The Taxpayers’ Union is congratulating Whanganui District Council for delivering what may be the lowest rates increase in the country — just 2.2 percent for 2025/26 — at a time when most councils are hitting ratepayers with double-digit hikes.

“This is what responsible local government looks like,” says Taxpayers’ Union spokesperson Tory Relf.

“While other councils cry poor, Whanganui is showing leadership — sticking to the basics, tightening its belt, and putting ratepayers first.”

“Whanganui has proved it’s possible to balance the books without hammering households. Other councils should take note.”

Responding to the announcement of the plan to repeal of Labour’s ‘wellbeing’ provisions in the Public Finance Act, Taxpayers’ Union Spokesman James Ross said:

“Finally, the Minister of Finance is free to focus what they can actually control -- balancing the books, bringing down debt, and restoring the economy.”

“Loneliness, housing quality, and happiness all matter, but trying to legislate for ‘the vibe’ was never going to work. Real wellbeing comes from more opportunities in an economy with low inflation, stable debt, and rising incomes that let Kiwis afford the services and lifestyle they need to thrive.”

“What did the last Government's ‘wellbeing’ obsession give us? They chased the outcomes without doing the groundwork, turning surpluses into runaway deficits, tripling government debt, and letting inflation rip. It’s time to turn the page on his failed experiment and let the Finance Minister focus on the figures, not just the feelings.”

Responding to the Reserve Bank’s decision to cut the Official Cash Rate (OCR) by 25 basis points to 3.25 percent, Taxpayers’ Union Spokesman James Ross said:

“As expected, the Reserve Bank has cut interest rates. But it’s clear the Government is relying on these cuts to do the heavy lifting.”

“With no credible path back to surplus and a so-called ‘Growth Budget’ offering just one pro-growth policy, Nicola Willis seems content to try and outsource economic recovery to the Reserve Bank.”

“Growth is anaemic, yet the Government’s strategy amounts to crossing its fingers and hoping falling interest rates will do the job for them. That’s not leadership - it’s abdication.”

“Nicola Willis missed a golden opportunity to cut spending, boost growth, and chart a course back into the black. Kiwis can’t afford another five years of government-by-wishful-thinking.”

Responding to Winston Peters ruling out working with Chris Hipkins after the 2026 election, Taxpayers’ Union Spokesperson Tory Relf said:

“A potential Labour Government would now almost certainly need to rely on parties demanding wealth and death taxes. That would cripple family farms and small businesses.”

“Kiwis need economic growth, not another $44,000-per-household in taxes. If Chris Hipkins wants to be taken seriously on the economy, he must rule out these punishing taxes - no ifs, no buts.”

Responding to news that Wellington City Council’s consultant costs have more than doubled since 2020, Taxpayers’ Union Spokesman Sam Warren said:

“This is incredibly insulting as a 12.0 percent rates increases has just been announced—on top of last year’s 16.9 percent hike. That’s more than a 30.9 percent compound increase to average rates in just two years.”

“Shedding a few roles just to replace them with overpaid consultants and higher paid bureaucrats on six-figure salaries isn’t saving. When’s it going to stop?”

“Claims made by Council that these higher salary and wage costs are reflected by ‘increased investment and delivery of services’ are a complete joke. Wellington locals need less waste and more efficiency from Council—and they’re getting the exact opposite.”

“It’s not rocket science. Council is making Wellington more expensive to live in. Cut the wasteful spending, learn to run lean, and get on with it—otherwise there won’t be anyone left in the city to pay your exorbitant wages.”

Responding to the Green Party’s claim that Budget 2025 failed to account for up to $714 million in increased KiwiSaver costs across the public sector, Taxpayers’ Union Spokesman James Ross said:

“If there’s a multi-million-dollar hole in the Budget, the answer isn’t to raid Budget 2026, as Nicola Willis has suggested, it’s to find savings. And that starts by scrapping the taxpayer-funded KiwiSaver handout altogether.”

“This $521-a-year giveaway, now halved and means-tested, has already been flagged by both Treasury and Inland Revenue, who recommended scrapping it entirely. It does little to boost real savings and means-testing it now adds a costly administrative mess.”

“Let’s not paper over the problem. If there’s a fiscal hole, the fix is clear: scrap the subsidy before it chews through Budget 2026.”

Environment Southland has supported the investigation for a ‘mega merger’ with its three other Southland councils that would see two unitary authorities emerge.

“Looking closer into how councils can better work together and reduce costs for the ratepayer is priority number one” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“Any genuine effort to reduce the burden on ratepayers is a good thing. But let’s not pretend big council automatically translates to better council. Auckland’s Super City is case in point, where the only result was greater bureaucracy and empire-building.”

"Collaboration has been done effectively elsewhere, like between Manawatū and Whanganui councils, where better efficiencies have been found as well as cost sharing."

“Change for the sake of change is not the solution. Proceed with caution and keep the local community involved in every aspect of the process.”

I'm just back from the 2025 Budget lock-up, where the team have been pouring through the documents under embargo released by the Government (i.e. the new spending announcements and political ’spin’) and the Treasury (where the real juice is - the state of the economy, the Government books, and the forecasts).

TL:DR: Budget 2025 could easily have been delivered by Labour’s Grant Robertson

The “Growth Budget" is a fudge. It was supposed to do three things: tackle overspending, get on top of the deficit, and ‘go for growth’. It's failed all three.

Spending continues to explode 💥

In opposition, Nicola Willis described Labour’s Grant Robertson as having an “addiction to spending”. But Budget 2025 continues to increase Core Crown spending compared to the current year both in nominal terms and as a percentage of the economy!

Forecast debt trajectory worse: and the structural deficit has actually increased! 🚨

Nicola Willis promised to balance the books. The OBEGAL (the traditional measure of whether a government is in surplus) never gets into surplus according to Treasury forecasts! Nicola Willis has had to make up a new measure to exclude the ACC deficit to create an illusion of a laughably small $214m surplus in 2029 (she calls it “OBEGALx”).

And the underlying ‘structural deficit’ (which removes the one-offs and swings in the economic cycle) has actually increased this year, according to Treasury’s analysis.

Debt is already hitting hard. This year, Treasury forecasts interest costs this year alone amount to $9.5 billion (that’s $467 for every Kiwi household). To put in perspective, that interest amount is the same money needed to fund the entire Police, Ministry of Justice, Customs Service, Corrections, and the defence forces combined!

If this is what fiscal responsibility looks like, God help us.

‘Going for Growth’ to deliver just 1.0 percent extra GDP over 20 years! 🤦‍♂️

The Government has made a huge deal about this being a “Growth Budget”. But the sole growth measure (they’ve labelled it “Investment Boost”) is an accelerated depreciation regime that is laughably small: Nicola Willis says the headline ‘go for growth' policy will add 1.0 percent of additional GDP over 20 years.

That is not a typo. Going for Growth amounts to 1.0 percent over 20 years. Not one percent per year. One percent in total. It’s literally in the Finance Minister’s press release. 

What can I say other than, if you were hoping for something bold, you’ll be disappointed.

Summary of initiatives:

As always, there’s quite a bit more for health, education, and a little for law and order/justice. The main surprise is changes to Kiwisaver (increasing the default rates and reducing the taxpayer contribution).

There’s also a great little initiative to stop 18 and 19 year olds getting the dole unless they actually need it! (Basically, it won’t be available if they have family support - so they can’t sit at home on the couch while being subsidised by the taxpayer). But it doesn’t come into effect until 2027!

There’s also an initiative we quite like: doctors’ prescriptions will be extended to up to one year, rather than the current three months. That will save on doctors visits, and will help those on repeat medications.

Education

• An investment of $646 million to support children with additional learning needs, including early intervention support.
• Extra maths help for students who need it, with $100 million of new funding for early intervention and support.
• Increases to schools’ operational grants, Early Childhood Education and tertiary education subsidies.
• A $140 million package for services to lift school attendance.

Law and order

• Support for frontline policing, with $480 million of additional funding.
• $472 million to manage prison growth from stronger sentencing laws.
• $246 million to reduce court delays and improve access to justice for victims across courts, tribunals and the legal aid system.
• $14 million for Māori Wardens, Pasifika Wardens, and the Māori Women’s Welfare League.
• Addressing serious youth offending, with upgraded Youth Justice facilities, running Military Style Academies, and implementation of the new Young Serious Offenders regime.
• $35 million for Customs to combat drug smuggling and organised crime with up to 60 more frontline staff and upgraded technology.

Social services

• Funding of $774 million to respond to the Royal Commission of Inquiry into Abuse in Care, strengthening the care system and providing redress for survivors.
• $275 million for social investment initiatives to improve the lives of vulnerable New Zealanders, including the creation of a Social Investment Fund.
• $760 million to support the provision of Disability Support Services.
• Creating a fairer and more efficient welfare system, including through investment in new technology.

KiwiSaver

• The default rate of employee and employer contributions for KiwiSaver will rise from 3 per cent of salary and wages to 4 per cent in two steps. From 1 April 2026, the rate will go to 3.5 per cent and, from 1 April 2028, it will go to 4 per cent. The increases are being phased in over a three-year period to help workers and employers plan ahead.
• Employees will be able to temporarily opt down to the current 3 per cent rate, if they choose, and still be matched at that rate by their employer. They may wish to do that, for example, if they feel they are unable for a time to afford an increased contribution.
• The Government will extend the government contribution to 16 and 17-year-olds from 1 July 2025, and extend employer matching to 16- and 17-year-olds from 1 April 2026.
• To make the scheme more sustainable, the annual government contribution will be halved to 25 cents for each dollar a member contributes each year, up to a maximum of $260.72 from 1 July 2025.
• Members with an income of more than $180,000 will no longer receive the government contribution from 1 July 2025.
• These changes will not impact the current year’s government contribution, which will be paid out in July/August this year.
• Putting all these changes together, KiwiSaver balances of employees contributing at the new default rate will grow faster than they do at the current default rate, providing a larger balance at age 65 or to buy a first home.

Cost of living support

• Lower family medical costs, and better access to long-term medications, by increasing the maximum prescription length from three months to twelve months.
• Lifting the income threshold to enable up to 66,000 additional lower-income households with a SuperGold cardholder to get a rates rebate.
• Better targeting Working for Families to low- and middle-income families with children, by raising the family income threshold and increasing the abatement rate, so that 142,000 families receive an average of $14 more per fortnight. The cost of this additional support will be met by income testing the first year of the Best Start tax credit, in the same way the second and third years are currently tested.
• Lower costs for around 115,000 teachers by covering their registration and practising certificate fees through to 2028, saving them up to $550.

Defence and foreign affairs

• $660 million to improve core Defence Force capabilities across air, sea, land and cyberspace.
• Funding to support troop deployments, including to train Ukrainian soldiers and provide other support.
• Funding for new maritime helicopters to replace the current, ageing fleet.
• Funding for two aircraft to replace the ageing 757s operated by the Royal New Zealand Air Force
• $368 million to deliver overseas development assistance, focused on the Pacific.
• $84 million to lift New Zealand’s engagement in Asia, address trade barriers and support the Government’s goal to double exports.

Capital investment

• Over $1 billion for hospitals and other health facilities.
• Over $700 million for new schools, school expansions and additional classrooms.
• $2.7 billion for the New Zealand Defence Force to boost capability.
• Funding to deliver 240 new high security beds at Christchurch Men’s Prison delivered through a Public Private Partnership.
• A new housing fund to support the delivery of additional social houses and affordable rentals.
• Over $460 million to upgrade New Zealand’s rail network to keep people and freight moving.

The Economist’s take

This year, we went into the Budget with our friend, former Reserve Bank and Treasury Economist, Michael Reddell. Writing for Economic News, he provided this initial analysis:

This year’s Budget represents another lost opportunity, and probably the last one before next year’s election when there might have been a chance for some serious fiscal consolidation. The government should have been focused on securing progress back towards a balanced budget. Instead, the focus seems to have been on doing just as much spending as they could get away with without markedly further worsening our decade of government deficits.

OBEGAL - the traditional measure of the operating deficit, and the one preferred by The Treasury - is a bit further away from balance by the end of the forecast period (28/29) than it was the last time we saw numbers in the HYEFU. There will be at least a decade of operating deficits, and even the reduction in the projected deficits over the next few years relies on little more than “lines on a graph” – statements about how small future operating allowances will be - that are quite at odds with this government’s record on overall total spending. Core Crown spending as a share of GDP is projected to be 32.9 per cent of GDP in 25/26, up from 32.7 per cent in 24/25 (and compared with the 31.8 per cent in the last full year Grant Robertson was responsible for). The government has proved quite effective in finding savings in places, but all and more of those savings have been used to fund other initiatives. Neither total spending nor deficits (as a share of GDP) are coming down.

Fiscal deficits fluctuate with the state of the economic cycle, and one-offs can muddy the waters too. However, Treasury produces regular estimates of what economists call the structural deficit - the bit that won’t go away by itself. For 25/26, Treasury estimates that this structural deficit will be around 2.6 per cent of GDP, worse than the deficit of 1.9 per cent in 24/25 (and also worse than the last full year Grant Robertson was responsible for). There is no evidence at all that deficits are being closed, and the ageing population pressures get closer by the year.

Some things aren’t under the government’s direct control. The BEFU documents today highlight the extent to which Treasury has revised down again forecasts of the ratio of tax to GDP (which reflects very poorly on Treasury who rashly assumed that far too much of the temporary Covid boost would prove to be permanent). But, on the other hand, the forecasts published today also assume a materially high terms of trade (export prices relative to import prices), which provides a windfall lift in tax revenue. Forecast fluctuations will happen, but the overall stance of fiscal policy is simply a series of government choices. Unfortunate ones on this occasion.

A few weeks ago the IMF produced its latest set of fiscal forecasts. I highlighted then that on their numbers New Zealand had one the very largest structural fiscal deficits of any advanced economy (and that we were worse on that ranking than we’d been just 18 months ago when the IMF did the numbers just before our election). The IMF methodology will be a bit different from Treasury’s but there is nothing in this Budget suggesting New Zealand’s relative position will have improved. We used to have some of the best fiscal numbers anywhere in the advanced world, but as things have been going – under both governments - in the last few years we are on the sort of path that will, before long, turn us into a fairly highly indebted advanced economy, one unusually vulnerable to things like expensive natural disasters.

Last two cents

This is my eleventh Budget lock-up. My impression from the Q&A with the Ministers is that the Government are proud that they’ve managed to basically keep stuff the same while squeezing a little more from the whole government. They have shifted money into higher priority initiatives (a good thing!), but it tends to be within the existing classes of spending. That means none of the sacred cows or unaffordable elephants in the room have been touched.

My greatest surprise is the lack of growth initiatives. Going for growth means macroeconomic reform to get the Government out of the way of business. A 20 percent accelerated depreciation regime is good, but it’s surely the least significant Budget headline grabber / key initiative, I can recall.

And the fundamentals stay the same: we’re spending too much, as laid out by Treasury. The underlying ‘structural deficit’ is larger than last year, not smaller. We’re going to need a bigger debt clock!

Such a disappointment after so much talk of ‘going for growth’ and ‘getting the books back into shape’.

Jordan Williams Executive Director New Zealand Taxpayers’ Union

Ps. here are the media releases issued by the team.

Budget 2025 Media Releases:

The Fudge Formerly Known as the Growth Budget

Local Councils Get a Bailout in Budget 2025

Parents, not the nanny state, should be responsible for school leavers

‘We’re going to need a bigger debt clock’ – no plan for tackling runaway debt

Nicola Willis' fudge-it 'growth' budget

The Taxpayers’ Union is slamming the Government’s lack of ambition when it comes to promoting growth, highlighted by the failure to implement full expensing of capital expenditure.

The “Investment Boost” programme will instead allow businesses to deduct just 20 percent of the value of new assets in the year of purchase.

Commenting, Taxpayers’ Union Spokesman James Ross said:

“Where’s the ambition? The Government admits its ‘Investment Boost’ programme will lead to just a 1 percent boost to GDP over 20 years.”

“Willis has clearly recognised that trapping businesses’ tax refunds in IRD spreadsheets for a decade before they can claim them back fully cripples investment and growth. So why has she left 80 percent of them trapped in depreciation schedules?”

“New Zealand has some of the lowest productivity in the developed world. We need the whole spoonful of pro-growth medicine, not half-baked half-answers.”

“We were promised ‘growth’ and ‘ambition’. We got a flop.”

Commenting on Budget 2025’s failure to restrain New Zealand’s runaway Government debt, Taxpayers’ Union Spokesman James Ross said:

“Debt is increasing every single year over the forecast period in Budget 2025, reaching $108,700 per household by 2029. That’s $2,000 more than the last forecasts issued just five months ago.”

“Grant Robertson’s last Budget had debt peak at 39.3 percent of the economy – Nicola Willis will now see it reach 46.0 percent. This is in the danger zone for a small trade-exposed country like New Zealand.”

“A Government preaching responsibility is lumbering each household with $5,776 per year in interest costs by 2027. That’s more than the budgets for primary schools, secondary schools, and the police combined.”

“Nicola Willis was elected with the promise of fixing the country’s finances, but what she’s delivered today is a promise to keep robbing our kids and grandkids.”

The Taxpayers’ Union is welcoming the decision to limit access for 18 and 19 year olds who are not working or in education to Jobseeker Support and Emergency Benefit, but is questioning why this change isn’t being implemented until July 2027.

Taxpayers’ Union Spokesman James Ross asks:

“Getting teenagers off the couch is a good idea so why wait two years?”

“We need to be realistic about what we can afford as a country. Taxpayers shouldn’t be stumping up to support school-leavers who simply don’t want to work.”

“Those 18 and 19 year olds who need support can still get it – that’s not changing. So why are taxpayers stuck paying millions for people who don’t need it?"

The Taxpayers’ Union is slamming the Government’s decision to expand the rates relief regime for SuperGold cardholders, describing it as a ‘bailout for wasteful councils’.

Taxpayers’ Union Spokesman, James Ross said “Instead of forcing local councils to live within their means, Simon Watts has caved to the pressure from Local Government New Zealand by issuing deficit spending to 'shut up the oldies' complaining about unaffordable rates. It will mean councils will be under even less pressure to reign in their costs, and shifts the burden of out-of-control rates onto taxpayers.”

“Shifting costs from retiree ratepayers onto taxpayers does not make councils more efficient or tackle the costs of living. It’s why we need rates capping right now - as done in some states in Australia and councils across the UK."

“While the Minister refused to meet the likes of the Federated Farmers, the Taxpayers’ Union, and other groups concerned about rates - those dinners with LGNZ and council-lovies have clearly worked. They get a bailout, while ratepayers and taxpayers fly in the wind."

The New Zealand Taxpayers’ Union is slamming Budget 2025 as a waste of time and hype, with its team of analysts in this year’s Budget left asking ‘is that it?’

"Nicola Willis has failed,” says Taxpayers’ Union Spokesman Jordan Williams. “This Budget could easily have been delivered by Grant Robertson."

“Willis promised to tackle the last Government’s ‘addiction to spending’. Spending is going up as a proportion of the economy in this year’s Budget compared to the current year. Core Crown Expenses are forecast to be 32.9 percent in 2025/26 compared to 31.8 percent under Robertson in 2022/23.

“She promised to balance the books. The OBEGAL never gets into surplus according to Treasury forecasts. Willis has had to make up a new measure to exclude the ACC deficit to create an illusion of a laughably small surplus in 2029.”

“And she promised growth. But the headline measure – an accelerated depreciation regime – is basically no better than what the last Labour Government tried immediately after COVID.”

“According to the Budget documents, the Government's headline ‘growth’ policy adds just 1 percent to GDP over 20 years. It is laughable in its small size.”

“More spending, more debt, and nothing to materially shift the dial and grow the economy. It’s not a Growth Budget, it’s a fudge-it."

The Taxpayers’ Union is welcoming Revenue Minister Simon Watts’ announcement that the proposed Digital Services Tax Bill will be scrapped, but warns that adopting a global alternative could still leave taxpayers even worse off.

Taxpayers’ Union Spokesman James Ross said:

“The Digital Services Tax would inevitably have ended up taxing Kiwis by stealth, either through higher prices or lost services as tech firms pulled out of the market.”

“Other countries have tried and failed. With Trump-era tariffs looming large, now is certainly not the time to invite US retaliation by taking targeted petty swings at American companies.”

“Watts needs to go further. Pursuing the so-called ‘global solution’ doesn’t just lock us into higher taxes, it’s clearly anti-democratic. We should categorically rule out ever handing the power to set our tax rates to overseas bureaucrats far beyond the reach of New Zealand voters.”

“One tax down (for now), but plenty more to go. This Government is still taking more in tax than Grant Robertson ever did, and Budget 2025 is their chance to deliver real tax relief for Kiwis across the board.”

The Taxpayers’ Union is slamming Labour Leader Chris Hipkins for refusing to commit to the Government’s 50 percent debt ceiling on RNZ's Morning Report — a reckless move that could spook credit rating agencies and raise borrowing costs across the board.

Taxpayers' Union Executive Director Jordan Williams said:

“Even Grant Robertson had the sense to maintain a firm debt anchor. Chris Hipkins now seems to be throwing that away, sending the message that a future Labour Government would be open to borrowing beyond what’s prudent, affordable, or sustainable.”

“Markets take this kind of talk seriously. If Labour won't commit to a debt limit, credit agencies may well react by downgrading New Zealand’s rating. That means higher interest costs not just for Government, but for every Kiwi household and business trying to borrow.”

According to the New Zealand Debt Clock (www.debtclock.nz), Government debt currently sits at $190.9 billion, or $93,811 per household, and is growing every second.

“Every household in the country is already carrying nearly $94,000 in Government debt on its back. The very last thing New Zealand needs is a Prime Minister-in-waiting signalling he’s ready to make that burden even heavier.”

The Taxpayers’ Union is calling on Labour to clarify its fiscal policy and immediately recommit to the 50% debt ceiling.

“Lifting the cap isn’t a ‘mature conversation’. It’s a dangerous flirtation with economic irresponsibility and the costs will fall on taxpayers.”

The Taxpayers’ Union is slamming Labour Leader Chris Hipkins for refusing to commit to the Government’s 50 percent debt ceiling on RNZ's Moaning Report — a reckless move that could spook credit rating agencies and raise borrowing costs across the board.

Taxpayers' Union Executive Director Jordan Williams said:

“Even Grant Robertson had the sense to maintain a firm debt anchor. Chris Hipkins now seems to be throwing that away, sending the message that a future Labour Government would be open to borrowing beyond what’s prudent, affordable, or sustainable.”

“Markets take this kind of talk seriously. If Labour won't commit to a debt limit, credit agencies may well react by downgrading New Zealand’s rating. That means higher interest costs not just for Government, but for every Kiwi household and business trying to borrow.”

According to the New Zealand Debt Clock (www.debtclock.nz), Government debt currently sits at $190.9 billion, or $93,811 per household, and is growing every second.

“Every household in the country is already carrying nearly $94,000 in Government debt on its back. The very last thing New Zealand needs is a Prime Minister-in-waiting signalling he’s ready to make that burden even heavier.”

The Taxpayers’ Union is calling on Labour to clarify its fiscal policy and immediately recommit to the 50% debt ceiling.

“Lifting the cap isn’t a ‘mature conversation’. It’s a dangerous flirtation with economic irresponsibility and the costs will fall on taxpayers.”

The Taxpayers’ Union is slamming today’s announcement of a further $604.6 million for KiwiRail, calling it another round of spending on a company that continues to haemorrhage taxpayer money with nothing to show for it.

Taxpayers’ Union spokesman Tory Relf said:

“KiwiRail has never returned a dividend, routinely blows its budgets, and spent $8 million on secret consultants, now gets rewarded with another $600 million? It’s fiscal madness.”

“This latest blowout reinforces the urgent need for reforms outlined in our A Pathway to Surplus report, including ending the open chequebook approach to failing state-owned enterprises.”

“Taxpayers need to see an end to the unaccountable, unaffordable gravy train in Thursday’s Budget.”

Wellington’s new chief executive, Matt Prosser, has received a warm welcome in the form of a special morning tea and welcome lunch, costing more than $12,000, courtesy of ratepayers.

“Atrocious first day for the new boss given rates are expected to increase by as much as 15.9 percent this year alone.” said Sam Warren, the Local Government Campaigns Manager for the Taxpayers’ Union.

“Seriously, whoever thought this was a good idea is the perfect depiction of what’s gone wrong with Wellington City Council. A half-day event costing this much is an insult.”

“Prosser, who is on a salary of more than half a million, says he ‘looks forward to understanding how best to serve Wellington’. I can tell him now, the best way to serve Wellington is leading by example and say ‘no’ to even more extravagant spending."

“Wellington needs a leader that can cut through the waste and focus on getting rates to an affordable level. He’s off to a poor start, we’ll be watching him closely.”

There has been uproar from ratepayers following the unveiling of a $100,000 dinosaur sculpture amidst a colossal 8 percent rates increase proposed by Taupō District Council.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, said:

“Council just doesn’t get it—locals want the basics: roads, pipes and rubbish. Instead, they got Jurassic pork”.

“Ratepayers are staring down the barrel of extinction with an average compound rates increase of more than 17 percent in the last two years alone.”

“It doesn’t matter what era this project was approved; the fact is it should have been cancelled. Whoever let this go ahead amidst such obscene rates increases needs to rein in their dinosaur-sized egos. Councils should do the same.”

Following growing public discussion over the weekend and the Prime Minister’s remarks on Newstalk ZB this morning, the Taxpayers’ Union is once again calling on the Government to adopt full capital expensing as a centrepiece of Budget 2025.

James Ross, Spokesman for the Taxpayers’ Union, says: "Full capital expensing is a proven, pro-growth reform that would immediately boost business investment and productivity. With the economy under strain, this is the kind of smart, targeted tax change New Zealand needs right now."

“Nicola Willis and Christopher Luxon want a ‘growth budget’. Full capital expensing is how they make that happen.”

Full capital expensing allows businesses to deduct the full cost of new capital investments from their taxable income in the year of purchase, rather than depreciating it over time. This would unlock much-needed economic growth, improve business cash flow, and ultimately benefit workers through higher wages and more jobs.

A Q&A briefing outlining the policy’s benefits is included below.

The full discussion paper is available at https://www.taxpayers.org.nz/go_for_growth_report
_________________________________________________________________________________
Q&A: FULL CAPITAL EXPENSING: A PRO-GROWTH POLICY FOR NEW ZEALAND

The New Zealand Taxpayers’ Union has been advocating for the adoption of full capital expensing in Budget 2025 as a targeted measure to boost investment, productivity, and long-term economic growth. This Q&A outlines the key aspects of the policy and its potential benefits for the New Zealand economy.

What is full capital expensing?
Full capital expensing allows businesses to immediately deduct the full cost of new capital investments (such as machinery, equipment, and technology) from their taxable income in the year the investment is made. This contrasts with traditional depreciation methods, where deductions are spread over several years.

How does full expensing benefit the economy?
By improving cash flow and reducing the after-tax cost of investment, full expensing incentivises businesses to invest more in productive assets. This leads to higher productivity, increased wages, and stronger economic growth. International evidence suggests that full expensing can generate more investment than an equivalent reduction in corporate tax rates.

Why does full capital expensing benefit businesses?
Businesses currently face opportunity costs through the impact of tax depreciation schedules returning invested capital slowly over a number of years. This means that they have less capital available to make further productive investments. Inflation also erodes the value of future refunds, so delayed deductions are worth less in real terms.

Why is this policy relevant now?
New Zealand is experiencing economic challenges, including stagnant incomes, declining GDP per capita, and rising unemployment. The Taxpayers’ Union argues that full capital expensing is a timely and effective measure to stimulate investment and drive economic recovery.

How does full expensing compare to corporate tax cuts?
While both policies aim to stimulate economic activity, full expensing is more targeted toward encouraging investment in productive assets. Research indicates that full expensing delivers more than twice the GDP growth compared to corporate tax cuts of equivalent revenue cost.

What are the fiscal implications of full expensing?
Full expensing primarily affects the timing of tax deductions, leading to a short-term reduction in tax revenue but not increasing the total deductions over time. As investment and economic activity increase, tax revenues are expected to recover, potentially offsetting the initial fiscal impact.

Has full expensing been implemented elsewhere?
Yes, countries like the United States and the United Kingdom have adopted full expensing policies, resulting in increased business investment and economic growth. These international examples demonstrate the policy’s effectiveness in stimulating economic activity.

What is the Taxpayers’ Union proposing?
The Taxpayers’ Union recommends that the New Zealand Government implement full capital expensing in Budget 2025.

The New Zealand Taxpayers’ Union is calling for urgent accountability at Oranga Tamariki following the release of a scathing Auditor-General’s report exposing systemic failures in procurement and contract management.

Taxpayers’ Union Spokesman Tory Relf said:

"The Auditor-General has confirmed that Oranga Tamariki is spending over half a billion dollars a year without a clear strategy, without proper oversight, and without knowing whether it’s delivering results for vulnerable children."

"Despite years of warnings, the agency has refused to fix fundamental weaknesses in how it contracts with service providers. When you’re handing out taxpayer money to hundreds of providers, that’s not just careless but a failure of duty."

"OT is meant to be protecting at-risk children. But if it can't even manage its own contracts, how can the public trust it to deliver life-changing support to those most at risk?"

"This is exactly the sort of public sector complacency that drives poor outcomes and bloated budgets. With Budget 2025 less then a week away, Ministers need to be asking tough questions. Where is the return on investment? Who is being held to account for this failure? And why has nothing changed after years of red flags?"

The New Zealand Taxpayers’ Union is calling out the Department of Conservation’s proposed restructure as a half-measure that fails to deliver the real savings taxpayers need.

Despite headlines about “68 roles going,” DOC has confirmed no current staff will lose their jobs. Instead, the changes simply shuffle roles around and quietly erase already-vacant positions.

Taxpayers’ Union Spokesman, Rhys Hurley, said:

“This isn’t cost-cutting, it’s cost-relabelling. Not a single bureaucrat is being shown the door, and the back-office bloat will remain untouched. DoC’s staff numbers increased 37 percent between 2017 and the end of last year, so there’s plenty of fat to be cut.”

“Taxpayers are footing the bill for DOC’s ballooning payroll, yet this so-called restructure leaves the bureaucracy intact while frontline, boots-on-the-ground conservation work continues to be under-resourced.”

“DOC’s $170 million regional operations budget remains largely untouched, with just $5 million in projected savings - a drop in the ocean considering the scale of government debt.”

“If the Government is serious about fixing the books at next week’s Budget, it needs to stop tiptoeing around the public sector unions and start trimming the fat.”

The Taxpayers’ Union is slamming the Government’s decision to hand out $577 million to the film industry, calling it another dose of corporate welfare at a time when public services are under pressure and the nation’s books are deep in the red.

Taxpayers’ Union Spokesman, James Ross, said:

"Nicola Willis says she’s cleaning up the books, but there’s always cash for corporate welfare if you’ve got a Hollywood script."

“While the Government is borrowing $47 million every single day, these handouts are going straight on the credit card.”

“Willis wants us in a global bidding war for an industry that’s already soaked up over a billion dollars in subsidies in just five years. With less than a one percent return on ‘investment’ according to Treasury figures, it's hard to think of a worse use of taxpayers’ money.”

“This is the second time in a week Willis has pitched ‘Going for Growth’ as taxing more, spending more, and trying to pick winners. Budget 2025 needs real reform - that means Full Capital Expensing, not more tax-and-spend corporate welfare.”

The New Zealand Taxpayers' Union can reveal, through an Official Information Act response 12 contractors have been continuously engaged by IRD for more than five years, costing taxpayers a total of $20.8 million over just the past five years.

As Nicola Willis prepares to unveil Budget 2025, the Taxpayers’ Union is calling out the millions still being frittered away on long-term consultants, highlighting one Inland Revenue contractor who has been on the books for a staggering 13 years and 11 months.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said: 

"Someone racking up billable hours for nearly 14 years isn’t a contractor, they’re a shadow public servant, just with less oversight and more cost."

"While Kiwis are tightening their belts, bureaucrats are clinging to consultants like they’re essential infrastructure. If a role is truly necessary, hire for it properly or scrap it altogether."

"Despite a directive from Nicola Willis to reduce consultancy spending, the data reveals just how entrenched and expensive these arrangements have become. Inland Revenue spent $12.4 million on seven long-term contractors in one team alone with another $8.3 million spent elsewhere in the department."

"Cut the consultants. Cut the waste. Balance the books. With the Budget seven days away that’s what Kiwis expect." 

In the next few days, the Taxpayers' Union will be launching one of our most important briefing papers to date, but before we can get to that, I need to clear the air and bring you up to speed on a seperate matter.

I've had calls and emails about the media coverage over the last 24 hours regarding the ban on several groups – BusinessNZ, Infrastructure NZ, the NZ Initiative, the Council of Trade Unions, the Taxpayers’ Union (and others) – from attending Treasury's lock-up for Budget 2025.

I haven’t raised this issue with you directly, or emailed our 200,000 subscribed supporters, because unlike the whale song / legal threat this isn't a point of high principle, rather a Wellington beltway issue where The Treasury are simply playing games.

It all stems from a rather unbecoming spat between the Minister of Finance and the CTU's economist – with all the other groups (including us) being caught up in it.

The legal advice we received was that Treasury's arbitrary application of who could or couldn't attend was very vulnerable to challenge. Since we got notification of the decision on Monday, we've been pretty confident that wiser heads would prevail.

Media companies were actually prepared to give me on of their spots (on the basis that I would provide opinion content) anyway. But the Taxpayers' Union still fought it as it was a terrible precedent.

If Treasury (or the Minister's office) can pick-and-choose who can (and can't) attend these briefings, be able to pose questions to the Minister and Treasury officials, and ensure the media get a wide range of views (and not just the Government's spin) then what's going to happen when there's a far-left Minister of Finance in charge?

Taxpayers' Union Cofounder, David Farrar, blogged about why Treasury's decision was outrageous on Kiwiblog here: An appalling decision by Treasury.

Late last night, The Treasury backed down 

Just before 9pm last night we got the notification from Treasury that they have backed down. The Taxpayers’ Union will be at the lock-up, asking the hard questions on behalf of taxpayers and reporting to you as soon as the embargo is lifted. 

Unfortunately, one particular economist (not from our organisation) remains excluded. While it’s not our fight directly, we believe it’s wrong and sets a terrible precedent. Transparency and scrutiny are essential, especially on Budget Day. As long as you are not a security risk (such as the type to storm the stage) and you represent a legitimate and material interest group (even if it's one we don't agree with!) you should be able to be in the room and inform your members or stakeholders, just like the Taxpayers' Union, Business NZ et al have every year since the 1990s.

Below is an op-ed that was to be published this weekend in The Post/Stuff (I've now asked it to be pulled given Treasury's backdown). I'm sending it to you anyway as it outlines why excluding independent voices from the Budget lock-up was wrong and damages democratic accountability. Even though your humble Taxpayers' Union will be in the room, the arguments remain relevant.

Thank you for your support, stand with us, and for transparency and accountability.

Speak soon.

Jordan Williams Executive Director New Zealand Taxpayers’ Union

PS. With this distraction out of the way, we're back into the actual important issue: how to Stop the Debt Clock and get the books back in the black. In the next few days we'll be launching this most important briefing paper this year outlining options for how the government’s can set a credible path to surplus. Keep an eye on your inbox, Victoria.

What Is the Government So Afraid Of?
Opinion piece by Jordan Williams

The voices that might not stick to the Treasury script are locked out of Budget 2025 

For the first time in living memory, the Government has slammed the door on independent voices at the Budget lock-up. The Taxpayers’ Union, along with our frenemies at the Council of Trade Unions plus BusinessNZ and the NZ Initiative, has been barred from Budget 2025’s pre-release briefing. It’s a move that undermines transparency, weakens public debate, and raises a simple but serious question: what, exactly, is the Government afraid of? 

It appears that thanks to an unbecoming brouhaha between the Minister of Finance and the CTU’s Craig Renney, Treasury are trying to do their Minister’s bidding. They’re picking and choosing who gets in and who doesn’t. Media, no matter how fringe (even the ‘economics correspondent for Metro Magazine’, the title Matthew Hooton now goes by to sneak in), email newsletter writers, the banks, and favoured talking heads like Brad Olsen, are in. 

But the voices that might not stick to the Treasury script, and may, God forbid, point out the fiscal elephants in the room, are out. The Taxpayers’ Union, Business NZ, the NZ Initiative, and the Council of Trade Unions – whose analysts have traditionally attended and provided insights – will be forced to wait outside. That is despite, each of the respective organisations having far larger readership within their own memberships than a number of the publications allowed to attend. 

Shutting civil society groups out of Budget 2025 does not promote informed debate. When politicians or officials start deciding which independent voices are ‘allowed’ to scrutinise public finances, it can only be to control the narrative. 

For decades, governments of all stripes – even those coalitions under real pressure – have recognised that allowing credible, independent voices in the room during Budget lock-ups is good for democracy, transparency and public understanding. It’s about ensuring that the media and the public get the full picture of how their money is being spent.  

That need is especially true for the Budget. New laws are often rushed through Parliament within a few hours of being announced. The short ‘lock-up’ at least gives the opportunity to provide a smidge of accountability in the short media window of mainstream media coverage on the day. 

The most important details of any budget aren’t usually in the Minister’s glossy press releases - those need proper digging into the fine print. What is the Treasury, or the Minister, hiding? 

And let’s be very clear: this isn’t about space in the room or the cost to Treasury. There are always plenty of empty seats at every lock-up. It's political game playing of the worst kind. 

Whether you lean left, right, or somewhere in between, having organisations providing contested scrutiny ensures no Government – Labour, National or otherwise – gets to dominate the narrative unchecked. 

Even Grant Robertson, who wasn’t the biggest fan of the Taxpayers’ Union, never dreamed of blocking opponents.  

And that’s how it should be in an open, confident democracy with a transparent public finance process. 

For our 200,000 subscribers, having unfiltered, independent analysis of how your hard-earned dollars are being spent is important. No doubt the hundreds of thousands of members of the left-wing unions feel the same way about the CTU’s analysis. Forcing the media to rely just on the Beehive press releases and locking out the people who are used to finding the stories buried in fine print and speak truth to power, does not serve the public or trust in the media. 

We call on Finance Minister Nicola Willis to reverse this decision. Good governments don’t fear scrutiny. They welcome it. 

Jordan Williams is the Executive Director of the Taxpayers' Union. The Taxpayers' Union have attended every budget lock-up since 2014.

The New Zealand Taxpayers’ Union is slamming the Green Party’s callous proposal for a 33 percent inheritance tax. The Union warns the tax would force the break-up of nearly every family farm in the country.

Taxpayers’ Union spokesman James Ross said:

“The Greens’ war on farming continues. Either this policy was written by someone who’s never set foot in the countryside, or it’s been deliberately designed to smash apart family farms.”

“Farming families would have to scrape together hundreds of thousands of dollars or be forced to sell off the family plot. If there’s a faster way to hollow out rural New Zealand, keep it to yourself - because the Greens might be listening for new ideas.”

“This is the reality of death taxes. As farming families grieve, Chlöe Swarbrick wants to swoop in and kick them while they’re down.”

“How can farmers vote for any Government likely to be propped up by anti-farming zealots?"

The Taxpayers’ Union has called out the barrage of new taxes proposed in the Green Party’s alternative Budget presented today.

A Spokesman for the Taxpayers’ Union, James Ross, said:

“Even Marx would be blushing at this manifesto.”

“Taxes for dying, taxes on entrepreneurship, taxes for savings, even higher taxes on nurses’ income. Controlling more of the economy and borrowing us into bankruptcy - exactly the opposite of what New Zealand needs.”

“We’re already spiralling down the debt sinkhole at record pace. If the Greens had their way, they’d tax and borrow the country into oblivion - and they’re entirely okay with it.”

“What does need to happen is better spending and lower taxation to improve our economy - that’s the only way we’re going to improve this country.”

“Nothing is ‘free’, so when you see the Greens throw that word around so effortlessly, be very concerned. The money needs to come from somewhere, and its either borrowed, or directly off the backs of hardworking Kiwis.”

“At the end of the day, these are not serious people. The Greens are hoping to fool the economically unaware that they have a solution, when really, they only have more taxes, more debt, and more misery.”

The New Zealand Taxpayers’ Union can reveal that KiwiRail has not paid a single dollar in dividends to the government in any year since being designated a State-Owned Enterprise in 2012, with Kiwirail’s own corporate documents confirming the state-owned rail operator returned $0 to the Crown in every year from 2012 through to 2024.

Kiwirail also plans to not pay any dividends at all through to at least 2027.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“The 2012 reform separating rail and land was supposed to fix KiwiRail, stripping out the non-commercial assets to finally run it like a business. But well over a decade later, it still hasn’t paid a cent back to the government.”

“KiwiRail has been the poster child for government waste, swallowing billions in taxpayer funds into a black pit of bureaucracy. That’s not a business, it’s a subsidy machine.”

“If this were a private company, it would have been shut down or been sold off long ago. Instead, year after year, politicians keep pumping money into it and pretending it’s an asset.”

“With Budget 2025 just a week away, Nicola Willis needs to show she’s serious about balancing the books. That means putting an end to blank cheques for bottomless pits.”

The Taxpayers’ Union is today celebrating a significant policy victory following Public Service Minister Judith Collins’ announcement that she intends to remove diversity, equity, and inclusion (DEI) requirements from the Public Service Act. Appointments would be made on the basis of merit, not identity, bringing the focus back to competence and capability.

Taxpayers' Union spokesman James Ross said:

“This is a massive step forward for fairness and efficiency in our public sector. Judith Collins’ decision to strip DEI mandates from legislation is a direct win for taxpayers and a return to common sense. Every New Zealander deserves to know that public servants are hired based on who is best for the job, not on ticking diversity boxes.”

“This is the sort of leadership and clarity we need. We look forward to seeing these reforms passed and implemented.”

The Taxpayers’ Union is slamming the Government’s latest foray into corporate welfare, following the announcement that Budget 2025 will include an extra $100 million Government funding for the Elevate NZ Venture Fund.

Taxpayers’ Union Spokesman James Ross said:

“When will this Government learn the way to grow the economy isn’t just to tax more, spend more, and try to pick winners?”

“Corporate welfare might make for a good photo op, but $100 million of taxpayers’ cash is a steep price for a splash in the papers.”

“With Nicola Willis still borrowing more than $47 million every single day, this is nothing more than high-risk, high stakes gambling on the credit card.”

“If the Government wants real growth, handouts aren’t the answer. Scrap the disincentives to investment and bring in Full Capital Expensing.”

Organisations including the Taxpayers’ Union, Council of Trade Unions, New Zealand Initiative, and BusinessNZ have been banned from Treasury’s Budget lock-up.

Commenting, Taxpayers’ Union spokesman James Ross said:

“Nicola Willis is spending more than Grant Robertson and borrowing more than $47 million every single day. Burying her head in the sand won’t change that.”

“Even after OIA documents released in March showed groups like ours were banned in a ministerial power-trip over a spat with the Council of Trade Unions, the Minister has doubled down.”

“Kiwis want credible government finances. Banning the critics won’t fix the books.”

“Budget briefings are one of the few instances where civil society groups and economic commentators have the chance to engage directly with Treasury officials. In previous years, the Taxpayers’ Union has even picked-up on mistakes in the Budget that were subsequently corrected.”

“The only reason you bar these groups is if you don’t want informed discussion, and want to be able to play the media - many of whom rely on the few economists in the room not on the government payroll to cut through the political spin.”

“Let’s call this what it is - chicken. At December’s briefing, the books were cooked with the made-up ‘OBEGALx’ to pretend Minister Willis had a plan for surplus. What fantasy finances are being hidden this time?”

The New Zealand Taxpayers’ Union is joining the Public Service Association in slamming  Health New Zealand for blowing nearly $2.75 million on consultants  to “manage restructures”. The Taxpayers' Union is calling the latest scandal "just the tip of the iceberg" of the $338 million Health NZ consultant budget this year alone.

Taxpayers’ Union Communications Officer, Alex Emes, said:

“Only in the bizarre world of government bureaucracy do you fire staff, then fork out millions to consultants to help you do it.”

“If Health NZ wants to restructure, they should do it themselves. After all the taxpayer cash splashed on conferences and canapés for senior managers, surely someone in the building has the brains and backbone to get the job done.”

"But this $2.7 million is just the tip of the iceberg. With Health NZ spending more than $338 million this year alone on external consultants, it's no wonder Health NZ is a dumpster fire."

“If the Government is serious about getting the health system ‘back on track’, it’s time they follow through on their promise and pull the plug on wasteful consultant spending.”

Responding to news that the Government is considering a market study into the aviation sector while retaining a controlling stake in its largest player, the New Zealand Taxpayers’ Union is calling on the Government to sell its entire stake in Air New Zealand.

Taxpayers’ Union Spokesman, James Ross, said:

“It’s a farce for the Government to claim this review will be fair and impartial while it continues to hold a majority share in Air New Zealand. You can’t be both referee and player, it’s a blatant conflict of interest.”

“If the Government is serious about improving competition and lowering fares, the first step is simple: get out of the way. Air New Zealand should be a private company competing on a level playing field, not a political pet project dressed up as market participation.”

“Every state asset should be under scrutiny. If private ownership is likely to deliver better service and lower costs, then the Government has no business holding on. Selling Air New Zealand would not only boost competition but also reduce taxpayers’ exposure to commercial risk.”

NEW POLL: Net country direction drops, centre-right could still form a Government.

The latest Taxpayers' Union-Curia Poll shows the Government Coalition once again able to form a Government, despite net country direction falling ten points.

The poll, conducted between 30 April and 04 May shows National gain 1.1 points on last month to 34.6 percent, while Labour jump 3.4 points to 33.2 percent.

ACT is down 0.5 points to 9.5 percent, whilst the Greens are down 1.9 points to 9.1 percent. New Zealand First remains unchanged on 7.4 percent, while Te Pāti Māori is down 0.4 points to 3.9 percent. 

Headline results and more information about the methodology can be found on the Taxpayers' Union's website at www.taxpayers.org.nz/polling_may07_2025tucur

For the minor parties, TOP is on 0.5 percent (-1.0 point), Outdoors and Freedom is on 0.4 percent (-0.6 points), and Vision NZ is on 0.4 percent (+0.4 points).

This month's results are compared to the last Taxpayers' Union-Curia Poll conducted in April 2025, available here at www.taxpayers.org.nz/tucur_04_aprpoll2025

The combined projected seats for the Centre-Right of 63 is down 1 seat from last month. The combined seats for the Centre-Left is up 1 seat to 58. On these numbers, the Centre-Right bloc could form a Government.

National remains on 42 seats again this month, whilst Labour is up 4 seats to 41. ACT is down 1 seat to 12, whilst the Greens are down 3 seats to 11. New Zealand First remains on 9 seats, while Te Pāti Māori remains on 6. 

With 33.3 percent (-8.5 points) saying the country is headed in the right direction and 46.0 percent (+1.8 points) in the wrong direction, net country direction has fallen 10.3 points this month to -12.7 percent.

Commenting on the results, Taxpayers’ Union Spokesman James Ross said:

"The same week the Hīkoi to Balance the Budget showed Government debt blow past $190 billion, net country direction dropped more than ten percent. If that's not a sign Kiwis want Nicola to balance the books, what is?"

"With each household's share of the debt at $93,500 and counting, Kiwis can't look the other way until the Government get their fiscal ducks in a row."

"Across the ditch, another centre-right party just blew their election chances by failing to present a credible fiscal plan. If National doesn’t get serious about fixing the books, the risk is the same here.

"Budget 2025 is only a fortnight away. Nicola Willis needs to give Kiwis what they need and finally put the debt clock into reverse."

Tauranga City Council has come under for fire for spending $200,000 on a series of short videos amidst a 12.5 percent rates increase.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, slammed the Council’s spend, saying:

“Again and again, we’re seeing completely shameful spending by Tauranga City Council. Ratepayers demand one thing: to stick to the basics. When will they get the message?”

“Unfortunately, Tauranga have form in this space—and this is just one of many recent expenditures exposing their lack of respect to ratepayers.”

“How can they justify a 12.5 percent rates hike on top of last year’s 13.1 percent? Together, that’s a compound increase of more than 27 percent in just the last two years alone.”

“Rates capping laws are urgently needed to reign councils and get them focused on providing core services—not nice-to-haves.”

Responding to reports of President Donald Trump’s proposed 100% tariff on foreign-made films, Taxpayers’ Union Spokesman James Ross said:

“Kiwis have forked out over $1 billion in film subsidies in just five years — much of it for big-budget international productions.”

“Film handouts have soared from $129 million in 2017 to $342 million in 2023. Treasury found nearly $500 million in subsidies delivered just $13.6 million in net benefit — an annual return of less than one percent. You’d get better returns from popcorn futures.”

“Claims that movies boost tourism don’t stack up — the gains are inconsistent and nowhere near worth the cost.”

“We’re not building an industry — we’re stuck in a global bidding war. US states alone have spent $25 billion chasing Hollywood.”

“New Zealand now has the perfect opportunity to step away. Let’s call ‘cut’ on this failed fantasy and stop throwing good money after bad.”

Commenting on the New Zealand Herald’s front-page story on organized crime groups making millions on smuggled tobacco and cigarettes, Taxpayers’ Union executive director Jordan Williams says:

“Is it not surprising one in four cigarettes smoked in New Zealand is illegally imported – New Zealand taxes tobacco harder than just about anywhere else in the world, making it highly profitable for criminal enterprises."

“This explosion in black market tobacco proves what we have long said: New Zealand’s sky-high tobacco tax, combined with lenient penalties, makes us an obvious target for international organised smuggling groups. On a per household basis, the cost of lost revenue is up to $160 per year."

"The best way to get people off the durries is to continue New Zealand's path of successfully incentivising hard core smokers to make the switch to safer alternatives like vaping. In Australia - one of the only countries where tobacoo tax is even higher than New Zealand - vaping is not encouraged. As a result, both the illicit market is out of control and Australia continues to have much higher smoking rates."

Responding to news of a $6,180 farewell party for Reserve Bank Governor Adrian Orr, Taxpayers’ Union Spokesman James Ross said:

“Taxpayers might forgive the sausage rolls and muffins — but what really sticks in the throat is the total lack of transparency around Orr’s exit.”

“Orr bloated the Reserve Bank from 225 to 660 staff, let inflation run wild, and torched $11 billion through his reckless money-printing spree — enough to build four Dunedin hospitals.”

“His extreme capital rules spiked mortgage costs, adding $3,750 a year to a $1 million home loan. And when inflation finally fell, he snoozed through the signal — deepening the pain.”

“Now he’s slipped out the back door with a tray of sausage rolls and no accountability. Nicola Willis and the Reserve Bank need to come clean. Kiwis deserve better than muffins and a cover-up.” 

Palmerston North City Council will vote this week on a proposal to ban the sale of fizzy drinks at most council-owned venues, described as an ‘overreach’ even by the Mayor.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, said:

“Councillors supporting this charade clearly don’t have enough on their plate. That, or they have become so distracted by non-core business that they think this is a good use of their time.”

“After the 10.1 percent rates increase last year, and the 7.7 percent rates increase proposed this year—you’d think Council would have more important things to think about than a can of coke being sold at the netball courts.”

“Let’s agree, this is a complete ‘overreach’—and much more focus needs to be restored to Council to keep rates increases as low as possible and the city affordable.”

As the Taxpayers' Union tours the country on its Hīkoi to Balance the Budget, the Government will hit a nasty fiscal milestone with Net Core Crown Debt passing the $190 billion mark at 8:53PM this evening.

Commenting on the financial milestone, Taxpayers' Union spokesman James Ross said:

"Nicola Willis is borrowing nearly $48 million per day to fund her deficit spending. Tonight the total net borrowing ticks over to $190 billion. That's $93,381 debt for every New Zealand household."

"Government debt robs our kids and grandkids. Not only has high borrowing in recent years driven up the costs of living, the interest payable means less money for quality public services in the years to come."

"Nicola Willis likes to blame the previous government for sky high spending and the debt hangover. But she's spending even more than Grant Robertson, and continues to put much of that on the national credit card."

"This month's Budget needs to cut wasteful spending, and 'Stop the Clock'."

The figures used for the National Debt Clock at DebtClock.nz are based on Treasury's Half Year Economic and Fiscal Update 2024: Net Core Crown Debt.

Bureaucracy is still booming — taxpayers need a smaller, sharper government

Responding to ACT Leader David Seymour’s comments calling out New Zealand’s bloated executive, Taxpayers’ Union Communications Officer, Alex Emes, said:

“Taxpayers are sick of funding a government that looks more like a political participation programme than a lean, effective executive. With 82 portfolios, 28 ministers, and 41 departments, it’s no wonder no one’s accountable.”

“Since 2017, the number of core public servants has jumped from 47,252 to 63,537 — a 34% increase,  more than triple population growth over the same period. Titles and departments keep multiplying, but results don’t.”

“New Zealand has fewer people, yet more ministers than South Korea or the UK. The system is bloated, duplicative, and wasteful — and taxpayers are footing the bill.”

“The test for Nicola Willis in Budget 2025 is simple: to help get the books back in black, abolish pointless portfolios, fold duplicative departments, and deliver fewer ministries that actually work.”

Rotorua Lakes Council has voted to retain its membership with Local Government New Zealand (LGNZ) through to 2025/26—while some Councillors raised concerns over political bias within the organisation, and its $93,458 price tag paid for by ratepayers.

“Councils are waking up to the fact that LGNZ has become captured by ideologues and activists” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“More Councils are pulling out of their pricey memberships–and it’s real shame Rotorua Council didn’t do the same, at least this time.”

“No two ways about it—LGNZ is a politically captured lobby group, paid millions of ratepayers dollars to push an agenda that is increasingly at odds with the public’s own wishes.”

“Once pretending to be champions of localism—LGNZ showed their true colours the day they got into bed with Labour and its radical Three Waters agenda. Ratepayers shouldn’t be forced to fund activists.”

“Well done to the Councillors bold enough to push back and raise their concerns, and shame on the Councillors continuing this expensive and politically-skewed charade.”

Finance Minister Nicola Willis has not ruled out ending Government KiwiSaver subsidies ahead this year’s Budget.

“Willis’ Government was elected to make hard decisions—ending Government funded KiwiSaver subsidies is exactly one of them” said Sam Warren, a spokesman for the Taxpayers’ Union.

“Make no mistake, the subsidies costs taxpayers hundreds of millions each year, diverting desperately needed funds from other services or urgently needed debt repayments.”

“A product of the Fifth Labour Government back in 2007, the subsidies hoped to encourage KiwiSaver participation and contributions—but with that comes its own problems.”

“Now that membership levels are near-universal, the subsidies themselves are redundant. They also distort behaviour as individuals with investments and savings elsewhere will opt for lump contributions annually to receive the $521 payment by government.”

“The programme also operates as a private savings scheme, making the subsidy a wealth transfer from taxpayers to savers.”

“Most will agree that propping up private savings is completely inefficient—the government should straight out prioritise tax relive and allow individuals to save independently.”

"Times are incredibly tough, and the books are in dire straights. It's a hard decision, but it's the right one to get the economy back in shape."

Local Government Minister Simon Watts has today suggested rates capping laws are still on the table following a proposed 16 percent rates increase by Tauranga City Council.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, said:

“We’ve been pushing for rates capping laws for years. Used in the UK and states of Australia—they’re neither new, nor radical. But they are effective.”

“Rates on average increased 15 percent last year alone, far higher than inflation and salary growth. Councils too readily have shifted the burden of their own bad spending decisions onto the shoulders of ratepayers. Enough, we say.”

“Meanwhile Minister Watts had refused to engage with us on the issue, despite his predecessor, Simeon Brown, clearly being interested in this as a way to manage excessive rates increases.”

“Rather than engaging with us, Watts has spent the last few months meeting with Local Government New Zealand, a pro-Council lobby group paid millions with ratepayers’ money from subscribed councils, who are doing their best to steer Watts back from the policy.”

“Our advice to Watts is ‘do not listen to them’. If this is finally a sign that you are actually committing to effective rates capping—don’t budge an inch or allow councils to water it down in any form.”

The Land Transport Management (Time of Use Charging) Amendment Bill has drawn criticism from several Tauranga Councillors, objecting that revenue could be invested elsewhere.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, said:

“Tauranga City Council is hardly a bastion of fiscal leadership—so when even they are blowing the whistle, you know something is wrong.”

“The promise was for this to be revenue neutral, to reduce congestion and improve efficiency. But if the funds can be spent elsewhere, we’ll call it what it is—another tax.”

"Key to this is for an equivalent cut to Road User Charges to ensure revenue neutrality can be sustained."

“The right parameters need to be in place so the scheme can be measured. If it's found that congestion targets aren't met, it’s essential the charges are scrapped.

"We demand clarity from the Minister that this will be the case, and not just another handbrake placed on locals."

The New Zealand Taxpayers’ Union is slamming Ruapehu District Council after it overspent by $700,000 on Community and Recreational services — blaming the blowout on incorrect coding.

Taxpayers’ Union Spokesman James Ross said:

"Ratepayers already struggling under a cost of living crisis and skyrocketing rates are right to call this completely unacceptable. Being whacked with a $700,000 bill because someone ticked the wrong box is a slap in the face to anyone expecting even basic financial competence."

"Errors like this are exactly why the Taxpayers' Union is calling for standardised financial reporting across all councils. Different general ledger codings and practices make it far too easy for mistakes like this to go unnoticed - and for accountability to slip through the cracks."

“If councils are serious about transparency, they must adopt clear, consistent financial reporting standards. Ratepayers deserve better than excuses.”

The Taxpayers’ Union is renewing its call for central government leadership to implement a national framework for council accounting standards, ensuring every ratepayer, journalist, and auditor can easily scrutinise where and how public money is being spent.

Commenting on Finance Minister Nicola Willis’s announcement of a $1 billion cut to the Government’s operating allowance, Taxpayers’ Union Campaigns Manager James Ross said:

“Cutting the operating allowance is a good start — but with the books this bad, a slow march won’t cut it. Taxpayers need a full sprint.”

“New Zealand is now running the worst primary deficit of any advanced economy, and government debt has exploded from $59 billion in 2017 to a projected $192 billion this year. Every dollar of new spending needs to be matched by savings — not a cent more.”

“If the Government can’t set the operating allowance at zero this year, it must lock it in for Budget 2026. Anything less is just kicking the can toward a cliff.”

“Taxpayers deserve a government that lives within its means, not politicians who keep maxing out the country’s credit card and handing them the bill.”

Councils enacting the Local Government (Ratings) Act are collecting millions of dollars of unpaid rates directly from the owners’ mortgages in the last 12 months.

“We’ve seen some of the steepest rates increases in the last 30 years—and you want to kick them while their down?” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“These increases have been one of the main drivers in a sustained cost of living crisis, dragging out with little end in sight. Claims that this is to reduce the burden of those staying afloat misses the point—cut the waste and reduce the rates.”

“Councils are so distracted by a massively broadened scope that they have forgotten they work for the ratepayer, who now rightly expects them to get back to the basics; roads, pipes and rubbish.”

The Dunedin City Council has come under fire for its $92.4 million development of Smooth Hill landfill—at risk of blowing out to become ‘another white elephant’.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union said:

“Council is up to its eyeballs in debt—expected to climb to one billion dollars by 2030. Experts are raising concerns that the economics don’t stack up, why won’t Council listen?”

“Councillor Vandervis is entirely right to express concern. Until more sustainable finances can be achieved, the project should be held off.”

“Cheaper and less risky options exist for the City’s waste. In the meantime, every effort must be made by Council to reduce the ever-growing rates burden on locals.”

“Another white elephant is the last thing they need—when they are already weighed down by astronomical levels of debt.”

The New Zealand Taxpayers’ Union can reveal through a Official Information Act request that the total cost through the Members of Parliament (Former Prime Ministers Travel Services) Determination 2017, that former Prime Ministers car entitlements of $296,009.87 in purchases and $14,061.99 in fuel and maintenance.

The Department of Internal Affairs buys and replaces these cars for ex PMs and/or spouses, with the exception of Chris Hipkins, who wasn’t in the job more than two years, and John Key, who declined the entitlement.

Taxpayers’ Union Investigations Co-ordinator Rhys Hurley said:

“Taxpayers are forking out close to $60,000 a pop for new cars so ex-Prime Ministers can cruise around in style — on top of the air travel, rail, taxis and chauffeur services they already enjoy on the taxpayer dime.”

“At a time when everyday Kiwis are struggling just to keep their own cars on the road — let alone afford a new one — why are we still buying luxury vehicles for politicians who don’t even have the job anymore?"

"These are people who clocked out years, sometimes decades ago. In what other line of work do you keep getting perks long after you’ve left the building?”

"The Prime Minister needs to make a call: end the perk, or explain to taxpayers why his predecessors still deserve a free ride.”

The New Zealand Taxpayers’ Union can reveal, through a Official Information Act request, that the Department of Internal Affairs has redirected $67,000 of public money from its core functions to sponsor the 2025 Te Matatini kapa haka festival — all without sign-off from Minister Brooke van Velden.

DIA described the deal as a way to “enhance visibility” and demonstrate its commitment to Māori–Crown relations, while securing access to corporate hospitality. Despite never supporting any comparable community or cultural event in this way before, DIA agreed to this sponsorship at the deputy chief executive level with no Ministerial approval.

Taxpayers’ Union Investigations Co-ordinator Rhys Hurley said:

“These funds were meant for delivering public services — not topping up a festival the Government already funds. Public servants have raided their own operational budgets to play sponsor and score perks.”

“Who’s really getting a new passport while supporters are cheering their home kapa haka teams? What’s next — picking up your marriage certificate at the rugby?”

“The link between offering services and this festival is a joke. This is bureaucrats dipping into service budgets for a trip they don’t need and can’t justify.”

“The rationale in the Official Information Act response and the internal memo to the chief executive don’t match up. One claims the sponsorship is about community 'connection and service delivery', while the other talks about 'branding, logo placement, and access to the corporate lounge."

“If bureaucrats want to play patron of the arts, they should do it with their own money — not yours.”

The New Zealand Taxpayers’ Union can reveal, through a Local Government Official Information and Meetings Act request to the Far North District Council the total cost of the construction of a single public toilet at Rangitāne Reserve in Kerikeri.

The final location had to be signed off by both local hapū and Heritage New Zealand, with excavation carried out under the watchful eye of both a cultural monitor and Heritage NZ representatives.

The project ended up costing ratepayers $157,821.43—with more than $30,000 eaten up by compliance and red tape alone. This includes:

• $5,000 paid to local Hapū for a Cultural Impact Assessment,
• $5,198.90 to Northern Archaeological Research for survey and assessment work, and
• $19,732.21 for consents, charges, project management, and monitoring.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“We’ve now got to the point where even a single toilet needs a army of consultants, cultural monitors, and bureaucratic sign-offs.”

“This is a textbook case of red tape strangling local infrastructure. It’s not just motorways and housing being held up anymore—it’s reached the public loos.”

“Councils are sinking more money into ticking boxes than delivering outcomes. Cultural impact assessments, archaeological surveys, live monitoring—none of it comes cheap, and most of it is wildly disproportionate to the size of the job. This toilet block ended up costing more than a house deposit. That’s not just absurd—it’s indefensible.”

“Slashing the project cost a bit lower isn't good enough when Far North ratepayers are staring down the barrel of a 11.43 percentage rate hike. If councils are going to keep hiking rates year after year, the least they can do is deliver infrastructure without blowing the budget on red tape.” 

On the news Health NZ paid for outgoing Chief Executive Margie Apa to attend a governance course — after she’d already resigned.

Taxpayers’ Union Investigations Co-ordinator, Rhys Hurley, said:

“Margie Apa was already one of the highest-paid public servants in the country — pocketing $895,000 this year, nearly $400,000 more than the Prime Minister. Now taxpayers are being forced to top that up with a golden handshake on the way out the door.”

“This wasn’t some internal training session. This was a career-boosting governance course — funded by you and me — for a Chief Executive who had one foot out the door."

"Health NZ calls it ‘outplacement support’. We call it a waste of money.”

“While hospitals are under pressure and frontline workers are crying out for resources, the top brass are looking after their own. It’s bureaucratic back-handers at its worst.”

"Its time to end the days of public service Golden Handshakes."

Dear Supporter,

As the country battens down the hatches for Cyclone Tam, your humble Taxpayers' Union is preparing for a different storm: the economic implications on New Zealand of the Trump tariffs. 

This week, we also cut to the truth about whether Nicola Willis is spending big or cutting her cloth, and why she is so annoyed with the Taxpayers' Union.

We also, errr, expose Department of the Prime Minister and Cabinet bureaucrats for looking at p*rn while at work. Awkward...

But first: the economy.

The impending storm clouds - growth forecasts slashed in half 🌩️

Hot of the press this morning, Infometrics is the first of the major economic consultancies to put some actual numbers around what everyone agrees is an uncertain international situation.

The company says GDP growth for next year will come down from 2.4 percent to just 1.0 percent. Not good news for the Beehive or anyone who wants New Zealand to get out of the economic shtook.

Read more on the Infometrics website here: Economy’s recovery on ice as trade war hits growth

All roads lead back to the need for this year's Budget (just 35 sleeps away) to go for growth.

New Zealand needs substantive policy, not just PR and bumper sticker solutions.

The best 'bang for buck' to get a rocket under growth is full capital expensing: to get businesses investing in the very capital that will make New Zealand more productive.

To read more about the merits of the proposal click here.

When the facts don't fit the political narrative: Nicola Willis takes a swipe at the Taxpayers' Union 😱

The role of any good taxpayer advocate is to point out inconvenient fiscal truths. Sometimes that annoys the politicians – whoever is in Government. 😬

So is the case with Nicola Willis who likes to position herself as a prudent fiscal manager. Among other things, she claims to be reigning back the last Government's excessive spending.

But the facts don't fit the narrative.

Last year's Budget (the first delivered by Nicola Willis) spent more than Grant Robertson's Budget the previous year. That's true for both measuring it in real (inflation adjusted) terms and as a percentage of the economy.

But Ms Willis continues to claims she's spending 'less'. How does she square the circle?

You see, it's all framed up using what was projected using the earlier budgets.

In her Budget 2024 speech in Parliament Nicola Willis highlighted that the final "operating allowance" (that is the term used for new baseline spending) for Budget 2024 was $3.2 billion, which is below the $3.5 billion allowance set by the previous government.

Willis emphasised that this is the lowest allowance in nominal terms since Budget 2018 and the lowest in real terms since the Sir Bill English-era. That's all true, but 'reduced' spending, it is not.

So let's cut to the facts:

1. No matter how you measure it, Nicola Willis is spending more than Grant Roberson was actually spending (she's also borrowing at a faster rate than Robbo!)
2. But she is spending less than Grant Robertson planned to spend.

The opposition use exactly the same spin trick 😏

This reliance on forecasting - rather than actual spending – is the very same trick the opposition use to claim the Government has 'cut' public services. They treat the earlier longer-term forecasts as if it was real spending, and say that reductions to the size of an increase is a 'cut'.  

Now you know...

Nicola Willis says we don't have 'our facts in a row'. Judge for yourself... ⚖️

Last night on Heather du Plessis-Allan's NewstalkZB show, Nicola Willis gave your humble Taxpayers' Union a serve, claiming that "not for the first time, they haven't got their facts quite in a row" referring to our media release.

>>Listen here<<

Rather than hit back (we've been called worse!), make up your own mind.

In 2015 – the Bank's five-year funding was set at $324.3 million. In 2020, it was hiked up to $639.6 million. Grant Robertson also granted "emergency" top ups for 2023 and 2024 ($48 million and $30 million, respectively).

Now it's time for the next five-year funding round and Willis says she's "cut" the funding to $775.6 million.  

But that still amounts to a 21 percent hike on the last five-year agreement, and a 131 percent increase on the one before that.

The Government would have you believe it’s a funding reduction because – get this – the Reserve Bank asked for $1.03 billion and Nicola Willis didn’t quite give them all of it. And, it is a reduction from the "emergency" funding that Grant Robertson waved through before exiting the building for his good mate Adrian Orr.

Six years ago the Reserve Bank had 225 staff. Now it has 660 (not quite captured by the chart below).

Is Nicola Willis 'cutting' or just locking-in Grant Robertson's big-spending legacy? 🔒

It doesn't bode well for what’s in store in next month’s Budget...

Today's inflation data: Local council's continue to drive costs of living pressure 💸

The other big economic news today is the latest inflation numbers released few hours ago. It's ticking up, and a big driver is yet again is the out of control council rates...  🙄 

Local rates increases were responsible for 14 percent of the CPI increase.

You can read our comments to media here.

TAXPAYER VICTORY! $400m green slush fund gets flushed 🚽☘️

In better news, Minister for Climate Change Simon Watts has flushed the $400 million green slush fund known as the NZ Green Investment Finance Ltd (NZGIF).

NZ Green Investment Finance Ltd (NZGIF) is a $400 million green slush fund that blew $115 million on Solar Zero (a company backed by trillion-dollar BlackRock) and still went bust.

$280 million in climate handouts were dished out to big business in last year's Budget, including EV truck subsidies and “fuel switching” grants. Now it’s up to Nicola Willis to finish the job in Budget 2025 and put an end to the subsidies.

With an emissions trading scheme to reduce emissions already in place – why are we paying twice? We say the subsidies also need to go to zero. 

Greenwashing lobbyists, you’re on notice. 👊

Money doesn't grow on trees - unless you're funding a $12 billion defence plan? 🪖💰

The Government recently announced a $12 billion plan for Defence spending.  That's not chump change: it's the equivalent to $6,000 for every household. 

Prime Minister Luxon told media that “we can afford this,” but things get a bit murkier when it comes to how. 🤔

Most New Zealanders agree that New Zealand needs to up its defence. But with no savings flagged elsewhere how exactly are we to pay for it?

Ironically, only Australian media asked this blatantly obvious question. 🤷

The Government is already borrowing $6,000-per-household per year thanks to the deficit. The offical national debt clock is climbing $25 million higher every day.

That’s not sustainable – and it's a real threat to New Zealand.

The Finance Minister has said that the extra $9 billion of new spending will come entirely from the Government's $2.4 billion yearly spending buffer. Even if that's true, it means the Government will effectively be pausing all other new capital spending: i.e. new hospital equipment, school refurbishments etc.

It just doesn't add up.

Speaking of Defence spending, our research team has come across an example of its spending that probably won't have New Zealand's adversaries shaking in their boots. Forget tanks, it's Beam scooters!

Marching round bases is so yesterday: Defence Force's $32,800 Beam Scooter joyrides 🛴💨

Military heroes aren't always taxpayer heroes. Thanks to an anonymous tipper, our investigations team confirmed the Defence Force has spent $32,800 on e-scooters. For one airforce base! 🚨

Yes - officials decided it was a good time for our nation's defenders to zip round on extortionately priced, rent-by-the-second e-scooters. 

Even the most staunch taxpayer advocate knows we need a strong and capable Defence Force. But spending money preparing for the invasion of a skate park isn't it!

PM's Office caught with their tabs down 😵

It seems one too many late nights in the Department of the Prime Minister and Cabinet (DPMC) has left more than a few Cabinet staffers red-faced.

Some rather diligent digging from the Taxpayers' Union investigations team revealed 24 recorded 'incidents' of government personnel trying to access *ahem* adult entertainment on their work devices.

Now we're all for a little (fiscal) discipline, and we certainly don't object to burning the midnight oil – but let's all agree there's no place for bureaucrats to be accessing smut while on the taxpayers' dime!

Either these staffers have way too much time on their hands – or not nearly enough accountability during their work time. Either way, taxpayers deserve more focus (or perhaps fewer distractions?) from the public service supporting the PM.

NEW POLL: “Woop! Woop!” – bad news for da' Greens 🚨

It's been a bad few weeks for the Greens, who've dug themselves into holes doubling down on controversies. 👀

Green Police and Corrections spokesperson Tamatha Paul MP is sticking to her comments that police made people feel more unsafe, should be defunded, and that prisons should be abolished.

 

However our latest Taxpayers’ Union-Curia Poll found that police on more beat patrols made 66 percent of people feel safer and only 10 percent feel less safe.

 

Embarrassingly for Ms Paul, even her own party's voters don't agree with her.

The polls finds that 48 percent of Greens felt safer with more beat patrols, compared to just 19 percent who felt 'less safe'.

Speaking of feeling safe, apparently some people are scared of the Taxpayers' Union...

Taxpayer Talk: What are Simon Watts' climate targets costing you? 💰🌳

This week on Taxpayer Talk, Peter Williams sits down with our Senior Researcher, Levi Gibbs, to discuss the true cost of New Zealand’s climate targets – and how the Government can get back on a pathway to surplus without raising taxes.

In this episode, Levi also previews our upcoming report, Pathway to Surplus, revealing billions in potential savings by cutting wasteful spending, ending corporate welfare, and rethinking welfare spending.

You can listen to the episode on our website, or on Apple Podcasts, Spotify, iHeart Radio and other good podcast apps. 

Have a great long weekend and stay safe in this weather.

James Ross Policy & Public Affairs Manager New Zealand Taxpayers’ Union

The New Zealand Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that the South Taranaki District Council has spent $194,379.23 on radio advertising over the last three years.

Taxpayers Union Investigation Coordinator Rhys Hurley said:

“Almost $200,000 of hard-earned money pumped into the airwaves with no evidence it changes behaviour is hardly best practice. Spending more money doesn’t equal better results.”

“The Council has no reports showing whether these ads actually raise awareness about rates or campaigns—or whether the money is just going down the gurgler.”

“Stories of the local farmer paying the rates because he heard it while "milking in the milking sheds" aren’t enough to justify this spend.”

“Survey after survey, ratepayers have said they want South Taranaki focused on roads and frontline services—not chucking money at airtime with no accountability. When will Councils start listening.”

Responding to today’s CPI update, showing annual inflation has ticked up by 0.3 points to 2.5 percent, Taxpayers’ Union Spokesman James Ross said:

“Even a small rise in inflation is a reminder that the cost-of-living crisis hasn’t gone anywhere. People can’t make do without housing, and the costs keep soaring.”

“Local rates increases were responsible for 14 percent of the increase, and with a fresh set of rates hikes just a few months away in July households are going to continue being clobbered. Central government has the power to put the brakes on these runaway costs.”

“Ministers Willis and Watts needs the courage to slash inflationary overspending and cap council rates hikes. That’s the pathway back to a growing economy.”

The Taxpayers’ Union is calling out spin over the Reserve Bank’s newly signed five-year funding agreement, warning that despite talk of “funding reductions”, the deal still locks in a major increase compared to the previous period.

Taxpayers’ Union spokesman James Ross said:

“Slapping the Reserve Bank’s ludicrous $1 billion funding request down to $775.6 million isn’t restraint — it’s just stopping them coming back for seconds.”

“$775.6 million is 21% higher than the last five-year agreement back in 2020, and 139% higher than the one before that in 2015. Costs are still skyrocketing.”

“Headcount has exploded by 2.5 times since 2018, and yet the Reserve Bank still managed to fuel New Zealand’s worst economic downturn in thirty years. Too many cooks have clearly spoiled the broth.”

Ross says the funding boost is a bad omen ahead of the upcoming 2025 Budget.

“If this is the kind of ‘restraint’ the Finance Minister is banking on for the Budget next month, New Zealand is in serious trouble.”

Responding to news that Tauranga City Council has signed a $91.9 million lease for new offices and budgeted a further $33.5 million for an interior fit-out—complete with $470,000 worth of coffee machines — Taxpayers’ Union spokesman James Ross said:

“This isn’t an office—it’s a corporate penthouse for local bureaucrats. Ratepayers are coughing up for a $125 million glass tower with barista-grade coffee on tap, while basic city services fall by the wayside.”

“Council staff already enjoy perks like $100,000 life insurance, bonus annual leave, and subsidised bus cards. Now they’re adding $470,000 in coffee machines and a Wall Street-style fit-out on the ratepayer tab.”

“Tauranga City Council needs to get back to basics. Fix roads, clear drains, and stop behaving like a Fortune 500 company. Tauranga doesn’t need a luxury headquarters—it needs accountability.”

On the news of Ray Chung’s commitment to freeze rates for the next three years following this year’s painful 18.5 percent rates hike, Taxpayers’ Union spokesman Rhys Hurley said:

“Ray Chung is putting a stake in the ground and saying the Council should live within its means. Ratepayers aren’t an ATM, and Wellington’s had enough of being shaken down to fund consultants and vanity projects.”

“The pipes are leaking, roads are crumbling, and yet somehow Council always finds money for another photo op. It’s time to get back to basics and we commend Mr Chung for putting ratepayers first.”

“Anyone who says you can’t freeze rates just isn’t willing to do the hard yards on savings. The waste is obvious — it just takes guts to say no.”

"All candidates need to come up with detailed savings plans that ratepayers can hold them to."

The Taxpayers’ Union has today slammed the $5.2 million spend on consultants by Invercargill City Council for the Te Unua Museum of Southland, as part of the wider $87 million dollar ‘Project 1225’ development.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, commented:

“Councillor Pottinger is right to raise concern—it’s a complete quagmire.”

“In no way should external consultant costs be allowed to go so high. Council has already lifted the budget by $13 million, and answers need to be demanded.”

“Every dollar spent needs to stand up to scrutiny and, right now, local ratepayers simply cannot afford these kinds of white elephants.”

“To say ‘council has developed a greater understanding of how to deliver’ is a bloody expensive lesson. As Pottinger prepares to dissect consultant costs at the next full council meeting, so too will the Taxpayers’ Union.”

Potential amalgamation is today in the news as the Government pursues resource management restructuring that would scale back council responsibilities.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, said:

“Better collaboration between councils to find efficiencies for both service and infrastructure delivery is certainly encouraged, so long as they reduce the burden on the local ratepayer.”

“But remember, big council doesn’t always mean better council.”

“Consider Auckland’s ‘Super City’ as a cautionary tale—the only thing achieved was more bureaucracy and empire building. By all means, find the sweet spot where cost per ratepayer is effectively minimised, and go no further.”

“Key to this discussion is localism. So long as the discussion is community-driven, and locals are aware of the nuances involved with council amalgamation, the result will be better.”

The New Zealand Taxpayers' Union can reveal, through an Official Information Act response that over eleven months the Department of the Prime Minister and Cabinet (DPMC) recorded 24 instances of staff attempting to access adult entertainment websites on government devices.

The response confirms the incidents occurred across multiple months in 2024, with a particularly high concentration in May (5), June (4), and July (7) — suggesting a consistent pattern of misuse rather than one-off mistakes.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley said:

“Taxpayers expect their public servants to be focused on the job, not trying to access porn at work. If the Department supporting the Prime Minister can’t even keep its staff off x-rated sites, what hope is there for the rest of the bureaucracy?”

“This isn’t a case of a single slip-up. The pattern here is showing that for months on end, some staff in our most high-profile government agencies are trying to access inappropriate content while on the clock.”

“The Department says it’s reminded staff about IT rules—but won’t say if anyone was actually held accountable. Tellingly, they wouldn’t even publish this OIA response on their website.”

“This isn’t just about smut on work time — it’s a symptom of a bloated public service with too much time on its hands and too little accountability. This year’s Budget must get staffing back to 2017 levels and restore some discipline to the public sector.”

On the news the Government is considering scrapping the $118 million-a-year Kāhui Ako (Communities of Learning) scheme.

Taxpayers’ Union Spokesman James Ross said:

“Kāhui Ako was supposed to be a revolution in school collaboration. Instead, it has shown to be a taxpayer-funded teachers’ lounge—complete with bonuses, busywork, and not a single meaningful improvement in student achievement to show for it.”

“In 2023, just 22 percent of Year 8 students met the expected standard in Maths, and only 47 percent in Reading. If Kāhui Ako were a student, it’d be repeating the year.”

“Redirecting that $118 million to learning support for kids is something taxpayers can get behind.”

“Minister Stanford’s flicked to the right chapter. Now it’s time to slam the workbook shut, expel Kāhui Ako once and for all, and invest in something that actually works."

Dunedin City Council (DCC) has refused to explain the ongoing absence of its Deputy Chief Executive, Leanne Mash, citing privacy. Questions remain as to whether Mash still receives her full salary, which is as high as $499,999.

Sam Warren, Local Government Manager for the Taxpayers’ Union, commented:

“This is a shocking lack of transparency from Dunedin City Council. Ratepayers deserve better, not a wall of silence.”

“Concerns for privacy has a legitimate place, but right now it looks more like an excuse than a reason. Council must prove otherwise and stop treating public accountability as an optional extra.”

“As part of the executive team, and having a salary up to $499,999, there’s an expectation for high-ranking staffers to be accountable. This is now all at risk. Council and Mash need to clear the air with the public covering her salary.”

The New Zealand Taxpayers’ Union can reveal through an Official Information Act request that the New Zealand Defence Force has splurged $32,800 on e-scooters for Base Auckland from private operator Beam.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“Kiwis are doing it tough — cutting back on groceries, delaying holidays, and skipping takeaways. But while households have no money to play around with, the Defence Force is splashing out on rent-by-the-second electric scooter joyrides.”

“If zipping to the gym on overpriced e-scooters is what Defence top brass call value for money, it’s no wonder the books are blowing out.”

“The Defence Force has just been handed a $12 billion funding plan. If this is the starting point, taxpayers should buckle up — it’s going to be a rough ride.”

“With Budget 2025 exactly six weeks away, Ministers need to be going through the books line by line to root out waste like this. Because with $25 million being borrowed every day, the Government debt clock won’t slow down on its own.”

On the news that Gisborne District Councillor Nick Tupara has attended only 41.2 percent of meetings and workshops in his third term—failing to see ‘why it is an issue’.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union said:

“You can’t represent your community if you can’t be arsed showing up."

“And being unable to understand why locals are angry is next-level arrogance. Anyone else showing up less than half the time without giving reason would be sacked. What makes Tupara so special?”

“His absence highlights a massive problem with standing orders. If the Local Government Act doesn’t effectively address a councillor’s truancy, it needs to change.”

“We objected to an Ashburton’s Water Zone representative, Arapata Reuben, for missing two years' of meetings—and we object to Councillor Nick Tupara for thumbing his nose at ratepayers paying his salary.”

“Expecting more from an elected official is not unreasonable. Get real or get out.”

Responding to the Reserve Bank of New Zealand’s decision to cut the Official Cash Rate (OCR) by 25bp to 3.50%,Taxpayers’ Union Spokesman James Ross said:

“The economy is only just starting to crawl out of recession, and interest rate relief couldn’t come soon enough for families who’ve spent years being hammered by high mortgage costs.”

“Adrian Orr squeezed the life out of the New Zealand economy, and now US tariffs are doubling down on our already anaemic growth. We’re not out of the mire yet.”

“Going for growth now needs two things – slashing inflationary overspending by the Government to put punitive interest rates firmly in the rear-view mirror, and driving real productivity gains. Lower interest rates aren't a licence for the Government to ramp up spending further.”

“If Nicola Willis doesn’t put Full Capital Expensing at the heart of a cost-cutting, pro-growth Budget next month, New Zealand will stay stuck on the path of managed decline. 

The Taxpayers’ Union is responding to the Government latest supposed “Going for Growth” announcement, which will restrict Government departments and agencies to only using New Zealand wool.

Commenting on the Finance Minister’s latest move to increase government waste, Taxpayers’ Union Spokesman Alex Emes said:

“If the Finance Minister is trying to go for growth by ramping up government procurement costs, she’s baa-king up the wrong tree.”

“Is this seriously the best the Government has to offer to get New Zealand growing? Not meaningful reforms like Full Capital Expensing, just taxpayer subsidies for carpet-makers?”

“The Government need to stop trying to pull the wool over taxpayers’ eyes with low-effort spin like this, and get serious about cutting costs and boosting productivity.”

On the news of the Government’s decision to wind down the New Zealand Green Investment Finance Ltd (NZGIF), which has cost taxpayers $400 million.

Taxpayers’ Union Spokesman James Ross said:

“Credit where it’s due, scrapping this expensive and ineffective green slush fund is a huge win for taxpayers.”

“NZGIF’s biggest achievement was torching $115 million on a loan to Solar Zero, a company backed by BlackRock which still managed to go under. You couldn’t make it up.”

“Subsidising businesses to reduce emissions under a capped Emissions Trading Scheme was - and is - economically illiterate. It doesn’t cut emissions. it just bungs money straight into the compost heap.”

“Budget 2024 handed out $280 million in green corporate welfare. Scrapping NZGIF is a start, but Budget 2025 must finish the job. That means axing the Energy Efficiency and Conservation Authority’s (EECA) fuel switching schemes, clean heavy vehicle grants, and every last dollar of green pork. Climate policy should cut emissions — not write blank cheques to corporate cronies.”

The New Zealand Taxpayers' Union can reveal through a Local Government Official Information and Meetings Act response that the Council is tagging information requests as “high” or “medium” risk based on who requested it.

Sitting at the top of the “high risk” list, the New Zealand Taxpayers’ Union.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“We’d almost take this as a compliment—if it wasn’t so deeply concerning.”

“Ratepayers and other groups are asking perfectly reasonable questions, yet instead of simply answering them, Council bureaucrats are red-flagging anyone who looks too closely at their bloated books.”

“Councils aren’t private companies, and shielding themselves from public scrutiny is no excuse."

"Local government exists to serve the public, so ratepayers have every right to see official information without wading through the spin doctor treatment.”

“This isn’t just about Ōtorohanga. If this Council is drawing up hit lists of who they think is dangerous for asking questions, how many others are doing the same?”

With Finance Minister Nicola Willis’s announcement of a “Growth Budget,” the Government must act now to deliver it. In a tough global economic climate, not least driven by 10 percent US tariffs further punishing Kiwis, New Zealand needs bold, pro-growth reforms—starting with full capital expensing.

New Zealand Taxpayers’ Union Spokesman, Rhys Hurley said:

“We need action—not talk. The Government should announce full capital expensing today to buck the global trend and boost New Zealand’s economy.”

“This simple reform lets businesses immediately deduct the full cost of new investments like machinery and equipment, rather than waiting years. That means more investment, higher productivity, and a stronger economy."

Our report on implementing full capital expensing can be found here.

Responding to the PM’s latest claims around the affordability of the latest defence spending plans, the Taxpayers’ Union is wondering where the recently announced 12 billion dollars of defence spending is coming from.

Commenting on this, Taxpayers’ Union Communications Officer, Alex Emes, said:

“While the PM has claimed ‘we can afford this’, he has yet to explain where this extra $9 billion of defence spending has been magicked up from.”

“If the Government is serious about staying on ‘fiscal track’, they need to start getting serious about cutting wasteful spending to fund this latest big-ticket spending spree.”

“Considering the debt pile is growing by $25 million a day, this Government needs to show some serious savings plans by next month’s Budget.”

The Local Government Funding Agency (LGFA) has increased the borrowing limit for Tauranga City Council from 2.8 times revenue, to 3.5 times revenue.

Taxpayers’ Union Campaigns Manager for Local Government, Sam Warren, responded:

“If you need to borrow 350 percent of your income, you don’t have a revenue problem, you have a spending problem.”

“Mayor Drysdale’s assurance that the limit won’t be touched ‘for now’ doesn’t inspire confidence. Sooner or later, it will be. What steps are being taken to avoid more borrowing and to reduce debt for ratepayers?”

"More to the point, why can't Council live within its means under the current borrowing limit by cutting expenditure on items that aren't essential infrastructure?"

“Tauranga’s growth puts pressure on infrastructure—that’s exactly why the LGFA’s debt limit exists. Loosening the belt on debt isn’t good policy, it’s kicking the can down a very expensive road that ratepayers will eventually need to pay for.”

The latest Taxpayers' Union–Curia Poll will bring a sigh of relief for the Coalition parties as they find themselves able to form a Government again. 

The poll, conducted between 29 March and 01 April, shows National is effectively static, down 0.1 points to 33.5 percent, while Labour is down 4.3 points from last month to 29.8 percent.

The Greens are up 1.0 point to 11.0 percent, while ACT is up 2.3 points to 10.0 percent. New Zealand First is also up 2.3 points to 7.4 percent, while Te Pāti Māori is down 2.2 points to 4.3 percent.

Headline results and more information about the methodology can be found on the Taxpayers' Union's website at www.taxpayers.org.nz/tucur_04_aprpoll2025

For the minor parties, TOP is on 1.5 percent (+1.0 points), Outdoors and Freedom is on 1.0 percent (+0.4 points) and New Conservatives are on 0.4 percent (+0.4 points).

This month's results are compared to the last Taxpayers' Union-Curia Poll conducted in March 2025, available here at www.taxpayers.org.nz/march25_nztupollsuhg

The combined projected seats for the Centre-Right of 64 is up 6 seats from last month. The combined seats for the Centre-Left is down 5 to 57. On these numbers, the Centre-Right bloc could form a Government.

National remains the same as last month on 42 seats, while Labour is down 5 seats to 37. The Greens are up 2 seats to 14, and ACT is up 3 to 13 seats. New Zealand First is up 3 seats on last month to 9, while Te Pāti Māori is down 2 seats to 6.

Commenting on the results, Taxpayers’ Union Spokesman James Ross said:

"The Coalition have been taking a beating in the polls since December, but their fortunes appear to be improving."

"This month the economy crept out of recession, and Chris Bishop's sweeping, pro-growth RMA reforms were announced. It's no coincidence that voters are beginning to swing back behind the Government."

"This Government's chances of re-election are still very much up in the air. But if there's one clear message from the polls, it's this: growth gets votes, stagnation doesn't."

"Budget 2025 is less than 50 days away. Kiwis will want to see high-impact, high-val

Commenting on the proposal to cut 478 roles at Kāinga Ora, Taxpayers’ Union Spokesman Alex Emes said:

“While this is difficult time for those affected, it’s a necessary reset as the agency moves in a new direction."

“But the real savings don’t come from trimming staff—they come from fixing the Ministry of Housing and Urban Development (HUD) contracts so they’re bankable: safe and predictable enough for banks to confidently lend against.”

“Right now, contracts can be torn up on a ministerial whim—no wonder banks won’t go near them. Thousands of Kāinga Ora homes are nearing the end of their useful life. Replacing them will cost billions. Instead of maxing out the taxpayer credit card, let private capital carry the load. A few tweaks to the fine print and we’re talking real savings—no DIY required.” 

Today, President Trump imposed a ten-percent tariff on New Zealand exports to the United States, with the possibility of larger tariffs on agricultural products in the near future. The New Zealand Taxpayers’ Union is warning against any moves to impose retaliatory import tariffs, as these will do more harm than good.

Taxpayers’ Union economist Ray Deacon said:

“Tariffs are just another tax – and like all taxes, they ultimately fall on the shoulders of hardworking New Zealanders. If the Government imposes tariffs in response to protectionist policies overseas, it won’t be foreign companies that suffer. It will be Kiwi businesses and families paying higher prices at the checkout.”

“New Zealand has long prided itself on being a champion of free trade, with some of the most open markets in the world. Imposing retaliatory tariffs would be a step backwards, harming New Zealand’s economy and inviting further trade restrictions from the United States and other countries.”

“Rather than punishing Kiwi consumers with higher prices, the Government should focus on expanding free trade agreements, reducing unnecessary regulations, and making New Zealand a more competitive place to do business.”

“We urge politicians to reject knee-jerk protectionism. Let’s not repeat the mistakes of the past by engaging in a tit-for-tat tariff war that only makes New Zealanders poorer.”

Commenting on the NZ Herald’s story about the Government’s and Council plans for congestion charging.

Taxpayers’ Union spokesman Rhys Hurley said:

“Congestion charging is great in theory to ease traffic and improve productivity, only if it’s managed properly and not used as an excuse to double-dip and squeeze more money out of motorists.”

“With the cost of living biting and fuel prices still sky-high, the last thing drivers need is another financial hit. They’re motorists, not cash cows — and if the Government wants to tax congestion, it must stop milking them at the pump.”

“Every dollar raised should be returned to motorists by cutting fuel taxes or road user charges. Otherwise, it’s just another tax grab dressed up as transport policy.”

The Taxpayers’ Union is slamming KiwiRail following today’s decision by the Ombudsman, revealing $8 million spent on McKinsey mega-consultants. This comes after continued attempts by KiwiRail executives to keep the information from the public, citing ‘commercial sensitivity’ as a reason.

"This is a shocking revelation - $8 million dollars for McKinsey to tell KiwiRail how to do their jobs shows a complete disrespect for Kiwi taxpayers."

“No wonder KiwiRail fought so hard to keep this secret and only revealed the horrible truth when forced to do so by the Ombudsman. This just illustrates further the culture of excess and incompetence at KiwiRail. It is well past time for the Government to implement a formal enquiry into KiwiRail.”

“KiwiRail has a culture of demanding more and more taxpayers’ funds and this is just another example of KiwiRail flushing money into Cook Strait. Taxpayer money needs to stop flowing overseas and stay in the pockets of New Zealanders.”

The New Zealand Taxpayers' Union is calling on the Government to can its costly school lunch programme in light of a new RNZ-Reid Research poll revealing that 61.5% of voters believe parents should be primarily responsible for providing their children's lunches.

Taxpayers’ Union spokesman Rhys Hurley said:

"This poll confirms what we've all been saying: New Zealanders expect parents, not the Government, to feed their kids. It's time to phase out this expensive and wasteful programme."

“When even the majority of Labour supporters don’t support their own legacy programme and over $300 million being spent every year, it’s clear taxpayers are losing out.”

"No child should go to school hungry—but this scheme isn’t working. Despite the best intentions, the pig trough is overflowing and the waste is piling up."

“It's time for David Seymour to scrap the school lunch programme and use the money to fund areas like health, education, or targeted interventions for those families in real need.”

The New Zealand Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that Queenstown Lakes District Council (QLDC) will squander $60.7 million under the plan for a new administrative headquarters.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

"This isn’t a case of need outweighing cost—it’s the opposite. Queenstown’s plan to merge four Council offices into one was originally budgeted at $51 million, but it's now blown out by nearly $10 million. Ratepayers are being asked to foot the bill for a project that's spiralling out of control and is completely unjustified."

"This so-called deal, where Ngāi Tahu Property covers some of the cost, then shares joint ownership with QLDC is nothing more than a backdoor deal that has nothing to do with treaty obligations."

"If relocating HQ to Frankton saves money, ask yourself, who really loses? With locals opposed to the plans and most services moving online, clinging to an outdated, pricey location for staff convenience just doesn’t stack up."

"Ratepayers are facing a 15.8 percent rate hike for 2024–2025. How can you celebrate 'community spirit' when your wallet is being picked clean?"

The Taxpayers’ Union is thanking its departing Executive Director and Co-founder, Jordan Williams, following his appointment as Chair of the Government's Department of Government Efficiency Aotearoa—DOGEA—announced by Minister Willis today.

“When David Farrar and I started the Taxpayers' Union back in 2013—a borrowed office, a jammed printer, and generous support from the Atlas Network—we could never have imagined the organisation would grow to 200,000 subscribers."

“The Government’s decision to set up an agency to rein in waste shows they’re serious about getting back to basics.”

“My first job is to investigate who’s been eating all the school lunches—1News blames the school pigs, though some say the real hogs are already on the payroll.”

"I am delighted to have been tapped on the shoulder to lead DOGEA and I look forward to working productively within Government to fight for taxpayers albeit in a less publicly facing role.”

Taxpayers' Union Co-founder David Farrar says, "As New Zealand’s main voice for fiscal responsibility, I am confident that the Taxpayers' Union will continue to thrive under new leadership. I wish Jordan all the very best in his new role."

The Government has unveiled more details about its plan to buy shiny new ferries for the state owned KiwiRail's Interislander service —with no price tag and no sign of a sale.

Commenting on this, Taxpayers’ Union Spokesman Alex Emes said:

“Taxpayers don’t buy planes for Jetstar, so why are we buying ferries for KiwiRail? Bluebridge has privately sailed the Cook Strait for decades—upgrading ships, turning a profit, and not draining a dollar from the public.”

“Meanwhile, KiwiRail treats the public like a bottomless wallet. Every time its ferries spring a leak, the taxpayer gets soaked.”

“If the Government cared about value for money, it would separate the Interislander from KiwiRail and let private operators do what they do best—run safe, efficient, unsubsidised services.”

“We already contract private operators for public buses and other ferry routes. The Cook Strait should be no exception.”

“Bluebridge proves competition works. It’s time to ditch the bailout buoy and let the Interislander swim on its own.”

Commenting on the revelation that former Kāinga Ora CEO Andrew McKenzie will walk away with a $1.066 million pay out, Taxpayers’ Union Spokesman, Alex Emes, said:

"Forget the farewell card and supermarket voucher, this is just a golden handshake for failure. All for the guy who steered the ship straight into a mountain of debt."

“McKenzie was already on a $731,000 salary, but still scored redundancy and a payment in lieu of notice—despite sticking around for two extra months. Only in the public sector can you be paid to leave and paid to stay at the same time.”

“Kāinga Ora won’t even explain what triggered the extra payout. It’s cloak-and-dagger stuff—with taxpayers left holding the bag.”

“This whole saga shows just how broken New Zealand’s employment laws are. Boards can’t sack incompetent CEOs without writing them a goodbye cheque and a love letter.”

“The Government’s employment law reform Bill—would end the threat of chief executives making personal grievance claims and the need for golden handshakes. It’s time to cut the golden parachutes once and for all, and put taxpayers first.”

For once, it's been a great week for taxpayers! News that the Government is finally getting on top of the Ardern/Hipkins-created "consultant gravy train" is welcome, as are the details for what amounts to the most important thing the Luxon-led Government is likely to do to improve New Zealand's long term prosperity.

Plus, thanks to a very talented Taxpayers' Union student intern, we have an exclusive for supporters of the Taxpayers' Union: we've been leaked a recording of Christopher Luxon's recent call with President Donald Trump, where The Donald gives a lesson on growth... 😉

$800 Million Saved: Crusher Collins Crushes Wellington Consultant Gravy Train 💥🚂

As Minister for the Public Service under Jacinda Ardern, Chris Hipkins grew the core public service (i.e. back-office bureaucrats) so much that by 2023, salary costs were up by 72 percent in six years!

But that surge doesn't count what's made the Wellington partners of KPMG, Deloitte, PwC etc, very well off indeed: a boom in the so-called "cling-on bureaucracy" of consultants.

Now the new Minister, Judith Collins is crushing it, with the Beehive announcing this week:

The Government’s move to cut public sector spending on consultants and contractors is on track to save $800 million over two years – double the initial target, Public Service Minister Judith Collins says.

“We set a two-year target to cut $400 million in spending on consultants and contractors across the public sector by 2024/25,” Ms Collins says.

“The latest update anticipates savings will come in at more than $800 million by the end of June. [continue reading here]

$800 million amounts to $398 for every New Zealand household. Bravo Judith! 👏👏👏

Scrapping the RMA: The Biggest (Regulatory) Tax Cut in Our Lifetime? 🎉🥳

Time and time again, the economic gurus tell us that the biggest handbrake on growth – and therefore New Zealand's long term economic prosperity – is the Resource Management Act.

The RMA is the cause of New Zealand's housing crisis. It blocks (or, at best, seriously hikes the costs of) building infrastructure, it stifles growth, and it makes us all poorer.

So the Taxpayers' Union has always argued that scrapping the RMA isn't just mission critical. It is the litmus test of whether the political elite are serious about New Zealand ever getting back into the top half of the OECD for what we produce per capita.

Labour's David Parker tried to scrap the RMA but failed. Parker's Three Waters-style co-governed, anti-democratic 'Central Planning Committees' regime would have made things even worse! (It was so bad, in fact, that we spent a month on the road to raise awareness).

So, the Government's bolder initiative to Go for Growth and deliver planning laws based on property rights should be more than welcomed. And so far, we like what we see:

• Property rights will be front and centre — if your land use doesn’t harm others, you can get on with it.

• Standardised zoning rules will replace the tangled mess of 1,000+ local variations.

• Red tape will be slashed, with up to 45 percent lower compliance costs

According to National's Chris Bishop and ACT's Simon Court, the reforms are all about returning decision-making back where it belongs: with property owners.

That means minimising potential interference by busybody activists, politicians and clipboard-wielding council officials except where there is a genuine impact on neighbouring property owners (what economists call externalities).

Chris Bishop cites a consultant's report (ironic, we know, given above) which estimates his alternative will deliver a 45 percent improvement in administrative and compliance costs when compared to the current system.

But there's a looooong way to go yet... 💣

No changes will kick in until 2027 – and there's still a lot that could go wrong between now and the actual laws being drafted, consulted on, and passed through Parliament. Chris Bishop says his target is to get it done before next year's election.

But already, the vested interests who thrive on the bureaucratic kumbaya approach of the RMA are out there in the media complaining. A perfect example: Government’s RMA reforms an ‘open attack on Māoridom’ (Stuff.co.nz).

To our astonishment, despite being arguably the most important work stream by the Government, 1News didn't even bother to mention the announcement on Monday's six o'clock bulletin.  So if you're interested in a deep dive into the detail (or don't trust how the media is reporting on it), head over to the Beehive's news item (in particular, see the "Factsheet" listed under "Related Documents").

So, let's ensure that the Government holds firm, and we hope that this announcement reflects a willingness for the Government to be bolder in "Going for Growth". 👍

(EXCLUSIVE) LEAKED CALL: President Trump's Advice to Chris Luxon on how to 'Go for Growth' 🚀💰

Speaking of Going for Growth, we've published an exclusive recording of one of our scarily talented student interns President Trump's recent call with Prime Minister Luxon. 

In it, The Donald tells Luxon how he should kickstart New Zealand's economy (and I can 100 percent assure you, no AI was used for this recording).

Listen to the leaked recording here

Bang for buck, the best possible tax cut: Full Capital Expensing 🚀

In case you missed our Briefing Paper on Full Capital Expensing, head over to our website. 😉

It's the best tax idea for the Government to Go for Growth, but most people haven't heard of it. It lets businesses write off capital investments (the very things that will make New Zealand more productive) instead of drip-feeding depreciation deductions over many years.

Full Capital Expensing = more investment = higher productivity = faster growth = higher wages.

It worked in the US and Britain, and we break it down here.

Health officials lobby against...slides and sandwich boards? 🛝🥪

Public health officials have been called out by the new Health Minister for lobbying: it turns out money meant for health services is being used to employ the fun police.

Instead of tackling public health, officials have been submitting against lawful developments that have nothing to do with public health. Public Health officers have been spending taxpayer money (meant for the health service) lobbying against:

• A Mitre 10 in Petone (because it had too many car parks)
  
  
• Extremely hazardous, err, Sandwich boards outside Nelson bakeries
  
  
• A McDonald’s drive-thru in Wānaka, because... "planetary health" (yes, seriously!)
  
  
• School charity raffles in case they lead to a life of high-stakes gambling
  
  
• A children's playground in Lower Hutt (kids playing outdoors is far too risky, apparently)
  
  
• And even housing developments, because they might "block mountain views"

Every dollar spent nitpicking is taken away from actual healthcare.

So, a round of applause to Minister Chris Bishop for calling it out — and even bigger props to Health Minister Simeon Brown for finally putting a stop to it. 

Predictably, the poor do-gooders taxpayer-funded lobbyists managed to find a Stuff journalist to complain: ‘It’s censorship’: Public health leaders slam ‘Trumpian’ edict (Stuff.co.nz).

We say a Ministerial instruction to bureaucrats to stop using taxpayer money to lobby for things that most taxpayers would not agree is far from 'censorship'. And (regardless of your views on Trump!) surely these taxpayer-funded lobbyists are a lost cause when they have to resort to 'Trumpian' name calling of Minister of Health Simeon Brown.

PETITION: Support equal voting rights in Local Government  🙌🗳️

Last week, National MP Sam Uffindell introduced a Bill to give everybody equal voting rights in local elections.

The Bill extends the equal voting protections for Parliamentary elections in the Bill of Rights Act to local elections—common sense, right?

Right now, different votes can count for different amounts – whether directly through rural or Māori wards or indirectly, thanks to unelected appointees with voting rights. This Bill doesn’t fix the problem of unelected members being appointed to local council, but it's a big step towards 'unscrewing the scrum'.

Equality of suffrage is seen as bad by Radio NZ 🤪

Incredible, New Zealand's very own Pravda – the fully taxpayer funded Radio NZ news service labeled equal voting rights a ‘step backwards’

As highlighted by Taxpayers' Union Cofounder, David Farrar, over on Kiwiblog:

Tauranga MP Sam Uffindell has a simple proposed members’ bill to amend the Bill of Rights Act to have equal suffrage extend to local government.

Equal suffrage is a fundamental human right. The Universal Declaration of Human Rights says:

The will of the people shall be the basis of the authority of government; this will shall be expressed in periodic and genuine elections which shall be by universal and equal suffrage and shall be held by secret vote or by equivalent free voting procedures.

The International Covenant on Civil and Political Rights also states:

To vote and to be elected at genuine periodic elections which shall be by universal and equal suffrage and shall be held by secret ballot, guaranteeing the free expression of the will of the electors

So equal suffrage is a fundamental human right, included in both major global human rights declarations. It is also in the NZ Bill of Rights Act:

has the right to vote in genuine periodic elections of members of the House of Representatives, which elections shall be by equal suffrage and by secret ballot

So our law already states that equal suffrage applies to national elections. Uffindell’s bill would change NZ BORA so it reads:

Every New Zealand citizen who is of or over the age of 18 years has the right to vote in genuine periodic elections by equal suffrage and secret ballot of members of the House of Representatives; and members of local authorities.

So a very simple law change that enhances human rights in New Zealand. So how does Radio NZ report on this proposed bill. Well in this article they quote two opponents of the bill as a “backward step”, and doesn’t go to a single person (apart from the MP proposing it) supporting it for comment.

Remind me why we fund RNZ again? Because if it's objective or trusted news, taxpayers should be demanding their money back!

Unlike Radio NZ, we think this Bill is a good one, but say it should go further and ban unelected appointees from having voting powers at Council as well.

If you have 30 seconds, please back us and sign our petition calling for equal voting rights in local elections.

>> SIGN THE PETITION ✍️

ACC's latest $243,000 is a pain in the backside 🍑🤭

Wellington City Council's $22,000 Hikoi 'flush-fund' 🚽🧻

Our investigations team have caught Wellington City Council spending $21,702 of ratepayer money on portaloos for the Toitū Te Tiriti Hīkoi protest—despite never funding toilets for any other protest or having a policy to do so.

The Council admitted this was a one-off exception, not part of any established process. Every other protest pays for its own loos, so why were ratepayers forced to cover the bill for a cause council officials happen to support?

With an 18.5% rates hike already hitting Wellingtonians, the portaloos aren't the only thing that stinks here – especially when it's public facilities/services that only appear when it's a protest the Mayor's own Green Party sides with.

Other news in brief 📰⏰

• Last week, we made our submission on Media Reform: Modernising regulation and content funding arrangements for New Zealand. Read our submission here. 
• The New Zealand Defence Force has announced 374 civilian job cuts ✂️
• GDP-per-capita grew 0.4 percent, the first growth in more than two years 📈
• Western Bay of Plenty District Council the latest to leave Local Government New Zealand 👋
• The Ombudsman has called for Chief Execs to be personally liable for OIA failures 🙌
• Auckland City Councillors have been handed 150 free tickets by the owners of a stadium whose future they voted on this Thursday 🏟️ Our sister group, the Auckland Ratepayers' Alliance, is rightly calling it out.

Have a great weekend.

Jordan Williams Executive Director New Zealand Taxpayers’ Union.

A meeting held on Wednesday saw unelected Iwi appointees reinstated with voting powers on Tauranga City Council committees, following a decision made by councillors in December.

Sam Warren, Local Government Campaigns Manager for the New Zealand Taxpayers’ Union, said:

“In a democracy, only elected representatives have voting powers on council committees. If it’s not democracy that Mayor Mahé Drysdale wants, he needs to front up to voters.”

“Hiding behind vague pseudo-legal claims that unelected appointees with voting powers are a requirement of both the Resource Management Act and the Treaty won’t work.

"If the Mayor and councillors are confident this is what voters want, then they should put the decision to a referendum. What right do they have to sign away democracy without even asking electors?”

“This comes just days after Tauranga MP Sam Uffindell introduced a Members’ Bill to extend the same protection for equal voting rights in parliamentary elections to local government. At least one politician in Tauranga is on the side of democracy.”

The Taxpayers’ Union is welcoming today’s announcement from Local Government Minister Hon Simon Watts and Commerce and Consumer Affairs Minister Hon Scott Simpson that Wellington Water will be subject to economic regulation by the Commerce Commission at the earliest opportunity.

This will require the troubled water provider to regularly report to the public and the Commission on key financial and performance measures.

Taxpayers’ Union spokesman, James Ross, said:

“Wellington Water has been a basket case – literally pouring ratepayers’ money down the drain and treating them like an unlimited fountain of cash.”

“The fact it didn’t even have a basic asset management plan says it all. Contractors ran the show while Wellington Water looked away and signed the cheques.”

“How has this slow-motion trainwreck been allowed to blunder on for so long? Ministers have made the right call stepping in and shining some much-needed sunlight on this entity’s disastrous record.”

“The real worry now is how many more Wellington Waters are lurking out there. Local Water Done Well can’t come soon enough.”

The Government has announced $150 million in cheap taxpayer-backed loans for Community Housing Providers (CHPs)—propping them up with training wheels instead of letting them ride with private capital.

Commenting on this, Taxpayers’ Union spokesman James Ross said:

“This is Kāinga Ora-lite—same subsidies, different logo. Taxpayers shouldn’t be on the hook when private capital is ready to go.”

“Kāinga Ora’s debt is projected to explode from $2 billion in 2017 to nearly $25 billion by 2026. Now we’re repeating the same mistakes with CHPs without fixing the Ministry of Housing and Urban Development contracts that scare off banks.”

“If the Government truly wanted to empower CHPs, it would fix the contracts to make them bankable—which means predictable and safe enough for banks to confidently lend against. That costs nothing and unlocks billions in private finance—no taxpayer IOUs required. The houses get built, quality stays high, and taxpayers are off the hook."

“We already use private capital for kindies and retirement homes with no fuss or fanfare. If toddlers and retirees can handle it, so can the Minister.”

The Government’s reduction in consultants and contractors is set to save $800 million, while the public service workforce has shrunk by 4 percent to 62,968 FTEs.

Taxpayers’ Union spokesman Rhys Hurley said:

“Fewer consultants writing pointless reports and sucking up taxpayer dollars is good progress—but let’s not pretend this is some kind of fiscal detox. Back in 2017, the public service was a smaller beast at 47,252 FTEs.”

“That means we’re still paying for nearly 16,000 more mandarins to lap it up at the taxpayer buffet. These aren’t frontline workers like doctors or teachers—these are the back-office bureaucrats pulling the strings and doing the Ministers’ bidding.”

“The Government needs to go full cold turkey and ditch the extra public servants. Trimming a little off the top won’t cut it. Nicola must show she’s serious in Budget 2025 and bring staffing at least back to 2017 levels. New Zealand deserves a healthy fiscal future—not one weighed down by an overstuffed bureaucracy.” 

The Taxpayers’ Union can reveal through an Official Information Act request that the Ministry for the Environment has handed out $3,839,094 (exc. GST) to environmental NGOs over the 2023/24 and 2024/25 financial years—without a single report measuring its effectiveness.

Amongst the big winners are the Environmental Defence Society ($377,743) and Forest & Bird ($200,000)—groups that have spent the last two years attacking the Government’s policies in court and the media.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“This isn’t environmental protection—it’s a taxpayer-funded activist slush fund.”

“Kiwis don’t fork out their hard-earned money so lobbyists can live off taxpayer handouts. If these groups have real public support, they should stand on their own two feet.”

“The Minister has put a stop to some of this funding—but the real problem is MfE itself. It’s ballooned from 360 staff in 2017 to 939 today. Clearly, they’ve got far too much time and money on their hands.”

“These activist handouts are just the tip of the iceberg. Nicola Willis needs to take an axe to MfE’s funding in the May Budget and slash this bloated bureaucracy back to size.”

The Government’s announcement today of legislation to finally repeal and replace the Resource Management Act (RMA) is a long-overdue, much-needed win for New Zealand’s productivity. Taxpayers’ Union Spokesman, James Ross, said:

“The RMA has long been a bureaucrat’s dream and a developer’s nightmare. It’s been a lead weight around New Zealand’s neck — throttling housing, blocking infrastructure, jacking up costs and stifling growth.”

“This new system puts the right to use your own land back where it belongs — in the hands of the people who want to build and grow, not clipboard-wielding council officials or meddling neighbours from across town.”

“Councils will no longer be able to tie Kiwis up in red tape for wanting to build a deck or a granny flat. It’s a return to common sense, where resource management means managing actual resources — not micromanaging people’s lives.”

“This is the sort of bold, pro-growth reform New Zealand has been crying out for. This is a huge win for anyone who wants to spend less time filling out forms and more time laying down foundations.”

The New Zealand Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that Dunedin City Council (DCC) has spent a staggering $1.365 million over just three years on consultation with Aukaha—an iwi-owned consultancy firm—with ratepayers now hit by an average rates hike of 17.5%.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“Ratepayers expect their money to go toward fixing potholes, maintaining pipes, and keeping life affordable—not six-figure bills for cultural interpretations for cycleways. In a cost-of-living crisis, this looks less like cultural engagement and more like virtue-signaling with other people’s money.”

“Among the more eye-watering line items are $100,310 for Harbour City Cycleway cultural interpretation and $94,984 for George Street design work. If that wasn’t enough, the Council is cutting Aukaha a $750,000 cheque for handouts to clubs and groups.”

“The Government has rightly decided to scrap Councils’ focus on social and cultural ‘wellbeings’ and get them back to getting the basics right first, and it’s time Dunedin Council followed suit.”

“Ratepayers deserve roads that aren’t crumbling and bills that don’t break the bank—not more than $40,000 spent on consultancy for a landfill.”

The New Zealand Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that Wellington City Council flushed $21,702 (exc. GST) of ratepayer money on portaloos for last November’s Toitū Te Tiriti Hīkoi protest—despite having no policy on funding facilities for protests and never having done so before.

Taxpayers’ Union Investigations Coordinator Rhys Hurley says:

“The portaloos aren’t the only thing that stinks here - councils shouldn’t be playing political favourites with ratepayers’ money.”

"The Council have never funded protest facilities before—why now spend tens of thousands playing politics when organisers have always managed before to pay their own bills?"

“In the same year as an 18.5% rates hike, Wellingtonians overwhelmingly want their Council focussed only on delivering essential services - that doesn’t include subsidies and handouts for political causes staffers happen to agree with.”

“If the Council insists on spending ratepayers’ money on non-Council events, it needs a clear and consistent policy—not inconsistent decisions that reek of bias.”

New figures obtained by the Taxpayers’ Union under the Official Information Act request lay bare an embarrassing trend—ACC claims for injuries involving objects stuck where the sun doesn’t shine are on the rise, with taxpayers left to pick up the tab.

In the 2023/24 financial year alone, ACC shelled out $125,348 for these mishaps—a sharp increase from the previous year’s $50,093. Worse still, claims have already hit $117,799 in 2024/25, putting Kiwis on track for yet another record-breaking year of reckless insertion incidents.

In the last full year, Auckland remained New Zealand’s capital of curiosity gone wrong, while Wellington, Southland, and Otago bring up the rear in joint second place. 

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“What Kiwis do in their own time is their business, but when things get stuck, why are taxpayers stuck with the bill?”

“With ACC levies soaring, it’s taxpayers getting hit in the back pocket—making them the real butt of this costly joke.”

“But unfortunately, this is just one example of wasteful ACC spending habits. With ACC under review for performance mismanagement and ballooning costs, New Zealanders deserve a full review of how ACC funds are spent—and where to draw the line on personal responsibility.”

After eight consecutive quarters of decline, New Zealand’s GDP per capita has inched up by 0.4%.

Commenting on this, Taxpayers’ Union spokesman James Ross said:

“Kiwis can breathe a small sigh of relief, but it’s far from time to pop the champagne. Even after two years of declining living standards, Kiwis are still much poorer than this time two years ago.”

“The Government’s cautious approach is failing to deliver enough. We need serious reform to break out of this economic slump—starting with Full Capital Expensing.”

“Letting businesses deduct the full cost of investments immediately—rather than dragging the process out over years—put a rocket under the US economy. We need the same medicine here.”

“With Budget 2025 just two months away, Nicola Willis has a choice: settle for stagnation, or deliver a pro-growth Budget with Full Capital Expensing front and centre.”

The New Zealand Taxpayers’ Union is slamming the Department of Internal Affairs (DIA) for its token attempt to trim its bloated workforce, with just 64 jobs on the chopping block.

Taxpayers’ Union Spokesman Rhys Hurley said

“In 2017, DIA had 2,159 staff. Fast forward to 2024, that number had exploded to 2,871. Now they have the cheek to demand a pat on the back from the Minister for shaving off a measly 64 roles. Give us a break.”

“The Government promised to rein in the sprawling bureaucracy that has been sucking up taxpayer dollars, and a handful of job cuts won’t do it.”

“DIA’s staffing should return to 2017 levels—at minimum. And the same goes for every other department and agency that ballooned under the last government. Every cent wasted on unnecessary pen pushers is a cent that could be funding frontline services, tax relief, or paying down the growing government debt.”

“Minister van Velden must take accountability and show she is serious about delivering real savings within her Ministry, not just tinkering around the edges.”

Western Bay of Plenty District Council has today voted to leave Local Government New Zealand (LGNZ) with one councillor saying it has swung ‘so far left’ that it no longer represented local views.

“Western Bay of Plenty is the latest council to ditch the increasingly toxic group” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“Councils for years have been under the thumb of hardcore political ideologues not remotely capable of tolerating any views other than their own. LGNZ sold out the day it decided to push Labour’s divisive Three Waters plans, abandoning genuine localism for a radical, centralising agenda.”

“Under the guise of localism, LGNZ is nothing more than an activist group backing bureaucrats instead of the locals paying the enormous yearly membership fees.”

“Bravo to Western Bay of Plenty, the latest to join the ranks of six other councils abandoning the group, including Auckland, Christchurch, Grey, Kaipara, West Coast Regional, and Westland. Who will the next domino be?”

The New Zealand Taxpayers’ Union can reveal through an Official Information Act request that KiwiRail has spent $87,259 on murals—including a “kitty mural” and various cultural artworks—while Wellington commuters continue to endure delays, cancellations, and fare hikes.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“Wellington commuters should be fur-ious that KiwiRail is prioritising feel-good pet projects while services go to the dogs.”

“After clawing a 10% fare hike out of commuters in 2024, followed by another 2.2% increase this year and cuts to off-peak discounts, KiwiRail’s focus clearly isn’t on making life easier for commuters—it’s apparently on painting staff members’ cats all over train stations.”

“KiwiRail claims the murals will ‘bring colour, joy, and beauty’ to commuters and help deter graffiti. But if they really want to bring joy, they should cut the vanity projects and focus on delivering reliable trains at a fair price.”