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Racing industry jockeys for more PGF welfare
Earlier this morning, Radio New Zealand's Jo Moir revealed that the racing industry is set to receive funding for all-weather tracks from the Provincial Growth Fund, along with funding for a digital centre in Dunedin and a sports hub in Northland.
Regional Economic Development Minister Shane Jones described the projects as: "a coalition dividend", and that "the origins go back to the formation of government."
These projects are just new examples of Winston's Dowry - the cost of entering into coalition 'marriage' with New Zealand First.
It's an open secret in Wellington that New Zealand First is a long-time friend of the racing industry, which is why it was no surprise that the Government announced subsidies for hot horses on Budget Day. Now we know that the racing industry was an important part of the coalition negotiations.
If this Government is committed to being "the most open, most transparent Government" it should release the full terms of the coalition agreement between Labour and New Zealand First. Taxpayers deserve to know which projects and subsidies were promised prior to the formation of this Government.
Winston's Dowry as at 23 August: $5.168 billion ($2989 per household)
The total cost so far is $5.168 billion - or $2989 for the average New Zealand household, although if officials continue to increase the expected cost of policies, this figure will grow.
"The Dowry" to date:
- Provincial Growth Fund: $3 billion or $1735 per household, which includes funding for the racing industry revealed today.
- Additional funding for the Ministry of Foreign Affairs and Trade: $1.144 billion or $661 per household
- Additional funding for the Ministry of Defence: $426 million or $246 per household
- Additional funding for learning support: $272.8 million or $157 per household
- Additional funding for Oranga Tamariki: $269.9 million or $156 per household
- Adjusted 'Hot horses' tax break, the new Forestry Hub, and a rename for the Ministry of Children: $55.4 million or $32.05 per household
- Haumaha Inquiry: $150,000
Dowry Update: $150,000 inquiry seriously flawed
It was revealed at the Acting Prime Minister's post-cabinet press conference yesterday that Tracey Martin (a New Zealand First Minister) will be in charge of an inquiry into the appointment process of Deputy Commissioner of Police, Wally Haumaha.
Haumaha was selected as New Zealand First candidate in 2005, but did not contest the election.
According to Thomas Coughlan of Newsroom, the inquiry does not answer 'key questions' regarding the appointment of Wally Haumaha, including whether Cabinet would have appointed him to his role if they had been aware of comments he had made regarding a 2004 investigation of police sexual offending.
The result for taxpayers is a $150,000 inquiry with serious flaws.
Winston's Dowry as at 24 July: $5.168 billion ($2989 per household)
The total cost so far is $5.168 billion - or $2989 for the average New Zealand household, although if officials continue to increase the expected cost of policies, this figure will grow.
"The Dowry" to date:
- Provincial Growth Fund: $3 billion or $1735 per household
- Additional funding for the Ministry of Foreign Affairs and Trade: $1.144 billion or $661 per household
- Additional funding for the Ministry of Defence: $426 million or $246 per household
- Additional funding for learning support: $272.8 million or $157 per household
- Additional funding for Oranga Tamariki: $269.9 million or $156 per household
- Adjusted 'Hot horses' tax break, the new Forestry Hub, and a rename for the Ministry of Children: $55.4 million or $32.05 per household
- Haumaha Inquiry: $150,000
'Hot horse' subsidy costs to sky-rocket: Winston's Dowry grows
It was revealed last week, that the tax break for racing industry bloodstock is expected to cost significantly more than previously anticipated. The tax breaks for the racing industry have faced ridicule as the only tax cut in Budget 2018.
That's not surprising: the racing industry has historically been a strong supporter of New Zealand First. The Electoral Commission recently found that Sir Patrick Hogan was in breach of the Electoral Act when he funded a full page ad in support of the party prior to the General Election last year.
At Budget 2018, the cost of the tax break was expected to equal $4.8 million over the next four years, however IRD officials expect the tax break will cost up to $40 million - a 733% increase in the cost of the policy. That means taxpayers will be on the line for an additional $35.2 million over the next four years, which is all added onto Winston's Dowry!
Winston's Dowry as at 2 July: $5.168 billion ($2989 per household)
The total cost so far is $5.168 billion - or $2989 for the average New Zealand household, although if officials continue to increase the expected cost of policies, this figure will grow.
"The Dowry" to date:
- Provincial Growth Fund: $3 billion or $1735 per household
- Additional funding for the Ministry of Foreign Affairs and Trade: $1.144 billion or $661 per household
- Additional funding for the Ministry of Defence: $426 million or $246 per household
- Additional funding for learning support: $272.8 million or $157 per household
- Additional funding for Oranga Tamariki: $269.9 million or $156 per household
- Adjusted 'Hot horses' tax break, the new Forestry Hub, and a rename for the Ministry of Children: $55.4 million or $32.05 per household
Winston is in!
With Jacinda Ardern now on maternity leave, Winston Peters has finally grasped the wheel of power.
However, Mr Peters has had significant control over spending since the Government was formed late last year. Since then, Winston has negotiated for an array of projects, policies, and prizes for him and his NZ First Ministers.
This includes the Provincial Growth Fund, significant increases in spending for the Ministry of Foreign Affairs and Trade, and the Ministry of Defence, a vanity project (re)re-branding of the Ministry for Children, and a tax credit for hot horses, among other initiatives.
Winston's Dowry as at 21 June: $5.132 billion ($2960 per household)
The total cost so far is $5.132 billion - or $2960 for the average New Zealand household, although depending on how Winston behaves from the 9th floor, that figure could grow in coming weeks. We'll be watching closely for announcements from NZ First Ministers and the acting Prime Minister so we can update Winston's Dowry.
"The Dowry" to date:
- Provincial Growth Fund: $3 billion or $1735 per household
- Additional funding for the Ministry of Foreign Affairs and Trade: $1.144 billion or $661 per household
- Additional funding for the Ministry of Defence: $426 million or $246 per household
- Additional funding for learning support: $272.8 million or $157 per household
- Additional funding for Oranga Tamariki: $269.9 million or $156 per household
- 'Hot horses' tax break, the new Forestry Hub, and a rename for the Ministry of Children: $20.2 million or $11.70 per household
Winston's Dowry
In the coming weeks, we will be launching a new project: Winston's Dowry.
Marriage can be expensive, but normally the guests aren't given a bill at the end of the ceremony. In a political marriage, the cost of attendance can be significant. The aim of Winston's Dowry is to calculate the total cost to taxpayers from the demands of two-time coalition divorcée, Winston Peters.
We will be updating the Dowry regularly as new vanity projects, expensive trips away, and pork-laden policies are announced or appear on our radar. If you have any examples of expensive projects or eye-watering trips abroad related to Winston Peters' presence in Government, you can send them through to our tipline.