The PM and the Minister of Finance are at odds on how the cost of rebuilding Christchurch will be met. Bill English thinks that the costs are too high to be met by cuts, and significant borrowing will be required. John Key wants to avoid borrowing and cover the costs with budget cuts. This disagreement is indicative of the Nats shambolic preparation for the road ahead.
Last week, John Key said that, due to the earthquakes, “from June to June, my guess is that we’ve lost $12 billion in GDP”. Later, he said it was $15b over 4 years due to the quakes. Now, Treasury says most of that $15b is from the recession Key and English had led us into before the quakes. The Nats are trying to use the quakes to hide their failings.
English on Working for Families cuts: “around 1,000 families earning over $100,000 receive WFF, and payments to those families total only $1.1 million … Taking higher-income families out of WFF saves very little money …
In this uncertain economic climate, we want to give all families certainty about their incomes”
Key says he didn’t know about the BMW purchase. Funny cause on Tuesday, English was taking responsibility: “we could go out and buy second-hand cars but one way or another cars need to be maintained”. The Nats try to blame Labour but the contract Labour signed says replacing the cars was optional without penalty.
8,000 more unemployed in Q4 2010, and 1,000 more on the dole in January; New Zealand headed to a douple-dip recession after a year of anaemic growth; an average wage rise in 2010 of 1.9% with inflation of 4%. And a government focussed on manipulating statistics instead of coming up with an economic plan.
By every significant measure our economy is a mess. Bill English is finance minister for what is looking increasingly like the most useless do-nothing NZ government in living memory. So is he working on a plan to put things right? Is he rolling out the big ideas that will get New Zealand moving again? No – he’s lashing out at public servants. Pathetic.
Blinglish is confident that voters understand the economy and back the government’s (lack of) direction. In fact he better hope that voters don’t understand the economy, or notice National’s lack of help to an economy shedding jobs and headed into double-dip recession, or he won’t get voted back in.
What’s to stop a government minister taking taxpayer money and giving it to, say, a family friend or a political slush fund? In theory, lots. There’s a formal budget-formation process through the ministeries and Cabinet, the Budget then has to be approved by Parliament, and the PM would sack any minister who tried such blatant corruption. Wouldn’t he?
The day before Christmas, in what will surely be a forlorn attempt to bury the story, Bill English’s office has finally relented after months of resistance and released under the OIA papers on how the unknown Pacific Economic Development Agency was awarded a $4.8 million blank cheque in the Budget. This looks serious.
Tax cuts don’t cause growth, and even some of the right wing commentators are starting to admit it. The Nats’ tax cuts aren’t “broadly neutral” either, and that is why the deficit is blowing out. National’s one and only economic policy is busted. Now what?
You not only can expect to be spied on more after an overhaul of the SIS, but you sure as hell shouldn’t be […]
National Bank has joined NZIER in estimating the economy shrank 0.2% in the September Quarter and all the projections say it’ll go backwards this quarter too. Bill English now admits John Key’s ‘rapid recovery’ isn’t happening. But he insists it’s coming – tomorrow, no, the day after for sure. We’ve just got to keep waiting…
Labour picked up on the statistics I revealed yesterday that show the median income of Maori has fallen 11.5% under National and the Pacific Island median income is down an astounding 19%. Kris Fa’afoi and Annette King put out press releases. Then King took the battle to Bill English in the House, who it seems is also a reader.
Bill English is always busy trying to put lipstick on the pig of our moribund economy. His latest attempt is to argue that we are experiencing a “savings based recovery”. There’s no such thing. He’s just making excuses for the fact that people have no money to spend, or are desperately trying to pay down debt in these uncertain times. Enough with the lipstick. Enough with the empty promises of jam tomorrow — National are never going to deliver.
National are continuing their privatisation by stealth. Hospitals services and a new prison are the current targets. Tony Ryall, Judith Collins and Bill English are the ministers currently pushing their ideology in their respective areas.
At the last election we chose tax cuts and unemployment instead of stimulus and stability – which was the more ambitious, high wage way to go?
National are not fulfilling their government’s core reason for existence: closing the wage gap with Australia. No, we’re fast going backwards on that score, and it’s predictable: high unemployment causes low wages.
In three short years John Key and National have gone from economic bravado, to failure, to lies, excuses and whining. As the economy languishes they will have nothing to offer except more lies and excuses.
This is a time for fresh thinking, both globally and locally. But we won’t get it from National.
Trying to get my head around the economic arguments going on. Hearing contradictory things. Who’s telling the truth? ls Labour’s new overseas investment policy Stalinism that will ruin the economy, as Key claimed on Monday and Tuesday? Or is the same as the existing law, as Key claimed on Monday and Tuesday?
This post isn’t about National cutting education at every level, which will damage our country for decades to come. Nor is it about how they’re cutting cost-efficient preventative medicine to fund ‘sexy’ elective surgery. It’s not even about how they’re pouring billions into holiday highways in the era of peak oil. This is about the Cullen Fund.
Different voice, same message: instead of Stephen Joyce or John Key, we now have Bill English saying that they don’t have any money for Public Transport. Just money for roads. They’ve been forced to commit to $1.5 billion of ongoing Auckland rail projects, and that’s all it’s going to get, thank-you.
Russel Norman asked Bill English about the economic impacts of coming oil shocks and how transport infrastructure planning takes them into account. I’m not sure which was more surprising: English’s matter-of-fact acknowledgment that peak oil is coming, or his attitude that the government doesn’t need to act because the market will sort things out.
Remember how John Key used to talk about GST? Here is a video reminding everyone of the past before he did his usual flip-flop to favour the rich while increasing costs on most people. The GST increase and the consequent inflation will make almost everyone worse off unless they are wealthy enough to bribe the NACT’s.
It’s worth having a look at Bill English’s performance on Q+A the other day. What’s telling, to my mind, is that English can’t present a real vision or even any spin-free information. Why not? Because his tax swindle is about taking from us and giving to the elite, and he can’t just come and say that.
The latest GDP figures are awful. the Reserve Bank had predicted 0.9% growth in the June Quarter. It came in at 0.2% – far worse than anyone expected and slower than population growth. The Key Government’s reaction? Deny there’s a problem and spin, spin, spin.
Bill English came pretty close to admitting that the Nats are “relaxed” about our current high unemployment. Phil Goff came out swinging…
Bill English is going to play more number games today to claim wages are rising. Actually they’re falling, they’re going to keep falling, and there are 100,000 extra jobless. We deserve a Finance Minister who does his job, not one occupying himself with statistical chicanery.
Contrary to the sunny prognostications of Nice Mr Key, job queues are getting longer. How much more great economic management from John and Bill can the country stand?
Parliament erupted in laughter yesterday as Bill English made up more ‘facts’ to attack Labour’s economic performance. Even if his accusations against Labour’s record were true, he doesn’t have any solutions himself. Indeed, the reason he is spending so much time trying to smear Labour’s record is he is desperate to make is own record look less appalling by comparison.
When John Steinbeck said “No one wants advice – only corroboration†he could well have been describing the numerous working groups the Government has established in many areas of significant economic and social policy. Too lazy to spend its nine years in opposition developing a detailed policy prescription, National now picks groups to tell it what it wants to hear.
After half a government term of insisting that NACT had an economic plan, it has been ‘misplaced’. The full plan, said by informed sources to have been found in a brief case (along with a pie and a men’s magazine) and written on the back of an old rental expenses claim form, reveals that the government expects significant economic development will be lead by the construction of a single national transport infrastructure, namely a National Cycleway.
Bill English claims that our low national savings rate is due to the ‘government paying for everything’. According to English, people don’t need to save because the government pays for early childhood education, superannuation, Working for Families, and interest-free student loans. Does he have any evidence that is the case? Of course not. The evidence points the other way.
Georgina Te Heuheu and Bill English have been saying the money allocated in the Budget to PEDA might go to some other organisation. That would be a huge abuse of the Budget process, whereby the Government asks Parliament for permission to spend money on specific activities. Of course, really the Nats are just trying to muddy the water as questions on PEDA continue.
Someone has been trying to shut down investigations into the PEDA slush fund. But the damage is already done, Nats are abandoning the sinking ship. Bill English is first overboard, leaving Gerogina te Heuheu stranded.
Bill English in the House yesterday: “In the Budget the projected wage increases exceed projected inflation.”
From the Budget: change in real wages over March 2011 year, -1.4%. change in real years in year to March 2012, -0.6%
Key’s assets are supposed to be blind to him. Before the 3 News report he claimed that they were blind. Now he is claiming something much much narrower (no “beneficial interest”). Why? We’ve been here before. Bill English claimed no “pecuniary interest” in his accommodation rort trust. The Auditor General found otherwise. Key’s case should go to the Auditor General too.
Pointing out that a “rich get richer” budget is going to increase inequality in NZ seems to be making the Nats uncomfortable. Bill English tries to simply deny the facts. DPF tries to divert attention to “social mobility”. Lame efforts in both cases. The truth is that inequality isn’t on the Nats radar. They simply don’t care.
