An external review into New Plymouth District Council has revealed a lack of financial reporting knowledge as the cause of its recent rates blunder. Mayor Neil Holdom says he has taken ‘full responsibility’ for the error, but still has no plans to resign.

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

“As far as mistakes go, it’s about as serious as it gets. The mayor taking responsibility is only an empty gesture of faux martyrdom. What it means is that no one will be held accountable for such an expensive blunder.”

“The question needs to be asked, what does it take to be fired in this circus? We deserve better, and ratepayers shouldn’t be on the hook for what seems to be pure ineptitude by council.”

“As councillors sit down to try find more than $3 million in their budget, ratepayers will be asking why more effort wasn’t made to find savings in the first place and reduce the burden of potentially double-digit rates increase. Now is the time for rates capping, not later.”

The New Zealand Taxpayers’ Union can reveal through Official Information request that seven government departments and councils have spent $218,012 developing their own separate Māori language and cultural training apps despite the existence of a national Māori Language Commission and multiple taxpayer-funded training programmes already in place.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“We’ve got a Māori Language Commission, we’ve got staff training programmes, we’ve got online learning tools - so why is every agency now building its own apps?”

“This is a perfect example of bureaucratic duplication. Every department wants its own badge, its own brand, its own slice of the cultural competency pie, all funded by the public purse.”

“Some of these apps cost more than $35,000 and reached fewer than 2,000 people. Waikato Regional Council knew other apps already existed before building its own. That’s not helping Māori, it’s just self-indulgence.”

"With this many apps found via tips alone, imagine how many more exist. A centralised, shared platform for the public service instead of this wasteful agency-by-agency approach is needed."

"We don’t need seven apps, we just need one that works." 

 

Responding to Statistics New Zealand’s announcement that annual inflation has climbed to 2.7 percent, Taxpayers’ Union spokesman James Ross said:

“Councils are driving a cost-of-living crisis. The latest figures show annual inflation hitting 2.7 percent, and more inflation pain is on the way next quarter as the latest round of rates hikes kick in.”

“We saw this last year when Statistics NZ confirmed that more than half of the Q3 inflation spike came from council rates alone. That clearly wasn’t a one-off, as ratepayers have been hammered with a 34 percent average rates increase over the past three years.”

“This is a vicious cycle. Councils hike rates, that drives up inflation, which delays interest rate cuts, and households get squeezed from both ends.”

“The message is clear: councils won’t stop unless they’re made to. Capping rates is no longer just a nice idea, it’s essential if we want to get inflation down and take pressure off Kiwi households.”

The Taxpayers’ Union is responding to news the $1.4 billion National Ticketing Solution provider Cubic has had its credit rating dropped, in addition to falling behind targets due to technical complications with the project.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“How many more red flags does the Government need? Instead of choosing proven, off-the-shelf systems already working in cities across Australia and the world, they handed the job to a defence contractor to build something custom.”

“Off-the-shelf systems that accept contactless payments and mobile wallets are already up and running in dozens of cities. They’re cheaper, faster to roll out, and more reliable. There’s no reason we can’t have that here while keeping existing discount cards for students, seniors, and others.”

“Despite plans to throw more than a billion dollars at this white elephant, commuters are still stuck waiting for basic features like tapping on with a bank card. Meanwhile, bureaucrats and consultants continue to cash in.”

“The Government needs to cut its losses. Stop pretending we’re building something world-leading. Keep the discount system, but switch to technology that already works and that people already use every day.”

 

The New Zealand Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that some New Plymouth District councillors have missed dozens of official meetings. Released attendance records show multiple councillors regularly giving no apology at all for absences, despite being paid to represent ratepayers.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“Wagging work wouldn’t fly in the private sector, and it shouldn’t when ratepayers are forking out tens of thousands for councillors who don’t even show the respect of apologising for not turning up."

“Local government isn’t just a side-hustle for the lucky few, and the bare minimum ratepayers expect of their elected officials is to show up. If councillors can’t - or won’t - attend the meetings, then they shouldn’t take the pay.”

“This needs to be a wake-up call for restoring basic expectations in local government. Ratepayers need recall elections so they’re not stuck waiting three full years to sling out councillors who won’t do the job they’re paid for.” 

Responding to news that the Government is extending childcare subsidies to families earning up to $229,100 a year, the Taxpayers’ Union is calling the move completely out of touch.

Taxpayers’ Union spokesperson Tory Relf said:

“If you're pulling in nearly double the average household income, you do not need a handout from other working taxpayers to help pay for daycare. The average household income is around $120,000.”

“It’s not often we find ourselves agreeing with the CTU and Craig Renney, but they’re absolutely right to call this out. The Government should be focusing support on families genuinely doing it tough, not those who are objectively well-off by any national measure.”

“The whole point of FamilyBoost was to ease pressure on low- and middle-income families. Creep the threshold high enough and suddenly it’s just free cash for the comfortable.”

“If the Government thinks someone on $229,000 needs help with childcare, maybe they should spend a day living on the median household income instead. When you're earning more than $200k, taxpayers don’t need to be picking up the bill.”

A significant blunder in New Plymouth’s annual plan, described as a ‘typo’, could see ratepayers pay more than $100 this year than initially indicated.

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

“It’s hard to understate how much of a cock-up this is. Ratepayers deserve far better attention to detail as they face even higher rates than already forced on them.”

“Released earlier this week, the Rates Dashboard showed an average increase this year of 8.39 percent across the country for the year. New Plymouth’s mistake could push that average up to 8.79 percent, depending on how the council reacts.”

“Rather than add costs on top of their already high rates, Council needs to do right by their ratepayers and search for the savings in the budget. How can the council expect ratepayers to budget when they can't do it themselves?"

"This whole bungle is why we need to Cap Rates Now and get Councils focused on the bottom line. More than 29,000 Kiwis have signed the petition, demanding big change in how our councils are run."

 

Commenting on ACT leader David Seymour’s remarks that rates caps should wait until local government costs are under control, Taxpayers’ Union spokesman James Ross said:

“Spiralling rates are one of the biggest drivers of the cost-of-living crisis, with the average bill ballooning 34 percent in just three years. Ratepayers can’t afford to sit around waiting for councils to fix themselves.”

“Local government won’t rein in its own spending until it’s made to. The fact LGNZ is planning a ratepayer-funded campaign to block rates caps tells you everything you need to know.”

“If the Government wants to get costs under control, it should scrap councils’ power of general competence at the same time and get them back to doing the basics well. It’s as simple as that, no excuses needed.”

“Ratepayers are behind Local Government Minister Simon Watts and his plans to have caps in place before Christmas. Over 29,000 New Zealanders have already signed the petition, now is the time to cap rates.”

 

The Taxpayers’ Union is calling out Crown Regional Holdings (formerly the Provincial Growth Fund) after a new report revealed more than 54 percent of its $257 million loan book is at risk of default or impairment and three more recipients have gone into liquidation since the report was finalised.

Taxpayers’ Union Spokesman Rhys Hurley said:

“This isn’t economic development, it’s taxpayer roulette. When more than 54 percent of your loan book is at significant risk, you’re not investing, you’re gambling with taxpayers money.”

“If the chair of this group says that no bank would go near these projects, why is the Government stepping in with its chequebook drawn? The PGF was always about pork barrel politics, picking winners for political convenience, not economic merit.”

“The days of pork barrel politics have gone on too long, it’s time to shut the casino down.”

Responding outside the Local Government New Zealand (LGNZ)'s Annual General Meeting this morning, where 82 percent of members voted to mount a ratepayer-funded campaign against the Government and the Taxpayers Union's efforts for rates capping legislation, Taxpayers' Union Executive Director, Jordan Williams, said:

"LGNZ are gaslighting ratepayers. So desperate to defend rates having gone up by more than 34 percent over the last three years – two and a half times the level of inflation – they now plan to spend ratepayer money to fight ratepayers."

"This is a middle finger from LGNZ, not just toward ratepayers, but towards Local Government Minister Simon Watts and Prime Minister Christopher Luxon for trying to get the cost of living under control."

"LGNZ is nothing but a left-wing Labour Party political campaign. Any pretence of political neutrality or moral authority has vanished with this vote."

"Tens of thousands of Kiwis have signed the petition to Cap Rates Now."

"At 11am this morning local ratepayers will be protesting LGNZ's decisions outside the Christchurch Convention Centre. Minister for Local Government Simon Watts will be invited to address the crowd."

The Minister for Local Government has today announced plans to refocus councils through the Local Government (System Improvements) Amendment Bill to Parliament.

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

“The announcement is a welcome the course of travel to improve a desperately broken sector. But the devil is in the details and until we see what’s under the hood, it’s impossible to know how far the Bill actually goes.”

“It’s important the Bill sufficiently reins in councils to  focus on just the basics, and make sure that future rates increases are kept as low as possible for households.”

“Inspiration can be found in the Building Better Councils briefing paper, which sets the bar for true council reform. Policies like rates capping and the removal of general competence from councils are non-negotiable in bringing in effective change to Local Government.”

"Rates are out of control, and Councils have been exposed in the Rates Dashboard that shows how dire the situation is for struggling Kiwis."

“We cannot afford half-measures when rates have soared by more than two-and-a-half times the rate of inflation in just three years. More than 28,000 Kiwis have signed the Cap Rates Now petition in response to these excessive increases, and are demanding to see change in local government."

The Taxpayers’ Union has today launched the 2025 New Zealand Rates Dashboard at RatesDashboard.nz

The Rates Dashboard is for ratepayers to track and compare their council's annual and cumulative rates increases with councils across New Zealand. It shows the average cumulative rates increase over the current three-year council term is an astonishing 34.4 percent – more than two and a half times inflation over the same period. The average for 2025 alone is 8.39 percent.

Local Government Campaigns Manager, Sam Warren, said:

"The dashboard shows that the average Kiwi household now faces a rates bill more than a third higher than just three years ago. Over the same timeframe, inflation has been just 13.7 percent.”

"This year alone, the average rates increase is 7.4 percent - that’s still nearly three times the current 2.5 percent inflation rate." 

"Ratepayers can see how their council compares at RatesDashboard.nz."

“These numbers represent real pain being felt by ratepayers, including reports of ratepayers being forced out of their homes. They show why UK or Australian-style rates capping is so urgently needed. Councils should be forced to keep rates under the level of inflation unless approved by local referenda.”

“More than 28,000 Kiwis have signed the Cap Rates Now petition and looking at the Rates Dashboard, it's no wonder ratepayers are angry and LGNZ know it's in trouble."

NOTES TO EDITORS:

The Taxpayers' Union 2025 Rates Dashboard can be found at RatesDashboard.nz

The top ten highest cumulative rates increases over the current three-year electoral term are:

• West Coast Regional Council – 65.57%
• Greater Wellington Regional Council – 54.67%
• Taranaki Regional Council – 51.02%
• Queenstown-Lakes District Council – 50.23%
• Hastings District Council – 48.76%
• Central Otago District Council – 47.95%
• Wellington City Council – 47.03%
• Upper Hutt City Council – 46.92%
• Gore District Council – 46.60%
• Otago Regional Council – 45.76%

 
The top ten highest rates increases for 2025 are:

• Clutha District Council – 16.59%
• Upper Hutt City Council – 15.78%
• Hamilton City Council – 15.50%
• Waipa District Council – 15.50%
• Hastings District Council – 15.00%
• Selwyn District Council – 14.20%
• Grey District Council – 13.73%
• Queenstown-Lakes District Council – 13.50%
• Westland District Council – 13.20%
• Taranaki Regional Council – 12.90%

The New Zealand Taxpayers’ Union can reveal, through a Official Information Act request, that Oranga Tamariki is burning through $1.97 million a year on salaries for a 14-person communications team.

Every single one of these staff earn over $100,000.

The team includes media advisors, senior comms managers, and a organisational communications manager.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“Oranga Tamariki is drowning in PR while kids fall through the cracks. Nearly $2 million on spin doctors, each on over $100k, is funding not going to social workers, caregivers, or kids in crisis.”

“This isn’t about informing the public, it’s about controlling the narrative. Taxpayers aren’t funding care, they’re funding damage control.”

“A bloated comms team paid at least 30 percent more each than the median wage would be bad enough in a company, but in a government agency meant to protect vulnerable children, it’s obscene.”

“A return to 2017 public service numbers is the only way to stop the Wellington bloat. It was good enough for John Key and Bill English, it’s time for Luxon and Willis to follow their lead.” 

Good news for the Coalition as they extend their lead over the Centre-Left bloc this month, with National taking back the top spot from Labour in this month's Taxpayers' Union-Curia Poll.

For the first time in a Taxpayers' Union-Curia Poll, New Zealand are the third most supported party, leapfrogging both the Greens and ACT.

The poll, conducted between 02 and 06 July 2025, shows National gain 0.4 points to 33.9 percent, whilst Labour drop 3.2 points to 31.6 percent.

New Zealand First gain 3.7 percent to 9.8 percent, whilst ACT remain unchanged on 9.1 percent. The Greens gain 1.2 points to 9.4 percent, while Te Pāti Māori gain 0.2 points to 3.5 percent.

Headline results and more information about the methodology can be found on the Taxpayers' Union's website at www.taxpayers.org.nz/pollnztu_20250710

For the minor parties, TOP is on 1.2 percent (-0.6 points), New Conservatives on 0.5 percent (-0.2 points), and Outdoors and Freedom is on 0.1 percent (-1.0 points).

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

The combined projected seats for the Centre-Right of 65 is up 3 seats from last month. The combined seats for the Centre-Left is down 3 seats to 57. On these numbers, the Centre-Right bloc could still form a Government.

National remains on 42 seats again this month, while Labour drops 5 seats to 39. New Zealand First gain 4 seats to 12, while the Greens gain 2 to 12. ACT drops 1 to 11, while Te Pāti Māori remain unchanged on 6 seats.

Cost of Living overtakes the Economy more generally as voters' top issue, rising 3.5 points to 21.6 percent. Economy drops 1.1 points to 19.1 percent and Health is in third place on 13.3 percent (+1.4 points).

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

“Cost of living is voters’ single biggest concern, and housing costs – particularly council rates – are the biggest contributor to that pressure.”

“With councils slapping ratepayers with, on average, another 8.71 percent rates hike, Shane Jones’ call to scrap regional councils is clearly cutting through.  National Ministers backing rates capping appears to also be shoring up a boost in the centre-right bloc.”

Rates are soaring, transparency is declining, and too many councils are distracted from their core tasks. Whether it’s funding vanity projects, hiring communications staff instead of fixing potholes, or embarking on ideological crusades, councils are too often putting their own agendas ahead of the ratepayers they are supposed to serve.

The numbers speak for themselves. Council debt has ballooned in the last decade, and last year alone, average residential rates increased by almost 15 percent across the country. And despite all their spending, public satisfaction with council performance is falling. Infrastructure is failing, planning processes are sluggish. As a result, voter turnout in local elections continues to decline.

New Zealanders deserve better.

The proposed solutions in this paper are not radical, but are intended to reduce waste and improve performance across the sector. Local government should be lean, transparent, and focused. It should deliver high-quality services at a reasonable cost and be held accountable when it doesn’t.

These reforms are a roadmap to achieving that. This is how we build better councils.

The New Zealand Taxpayers’ Union is calling out Tauranga Mayor Mahé Drysdale for pushing amalgamation across the Bay of Plenty, as combining councils means less local control and higher costs, not more efficiency.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“Amalgamation is always sold as a cost-saving silver bullet but the Auckland Super City resulted in the opposite. Bureaucracy grew, accountability reduced, and ratepayers now pay more for less.”

“Local control gets replaced by centralised committees, local voices get drowned out, and local residents lose the ability to hold the ease of holding their representatives accountable. It’s not reform it’s consolidation dressed up as progress.”

"Tauranga residents already face a Crown-appointed commission with no democratic control. Bigger bureaucracies don’t deliver better outcomes, they just get better at wasting money.”

"The real solution is cutting waste, a greater use of shared services and capping rates, not stripping local communities of their say."

The Taxpayers’ Union has praised Waikato Regional Council for its decision to withdraw its membership to Local Government New Zealand (LGNZ) citing costs, relevance, and left-leaning politicalisation.

Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union, said:“Councils have woken up to how disconnected LGNZ are from reality. Their six-figure memberships provide no value to ratepayers and, despite ongoing denial, the organisation has turned out to be little more than a mouthpiece for left-wing politics and activism.”

“Last week the Taxpayers’ Union uncovered secret plans from LGNZ to mount a campaign against rates capping - and to pay for it with ratepayer funds. Attacking locals with their own money isn’t just dirty, it’s morally bankrupt.”

"LGNZ's attacks have only sparked more urgency to Cap Rates Now, which has gained more than 28,000 signatures from Kiwis wanting to see councils reined in."

“Waikato Regional is now the eighth council to pull out of LGNZ - and rumours are swirling that more are to come. As the dominos fall, we only ask that the last council to cut its membership with LGNZ remembers to turn off the lights.”

Commenting on the Reserve Bank’s decision to hold the Official Cash Rate at 3.25 percent, Taxpayers’ Union Spokesman James Ross said:

“Housing is the biggest driver of the cost-of-living crisis, and runaway rates bills are making it worse. Just weeks after councils pushed through hikes averaging 8.71 percent, households are at breaking point.”

“Interest rates are already dragging down economic growth, but the Reserve Bank has little choice but to keep doing damage while rising council rates continue to fuel inflation in the background.”

“This pause in the OCR should be a wake-up call. If the Government is serious about easing cost-of-living pressures it has to cap rates hikes to inflation, starting now.”

 

The New Zealand Taxpayers’ Union is calling out the public service after the release of the 2025 Public Service Census, which reveals widespread dissatisfaction among government workers, despite enjoying average salaries of $101,700 - around 30 percent more than the average Kiwi.

According to the census:

• Only 34 percent of public servants are satisfied with their pay
• Just 30 percent believe their pay reflects their performance
• Only 44 percent are confident that public servants get jobs based on merit

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“This is what life in the Wellington bubble looks like - being vastly overpaid and still complaining taxpayers aren’t giving you enough. Ordinary New Zealanders are battling the cost of living while the public service is bloated, overpaid, and still thinks it’s hard done by.”

“Add in the fact less than half believe their colleagues earned their jobs through merit and the Public Service Census should terrify anyone who believes in a capable, cost-effective public service. With still more than 15,000 extra bureaucrats since 2017, Ministers need to dig deep into this census and root out the hangers-on who don’t deserve their bloated salaries.”

“The public service exists to serve the public, not be a plush make-work scheme. Tying bureaucrats’ wages to their performance would finally deliver some value for money, and be a much-needed wake-up call for the Wellington blob.” 

 

The Taxpayers’ Union is welcoming Christchurch Mayor Phil Mauger’s support for the campaign to cap annual council rates increases, and labelling him a 'ratepayer hero'.

Taxpayers’ Union, Investigation Coordinator, Rhys Hurley, said:

“Councils have been using ratepayers as a bottomless ATM. It’s refreshing to see a mayor finally admit that the current model is broken and something needs to change.”

“Christchurch’s rates have gone up nearly 25% over the past three years far outpacing inflation. Ratepayers aren’t getting 25% more value. They’re getting bloated budgets, pet projects, and everything else no one asked for.”

"Mayor Mauger’s suggestion of a 5% rates cap is a welcome step, but anything above inflation is still a pay cut for ratepayers."

“Councils won’t make tough choices until they’re made to. Rate Caps Now does exactly that.”

"But at a time when LGNZ is planning a sneaky campaign to use ratepayer money to lobby against and undermine Simon Watts' proposal to cap rates, it's refreshing to see that the local government sector still has true leaders who stand on the side of fiscal prudence and affordable rates. A ratepayer hero in the Garden City."

Labour leader Chris Hipkins has come out in opposition to rates capping, despite rates bills soaring 43.69 percent since 2022.

Responding to this, Taxpayers’ Union spokesman James Ross said:

“As if trying to rob local control through Three Waters wasn’t bad enough, now Labour are taking another stab at ratepayers by trying to force them to swallow year after year of massive rate hikes. Labour’s obsession with big government and bigger bills clearly hasn’t gone away.”

“Despite years of people doing it tough through a cost-of-living crisis, Hipkins thinks stopping councils from bleeding families dry is a bad idea. But with 28,000 people already backing the Cap Rates Now petition, ratepayers clearly disagree.”

“Rates caps mean councils getting back to doing the basics well: roads, pipes, rubbish. Wasting ratepayers’ hard-earned cash on vanity projects and spin doctors has to stop, and rates caps are the answer.”

Information revealed by the Reserve Bank of New Zealand shows staff are cashing in on generous perks, with some out of the office for nearly 100 days a year while taxpayers foot the bill.

New figures reveal 70 percent of staff work from home at least one day a week. Employees get five weeks’ annual leave, can buy three more at two percent of their salary, and receive 15 days of wellness leave. 

In the last year alone, the Bank spent $535,000 on wellness perks like gym memberships, $58,000 on home office subsidies, and close to $20,000 on morning teas.

Taxpayers’ Union Spokesman James Ross said:

“No wonder staff numbers have blown out 2.5 times since 2018. When they’re barely in the office, racking up perks, and getting nearly 100 days off a year, who wouldn’t want to join the gravy train?”

“The numbers speak for themselves. While staff are off-site, taxpayers are footing the bill for gym memberships, morning teas, and extended holidays.”

“The Reserve Bank has a job to do, and it can’t do that whilst it’s roleplaying as a wellness retreat. It’s no great surprise RBNZ’s failures have seen the economy hit a brick wall.”

“The Government put their foot down in September last year, telling Wellington it’s time to get back to work. RBNZ need to get the memo or find new jobs.”

The Taxpayers’ Union has uncovered previously secret plans from Local Government New Zealand (LGNZ) to mount a full-scale public campaign against rates capping —paid for with ratepayers’ own money.

“It’s shameless stuff from LGNZ, attacking ratepayers with their own money,” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“Documents provided to the Taxpayers' Union expose that LGNZ is seeking support from councils to fund a nationwide political campaign against rates capping, despite years of excessive rates hikes and overwhelming public support for the measure to limit rate hikes to inflation unless public local referenda are held.”

“A handful of councils have already withdrawn from their expensive memberships due to LGNZ’s politicalisation, and this should be a wakeup call to the rest."

“And just like their actions during the last Government's push for Three Waters, what we’ve found shows their true colours. It’s getting harder to shrug off accusations that LGNZ is anything more than a ratepayer-funded activist group – which LGNZ have called a ‘misconception’."

“More than 27,500 Kiwis have signed the Cap Rates Now petition, and LGNZ are clearly panicked. Kiwis want rates capped, not hijacked to fund yet-more LGNZ self-interested political campaigning."

The New Zealand Taxpayers’ Union is calling for urgent reform after the Centre of Digital Excellence (CODE), a government-backed gaming grant scheme, has received millions in public funding.

Despite being started by MBIE and Dunedin City Council, CODE is structured as a limited liability company, meaning it doesn't have to comply with Official Information Act requests.

Taxpayers’ Union spokesman, Rhys Hurley, said:

“Taxpayers have every right to ask where their money is going and whether it’s delivering real value for New Zealand.”

“When millions are being handed out to game developers, that’s money that’s not going to police, teachers, or nurses. We should be backing our frontline services, not speculative projects with little to show for it.”

“This isn’t just about waste, it’s about oversight. CODE is free to operate in the shadows, free from public transparency laws. That means no clear reporting, no independent assessment, and no way for taxpayers to hold them to account.”

“This is exactly why we need full OIA coverage for all publicly funded bodies. If taxpayer money is involved, Kiwis deserve the right to know how it’s being spent.”

The New Zealand Taxpayers’ Union is calling for immediate legislative reform to bring all 75% taxpayer-funded organisations, including Whānau Ora commissioning agencies, under the Official Information Act (OIA), following a New Zealand Herald investigation into Pasifika Futures and potential conflicts of interest in the distribution of public funds.

Taxpayers’ Union spokesperson Tory Relf said:

“It’s completely unacceptable that taxpayer-funded bodies like Pasifika Futures can distribute millions of dollars with so little public oversight. The people writing the cheques are the same ones setting the rules and the public is locked out of the room.”

“When taxpayers’ money is handed out behind closed doors to organisations run by friends and family, the least we should expect is the right to ask: why, how, and who made the decision?”

“If you’re spending public money, you must be accountable to the public. That starts with full transparency through being subject to the Official Information Act.”

“If these agencies are confident in their processes, they should have nothing to fear from public scrutiny.”

“It is time for the Government to amend the Official Information Act to cover all organisations receiving substantial public funds and finally bring accountability to the wider public sector.”

The New Zealand Taxpayers’ Union is calling on all New Zealanders to “check their local lost and found” after the Environmental Defense Fund's taxpayer funded, $29 million dollar satellite had been deemed lost.

Taxpayers’ Union Communications Officer, Alex Emes, said:

“While it is true that the Government misplaces taxpayer money every minute, the fact that $29 million dollars of taxpayer money has just disappeared from the sky is a scary reality of the horrors New Zealand taxpayers face.

“The fact that the purpose of this project was to monitor carbon emissions is truly ironic. After this latest event, the EDF needs to ask themselves how many emissions they have created from putting a satellite in the sky only to have suddenly lost it.

“This proves it’s time for the Government to admit failure and stop funding space pet projects that are of no benefit to New Zealanders.”

The Taxpayers’ Union is today calling on the Government to privatise State‑Owned Enterprises (SOEs) following Treasury analysis revealing alarming disconnects between executive pay and corporate performance.

Taxpayers’ Union spokesperson Tory Relf said:

“Simeon Brown is right to call out underperforming SOEs, but strongly worded letters won’t fix a broken model. He needs to start selling them.”

“Landcorp’s profits have nearly halved, yet its CEO scored a $927,000 pay day. If that happened in the private sector, there’d be consequences, not $167,000 pay rise.”

“Taxpayers are funding gold-plated salaries for bottom-of-the-table results. It’s indefensible.”

“Even Treasury says partially privatised companies do better because private owners demand accountability. The answer isn’t tighter pay bands – it’s ownership reform.”

“If Minister Brown wants real results, he should stop subsidising failure and start selling these dud SOEs.”

The New Zealand Taxpayers’ Union can reveal, through an Official Information Act request, that the Transport Accident Investigation Commission (TAIC) has already spent $293,024 (exc. GST) investigating the grounding of the Aratere ferry.

The interim report alone cost $34,958 to prepare, including payments to external engineers, psychologists, and advisors. TAIC staff logged 534 hours just to the end of October 2024 with the final report not expected until 2026.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“This is turning into a fiscal shipwreck, with nearly $300,000 already gone and a rudderless aim to keep investigation costs below $450,000 before we even get a final report.”

“Rust-bucket Cook Strait ferries drifting into rocks doesn’t seem to happen in the private sector, and even if it does we’re not stuck with the tab. What will it take for the Government to admit bureaucrats shouldn’t be in charge of these boats.”

“With more and more money overboard keeping Interislander afloat, how long are kiwis expected to keep footing the bill? Minister Peters tinkering with part-privatisation isn’t enough - it’s time to sell the lot before the next disaster lands in taxpayers’ laps.”

The Taxpayers’ Union is calling out Tasman District Council for treating family pets like major infrastructure projects, after a local dog owner was slapped with a jaw-dropping $1,400 fee for a resource consent just to keep three dogs on his property.

“In Tasman, puppies now need planning permission,” says Taxpayers’ Union spokesperson, Tory Relf.

“Since when did the council decide dogs are a consenting activity? What’s next – building consent for a kennel? LIM reports on Labradors?”

"According to RNZ, the owner was shocked to learn that having more than two dogs on her lifestyle block required a process usually reserved for housing developments or sewage treatment plants."

“We love dogs, but this policy’s gone walkies. A council that thinks someone needs to file paperwork and fork out over a grand just to give a home to a pup needs to have its head checked, preferably by a vet.”

The Taxpayers’ Union is urging Tasman District Council to roll over on this ridiculous regulation.

The Taxpayers’ Union welcomes the Government’s openness to part-privatising the Interislander ferry service, but says it doesn’t go far enough to reduce the burden on taxpayers or help address New Zealand’s growing public debt.

Taxpayers’ Union spokesperson Tory Relf said:

“The Interislander project has become an expensive fiasco. Costs have ballooned, no ferries have been delivered, and taxpayers are left footing the bill. People are rightly asking: how much more will they be forced to pay before the Government seriously considers alternatives?”

“The whole project should be sold, to prevent another disaster like the scrapped iRex project. Private sector investment would not only inject much-needed capital but also impose commercial discipline. These are multi-billion-dollar decisions – they should be made by commercial operators who have skin in the game, not government officials.”

“With total Crown debt now exceeding $277 billion, New Zealand simply cannot afford to keep borrowing to fund every vanity project. Continuing to do so means higher interest payments, more pressure on public services, and higher taxes down the line.”

“Exploring private sector involvement is a welcome step, but it’s only a first step. To protect taxpayers and restore fiscal responsibility, the Government needs to go further, and fast.”

The New Zealand Taxpayers’ Union can reveal under Local Government Official Information and Meetings Act request that Invercargill City Council spent $7,334,394 on consultants and legal services in just three years.

The spending includes fees for everything from strategy consultants and cultural engagement advisers to legal firms and planning experts.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, says:

“Ratepayers are forking out over $7 million to consultants while basic council services remain under pressure. When you need a consultant to tell you how to build a playground or put up signage, something has gone very wrong.”

“This is exactly the sort of out-of-control spending that’s driving up rates and leaving residents worse off. Too often, councils hide this under the vague label of 'expert advice' but the rates bill ends up in the letterbox of every ratepayer.”

“Consultants don’t come cheap but Invercargill ratepayers shouldn’t be treated like an ATM every time council wants to outsource its thinking. The Council needs to be forced to focus on core services through rates capping now."

Commenting on this, Taxpayers’ Union Local Government Campaigns Manager Sam Warren said:

“There’s no doubt at all we need rates cap, but clearly we can’t afford to wait for another year of double-digit rates hikes.”

“Months and years of dysfunction have come to a crescendo. It’s a crushing decision while locals continue to suffer the heavy cost of poor decisions and planning by out-of-touch councillors.”

“$2.3 million on a light-up toilet block, hundreds of millions on cycleways and the not-so-Golden Mile, and a $563,000 bike rack outside the Mayor’s office have lead to rates soaring 47 percent in just three years.”

“There’s a good reason Tory Whanau received a ‘Lifetime Achievement in Waste’ Award at the annual Taxpayers’ Union Jonesie Awards earlier this year, and at this rate she’s on for a second one.”

“Wellington City Council cannot bring itself to prioritise ratepayers. It’s time to change the law now and force their hand.”

The New Zealand Taxpayers’ Union is calling on the Clifton Community Board today to reject a proposal to spend $113,850 ($99,000 plus GST) of ratepayer money on two “Welcome to Urenui” signs placed next to existing NZTA signage. This will be decided by the board during a vote at 4pm today.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, says:

"Ratepayers shouldn’t be spending more than $100,000 on signage that duplicates what’s already there. These signs are already in front of two existing NZTA town signs, meaning you get welcomed not once, not twice, but three times."

“Public money should be going into core council services, not vanity signage and arts funding disguised as relationship building.”

"Yet this time there’s still the chance for Clifton's locally elected members to do the right thing and vote no."

"There’s still time for Cliftons locally elected members to do the right thing for ratepayers; vote no to $113,850 vanity arts projects and yes to common sense.”

The Taxpayers’ Union is calling on the Government to urgently raise the age of superannuation eligibility in light of a newly released Treasury briefing warning of deep cuts to core services like health and education unless major spending reforms are undertaken.

Taxpayers’ Union spokesperson Tory Relf said:

“Kicking the can down the road is not an option. Treasury’s warning is clear – unless we make tough but fair decisions now, future generations will be stuck with worse public services, higher taxes, and an economy strangled by debt.”

"Government expenditure outside superannuation and health is already excessive.  Stronger fiscal consolidation is needed immediately.  Minister Willis’ target of core Crown expenditure not exceeding thirty percent of GDP not only looks unachievable under current policies, it is insufficient."

“The Taxpayers’ Union is urging the Government to begin incrementally lifting the eligibility age to 67 over the coming decade, in line with moves already adopted by comparable nations such as Australia, the UK, and the USA.”

“Raising the super age is one of the most obvious and responsible steps we can take. We are living longer, healthier lives, yet we continue to pay billions more each year in superannuation without any adjustment. It’s unaffordable.”

“It’s time for political courage and long-term thinking. The sooner we act, the fairer and smoother the transition will be. Pretending there isn’t a problem only makes the eventual fix more painful.”

The Taxpayers’ Union has acknowledge the passing of Te Pāti Māori MP Takutai Moana Natasha Kemp and offer condolences to those close to her.

Jordan Williams, Executive Director of the New Zealand Taxpayers’ Union, said:

“We extend our sincere condolences to the family, friends, and colleagues of Takutai Moana Natasha Kemp. Her passing is a huge loss to all those who knew and worked alongside her.”

"Ms Kemp's family will be in our thoughts."

The New Zealand Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that Tauranga City Council has spent a total of $67,739 on decorative artwork for a single bus stop with $50,000 or 73.8 percent of the cost on design alone.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley, said:

“This is another case of councils treating ratepayers like an open chequebook. Nearly $70,000 on a single piece of bus stop art is absurd.”

“You could buy a new car for what they spent on artwork at a bus stop. Worse still, most of it went on ‘design’ not materials, not installation, but presumably someone sketching it out at a desk.”

"All this comes the same week the Council also celebrated the opening of its brand-new $45 million headquarters, as residents brace for a 9.9 percent rates rise."  

“The pattern is clear: the culture of waste will continue until councils are forced to live within their means. We need Rates Capping Now!"

The Taxpayers' Union can reveal that Te Wharekura o Tauranga Moana is set to take staff to Tahiti this Friday and refuses to answer basic questions to justify the spend.

Taxpayers' Union Executive Director Jordan Williams said:

"Earlier this week we received a tip off that Te Wharekura o Tauranga Moana is taking all its staff to Tahiti for a 'team building' and 'leadership' trip. The school has refused to engage with us, return calls, or answer questions. In fact, since our reaching out yesterday morning the school's phone has literally been off the hook."

“No wonder the Principal is hiding. This is taxpayer-funded tourism, not education.”

"Any justification that this is about team building is a fraud. This school is already a very tight knit community. In fact, it appears many of the teaching staff are actually in the same whanau."

"There is absolutely no excuse for using taxpayer money on an overseas island holiday for school staff.  School operational funds are meant for teaching kids and this is precisely the sort of spending the Auditor General has previously called out as unacceptable."

"There may be some justification for overseas professional development for principals, but that can't possibly extend to all school staff. This looks to be a rort and the fact the school literally won't pick up the phone now they know we are on to them is an 'up yours' to both taxpayers and Tamariki."

"Given the trip isn't for a few days, we call on the Minister of Education to intervene and pull the plug. Every dollar spent on these trips is a dollar not going to classrooms. If the Minister won’t act now, she’s endorsing waste.”

The Taxpayers’ Union is calling on the Government to scrap its $170 million EV charger programme, after revelations that no chargers have been installed and the expected environmental benefits are minuscule.

Taxpayers’ Union spokesperson Tory Relf, said:

“The Government has allocated $170 million for EV chargers and has absolutely nothing to show for it. A year on, not a single charger has been installed. This is a masterclass in waste.”

“Even if it were delivered tomorrow the emissions savings don't even meet the Government’s own threshold for significance, not to mention that under the Emissions Trading Scheme this programme won’t reduce New Zealand’s net emissions by even a gram.”

“There is a fundamental misunderstanding of the ETS by the government. Because of the ETS, any reduction in transport emissions here simply frees up carbon credits for other emitters to emit more. So even if the scheme removed transport emissions entirely, it would still be a waste of money as net emissions would be identical.”

“In other words, the EV chargers are an expensive token gesture. Kiwis can’t afford to throw good money after bad, especially in a cost-of-living crisis.”

“When money is tight, every dollar needs to go towards things that actually make a difference. This programme clearly doesn’t.”

“The Government should cut its losses and scrap the EV charger scheme immediately.”

A Local Government Official Information Act request made by the New Zealand Taxpayers’ Union shows a new toilet block is budgeted to cost ratepayers $2.3 million, which includes costs for a light-up exterior and archaeological work.

Taxpayers’ Union Local Government Campaigns Manager Sam Warren said:

“How reckless can Wellington Council be? It's unjustifiable to throw this kind of money around, including for archaeological costs, while a record number of locals are being rated out of their own homes.”

"This build-at-all-costs approach needs to stop. On top of last year’s 16.9 percent rates increase and this year’s proposed 12.2 percent increase, we’re looking at a cumulative 31 increase to average rates in just two years.”

“It’s not hard to see why rates are soaring; Council has clearly lost focus. Toilet blocks don’t need a social license, nor a dig find—they need to be delivered well and affordably.”

“Until rates capping laws are introduced, councils across New Zealand will continue to flush this kind of money away. Not enough pressure exists to keep councils on-task and focused, providing only the basics well.”

The Taxpayers’ Union is urging the Government to fast-track legislation to cap council rate hikes, following new figures from Stats NZ showing runaway local government spendingand the risk of even higher rates next year if action isn’t taken now.

Sam Warren, Local Government Campaigns Manager, said:

“Council spending is out of control and ratepayers are picking up the bill. This new data shows exactly why we need a rates cap now, not later.”

"Total council spending rose 7.6 percent to $18.41 billion compared to March 2024, yet employee costs have jumped 9.9 percent and interest payments soared 16.3 percent. It’s clear councils aren’t exercising financial discipline."

“More than 25,000 Kiwis have backed our petition to cap rates to inflation. The public gets it – and the Government is starting to as well.”

“The PM backed a rates cap on Newstalk ZB this morning, but the current timeline delays legislation until at least 2026, meaning councils can raise rates unchecked for another full year."

"Let's remember, the previous Local Government Minister, Simeon Brown, resolved to pass rates capping into legislation this year."

“Any later is too late. Councils are locking in bloated budgets right now. If we wait, ratepayers will keep getting hammered and blame will lie at the feet of councils and the Government.”

"The Government must act to Cap Rates Now and stop the spiral.”

The Taxpayers’ Union is welcoming the Prime Minister’s intervention to rule out the Inland Revenue Department’s proposal to apply Fringe Benefit Tax (FBT) to all utes worth $80,000 or more and other work vehicles — a plan directed by Climate Change and Revenue Minister Simon Watts.

In response to media comment issued by the Prime Minister's Office last night, Taxpayers’ Union Executive Director Jordan Williams said:

“Simon Watts was pushing a new Ute Tax, without his Cabinet colleagues or the public even knowing. Had it gone ahead, farmers and tradies would have been slammed with thousands of dollars in additional tax each year – not just once like Labour’s Ute Tax, but every year.”

“The documents are crystal clear. IRD was instructed by Minister Watts to proceed with and consult with the tax industry on the implementation of a new FBT regime that would capture work vehicles, regardless of how they’re actually used. This was a massive tax hike by stealth.”

"As far as we can tell, the Revenue Minister didn't consult with any taxpayer, business, or farming groups, despite work having been done on this for nearly a year. Had he bothered to engage, the unfairness and political risk would have been obvious. That lapse saw the Government facing backlash because it was tax boffins who blew the whistle and it took everyone by surprise. Minister Watts should learn the lesson."

“Within hours of our campaign launch yesterday, the National Party was in damage control. Within six hours, the PM’s team overruled Watts and confirmed the policy would not proceed.”

The Taxpayers’ Union yesterday revealed documents showing that IRD had been working on changes to remove the logbook exemption for work vehicles and impose FBT on the assumed private use of double cab utes. According to IRD’s own estimates, the tax grab would have cost farmers, tradies and other ute owners $100 million per year.

“We give credit to the Prime Minister and his office for stepping in quickly and pulling the handbreak.” says Mr Williams.

“This is a clear win for taxpayers and proof that grassroots pressure works. We thank the thousands of Kiwis who used our online tool to email National MPs and demand the Ute Tax 2.0 be scrapped."

ENDS

The New Zealand Taxpayers’ Union is calling on the National Party's leadership to rule out Simon Watts' proposed changes to the Fringe Benefit Tax (FBT) regime that amount to a new, harsher version of Labour’s infamous “Ute Tax”.

Taxpayers’ Union Executive Director Jordan Williams says, “National campaigned against Labour’s Ute Tax. More than 38,000 ute owners signed our petition to scrap it. Now, astonishingly, the National Party’s own Climate Change Minister has been caught out instructing IRD officials to bring in a ute tax of his own — and it’s even worse than Labour's.”

According to Inland Revenue Ministerial briefing documents obtained by the Taxpayers' Union, Minister Simon Watts has instructed officials to develop new FBT rules that would result in ute-owning farmers and tradies being taxed annually — not just once, as under Labour’s version.

“Labour’s Ute Tax maxed out at a one-off $5,175 when buying a new ute. Simon Watts’ proposal would see some work vehicle owners stung with more than $8,000 in tax every single year,” says Williams.

“Under current rules, if a ute is used almost entirely for work, a logbook can be kept to ensure FBT doesn’t apply. But Minister Watts wants to abolish that option and instead slap a flat tax on every work vehicle worth $80,000 or more — even if it barely leaves the farm.”

Williams continued, “Let’s be clear: this is not about fairness or simplification. This is a calculated, $100 million-a-year tax grab that targets the very people who keep our economy running — farmers, tradies, and rural New Zealanders. It’s Labour’s Ute Tax, but this time it’s blue.”

“National MPs were just at Fieldays bragging about scrapping Labour’s Ute Tax. Either they’re being sneaky or they have no idea what their own Minister is doing behind the scenes. If this change proceeds, we will not be pulling punches in calling out the betrayal.”

“The National Party must rule out this outrageous tax on work vehicles. New Zealanders didn’t vote for this. It's essential the National Party leadership overrules the Climate Change Minister.”

The Taxpayers’ Union is welcoming Local Government Minister Simon Watts’ commitment to rates capping made last night in Wellington but is urging him to expedite the policy. The Union warns that continued delays will undermine public confidence and emboldening opponents of reform such as Local Government New Zealand (LGNZ).

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

“More than 25,000 New Zealanders have already signed the Taxpayers’ Union’s Cap Rates Now petition. It’s time for Watts to listen – now, not later.”

“Only opening for consultation at the end of this year is simply not good enough. Polling shows that Kiwis are losing trust in National to tackle the cost-of-living crisis and with this slow response, we can see why. A primary driver of the cost of living is out of control rates, which have increased on average by more than a third since 2022.”

“The timeframe announced by Watts also means that voters are going into the local elections in October blind to what rates could or could not be, undermining local democracy. LGNZ know this, which is why they have been throwing sand in the gears to try and delay the policy.”

“Minister Watts is complicating what should be a straightforward fix. The policy work can and should be done within months, not dragged out to suit the bureaucrats and lobby groups like LGNZ who benefit from the status quo.”

The Taxpayers’ Union is slamming IRD and Statistics NZ after the Government announced it’s scrapping the Census and replacing it with a mass data-harvest from across government departments without public consent.

IRD will share sensitive personal data like income and benefit details that must be linkable back to individual taxpayers to be usable by Statistics NZ.

Taxpayers’ Union spokesman James Ross said:

“Big Brother is back with IRD’s latest taxpayer data lolly-scramble. There’s zero excuse for leaking sensitive income and benefit data, and covering for Stats NZ’s Census failure last time around doesn’t come close to justifying it.”

“After previously leaking more than 250,000 taxpayers’ unencrypted details to foreign tech giants, Revenue Minister Simon Watts is back for round two. This time, it’s every taxpayer’s identifiable data on the line.”

“Taxpayers aren’t being asked, and they haven’t consented. Just like with IRD’s custom audiences scandal, there are huge ethical concerns being swept under the rug in the hope no one notices. Not to mention possible legal breaches of the Tax Administration Act.”

“Minister Watts’ silence while his department repeatedly throws Kiwis under the bus speaks volumes. His job is to represent taxpayers, not sell them out to make life easier for bureaucrats.”

The Taxpayers’ Union is calling for the plan to be scrapped.

“Today’s Statistics NZ release of GDP growth of 0.8% for the first quarter of 2025 is welcome,” says Taxpayers’ Union spokesperson Tory Relf.

“However, recent domestic economic indicators are showing a marked slowdown in the economy, with the BNZ describing the economy as ‘hitting a Q2 brick wall.’ Concerns about rising inflation are growing, which may slow the pace of further easing of monetary conditions.”

“The Government cannot rely on the Reserve Bank to reduce the official cash rate at a pace that will further stimulate the economy. The Government must change its fiscal stance by reducing expenditure. Whilst reprioritising expenditure may provide value, it is difficult to understand how further subsidies for movie moguls is a good use of scarce taxpayers’ funds. The Government must look harder at the programmes it is funding and delete those that provide little value.”

"Budget 2024 was a missed opportunity for growth; Budget 2025 looks wholly irresponsible."

Damning results from Wellington's annual survey has been released show major declines in trust and confidence in how the City is being run.

“Alarm bells should be ringing. What has long been suspected has now been confirmed: Wellington residents have lost faith in Council.” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“Concerns have been raised over Council spending and lack of priorities. And, off the back of successive rate hikes, not one councillor can act surprised by the results. A rethink is desperately needed on how the City is being managed.”

“Delays and secrecy surrounding the survey’s full release also needs to be scrutinised. Councillors should have had access to this months ago, which would have better guided the City's Long-Term Plan.”

“Wellington doesn’t trust its own Council, and why should they? The last year alone has been a basket case of chaos and fingers-in-ears, as unpopular policies are rammed through extraordinary cost to ratepayers."

“Wellington is fast-becoming unliveable. It's a prime example of why rates capping is needed, so as to make the city more affordable, and keep Council focused on the basics.”

The New Zealand Taxpayers' Union is welcoming Federated Farmers’ call for voters to back candidates this October who commit to capping rates hikes at inflation.

Taxpayers’ Union spokesman James Ross said:

“Rates bills went up 15 percent on average last year. Farmers just like everyone else are being fleeced by a local government sector more focused on vanity projects and bureaucratic bloat than getting the basics right.”

“The pressure is building. More than 15,000 Kiwis have already signed the Taxpayers' Union's petition to cap rates at inflation, and now Federated Farmers have joined the call.”

“Ratepayers are saying no to year after year of double-digit rates hikes. Minister Watts needs to act, put a lid on rates bills, and knock some common sense back into local government."

The Taxpayers’ Union’s Cap Rates Now petition is available at CapRatesNow.nz

The Taxpayers’ Union is slamming the Green Party’s so-called “Fiscal Strategy 2025” as reckless and would saddle New Zealanders with crippling debt, soaring taxes, and zero accountability.

Taxpayers’ Union spokesman James Ross says:

“This isn’t a fiscal strategy, it’s an economic suicide note. The Greens are proposing to throw out decades of responsible financial management in favour of fantasy experiments based on unlimited borrowing and spending.’”

"The Greens propose blowing out debt to 90% of GDP - more than double current limits and gutting the Public Finance Act and the fiscal responsibility rules that protected New Zealand during crises."

"Under the Green Party's plan, there's no limit to how much taxpayers would be expected to cough up."

"Kiwi households live within their means. The idea that Government can ignore debt and call every spending spree an ‘investment’ is delusional."

“This is North Korean economics wrapped in greenwashing. We don’t need more bureaucracy, we need restraint and respect for taxpayers’ money.”

"Government and opposition parties must reject the Greens’ proposal outright and reaffirm their commitment to prudent fiscal management and debt discipline."

The Taxpayers’ Union is celebrating a major win for taxpayers following Minister Chris Bishop’s decision to allow councils to de-list heritage buildings faster, including for Wellington’s derelict Gordon Wilson Flats.

Taxpayers’ Union spokesperson Tory Relf, said:

“We’ve long said that heritage rules are being abused by bureaucrats and activists to block development and dump costs on the public.”

“Minister Bishop’s decision shows he's listening to the concerns of taxpayers and ratepayers, not just NIMBIES and heritage lobbyists."

“Wellington and the rest of the country desperately needs more homes, not decaying concrete monuments.”

“This is real leadership that puts taxpayers ahead of ideology. We applaud Minister Bishop for cutting the red tape.”

The Taxpayers’ Union has revealed through an Official Information Act request that the Department of Conservation (DOC) has spent $411,875 on the endangered southern Powelliphanta augusta snails.

Following the collapse of Solid Energy, DOC took over responsibility for the captive snails, with additional habitat restoration projects now costing more than $1 million.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“These snails have been in captivity since 2006. DOC has killed over 800 by accident, yet they’re still planning to spend millions and another five years till they'll all be fully released.”

“There have been multiple proposals for this programme, but instead DOC has bred over 4,000 snails in fridges in Hokitika and is now figuring out how to slow the breeding down as facilities hit capacity.”

“Taxpayers aren’t opposed to conservation, but the lack of substance in this scheme shows the ridiculousness of the system. It drains DOC funding away from other species, is unaccountable, and refuses to acknowledge success.”

“This is conservation at its most expensive and least effective. It's time to take the snails out of the fridge and make the hard decisions on protecting our native species.”

The Taxpayers’ Union can reveal through an Official Information Act response that the Ministry of Business, Innovation and Employment (MBIE) has lost or had stolen 280 taxpayer-funded iPhones and iPads over the last three financial years.

With 258 missing iPhones and 22 iPads, that is almost two devices going missing every single week. Based on MBIE’s estimates, the average replacement cost per device is $490, putting the bill at $137,200.

Taxpayers’ Union Investigations Coordinator, Rhys Hurley said:

“You’d think the Ministry in charge of economic development might have a handle on keeping track of its own gear. Two lost iPhones a week is either shockingly poor management or a sign of a department that simply doesn’t care that taxpayers are footing the bill.”

“Worse still, these figures dont include lost laptops. They are the most expensive devices, so this $137,000 is just the tip of the growing iceberg.”

“These government agencies need stricter internal accountability for missing equipment, full transparency on the real cost of lost laptops, and clearer consequences for departments that treat public property like it's disposable.”

“While households across the country are cutting back, MBIE is running a revolving door for lost iPhones. Taxpayers deserve better.”

The Taxpayers’ Union is backing Prime Minister Christopher Luxon’s comments on reining in pandemic-era sick leave rules.

Taxpayers’ Union spokesperson Tory Relf says: “The current system is fundamentally unfair, costly, and out of touch with economic reality - especially for the taxpayers footing the bill.”

“Sick leave entitlements disproportionately favour part-time workers, some of whom can claim the same leave as full-timers despite working a fraction of the hours. That’s simply not fair, particularly when those jobs are taxpayer-funded.”

“New Zealand’s already dire productivity is being hammered by skyrocketing absenteeism at huge public cost.”

Nationally, absences jumped from 7.3 million in 2022 to 10 million in 2023. In the public service alone, the average number of sick/domestic leave days rose more than 26 percentsince the introduction of the amended legislation, adding up to 648,347 lost workdays last year - all paid for by the taxpayer.

“And now, according to Southern Cross, staff are increasingly treating paid sick leave as a no-questions-asked entitlement, even when they’re not genuinely unwell,” Relf says.

“New Zealand is already near the bottom of the OECD for productivity. We can’t fix that if we’re asking taxpayers to pay more and get less.”

“Luxon’s idea would be a much-needed reset. Fairer rules, fewer lost days, and better value for event cent of taxpayers' money being spent.”

The Taxpayers’ Union has welcomed ACT’s announcement that its local candidates will oppose council-level emissions policies, calling it a needed step to rein in wasteful spending and refocus councils on core services. 

Taxpayers’ Union spokesman James Ross said:

“Under the Emissions Trading Scheme, emissions are already capped nationally. Local climate plans don’t cut a single gram of net emissions - they just burn through ratepayers’ money for no environmental gain.”

“Rates were hiked 15 percent on average last year. The last thing cash-strapped ratepayers need is councils wasting money on ineffective, virtue-signalling red tape and climate strategies.”

“Councils should stick to their knitting and focus on delivering what they can actually control: roads, pipes and rubbish. If they won’t get back to basics, then ratepayers are right to go one step further and demand tools like rates capping to force them to.”

Links to all previous Taxpayers' Union-Curia polls, including monthly and issue polls, can be found here

Bad news for National in the latest Taxpayers' Union-Curia Poll as Labour would now be the largest party in Parliament, gaining three seats to 44. The Coalition would still just about cling on to power on these numbers.

The poll, conducted between 07 and 09 June shows National drop 1.1 points on last month to 33.5 percent, while Labour are up 1.6 points to 34.8 percent.

ACT is down 0.4 points to 9.1 percent, whilst the Greens are down 0.9 points to 8.2 percent. New Zealand First also drops 1.3 points to 6.1 percent, while Te Pāti Māori is down 0.6 points to 3.3 percent. 

Headline results and more information about the methodology can be found on the Taxpayers' Union's website at www.taxpayers.org.nz/2025ju_polldatanztu

For the minor parties, TOP is on 1.8 percent (+1.3 point), Outdoors and Freedom is on 1.1 percent (+0.7 points), New Conservatives are on 0.7 percent (+0.7 points) and Vision NZ on 0.6 percent (+0.2 points).

This month's results are compared to the last Taxpayers' Union-Curia Poll conducted in May 2025, available here at www.taxpayers.org.nz/polling_may07_2025tucur 

The combined projected seats for the Centre-Right of 62 is down 1 seat from last month. The combined seats for the Centre-Left is up 2 seats to 60. On these numbers, the Centre-Right bloc could still form a Government.

National remains on 42 seats again this month, whilst Labour is up 3 seats to 44. ACT is unchanged on 12 seats, whilst the Greens are down 1 seat to 10. New Zealand First drops 1 seat to 8 seats, while Te Pāti Māori remains on 6. 

For the first time since October 2024, Cost of Living has been replaced as voters' top issue.

The Economy more generally is the most important issue to voters at 20.2 percent (+3.7 points), followed by the Cost of Living at 18.1 percent (-8.3 points), Health at 11.9 percent (-5.0 points) and Employment at 5.8 percent.

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

"Labour taking the lead and growing concern over the economy should be a worrying sign for the Government in the first Taxpayers' Union-Curia poll since the Budget. Voters are losing faith in the managed decline on offer."

"With inflation finally under heel, cost of living has slipped off the top spot for the first time in over three years. But lower interest rates don't make a sound economy on their own."

"The so-called Growth Budget's only pro-growth policy offered a 1 percent boost to GDP over 20 years, spiralling debt and no credible pathway back to surplus."

"Growth wins votes, stagnation doesn't."

The latest Public Service Commission workforce data shows an uptick in public service employees since December 2024. As of 31 March 2025, there were 63,238 full-time equivalent (FTE) staff in the public service, reflecting a 0.4% increase from December 2024 and 15,987 more staff than the 47,251 reported in 2017.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“Today’s growth figures are alarming. This uptick in bureaucrats doesn’t mean better services, just more taxpayer money on an already bloated sector.”

“Time and time again, we’ve seen public service delivery getting worse, while unions cry foul at the thought of trimming backroom staff.”

“Bureaucratic bloat already saw a nearly 40% growth over the six years of the previous Labour government. Even with a slight decrease from the peak of 65,699 in December 2023, these numbers represent just a drop in the ocean.”

“Minister Willis cannot allow backroom staff numbers to continue rising when true efficiency hasn’t been achieved. It’s time for the Government to deliver on its promise of cutting wasteful spending by optimising the public service.”

It’s seven years since Sir Bill English left politics but the former Prime Minister and long serving Finance Minister is still a keen follower of the political landscape and how the economic outlook for the country can be improved.

In conversation with Peter Williams for the latest Taxpayer Talk podcast, Sir Bill maintains that the political battle over National Superannuation has been won and governments will have to pay a universal pension  to every senior citizen for the foreseeable future. But as he did when in government, Sir Bill believes that the age of eligibility must be raised from 65. He also has some harsh words on the performance of public servants and notes that many government organisations should be much better managed.

A politician for nearly 30 years, Sir Bill now has the luxury of watching government from the sidelines and much of what he sees really frustrates him.

The Taxpayers’ Union is calling out Adrian Orr’s resignation as nothing more than a sulk over funding disagreements, despite a significant increase in funding over and above the previous five-year agreement.

Taxpayers’ Union spokesman James Ross said:

“Orr resigned because he didn’t quite get all of the massive funding increase he was pushing for, but how much bloat would be enough? Even a small amount of financial self-control was too much to handle for the Governor.”

“The Reserve Bank’s funding agreement was still 21% higher than the last five-year deal, and 139% higher than the one before that. With staff numbers blowing out by 2.5x since 2018, is anyone surprised RBNZ always seems to be running out of taxpayers’ cash?”

“If the Governor - or any other departmental head - can’t control costs, they need to resign. Hopefully the next Reserve Bank Governor can show more respect for taxpayers.”

The Taxpayers’ Union is challenging Nicola Willis to stick to her promise and rein in the public sector wage bill after Public Sector Commission figures reveal that public sector workers were almost twice as likely to receive a salary increase as those in the private sector in the first quarter of 2025.

"Nicola Willis promised to get the public sector wage bill under control, but the data shows that she has failed to do so," said Taxpayers’ Union spokesperson Tory Relf.

“In just three months, 20 percent of public sector workers received a pay rise, compared to only 11 percent in the private sector. Why do bureaucrats keep getting pay hikes when taxpayers aren’t seeing the same?”

“With the average bureaucrat’s salary now topping $101,000 and continuing to climb, the trend is clear: public sector spending remains out of control.”

"Willis’ promise to curb public sector wage inflation is looking more like a broken vow. With one in five public sector workers getting a pay rise in just the last quarter, it’s clear this government is not taking control of spending."

"New Zealanders deserve a government that keeps its promises and manages taxpayers’ money responsibly. It's time for Nicola Willis to take action, slash the bureaucratic wage bill, and stop making empty promises."

We are officially launching our "Cap Rates Now!" campaign, to rein in New Zealand's out-of-control councils.

We're using this week's National Fieldays to call on Local Government Minister Simon Watts to introduce Australian and UK-style rates caps to limit annual rate increases to inflation.

We're demanding a rates cap - now! We need your support – sign the petition ✍️

Across the country, the story is the same: double-digit rate hikes, councils are driving up the costs of living.

Meanwhile, ballooning staff numbers and vanity project spending see councils delivering fewer core services.

Local Government New Zealand (the lobbyists for council bureaucrats) are in Simon Watts' ear. They want to keep councils unrestrained.

I need you to take 20 seconds today to sign the petition.

With Auckland’s new property values out yesterday, many homeowners are about to be slapped with massive rate hikes. Napier ratepayers are facing a hike of 20 percent, along with Gore, Upper Hutt, Hastings... The list goes on and on. 

It’s time to put a lid on it: Cap Rates Now!

Rates cap legislation would limit annual rates increases to inflation – unless a council can get approval from local ratepayers through a local referendum.

💥 Since 2022, average council rates have gone up 34% in New Zealand, compared to 14% in the UK and just 8% in Australia.

💥 A majority of Kiwis want the choice – polling shows that nearly two-thirds support referenda for big rate hikes.

💥 Meanwhile, council spending keeps ballooning – but not on core infrastructure. Our research shows that the money is going on bloated bureaucracies (staff costs) and non-core (i.e. vanity) projects.

If you agree, enough is enough, sign the Rates Cap Now petition at RatesCapNow.nz

Under our proposal, councils can still fund important projects – they’ll just have to justify the cost and get community backing. It’s about accountability, transparency, and putting ratepayers first.

The campaign is about protecting households, restoring trust in local government, and stopping councils from treating ratepayers like bottomless wallets.

If councils really need to spend more, they can just ask. That’s democracy.

But without a cap, nothing will change. The bills will keep piling up.

So let's build up the pressure . Let’s Cap Rates Now!

The Taxpayers' Union is launching a new nationwide campaign calling for Local Government Minister Simon Watts to 'Cap Rates Now' and adopt CPI-level limitations on councils hiking rates. The launch of the Cap Rates Now campaign coincides with the opening of National Fieldays and the release of Auckland Council's new property valuations.

We're calling on ratepayers across New Zealand to join us in asking Mr Watts to Cap Rates Now by signing the petition at CapRatesNow.nz.

"Council rates are out of control. Until they are capped, councils have little incentive to focus on core services and providing good quality infrastructure," said Taxpayers' Union Local Government Campaign Manager Sam Warren.

A March 2024 Taxpayers' Union-Curia poll found that nearly two-thirds of New Zealanders supported referendums for rates increases beyond inflation. and less than one quarter opposed. There was majority support for referendums in all gender and age groups.

"For years, skyrocketing rates have been a major driver of inflation and the cost of living crisis. Rates have increased 34 percent in New Zealand since 2022, compared to only 14 percent in the UK and 8 percent in Australia. Enough is enough."

"Rates caps are common in Australia and the United Kingdom, and last year even Prime Minister Luxon appeared to be fan," said Warren.

"Behind the scenes, we know that council officials, and their lobby group, LGNZ, have been trying to strong arm Simon Watts and lobby against this common-sense policy. Local Mayors try to claim local government is underfunded, but when you look at the numbers, the dramatic increases in rates revenue have been wasted on nice-to-haves and staff costs, rather than core capital infrastructure investment," said Warren.

"That's why we're calling on ratepayers to join us in our call to Cap Rates Now."

"In special circumstances with a good reason to increase rates over-and-above inflation, councils should seek the public mandate via referenda. That is the sensible compromise for LGNZ, who have been spending ratepayer money to lobby against rates capping."

The Taxpayers’ Union is slamming the NZTA for the third missed launch target in nine months for their “Motu Move” National Ticketing System.

Taxpayers’ Union Communications Officer, Alex Emes, said:

“If taxpayers’ are on the hook for an unneeded program to the tune of $650 per household, the least they expect is for the program to be launched on time.”

“All around the world, you can pay public transport fare with contactless debit and credit cards. Creating a National Ticketing system is just another useless political vanity project.”

“If the government really wanted to make things easier, it should move towards the simpler and more cost-efficient option of having transport providers offer a contactless option.”

“Everyone knows: three strikes and you’re out. NZTA’s time with their National Ticketing System vanity project is up. The government needs to can this disastrous program before it ends up inevitably costing taxpayers more.”

 

In order to protect local business, commercial rates must be cut, the Taxpayers’ Union says in response to new reports that Wellington businesses are being hit with rates nearly twice as high as other cities.

“Wellington’s rating system is anti-growth, anti-business, and out of step with the rest of the country,” says spokesperson Tory Relf. “A small business here pays almost double what Aucklanders do. It’s a disgrace. ”

“The Council charges businesses nearly four times the rate of residents. This extraordinary differential is a deliberate attempt to mask how high the overall rates burden has become in order to cover wasteful Council spending.”

“This isn’t fairness, it’s daylight robbery. Other cities support business while Wellington bleeds it dry and the result is empty shops, lost jobs, and a dying city centre.”

Officials advised lowering the rate differential last year yet Councillors refused.

“Even their own staff warned them. But they doubled down on failure,” Relf said.

“Anyone who walks around the city centre can see the effect this is having. If the Council wants to revive Wellington, it must stop treating businesses like the enemy. Cut the rates now, before it’s too late.”

 

The New Zealand Taxpayers’ Union has today updated its online Debt Clock to reflect Total Crown Borrowings, replacing the previously used measure of Net Core Crown Debt.

The change comes after concerns that Net Core Crown Debt understates the true burden of government borrowing by excluding the ballooning liabilities of Crown entities and State-Owned Enterprises (SOEs).

Tory Relf, a spokeswoman for the Taxpayers’ Union, says:

“The Debt Clock needs to tell taxpayers the truth. The Net Core Crown Debt figure the Government likes to use conveniently leaves out tens of billions borrowed by Kāinga Ora, KiwiRail, and other Crown agencies. But whether it's borrowed by a Minister or one of their appointees to a Board, the taxpayer is still ultimately responsible.”

“Total Crown Borrowings is the most honest, transparent number. It reflects the full mortgage on the country – and the interest taxpayers are actually paying.”

According to Budget 2025 forecasts, Total Crown Borrowings are set to rise from $250.9 billion this year to $354.2 billion by 2029 – a blowout of more than $100 billion, or $49,160 per household.

“This Government has promised restraint but is still on track to add nearly $50,000 of debt for every household in the country over just five years. That’s not fiscal responsibility – it’s economic vandalism,” says Relf.

The Union says the updated Debt Clock – now updated with the figures released with last week’s Budget – gives taxpayers a more accurate understanding of New Zealand’s worsening fiscal position, and the real cost of government overspending.

“Politicians can play games with accounting tricks. But our Debt Clock won’t.” says Relf. 

“Tick tock.”

The updated clock is now live at www.DebtClock.nz.

A review of the pros and cons of using Net Core Crown Debt (the old measure): Core Crown Borrowings (a cleaner gross measure); and Total Crown Borrowings (the new measure) is available at www.taxpayers.org.nz/debt_clock_update_2025

Since its launch, the New Zealand Debt Clock has highlighted the burden of government debt in real time. We’ve always aimed to present this figure in a way that's meaningful, honest, and easy for taxpayers to understand.

In recent years, we’ve used Net Core Crown Debt – a figure often referenced in government fiscal targets. But we’re making a change. From today, the Debt Clock will display Total Crown Borrowings. We’ve just updated it to reflect the Treasury’s latest Econmic and Fiscal Update published with the Budget last week.

Why the Change?

There’s no single perfect measure of government debt. Like with any financial statement, different figures tell different parts of the story. But our job is to make sure taxpayers know the full picture – and Net Core Crown Debt has too many blind spots.

Let’s break down the options:

1. Net Core Crown Debt (the old measure)

Pros:

• Used in official Government fiscal targets.
• Gives a picture of the Government’s “net” position after liquid financial assets (like investments) are offset.

Cons:

• Opaque and prone to manipulation – depends on how the Government chooses to count "liquid assets".
• Doesn’t reflect the actual amount of money borrowed – or what interest taxpayers are paying.

• Excludes major government debt from Crown entities and SOEs like Kāinga Ora and KiwiRail — even though these debts are taxpayer-backed and directed by Ministers.

• Misleadingly low – paints a rosier picture than reality.

2. Core Crown Borrowings (a cleaner gross measure)

Pros:

• Represents the actual amount the core Government has borrowed.
• Ties directly to interest expenses – gives a more realistic picture of fiscal stress.
• Easier to compare to household debt (i.e., people don’t talk about their “net mortgage” – they talk about what they owe).

Cons:

• Still ignores massive Crown Entity and SOE borrowings (e.g. Kainga Ora, KiwiRail etc).
• Doesn’t reflect the full taxpayer liability across government.

3. Total Crown Borrowings (the new measure)

Pros:

• The most comprehensive measure of government debt – includes Crown entities, SOEs, and the lot.
• Can’t be gamed or disguised behind balance sheet footnotes.
• Reflects what taxpayers are ultimately on the hook for – whether debt is incurred by Ministers or their appointees to SOE boards.
• Aligns with international best practice for transparency.

Cons:

• Ministers have less direct day-to-day control over Crown entities and SOEs.

Why It Matters

Treasury’s Budget 2025 papers forecast Total Borrowings to rise from $250.9 billion in 2024 to $354.2 billion by 2029 – an increase of more than $100 billion – or $49,160 per household! – in just five years.

That’s real money, incurring real interest, to be paid by real taxpayers.

The bottom line is this: you can’t hide from interest payments. Whether it’s the core Crown or Kainga Ora borrowing the money, it’s the New Zealand taxpayer left footing the bill. And our Debt Clock should reflect that.

Conclusion

We’re switching to Total Borrowings because it gives the clearest, most honest picture of the Government’s debt. It includes everything – the full mortgage on the country.

We want a number that can’t be gamed. A number that is anchored in reality – tied to actual interest payments. And a number that reflects the total risk to taxpayers.

Politicians may try to hide behind accounting tricks. But our Debt Clock won’t.

Tick Tock, Tock Tock…

The Taxpayers’ Union is slamming the Department of Internal Affairs for wasting nearly $23 million of taxpayer money on a failed IT upgrade for the Births, Deaths and Marriages registry — a project that’s now been abandoned with nothing to show for it.

“Time and again, government departments dive headfirst into flashy IT projects, only to blow the budget, miss deadlines, and quietly pull the plug, with taxpayers left holding the bill,” said Taxpayers’ Union spokesperson Tory Relf.

“This isn’t just general bureaucratic waste, it’s a chronic failure in how the public service delivers IT,” Relf said. “Whether it’s Internal Affairs now or MFAT’s $33 million cloud project last year, the story is always the same: massive overspending, scope creep, no accountability, and zero results.”

"IT projects have become some of the worst offenders in the public sector when it comes to fiscal irresponsibility. Yet officials keep launching these bloated projects without the capability to manage them and taxpayers are forced to pick up the tab,” said Relf.

“Every time a department fails like this, they get a second chance — but taxpayers don’t get their money back. Writing off tens of millions and calling it a ‘lesson learned’ isn’t good enough. This cycle of failure must end.”

The Taxpayers’ Union can reveal through an Official Information Act response that the Environmental Defence Society (EDS) received $157,000 from the Department of Conservation in the 2023/24 financial year to produce two reports at $560.71 per page.

This follows earlier revelations that payment to the EDS had been made of $377,743 from the Ministry for the Environment, totalling more than half a million dollars in total taxpayer funding to the group since 2023.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“It’s utterly unacceptable that the public are forced to bankroll lobbyists, especially those like the Environmental Defence Society which dedicate their resources to driving up costs to the taxpayer through expensive legal challenges at every turn.”

“DOC’s staff ballooned by 37 percent between 2017 and 2023, and even then they’ve been outsourcing research to activist groups. Why are taxpayers paying twice to get stuck with lobby groups’ own spin?”

“From environmental lobbyists to politically-aligned unions, these groups should have to prove they have widespread public support by raising their own funds rather than relying on handouts. This isn’t environmental stewardship - it’s taxpayer-funded political activism.”

Responding to Minister Simeon Brown’s demands for underperforming SOEs like NZ Post and Pāmu to lift their game, Taxpayers’ Union Spokesman James Ross said:

“Minister Brown is absolutely right to ask why SOEs like NZ Post and Pāmu are failing to deliver basic commercial returns, proving that government ownership doesn’t guarantee results. If a household had assets that drained their coffers, they’d ask whether it was time to sell them. The Government should do the same.”

“Each household in New Zealand owns $275,000 worth in public assets, but instead of earning us returns, they actually cost us. Valued at more than $570 billion, the Crown’s portfolio should be working for taxpayers, not the other way around.”

“Past asset sales improved service quality, boosted performance, and paid down debt. It’s time we stop subsidising commercial mediocrity and sell the things we once wanted but no longer need, while keeping the things we truly value.”

The Taxpayers’ Union can reveal through a Local Government Official Information and Meetings Act request that Rotorua Lakes Council—via its Council Controlled Organisation, RotoruaNZ—forked out $93,985 on a television campaign featuring Mayor Tania Tapsell.

The ‘Robe Trip’ campaign, targeting luxury-seeking Auckland couples, cost $42,784 to produce and a further $51,201 to broadcast.

Taxpayers’ Union Investigations Coordinator Rhys Hurley said:

“RotoruaNZ may claim no general rates were used in this production. Yet the targeted business rate means local business already struggling to keep doors open are forced to foot the bill.”

“The campaign was subject to no fewer than 15 rounds of meetings between the agency, Council board, and Mayor’s office.”

“For a city battling infrastructure issues and crime, the time and money spent on this puff piece shows how warped Council priorities have become."

“This campaign might be dressed in a robe, but it’s ratepayer exploitation, plain and simple. RotoruaNZ should be focusing on delivering value, not puff pieces for the Mayor’s profile.”

A mega-merger between Wellington councils is being considered for a non-binding referendum that would combine the services and functions for the five authorities.

“Remember that big council doesn’t mean good council. What we got in Auckland was a cautionary tale; more bureaucracy and empire-building.” said Sam Warren, Local Government Campaigns manager for the Taxpayers’ Union.

“Closer collaboration between neighbouring councils to share costs and service delivery, in order to reduce the burden on ratepayer per capita, is always to be encouraged. Economies of scale is no promise—would this be the exception?”

“Work done by the Infrastructure Commission points towards diminishing returns once a population meets a certain threshold, suggesting that efficiencies from amalgamation are likely captured at relatively modest scales."

“The five councils can barely function by themselves; do we just trust them to ‘make it work’ when they’re inflated even more?”

“If a referendum is to take place, it’s essential that locals are front and centre—the risks and drawbacks are too expensive to get this wrong.”

The Taxpayers’ Union can reveal through the Local Government Official Information and Meetings Act that submissions collected from schoolchildren were given to Selwyn District Councillors to guide their decisions, as part of Waikirikiri Ki Tua, the Future Selwyn Survey.

Officials have acknowledged that some responses from the children may have been included in the wider dataset, meaning Councillors did not know which information had been supplied by adults, and which had been supplied by children—some as young as seven years old.

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

“Pretty childish stuff from Council, and Mayor Broughton is already in the naughty corner for his 14.9 percent rates increase last year—with more to follow. Maybe they all need to go back to school themselves.”

“I’m sure the colouring books were a fun exercise, but let's get real, Selwyn is in dire need of adults making the decisions, not children.”

“It’s completely irresponsible to include a seven year-old’s response alongside a local ratepayer on important Council decisions. Unless the kids wrote down their feedback with crayons, councillors won’t know the difference between a child’s input from an adult’s.”

“Either Council is deliberately screwing the scrum to push through policy—or they actually believe a Year 3 student could possibly have an informed opinion on things like infrastructure, housing, and services.”

“Selwyn Council needs to start taking advice from grownups, otherwise the district will keep feeling like a playground. Ratepayers won’t quickly forget this when local body elections come round.”

Tauranga City Council has confirmed a 9.9 percent rates increase. Council has cited savings found that has led to a lower rise than the 12 percent proposed, and the 20 percent originally projected.

“9.9 percent is not a victory—and councillors should not be patting themselves on the back for a rates increase only slightly less extreme than 12 percent.” said Sam Warren, Local Government Campaigns Manager for the Taxpayers’ Union.

“On top of last year’s 13.1 percent increase, it’s a cumulative rates rise of more than 24 percent in just two years. That’s simply not affordable.”

“Have we lost sight of what a ‘normal’ rates increase might be that this is somehow palatable?”

“It’s good to reduce the rise, but much more work needs to be done. Mayor Drysdale claims he has found ‘savings’—but there is not shortage of opportunities to go further, starting with the $125 million lease for Councils’ new offices, or $450,000 coffee machines rentals.”

The Taxpayers’ Union is warning that the Government’s freshwater consultation still leaves the door wide open for Te Mana o te Wai to keep driving up costs through the back door.

Taxpayers’ Union Spokesman James Ross, said:

“Te Mana o te Wai had towns like Alexandra and Clyde staring down $50,000-per-household bills. The Government was right to stop Otago’s regional plan, but there will be more where that came from if the concept isn’t scrapped entirely.”

“Removing Te Mana o te Wai from consent decisions is meaningless if it’s still baked into regional plans, because those are the very documents councils rely on when making those same decisions.”

“It makes no difference which part of the process is doing the blocking. Whether it’s in the plan or the consent stage, residents are still being tangled in red tape.”

“If a concept takes 350 words to define, and relies on six other woolly ideas to prop it up, it has no place in law.”

“Take mauri - the spiritual life force of water. It’s completely subjective, changes from region to region, and can’t be measured. That leaves councils exposed to costly legal challenges and constant uncertainty.”

“Amended or not, Te Mana o te Wai will still hold councils over a barrel. Until it’s scrapped entirely, the legal risk and the cost to ratepayers will only keep growing.”

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?"