This week, the government announced plans to sell off some of its (our) assets to avoid incurring further debt.
We weren't surprised. It's National. We were surprised, however, when PM John Key showed up to Campbell Live on Tuesday night to discuss it. Where were the cat stories we've come to know and love? The rust in the baked beans tins? But we listened. And, while attempting to separate the gist from the *hits top lip with index finger, making 'wibuwibu' noise*, heard JC ask JK if perhaps tax cuts should not have been implemented, and JK answer "They paid for themselves with the rise in GST".
And: scene. Thank you. After months of crying "All New Zealanders will be better off", Key finally admits that every time we all pay that extra 20c on the milk, we are paying for the likes of Mark 'Eat-me' Hotchins to stay one more night at a resort of which most of us will never get within spitting distance. And what are we going to do about it? Nothing. Why? Because we have a collective short-memory, and a crippling case of lethargy. How else was Bob Parker re-elected? When tax cuts and a GST increase were announced, we knew it was a reshuffling of finances by National to thank the top tax bracket for their support, and ensure that support continues. And now that has been confirmed, what can we do about it? It's done.
As for selling off assets that actually bring in revenue... Let's look at how well that worked for Auckland when we sold our bus company. Sure, Stagecoach pays its drivers so little they can barely support themselves, let alone their families. But we didn't have to cancel Christmas In The Park, and that would have been a real tragedy. And let's be honest, if we don't agree with it, it will happen, and come election time we'll have forgotten about it already. So really, who's to blame? The monkey with the gun, or the muppet who gave the gun to the monkey? Have your say. I dare you.
Hi Dorothy. Long-time reader; first-time poster. Just thought I'd post my two-cents.
ReplyDeleteFirst things first, I find it interesting that in your first paragraph you conveniently include a reference to the collective ownership of state assets, but do not seem to make any effort to recognise the burden that increasing debt would place on the average New Zealander. If (our) assets are kept, they will, under the budgetary position left to us by successive Labour governments, need to be funded by (our) debt. (Our) debt obligations must, in turn, be met by New Zealanders. And there's only so much New Zealanders can take under the current economic climate.
Next, your comments on the tax reshuffle. It was never a secret that the change in the income tax and GST rates were linked. Refer to all the suggestions made by the recent Tax Working Group - and very sensible suggestions at that. Lower income tax rates and higher consumption tax rates lead to increases in investment in productive enterprise and less investment in junk at The Warehouse and Supre.
These changes did not hurt the poor one bit. The poor were compensated for the change regardless of how they 'earn' their living - there were corresponding income tax cuts for those in work, corresponding pension and benefit increases for those not in work and so on*. And as we go up the income scale, sure, those who earn more saw a greater benefit in dollar terms. That's just what happens when you deliver tax cuts under a progressive tax system. But you can't go hating on rich people (I note you use Mark Hotchin as an example, presumably because he typifies all rich people) just because they see more of a tax cut under this system - see specifically the example in this article: http://www.scoop.co.nz/stories/BU0508/S00377.htm
* I have seen some anecdotal evidence of prices increasing by more than the GST rate change (usually media reports of businesses 'capitalising' on the rate change). While it is arguable in the short term that a corresponding income tax cut would not compensate people for this change, supply and demand will naturally correct this problem.
Great piece Dorothy, and I agree with your points 100%. This nation has become lazy and apathetic. I really don't know how John Key maintains his popularity. People seem suckered in by his celebrity smile. Kiwi's are more like goldfish than sheep, once round the fishbowl and we've all forgotten the National Government has ripped us off. Again.
ReplyDeleteI'm just hoping that in the next election people actually remember that the man has no memory, no sense of 'the people', the greasy smile of a used-car salesman and his breath smells like the Round Tables arse!
DeleteA country can not be run in the same way as a business.
Of course it's very convenient that Labour people forget the amount of asset sales that Phil Goff oversaw, or indeed the Labour party undertook.
ReplyDeleteTwo wrongs don't however make a right.
And what else everyone seems to be forgetting is that we only have capital intensive infrastructure left.
Oh the list, which isn't that up to date looks like this
http://www.treasury.govt.nz/government/assets/saleshistory
and that would be Sales of Total value:
$9,490 millions for Labour and $9,343.5 for National