a reality
    Pacific regional trade and development agreement PACER Plus will enter into force in 60 days now that the required eight countries have ratified it. Trade and Export Growth Minister David Parker welcomed the announcement that the Cook Islands is the eighth nation to ratify this landmark agreement. “The agreement represents ...
    BeehiveBy beehive.govt.nz
    1 week ago
  • Securing a pipeline of teachers
    The Government is changing its approach to teacher recruitment as COVID-19 travel restrictions continue, by boosting a range of initiatives to get more Kiwis into teaching. “When we came into Government, we were faced with a teacher supply crisis,” Education Minister Chris Hipkins said. “Over the past three years, we ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Border exceptions for a small number of international students with visas
    The Government has established a new category that will allow 250 international PhD and postgraduate students to enter New Zealand and continue their studies, in the latest set of border exceptions. “The health, safety and wellbeing of people in New Zealand remains the Government’s top priority. Tight border restrictions remain ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • First COVID-19 vaccine purchase agreement signed
    The Government has signed an agreement to purchase 1.5 million COVID-19 vaccines – enough for 750,000 people – from Pfizer and BioNTech, subject to the vaccine successfully completing all clinical trials and passing regulatory approvals in New Zealand, say Research, Science and Innovation Minister Megan Woods and Health Minister Chris Hipkins. ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • International statement – End-to-end encryption and public safety
    We, the undersigned, support strong encryption, which plays a crucial role in protecting personal data, privacy, intellectual property, trade secrets and cyber security.  It also serves a vital purpose in repressive states to protect journalists, human rights defenders and other vulnerable people, as stated in the 2017 resolution of the ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ministry of Defence Biodefence Assessment released
    The Ministry of Defence has today released a Defence Assessment examining Defence’s role across the spectrum of biological hazards and threats facing New Zealand. Biodefence: Preparing for a New Era of Biological Hazards and Threats looks at how the NZDF supports other agencies’ biodefence activities, and considers the context of ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020
    New Approaches to Economic Challenges: Confronting Planetary Emergencies: OECD 9 October 2020 Hon David Parker’s response following Thomas Piketty and Esther Duflo. Good morning, good afternoon, and good evening, wherever in the world you might be. I first acknowledge the excellent thought provoking speeches of Thomas Piketty and Esther ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Kaipara Moana restoration takes next step
    A Memorandum of Understanding has been signed today at Waihāua Marae between the Crown, local iwi and councils to protect, restore and enhance the mauri of Kaipara Moana in Northland. Environment Minister David Parker signed the document on behalf of the Crown along with representatives from Ngā Maunga Whakahī, Ngāti ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • New Zealand and Uruguay unite on reducing livestock production emissions
    Agriculture Minister Damien O’Connor and Uruguayan Minister of Livestock, Agriculture and Fisheries Carlos María Uriarte have welcomed the launch of a three-year project that will underpin sustainable livestock production in Uruguay, Argentina, and Costa Rica.  The project called ‘Innovation for pasture management’ is led by Uruguay’s National Institute of Agricultural ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • 3100 jobs created through marae upgrades
    Hundreds of marae throughout the country will be upgraded through investments from the Provincial Growth Fund’s refocused post COVID-19 funding to create jobs and put money into the pockets of local tradespeople and businesses, Regional Economic Development Minister Shane Jones and Māori Development Minister Nanaia Mahuta have announced. “A total ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Health volunteers recognised in annual awards
    Health Minister Chris Hipkins has announced 9 teams and 14 individuals are the recipients of this year’s Minister of Health Volunteer Awards.  “The health volunteer awards celebrate and recognise the thousands of dedicated health sector volunteers who give many hours of their time to help other New Zealanders,” Mr Hipkins ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community COVID-19 Fund supports Pacific recovery
    The Minister for Pacific Peoples, Aupito William Sio says a total of 264 groups and individuals have successfully applied for the Pacific Aotearoa Community COVID-19 Recovery Fund, that will support Pacific communities drive their own COVID-19 recovery strategies, initiatives, and actions. “I am keen to see this Fund support Pacific ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Community benefits from Māori apprenticeships
    Up to 50 Māori apprentices in Wellington will receive paid training to build houses for their local communities, thanks to a $2.75 million investment from the Māori Trades and Training Fund, announced Employment Minister Willie Jackson today. “This funding will enable Ngāti Toa Rangatira Incorporated to provide its Ngā Kaimahi ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Training fund supports Māori jobseekers
    Rapidly growing sectors will benefit from a $990,000 Māori Trades and Training Fund investment which will see Wellington jobseekers supported into work, announced Employment Minister Willie Jackson today. “This funding will enable Sapphire Consultants Ltd. to help up to 45 Māori jobseekers into paid training initiatives over two years through ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Ruakura Inland Port development vital infrastructure for Waikato
    The Government is investing $40 million to develop an inland port at Ruakura which will become a freight super-hub and a future business, research and residential development for the Waikato, Urban Development and Transport Minister Phil Twyford, and Māori Development Minister Nanaia Mahuta announced today. The funding has been has ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Appointments made to Defence Expert Review Group
    Defence Minister Ron Mark announced today the establishment of an Expert Review Group to review a number of aspects of the New Zealand Defence Force’s (NZDF) structure, information management and record-keeping processes.  The Expert Review Group’s work arises out of the first recommendation from the Report of the Government’s Inquiry ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • No active community cases of COVID-19
    There are no active community cases of COVID-19 remaining in the country after the last people from the recent outbreak have recovered from the virus, Health Minister Chris Hipkins said today. “This is a big milestone. New Zealanders have once again through their collective actions squashed the virus. The systems ...
    BeehiveBy beehive.govt.nz
    2 weeks ago
  • Clean energy upgrade for more public buildings
    More public buildings will be supported by the Government to upgrade to run on clean energy, the Minister for Climate Change James Shaw announced today. Minister Shaw announced that Lincoln and Auckland universities will receive support through the Clean-Powered Public Service Fund to replace fossil fuel boilers. Southern, Taranaki, and ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Schools back donations scheme for the second year
    More schools have opted in to the donations scheme for 2021, compared to 2020 when the scheme was introduced. “The families of more than 447,000 students will be better off next year, with 94% of eligible schools and kura opting into the scheme,” Education Minister Chris Hipkins said. “This is ...
    BeehiveBy beehive.govt.nz
    3 weeks ago
  • Ruapehu cycle trails gets PGF boost
    The spectacular Mountains to Sea cycle trail in Ruapehu District will receive $4.6 million in funding from the Provincial Growth Fund for two additional trails, Regional Economic Development Minister Shane Jones announced today. “This is an exciting development for the local community, and one that will provide significant economic opportunities ...
    BeehiveBy beehive.govt.nz
    3 weeks ago