web analytics

National’s tooth fairy wishlist

Written By: - Date published: 5:40 pm, October 15th, 2011 - 13 comments
Categories: uncategorized - Tags:

National’s  election billboards focus on National’s “Brighter Future” plan. They read more like a wish-list for the tooth fairy. Bill board No 1 says “End the deficit sooner”. Sooner than what? This year’s budget projection? Not likely according to Brian Gaynor in today’s Herald story “Too optimistic government and treasury are getting it wrong.”

His comments are based on the recent release of the Crown financial statements and the Auditor-General’s report on Treasury’s management of the financial guarantee scheme. He says:

The Crown reported a Budget – or “operating balance before gains and losses” – deficit of $18.4 billion for the June year, up from a deficit of $6.3 billion for the previous year. The deficit has steadily increased over the three years of the current Administration. The previous Labour Government had nine consecutive annual Budget surpluses.

Gaynor says the National Government is popular “partly because Key and English are prepared to throw money at almost every problem.” This is not ending he deficit sooner – on the contrary:

The latest $18.4 billion deficit represents 9.2 per cent of gross national product – one of the worst amongst the 30 OECD member countries. Only Greece, Ireland, United Kingdom and United States have Budget deficit/ GDP ratios in excess of 9.2 per cent last year or this year. Deficits have to be financed through additional borrowing, and the Crown’s gross debt went from $53.6 billion to $72.4 billion in the year to June.

National’s tax cuts for the rich haven’t helped the escalating deficit.

The escalating deficit is caused by several factors, including static tax revenue, continued increases in Government spending and the Christchurch earthquakes. The individual tax take has declined from $27.5 billion in the June 2008 year to $23.1 billion in the latest year. This is mainly because of the Government’s tax cuts last year.

When it comes to forecasts, Gaynor has this to say:

Right-of-centre governments often run large Budget deficits because they overestimate the positive effect of tax cuts on the economy, and the Key Government is no exception. The Treasury also has a similar economic philosophy and made a 2011 year tax revenue forecast of $53.9 billion in last year’s Budget compared with the actual outcome of $51.6 billion.

In this year’s Budget statement, the Treasury forecast a Budget deficit of $9.7 billion for the year to next June, to be followed by a $4.1 billion deficit in 2013, a $700 million deficit in 2014 and a $1.3 billion surplus in the June 2015 year. Once again these forecasts seem to be far too optimistic but there will be another chance to assess the situation when the Treasury issues its pre-election economic and fiscal update on October 25.

The PREFU will be interesting indeed, but will it be fact or more fiction.

The fact that National has chosen to run a billboard series like this indicates that Labour’s criticism of its lack of plan may be hitting the mark. The one thing we can be sure of is that it will be poll-driven. Also that Labour’s plan for fairer tax combined with a careful approach to fiscal policy is connecting with voters.

Pollyanna John  promised a brighter future in 2008 – that hasn’t happened. Voters may well be starting to think that the same slogan is wearing very thin for a rerun in 2011, particularly when the facts don’t back it up and the future for the world economy does not look that bright.

13 comments on “National’s tooth fairy wishlist”

  1. fender 1

    It’s all part of Nationals plan to make it necessary to sell assets. No doubt they have promised their 1%er cronies the shares will be available to them soon. And when they do own them they will have us by the short and curlys more than they do at present. RISE UP VOTERS…SEE THROUGH THEIR CORRUPT PLANS…and get out there and spread the word, especially get in the ears of the elderly who seem to adore these robbers.

  2. ianmac 2

    Of course, should National win this year, they will do all those things hinted at such as sell assets because the Mandate will be claimed. Hints will be made and you will learn later that we were warned. The MANDATE is in the eyes of the conservatives.

    Reminds me a bit of the second Lange government. Softened up in the first term then Douglas Pebble MANDATE whammy from 1987 onwards.

  3. tc 3

    A debt situation architected by the nats for the nats own ends….to plunder more valuable public assets to their mates.
    ACC was another manufactured crises yet the MSM seem to forget the doom and gloom around a scheme they reported that’s now effectively giving rebates cause it’s all so rosy now…..what the !

    The nats have only ever had a few main thrusts….1. bash the bennes, oh don’t the rednecks in talkback land love it and the dog whistling value never fades. 2. nobble anything remotely socialist, KSaver, public transport, WFF, housing corp, DOC, ACC etc etc. 3.shift more wealth up the top end to your mates and backers via tax cuts and privatisation.

    Subverting due process, giving the state extra powers to watch the folk we don’t like, mucking about in local gov’t and the justice system to generally piss those civil liberatarian hippies off is a bonus.

  4. Dan1 4

    Strategic Deficit 101!!! Idealogues gone mad. The strategic deficit is needed to justify further cuts in the public service, and the sale of public assets.
    Surely the Rena disaster and Pike River are evidence enough that private enterprise does not regulate itself effectively. That is why we need a sometimes frustrating bureaucracy.
    Time to wake up NZ

    • DS 4.1

      Just wait until we get the Council sacked down here in Christchurch, and the Commissioners come in to sell off all our assets to some offshore retirement fund.

  5. Afewknowthetruth 5

    ‘Deficits have to be financed through additional borrowing, and the Crown’s gross debt went from $53.6 billion to $72.4 billion in the year to June.’

    All going according to the sabotuers plan then. Trash the economy, increase debt levels and increase the level of debt slavery, in line with the requirements of their overseas masters/accomplices.

    Keep the dumbed-down masses amused and distracted with rugby and beer in the winter and gas barbeques and beer in the summer.

    As I have said many times, the only brighter future we will witness is the one associated with the decrease in air pollution that accompanies the collapse of the industrial system [due to peak oil], and that one is particulalry scary, since it portends a surge in temperatures.

    And as I have also said on many occcasions, you’d have to be really stupid to believe a word anyone connected with National says.

    Unfortunately, anyone who corrects the lies on National billboards is likely to feel the full weight of the corrupt justice system, which permits monstrous lies to be promulgated by political parties and persecutes those who challenge them.

    Such is life in a money-lender empire.

    PS It must be time for another bailout for Greece, since Greece cannot pay the monthly interest on its debts. And best not to talk about Italy, Spain, Portugal, Ireland etc at all. Meanwhile the US has broken through its recently-negotiated $14 trillion debt ceiling and has unfunded liabilities of around $214 trillion. Not to worry: all senior bank officials around the world will get increased bonuses this year to allow for inflation.

  6. M 6

    Brighter future, my arse.

    To any NACT supporter I ask them are they feeling any richer these days given that most of them are only out for themselves and there is silence or a muted reply and ridiculous statements like “Well, he got the ball rolling on the cycle way.” Spare me. How many jobs was that again?

    Glad to say that in my neck of the woods most of the National posters are getting torn down time and again and one house has four massive Labour signs on it.

  7. Hami Shearlie 7

    When John Key said “Paint it Black” people didn’t realise he meant the economy!!!

  8. wocktu 8

    Its a wonder their not making more use of the word “Aspirational”. They seem to use it often when regurgitating party lines. Then they have a cheek to feel aggrieved when you call them damn lier’s to their face. Their policies aren’t worth the recycled loo paper they’re written on and anything they say is straight out of their little blue book of right wing dogma.

    • felix 8.1

      They didn’t want kiwis to figure out that “a brighter future” was only ever an aspirational goal.

      Too late though, Key’s bullshit is on the way out.

      It’s in the wind.

  9. Jan 9

    1 End the deficity sooner. What are the others? I’m picking More 100% Pure will cover off the environment!

  10. mik e 10

    Borrowins elections Bills English has now borrowed up to in excess of $77 billion now we are borrowing just so we can borrow more,Tax cuts for the rich $2.7billion per year times 20 years $54billion enough to pay a very substantial chunk of debt!

Recent Comments

Recent Posts

  • Report into Iain Lees-Galloway’s expenditure
    A report undertaken by Ministerial Services into Iain Lees-Galloway’s ministerial expenditure has found no evidence of any inappropriate transactions or spending. Ministerial Services undertook a line by line review of all his expenditure, including staff and spouse expenses for the period 1 January 2019 to 30 June 2020.  “I commissioned ...
    BeehiveBy beehive.govt.nz
    9 hours ago
  • Managed isolation charges to start 11 August
    Managed isolation charges for returnees will come into force from 12.01am Tuesday 11th August, after they passed their last cabinet milestone today, Housing Minister Megan Woods said. “The new charging system balances the rights of New Zealanders to return home and helps reduce pressure on the managed isolation and quarantine ...
    BeehiveBy beehive.govt.nz
    13 hours ago
  • Update on New Zealand and the Cook Islands travel bubble
    The Prime Minister of New Zealand Jacinda Ardern and the Prime Minister of the Cook Islands Henry Puna have welcomed the completion of phase one in the establishment of a travel bubble between New Zealand and the Cook Island. Negotiations on the text of an ‘Arrangement to Facilitate Quarantine-Free Travel ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • One-stop ‘jobs and training’ shop goes live
    The Government has launched a new online, phone and onsite service to help New Zealanders connect to a range of employment support and products for workers and businesses affected by COVID-19, announced Minister of Education Chris Hipkins and Minister for Social Development Carmel Sepuloni. Connected.govt.nz is a one-stop-shop for jobseekers, ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • MSD security guards to be paid Living Wage
    Security guards contracted to the Ministry of Social Development will be paid at least the Living Wage from next month supporting the Government’s commitment towards fair pay and employment conditions, announced Minister for  Social Development Carmel Sepuloni.   “MSD was  among the first government agencies to pay its employees the living ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • New strategy to ensure nature thrives
    The Minister of Conservation Eugenie Sage today launched Te Mana o te Taiao, the Aotearoa New Zealand Biodiversity Strategy - a way forward that envisions Aotearoa New Zealand as a place where ecosystems are healthy and resilient, and people embrace the natural world. “Many of New Zealand’s plants and wildlife species ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • Provider Languages Fund will support Pacific Wellbeing approach
    “Pacific languages, cultures and identity are essential to the health, wellbeing and lifetime success of our Pacific peoples and their communities in Aotearoa. The strength and resilience of Pacific Aotearoa is not only vital to their own prosperity but integral to the prosperity of all New Zealanders, and is particularly ...
    BeehiveBy beehive.govt.nz
    21 hours ago
  • COVID-19: More funding for schools and boost to construction sector
    ·       $38 million to help schools cover unexpected costs related to COVID-19 ·       $69 million upgrade for online learning ·       $107 million contingency funding to support school construction suppliers facing additional costs due to the lockdown. The Government is releasing $214 million from the COVID-19 response and recovery fund to ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Stay safe on the tracks – Rail Safety Week
    Despite the Government installing safety upgrades around the country, people should still take care around rail crossings, said Transport Minister Phil Twyford launching Rail Safety Week. Phil Twyford said installing safety infrastructure is crucial, but we are encouraging people to be more careful around trains too. “We’re making good progress ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Government backs Manawatū social housing project
    The Government is providing a cash injection to help Palmerston North City Council complete a programme to provide 78 social housing units for vulnerable tenants. The $4.7 million to build 28 units in the Papaioea Place redevelopment comes from the $3 billion set aside for infrastructure in the Government’s COVID-19 ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Major funding boost for Predator Free Banks Peninsula
    A pest free Banks Peninsula/Te Pātaka o Rākaihautū is one step closer with a $5.11 million boost to accelerate this project and create jobs, announced Conservation Minister Eugenie Sage in Canterbury today. “This is a game changer for this ambitious project to restore the native wildlife and plants on Ōtautahi/Christchurch’s doorstep ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Major investment for indoor sports in Hawke’s Bay
    A Government grant of $6.4 million will expand the Pettigrew Arena in Taradale with new indoor courts of national standard. “The project is likely to take 18 months with approximately 300 people employed through the process,” Grant Robertson said. “The expansion will increase the indoor court space up to 11 ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • New infrastructure for Far North tourist town
    The Far North tourist destination of Mangonui is to receive Government funding to improve waterfront infrastructure, open up access to the harbour and improve water quality, Infrastructure Minister Shane Jones has announced. A total of $6.5 million from the $3 billion set aside in the COVID-19 Response and Recovery Fund ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government remains committed to Women’s Cricket World Cup
    The Government has re-affirmed its commitment to supporting the hosting of the ICC Women’s Cricket World Cup, which the ICC has delayed from 2021 to 2022. “This is obviously a disappointing decision for cricket players and fans around the world and for the White Ferns and their supporters here at ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Green light for Te Awa River Ride in $220m nationwide cycleways investment
    Cyclists and walkers will now have a safer way to get around Taupō, Tūrangi, and between Hamilton and Cambridge, with funding for shared paths and Te Awa River Ride, Associate Minister of Transport Julie Anne Genter announced today. “The Te Awa River Ride is the latest part of massive growth ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Six major ‘shovel-ready’ cycleways funded in Christchurch
    Six major cycle routes will be completed in Christchurch thanks to funding from the Government’s investment in shovel-ready infrastructure as part of the COVID-19 recovery Associate Minister of Transport Julie Anne Genter announced today. $125 million will be invested to kick-start construction and fund the completion of the following cycleway ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • New Police facilities for Whanganui
    Plans are underway for a brand new state-of-the-art hub for Whanganui’s justice and social agencies, following confirmation the ageing Whanganui Central Police Station is to be replaced. Police Minister Stuart Nash has announced $25 million in new infrastructure spending to improve facilities for the wider community, and for staff who ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Relativity adjustment for Waikato-Tainui and Ngāi Tahu
    An adjustment payment has been made to Waikato-Tainui and Ngāi Tahu under the relativity mechanisms in their 1995 and 1997 Treaty of Waitangi settlements, Minister for Treaty of Waitangi Negotiations Andrew Little announced today. The latest payments to Waikato-Tainui and Ngāi Tahu are $2,700,000 and $2,600,000 respectively to ensure the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Auckland rail upgrades pick up steam
    Deputy Prime Minister Winston Peters and Transport Minister Phil Twyford today kicked off the start of the Auckland NZ Upgrade Programme rail projects which will support over 400 jobs and help unlock our biggest city. Both ministers marked the start of enabling works on the third main rail line project ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • PGF support for Wairoa creates jobs
    The Provincial Growth Fund (PGF) investment of $3.78 million in Wairoa will create much needed economic stimulus and jobs, Under-Secretary for Regional Economic Development Fletcher Tabuteau announced today. PGF projects announced today include: $200,000 loan to Nuhaka Kiwifruit Holdings Ltd (operated by Pine Valley Orchard Ltd) to increase the productivity ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Public and Māori housing to trial renewable energy technology
    Tenants in public and Māori housing may be benefiting from their own affordable renewable energy in future – a fund to trial renewable energy technology for public and Māori housing has today been announced by Energy and Resources Minister Megan Woods and Associate Minister for Housing (Māori Housing) Nanaia Mahuta. ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • $2.7m for Hokianga infrastructure
    Hokianga will receive $2.7 million to redevelop four of its wharves and upgrade its water supply, Regional Economic Development Minister Shane Jones has announced. Far North District Council will receive $1.8 million from the Provincial Growth Fund for the work on the wharves. “The work will include the construction of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • New fund to support housing and construction sector
    A $350 million Residential Development Response Fund is being established to support the residential construction sector and to minimise the economic impact from COVID-19, the Housing Minister Dr Megan Woods has announced. “The Residential Development Response Fund will help to progress stalled or at-risk developments that support our broader housing ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government investment to boost Auckland’s community recycling network
    As part of a broader plan to divert waste from landfill, the Government today announced $10.67 million for new infrastructure as part of the Resource Recovery Network across the Auckland region. “This key investment in Auckland’s community recycling network is part of the Government’s Infrastructure Reference Group ‘shovel ready’ projects ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Te Papa transformation starts at Cameron Road
    The Government is investing $45 million in the first stage of an ambitious urban development project for Tauranga that will employ up to 250 people and help the region grow, Urban Development Minister Phil Twyford announced today. Phil Twyford says the funding has been allocated out of the $3 billion ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Low-emissions options for heavy transport a step closer
    Getting low-emission trucks on the road is a step closer with investment in infrastructure to support hydrogen vehicles, the Energy and Resources Minister Megan Woods has announced. The Infrastructure Reference Group has provisionally approved $20 million for New Plymouth company Hiringa Energy to establish a nationwide network of hydrogen-fuelling stations. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New training centre to upskill workers
    A new trades training centre to upskill the local workforce will be built in the South Waikato town of Tokoroa through funding from the Government’s COVID-19 Response and Recovery Fund, Education Minister Chris Hipkins and Regional Economic Development Minister Shane Jones have announced. The Government will contribute $10.84 million from ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Subsequent children legislation to change
    The Government has agreed to repeal part of the Oranga Tamariki Act subsequent children provisions, Minister for Children Tracey Martin announced today. “There are times when children need to go into care for their safety – the safety and care of children must always be paramount,” Minister Martin said. “But ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Funding to expand mental health support for Pacific peoples
    A $1.5 million boost to grow primary mental health and addiction services for Pacific peoples in Auckland, Hamilton and Canterbury will lead to better outcomes for Pacific communities, Associate Health Minister Jenny Salesa says.  Pasifika Futures has received funding to expand services through The Fono, Aotearoa New Zealand’s largest by ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Funding boost for sustainable food and fibre production
    Twenty-two projects to boost the sustainability and climate resilience of New Zealand’s food and fibres sector have been announced today by Agriculture Minister Damien O’Connor. The $18m funding will deliver practical knowledge to help farmers and growers use their land more sustainably, meet environmental targets, remain prosperous, and better understand ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Mature Workers Toolkit launched on business.govt.nz
    Employment Minister Willie Jackson welcomes an initiative that assists employers to get mature workers into New Zealand small businesses. The disadvantages that older people face in the workplace was highlighted in the whole of Government Employment Strategy.  In order to address this, a Mature Workers Toolkit has been developed and ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Trans-Tasman cooperation in a COVID-19 world
    New Zealand and Australia reaffirmed today the need for the closest possible collaboration as they tackle a global environment shaped by COVID-19, Foreign Affairs Minister Winston Peters said. “In these challenging times, our close collaboration with Australia is more vital than ever,” said Mr Peters. Mr Peters and his Australian ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Pike recovery efforts now in unexplored territory
    The recovery and forensic examination of the loader driven by survivor Russell Smith means the underground team are now moving into an area of the Pike River Mine that has not been seen since the explosion, Minister Responsible for Pike River Re-entry Andrew Little said. “The fifth and last robot ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Government confirms CovidCard trial to go ahead
    The Government has confirmed a community-wide trial of CovidCard technology as it explores options for COVID-19 contact tracing. “Effective contact tracing is a vital part of the COVID-19 response,” Minister of Health Chris Hipkins said. “While manual processes remain the critical component for contact tracing, we know digital solutions can ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Enhanced process for iwi aquaculture assets
    The government is proposing changes to aquaculture legislation to improve the process for allocating and transferring aquaculture assets to iwi. Fisheries Minister Stuart Nash has introduced the Maori Commercial Aquaculture Claims Settlement Amendment Bill to Parliament. It proposes a limited new discretionary power for Te Ohu Kaimoana Trustee Limited (ToKM). ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Bill introduced to fix National’s Family Court reform failures
    The Minister of Justice has today introduced the Family Court (Supporting Children in Court) Legislation Bill – the next step in the ongoing programme of work to fix the failed 2014 Family Court reforms led by then Justice Minister Judith Collins.  The Bill arises from the report of the Independent ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • DOC takes action to adapt to climate change
    A new Department of Conservation (DOC) action plan tackles the impacts of climate change on New Zealand’s biodiversity and DOC managed infrastructure including tracks, huts and cultural heritage. Minister of Conservation Eugenie Sage says extreme weather events around the country have really brought home our vulnerability to changing weather patterns. ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Reduced international Antarctic season commences
    A heavily scaled back international Antarctic season will commence this week, Foreign Affairs Minister Winston Peters and Research, Science and Innovation Minister Megan Woods have confirmed. “Antarctica is the only continent that is COVID-19 free,” Mr Peters said. “Throughout the global pandemic, essential operations and long-term science have continued at ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • New high performance sports hub for Upper Hutt
    The Government is providing up to $30 million to help fund the NZ Campus of Innovation and Sport in Upper Hutt - an investment that will create 244 jobs. “The sports hub is designed to be a world-leading shared service for a range of sports, offering the level of facilities ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Govt keeps projects on road to completion
    Transport Minister Phil Twyford announced today transport projects currently in construction will continue at pace due to extra Government support for transport projects to mitigate the impact of COVID-19. To keep the $16.9 billion 2018-21 National Land Transport Programme going the Government has allocated funding from the COVID Response and ...
    BeehiveBy beehive.govt.nz
    5 days ago