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NZ deserves better than budget lies

Written By: - Date published: 10:34 am, June 10th, 2011 - 80 comments
Categories: budget 2011, jobs, john key, making shit up - Tags:

The Budget is unraveling at a startling rate of knots. Bill English is floundering to explain his dodgy asset sales numbers that don’t count lost dividends, sale costs, and foregone capital growth, not to mention a billion in unallocated cuts, and the gap between his revenue projections and IRD’s. Now, a senior minister has admitted that John Key’s claim that “there are 170,000 new jobs being created as a result of this Budget” is a lie.

The jobs claim began to come apart earlier this week when Jacinda Ardern pointed out that 35,000 of the jobs that are supposedly a “result of this budget” actually already exist. You see, the 170,000 figure is the projected job growth between March 2010 and 2015. The forecast job growth over the coming four years is actually lower than the four year projection in budget 2010.

Then, Key admitted that 170,000 jobs over five years is actually just the trend rate of job growth – 35,000 per year. Nothing special at all. So why was he skiting about it? Indeed, under Labour, job growth averaged 47,000 per year for nine years (source: Statistics New Zealand’s Infoshare).

Ardern kept chasing Key, asking him which budget initiatives would be creating jobs:

Jacinda Ardern: Which of the three initiatives he listed yesterday as contributing to the creation of 170,000 jobs will have the biggest impact: interest rates, national standards in primary schools, or early childhood education?

Rt Hon JOHN KEY: I would not want to make a prediction as to which one of them, but all of them will make a difference.

Hon Members: Ha, ha!

Jacinda Ardern: Is the job growth number of 170,000 based solely upon the job growth trend of the past 20 years, as he stated yesterday; if so, is that an acknowledgment that his Government has provided no new initiatives to support business, or anyone else, to contribute to job creation?

Rt Hon JOHN KEY: No. Treasury put together the job-growth prediction numbers.

The final nail went into the coffin of this ‘jobs Budget’ myth yesterday when Acting Economic Development Minister David Carter in select committee admitted that there was no analysis on how the budget would be creating jobs and:

“Bear in mind the Government hasn’t said it will create the 170,000 new jobs – the budget said there will be 170,000 jobs”

When challenged to explain which sectors the new jobs would come from, Carter said the “booming primary sector”. The problem is, the primary sector only employs 163,000 people (source: Statistics New Zealand’s Infoshare). Can’t see that doubling in four years, can you?

Hmm. So we started with Key screaming for the cameras that:

“there are 170,000 new jobs being created as a result of this Budget”

and three weeks later the lie ends with a whimper from a minister tucked away in select committee that:

“the Government hasn’t said it will create the 170,000 new jobs – the budget said there will be 170,000 jobs”

We actually really do deserve better than this.

– Bright Red

80 comments on “NZ deserves better than budget lies”

  1. Colonial Viper 1

    This Government is the same as many across the western world now: colluding with corporate and banking interests to serve the elite, against the interests of the vast majorities of their people.

    And yes sir, this wealthy beautiful country deserves way way better than this incompetent neoliberal lot.

  2. vto 2

    As posted a week or so ago – it is time that government was subjected to the same standards as in the Fair Trading Act. That is, no “misleading and deceptive conduct in (government)”.

    Bloody deceitful bastards.

    • Colonial Viper 2.1

      I personally think having Government leaders subject to courts-martial would be more appropriate.

      • Draco T Bastard 2.1.1

        Should definitely start to look to rehabilitating the charge of treason. Nothing this government has done should be considered anything less.

        • marsman

          Been having the same thoughts. They are a treacherous bunch, anti NZ and pro foreign corporates and let’s face it, some of those corporates are the country’s enemies.

          • Colonial Viper

            Watch Max Keiser for more examples of politicians committing treason against their own peoples.

            • marsman

              Wonder why we have a former Wall St banker as PM ? Less fuss I guess when we get to be the next Greece.

            • Drakula

              I say line them all up against a brick wall and I will read them my poetry for fifty years. If you put them to death, yes you will end our misary but you could always give them eternity of rest.

              I mean really does hell exist? It’s a great idea and I know exactly where Mr. Key would be accommodated in Dante’s Inferno but after all it was all considered ‘Divine Comedy’.

              In the case of this lot ‘Profane Comedy’.

    • PeteG 2.2

      Should that apply to blogs too vto?

  3. Afewknowthetruth 3

    Lying features prominenetly in the job description for a PM, so I cannot see why people get upset when it happens.

    The real pont is, the monetary system and the economic system are founded on lies, so anything said or done within the framework of mainstream economics is a lie.

    We might deserve better but we won’t get better as long as people support dysfunctional economics.

  4. Peter 4

    TVNZ May 11

    “The economy will create up to 170,000 new jobs over the next four years, the government said today as part of its Budget announcement.”

    Presumably the 17000 includes replacing people who leave a job for another. So they are not talking about additional jobs, or are they?

    • Policy Parrot 4.1

      The economy will create up to 170,000 new jobs over the next four years”.

      Wow, I didn’t realise the Nats were that pessimistic about their election chances in November. Only a Labour-led government could ever deliver that kind of job growth.

  5. queenstfarmer 5

    There’s no inconsistency between the PM’s statements. He is correct that the Govt won’t (and shouldn’t) create jobs. But it does seem that the Govt has taken a leaf out of President Obama’s playbook in making rather “optimistic” projections and “creative” calculation techniques (to put it at its mildest) for getting there.

    • Peter 5.1

      He believes he is creating an environment for job growth via the Private Sector. When, who, how and why are not his concerns apparently.

    • McFlock 5.2

      So now the tories are blaming Obama for Key being a lying prick?

      Funnily enough I recall PM Shipley being equally creative when unemployment reached massive levels, desperately repeating “the market will correct itself”. But then she might just have been stupidly parroting treasury advice, rather than being comlicit in the lie.

    • Draco T Bastard 5.3

      He is correct that the Govt won’t (and shouldn’t) create jobs.

      No, he isn’t. It’s the governments job is to look after the people of NZ and that means creating jobs when necessary rather than leaving it to the market which only ever produces more suffering as more wealth is channelled to the few.

      • ZeeBop 5.3.1

        Surely the type of jobs that National are waiting to return, destroy the environment,
        or at best just create activity on markets for wonks to make money off.
        The jobs we need are in services for each other, as opposed to debt creation
        for bankers.
        There is a huge untapped productive industry waiting to be had, its called
        environmentalism, where people profit from find ways to do more from less,
        better ways to use energy, and arrange society.
        But still when you look at the roads, I see cars with a single occupant, the driver.

    • Colonial Viper 5.4

      There’s no inconsistency between the PM’s statements. He is correct that the Govt won’t (and shouldn’t) create jobs.

      If the private sector refuses to or is unable to create the jobs needed to maintain people in useful, productive roles in society, the public sector shall.

      • side show bob 5.4.1

        “The public sector shall”, how, who’s going to pay them. Meaningless words. You can’t have a public sector without a strong private sector. Of course we could all work for the public sector and we know what that is called, is that what you are really promoting?

        • Jim Nald

          Yup, the private sector is our saviour and we’re waiting for the private sector to manufacture our next messiah. We should all work for the private sector and shrink the public sector as much as possible. We should also get the public to bail out and underwrite more of the private sector that is so very indispensable to our lives.

          • side show bob

            Yes Jim quite correct I await our next messiah to spring forth from the public sector, Tui add . I have nothing against the public sector, some of my best mates work in the public sector but the public sector are as dependent on the private sector as the private sector is dependent on them. For viper to say the public sector “shall” is rather naive. Like it or not we need both but I would point out that the private sector has to provide for both. The government doesn’t pay the bills so the government are but an illusion, the citizens pay the bills. If the citizens do not have the wealth to pay the government the whole system goes belly up.despite Vipers generous offers.

        • McFlock

          Hey, sideshow – the necessary existence of X does not imply the exclusive existence of X or the non-existence of Y. Try drawing some venn diagrams, if you have mastered basic geometry.

          Of course, you might not be able to handle such simple logic, and we all know what that is called, is that what you are?

          • side show bob

            McFlock obviously I’m in the presence of an intellectual giant. If you can make a living drawing “venn” diagrams all power to you man. I’m afraid my logic is rather simple, I get up, I work but if you think Venn diagrams can save me from this burden I’m all yours.. Maybe you should take your X +Y and your Venn diagrams to the government, do the country a favour lead us into geometry heaven.

            • Colonial Viper

              FFS you should have learnt about Venn diagrams by Year Five of primary school. If you got that far.

              If you can’t conceptualise that far how on earth are you going to be able to conceptualise appropriate delineations between the public sector and the private sector?

              • side show bob

                Afraid not Viper just went to school to eat my sandwiches. But there is one thing I can conceptualise, the dribble that passes for informed comment on this site. Tell you what I’m happy to compare our balance sheets, you game, lets conceptualise them.Oh and mine will also have donations made.Just in case you don’t believe I’m “paying my way”.

                • Colonial Viper

                  Tell you what I’m happy to compare our balance sheets, you game, lets conceptualise them.

                  You’re one of those assholes who thinks that US$500K is a lot of money, aren’t you?

                  Don’t make me giggle, go back to school.

              • McFlock

                O. M.G.
                Ladies and gentlemen, I present to you the John Key supporter!

        • Draco T Bastard

          You can’t have a public sector without a strong private sector.

          You’ve got that the wrong way around. In fact, the private sector wouldn’t even exist without the government setting the rules and regulations that allow it to exist.

          …who’s going to pay them.

          The government. That is, after all, what taxes are for. But even then, that is incorrect as all the resources of the country belong to its people and so it’s just a question of re-prioritising the distribution of those resources. Of allowing the private sector more or less of those resources and, if they aren’t doing anything with them when they already have them, to take them back.

          • side show bob

            “Who’s going to pay”, the government. Whether the countries resources are not divide up correctly, according to your good self is in material.The country doesn’t have the resources, full stop.Of course you could take more and more but history has shown that this will only lead to total disaster but then your not big on history, are ya..

            • Colonial Viper

              Whether the countries resources are not divide up correctly, according to your good self is in material.The country doesn’t have the resources, full stop.

              you’re an idiot.

              Here, you are pretending that money is a “resource”. its not.

              Its shit printed out of a printing press by the US federal reserve.

              Its free and you can create as much of it out of thin air as you want.

              In the last 3 years the US Government has printed US$600B of brand new money out of thin air. Investment banks then took this fiat money and created tens of billions of brand new bank cash with it, also out of thin air. See how bloody easy it is, dickhead?

              • side show bob

                I never pretended money is a resource, you have. Where have I said that printing money is answer to all our problems? The US can do what they like till the dollar is dropped as the base international currency. They’re the biggest kid on the block but of course it’s all going to end in tears.If you believe NZ could possibly pull the same stunt then perhaps you should talk to McFlock, he’ll have one of those precious graph’s that says it’s possible.

                • Colonial Viper

                  So your statement: “The country doesn’t have the resources, full stop.” is a lie.

                  Thanks for clearing that up.

                  • side show bob

                    No Viper but I’ll think you’ll find that most in this country won’t be to thrilled to live on the generosity of food parcels alone.. Please enlighten me on how you will placate the the masses when they realise it’s all an illusion for that sir is all it is.We can quite easily feed millions but we can only produce so much wealth in doing so. If our dollar was say only 60cents to the yank dollar the country would be rolling in clover, it isn’t.. Things will only get worst as the American dollar declines and sharing the wealth is but but a catch phrase.

                    • Colonial Viper

                      You’re an idiot for thinking that everyone in this country can own a 500 square metre mansion and drive a V12 beamer.

                      And there you go on about dollars again as if its some kind of resource.

                      It’s not. Who gives a shit if the US dollar disappears into a big hole. It doesn’t embody any real wealth or it couldn’t do that in the first place.

            • McFlock

              Doesn’t have the resources? We’re not the freaking Sudan – we’ve got a pretty benevolent climate (if we use the land right), pretty substantial mineral reserves (not all of it under schedule 4 land), a massive EEZ, a low population density, but all of that – which other nations would kill for – is infintesimal compared to our intellectual resources. Something like the highest per capita number of patents, an educated population and resourcefulness. All THAT needs is regular investment in education and R&D by the government and the world is our oyster. Oh, and we’re not in a freaking war zone.
              For NZ to plead poverty is a fucking disgrace. But tories love to claim we have no resources because it supports their TINA argument for strip mining Mitre Peak, deep-well oil spills washing up in the Coromandel and turning our economy into the Mexico of Australasia. Piss off.

              • side show bob

                Hay no argument from me McFlock you dead right but you fail to see our countries real problem. SOCIALISM. I’m all for being my brothers keeper but I’m afraid most of us now are our brothers slave.. This country his paid to many to do to little for to long. The country is like a drug addict and the drug of choice is someone else will pay. Bad news guys someone else no longer exists.

                • McFlock

                  Oh so the country doesn’t have a resource problem at all? Well then, I guess your latest argument against NZ’s anaemic form of “socialism” was a bit of a fib.
                  Nice run of bumper stickers there – pity you have nothing to back it up. “Our brothers slave”? On what freaking planet? In this country we now don’t give a shit if our brother drops dead on a hospital waiting list. “Socialism” my arse.

                  • side show bob

                    Not at all McFlock, we mostly want the same thing our problem lies on how to achieve “that thing”.You and your brethren believe in socialism I believe in capitalism. You will claim capitalism is the root of all evil I will say the converse. The point remains you want an all caring sharing society. I would maintain that given human nature this is not possible. The lefts catch cry is all must pay their share, Who determines what a fair share is? Why should someone like
                    I who works seven days a week 350 days a year pay more to someone who can’t get out of bed to scratch their arse. I have no problem paying for someone who needs hospital treatment but if the left believe the answer is to take more and get less they are in noddy land.

                    • McFlock

                      Don’t malign all human nature just because you’re a self-centred prick.
                      So now your a socialist for hospital treatment?
                      What about the couple who by chance have a severely disabled child? So they can’t work 7/52? And can’t afford a teaching assistance to sit beside the child in class every day of their schooling?

                    • Colonial Viper

                      The only people taking more are the big banks, the already extremely wealthy and foreign investors.

                      Did you miss the news that CEOs got average 14% pay increases while workers got sweet FA?

                      And time to ensure all workers get a living wage.

                      Next step after that: ensure that everyone can make a living wage working just 4 day per week.

                      (I know I shouldn’t feed trolls like Sideshow but its so much fun!)

                    • ianupnorth

                      Bob – where is the mythical ‘I’m all for being my brothers keeper but I’m afraid most of us now are our brothers slave.. This country his paid to many to do to little for to long. The country is like a drug addict and the drug of choice is someone else will pay. Bad news guys someone else no longer exists.’


                      We are near the bottom of the table for welfare paid as a percentages of GDP; but conversely those countries like Belgium, where income tax is considerably higher and the welfare paid is much higher, have 2000 more prison in-mates despite having double the population; their classes in their schools have approx. 4 less per children, their child abuse stats are half of NZ’s, their infant mortality is far less, they spend 25% more per capita on health than NZ.

                      If you go for a low tax model it is proven that you deprive those in need from the things that actually improve the well-being of the whole country. If you remove safeguards you create other problems.

                • prism

                  side show bob – Sounds like someone you know has some problems and keeps trying to borrow money from you. Just because of a few people you know of that aren’t a good example of reliable NZs doesn’t form the basis of sensible policy making.

                  • side show bob

                    Sorry prism no one borrows money from me, most have more then enough of their own but if anyone asks I’m more then happy to “share the wealth”, hay I’m getting good at this. Never make a lefty they prefer to take.

                    • Colonial Viper

                      Sorry prism no one borrows money from me, most have more then enough of their own

                      Talk about ignoring poverty in your own neighbourhood.

                      Half of all NZ’ers live on less than $29,000 p.a.

                      You’re just living in elitist aristocratic la-la land.

                    • RedLogix

                      Wouldn’t touch ‘your’ money mate. It would come with too many stickies attached.

                • Colonial Viper

                  fail to see our countries real problem. SOCIALISM. I’m all for being my brothers keeper but I’m afraid most of us now are our brothers slave.. This country his paid to many to do to little for to long.

                  More Right Wing idiocy: the elite who hold all the power and wealth in this country blaming the peasants and wage serfs for being the problem.

                  What a moron. Time for you to get put up against a wall.

                  • side show bob

                    Thats all right Viper spit your venom it doesn’t change a thing. I take it I’m one of the “powerful and wealthy” now, love it. I’ll give you my bank managers email, can you inform her of my new status, she will no doubt be highly amused. And why on Gods green earth would you want to put me up against the wall, bloody hell man who’s going to feed you in the morning “duh”. You really should ease off those old commie propaganda clips, shit you might actually hurt yourself one day, you do know what end the bullet goes in, do you?

                    • side show bob

                      ianupnorth. Sorry can’t answer for Belgium. But if Belgium is the be all and end all why don’t all the countries in the world model their system of government off their example?. It’s all so easy to quote figures but I doubt they would have any relevance to our neck of the woods but of course you would know this.

                    • McFlock

                      lol – what’s so weird about Belgium’s government? That it’s a bicameral federal model, or that it’s a constitutional monarchy?

                  • McFlock

                    “Time for you to get put up against a wall.”
                    Being hanging around KB a bit much, CV? Getting close to the flipside of “beni scum”, there, IMO.
                    Besides, everyone knows socialists have re-education camps, not walls. Although “re” would be giving ssb a bit much credit.

                    • Colonial Viper

                      🙂 Well, when I said “up against a wall” I meant just as you do when give a child a “time out” for bad behaviour.

                      What could you have been thinking I meant? 😉

                    • McFlock

                      Ha – guess who doesn’t have to deal with kids. 🙂
                      In that case could we bring back the dunce’s cap for ssb? 🙂
                      So much for the ” this will only lead to total disaster but then your not big on history, are ya..”. I’m sure this is what the Reader’s Digest called “picturesque speach”.

                    • side show bob

                      Oh please the socialist reeducation camp, oh please., what fun. I heard they are opening a branch in Disneyland.. Do you think you can “re” fer me. Someone with you elite academic skills will soon bring me right…..oops sorry left..

                    • Colonial Viper

                      It’s pointless for Lefties to keep trying to “convert” Right Wingers. Its a waste of time and energy.

                      The re-education camp is simply to keep you out of the way while we do real work.

                    • McFlock

                      Didn’t you get the latest Red Terror memo, CV?
                      It turns out that “re-education camps” for folk like ssb have existed for the past 50 years – they’re called “playcentres”

                    • Colonial Viper

                      Do they teach set theory in these “playcentres”? 😀

                    • McFlock

                      Covered in week three

    • Bunji 5.5

      Have we forgotten the job summit and the cycleway queenstfarmer? Key was all about creating jobs then.

      Just because he failed doesn’t mean he gets to rewrite history and say he wasn’t trying…

      • Colonial Viper 5.5.1

        Then there’s all the jobs from that flash new fangled Financial Hub our PM John Key wants to use to turn NZ into the success which is Ireland.

  6. tsmithfield 6

    When challenged to explain which sectors the new jobs would come from, Carter said the “booming primary sector”. The problem is, the primary sector only employs 163,000 people (source: Statistics New Zealand’s Infoshare). Can’t see that doubling in four years, can you?

    The primary sector may not increase by 170000 jobs. However, you forget about the velocity of money through the economy. For instance, expanding dairy farms will be spending money with engineering firms etc on plant and equipment. The engineering firms have to employ more people and so it goes on.

    • Colonial Viper 6.1

      Screw the velocity of money through the economy, the Govt didnt give a shit about that or the multiplier effect when it gave rail jobs from South Dunedin to China so it doesn’t count here either.

    • Draco T Bastard 6.2

      I’m quite aware of the velocity of money through the economy and how over accumulation by the rich actually slows it down eventually causing a recession.

  7. ianupnorth 7

    Sideshow – are you really that dim? Do the hospitals not buy drugs, fuel, power, equipment – yet hey are largely in the public sector… Oh but wait, schools don’t assist the private sector – they must grow their own books, IT, generate their own power.

    Every Ministry has incredible buying power – we aren’t quite Cuba mate

    • Colonial Viper 7.1

      and this is without the massive implosion of large private sector firms over the last few years, many of which have needed (contrived) to be saved by the public sector to the tune of hundreds of billions of dollars.

      Talk about ungrateful.

  8. lefty 8

    Take a look at our economic history. The provision of national infrastructure such as electricity, roading, telecommunications, health, education, railways, shipping and airlines was done by government.

    Then look at our industry. Forestry was planted by government and the first large scale mills built by them.

    Farming was heavily subsidised with rehab loans, state advances loans at low interest rates, marginal lands loans at low interest rates, ballots for farms developed by the Department of Lands and Surveys, research and development done by the DSIR and given free to farmers and free education provided by Massey and Lincoln universities.

    Tourism was developed in remote locations by the government owned THC hotels being built and the Ministry of Works putting in roading.

    Banking and financial services were developed by a government owned bank.

    Our housing stock was brought up to scratch by the huge state house building programme.

    Government departments provided apprenticeships and training to build the skill of our workforce.

    And so it goes through the whole economy.

    What is it the private sector is supposed to have achieved?

    • Colonial Viper 8.1

      What is it the private sector is supposed to have achieved?

      They stole most of the above for a song and diverted the assets and money streams to a few, mainly foreign, shareholders.

      That’s an achievement that they still seem proud of.

  9. Craig Glen Eden 9

    Says it all really Lefty and thats coming from a Managing Director of a private company.

    These right wingers shit for brains!

  10. RedLogix 10

    Just in case anyone missed it, here is Brent Edwards (RNZ) making a total dolt of both Key and Blinglish on this evening’s on ‘Focus on Politics’.

    English is shown up for the lying shit he is, his excuses are weak and evasive and he contradicts his own boss Key who if anything comes across as even more idiotic than he is.

    That sound you hear is wheels all falling off at once.

    Cunliffe by contrast gets in repeated king hits. He keeps getting better everytime I hear him.

    • Draco T Bastard 10.1

      Hate the RNZ web site. Can’t find the program you mention and the .asx files never work.

      Huh, found it, it appears I made the mistake of using their search function.

      [audio src="http://podcast.radionz.co.nz/fop/fop-20110610-1836-focus_on_politics_for_10_june_2011-00.ogg" /]

  11. HC 11

    170,000 jobs being jobs like us delivering each other pizzas, cutting each other’s hair, cooking each other take-away food and delivering each other newspapers. Yes, the ideas of National and its main ally ACT are great stuff to really advance NZ, are they not.

    Well how many jobs will the primary sector produce, and how many will be seasonal, being for a few weeks picking fruit and grapes? Many of these jobs may just be that, if at all realistic.

    This government takes a dim view of value added production, science and development, and hence NZ will continue to be a largely low skilled, lowly paid and underdeveloped country that produces yet more logs and milk-powder and by doing so increases pollution, erosion and the destruction of our environment.

    We are on the best way to become a 3rd world country.

    • Colonial Viper 11.1

      Stop with the bulls’ eyes dude, you’re making my forehead hurt.

      • seeker 11.1.1

        Talking about foreheads -I have noticed that when John Key is telling porkies or about to tell them, his forehead wrinkles up just as in this post photograph.
        I thought, when I saw it again on Breakfast the other day, that he was trying for the Gordon Ramsay look it was so obvious.
        Watch for the ‘earnest’ forehead design when someone is about to be treated to a rather large amount of ‘trader sincerity’ or bullshit as it’s becoming popularly known.
        John’s forehead is a real tell I reckon, almost true Klingon for those who remember.

  12. Peter 12

    Forget the Hughes issue. Let the Right go to the gutter, as time goes on no one will be bothered. In fact most people by now don’t care. Focus on peoples self-interest – jobs, work, asset sales etc.

  13. ianupnorth 13

    Now here’s one way of looking at it http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10730596
    Especially from about the 6th paragraph onwards.

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