Posts on the economy, work, business, income, and labour
A recent report from the US Joint Forces Command states that “By 2012, surplus oil production capacity could entirely disappear, and as early as 2015, the shortfall in output could reach nearly 10 million barrels per day”. Are you planning for a post oil future? Why not?
Vernon Small calculates that if the Cullen Fund had continued getting its monthly contributions, rather than just the one-off $250 million the government gave in July, we would be $30 million better off by now. Predictably, the financially illiterate Key apologists are having a cry about being shown to have stuffed this one up so badly.
Last year, Telecom screws over its engineers. Decides to make them dependent contractors. EPMU wins real jobs for most of them. Better contract conditions for others. But a sh*tload of experienced engineers say screw Telecom and leave the industry. Then the faults start. XT becomes a laughingstock. Customers leave in droves. Next, profit warning.
Kelvin Davis: It goes to show how high the aspirations of some of our Maori leaders are. We now aspire to bung the bros in the hinaki and watch the dollars roll in. The longer and more often we can put them away, the sooner we will be able to afford to expand the prison and lock even more away. With the soaring crime rate and high Maori unemployment everything is coming together nicely.
It’s time for the Nats to reverse what Vernon Small (with 20/20 hindsight) has labeled the “dumb, short-sighted decision” to can contributions to the Cullen Fund. We’ve already lost $25 million and Treasury says we’ll lose billions more. If we don’t make this investment now, superannuation will become unsustainable sometime after 2030. Perhaps that’s the Nats’ aim.
Phil Goff is being attacked by John Key’s apologists because he won’t pledge to reverse National’s GST hike given he can’t yet know the state of the government’s books when he becomes PM. How ironic to see the Right, who supposedly want accountable government, pillory a politician for being straight up with the public, rather than telling them what they want to hear.
How economically illiterate do the Nats have to be to send the government’s research vessel Tangaroa to Singapore for a $20 million refit when VT Fitzroy at Devonport was ready and willing to do the work here? Sure the bid was a bit lower but did they consider the tax the government would gain, the fewer unemployed and the other benefits from keeping the work here in New Zealand?
National has announced the location for its first private prison on the same day we find out that they want their working group to look at privatising welfare. Private prisons were signaled by National. Privatising welfare was not. In both cases the victims will be a segment of society that this government and its supporters have actively vilified and the ones with the most to gain will be overseas corporations.
Well, I’m pleasantly surprised. For once, Paula Bennett has played it straight on the benefit numbers. She hasn’t slapped herself on the back, even though last month’s benefit numbers are the best we’ve seen on her watch (in line with normal seasonal variation). If only Bill English could follow suit, rather than claiming credit for illusionary movements in the government’s books.
Labour governments are good at planning for the future. Something National has never managed. Taking Aussie to the WTO over the fireblight ban is an example of Labour’s forethought. They knew the results were years away. Had the guts to stand up against our best mates when they had it wrong. Looks like we won the case. Aussie’s going to have to let our apples in.
National’s proposed reform of the foreshore and seabed legislation is no ‘elegant solution’. Instead, it is being criticised in the business press as an undemocratic favouring of Maori business interests over Pakeha ones, while iwi are saying that it doesn’t give them what they want.
So the govt wants to sue the Waihopai 3 for $1.1 mil. No pesky jury this time. The dudes only have a grand between them. Spending a couple of hundred thousand on lawyers’ fees to bankrupt some hippies. Doesn’t seem like the best use of taxpayer cash. Tell you what. If the govt really wants its $1.1 million they can take it out of our tax ‘cuts’. 25 cents each. That’ll be my tax cut pretty much gone.
The Whanau Ora Taskforce report is out and it fails to even attempt to answer simple questions like ‘why is Whanau Ora the best way to help families’. It provides no evidence it will work. Check out the graphic to the right – what does it even mean? All we do know is Whanau Ora will put public money in unaccountable private hands and be privatisation by stealth.
George Monbiot writes: It’s a bitter blow. When the government proposed a windfall tax on bonuses and a 50p top rate of income tax, thousands of bankers and corporate executives promised to leave the country and move to Switzerland(1,2). Now we discover that the policy has failed: the number of financiers applying for a Swiss work permit fell by 7% last year.
Remember “the underclass”? They were briefly fashionable in National circles in 2007. Now that they are the government National’s policies for the underclass seem to involve a good deal of beneficiary bashing. Invalids are being thrown off their benefit before the new legislation is even in effect. Election promises are being broken to remove the carrot and wield the stick. How will this help the underclass?
I think they know full well what causes violent crime.
They just don’t care.
In 2008, John Key was promising us a brighter future. 18 months on, we’re in that future he was talking about and Kiwis are reporting their lives are worse than they were before he came to power. 83% of Kiwis surveyed by ShapeNZ rated their quality of life as ‘good’ or better, down from 89% in 2008 and 92% in 2007. Key has a responsibility to live up to his promises
Regular readers of The Standard will know that a primary driver of crime is joblessness. It’s no surprise, therefore, to see that crime […]
The Key Government is constantly promising us great results and actually do nothing that improves things for New Zealanders. English, Bennett, Brownlee, and Tolley are prime examples of this MO. While they promise great things and fail to deliver unemployment is rising, wages are falling, crime is up, and the government has no plan to move us forward.
National’s mates in the dairy industry were annoyed that the elected councillors in Enviornment Canterbury wouldn’t let them have all the water they want. So National has sacked the councillors and suspended local democracy for four years. The diary farmers will pay along with everyone else for their short-termist ‘science be damned’ attitude. But not before they’ve caused long-term damage.
The Maori Party says it was ambushed on National’s welfare reform policy, which Tariana Turia opposes. The Minister and the Associate Minister are at odds on the issue. Does this mean that the Maori Party will be making a stand? Don’t hold your breath…
John Key have given three tests that mining on protected land would have to meet to satisfy him that it ought to be permitted- creates jobs and benefits the local economy, economically viable, and environmentally sensitive. Mining on Schedule 4 land fails to meet Key’s own tests but that’s not going to be enough to stop National. Only determined pubic opposition will stop them.
The eXileD has a piece on Ireland’s woes and how they got there. The 1980s neoliberal revolution and dodgy deals for the Right’s mates are familiar. Ireland became a tax haven for bludging international financiers. It’s all come crashing down but John Key wants to copy their mistake by creating an offshore financial centre here.
The economy finally managed to grow faster than the population in the December quarter but it was still slower than Australia. With weak growth, wages falling in inflation-adjusted terms, and unemployment now 2% higher than in Australia and rising the question has to be asked: when is John Key going to keep his promise to close the gap with Australia?
Leaky homes are a slowly unfolding disaster for the country. Someone is going to have to come up with $11bn (at least) in costs for repairs, and the government hasn’t a clue as to how to handle it. Still, every cloud has a silver lining they say, and for the government it is $2bn extra in taxes…
What a complete failure Paula Bennett is. If you could bear to sit through her interview on Q+A yesterday, you would have heard nothing but vacuous crap completely divorced from reality and her actual policies, which are opposed by Treasury, Health, and the Attorney-General. There are 67,000 more working age people on benefits than when Bennett became minister and she has no plan to reverse that.
Beyond this opening gambit on mining, National clearly has a larger plan. It is going to back down over Great Barrier, whether or not that was never part of the plan all along. But it is lining up more areas for later on. Areas like Dun Mountain near Nelson. Supposedly there’s gold in that there hill. But it also happens to be the site of one section of the John Key Memorial Cycleway…
Paula Bennett is saying that her benefit bashing policies are about “supporting people into work”
What is that support?
I see punishment. I see threats. Where’s the support?
Where, for instance, is the kind of support that Bennett got as a beneficiary? Training assistance that helped her get into work.
National’s mining policy is ‘dig and hope’. That’s the only conclusion one can draw after Gerry Brownlee and Nick Smith admitted National has no idea of the value of the minerals supposedly under the protected lands they want to dig up. Remember, this is National’s lynch-pin economic policy. They are we have dig up these protected lands for the sake of the economy but have no idea of what’s there.
Denis Tegg of Coromandel Watchdog writes that National is vastly over-estimating the mining potential of the Coromandel. It would take hundreds of mines and tens of millions of tonnes of toxic tailings to get the billions promised. The people of Waihi know that despite the wealth dug up from underneath them, their town is mired in poverty and permanently threatened by tailings leaking.
How’s that brighter future looking? A couple of years back, Steve wrote a piece on how National could reduce pay packs accordance with John Key’s statement that he “would love to see wages drop”. Now, wages are dropping thanks to a combination of government neglect on job creation and policies that are actively designed to suppress wage rises. Let’s see how the plan is playing out:
There’s a hell of a lot of mis-information and confusing numbers about the economic potential of mining around, and that suits Gerry Brownlee and National because it lets them exaggerate the case for opening up the National Parks. Remember, more mining is the government’s one big plan for the economy but they can’t even give a ballpark figure on how much they expect the country to gain.
You can’t ‘force beneficiaries back into work’ by ‘giving them a kick in the pants’ if there’s no jobs for them to go into. This supposed ‘get tough’ approach won’t get people off the benefit. It’s a cynical exercise in political marketing to make the government look active and distract from the real issues. It is no coincidence that this policy was released a day after the mining policy.
According to the NZIER Kiwi’s wages are set to drop.
But given the government’s return to a old-fashioned, old-boys club brand of tory we shouldn’t be surprised.
Paula Bennett and John Key have announced they’re getting tough on beneficiaries.
What a pity they couldn’t put the same energy into saving a few jobs in the first place.
A really interesting three-quarter page article by Ben Heather in today’s DomPost is titled “Looking for new tools to help exporters.” Lord knows […]
