Treasury – Labour left us in good shape
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- Date published:
12:23 pm, December 5th, 2008 - 17 comments
Categories: economy, labour, national/act government -
Tags: treasury
Treasury’s briefing to Bill English as the new Minister of Finance must’ve pissed him off big time. Aside from the expected ideological burp (already covered in depth by No Right Turn) it reads like a long list of Labour achievements and calls on National is reign in its irresponsible promises. Here’s a taste of some of the key points of the current state, and what’s neeeded:
– Past macroeconomic policies have put New Zealand in a reasonably strong positions to weather economic shocks.
– Significant fiscal stimulus is already in train.
– Maintain a level of government savings which overall keeps gross debt at around 20%.
– Moderate expenditure growth in key spending areas, such as health and justice.
Treasury is saying to the National/ACT government, hold on – Labour’s tax cuts are the right amount of fiscal stimulus. Hold off on National’s plan, it’s an irresponsible step too far. Labour over nine years has reduced debt, put NZ in a fiscally sound position, increased savings through KiwiSaver and the Cullen fund. By turning their back on all those things, National and ACT are putting all this at risk. All we can do now is hold our breath and see how bad it gets.
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I believe treasury also recommended that we move to tax rates of 10, 20 and 30%, which is far from what Labour had us down for.
E: Ah, so that’s your idealogical burp. I would personally say anyone who thinks NZ is well suited suffers from idealogical diptheria.
Your capacity to take things from a report and twist them is somewhat admirable. Though you surely must have been smoking something since you deliberately forgot about personal tax cuts to be more in line with business taxes.
Pity about that whole housing bubble that hasn’t finished bursting yet.
In fact the more I read treasury briefings the more I think you made up your post on the spot.
The government is rich and the people are poor.
Again a transparently biased post on this site. Like I said with the post on carbon emissions from the farming industry, you really need to address the obvious issues in your posts if you actually want to be taken seriously. I’m talking about the tax structure that the treasury advised that caps the highest personal rate at 30%, as well as the capital gains tax that Labour was also affraid of introducing (would have put the cap on the housing bubble quite nicely though). You don’t even mention these issues which are clearly against what Labour intended, while trying to twist the report as being extremely pro-Labour.
For the record, I voted Labour and Jim Anderton, so don’t called me a “whinging rightie” like you have done to other detractors.
They’re just trying to avoid talking about the ACC fallout.
What ACC fall-out???????:)
Books are in bad shape with blow-outs still to be found.
Lathanide, I think that’s what the reference to the ‘ideological burp’ and the link to NRT was about. This post covered a different angle of the report that hasn’t really been touched on in the media. You should read the posts properly.
In good shape?
reminds me of a very old joke. Fat man is told by his doctor that he needs to get in shape.
He replies, “In shape, I am round. Round is a shape.”
You mean the policies that are largely vilified here?
Moreover, Labour has got off scot-free from leading NZ into a recession before the global credit crunch.
Sorry Eddie, but you’ve scored an own goal here.
I’m happy to talk about National’s ACC scaremongering but IRish covered it so well yesterday there’s little to add.
the govt’s books may well be in relatively good shape but do not forget that that is at the expense of the taxpayer, who is in relatively poor shape.
i wish i could simply legislate money into my coffers too.
Kiwiblog has the exact opposite spin on this. “Spin” is the correct word because DPF is referring to predicted future events and trends and suggesting that Labour is responsible for these. The “decade of deficits” is a similar example of spin.
The righties cannot deny that the books are currently in good shape. Overall debt is well down and the Cullen Super Fund is up and running. Kiwisaver is also there.
The “9 years to give a tax cut” is a further example of spin and frankly dishonest. Last year saw significant cuts to business taxes and Working for Families is in effect the biggest tax cut that a working family could ever expect to get.
And all of this happened at a time when the quality of Government Services was improving.
Can someone tell me how Labour is responsible for overseas financial events. It appears to me that the effect on NZ has to date been relatively modest and you can thank Cullen and Co for this.
SP the “ACC scaremongering” post appears to have run out of arguments from the Left. You’re welcome to add some more arguments there if you can think of any and sustain the argument, but depicting the argument as convincingly won by left-wing posters is a bit, ummm, optimistic. Even IB had to retract his claim that the Earners account wasn’t in trouble.
Tim Ellis,
as mentioned previously you – (and others of the same mind) – have a decided tendency to deal descriptively with a perceived state of affairs or position.
And as previously mentioned by myself in the ‘spinbusting’ thread, none of the above including your good self appear willing meet the real question of over-valuation/s that have come to abide in the provision of services such as are required for ACC..
So.. why not invite all contributors here to ‘extend’ the argument in much-needed reality terms.. instead of mere perceptions..
http://www.3news.co.nz/Politics/TheBeehiveWatchdog/tabid/961/Default.aspx
The watchdog report on National’s promises – is that list an accurate analysis of what they have promised, with no clever twisting or changing of words? In other words, is the above site trustworthy?
Thanks