Following news yesterday in the NZ Herald on Wellington, the Taxpayers' Union can reveal through official correspondence that Christchurch City Council has also undercut Auckland's $1.3 million Christmas tree, $800k of which was funded by Auckland Council's targeted rates.
“For only four percent of the total cost, Christchurch has managed to undercut Auckland's spending, while ratepayers don't need to worry about losing their Christmas Bonus" said Local Government Campaigns Manager, Sam Warren.
“Purchased by Christchurch in 2023 for $43,990 and transported for $11,880 – the central city tree shows that bigger doesn’t always mean better. With an installation and take-down price of $8,000, the Super City is again being shown up.
"With Wellington spending around the same as Christchurch this year for three trees and decorations, Auckland needs to take a look at other councils' spending to understand value for money."
Commenting on former Tasman and Gisborne Council Chief Executive Lindsay McKenzie’s appointment as Crown Observer at Wellington City Council, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“Some experienced hands to knock heads together at Wellington City Council won’t go amiss, but real cultural change is needed.
“Officers pulling strings behind the scenes has seen accountability melt away. That’s the real lingering blight on Wellington’s governance.
“Weakening democracy further by installing Commissioners will only make the issues worse. For Wellington’s sake, a Crown Observer can’t be the first step on this slippery slope.”
The Taxpayers’ Union is commenting on the recent news that Pure Tūroa will have to restart its consultation process to operate the Mt Ruapehu ski field. This comes after receiving $27.35 million from taxpayers over two years.
“Our comments eight months ago that the Government was throwing good money after bad, after bad, are truer now than ever” said Communications Officer, Alex Emes.
“The fact taxpayers have been on the hook for more than $27 million dollars, only to have it spent on a non-operational ski field, is the equivalent of setting money on fire.”
“The Government needs to put a stake in the ground and promise taxpayers there will be no more handouts towards this boondoggle.”
The Taxpayers’ Union’s Open the Books campaign has been calling for backbench and opposition MPs’ expenses - as well as Party Leaders’ budgets - to be covered by the Official Information Act.
“Why should MPs not be held to the same standards as Ministers? If you’re spending taxpayers’ money, the public need to see the receipts” said James Ross, Policy and Public Affairs Manager at the Taxpayers’ Union.
“More than 18,400 New Zealanders submitted their views to Parliament through OpenTheBooks.nz within the space of 5 days. The sense of outrage can’t be ignored.”
“MPs can’t bury their heads in the sand anymore. Kiwis know the expenses grift is completely unaccountable, and they’re demanding answers.”
“This is just the start. New Zealand’s Parliament needs to get with the times by fronting up to the public on what’s being chucked on the expense accounts, and this fight isn’t going away.”
The Taxpayers’ Union is asking “where does the buck stop” following Revenue Minister Simon Watts’ comments that IRD took “appropriate action” over its leaking of more than a quarter of a million taxpayers’ data. Despite leading the Department, Watts’ has simply “expressed [his] disappointment” over the leaks.
Commenting on the Minister’s weak response, Taxpayers’ Union Communications Officer, Alex Emes, said:
“Minister Watts needs start to show up for the - at least - 268,000 Kiwis who are victims of IRD’s betrayal and incompetence.
“Does he not realise that he is the Minister in charge of the people who perpetrated this travesty? The people who have been affected need to see action, instead of the Minister’s ‘disappointment’.
“Heads need to roll, and the only acceptable answer is the Minister ensuring those responsible pack up their desks and look for a new job. It's time he remembered he was elected to represent the people of New Zealand, not just the IRD’s spin doctors.”
IRD’s data leak was far worse then feared with IRD’s admission that despite earlier public assurances that all taxpayer data provided to social media companies was “hashed”, officials had emailed an unencrypted spreadsheet of taxpayer data to Meta (owners of Facebook) containing sensitive taxpayer information of more than quarter of a million taxpayers.
“Only yesterday, IRD Commissioner Peter Mersi took a swipe at the Taxpayers’ Union and falsely accused us of ‘misrepresenting facts’. But just 12 hours later, we learn that in fact there as a mistake: IRD’s data leak was far worse than anyone had imagined.”
"Since we became aware of IRD using taxpayer information to run targeted social media campaigns, New Zealanders have been assured that it's all ok because the data was hashed. They mislead the public about the protection that process provides, but at least it was something they could fall back on."
"Now they've come clean that it was a ruse all along. Unencrypted data was being sent by email from the IRD's social media team. It is beyond belief. Email is inherently insecure."
“Somehow, IRD’s data-protection is so bad, social media staffers are able to access information from the tax administration system. That alone is a blatant breach of trust for New Zealanders who must entrust IRD with their data.”
“IRD are trying desperately to down play this. They claim there is 'no risk of serious harm' when in-fact any foreign actor or sophisticated cyber criminal can easily penetrate a unencrypted email."
"This is the most serious breach of taxpayer information in the English-speaking world. None of our sister taxpayer groups are aware of anything near this scale or seriousness.”
“Commissioner Mersi’s comments to the media yesterday, political attacks, and lack of straight answers suggests that he has either been misled by his staff or is deliberately obfuscating the seriousness of the issue. Either way, heads must role.”
The IRD had been leaking taxpayers’ data to overseas tech firms in what Taxpayers’ Union Policy and Public Affairs Manager, James Ross, described as “shameful, and frankly it beggars belief that it is legal.”
“Even now, IRD Commissioner Peter Mersi is still refusing to front up to the millions of Kiwis his department has put at risk."
“Rather than saying IRD is ending the leaks because it was wrong to leak data, he’s blamed the Taxpayers’ Union’s campaign for drowning Inland Revenue in complaints from concerned taxpayers. Well we’re proud that the 9,000 of our supporters who wrote to the IRD demanding answers can claim this win.”
“Commissioner Mersi needs to stop burying his head in the sand, and explain to Kiwis how his department are going to clean up the mess of the data they’ve already leaked.”
“At the absolute bare minimum, we know 268,000 taxpayers have had their data leaked without even the skin-deep ‘protection’ of hashing. Heads need to roll over this.”
The Taxpayers’ Union can reveal that the Ministry for the Environment has spent $822,362 dollars during just fiscal year 2023 on “internal events”. Since 2018/19, the ministry has spent more than $2 million. Yearly costs for internal events have gone up more than 8x since 2018/19 when annual costs were only $98,045. More details regarding spending details are available through the Taxpayers’ Union Official Information Act request.
Commenting on the exuberant costs, Taxpayers’ Union Communications Officer, Alex Emes said:
“While every business dedicates some money towards events, the fact the ministry has been jacking up their events budget during a time when Kiwis were told to stay home is another example of rules for thee but not for me.
“With the money they decided to fork out on events, they could have instead planted more than 2000 hectares of trees. At least that would have been an attempt to do their actual job of helping the environment rather than playing around in workshops, retreats and lavish events.
“The Ministry needs to come clean on what has led to this latest budget blowout scandal, and how they plan to reign in their bloated event bills. The Taxpayer tab needs to end at all departments, and that includes the Ministry for the Environment.”
For the first time, a Parliamentary Select Committee is blocking members of the public from emailing submissions on a Bill before Parliament to MPs.
Nearly 10,000 individual New Zealanders have used the submission tool at OpenTheBooks.nz to ask the Parliament Bill Committee to remove the secrecy provisions that protect MPs from transparency on how they spend taxpayers money on themselves and their offices.
Ministerial expenses are already subject to the Official Information Act, and the Taxpayers’ Union argues that the same should apply to opposition MPs, backbenchers, and Party Leader’s Budgets.
“Blocking Kiwis from contacting their MPs to demand transparency is nothing short of arrogant self entitlement” says Jordan Williams, a spokesman for the Taxpayers’ Union.
“We’ve in the past seen Select Committees try to treat thousands of emailed submissions as just one, or even try to ignore them entirely, but never have we had literally thousands of members of the public actually be blocked from contacting MPs.”
“Online submission builders are a common occurrence on both sides of the political divide all around the world. They make it easy for the public to ‘have their say’ and increase the accessibility of the political process.”
"For the avoidance of doubt, this isn't some petition or spam tool. Every submission sent is able to be edited, and is manually sent by a member of the public."
“We knew that many backbenchers and opposition MPs would be annoyed we are highlighting their precious secrecy and carve out of freedom of information law. But to actually go as far as to block New Zealanders from sending emails to MPs is disgraceful.”
Submissions on the Parliament Bill close this Wednesday night. Regardless of whether the email block is lifted, the Taxpayers’ Union will print all submissions made at www.OpenTheBooks.nz and deliver them to Parliament.
The Taxpayers’ Union is launching a major campaign for Kiwis to demand MPs’ expenses no longer enjoy a special carve out from the Official Information Act.
"Submissions on the Parliament Bill close this Wednesday and we are encouraging taxpayers to make their voice heard at OpenTheBooks.nz," says James Ross, Policy and Public Affairs Manager at the Taxpayers’ Union.
"This campaign is to force MPs to justify why their spending should be a state secret when almost every other area of public spending is subject to public scrutiny. Government Ministers' spending is already covered by freedom of information laws, and it's about time opposition and backbench MPs were brought into line with normal practise overseas."
“In the UK, the expenses scandal blew the lid on widespread fraud – one MP even used Parliament's secret slush fund to clean a moat. Without transparency, we have no idea if the same sort of thing happening in New Zealand because non-Ministerial expense accounts and opposition party spending is a black hole."
"As it stands, the Parliament Bill actually opens up what MPs can spend taxpayer money on. For example, MPs won't even need their party leader's permission to pay for trips overseas."
"We say, MPs can't expect even more leeway to spend taxpayer money on themselves without the public having full transparency over every dollar."
The Taxpayers’ Union is weighing in on DIA’s ‘fat trim’ of 17 senior staff that were bringing home an average salary of $152,000. This comes after the bloated department has added 477 more bureaucrats in just 5 years.
Commenting on the relatively small cuts, Taxpayers’ Union Communications Officer, Alex Emes said:
“It’s nice to see that the DIA is starting to make cuts at the top by beginning with the crème de la crème of the bloated bureaucracy at DIA.
“While there may be cries from the DIA that they have been hard done by, the 17 bureaucrats that were canned were bringing home exuberant salaries. DIA has been taking taxpayers for a ride over the last number of years, so it is nice to see a turn in the right direction.
“However, more needs to be done to return the DIA bureaucrat bubble back to normality. The agency still has about 2700 FTE who continue to milk the pocketbook of taxpayers.”
Today’s Otago Daily Times reports that the government was advised of serious concerns about Waikato University’s ability to fund its contribution to the new medical school and with the assumptions used in the cost-benefit analysis that had been prepared. This advice, from the Tertiary Education Commission and the Ministry of Education, came two months before the government decided to progress the project to a detailed business case.
Taxpayers’ Union Policy and Public Affairs Manager, James Ross, stated that “it is concerning that the government may be progressing a substantial investment without a cost-benefit analysis based on sound assumptions and fully considered viable alternatives such as expanding the capacity of the two existing medical schools.”
“We share the reported concerns of Green MP Francisco Hernandez that the government may be cherry-picking evidence to predetermine the outcome it wants rather than being informed through an evidence-based process. There is no substitute for a robust cost-benefit analysis, and it appears this may not have been done.”
“It is our view that the government should pause the development of the detailed business case until it has completed a much more thorough cost-benefit analysis. The business case should only proceed if the Waikato option is realistically expected to be superior to expanding either or both of the existing medical schools. Anything less risks wasting taxpayers’ dollars.”
The Taxpayers’ Union is calling on Health NZ to “control their catering cravings”. This is the second spending scandal involving conference catering in just over a week for Health NZ.
Commenting on the colossal $95,584 catering costs, Taxpayers’ Union Communications Officer, Alex Emes said:
“Once might be considered a mistake. But to have multiple of these meet and greets within one year is a belligerent effort to take advantage of taxpayers.
“The fact that the conference was exclusive to 400 Health NZ finance staff is truly ironic. How many Health NZ finance staff does it take to control a conference budget?
“Given that Health NZ’s books are in the bin, we are calling - once again - for Health NZ’s taxpayer tab to end.”
The New Zealand Taxpayers’ Union can reveal through the Local Government Official Information and Meeting Act New Plymouth District Council has allocated $1,280,841 towards ramps and stairs for Fitzroy beach. This follows September’s news that Auckland Council spent $263,000 on four sets of stairs at Milford Beach.
"Accessibility, especially for the disabled, was obviously an important factor in the ‘Beach Street Access for all’ project by New Plymouth District Council” said Local Government Campaigns Manager, Sam Warren.
“However, with virtually all beaches in New Plymouth being connected by the coastal walkway and fully accessible from other points – was this massive price tag to fix some stairs and build a ramp truly justified in such challenging economic times?”
“Like all councils projects, the job is sure to blow out in costs, and $1.2 million already seems to be a large estimate for a relatively small project. Ratepayers would be within their rights to demand a breakdown of costs in projects like this. Perhaps they will discover the ramp is gold plated!”
“With local rates already raised by 11.5 percent, the Council must justify not only each project but every dollar allocated within it.”
The Taxpayers’ Union can reveal through the Local Government Official Information and Meeting Act that Otago Regional Council has spent more than $200,000 redeveloping its website, which has virtually been unchanged since 2017. While Council branding remains mostly unaffected, the redevelopment apparently has more features, and enhanced relationships with Mana Whenua.
“Otago seems to have outperformed most of its northern counterparts by spending $221,764.12 without shelling out another bundle on changing its logo or corporate identity" said Local Government Campaigns Manager for the Taxpayers' Union, Sam Warren.
“Interestingly, the project contained $15,176.90 worth of local Māori engagement, which includes translation services and the integration of ‘Whakataukī’ – or Māori proverbs. Comparatively, the website testing phase cost Otago ratepayers a more modest $553.06"
"A few more features are well and good, but after looking at an indexed version of the council’s website from 2017, we aren’t actually convinced this project was much more than a vanity project footed by ratepayers.”
The New Zealand Taxpayers’ Union is calling out Wellington City Council for the recent reports that they plan to blow $30 million on a new waterfront fence.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“If the council can't build a fence at a reasonable cost, how does that fare for actually difficult projects like pipe renovation? A $7 Million budget is more than enough for some safety measures."
“Wellington’s waterfront is one of the hallmarks of the city, surely there were alternatives to ensure citizens safety instead of setting back Wellingtonian households $370 each to fence off the harbour from citizens.”
“Ratepayers across the city are facing tripling rates over ten years, and people are already having to sell the family home to make ends meet. This Council's fencing failure needs to stop.”
The New Zealand Taxpayers’ Union can reveal through an official information act request that Sports NZ's "Say Thanks to Your Coach" campaign cost $171,598, with Sports NZ contributing $131,598 and Coach for Life contributing a further $40,000. The campaign featured a website for a month, which was used to send e-cards and video messages.
Sports NZ’s ability to somehow spend more than $575 per thank-you email takes the gold for government waste. For the $171,598 cost, Sports NZ could’ve bought 8,580 rugby balls. Instead, they sent a few pixels.
While the Taxpayers’ Union genuinely applauds the work of New Zealand’s volunteer coaches, surely someone at Sports NZ could dream up a more cost-effective way to thank them? For starters, they could’ve bought the 298 coaches fourteen crates of Speights each and still had change to spare.
Sports NZ need pulling into line, because clearly someone at the agency doesn’t care about delivering value for money. The only question that matters now is how will they be held accountable?
The Taxpayers’ Union is warning the government to “proceed with caution” after Nicola Willis’ comments about performance pay for public service executives.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“While it would be a nice change to see bureaucrats paid just like the rest of us by pegging their pay to whatever value they provide, leaving the government to implement such an idea could go terribly wrong.”
“If the programme is drawn up to only top up and throw away more taxpayer dollars at the already bloated pockets of public sector chief execs, this decision would only increase the bureaucrat pay gap already crippling New Zealand.”
“While offering market-like incentives to start delivering value for the taxpayers’ money might improve outcomes, we also need to make sure underperforming bureaucrats’ salaries aren’t safe from being slashed.”
The Taxpayers’ Union is calling on the New Zealand Transport Agency to “work on their negotiation skills” after documents were obtained from an Official Information Act request showing they spent $270,000 on design costs and $390,000 on installation for a 14 metre tall art sculpture outside a rest stop near Tekapo. The documents also show that more than $50,000 was spent on a piece of cultural panelling down the road in Burkes Pass.
Commenting, Taxpayers’ Union Communications Officer, Alex Emes, said:
“The first sentence on the NZTA’s website states ‘our primary function is to promote an affordable land transport system’. Whichever bureaucrat approved this expensive piece of artwork needs to be reminded that this object is neither affordable, nor a land transport system.”
“Beauty might be in the eye of the beholder, but no one is stopping their car mid-journey just to see a 14m tall metal eyesore when the stunning Mackenzie Basin is in the backdrop. And the mountains didn’t cost the taxpayer hundreds of thousands to commission.”
“The Transport Agency can’t tell the public how much they’re wasting on questionable art across the country, because even they have no way of keeping track of the massive sums. Maybe if these bureaucrats focussed less on decorations and more on roads, our highways wouldn’t feel quite so much like the surface of the moon.”
Local Government Minister Simeon Brown is set to appoint a Crown Observer to Wellington City Council.
"With the city’s governance being at rock bottom, no one is surprised the Government felt the need to hold the Mayor’s hand” says James Ross, Policy and Public Affairs Manager at the Taxpayers’ Union.
“With both rates and the debt ceiling being lined up to triple, the capital’s finances are fit to blow. Something has to give, and someone to bang some heads together in the back office is sorely needed.”
“But this cannot be the first step towards undemocratic Commissioners. It is well past time to allow Wellingtonians the power to toss out the city’s incompetent leadership themselves, by holding recall elections.”
The New Zealand Taxpayers’ Union can reveal Napier City Council staff are required to work in the office just 60 percent of the time, and Chief Executive Louise Miller, only three days per week.
“In September, the Public Service Minister sent a loud message to civil servants that she expected them to return to the office, curtailing the Work from Home culture many bureaucrats have come to milk since Covid restrictions" said Taxpayers' Union Local Government Campaigns Manager, Sam Warren.
“There is no reason why local councils like Napier shouldn’t follow suit. Napier’s policy of working from home applies to about 554 council staff. By allowing a 60-40 split between office and home, Mondays and Fridays must look like an absolute ghost town.
“Louise Miller, on her $388,500 Chief Executive salary, needs to lead the charge on working onsite, and cut out the ‘show-up-when-you-feel-like-it’ mollycoddle that most private sector workers would disparage."
The IPSOS Global Infrastructure Index for 2024 reports that only 27% of New Zealanders are fairly or very satisfied with the nation’s infrastructure. However, only 17% consider we have a strong record of delivering infrastructure, putting us dead last with Hungary.
Taxpayers’ Union Policy and Public Affairs Manager, James Ross, stated that “everyone’s far too familiar with bursting water pipes and pot-holed roads, so these results come as no surprise. Central government has been distracted from the core investment that is vital to productivity and growth.”
“Chuck in a local government sector which can’t stop wasting resources on ‘nice-to-haves’ and the crisis only gets worse. Cost-control is just not in their lexicon, and where better sums that up than Wellington’s bike rack and town hall blowouts whilst half the CBD is submerged in sewage.”
“It’s no wonder we’re approaching the bottom 10% of OECD countries for the ‘bang for buck’ we get from infrastructure investment. Chucking more and more of the taxpayer’s money down the drain and hoping that fixes our infrastructure problems hasn’t worked.”
“There needs to be an urgent national conversation on developing metrics to measure the efficiency of infrastructure spending at both the local and national level. Without developing these, taxpayers and ratepayers will never know if their money is being well spent. You cannot manage what you do not measure.”
Following this weekend’s victory in Barcelona, Team New Zealand has expressed interest in the possibility of defending the America’s Cup in Auckland once more, saying ‘it’s not off the table’.
“Dalton and his team’s win has been nothing less than historic” said Taxpayers’ Union Spokesman, Sam Warren.
"But before any agreement can be made to bring the Cup home, a full and transparent cost-benefit analysis must done before any public funds are committed.
“Auckland is in a bad state, with virtually no money to offer financial support. The country itself isn't in much better shape, either. Both the Mayor and Minister for Sports seem to agree.
“Dalton and his backers have long been open about propping up the team themselves, but for the infrastructure required locally – and the remarkably short runway before the next series – it’s looking more likely that the Cup will be raced in Spain, or potentially the Middle East.
“Realistically the cost would be in the hundreds of millions, and we are simply not prepared right now.
“Back home, roads, hospitals and other infrastructure are falling apart. On the remote chance the America’s Cup does make a return to the Auckland Harbour, it's essential that full economic consideration is first given to demonstrate real value for money."
The Taxpayers’ Union is calling on Health NZ to “focus on the figures, not the food” after an OIA was published by RNZ disclosing more than $60,000 on catering for 300 senior management.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“Senior Management at Health NZ need to focus less on feeding off the taxpayer tab and more on balancing the books. $32 per canape - was it caviar dusted with gold?”
“Who is in charge of the books? In a time when they are losing $147 million a month – spending more than $60,000 on catering is completely disrespectful.”
“It is quite sad to see how out of touch the people in charge of our health system have become. Savings need to be found – and it looks like senior management might be a good place to start.”
Like rust, government waste never sleeps, and your humble Taxpayers' Union has been in the media this week exposing it.
We also fact-check an ACT Party brag, and have bad news if you're an ASB Bank customer.
EXCLUSIVE: Film Commission's $145,000 French soirée 🎥🇫🇷🍾💸
The Taxpayers' Union is not very popular down at the Film Commission thanks to our tipping-off the media about their latest junket.
The Film Commission consider their entire raison d'être is hobnobbing with the glamorous – after all, it's hard work convincing foreign media bigwigs to pleeeease take our taxpayer money film subsidies.
Hot on the heels of last week's Climate Change junket to Bonn, our investigations team this week revealed that just four hungry little bureaucrats from the Film Commission managed to chew through more than $145,000 on a single trip!
The junket, sorry, work trip to the Cannes Film Market (held in conjunction with the Cannes Film Festival) was taxing. Kiwi taxpayers laid it on, hosting booze-laden champagne parties for Hollywood bigwigs visiting the French Riviera.
Making Sir Les Patterson blush 🍾🥴
The Film Commission's business model, as best we can tell, is to fly around the world with an unlimited expense account, trying to soak producers in enough liquor and caviar that they agree to produce a film in New Zealand.
And then if and when they do, New Zealanders get stuck with the bill for millions of dollars in film subsidies (with screen production grants forecast to cost us $86 million this year alone).
Arts Minister not impressed 🤨
Down at Parliament, all hell broke loose (we hear some MPs were livid they weren't invited!).
Media Minister Paul Goldsmith was more restrained, issuing a classic understated "not impressed" comment. He told the NZ Herald that the spending "does seem excessive" with his spin doctors saying "he'll have to get the details".
You didn't hear it from us, but we are reliably informed that the Beehive's political staff are seriously annoyed that the Film Commission didn't give their Minister a heads-up about the spending, or that the information had been released to the Taxpayers' Union.
We're here to help. 💁
ACT's Todd Stephenson was more to the point:
"The new Government had repeatedly emphasised the need for spending restraint, but the Film Commission – hardly a core government agency – doubled down on discretionary spending. In a single two-week blowout, four staff spent more than $24,000 on food and drink including fine French dining and dozens of bottles of wine and craft beer. In addition, $21,704 was spent on travel, $24,329 on accommodation, and $74,795 on ‘operational’ costs – including office rental and utilities."
“Browsing the receipts, obtained by the Taxpayers’ Union, is enough to make you sick."
Indeed.
Left-wing, taxpayer funded, arts listicle website The Spin-off having a sook 🤭
You know you're on the right track when the luvvies down at the taxpayer funded millennial website The Spinoff are upset.
Proving that they have a sense a humour (or are drunk on their own taxpayer funding?) they literally compared third rate bureaucrats plying film producers with booze to – wait for it – Prime Ministerial Trade Delegations. 😂
Jesus wept.
If you agree it's time to roll credits on the Film Commission click here to sign the petition. ✍️
CTRL+ALT+WOKE? Language Commission's blows $600k on custom te reo keyboards ⌨️⭐
Thanks to an insider tip-off at the Māori Language Commission, we've gone public revealing that at least $600,000 has been spent to develop customised Māori language keyboards.
The $600k was given straight to PB Tech to develop the keyboards. But here's the thing, PB Tech had been working on an identical project well before the Language Commission became involved (or offered a juicy cheque)!
This is a classic case of a government agency trying to jump aboard a private company's project to bask in the glory. PB Tech had already spotted a gap in the market.
PB Tech reckon there's potential big business in satisfying the bureaucrats who (like the Solicitor General) need Māori macrons on their keyboards to 'de-colonise' their computers.
Without paying a cent, your humble Taxpayers' Union have managed to obtain a sneak peak at the latest keyboards the public service are rolling out...
Oh, and we say "at least" $600k because we understand (but have not yet nailed down) that PB Tech was just one of many companies the Māori Language Commission have been writing cheques to.
Ka pai 👏
We have to talk about Wellington City Council. Again. 🔥🚨🥱
While the Wellington City Council continues to drive itself off a cliff – for the rest of New Zealand, this soap opera needs to also come to an end.
The short point is the Council has no money and they can't borrow more. Thanks to a laundry list of unaffordable boondoggles by successive Mayors, Wellington ratepayers are already in line for a near tripping of rates over the next decade.
And with the u-turn on selling off the Council's stake in Wellington Airport, the capital's 'fiscal strategy' is about as steady as the Mayor is [allegedly] inspecting Courtenay Place's nightlife.
Writing in the NZ Herald, Ryan Bridge picked up on our sobering calculation that every household in Wellington is already paying $800 a year in interest on the Council's existing debt.
Triple that debt, watch the credit rating downgrade, and it's not hard to see how this soap opera ends...
Unelected Commissioner? Careful what you wish for... 👀 🏴☠️
As James said in The Post, while it's tempting to call on the Government to replace the Mayor and Council with commissioners, we saw in Tauranga, it "isn't some magic solution":
"When commissioners stepped into Tauranga, the city carried on sliding into ruin."
"There's a ready-made solution for getting rid of incompetent representatives: voting. The real problem is voters are only allowed a voice once every three years."
Clearly Wellington needs a change in leadership. We say a better mode for Government intervention would be to establish provisions for 'recall elections' as is common in local government overseas.
Even in Wellington's Green Party-dominated suburbs, confidence in Green Party Mayor Tory Whanau is gone. So give the voters the tools to hit the eject button. Problem solved.
The Kāinga Ora way: Pay for a mansion, get a dunga 🏚️🧱
Kāinga Ora (formally known as Housing New Zealand) has been tangled in scandal yet again this week.
They were slammed for spending over $1.2 million building each apartment in its Meadowbank complex. Worse still, add in the cost of the land and it's $1.7 million!
It's easy to put this down to the last Government's build it at any cost philosophy, but serious questions still need to be asked about what led Kāinga Ora to rack up $12 billion in debt (that's about six grand in extra government debt per New Zealand household).
On Newstalk ZB on Monday, our Local Government guru, Sam Warren, called for a Select Committee inquiry into the Kāinga Ora fiasco. An inquiry with the power to summon witnesses and demand answers is needed so that lessons can be learned.
We've also written to the Social Services Select Committee setting out the reasons they should take a good look. You can read that here.
FACT CHECK I: Have ACT actually cut Labour's bureaucrat bonanza? 😲
Last week, Taxpayer Update included a missive about how little the current Government has done to reverse the explosion in bureaucracy numbers. We said:
Despite all the crowing about "brutal" and "unfair" public service cuts in Wellington, we now know that there were still more bureaucrats in July 2024 than there were 12 months earlier!
There's a hell of a long way to go to sling out the extra 18,000 taken on under the last Government (see Connor's excellent visualisation that got us into trouble with Parliament's Speaker here).
And while the [taxpayer funded] spin doctors in Nicola Willis' Beehive office are keen to promote the 13 percent ($274 million) reduction in spending on contractors and consultants, the fact is the Government has cut less well paid (see below) pen pushers than Chris Hipkins hired in his last few months in office! Even the spin doctors couldn't omit the key figure: the Government has 421 more employees as at 30 June 2024 than 12 months earlier.
At about the same time, those cheeky spin doctors working in the ACT Party issued their own crowing newsletter and social media posts about how well they're doing. ACT included this graphic:
To our astonishment, some Taxpayers' Union supporters are also signed up to ACT's newsletter. A couple emailed in to ask who had it right.
Fortunately the Disinformation Project can down tools: It turns out ACT aren't wrong per se in their graphic, but eagle eyed readers will see that ACT's graphic is a little selective in only going back to June 2022. And there's that convenient little squiggle in the y-axis. 🤨
Always here to provide you with full context, we fixed it. 💁
ACT are right to say that some progress has been made, but as shown by the latest batch of figures released by the Public Service Commission, there were still more public servants as at June this year than twelve months earlier.
Labour hired an extra 18,000 bureaucrats in their time in office. ACT and the other coalition partners in the current Government need to do more than scratch the surface.
Progress is good. 'Mission accomplished' would be better.
FACT CHECK II: 'Out-of-touch w banker of the week' 🏦💭
Not to be outdone by the 'you should pay a capital gains tax' ANZ CEO, New Zealand's top paid female exec – ASB Bank Chief Executive Vittoria Shortt – has joined the bandwagon to argue that you should pay more in tax!
“I think New Zealand has to really lean into taxes,” Shortt told Stuff's The Post.
Apparently, we need to tax Kiwis harder to "invest more in the infrastructure".
If Ms Shortt wants to pay more tax, then she can go right ahead and make a donation to the Government (the details on how to do that are here).
But Shortt should hit the books before she pontificates about infrastructure spending. The ASB Bank boss couldn't be more wrong in claiming New Zealand's infrastructure deficit necessitates ever higher taxes.
“The Infrastructure Commission reports that despite New Zealand spending a higher percentage of GDP on public infrastructure than Australia and the OECD median, we rank near the bottom of high-income countries for infrastructure efficiency.”
“Contrary to what the banker says, it’s not that we’re under-taxed or are under spending, rather it’s a productivity problem.”
“Since 2017 tax revenue to the Government increased by 59%. Inflation over the same period was just 27%. The Government does not have a revenue problem – it already collects more than enough. The Government has a spending problem and has no metrics that it can use to evaluate the efficiency of the spending and whether it’s delivering value for money.”
“If Shortt is serious, we invite her to donate some of her reported $5million annual salary to the Government. Or did she only mean for her ASB customers to pay more?”
[continue reading]
That's it for this week, have a great weekend. 😊
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Record numbers of young Kiwis leaving the country for better economic opportunities overseas remains a serious problem not easily solved, economists warn.
“These kids need a reason to stay” said Taxpayers’ Union Spokesman, Sam Warren.
“Countries overseas are offering incentives to attract bright minds to settle, work and thrive in their economies. What is New Zealand doing to compete?"
“Digital Nomad Visas are being used in places like Bali to entice young tech experts, and the likes of Portugal are offering tax breaks for people under 35 to encourage locals to stay, build and invest in a life at home.”
“Back home, many young Kiwis are convinced they have no place. They are overtaxed, uninspired, and home ownership has now become a pipe-dream until well into their forties and fifties.”
“The only solution is for us to be laser-focussed on sustainable growth. Creating the right jobs and opportunities to convince our brightest that they do have a future in New Zealand. This won’t happen on its own, we need to see pro-growth reform – including tax cuts and full capital expensing – at the top of this Government’s priority list.”
The Taxpayers’ Union is calling the Public Service Commission’s recent figures posted in an RNZ article “a failure of the coalition to get spending back on track”. The figures show bureaucrat salary costs have increased to more than $6.5 billion, an increase of 5.3 percent.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“This Government was elected on a promise to put the country’s finances ‘back on track’. However, after going off of these figures, their one year report card would have a big fat ‘F’."
“New Zealand is still seeing bureaucrats’ salaries balloon much quicker than growth in the private sector. We can’t afford to keep squeezing the productive sectors of the economy to funnel cash into the pockets of bureaucrats who are already failing to deliver value for taxpayers’ money.”
“It’s time for this government to stop pumping so much into armies of spin doctors, put the hardworking private-sector taxpayers actually providing for their paycheques first, and deliver on the promise they made to voters last year to put spending ‘back on track’.”
Minister Simon Watts was quoted today in an article by RNZ saying that the tools used for anonymising sensitive client data are “completely irreversible.”
“IRD seems to be trying to pull the Minister’s strings by having him do their PR”, said Taxpayers’ Union Communications Officer, Alex Emes.
“The Hashing process used to protect data has been widely criticised for its reversibility by tech experts across the world, and has even been successfully reversed here in New Zealand.”
“Claims from Inland Revenue that they ‘continuously review their processes to ensure we are safe’ are a complete coverup. Had this actually been the case, they would not have leaked private client data to social media companies in the first place.”
“Minister Simon Watts needs to stop parroting the lines of bureaucrats, stand up for Kiwis and start holding the Inland Revenue Department accountable to the people they are supposed to serve.”
Statistics NZ today released their latest figures for New Zealand’s Consumer Price Index (CPI). This dropped to 2.2%, which is within the target range of 1-3%.
Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said “that’s only half the story, and the inflation beast isn’t slain yet.”
“Domestic inflation is still around 5%, which is proof beyond doubt that the Government needs to go further and faster in slashing wasteful spending and balancing the books.”
“Let’s not forget it’s taken a Reserve Bank-induced per-capita recession worse than after the Global Financial Crisis to try and get inflation to these levels.”
“The ‘medicine’ the Reserve Bank dished out has battered the economy and Kiwi households. Now, with interest rates decreasing, there is hope for a recovery. But the Government must increase its efforts to reduce expenditure, live within its means and ultimately start paying down some of its spiralling debt.”
Queenstown cafes and restaurants have been rocked by a near 1500% increase to al fresco dining charges following a decision made by Queenstown Lakes District Council.
“After years of near impossible trading conditions, only now is the sector starting to get off its knees” said Local Government Campaigns Manager, Sam Warren.
“One restaurateur said, until now, he paid $3,200 each year to operate with tables outside his premises. Under these new changes, he is expected by council to cough up $51,000 each year in an industry already infamous for its razor thin margins.”
“The fee has not been changed since 2006 and, there was consultation on the possibility of an increase, there was no indication that on math that led to a far higher increase than what would have ever been considered reasonable.”
“Concerns have been raised over how this number has been calculated. The increase has been based on a percentage of the value of indoor rental rates – not just for hospitality businesses, but for all commercial properties, which have very different operating dynamics, in defined areas."
“No one is arguing that a fee should not be paid for using public space for dining purposes, but sensible minds will agree that it needs to be realistic. If council is really that keen on destroying local hospitality, my advice to them would be to keep doing what they’re doing.”
Nicola Willis' comparison of Wellington City Council to a butcher's slaughterhouse is demeaning to both the ratepayers of Wellington, and hard working, decent, blue collar butchers around New Zealand, says the Taxpayers' Union.
"Nicola Willis' comments on Newstalk ZB this morning were totally over the top. While Wellington City Council might be a sea of red ink, with blood up the walls, backstabbing and skulduggery, this sort of polarised rhetoric is not called for."
"Wellington's Town Hall might appear like a horror movie, but to call it a butcher's slaughterhouse is a step too far."
"Wellington needs adult, respectful, political leadership. Not blood curdling slurs. Butcheries from the Hutt to Petone would be horrified to have their professions compared to the actions of the Mayor and councillors as a so-called 'shambles'."
Tauranga City Council has today faced backlash from local cafes and restaurants following changes to outdoor dining fees that would see further costs piled onto hospitality businesses offering alfresco dining options.
“It’s a table-tax, plain and simple.” said Local Government Campaigns Manager for the Taxpayers’ Union, Sam Warren.
“Mayor Drysdale needs to dip his oar in the water and work with local businesses, not against them. Taxing them further into the ground is hardly the right thing to do.
“Owners are desperate for a reason to open their doors in the morning, and a meek gesture of temporarily waiving this table-tax until next year doesn’t scream optimism.
“This change has been justified under the guise of ‘fairness and consistency’ so that now every business gets its fair share of suffering. Or, if it’s footpath congestion Council is worried about, why not explore more constructive solutions?
“Burdened with forever-vanishing carparks, rising rates and insurance costs, this is one more nail in the coffin for a dying CBD and its neighbouring streets. This will be a real test for the Mayor to determine if he's comfortable rocking the boat, or rowing in the wrong direction.”
The New Zealand Taxpayers Union can reveal through an Official Information Request that $605,499 of corporate welfare was given by the Māori Language Commission to PB Tech for the development of Te Reo Keyboards.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“Instead of using taxpayer dollars to improve the lives of Māori, the government is giving corporate handouts straight into the pockets of big business. Subsidising PB Tech with Kiwis’ hard-earned money is the equivalent of throwing taxpayer dollars in the bin.”
“Taxpayers have wasted more than 600k on an initiative that PB Tech had already started working on. Clearly the business case already existed without corporate welfare, so why are the public now on the hook for the costs?”
“If the private sector is already delivering or creating a product that the market demands, the public purse does not need to be subsidising it. PB Tech can more than afford to stand on their own two feet.”
As Central Government intervention in Wellington City Council seems to be getting more and more likely, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, warned commentators to “be careful what you wish for.”
“We’ve all seen this movie before. When commissioners stepped into Tauranga, the city carried on sliding into ruin. Replacing elected leaders with unaccountable bureaucrats isn’t some magic solution.”
“There’s a ready-made solution for getting rid of incompetent representatives: voting. The real problem is voters are only allowed a voice once every three years.”
“Recall elections would let Wellingtonians sling out their busted leadership without throwing democracy onto the sacrificial pyre. Central Government needs to step up, legalise democracy, and let Wellingtonians take their city back from the brink.”
The New Zealand Taxpayers’ Union can reveal through the Official Information Act that the New Zealand Film Commission has spent $145,354.81 for just four staff members to spend two weeks in France attending the Cannes Film Market.
Receipts showed $24,329.08 in accommodation, $24,525.36 in food and drink, and $21,704.54 on travel.
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“Last year, the Taxpayers’ Union called out the Film Commission for wasting $73,000 at the Cannes Film Festival. Taking that as a challenge, this year they’ve blown more than double that at the Cannes Film Market.”
“Bureaucrats are no strangers to jetting off having fun at the taxpayers’ expense, but Film Commission staffers blow through cash like it’s going out of fashion. Kiwis struggling to put bread and milk on the table shouldn’t be forced to stump up for champagne and caviar.”
“Bear in mind that this was the same agency that was criticised in July for having four staff office parties in less than a fortnight, costing over $16,000. Living the A-lister party lifestyle and not having to pay a penny out of pocket, not a bad gig if you can get it”
“Even if plying Hollywood big wigs with taxpayer-funded champagne was successful in attracting a film production to New Zealand, Kiwis would still be on the hook for millions of dollars of film subsidies. Either way, taxpayers lose.”
“This entire agency's purpose seems to be corporate welfare and popping corks. It’s time to roll credits on the Film Commission.”
The Taxpayers’ Union is calling on ASB Bank CEO Vittoria Shortt to put her money where her mouth is and make a donation to the Government given her call for New Zealanders to be taxed even more.
Stuff reports that Ms Shortt says “New Zealand has to collect more tax to invest in the infrastructure the country so desperately needs.”
“Ms Shortt needs to get out more,” says Jordan Williams, a spokesman for the Taxpayers’ Union. “The Infrastructure Commission reports that despite New Zealand spending a higher percentage of GDP on public infrastructure than Australia and the OECD median, we rank near the bottom of high-income countries for infrastructure efficiency.”
“Contrary to what the banker says, it’s not that we’re under-taxed or are under spending, rather it’s a productivity problem.”
“Since 2017 tax revenue to the Government increased by 59%. Inflation over the same period was just 27%. The Government does not have a revenue problem – it already collects more than enough. The Government has a spending problem and has no metrics that it can use to evaluate the efficiency of the spending and whether it’s delivering value for money.“
“If Shortt is serious, we invite her to donate some of her reported $5million annual salary to the Government. Or did she only mean for her ASB customers to pay more?”
ASB Bank takes distinct position from Australian parent on bank excess profit tax
“We also note Shortt’s comments appear to contradict the views of her Australian bosses.” said Williams.
Six weeks ago the Commonwealth Bank chief executive, Matt Comyn, described a proposed excessive profits tax for Australian banks as “insidious populism” and labelled criticism of profitable businesses as “fact-free rhetoric” that is damaging trust in public institutions. (see https://www.theguardian.com/news/article/2024/aug/29/commonwealth-bank-ceo-labels-greens-tax-policy-insidious-populism-after-firms-98bn-profit)
“Is ASB saying that they support a tax on the extra-ordinary profits the Australian-owned banks are making on their New Zealand operations? If not, why is what Shortt says is good for the goose, not good for the gander?” asked Williams.
The Taxpayers' Union is calling out Christchurch Mayor Phil Mauger who admitted on TVNZ's Q&A that “I didn’t do what I promised” when asked about Christchurch’s recent rates hikes, but claimed, bizarrely, that it isn't a "broken promise".
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
"Does Mayor Mauger live on another planet? Not fulfilling a promise is the definition of breaking a promise. That holds true even in local government-land."
"When you stand on a promise to cap rates at 3-4 percent but then ram a 9.4 percent hike down ratepayers’ throats, that’s a betrayal to the people who trusted him with their vote. To claim otherwise is nothing short of gaslighting."
"Mayor Phil's credibility on rates is shot. He's opted to rate $4000 from every Christchurch household for a lavish stadium. He should at least own the decision.”
Kāinga Ora was slammed yesterday following revelations it spent $1.2 million per apartment build, as part of its new Meadowbank complex.
“This appalling cost warrants urgent review across the organisation.” said a Taxpayers’ Union spokesman, Sam Warren.
“A Select Committee is needed to determine what went so wrong, with powers to compel witnesses under oath. Accountability needs to be shown.
“This is either an example of the former Labour Government’s ‘build-at-all costs’ philosophy that saw Kāinga Ora rack up $12 billion of debt in just 5-years, or something even more insidious is going on within the agency.
“These revelations come less than one week after former Board member, Philippa Howden-Chapman, criticised the Government’s review into Kāinga Ora in her resignation letter, claiming the scrutiny would further exacerbate homelessness.
“We cannot allow thinly veiled attempts to exonerate accountability and stop improvements. It's critical that Kāinga Ora is both effective and sustainable. If we find ways to do more with less, more homes would be built – plain and simple. But when KO builds lower spec’d homes at unacceptably higher costs than other developers, something must be done.”
Lowest support for National in 15 months; highest for Labour in 16 months; in latest Taxpayers’ Union-Curia Poll
The latest Taxpayers’ Union-Curia poll for October shows National down 4.1 points on September’s poll to 34.9%, and Labour up 3.6 points to 30.3%. This is the lowest result for National in 15 months and highest for Labour in 16 mounths.
The Greens are down 0.6 points to 10.4%, while ACT rises 0.9 points to 9.7%.
New Zealand First are up 0.8 points to 7.6%, while Te Pāti Māori are down 2.0 points to 3.0%.
The full poll results can be found here on the Taxpayers' Union's website here at https://www.taxpayers.org.nz/oct2024_polling
For the minor parties, TOP are on 2.5% (up 1.4 points), whilst the combined total for other parties is 1.6%.
This month's results are compared to the last Taxpayers' Union – Curia poll conducted in September 2024, available at https://www.taxpayers.org.nz/poll_sept2024
Based on these results, National are down four seats on the last poll to 44, while Labour gains five to 38 seats.
The Greens are down one seat to 13 while ACT is up one to 12 seats.
New Zealand First are up one seat to nine from the last poll, while Te Pāti Māori remains on six.
The combined projected seats for the Centre-Right has fallen two from the last poll to 65. The combined seats for the Centre-Left is up four to 57.
On these numbers, National and ACT would require the support of New Zealand First to form a government. This calculation assumes that all electorate seats are held.
A summary of the results, including preferred Prime Minister scores, are available on our website here: https://www.taxpayers.org.nz/oct2024_polling
Major Voting Issues – Appearance in Top Three
For the first time, the Taxpayers’ Union is publicly releasing the results of the “Major Voting Issue – Top 3” – which suggests that voters are considering health an increasingly important issue.
36.5% of respondents named the Cost of Living as one of their top three issues (up 0.5 points from last month), followed by Health at 35.5% (up 4.2 points), the Economy more generally 33.7% (up 3.6 points), Law and Order 16.5%, Poverty 16.3%, and Housing 12.1%.
Get the full report – join the Taxpayer Caucus
As part of the same poll, favourability data for party leaders and other notable politicians is collected monthly. This month, results were obtained for Labour’s Deputy Leader, Carmel Sepuloni, and Megan Woods as well as Labour’s Leader, the Prime Minister, and the coalition parties’ leaders. All of these results are detailed in the full Taxpayers’ Union-Curia Poll report made available exclusively to members of the Taxpayer Caucus.
Huge Taxpayer Update today.
NEW POLL (not good news for Luxon); boat sinking (not good news for taxpayers); Government books even worse than feared (not good news for those who wanted Nicola Willis to tackle the last Government's wasteful spending).
We do have some good news for your Friday though: Jordan's been digging into the Government's proposed replacement for the Resource Management Act, and it's looking promising. He sat down and interviewed one of the two MPs driving the effort (video of the interview below).
State of the Government books is a serious wake-up call ⏰
Yesterday, Treasury released the Financial Statements of the Government for the Year Ended 30 June 2024. It had about as much good news as your council rates bill.
As soon as the report landed, our team compared the actual numbers with the projections that were released back in May as part of the Budget. Are we doing better or worse than expected?
Only the fiscal sadists left the Treasury lock-up smiling.
Despite the change of Government, government spending continues to grow faster than revenue.
Our in-house Economist, Ray Deacon, sent a note around the campaign team and interns last night. I couldn't have put it better:
To give some perspective on the situation, take a look at how key elements of the Core Crown account have changed since 2016/17. This is the part of government that covers the core policy ministries and operational departments but excludes crown entities, state-owned enterprises and mixed ownership entities. Consumer price inflation over the period amounted to 27.2%.
Audited data doesn't lie. The Government does not have a revenue problem – it already extracts too much – it has an expenditure problem! Whilst the current Government cannot be held entirely accountable for the current state of the government accounts, it will be accountable for not quickly improving the situation going forward. Only a much more rigorous examination of government expenditure and deletion of entire programmes (especially the corporate welfare handouts) can hope to achieve the strong fiscal consolidation that Sir Bill English achieved post the global financial crisis and which got New Zealand back into surplus. Leaving it to officials to decide where to make cuts won’t work – Ministers must make these decisions and remove any obstacles in their way.
There endeth the sermon.
Ray also highlighted the issue with the deficit spending being "structural", according to Treasury officials. That means that even when the economy bounces back, the books are still not expected to return to surplus.
There needs to be a fundamental shift in fiscal policy if New Zealand is to avoid what happened in the mid-80s and then again in the early 90s: the government running out of money.
He's green, he's hungry, and he's now coming for the kids 👀
Nicola Willis is borrowing a million bucks an hour to keep New Zealand Wellington afloat.
That's even faster than the rate Grant Robertson borrowed.
The times of cheap money are over. This year interest payments will amount to more than $9.2 billion – that's $4,622 for your household (and every other household in New Zealand)!
That’s the same as what the Government will spend on primary schools, secondary schools and the Ministry of Justice combined.
So rather than paying for a scary movie this weekend, just head on over to the Official Debt Clock.
It's running hotter than ever.*
*note Debt Clock figures track government debt in real time rather than as at 30 June.
Job losses in Wellington? What job losses? 🤷
Remember how the Government was going to sack those 18,000 extra bureaucrats Labour hired in the last three years of its reign? Well, yesterday, there was another set of figures being released by the Public Service Commission (ironically, just across the road from the Treasury lock-up at No.1 The Terrace, in the Reserve Bank Building at No. 2, The Terrace).
Sir Humphrey reported as being 'safe and sound'... 😮💨
Despite all the crowing about "brutal" and "unfair" public service cuts in Wellington, we now know that there were still more bureaucrats in July 2024 than there were 12 months earlier!
There's a hell of a long way to go to sling out the extra 18,000 taken on under the last Government (see Connor's excellent visualisation that got us into trouble with Parliament's Speaker here).
And while the [taxpayer funded] spin doctors in Nicola Willis' Beehive office are keen to promote the 13 percent ($274 million) reduction in spending on contractors and consultants, the fact is the Government has cut less well paid (see below) pen pushers than Chris Hipkins hired in his last few months in office! Even the spin doctors couldn't omit the key figure: the Government has 421 more employees as at 30 June 2024 than 12 months earlier.
Nicola fought the blob, but the blob won?
...and rather well paid 🏝️
And buried in the Public Service Commission data:
Remuneration: The average annual salary for public servants was $101,700, a 4.6 percent increase on the previous year. Increases were higher at the lower and middle salary levels driven by the Public Service Pay Adjustment and incremental change. At the other end of the scale, there were more modest increases, with average salaries for tier 2 managers increasing 2.1 percent. Private sector average earnings increased 4.0 percent over the same period, according to Stats NZ's Quarterly Employment Survey.
For comparison, $83,824 is the average wage for the same year ended 30 June (Stats NZ).
New Zealand's longest "real" recession 😧
There was some celebration this week with the Reserve Bank cutting the official cash rate (the main driver of interest rates) down to 4.75%.
But if you think it'll be enough to fix the economic woes, I have an Interislander ferry to sell you. As James put it in his comments to the media:
“High interest rates have caused a bigger per-capita recession than the one experienced in the wake of the Global Financial Crisis, and the backsliding of Kiwis’ living standards doesn’t look set to stop any time soon.
“Growth is the only answer, and slashing interest rates could be the first step in the right direction. But the risk of long-term damage hasn’t gone away, and the Government needs to work to make sure this OCR cut pays off.
“Domestic inflation still hangs at 5.4% thanks to the reckless previous Government’s overspending. The current Government must double down on any efforts to cut wasteful expenditure, and any savings should be used to start chipping away at anti-growth tax policies like one of the highest corporate tax rates in the developed world.”
The media like to talk of "technical" recessions (that is, two successive quarters of negative growth). But the real number is always per capita growth. If the population grows faster than the economy, we're still getting poorer.
On that per person measure, New Zealand is in the longest recession since records began. Ouch.
From one shipwreck to the next... 🚢🤔
The HMNZS Manawanui went down this week, seemingly hitting a reef and sinking off the coast of Samoa. Thankfully, everyone escaped with their lives and only taxpayers were seriously injured ($100 million of Royal Naval taxpayer assets disappeared below the waves).
Quite rightly there will be a Court of Inquiry to work out what went so wrong. But a Court of Inquiry is not enough. Unlike civilian judicial proceedings, the public has no rights whatsoever to observe the Court of Inquiry or even know the findings.
It may not be about blame (the Taxpayers' Union is not interested in a pile-on against the Captain) but we say New Zealanders are entitled to know whether the Navy is incompetent or just cursed.
Courts of Inquiry operate in secret because much of their matters relate to national security and military discipline.
But let's get real, the Manawanui was fighting coral, not commies. It should be an open court process determining what went wrong.
Defence Minister Judith Collins should be ensuring taxpayers are not left in the dark so that we know for sure that this wasn't just an Interislander-style "left the autopilot on" SNAFU.
New Taxpayers' Union-Curia Poll: lowest results for Nats in 15 months 📉📊
That's not the only bad news for the Government this week, as our hot-off-the-press poll revealed today.
National is down 4.1 points to 34.9 percent from last month while Labour is up 3.6 points to 30.3 percent.
That's National's lowest number in 15 months, and the highest Labour have been in the polls for 16 months.
The Greens are down 0.6 points to 10.4 percent, while ACT are up to 9.7 percent (+0.9 points). New Zealand First is up 0.8 points to 7.6 percent while Te Pāti Māori is down 2.0 points to 3.0 percent.
For the minor parties, TOP is on 2.5 percent (+1.4 points), and no other parties polled above 1.0 percent.
Translating these numbers into seats in Parliament, National is down four seats on last month to 44 while Labour is up five seats to 38.
The Greens are down one to 13 while ACT is up one on last month to 12 seats. New Zealand First is up one to nine while Te Pāti Māori is unchanged on six.
On these numbers, the current coalition would still be able to form a Government, holding 65 seats to the centre-left bloc's 57.
For the first time, we are also releasing data on "Major Voting Issues – Top 3" usually reserved for our "Very Important Taxpayers" who support the Taxpayers' Union most generously.
We've made it public because it shows what might be driving the changes in this month's poll: Health has seen a surge in voters' priorities (now second), and with the difficulties the Government has had with this portfolio, could it be this which is hitting the National Party's ratings?
36.5 percent of respondents named the Cost of Living as one of their top three issues, followed by Health at 35.5 percent, the Economy more generally on 33.7 percent, Law and Order on 16.5 percent, Poverty on 16.3 percent, and Housing on 12.1 percent.
MfE & MFAT climate change high flyers: Chucking taxpayer money onto the 'Bonn-fire' 🔥🇩🇪
Regular readers of Taxpayer Update will know that we like to follow those hard working big-spending officials who are selflessly fighting climate change one business class flight at a time. 🍾
One civic-minded public servant's tip-off to the Taxpayers' Union led us to go digging into the Ministry of Foreign Affairs and Trade (MFAT), the Ministry of Primary Industries, and Ministry for the Environment's joint jaunt work trip to Bonn, Germany, for the UN's latest Climate Change conference.
Over the course of just a few days, the New Zealand delegation managed to blow more than $150 grand catching-up with their equivalents from around the the world.
And that's just what MFAT would tell us! Officials refused to say how much was spent on entertainment, food or drink (and if anyone's familiar with diplomats' expenses, you'll know they're not afraid to pop a cork or two). Either there's so much it is in fact 'too hard', or they just don't want you to know. Sounds like quite the party...
Speaking to the Platform James said:
"You've got all these bureaucrats at the minute saying they can work from home just fine, and use Zoom to join their meetings."
"But they can't do the same when there's a free trip on offer."
Bang on, James.
Some good news this Friday: RMA reform imminent 🎉
The Resource Management Act is New Zealand's largest regulatory tax. No other piece of legislation does more to keep New Zealand poor and our living standards down.
When the RMA was introduced in 1990 it was seen as "world leading". We shouldn't have waited 34 years to get the hint when no one followed!
Last week I sat down with one of the two MPs who are shepherding the next generation of land-use, planning, and environmental management law.
ACT's Simon Court has been head-down with Minister Chris Bishop on what comes next. For those interested in RMA reform, their "joint speech" is well worth the read.
Credit where credit's due, these reforms are looking to be a huge win for New Zealand.
If what the Government announced earlier in the month holds firm, we are on the cusp of a huge win for New Zealand and our future living standards. Freeing up New Zealanders from the type of 'command and control' central planning model will likely be the biggest thing the Luxon Government is to be remembered for. It is akin to the removal of import licences back in the 1980s.
So after seeing the speech, I asked Simon Court to come into our office and discuss the Government's workstream on replacing the Resource Management Act.
Simon Court is the Parliamentary Under-Secretary to the Minister for Infrastructure and the Minister Responsible for RMA Reform. First elected in 2023, prior to this Simon worked as a civil and environmental engineer with 23 years experience across the public and private sectors.
You can get this episode over on YouTube, or listen to the audio version over on our website, Apple Podcasts, Spotify, or iHeart Radio.
One more thing...
The Taxpayers' Union is made possible by the thousands of supporters who share our vision for a prosperous New Zealand with efficient, effective, and accountable government.
Your support means we can keep the lights on – as well as keep the pressure on Wellington on behalf of you – the taxpayer.
Thanks for making the work possible.
Have a great weekend! 😊
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The Government has released its financial statements for fiscal year 2024 yesterday. Its financial statement saw a 1.8% increase in net core crown debt and interest charges (total charges more than $10 million dollars) despite higher tax revenue. They assert the higher levels of revenue were caused from ‘higher levels of inflation’.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“This is not a good look for this government’s first financial statement. They were elected on a promise to deliver real tax relief during a cost of living crisis that hardworking Kiwis are facing every single day.
“The numbers show that, while everyday New Zealanders have been struggling to meet the new realities caused from inflation, this Government has profited more than $14 million dollars. This is proof that their July milk toast tax relief just wasn’t enough.
“During a time of increased profits on the backs of the working-class, the Government has increased spending even more than its predecessor. Instead of higher revenues, greater debt and more interest on the back of taxpayers, it’s time the Government turns the table and delivers meaningful tax relief.”
Councillors today voted not to sell the airport shares, in what Taxpayers’ Union Policy and Public Affairs Manager, James Ross, says “could be shaping up to be an incredible act of economic sabotage.”
“Wellington City Council has already breached its debt limit, and as the airport shares have not been sold, officers are now warning the debt ceiling might need to triple.”
“Wellington households are already paying more than $800 a year in interest on the council’s debt, not to mention more than four grand servicing central government debt. Now that bill is set to skyrocket even higher”
“The answer was clear. The airport shares had to be sold and the money used to pay down some of the massive debts on Wellington’s books.”
“It’s about time the council stopped treating ratepayers like an endless piggybank and made some big choices to start putting their finances first. Starting with selling the airport, then slashing wasteful spending on back-office staff and vanity projects like the ever-growing cycle network.”
Andrea Vance reports in The Post today on the horribly, messily complicated sale (or not) of Wellington City Council’s airport shares.
“Whilst the Council’s complete dysfunction is widely understood, these new developments, as reported by Vance, are deeply disturbing” said Policy and Public Affairs Manager, James Ross.
“Vance reports that the two unelected mana whenua representatives, who do not sit on the full council where the vote will take place, are threatening to pull out of an iwi-council partnership over the vote. This is a blatant attempt to strong-arm elected representatives with the threat of feigned offence if the Council does not vote the ‘right’ way.
“But even worse, Vance reports that representative Holden Hohaia has a vested interest in the outcome as his iwi has aspirations in buying the shares. That should automatically disqualify him from having any input into the process or deliberations. It is therefore fortunate that he has no actual vote on the sale at the full Council. However, if Vance is correct, his threats are inappropriate and call into question the wisdom of having unelected representatives on councils or council committees.”
The Reserve Bank has today slashed the Official Cash Rate (OCR) by 50 basis points, to 4.75%.
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“High interest rates have caused a bigger per-capita recession than the one experienced in the wake of the Global Financial Crisis, and the backsliding of Kiwis’ living standards doesn’t look set to stop any time soon.
“Growth is the only answer, and slashing interest rates could be the first step in the right direction. But the risk of long-term damage hasn’t gone away, and the Government needs to work to make sure this OCR cut pays off.
“Domestic inflation still hangs at 5.4% thanks to the reckless previous Government’s overspending. The current Government must double down on any efforts to cut wasteful expenditure, and any savings should be used to start chipping away at anti-growth tax policies like one of the highest corporate tax rates in the developed world.”
Health NZ’s predicted deficit by June 2025 has grown to $1.76 billion, ballooning from $1.4 billion only a few months ago.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“Overspending by $147 million a month is staggering. It’s clear the centralise-at-all-costs model has blown up in our faces, and serious decentralising reform is needed to keep our health system afloat.
“Our health system is in crisis, and the Government need to stop tinkering around the edges. Taxpayers need answers on how things went so wrong, but there’s no longer any choice except to try and find drastic savings.
“The new Commissioner needs to be ruthless about putting spin doctors and policy wonks on the chopping block, before the whole house of cards tumbles down.”
The New Zealand Taxpayers’ Union can reveal through an Official Information Act request that the Energy Efficiency and Conservation Authority (EECA) has spent $9,957,895 co-funding EV chargers across the public service.
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“EECA funding half the public service’s EV charger bill is as ridiculous as it is useless, and it’s time to pull the plug on this nonsense. Whether its departments themselves or EECA funding these projects, it’s still taxpayers getting slapped with the bill.
“Back in August, we revealed the $2.2 million cost of the Ministry of Education’s EV charger escapades. We now know shockingly that pales in comparison to Health New Zealand’s around $8 million.
“Under the Emissions Trading Scheme, the Government could spend its entire budget on EV chargers and it wouldn’t reduce emissions by a single gram. This is subsidising already well-off EV drivers, taking people’s hard-earned money to waste on subsidising luxury travel.”
The New Zealand Defence Force-led inquiry to determine the cause of the HMNZS Manawanui’s sinking may be kept secret from the public.
“The reasons for the demise of the HMNZS Manawanui must be made known” said a spokesman for the Taxpayers’ Union, Sam Warren.
“The vessel itself was a $100 million asset to New Zealand and her strategic defence. Determining the cause of its sinking sits entirely within the public’s interest.
“Promises made by the Minister for a ‘short-and-sharp’ inquiry are only as good as the transparency that follows.
“Conjecture is running rampant on what might have caused such a costly loss to New Zealand. She was a 20-year old ship performing presumably a low-risk exercise. Was there a technical problem? Issues of poor procurement? Or was there something else that resulted in such a significant loss to the country?
“The Defence Force must reveal as soon as practicable the cause of this disaster so that the public can have confidence this will not be repeated."
Following yesterday’s strategy meeting, TVNZ has proposed outsourcing its daily operations and shutting down the 1News website and app in an attempt to find $30 million dollars in savings.
Commenting on this, Taxpayer’s Union Communications Officer, Alex Emes, said:
“It’s nice that TVNZ is finally looking to cut costs and start showing an interest in cleaning up the financial boondoggle they have got themselves into.
“However, the timing of this announcement begs the question ‘why didn’t they decide to save $30 million earlier?’. Had they acted sooner, the public purse wouldn’t have needed to bear the brunt of TVNZ’s $85 million loss this year.
“This cut-cutting exercise is evidence they are running a failed business model. With the company burning through cash and now unable to deliver the services it is supposed to be providing New Zealanders, it’s time the government sells TVNZ before this fiasco gets even worse.”
Following news that Tasman District Council would remove a number of newly installed speed bumps after receiving backlash from locals, the Taxpayers Union can reveal through the LGOIMA that the total cost of construction and deconstruction was $42,664.
"Councillors need to take a hard look at themselves when it come to this kind of waste” said Local Government Spokesman for the Taxpayers’ Union, Sam Warren.
“It shouldn’t take immense public backlash for Council to decide that these speed bumps were a bad idea to begin with.
"Before starting work on moving kerbs to make space for more cycle lanes, Tasman Council needs to think about its mistake. The costly construction and ultimate removal of the speed bumps is an easily avoided blunder.
The New Zealand Taxpayers’ Union can reveal through the Official Information Act that the Ministry of Primary Industry (MPI), Ministry of Foreign Affairs (MFAT) and Ministry for the Environment (MFE) collectively spent more than $150,000 to send ten staffers to the Bonn Climate Conference. This cost covered travel, accommodation and meals amongst other spending.
With MFAT refusing to fully release costs due to time constraints, the cost to taxpayers will almost certainly be higher than this.
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“Bureaucrats will take any excuse to hop on a plane for a holiday. In this case, ten staff hopped off to Germany at a cost to the taxpayer of 15 grand each. It seems like some staff spend more time overseas than they do in the office these days.
“That’s without even touching on the irony of logging nearly 230,000 miles combined in air travel - including legs in business class - to talk about how other people should reduce their emissions. As always. it’s rules for me and not for thee.
“New Zealand already has a world-beating way of reducing our emissions through the Emissions Trading Scheme, although ironically international air travel is one of the few things not covered by the ETS. If these bureaucrats want to put their money where their mouths are, they need to put away their suitcases, attend by zoom and save the taxpayer some money whilst they’re at it.”
The New Zealand Taxpayer’s Union can reveal through information obtained from an Official Information Request that ACC has spent more than $251,000 contracting The Research Agency (TRA) to administer a monthly survey tracking public engagement and trust.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“ACC wasting over a quarter of a million dollars on a run-of-the-mill survey shows what happens when you give bureaucrats bottomless budgets to work with. There’s not a chance waste like this would be signed off in the private sector.
“Putting aside the fact that ‘monitoring external engagement’ has little to do with ACC’s actual job, they’re not even doing this well. For the sake of a survey targeting only around 6,900 over the space of a year, $250k that should have been spent on solving real health issues is now in the pockets of some very lucky consultants.
“Taxpayers don’t expect their hard-earned money to be blown on bureaucratic exercises that do nothing to reduce injury rates or improve services. ACC needs to focus on what it was created for, not frivolous projects that don’t serve the public.”
The NZ Herald has released a story regarding Health New Zealand’s recent $934 million deficit for fiscal year 2024.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“These recent figures highlight the financial mismanagement that occurs at Health New Zealand. With news like this, taxpayers are absolutely in their right to demand answers.
“It’s not as if this $934 million deficit wasn’t preventable. Parts of this deficit include $193 million of expired Covid-19 stock, having almost 4400 staff over budget at a cost of $406 million, and finding $40 million ‘less’ in savings.
“These results demonstrate how major reform is needed at Health New Zealand. Their current trajectory of overspending more than $130 million per month is unsustainable. If this keeps up, they will be over $1.3 billion in the hole next year.
“While they may blame unreceived funding, the reality is that they aren’t providing a responsible, value-for-money service. It’s time for Health NZ show some respect to the people paying the bills and start to do a better job of balancing their books.”
Wellington City Council officials have provided figures suggesting that the council’s debt limit could triple if it does not sell its stake in Wellington International Airport.
“Doubling down on the city’s financial crisis is not the answer, and residents can’t take more punishment”, said James Ross, spokesman for the Taxpayers’ Union.
“Last year, each household in Wellington paid over $800 just to finance their council’s spiralling debt. That’s on top of more than four grand they paid in interest on central government debt.”
“And with rates also tripling over the next decade, there’s no more money to wring out of ratepayers.”
“The only answer is to cut the council’s ludicrous spending on waste, start paying off the debt and lower the debt ceilings to stop this happening again. If selling off the airport shares is what it takes to do that then councillors need to step up and do the right thing.”
The Taxpayers’ Union can reveal through the Official Information Act that the Reserve Bank has spent more than $2 million on its digital cash programme so far. The ongoing project explores the introduction of an electronic currency, and has an approved total budget of $4.7 million.
“Someone needs to tell the Governor to stick to his knitting” said Policy & Public Affairs Manager for the Taxpayers’ Union, James Ross.
“Inflation has been outside the RBNZ’s target range for 40-months now, meanwhile Adrian Orr has been busy playing about with digital cash.
“The Reserve Bank has failed to do its actual job for years. What about their performance has ever suggested that giving them millions of dollars to chuck away on pet projects would lead to a useable, secure and cost-effective outcome?
“More than $2 million dollars have been already spent on consultants, and not one person has thought to ask ‘how much will a digital cash actually cost New Zealand?’ or ‘has this worked anywhere else?’
“Even more concerning is that the true cost of the programme comes to a much higher figure when wages are included for RBNZ employees involved. While they would not provide us with specific salaries, we can work from the mid-point for their salary bands, which adds a further $1.3 million to the overall project cost so far.
“The Reserve Bank needs to quit playing around with expensive side-projects and return its core focus towards fighting inflation.”
From 2023, ACC started charging levies on Kiwis’ income who live overseas, sending 4,300 of these levy invoices in the 2023 tax year alone.
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“If you’re living overseas and working overseas, you pay taxes on your income overseas. That’s how it works for most of the world, unless of course you’re a Kiwi where you could get the luxury of having two governments rifling through your pockets.
“Why should Kiwis living overseas be forced to stump up thousands of dollars a year for services they don’t use?
“In countries like the UK, tax residency means living in the country for over half the year. In New Zealand, you get stung if you so much as pop back into the country for a few weeks a year to see the family.
“Perhaps if ACC stopped wasting money on new-age, untested nonsense and got back to focusing on care that works they wouldn’t feel the need for this double-tax rort."
Andrea Vance’s reports in The Post on the latest ructions concerning the potential sale Wellington City Council’s shareholding in Wellington International Airport Limited, where council staff had been posting information supporting the sale on the council’s social media channels and website.
Council chief executive Barbara McKerrow finally ordered the posts to be removed, but not before past and present councillors accused officials of playing politics.
Taxpayers’ Union spokesman, James Ross, stated “officials wading into a highly-charged political debate by propagandising for one side is deeply concerning. This is a live issue that’s still in need of a vote by elected councillors to resolve.
“But worse than that, councillors are saying these posts are using financial information the councillors themselves have been denied access to. Once again, councillors are being expected to try and govern the city blind, whilst officers play puppet-master behind the scenes.
“This is beyond unacceptable, and serious questions need to be asked about who’s actually running Wellington City Council. Officers have no right to dictate to elected representatives what information they’re allowed to see and when, and they need bringing to heel before the city spins further down the pan. Wellington is not Barbara McKerrow’s personal fiefdom.”
The Taxpayers’ Union – along with a hundred or so local members and supporters – presented the Hastings District Council new council chambers today in the form of a “Bouncy Council” (bouncy castle) to reflect the Mayor and councillors who are acting like children in appointing teenagers as voting members of Council Committees.
“Councillors and the Mayor are acting like children at the very time Hastings needs some adults,” Jordan Williams, the Union’s executive director said. “This is a Council having to rebuild after Gabrielle and imposing a 19% rates hike this year alone.”
“Luckily for the adolescents on the Council, Sandra Hazlehurst has been blowing more than enough hot air to inflate the five metre-high bouncy castle, with plenty spare to keep the bubble machines going.”
“On the very slim chance the Mayor missed the giant pink unicorn bouncy castle, the hundred Hastings residents turning out in the middle of a workday (and on only a few hours’ notice), and the bubble machine, it serves as a warning shot that ratepayers are sick of being taken for a ride.”
“Councillors need to get back to business, send the kids back to school, and focus on delivering value for ratepayers’ money.”
“Unfortunately the Mayor refused to front. She was probably taking a nap, or didn’t want to disturb her play time.”
The Taxpayers Union can reveal through the LGOIMA that Stratford District Council has received $344,558 for two new crossings from NZTA – with $96,230 spent on traffic management alone, and further work is required, the overall cost is set to rise.
“When ratepayers say they are unhappy, elected members must start listening or face a very difficult election result" said Taxpayers' Union Local Government Campaigns Manager, Sam Warren.
"When the mayor says its 'now or never' and is met with calls of 'never' from the council gallery, there's a very big problem when it goes unheeded.
“The June 30 cut-off for NZTA’s 'low cost, low risk safety improvement' fund has resulted in a rushed money-grab by council. One Stratford Councillor made the suggestion for a delay, which was met with applause by locals.
“As the slush fund from the previous Labour government dries up, and the country's debt remains high, councils must focus on their core activities over expensive nice-to-haves.”
The Taxpayers' Union is telling Hastings Mayor Sandra Hazlehurst to 'grow up' after she used her casting vote to give committee voting rights, and a salary, to members of the Hastings District Youth Council: school-aged kids.
"We vote for a mayor and councillors to be adult decision makers and here they are literally outsourcing to kids," says Jordan Williams, a spokesman for the Taxpayers' Union.
“This move is either a sign of utter ineptitude or a cynical move to manipulate young people so that the political balance on the council is shifted. Either way, it is utterly disgraceful."
"It's bad enough being a so-called 'youth councillor'. These school age, clipboard-bearing loners are now going to be introduced to the ratepayer tit before they're even old enough to have paid rent on a flat, let alone seen a rates bill."
"Let's get real. It's a thinly-veiled move by left-leaning councillors to stack council committees with even more idealism and inexperience. Using kids for political leverage needs to be called out for what it is."
“It's also undemocratic. These children have no democratic mandate or accountability. It's a blatant attempt to 'screw the scrum' by cynical politicians and grifters."
"Local government is in crisis and instead of the adults prevailing, Mayor Hazlehurst is inviting kids with, at best, year 10 business studies, to cast votes on governance matters of an organisation with total assets of nearly three billion."
“And what are the parameters of the Mayor's anti-democratic logic? Surely the senile and bewildered sitting in Hastings' old folks' homes should be represented too. Perhaps Grey Power should get a seat at the table? It's nonsense."
“If the councillors that supported this masquerade had a shred of decency, they would have gone to a referendum – because residents have woken up to news that literal 15-year olds are making decisions on things they know nothing about."
"Will these well-paid kids front up and be accountable to ratepayers? Or is this just a charade of politicians using kids for political ends. Time will tell."
Disclosure: Jordan Williams is a former Hastings District Youth Councillor.
Stuff this morning reported that bureaucrats who may now need to show up to work due to Nicola Willis’ new working guidelines are feeling the pinch and complaining that the directive now puts them in a position of being financially worse off.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“Bureaucrats complaining about having to show up to work exposes their double standard. The fact that many of them admit the need for people to be in the office yet are complaining about the need for them to have to show up is a classic example of ‘rules for thee but not for me’.
“Taxpayers don’t pay bureaucrats full-time salaries for part-time work, but that’s clearly what they’ve been getting over the last few years. Labour’s 18,000 extra hires still managed to deliver worse services across the board, and it’s no coincidence quality dropped like a stone when bureaucrats started spending their days sitting around in their dressing gowns.
“If they want to be called “public servants”, then they should understand that maximising their productivity is what the public need from them. Taxpayers shouldn’t have to fork out extra to fund bureaucrats’ lifestyle choices.”
The Taxpayers’ Union is calling out ANZ NZ CEO Antonia Watson for what appears to be calculated comments to promote a capital gains tax to benefit home lenders and fuel New Zealand’s residential property money wheel.
“New Zealand’s low wage economy is a direct result of under-capitalisation of the private sector and too much money going into unproductive assets and family homes,” said Jordan Williams, a spokesman for the Taxpayers’ Union.
“Antonia Watson knows that full well, but also knows that every capital gains tax that has ever been promoted in New Zealand excludes the very family family home that ANZ makes most of its profits from.”
“The reason Watson is promoting a capital gains tax is so families are even further incentivised to park their nest eggs under the roofs of their family home. That is terrible for New Zealand but great for ANZ’s bottom line and bankers’ bonuses.”
“Taxes on capital hurt investment, and they incentivise the very capital New Zealand needs to grow our standards of living to move offshore. A capital gains tax would hurt everything except the very residential property investments that ANZ makes so much coin from.”
“Watson’s self-interest is so brazen she even hid it under a veil of ‘fairness’. Predictably, RNZ swallowed it hook, line, and sinker.”
“This sort of gall nearly deserves admiration. It’s probably why the former Morgan Stanley banker pockets $1.9million as a salary.”
“If CGT proponents don’t really think these comments are calculated to help ANZ’s bottom line, and that we saw for the first time in history a bank CEO championing a policy for ‘fairness’, I have a bridge to sell them.”
Political pundits across the country spat out their coffee this morning upon turning to the NZ Herald's front page splash that Andrew Coster "speaks out on being dragged into political debate".
"Andrew Coster is either trolling the nation or has the self awareness of a paperclip," said Jordan Williams of the Taxpayers' Union.
"Coster has overseen an enormous pivot by the NZ Police towards politics and advocacy. Back in June, the Police Commissioner's alter-ego, one Andrew Coster, was doing media rounds advocating for the Government to change alcohol regulations."
"For someone now crying tears about being 'dragged into political debates', it is weird that he was literally leading Morning Report just a few months ago in advocating for minimum pricing of alcohol."
At the time, the Taxpayers' Union labelled Coster 'a constitutional barbarian' in that he was blatantly ignoring the long-held constitutional convention that Police - especially leadership - enforce the law, not lobby to change it.
"Coster has given the middle finger to the conventions he was supposed to protect. No wonder the new Government hasn't been able to express confidence in him."
"It is a sad reflection on New Zealand and our public sector that the only way the Government has been able to move Coster along, is to park him in a cushy job in another government department. His lack of judgement shows he should be no where near a leadership role. Cabinet Ministers know that but have gone along with yet another fudge orchestrated by the Public Services Commission. For those that want our public service to succeed, it is deeply depressing."
The Parliament Bill – an omnibus bill making a series of reforms aiming to modernise Parliament’s operations – has passed it’s first reading.
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“If the Government’s talking about dragging New Zealand’s Parliament into the modern age, then why aren’t we seriously discussing making the Parliamentary Service subject to the same transparency rules as the rest of the public sector?
“For too long, MPs and their staff have been able to live it large on taxpayer dollars thanks to their secret expense accounts. Despite being the people paying for all their champagne and caviar, there’s nothing Kiwis can do to find out how MPs are wasting their money.
“It took leaked stories of MPs putting duck houses and moat cleaning on the expenses tab to blow the lid on the UK’s Parliamentary expenses scandal. New Zealanders shouldn’t just have to sit around waiting for leaks from disgruntled ex-staffers before they can demand some accountability from their MPs.”
The Public Service Minister yesterday made clear her expectations for government agencies to call their staff back to their offices in an effort to improve sector productivity and support businesses struggling with reduced patronage.
Minister Nicola Willis told media that working from home “is not an entitlement” and wants to see greater monitoring and data collection around working-from-home arrangements for the Public Service.
A spokesman for the Taxpayers’ Union, Sam Warren, said:
“We welcome calls made for agencies to bring staff back to work. It's a pragmatic step towards reducing the bureaucratic inertia plaguing countless agencies since work-from-home became common under Covid restrictions.
“Remember, these are well-paid bureaucrats with average salaries of $97,000, which is funded by taxpayers. It’s not entirely unreasonable to expect them, when possible, to work onsite.
"It’s also encouraging to see that better data collection in this area is on the agenda. For months now, the Taxpayers’ Union has tried getting meaningful information from various agencies on things like data for physical staff attendance, which for the most part does not exist.
“Furthermore, arguments made that public job cuts are the sole reason for business downturn in places like Wellington are deliberately obtuse. Between 2017 and 2023, under the last Labour-led governments, the Public Service grew by 18,418 – a 39% increase. Since then, the number has reduced only by about 6,500. The truth is, there aren’t too few bureaucrats – there are just too many working from their couches.”
One News reported last evening that a council mistake in calculating direct debits has landed more than 300 Tararua ratepayers with unexpected bills. One pensioner was reduced to tears when informed she was $4,000 in arrears. The council reported that the error was caused by a systems failure, where council’s rates rebate process was not lined up with the direct debit system.
Local Government Campaigns Manager for the Taxpayers' Union, Sam Warren, said “It was not a systems failure – it was a human failure. Humans design systems and these systems should be designed so that they operate without error.
“Clearly the system design was faulty – the fault of which lies with the humans who designed it. Was any testing of the system carried out? If so, it clearly wasn’t extensive enough and that is again, human failure.
“It is unacceptable for organisations to continually blame 'system failures' in a lazy attempt to absolve themselves from their own human errors. The correct course of action here is to refund those who have overpaid, absorb the loss from those who have underpaid and cut the salaries of those humans who made the error. The Taxpayers’ Union demands accountability – will Mayor Tracey Collis do the same?”
The New Zealand Taxpayers' Union can reveal through the Local Government Official Information and Meeting Act that Gisborne District Council has allocated $7,210,000 to seven projects from the previous government’s three waters reform – better off package.
Although Gisborne District Council remains one of the few councils to keep rates increases below 10% – at 6.5%, the storm-battered region could have better allocated this funding to prevent these rises.
Local Government spokesman for the Taxpayers’ Union, Sam Warren, said:
“Reviewing these seven projects shows where the fault lies on council books. With $200k unused for management costs alone, or $400k to clean up an area for an art sculpture.
“The biggest project of $3 million to get less waste into landfill highlights the poor prioritisation of the nice-to-haves over need-to-haves strategy.
“As New Zealand’s Debt Clock ticks closer to $180 billion, councils up and down the country need to better prioritise what’s most important as the money tap for much of local government is turned off.”
The NZ Herald has today reported that, according to internal emails, TVNZ's CEO is attempting to find $30 million in savings through cost cuts and website changes.
Just last month TVNZ reported a $85 million loss for the year, leaving the public asking why these changes haven’t been made sooner.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“It’s all well and good that TVNZ has finally decided to act like a real business and find ways to minimise expenses. If only the alarm bells went off earlier! The fact that the CEO believes more than $30 million in savings can be found proves just how much fat there is to trim at the bloated state owned company.
"Had these savings been found earlier, the company would be in a far less dire situation than the one they find themselves in now. The mismanagement and lack of urgency is a prime example of why TVNZ should to be sold now while it still might actually be worth something.
“TVNZ’s CEO needs to come clean. Last year’s annual report had their CEO making more than a million dollars including a bonus incentive. This year, even though they just reported a $85 million loss, Jodi O'Donnell has taken a measly 5 percent pay cut. Will O'Donnell's savings include real cuts to the luxurious CEO pay package?
The Ministers for Climate Change and Energy have announced the launch of the Low Emissions Heavy Vehicle Fund. This fund allocates $27.7 million dollars towards a 25% subsidy towards the purchase price of low emission heavy vehicles.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“This announcement is another example of reckless government spending. If the government truly wants to reach net zero, a simple cost benefit analysis would tell them that putting this amount of taxpayer dollars towards subsidising vehicles is a complete waste of money.
“All this does is hand over hard-earned taxpayer dollars to billion dollar car companies. If small businesses understand one thing it’s how to balance the books. And common sense is to not throw away money on expensive vehicles – an investment that this government apparently thinks is sound.
“Under New Zealand’s declining emissions cap, all these subsidies do is free up emission allowances for other businesses to take advantage of, and so there is no net reduction in emissions overall. This is not an efficient use of taxpayers’ funds.
“Kiwis expect to get bang for buck for their tax dollars. If Climate Change Minister Watts truly understood just how little effect this will have on carbon emissions, he would cut this fund immediately.”
The Post has reported that nine of sixteen councillors have signed a notice of motion seeking to cancel the sale of a 34% stake in Wellington Airport. This issue was so integral to the council’s long-term plan that this could mean all the council’s planned spending, borrowing and rating might need to go back for more public consultation.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“If the sale of the 34% stake in Wellington Airport is killed this would be a significant reversal from a previously sound fiscal strategy. Not only is this poor fiscal management in the long term, but this decision results in more public spending for public consultation in the short term.
“Instead of making a fiscally prudent decision that serves as a pathway for the future, the Council is now left thinking about squandering the opportunity. Between future ramifications and current short term costs, this would only further pinch the pockets of ratepayers.
“Council needs to shift its focus back to helping hardworking ratepayers rather than pursue short-term influence over airport operations. To even consider this level of financial mismanagement shows how out of touch this council is with Wellington ratepayers.”
“Statistics New Zealand’s release today of gross domestic product for the second quarter of 2024 shows another quarterly contraction” says Taxpayers’ Union economist Ray Deacon. “Although not yet another technical recession, this will almost certainly be true with the third quarter’s result expected to also signal a further decline.
However, Statistics New Zealand data on GDP per capita reveals that this has contracted by 4.6% over seven consecutive quarters and this exceeds the decline of 4.2% over the first seven quarters of the global financial crisis. It took another six quarters after this for GDP per capita to again rise consistently, signalling real economic growth had finally returned.”
“This Reserve Bank engineered recession is serious and damaging, as much recent data indicates. Although there is some slight evidence of growing confidence, that has yet to be translated into increased investment and output in the face of continued weak consumer demand and high interest rates. The Reserve Bank must accelerate its program of reducing the official cash-rate in the light of continuing weakness in the economy and an expectation that third quarter CPI will fall under 2.5%.”
“The Government too must play its part by further spending cuts, especially at the bloated policy ministries and plethora of commissions. Strong fiscal consolidation played a big part in returning New Zealand to surplus after the GFC and this enabled debt to be paid down. The current Government must increase its efforts to achieve the same.”
Wellington Regional Council has today released documents showing that, in partnership with Metlink, more than $2.8 million in “cosmetic upgrades” has been spent on Naenae subway station. The upgrades include a $127,000 LED handrail, $29,000 on a public consultation questionnaire, and more than $159,000 on entrance signage.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“These recent reports by Wellington Regional Council are a classic example of more ‘nice-to-have’ spending from local councils.
“$127,000 on an LED handrail is shameful. With egregious spending like this, it appears that the council is attempting to maximise costs rather than minimise them.
“This latest spending spree includes $29,000 on a “public consultation questionnaire” and more than $159,000 on entrance signs. How big and bright are these signs being installed for them to cost the same amount as a brand new Porsche?
“In their statement today, Wellington Regional Council said the cosmetic changes were for ‘safety’. Surely they could have just installed some lights in the station that would have provided the same amount of safety while costing a fraction of the $127,000 now wasted.
“With a cosmetic makeover of a subway station costing more than $2.8 million, questions needs to be asked about how these spending decisions were made. Is the council deciding to now send ratepayer funds to the highest bidder?”
More than 6,500 taxpayers have filed requests under the Privacy Act to find out if their personal information was leaked to Facebook, Google, and other social media and tech companies, as part of IRD's enormous data breach that saw taxpayer information handed over for 'marketing' purposes.
Taxpayers' Union Spokesman, Sam Warren, said:
“This is the biggest breach of taxpayer privacy in New Zealand’s history, and we are only hearing crickets. Why hasn’t the Minister fronted on this yet, is he on holiday?
“Heads should be rolling at Inland Revenue. Unlike when you voluntarily provide data to third parties, Kiwis have no choice with IRD and are required to by law. With this comes the expectation of trust, which has been completely betrayed. Now there is no telling where your information might be.
"New Zealanders want to know whether their personal information has been given to overseas tech companies. In 24-hours, more than 6,500 submissions have been made on IRD-Leak.nz, demanding answers under the Privacy Act.
“The Privacy Act allows 20-working days for IRD to provide answers, but in reality, it should take no longer than a few days. They obviously have the information in digital form, it's a matter of simply data-matching to the spreadsheets they've already uploaded to Facebook."
Earlier this week, The Post reported that Nicola Willis’ newly established social investment agency is able to draw from double the budget of its predecessor.
Staff salaries at the agency are reported to be an average of $148,215, compared to the overall average salary of $97,200 across all other agencies. This move has sparked concern among taxpayers about the efficiency and priorities of government spending.
Commenting, Taxpayers' Union Communications Officer, Alex Emes, said:
“These numbers show that Nicola Willis has doubled the budget for her new Social Investment Agency. This is a clear double standard that goes against everything this government promised it would do once in power.
“The fact she is paying her bureaucrats fifty percent more than other government agencies shows clear favouritism towards a Nicola Willis ‘pet project’.
“Willis needs to start going ‘back to basics’ and stop funnelling taxpayer money towards larger budgets and higher bureaucrat perks. It’s high time to redirect this money towards hard working New Zealanders and deliver true tax relief.”
The Taxpayers’ Union has launched an online Privacy Act Request tool at www.IRDLeak.nz for taxpayers to find out whether their private information has been handed over to social media platforms by the Inland Revenue Department.
Taxpayers' Union Executive Director, Jordan Williams, said:
"Last week IRD were caught red-handed misusing private taxpayer information. Instead of respecting taxpayer privacy, they extracted the data from the tax system, shared it with their 'marketing department' and deliberately sent it onto social media companies.
"Many New Zealanders choose not to give their personal information to foreign social media giants. It's beggars belief that IRD chose to do it for them.
"Taxpayers have no choice but to share private and personal information with Inland Revenue. The quid pro quo is that the information is handled securely. That trust has been completely betrayed and justifies heads rolling at the very top.
"Instead of being upfront and truthful, IRD have now been caught lying to New Zealanders about the data breach.
"First they told media that there wasn't any complaints about the practise. That was untrue.
"Now they're trying to seed confusion by giving bogus assurances about 'hashing'. IRD's leadership team will know full well that it does not provide protection. IRD have even admitted that the whole purpose was to enable social media companies to identify and target individual and identifiable taxpayers.
"The 'hashing' is a convenient PR distraction tactic. It demonstrates a total arrogance towards taxpayers IRD are supposed to serve.
“Make no mistake, this is the biggest breach of taxpayer privacy in New Zealand's history, affecting hundreds of thousands of taxpayers, if not more. Having consulted with taxpayer groups throughout the english-speaking world, we cannot find any example of a privacy breach anywhere near this scale," said Mr Williams.
www.IRDLeak.nz allows taxpayers to file a Privacy Act request with Inland Revenue to requires the Department to inform them whether the taxpayer's private information was leaked.
For transparency, the site was commissioned and is hosted by the Taxpayers' Union. Unlike the IRD, the Taxpayers' Union respects taxpayers' rights to privacy. The site uses a New Zealand-owned and operated software tool to generate and send the Privacy Act requests.
This week on Taxpayer Talk is another episode in our MPs in Depth podcast series where we get to know Parliament's new MPs. In this episode, we sat down with National Party MP, Suze Redmayne.
Suze was elected as the MP for Rangitikei at the 2023 General Election. Suze and her husband run an award winning farm and sell their lamb under their own brands. Suze shares her life story, what drew her to politics and what she hopes to achieve during her time in Parliament. Also discussed is a number of member's bill ideas Suze is considering and what the role of government should be in the economy.
Suze's maiden speech can be watched here. Follow Suze on Facebook here.
To support Taxpayer Talk, click here
If you have any comments, questions or suggestions, feel free to email [email protected]
You can also listen to Taxpayer Talk on Apple Podcasts, Spotify, Google Podcasts, iHeart Radio and all good podcast apps.
RIP John BishopThe update below was scheduled to go out on Saturday morning, but just prior to sending we learned the very sad news that our founding Chair, former TVNZ political editor, and father to Cabinet Minister Christopher Bishop, had passed away unexpectedly. So it is a very sombre note to start today's Taxpayer Update. John was instrumental in setting up and getting the Taxpayers’ Union to where it is today. An ‘old school’ journalist in the best possible sense, John had integrity, wisdom, wit, and a kindness that will be deeply missed. For many years, he has been my mentor and friend, and I know he has been the same to many of the staff and volunteers over the last 11 years. We issued to the media a small tribute from David and me over the weekend which is posted online here. The NZ Herald's piece on John is here (although I am sure there will be more). John got to know countless early supporters and financial supporters. So I am sure you will join me in offering our condolences to Rosemary, Eleanor, Christopher and the wider family on behalf of the whole Taxpayers’ Union. Rest in peace, John. |
A new poll (and it's not good news for Chris Hipkins); even more wasteful spending on "white privilege workshops" for Wellington bureaucrats in this week's Taxpayer Update.
But first, we have to tackle the extraordinary news that IRD officials have been caught uploading taxpayer data to social media platforms like Facebook and LinkedIn.
🚨 IRD Data Leak 🚨
Thanks to the hundreds of supporters who have contacted us concerned about IRD's data leak that was reported by Radio NZ earlier in the week.
Names, addresses, dates of birth, and even details on who has tax debts and overdue student loans have been handed over to Google, Facebook, and others.
Putting aside the questions about data sovereignty – these companies are based outside of New Zealand and not under New Zealand's legal/privacy jurisdiction – it is almost certainly the worst breach of taxpayer privacy ever seen in this country.
We've spoken to our counterparts in the UK, Canada, and Australia, and this appears this is the worst data leak or privacy breach by a revenue agency in the Commonwealth.
What's worse, the IRD have been trying to downplay and obfuscate. They told Radio NZ that because the data is "hashed" there is nothing to worry about.
Our IT experts say this is absolute nonsense. The whole point of giving the data to Facebook and Google (among others) was for the companies to identify you/taxpayers online and match the data to profile(s).
It is so basic it shouldn't have to be said: taxpayers face prison if they don't give personal information to the IRD. Taxpayers are entitled to expect that information to be held in the strictest confidence.
Literally uploading the information to social media companies (or even using it for "marketing") warrants nothing short of a Ministerial investigation and heads rolling.
To our astonishment IRD are reported as saying that taxpayers cannot "opt-out" of having their information being given away. If that is true, we will need to consider all legal options. We cannot take this one lying down.
The whole team are working on this. We are still speaking to IT experts, getting legal advice, and (most importantly) advice on how to stop IRD from giving taxpayer information being given to social media companies.
MONDAY UPDATE: I've just sat down with David Buckingham, whose 'citizen journalist' efforts uncovered what IRD have been doing. The more we learn, the more alarming it becomes. Have a listen to my interview with David on our special Podcast episode here.
I am hopeful that within the next 24 hours we'll be able to give you a more thorough update and advice on how to find out whether your personal information has been leaked.
Keep an eye on your inbox tomorrow...
New Taxpayers' Union-Curia poll: good news for the governing parties 📈📊
Despite what the media might lead you believe, the public are behind Christopher Luxon's Government based on our hot-off-the-press Taxpayers' Union-Curia poll.
Based on this month's numbers, the Government would maintain a comfortable majority in Parliament if the elections were held today.
National are up one point compared to our last (July) poll, to 39 percent. ACT are down a smudge (0.3 points) to 8.8 percent while New Zealand First are down 0.5 points to 6.8 percent.
Labour are up one point to 27 percent, while the Greens are down 1.5 points to 11.0 percent, and Te Pati Māori up 1.5 points to 5.0 percent.
Translated into seats, this would give the centre-right bloc 67 seats (no change) and the centre-left bloc 53 seats (down 2).
But the real worry for Labour is that Chris Hipkins' support has taken a big hit. Hipkins' net favourability (favourable less unfavourable) has fallen 16 points since July, down to negative 10 percent. By comparison, Luxon's has risen 1 point to positive 7 percent.
And the drop is reflected in people's preferred Prime Minister. Hipkins has dropped 6 points to 13 percent, although Luxon also dropped 2 points to 33 percent.
The full poll results are on our website here. Or if you're after all the details that the PM and Leader of the Opposition get to see, join our Taxpayers' Caucus for the datasets and correlations.
Take the hint, Chris... 👀
At risk of doing a One News poll "Maiki spin", wise readers of Taxpayer Update may conclude that it is no coincidence that the same month Mr Hipkins has been talking about new taxes, his support has nosedived. 👎
Perhaps voters still haven't forgiven the last Government for its six years of wringing them dry with higher taxes, while the quality of spending deteriorated as fast as the quantity ballooned?
Here's a friendly tip for Chris Hipkins: focus on ideas about how to get government spending under control and growing the economy, before you keep talking about the next Labour government taxing New Zealanders even more.
And they've really gone fill tilt. A capital gains tax is one thing, but wealth taxes are such a backwards policy that even make socialists blush.
Right now, New Zealand is the single worst OECD country at attracting investment (until recently we were only better than Mexico, but even they are now ahead of us).
We need Her Majesty's Opposition to be leading debates on how New Zealand can attract investment, quality jobs, opportunity and growth – not taxes to chase it all away.
Wealth taxes: a sure way to for New Zealand to be poor 😔
Writing for Stuff's The Post, Alex pointed out what happened in Europe when wealth taxes were tried.
"In France, the tax caused 10,000 people and $35 billion to pack up and leave. Not only that, but the wealth tax cost European countries twice as much in lost VAT (similar to New Zealand's GST). So with Hipkins' proposal, the government can say au revoir to their sales tax take as well."
Countries that have tried wealth taxes have ended up poorer, tax revenue fell, and countries that aren't as interested in economic vandalism are more than happy to scoop up all the jobs looking for someone friendlier.
Come on Chris, you can do better.
But good news from The Post! You're all rich and powerful 🎉🥳🎉
If you missed Alex's opinion piece, that wasn't your only chance to see the Taxpayers' Union in the papers this week.
Remember a few weeks ago, we dug out that MBIE had wasted $650,000 on 'white privilege workshops'? Well your humble Taxpayers' Union kept digging, and surprise surprise found more.
Another $300,000 has been pumped into the pockets of something called the Pakeha Project. Bureaucrats at StatisticsNZ, the Ministry of Justice, and - you guessed it - our ol' friends at MBIE have been getting lessons in "questioning the algorithms of whiteness that discipline our world.'
And guess who's paying for it all? You the taxpayer.
Rather than spend your tax money on quaint old fashioned things like government services, these departments are pumping straight into a string of woke organisations no one has ever heard of.
Naturally, the Pakeha Project slung some mud back after we exposed their grift, saying we at the Taxpayers' Union 'only represented a tiny percent of taxpayers who had a lot of power and money'.
So good news! Apparently, being one of the 200,000 taxpayers who receive our updates, you're in the money! Congrats.
We still say these pointless workshops are a waste of taxpayers' money, and they're well past due to be scrapped. Sign the petition here to get bureaucrats out of these "white privilege" workshops and back at their desks.
MFAT's failing grade for spending cuts 📚💰
The culture of waste goes much deeper than that though, and the Ministry of Foreign Affairs and Trade has been in the spotlight this week.
It emerged that Foreign Minister Winston Peters had been personally lobbying the PM to avoid cuts, making out that there was no way to find savings without closing down a couple of embassies. MFAT's savings total the grand sum of less than one percent of its budget.
Back in May, we called out MFAT's simple tech projects massive budget blowout, which more than doubled the cost to $33 million. This week, our researchers also rooted out that MFAT has once again spent $5 million on private school fees for diplomats' kids – often in countries with public education systems better than New Zealand's own schools!
There's no shortage of people queueing up to be diplomats. MFAT aren't going to face a recruitment problem if they scrap some of their gold-plated perks.
Why, when our education standards are plummeting, are we paying for the silver-spooned families of diplomats to swan around in swanky overseas boarding schools?
Fees in the USA, UK, Australia, and Belgium alone totalled over $1.25 million dollars. Let us know what you think.
Wellington's Metlink wasteful spending has a bad smell about it 💲🚽🤢
If you thought MFAT were bad for flushing money down the drain, Wellington's always there to show you that things could be worse.
Austin dug out Wellington's transport agency Metlink's latest gold-plated project: building just seven toilets for their drivers, costing whopping $1.3 million dollars. That's $185,000 per loo!
No one's saying drivers don't need the loo, but as David Farrar pointed out over on Kiwiblog, companies offer commercial toilet blocks for less than a ninth of that cost. The question is, why does every simple project in the capital seem to cost an arm and a leg?
Talk about taking the... errr, let's not go there.
MP's in Depth: David MacLeod 🎙️
Just before he took off, Connor sat down with National Party MP David MacLeod as part of our Taxpayer Talk: MPs in Depth series.
David is the MP for New Plymouth and was elected at the 2023 general election. He spent 22 years on Taranaki Regional Council, including 15 years as the Chair. he has also been a director of some significant organisations including Port Taranaki, Fonterra and Predator Free 2050. Early in his career, David was an electrician and eventually took over the company he worked for and grew it to more than 100 tradespeople.
In his podcast, we explore what drives David, why he wanted to become an MP, and what he hopes to achieve during his time in Parliament.
Listen to the episode on our website | Apple Podcasts | Spotify | iHeart Radio
Thanks for your support.
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Taxpayers’ Union comment on passing of founding Chair, former TVNZ Political Editor, remarkable New Zealander
The co-founders of the Taxpayers’ Union - David Farrar and Jordan Williams - are sad to reflect on the unexpected passing of John Bishop, who chaired the organisation’s Board from the Union’s inception in 2013 until 2017.
“John should be saluted for having the guts to front the Taxpayers’ Union in its infancy, knowing full well that it posed a reputational risk,” says David Farrar.
“Most political start-ups fall flat on their face, and John took on the unpaid role because he believed the organisation we were trying to create was needed.”
"John was always calm, collected and thoughtful. He always had good humour under pressure."
Jordan Williams said “John’s experience as a Chief Parliamentary Reporter and Political Editor at TVNZ and reputation for 'old-school' journalistic integrity was the perfect fit for helping create the fast-paced comms-based think thank tank that is the Taxpayers' Union."
"John’s steady and wise counsel for me over the last eleven years will be deeply missed."
The co-founders of the Taxpayers’ Union - David Farrar and Jordan Williams - are sad to reflect on the unexpected passing of John Bishop, who chaired the organisation’s Board from the Union’s inception in 2013 until 2017.
“John should be saluted for having the guts to front the Taxpayers’ Union in its infancy, knowing full well that it posed a reputational risk,” says David Farrar.
“Most political start-ups fall flat on their face, and John took on the unpaid role because he believed the organisation we were trying to create was needed.”
"John was always calm, collected and thoughtful. He always had good humour under pressure."
Jordan Williams said “John’s experience as a Chief Parliamentary Reporter and Political Editor at TVNZ and reputation for 'old-school' journalistic integrity was the perfect fit for helping create the fast-paced comms-based think tank that is the Taxpayers' Union."
"John’s steady and wise counsel for me over the last eleven years will be deeply missed."
"John was a remarkable New Zealander. On behalf of the whole organisation, we express our deepest sympathies to Rosemary, Eleanor, Christopher and the wider family," said Mr Williams.
The Taxpayers’ Union can reveal that MFAT has once again spent almost $5 million dollars on private school fees for MFAT employees between 1 July 2023 and 30 June 2024.
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“With Kiwis crushed under their tax burden, all government departments should be looking to make meaningful savings. Bureaucrats and ministers across the board think their department needs to be the special exception, but the explosion in staff numbers since 2017 proves that just doesn’t hold water.
“The $33m blown-out cloud project at MFAT revealed earlier this year shows the idea that there’s no fat to trim at MFAT is nonsense. Slap on a $5 million a year private school bill for the silver-spooned families of diplomats and it’s hard not to spot areas for savings.
“Kiwis at home are struggling to make ends meet. Government employees are getting private education for their kids free of charge thanks to the hardworking taxpayer, even in countries where the state education system ranks higher than New Zealand’s. The hypocrisy is palpable."
This week on Taxpayer Talk is another episode in our MPs in Depth podcast series where we get to know Parliament's new MPs. In this episode, we sat down with National Party MP, David MacLeod.
David is the MP for New Plymouth and was elected at the 2023 general election. He spent 22 years on Taranaki Regional Council, including 15 years as the Chair. He has also been a director on some significant organisations including Port Taranaki, Fonterra and Predator Free 2050. Early in his career, David was an electrician and eventually took over the company he worked for and grew it to more than 100 tradespeople.
In the podcast, we explore what drives David, why he wanted to become an MP, and what he hopes to achieve during his time in Parliament.
David's maiden speech can be watched here. Follow David on Facebook here.
To support Taxpayer Talk, click here
If you have any comments, questions or suggestions, feel free to email [email protected]
You can also listen to Taxpayer Talk on Apple Podcasts, Spotify, Google Podcasts, iHeart Radio and all good podcast apps.
RNZ reported this morning on concerns that IRD has been sharing details of thousands of taxpayers with internet giants such as Facebook. The data includes taxpayers’ date of birth, phone numbers and contacts.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“These reports that the IRD is leaking taxpayer’s data to big tech giants without notice is a violation of millions of Kiwis’ privacy. Hardworking Kiwis are the reason the IRD and government are able to operate, and leaking their personal phone numbers, contacts and date of birth to benefit overseas billionaires is unacceptable.
“IRD’s defence that ‘they are fully compliant with the law’ is truly disappointing, and doubling down on failing to protect Kiwis’ privacy is embarrassing. International counterparts including European and American regulators are clear that the tools used by the IRD are not sufficient to protect taxpayers.
“Hardworking taxpayers don’t expect to have their data handed over to tech firms without their knowledge. If the IRD can’t be trusted to protect people’s sensitive data, then frankly who in government can? Those responsible need to be held accountable
🚨🚨 APOLOGY 🚨🚨
Green Councillor demands we set the record straight
In the last edition of Taxpayer Update James told you about Greater Wellington Regional Green Councillor Thomas Nash who led the local government bemoaning criticism of Prime Minister Christopher Luxon's speech to local councils where the PM told them to "get back to basics" and stop wasting ratepayer money.
According to Nash, the PM was totally out of line and in fact councils are doing a good job with ratepayer money... (seriously, what planet is this guy on?!).
As revealed by your humble Taxpayers' Union (and also covered in Stuff's The Post here) the problem for Nash is that his own Council isn't practising what he preaches. Nash is the Council's Transport Committee Chairman but:
In just two years, Cr Nash and his gang have spent more than $200,000 jet-setting around the world. In fact, the Greater Wellington Council is so generous with the business class travel, it appears to spend more than every other Regional Council combined.
Las Vegas, Spain, Germany. You name the place and they were there spending ratepayers' money, but the undisputed pièce de résistance was a $900-a-night stay in London's glamorous Hyatt Regency.
While ratepayers might be having sleepless nights, no such fears for Councillor Thomas "no fat to be trimmed" Nash who we assume sleeps like a log. Perhaps wrapped up in the Hyatt Regency's Egyptian cotton in those super-king-sized beds...
Councillor Nash hit the roof. In fact he even threatened to call in the lawyers!
His issue? Not that we criticised the hypocrisy of his comments, or even the sky high flights and international travel spending our research team unearthed.
Rather Nash is furious with the suggestion that he personally stayed at the Churchill Hyatt Regency in London and/or enjoyed the luxury of those ratepayer funded Egyptian cotton sheets.
Here at the Taxpayers' Union we strive for accuracy and where we get it wrong, we're happy to make corrections and put it right.
We take Councillor Nash's word that the pleasure of staying at London's $900-a-night glamorous Hyatt Regency was in fact reserved for his colleague: Regional Council Chair, Daran Ponter. Per Councillor Nash's insistence, we hereby apologise for the assumption (and that he missed out).
Wellington City "no fat to be trimmed" Council's new pedalling palace ✨🚴🏰✨
Speaking of Wellington, a few weeks ago Wellington ratepayers were up in arms over an $84,000 bike rack, which had less than three bikes using it per week.
But in what is surely an emotional support effort to make Auckland ratepayers feel slightly less aggrieved with the costs of the "Super City", Wellington has done one better!
It turns out that an $84,000 bike rack is perhaps an absolute bargain.
A new bike rack has been discovered! It was recently constructed opposite the Council's office (which, ironically has an existing bike rack right outside – weird they didn't see it).
This new bike rack cost ratepayers a staggering $563,000.
When the story broke, the office was pondering "Does it come with a red carpet, heated floors or perhaps a bike wash?" After all, for that cost, they could have built a house!
So we sent young Alex up the road to take a look:
Wellington's Mayor, Tory Whanau, says "there's no fat to trim" they've searched high and low to find every saving they can for Ratepayers. If only she'd literally looked out her window to the street below. 🤦
And according to the Rates Dashboard, Wellington City Council is upping rates by 17% this year. While Tory Whanau might not consider it high, it's getting hard to argue that council taxes are out of control when [checks notes] the lRD are now saying rates are unjustifiably high! 🤯
Even the IRD knows you're paying too much council tax! 💰💰💰
How many times have you heard council officials claim that rates are jumping because they've been kept artificially low for years. We all know this isn't exactly true, but mayors and councillors need some excuse for this year's latest crop of double-digit council tax rates hikes.
On average the rates burden in OECD countries – loosely meaning developed countries – is about 1.0 percent of GDP. In New Zealand, it's a whopping 1.9 percent of everything the country produces.
We've been banging the drum for years that bureaucratic bloat, mission creep, and wasteful spending are why our councils can't keep the books black, and here's the proof. Who saw that coming from the IRD of all places?
Speaking of the IRD, we've been doing some digging into the IRD's pandemic cost of living payments.
Just what do bureaucrats have to do to get their marching orders? 🤔
The cost of living payments during the pandemic came to a cost of $570 million. The least we can expect when the Government's sloshing around that kind of cash is some attempt to make sure it ends up where it's needed.
RNZ scooped a month ago that less than 14 percent of the 80,000 payments to people who were ineligible, had been recovered. Rather than trying to get the money back, the IRD has just been asking very nicely if people would consider give back the cash they took without being entitled to.
When a stuff up costs tens of millions, naturally we assumed that someone, anyone even partially responsible, would be fired.
So given the egg on the face of the tax man, we wanted to know how many officials paid the price, while the taxpayer picked up the bill.
Thanks to the Official Information Act, we can reveal that despite the armies of bureaucrats, audit teams, and investigators who came after you if you stuffed up your taxes, when the IRD make a stuff up, not only did no one get sacked, not a single person even got a slap on the wrist reprimanded! Not even one.
And the worst part? Not a single individual was "deemed accountable".
So just how hard is it to be sacked in Wellington?
We say, that this sort of bureaucratic shoulder-shrugging where no one is ever to blame, no one cares how money is lost and no one appears to even consider it a good idea in ensuring it doesn't happen again is why our public services are so broken (and expensive).
The IRD are quite happy to pour money down the drain, but what about Watercare pouring money into the river?
Watercare's $20 million secret 🤫🤫🤫
The Herald this week reported Watercare – Auckland's water provider – had signed up to pay $20 million dollars to Waikato-Tainui's governing council. That's $1 million a year, for 20 years, on top $2 million a year already given to the co-governed Waikato River Trust for river clean-up.
And this terrible deal for ratepayers was kept away from the public by Watercare.
"Ratepayers deserve transparency on issues involving this sort of money, especially when the cost-to-benefit for such a transaction remains murky at best."
To add ratepayer insult to injury, Watercare bosses either wouldn't (or couldn't) provide an explanation for why these payments were kept secret. Either way, it's no way to build trust with the ratepayers who pay the bills.
If a freedom of information request hadn't stumbled across these payments, ratepayers would never have known about these sorts of "smoke-filled room" agreements.
I've asked the research team to look into the issue in more depth. Watercare were caught, but the question remains whether these sort of murky closed-door bargains (where iwi consent is traded for ratepayer cash) are happening elsewhere. We'll keep you posted...
Don't tell anyone but... being a diplomat's not such a bad life 🏫 ✈️
Ever stop to think about diplomats living the high life? It's a tough job for the families, sure, but nothing flash boarding schools and a few butlers won't sort out.
Just for the families of two positions – Trade Commissioners and Regional Directors – in the 2022/23 year, New Zealand Trade and Enterprise spent $1.4 million on private education costs, $150k on staff at their accommodation (i.e. diplomat's homes), and $200k for their private vehicles.
Not a bad life, all things considered.
MP's in Depth: Jamie Arbuckle 🎙️
A few weeks back, Connor sat down with National Party MP Jamie Arbuckle for this week's episode of Taxpayer Talk as part of our MPs in Depth series.
Jamie was elected on the New Zealand First list at the 2023 General Election, Jamie also remains a current Marlborough District Councillor, a role he has held for fourteen years. Jamie has a horticultural background and spent many of his early years in and around the fruit industry. In the podcast, Jamie discusses why he wanted to be an MP, what drew him to New Zealand First, and some of the areas of law he would like to see change in New Zealand.
Listen to the episode on our website | Apple Podcasts | Spotify | iHeart Radio
Thank you for your support.
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The New Zealand Taxpayers’ Union can report through an Official Information Act that Metlink has paid $1,300,245 dollars (inc. GST) for a project to install seven toilets in Wellington, exclusively for the use of bus drivers. The locations of the toilets include Houghton Bay, Darlington Road, Wilton, Mairangi, Lyall Bay, Highbury and Karori.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“This latest waste story is another example of government failing to deliver on the basics. Spending a penny is one thing, but spending 130 million pennies for just seven toilets takes the biscuit.
“At an average cost of over $185,000 per toilet, it makes you wonder – are the seats made of gold? While looking after bus drivers is important, that money could have surely gone further if spent better.
“Through only a quick Google search, Metlink could have bought seven high end portable toilets that would have cost below $2,000 each. Not only that, with the money left over, they could have hired another twenty full-time drivers. Surely that would have helped with the constant bus delays more than installing seven loos?
“Metlink needs to start thinking about where they get their money from. Ratepayers are paying their rates with the expectation that they are paying for busses that will be on time, not on frankly ludicrous toilet spending. To waste a million dollars of ratepayers’ hard-earned money in a time when Kiwis are facing a cost-of-living crisis shows how out of touch they are with the people they are supposed to serve.”
The New Zealand Taxpayers Union can reveal through the Local Government Official Information and Meetings Act that South Taranaki District Council’s new cultural centre (Te Ramanui O Ruaputahanga) has blown out from a starting point of $8 million to $20.1 million.
As Prime Minister Christopher Luxon told mayors and councillors who attended the Local Government Conference two weeks ago, ratepayers are sick of white elephants and non-delivery, the days of handouts are over, and it’s time to stop wasteful spending.
Local Government spokesman for the Taxpayers’ Union, Sam Warren, said:
“The Prime Minister has gotten this right. Councils are once again wasting too much of ratepayers’ money on vanity projects to serve their own egos. Local government needs to return focus to roads, water and rubbish – not prioritising nice to have pet projects to make themselves look better.
“South Taranaki residents are going to be paying for this centre, which they didn’t ask for, long after the Mayor and Councillors are thrown out. With a 11.1% rates rise locked in, funding would have been better put towards paying down debt, or prioritising other key areas. Ratepayers have already told council they want the focus to be on roads, water and rubbish, it’s time for New Zealand councils to take note.”
Wellington City Council has spent $563,000 to install a single bike rack opposite the council’s office on the Terrace. The bike rack has space for just 24 bikes. This comes only weeks after an $84,000 bike rack was reported on by the Post.
Taxpayers’ Union Communications Officer, Alex Emes, said:
“These latest figures on the costs of Wellington City Council’s latest bike rack have truly humbled the Taxpayer’s Union. Imagine a Council so incompetent it can make its previous $84k bike rack blowout look almost reasonable in comparison.
“Wellington City Council needs to let ratepayers know what other special hidden features are included with the masterpiece. Does it come with a red carpet, heated floors and a bike wash? With a price tag over half a million dollars, considering you could build a 3 bed detached house for the same amount of money I’m sure Wellingtonians can expect all the bells and whistles from this latest pedalling palace.
“Tory Whanau says there’s no more fat to be trimmed from her council. Especially with another bike rack only 50m away, how many of these is she planning on purchasing? In a time when Wellingtonians are fighting to keep food on the table and meet the cost of their skyrocketing rates bills, the mayor needs to cut the wasteful spending on bike racks and realise its hardworking Kiwis money she is squandering.”
Wellington Mayor Tory Whanau was reported in this morning’s The Post as saying spending was jumping across all councils because rates had been "artificially low for decades".
Commenting on this, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“Mayors like Whanau need to stop making excuses for their own failures. With Inland Revenue recently reporting that Kiwis are paying almost twice the OECD average in rates, the issue definitely isn’t that Councils haven’t been able to fleece enough money out of ratepayers.
“Council spending is the problem, and Whanau’s council almost tripling rates over the next ten years is just papering over the cracks. Tearing up the city for cycleways, funding convention centres by wringing businesses dry, and a town hall blowout costing households up to $4,000 each are the real problems facing Wellington ratepayers.
“When Whanau said there’s “no more fat to be trimmed” after the recent LGNZ conference, it’s frankly laughable. Wellingtonians might take their council more seriously on financial matters if they could manage a single project without blowing the budget.”
Despite Kaikōura District Council’s project to rebuild the Waiau Toa/Clarence River Glen Alton bridge after the Kaikōura earthquake being eight years deep, the Council have still not even managed to gain the appropriate resource consents or buy the necessary land. This is despite the New Zealand Transport Agency’s 95% subsidy of the project expiring in only 10 months’ time.
Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:
“The recent construction news - or lack thereof - regarding the Waiau Toa/Clarence River Glen Alton bridge is a prime example of how councils are failing Kiwis. Kaikōura’s council fumbling of a $13.5 million grant from NZTA and failing to sort the proper resource consents eight years into the project is an utter embarrassment.
“Is it any wonder New Zealand is facing an infrastructure crisis when even Councils themselves can’t wade through planning red tape without nearly a decade of back-and-forth talking shops? Clearly wholesale RMA reform is long overdue.
“Kaikōura District Council is being offered taxpayers’ money hand over foot for this project, and they still can’t get it right. When Luxon told councils that Kiwis expect them to focus on getting the basics right, this is exactly the sort of fiasco he was rightly calling out.”
This week on Taxpayer Talk is another episode in our MPs in Depth podcast series where we get to know Parliament's new MPs. In this episode, Connor sat down with New Zealand First MP, Jamie Arbuckle.
Jamie was elected on the New Zealand First List at the 2023 General Election. Jamie also remains a current Marlborough district councillor, a role he has held for fourteen years. Jamie has a horticultural background and spent many of his early years in and around the fruit industry. In the podcast, Jamie discusses why he wanted to be an MP, what drew him to New Zealand First, and some of the areas of law he would like to see change in New Zealand.
Jamie's maiden speech can be watched here. Follow Jamie on Facebook here.
To support Taxpayer Talk, click here
If you have any comments, questions or suggestions, feel free to email [email protected]
You can also listen to Taxpayer Talk on Apple Podcasts, Spotify, Google Podcasts, iHeart Radio and all good podcast apps.
The Taxpayers’ Union says New Zealanders can confidently welcome the departure of Treasure Secretary Caralee McLiesh, who is headed back to Australia and has made a departure swan song calling for a capital gains tax to help paper over unsustainable government finances.
Responding to the comments, Taxpayers’ Union Executive Director, Jordan Williams, said:
“A generation ago, Treasury bosses were focused on growing the economy and New Zealand’s economic prosperity.
"Following the disastrous tenure of both Gabriel Makhlouf and Caralee McLiesh’s lacklustre performance, taxpayers would say ‘good riddance’ to Treasury bosses who are more interested in growing and funding the size of government, rather than growing the economy.
"The two most important decisions of Nicola Willis this term are her picks for the heads of Treasury and the Public Service Commission.
"Willis should be looking outside the blob and take inspiration from the likes of Sir Roderick Dean and Graham Scott, and a generation of thought leaders who put New Zealand back on track in the 80s and 90s.
"You don’t need decades of public sector experience to work out that much greater fiscal discipline is required to rein in clearly excessive government expenditure.
"Treasury should be the cheerleaders of fiscal discipline, not the excuse-makers demanding new taxes to pay for politicians' folly."
An IRD report has today confirmed what many ratepayers have long suspected; New Zealand households are paying almost double the amount of rates, or similar land tax equivalents, than the average of its OECD neighbours.
Commenting, Local Government Campaigns Manager for the New Zealand Taxpayers’ Union, Sam Warren, said:
“This report will make for grim reading for many Kiwis struggling with paying their rates.
“The average percentage of rates collected by Councils, comparative to GDP, sits at 1% in the OECD. Disturbingly, the revenue collected through rates in New Zealand is significantly higher than this average of 1.9% of GDP, nearly twice the amount.
“The report confirms we don’t have a revenue problem, but a spending problem. We are paying more property taxes than our OECD counterparts, with compounding rates increases in the pipeline, and no end in sight.
“Councils have long failed to keep costs low while staying on top of declining local infrastructure. What Kiwis are left with is rolling rates increases of more than 14% percent across the board just this year alone, highlighted in the 2024 Taxpayers’ Union Rates Dashboard.
“Prime Minister Christopher Luxon was recently met with jeers and scepticism from a room full of mayors and councillors when told they must go to greater lengths to rein in spending. Compared to our overseas equivalents, alarm bells should be ringing that more must be done to get us closer to the OECD average, or ideally, below.”
Last week, Christopher Luxon had a good go at wasteful local councils, telling them that the big spending 'party is over'. And boy, did they take it personally!
Ever wondered why everyone who works in local government always has such a perfect tan? 🤔🏝️
Scores of councillors took to social media crying that there is "no more fat to be trimmed", and who was leading the charge? Greater Wellington Regional Council's Transport Committee Chairman, Green Party Councillor Thomas Nash.
Just by luck, one of our young researchers happened to dig out Greater Wellington Regional Council's international travel bill... And as covered in this morning's Weekend Post, (surprise, surprise) they are not practising what they preach.
In just 2 years, Cr Nash and his gang have spent more than $200,000 jet-setting around the world. In fact, the Greater Wellington Council is so generous with the business class travel, it appears to spend more than every other Regional Council combined.
Las Vegas, Spain, Germany. You name the place and they were there spending ratepayers' money, but the undisputed pièce de résistance was a $900-a-night stay in London's glamorous Hyatt Regency.
While ratepayers might be having sleepless nights, no such fears for Councillor Thomas "no fat to be trimmed" Nash who we assume sleeps like a log. Perhaps wrapped up in the Hyatt Regency's Egyptian cotton in those super-king-sized beds...
Creative NZ change funding rules to draw curtain on accountability? 🤫
For as long as the Taxpayers' Union can remember, arts funder Creative NZ has been making questionable decisions with taxpayer money. From plays about menstrual cycles to creating "Indigenised Hypno-soundscapes", to poetry about "love in the time of climate change", the grifts run deep.
So when our research team went searching on the Creative NZ website to review the latest funding round, we were curiously left with more questions than answers.
Rather than make more sensible decisions, the boffins at Creative NZ are living up to their name: they have changed the official funding rules so that instead of funding projects they are now just funding organisations (nudge, nudge, wink, wink) and only publicising the total amount funded not the amounts applicable per project, organisation, or artist.
Here at the Taxpayers' Union, we say you are entitled to know where your money is going and what for
We have written to Creative NZ's bosses, and the Auditor General who has the power to demand more clarity. We'll keep you posted.
"Danger, danger, danger!" 🚨🚨🚨 Government owned banks pose increased risks for taxpayers
The Commerce Commission has released a report on banking competition in New Zealand and it’s pretty clear that things aren’t as competitive as they should be. A big part of the problem is the tangle of red tapes that make it almost impossible, and far too expensive, for new entrant to get a foothold in New Zealand, even if they already operate banks overseas.
But one of the recommendations in particular rang alarm bells at the Taxpayers’ Union. The report calls on the Government to look for ways to pump more money into Kiwibank, hoping that with more cash, Kiwibank could grow, compete better, and push other banks to offer Kiwis a better deal.
If economic and finance history has taught us anything, it is that from a taxpayer perspective, government-owned banks are inherently risky. They are vulnerable to political pressure to make dumb uneconomic decisions.
But the way to help Kiwibank grow is not to pump more taxpayer money into it. Instead, the Government should sell Kiwibank to private investors who can fund this growth themselves and focus on long-term success rather than just the relatively short political cycle. Former Minister for State Owned Enterprises, Richard Prebble, wrote about that in the Herald – we reckon he’s bang on.
New Zealand has had many bank failures.
The BNZ has failed multiple times. The 1894 bailout of the BNZ cost 46.5% of the government’s annual revenue representing 6.1% of the country’s GDP.
Every government venture into banking has been a failure.
When I was a finance minister, we discovered all the government-owned banks were insolvent.
Inflation was in double digits. The Post Office Savings Bank paid its mainly low-income customers just 3% and would not lend to them. The bank required a cash injection. Selling to a bank that would treat customers better was a no-brainer.
The Rural Bank was a mess with many bad loans. Selling the Rural Bank to Fletcher Challenge in 1989 was a great deal for the taxpayer but awful for the buyer.
The Development Finance Corporation, DFC, had engaged in reckless high-risk lending. The DFC needed capital. The Japanese who bought the DFC were horrified at what they found. To avoid reputational damage the government made a multi-million settlement.
The BNZ had engaged in risky lending to companies like Equiticorp. It was also insolvent. This time the bailout cost the taxpayer around 2% of the GDP of the country.
The government is hopeless at running a bank.
Banking is a risky business, borrowing short and lending long. During the GFC, the world’s largest bank, the Bank of Scotland, failed. In this country, most of our finance houses collapsed.
New Zealand’s small economy is vulnerable to external economic shocks. Our history tells us that when the owners of a bank are New Zealanders when the bank is in financial difficulty the shareholders are also in trouble and cannot help.
Suggestions that the government should bank with Kiwibank or that school children be encouraged to be depositors would mean any crisis in Kiwibank would have a bigger impact. [continue reading]
We agree with the Commerce Commission that the Government should promote more banking competition. But we also agree with Prebble that government-owned banks are a nightmare.
The solution isn't too hard: Sell Kiwibank and cut the regulatory red-tape that is keeping out competition.
Since 2016, Kiwibank has only paid taxpayers a dividend once, and that was just $14 million. Considering the bank is worth around $2 billion, that’s a terrible return for taxpayers—we’d actually earn more if we just left that money in a basic savings account!
Selling Kiwibank could allow the Government to pay down debt (tick tock, tick tock, goes the National Debt Clock), saving Kiwis hundreds of millions of dollars in interest payments, while also creating a more innovative, privately-owned Kiwibank that’s more motivated to offer better services.
Connor spoke to Michael Laws on The Platform to make the case.
Te Mana o te Wai (the mana of the water) still costing ratepayers millions 💦
With ratepayers on the hook for thousands each to protect water’s spirit and lifeforce, your humble Taxpayers’ Union has been banging the drum for months about the enormous costs of Te Mana o te Wai.
With households in towns like Alexandra and Clyde potentially getting stung by up to $50,000 per household, to comply with cultural requirements (such as not letting water bodies mix), these new requirements cannot be ignored.
The good news is it looks like someone at the top is listening. Minister Penny Simmonds put Otago Regional Council on the naughty step, with a letter telling them to get their priorities straight and front up on the costs of their Te Mana o te Wai work stream.
But these costs aren’t going away. We’re making steps in the right direction, but clearly it’s time to just chuck Te Mana o te Wai on the scrap heap.
If you haven't already, send the Ministers a message telling them to scrap Te Mana o te Wai completely.
Taxpayer Victory: Judith Collins cuts funding to space programme
Also this week, we congratulated Minister Judith Collins for declining further taxpayer-funded corporate welfare for the struggling Tāwhaki National Aerospace Centre in Christchurch.
Despite $30 million in handouts so far, based on wild promises of 1300 high-paying jobs and $2.4 billion in economic benefits, the centre has failed to attract international customers and risks becoming an even bigger money pit.
The crazy thing is that much of the taxpayer-funding this 'spaceport' has received to date should never have occurred because it wasn't eligible. The 'Regional Strategic Partnership Fund' was a slush fund intended to go to regions outside of Auckland, Wellington and Christchurch. But given that rocket launches make great photo opportunities, the Cabinet at the time decided to bend the rules and fund a runway to the tune of $5.4 million anyway despite the site being located in Christchurch.
The failure of this supposed 'investment' to deliver any returns to the taxpayer highlights exactly why it's never a good idea to let politicians and bureaucrats gamble taxpayer money on private ventures.
Taxpayer Talk – MPs in Depth with National Party MP Rima Nakhle🎙️🎧
This week on Taxpayer Talk, we sat down with National Party MP Rima Nakhle.
Rima was elected as the MP for Takanini in the 2023 Election. She was born in Australia where she graduated from Western Sydney University with a Bachelor of Laws and was admitted to practice in New Zealand in 2014. Rima shares her journey into New Zealand politics and discusses her proud Lebanese ancestry and her role in running a successful emergency and transitional housing service.
Listen to the episode on our website | Apple Podcasts | Spotify | iHeart Radio
Enjoy your weekend.
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Media Mentions:
Newstalk ZB Midday Edition: 24 August 2024 [1:50]
Stuff Damien Grant: We should debate by challenging ideas, not by silencing those we dislike
RNZ Mediawatch: Holding to account, holding the line on media freedom [31:30]
BusinessDesk Govt tries to take heat out of fast track debate with changes
PMN Pacific, Māori politicians back four-year council term
Herald Taxpayers’ Union behind ‘civic pulse’ survey of councillors
Kiwiblog Which local government CEOs are overpaid or underpaid?
The Post Luxon’s bad-mannered exercise in selective hindsight
Newstalk ZB Early Edition with Ryan Bridge [1:55]
HRD Seymour defends new Regulation Ministry's higher-than-average wages: reports
Local Government Magazine Removing well-being responsibility from local government
The Platform Jordan Williams on Māori Influence in the Fast-Track Bill
Wairarapa Times Age Former CE’s big pay day 100 days in the frame [Print only]
The Post Beehive Briefing: Luxon ditches the suit in Tonga
Northland Age From the other side: Local leaders give the PM a run for his money [Print only]
Kiwiblog He didn’t keep his job
RNZ The Panel with Mark Sainsbury and Sue Bradford [14:25]
The Post Greater Wellington Regional Council spent $200k on overseas trips
TVNZ has recently reported that they have lost over $85 million during the 2023/24 fiscal year. This comes off the back of huge executive bonuses, program cancellations and falling trust ratings.
Commenting on these announcements, Taxpayers’ Union Communications Officer, Alex Emes, said:
“TVNZ’s abysmal $85 million loss, falling program quality and failure to return a dividend in 9 of the last 12 years demonstrate why the Government needs to cut their losses and sell the failing broadcaster.
“TVNZ has an unfair advantage over private media by being propped up by the public, and they need to start playing on an equal playing field. A private company would never hand their CEO hundreds of thousands in bonuses to go along with a million-dollar salary for such terrible results.
“In a time when New Zealanders are facing record rents and struggling to put food on the table, the Government needs to prioritise Kiwi families’ wallets over those of millionaire execs. It’s time to cut the cord and sell it off while they still can.”
Transport Minister Simeon Brown has recently announced that the Government aims to replace the Fuel Excise Duty (FED) by 2027 for petrol vehicles by shifting them on to the Road User Charge (RUC). This comes off the back of a series of other transport-related announcements, related to tolling, congestion charges and fines.
Commenting on these announcements, Taxpayers’ Union Communications Officer, Alex Emes, said:
“If you use a road, you should pay for that road. Moving towards a user-pays model by shifting petrol cars onto the RUC would be a step in the right direction.
“But Kiwi drivers already pay well over the odds to use our crumbling roads. Sneaking in more road taxes by the backdoor isn’t the answer. When Minister Brown talks about using revenue-raising congestion charges to fill their coffers, that’s exactly what they’re proposing.
“The National Land Transport Fund has been used to fund political pet projects like light rail or cycleways for far too long. It’s time to get back to spending that money on roads instead of ramping up the cost of going A to B.”
Responding to Minister of Health Shane Reti’s announcement that Health Research Council grants are being refocused towards research that improves health outcomes, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“Health research isn’t a game. Lives depend on medical advancements, and every cent spent on frivalous pet projects is money that can’t go towards improving outcomes for Kiwis.
“How would you rather see $650k spent, researching cancer or ‘breathing ancestors into life’? With dozens more examples of pointless projects this year alone, Minister Reti has delivered a huge victory for everyday Kiwis.
“The Health Research Council is just one of many research organisations which has spent far too much taxpayer cash on woke nonsense, so why stop there? While the Government’s on a roll, let’s get the Marsden Grants back on track as well.”
This week on Taxpayer Talk is another episode in our MPs in Depth podcast series where we get to know Parliament's new MPs. In this episode, we sat down with National Party MP, Rima Nakhle.
Rima was elected as the MP for Takanini at the 2023 Election. She was born in Australia where she graduated from Western Sydney University with a Bachelor of Laws and was admitted to practice in New Zealand in 2014. Rima shares her journey into New Zealand politics and discusses her proud Lebanese ancestry, and her role in running a successful emergency and transitional housing service.
Rima's maiden speech can be watched here. Follow Rima on Facebook here.
To support Taxpayer Talk, click here
If you have any comments, questions or suggestions, feel free to email [email protected]
You can also listen to Taxpayer Talk on Apple Podcasts, Spotify, Google Podcasts, iHeart Radio and all good podcast apps.
Responding to reports that the Government is planning to spend $7 million on new ministerial offices, Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“This spending is completely out of touch with the reality that New Zealanders are facing right now. Families are having to make difficult spending decisions, cutting back on their own nice-to-haves to ensure they have enough money to cover the necessities. The Government should be doing the same.
“When even senior Ministers who would be using the offices are criticising the spending, it’s clear that the government needs to take a moment of reflection on their priorities.
“The Government must follow its own advice it has been dishing out to councils and government agencies and rein in spending to focus on the basics that New Zealanders expect.”
The Taxpayers’ Union is slamming the Labour Party following reports that the party is actively considering adopting a capital gains tax or wealth tax policy.
Taxpayers’ Union Policy and Public Affairs Manager, James Ross, said:
“Envy taxes like these are really taxes on entrepreneurship, innovation and risk taking. A tax on wealth or capital would send our best and brightest packing, taking jobs and businesses with them.
"Pitting New Zealanders against each other might be Labour's politics, but it is certainly not what’s best for our country.
“If Labour really cared about inequality, they would have focused on spiralling housing costs when they had an unprecedented single-party majority. If Labour cared about balancing the budget, they would have cut the billions of dollars of wasteful spending that was occurring under Grant Robertson. They did neither, and are now resorting to lazy envy politics to blame wealth creators for the problems they caused in government.
“If Chris Hipkins is serious about leading the country again, he needs to unequivocally rule out introducing any form of envy tax in New Zealand.”