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Dear Supporter,
This week's newsletter is a bit longer than usual. We were set to release the September Taxpayers' Union-Curia poll (see below) on Friday, but hit pause when we woke up to the news that Her Majesty, Queen Elizabeth II, Queen of New Zealand, had passed away.
Queen Elizabeth personified leadership through action and demonstrated remarkable grace and dignity in her service to the Commonwealth. The outpouring of grief from all over the globe is testimony to the high esteem in which she was held. We join the whole nation in thanking her for a life of exemplary service.
As with other taxpayer groups around the Commonwealth, the Taxpayers’ Union suspended its campaign activities during a period of mourning (you can read our public comments here: Taxpayers’ Union Pays Tribute To Her Majesty The Queen Of New Zealand, Suspends Campaign)
Here at the Taxpayers' Union, sometimes our role is to be "Scrooge McDuck" – after all, who else will push back against politicians giving away other people's money?
I'm a stanch royalist (my co-founder David Farrar is a republican) but was pleased to support Chris Milne's take that no public holiday is "free":
The Taxpayers’ Union supports the principle of a day where New Zealanders can come together to pay their respects. However, taxpayers are being told by the Government to foot the huge bill for another day of leave in the public sector.
For small businesses—who are still trying to recover after the pandemic—this is yet another cost loaded on. The owners of these businesses, many small family enterprises, are being told to pay not only for their own respect for the Queen, but also for all the respect shown by their staff. This is inequitable. The Queen was the queen of us all and the cost should fall on all of us.
Rather than rejecting the idea of an observance to recognise the Queen, the Taxpayers’ Union believes that New Zealanders should, if they wish to do so, take a day of annual leave to mark this historic occasion and an extraordinary life.
Less than 24 hours later, ACT was on board with the idea with David Seymour saying that workers should have a right to take a day of either annual or unpaid leave on the public holiday, but without costing our businesses another day of wages. See Day of recognition without the costs is the answer – David Seymour
National has leapt forward from 34% last month to 37% in September while Labour has dropped 2 points to 33%. ACT is up 1 point to 12% and the Greens are static on 10%.
The poll was taken in the nine days up to last Thursday evening (thus the Queen's death delayed the publishing of the results).
The smaller parties are the Maori Party at 1.5%, NZ First at 1.6%, New Conservatives 1.5%, and TOP 0.7%.
Unlike last month, the centre-right could govern alone with these numbers (and not need the Maori Party). The centre-right crosses the 61 seat victory threshold going from 58 seats to 63 and the centre-left drops from 57 seats to 55.
On preferred Prime Minister, Jacinda Ardern drops 3 points to 37% while Luxon bounces up from 20% to 26%. David Seymour is on 6.6%
Chloe Swarbrick is in fourth place as Preferred PM on a respectable 3.2%. Notably, that is higher than both Green co-leaders combined with Marama Davidson on 1.4% and James Shaw on 1.0%.
Head over to our website for more.
If ever you needed an example of the good life contracting for the Government, our research team have uncovered a doozy. Tatou NZ - a well-connected marketing agency - was paid $95,450 to “rebrand” the Government's "2025 Smokefree Action Plan".
We asked what the Government received for nearly nine years of income tax for the average worker. All officials could point to was a few pages of logos and instructions on how to use it. This isn't a new government agency: it's for what officials call a 'plan'. And taxpayers have paid for branding already! 🤦
An invoice dated 21 February 2022 from Tatou NZ Ltd breaks down the costs as:
Discovery: Te Wāhanga Whakapapa – we learn everything we can about you – how you work, who you work with, your goals; (You have done a lot of the work here already – work that we will build upon) and your audience – who they are, what they need. - $13,750
Define: Te Wāhanga Tautuhi – We distill what we learned and articulate succinctly the brand fundamentals – which will build on the work you have already done. Objectives, vision, mission, and how you will achieve them. This will include your brand values and personality. Then, we look at what that means for your audience. We will share, and work with you to achieve the final expression. - $20,000
Develop: Te Wāhanga Whakarite – We write a creative / design brief. Once approved our team will conceptualise what your brand might look like, and how it might sound. We’ll share concepts, listen to your feedback and refine. Co-design. Test. Includes feedback process and making changes. - $30,000
Deliver: Te Wāhanga Mahi – The creation of the brand assets, and implementation. Includes feedback process and making changes. - $19,250
Nice work if you can get it!
Your humble Taxpayers’ Union continues to do what the media are not and regularly audits what Minsters and Beehive officials are spending your money on.
One of our student interns has dug out a mysterious "breakfast" at Boston Harbor Hotel belonging to someone who works for Minister of Trade, Damien O’Connor. While on a recent trip with the Minister, the staffer spent $100 (60USD) on a hotel breakfast.
But here's the thing – based on the menu (available online) – it appears the staffer was either one very hungry official, or our generous mandarin was ordering for two.
We asked the Minister's office who the other breakfast was for – but the Office refused to provide the information to protect the an official "from improper pressure or harassment" (section 9(g)(ii) of the Official Information Act allows for this as a reason for refusal to release official information). I've only seen this section used one other time since 2013.
We hear around the traps (but are unable to confirm) that our mysterious official was entertaining a new found friend on tour. Of course, no one objects to an overseas romance, but putting a Tinder date's breakfast on the taxpayer is rather raunchy.
In the wake of the Queen’s passing, the latest edition of Taxpayer Talk focuses on the Monarchy and our constitution. Peter Williams interviews Canadian-born, Australian-domiciled law Professor James Allan who reflects on why the Commonwealth Monarchy is the most successful anywhere and why having a queen or king on the other side of the world as our Head of State is still the best system for New Zealand, and other Commonwealth realms.
David and I join Peter too to reflect on the political week and discuss the results of the Taxpayers' Union-Curia poll. Is luck finally running out for the government?
You can listen to the episode online here, or via Apple Podcasts, Spotify, Google Podcasts, iHeart Radio and where all good podcast are sold.
Thank you for your support.
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Media coverage:
Stuff Should NZ follow the US example of forgiving student loan debt?
Newstalk ZB The Huddle: Health NZ, Jan Tinetti, Cost of Living Payments
Newstalk ZB Barry Soper on OCR, latest poll and Gaurav Sharma
NZ Herald Kate MacNamara: Three Waters and Jacinda Ardern's contention that ownership matters, not control
NZ Herald Bruce Cotterill: Three Waters doesn't pass the sniff test
Dear Supporter,
Exclusive to supporters like you, this month's Taxpayers' Union-Curia Poll shows an overall gain for the Labour/Green centre-left parties at the expense of the National/ACT centre-right bloc. Applying the results to seats Parliament, neither has the 61 seats required to govern without the Māori Party.
With five seats, the Māori Party would determine who will form a Government next year on these numbers.
We've just released the key results on our website here.
Christopher Luxon's Preferred Prime Minister results continue their slide. Mr Luxon was on 28% in June is now on just 19.5% today. Jacinda Ardern is at 39.5%.
Cost of Living (22.7%) is by far the issue most Kiwis are thinking about when considering who to vote for, followed by the economy. Despite what the media would have you believe, just 4% of Kiwis rank the environment as their most important voting issue right now.
As part of this month's poll, our polsters asked voters whether they support a temporary 10% reduction in overall income tax for all families to help with the increased cost of living. 59% said yes.
Something that the Beehive should take note of is that Labour voters are the most in favour of a temporary package for across-the-board tax relief!
Our pollsters asked 1,200 Kiwi voters if the Government should be increasing, decreasing, or maintaining spending levels in response to high inflation.
The most popular response – 45% – was that Government should decrease spending. Only 12% of respondents thought increasing spending was the right idea and 27% said spending should be kept the same.
The poll suggests that Kiwis know very well that the Government's record spending is driving up prices across the board. So next time Labour MPs try to troll National Party leader Chris Luxon with claims his Party will 'cut spending' Mr Luxon should say yes!
Information about access to the full report, and methodology, is on our website.
Former TVNZ broadcaster (now Taxpayers' Union Board Member) Peter Williams has taken over as host of our new weekly Taxpayer Talk podcast. In this week's episode, he speaks to author and social commentator Ewen McQueen on his book One Sun in the Sky: the untold story of sovereignty and the Treaty of Waitangi. He also hosts our first of what we plan to be a weekly political panel, this week covering the Taxpayers' Union-Curia poll and problems within National.
You can listen to the episode on our website here, or via Apple Podcasts, Spotify, Google Podcasts, iHeart Radio or via any good podcast app.
During our polling period, the National Party were dealing with allegations of historical bullying by new MP Sam Uffindel, but by the end it was Labour under the pump as they batted back accusations of bullying from one of their own, Hamilton West MP Dr Gaurav Sharma.
Buried in his lengthy allegations, was the assertion that a Labour MP and Parliamentary Service staff member were "misusing taxpayer's money". This could have been lost in the drama, but your humble Taxapeurs' Union is determined to get to the bottom of it.
We are calling on an independent enquiry into the claim by Dr Sharma. It isn't enough for Parliamentary Services (which reports to the Speaker) to conduct a secretive investigation. Remember that Parliamentary Services is one of the very few public agencies not covered by freedom of information laws.
And as we saw with Parliamentary Service's mishandling of Trevor Mallard's outrageous and false rape accusation against a Parliamentary staffer, that office can hardly be trusted with protecting taxpayer money... Luckily Parliament already has an officer tasked with protecting taxpayers, and we have called on the Auditor General to investigate.
If not the Auditor General, we know of a reputable independent organisation which has specialist expertise in throwing sunlight onto government waste. That's why we wrote to all MPs to remind them that (as the IRD used to say) "we're here to help".
Our sister group, the Auckland Ratepayers Alliance has also been keeping the posters busy. In a first for the Super City, they've been tracking support of the leading mayoral candidates, and their poll released on Friday saw the self styled shockjock-come-restaurateur, Leo Molloy pull out of the race.
Labour-endorsed and sitting councillor Efeso Collins is the front-runner to take the Mayoral Chains from Phil Goff. But with just 22.3% of the decided vote, Aucklands are clearly wanting a change of direction at Auckland Council.
Ex-Far North Mayor Wayne Brown was a close second on 18.6% and with Leo out, C&R's Viv Beck (12.5%) in third place. Head over to the Auckland Ratepayers' Alliance website to read the full poll report.
In the coming weeks we will be preparing "ratepayer voting guides" to increase transparency on local council election canididates' positions on rates, Three Waters and issues such as transport.
If you are in a position to help our student interns collate contact information and contact local candidates in your region, good with a phone (and on email) please drop me a line by reply email.
With your support, we'll be able to publish New Zealand's first online ratepayer voting guide covering the whole country.
Last year the Government changed interest deductibility rules so landlords cannot claim interest for tax purposes on existing rental properties. However, now Housing Minister Megan Woods has decided to do a U-turn, but not for mum-and-dad-investors, rather only for the big end of town!
The Housing Minister has announced blocks of at least 20 new and existing build-to-rent flats will be exempt from interest deductibility tax changes in perpetuity if they offer 10-year tenancies.
“We’re providing an exemption from the interest limitation rules to certain types of new and existing build-to-rent developments in perpetuity,” Housing Megan Woods said.
This makes little sense. The removal of interest deductibility breaches the fundamental principle that tax law should treat like for like. Giving tax favours to well connected big property developers while still hammering those less close to Megan Wood's officials is Muldoon-style tax policy. Yuck.
We are 100% funded by our members and supporters like you, who make our work holding the Government (and councils) to account. To back the mission of Lower Taxes, Less Waste, and More Transparency, click here to donate via our secure website.
Thank you for your support.
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PS. Is the first newsletter this year that doesn't mention Three Waters!? If you follow that campaign (i.e. signed our Stop 3 Waters petition, or used our select committee submission tool) we'll be in touch separately later this week on the next steps for that campaign...
Media coverage:
Newstalk ZB Taxpayers' Union crying foul on Kainga Ora's plans to hire more staff
Newstalk ZB Taxpayers' Union banned from Local Government NZ Conference
Newstalk ZB The Huddle: Taxpayers' Union vs LGNZ, overseas investors, mask use
Newstalk ZB Barry Soper on cost of living payment, unemployment and Three Waters
Newstalk ZB Heather du Plessis-Allan re Commerce Commission
Today FM: Do you believe that Nanaia Mahuta lied to the NZ public about Three Waters?
Subject: Tackling the culture of dishonesty in Wellington re three waters
Dear Friend,
Thank you again for supporting the fight against Nanaia Mahuta’s Three Waters proposals. Further to Peter Williams’ (no relation!) note last week, I’m emailing to ask for your feedback on a matter we have been thinking about for some time. This email is longer than usual, but we think you'll agree it needs to be for what we're considering.
First though, in case you missed it, our formal submission to the Select Committee on the Three Waters "Water Entities Bill" is here. This emaiL concerns the legal opinion appended to that submission – you may have heard our lawyer interviewed this morning on "Today FM", and the media release summarising the opinion is copied at the end of this email.
Since David Farrar and I co-founded the Taxpayers’ Union in 2013, we have noticed growing public sector tolerance of dishonesty. There has always been some expectation of manipulation and ‘spin’ in the media. But we could expect Ministerial advisers and contracted professionals to maintain their own standards. At the least, they would stay silent when Ministers were being “political”. Now it seems agencies and public servants feel compelled to collude in lying.
In the context of the Three Waters campaign, we’ve seen an unprofessional approach in the way people who ought to know better perpetrated and repeated some Minister’s claims about Three Waters. We have long been worried that they’ve seemed untrue (or at the very least, calculated to be misleading). Take two examples:
Public service professional standards of honesty and integrity have traditionally relied on the State Services Commissioner (now the "Public Service Commissioner") to maintain. We fear, however, that the Public Services Commission has deteriorated just as much as the public sector agencies it is set up to monitor. We have not seen it effectively disciplining agencies which have been dishonest or used public money for political advertising campaigns (NZTA, for example).
So in that context I asked lawyers Brigitte Morten and Stephen Franks for an opinion on Minister Mahuta’s false claims about Three Waters reforms.
We wanted a strict legal opinion on whether minister Mahuta was in breach of the Fair Trading Act and securities legislation regarding the claims she was making about councils owning “shares” in the Three Waters assets – i.e. would she be a crook if this was the context of a share offer to the public?
The opinion we got back, which has also been peer reviewed by a Queen's Counsel, is probably the most damning legal opinion I have ever read. It concludes that Minister Mahuta's claims regarding ownership have been "calculated to deceive Parliamentarians, and when it becomes law, to deceive New Zealanders generally".
The legal opinion is very detailed, but it is not hard to understand. It calls the claims of retention of local ownership "false, misleading and deceptive" as "councils are expressly denied the rights of possession, control, derivation of benefits, and disposition that are the defining attributes of ownership". Gary Judd QC comments in his review of the legal opinion: "When all the lying statements are put together, as [the] opinion does, the government’s effrontery is breath-taking."
While the opinion says the Minister can’t be prosecuted for criminal wrongdoing because her comments were not made "in trade" it hadn’t occurred to us that those party to Ministers’ false assurance could potentially be liable and held to account.
Most notably they raise the possibility that culpability could reach any professional advisors on the Ministers "Governance Working Group" on three waters governance, and the council's lobby group (that sold out to the Government), Local Government New Zealand.
In my experience, lawyers usually hedge their bets and understate wrongdoing. But that isn’t the case here. The lawyers think there is a clear breach of not only the usual standards of honesty and fair dealing, but of the law. Have a read of the opinion and judge for yourself.
So we want you feedback. We’ve taken the first step and informed the Commerce Commission (our lawyer's letter is here).
If the Commerce Commission don’t act promptly, should we seek advice on the steps on a private prosecution? That would be a big trigger to pull – it would likely send shockwaves through Wellington (in the best possible way). But how else can we STOP the dishonesty, force the Government (or at least those working for it) to acknowledge that Three Waters is an asset grab – that council’s won’t “own” the assets in any meaningful way?
Most importantly how do we re-establish expectation that public servants’ statements are truthful in the old-fashioned sense – that they will not allow themselves to be misused to deceive, by omission or commission?
For the politicians, the task of keeping them honest rests at the ballot box – but our democracy relies on a professional public service that is truthful and enjoys the confidence of all New Zealanders as straight shooters. That can mean 'free and frank' advice to Ministers, and telling them things they don't want to hear. We cannot let it stand that the bureaucracy are playing politics and joining hands in political and legal deceptions on the public.
So have a read of the opinion, let us know your thoughts, and I will ensure each and every reply is read as we work out where to from here.
Thank you for your support.
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PS. For those of you who have marked the date - the Water Users Group is finally in Court tomorrow! They are there to argue that the official advice provided to and relied upon by Minister Mahuta (the advice that she claims says that Three Waters is necessary for the Crown to comply with the Treaty) should be made available for public security. To my immense frustration the High Court has prohibited those who are funding the cause from sitting in on or listening to the hearing. I am hoping to sit down with one of the two QCs who are arguing that case tomorrow or Friday, and will update all of those who have chipped into that cause just as soon as I have news to give you. You can read the memo from the Court on the reason we cannot watch here, and the latest update from the Water Users' Group here.
MEDIA RELEASE
Legal Opinion: Three Waters Bill “calculated to deceive” – Minister’s professional advisers possibly liable as party to the fraud
Like tens of thousands of New Zealanders, the Taxpayers’ Union submitted to the Finance and Expenditure Select Committee on Three Waters (Water Services Entities Bill). With the Union’s submission was a bombshell legal opinion.
Ministers have repeated assurances that councils will continue to own water assets under the proposed ‘Three Waters’. But those claims are utterly false. Public law firm Franks Ogilvie, in an opinion reviewed by Gary Judd QC, lay out the extent to which these claims have been "calculated to deceive Parliamentarians, and when it becomes law, to deceive New Zealanders generally". The opinion is being released publicly today.
Taxpayers’ Union Executive Director Jordan Williams says, “It is clear the Government realised that they could not convince New Zealanders that handing over ownership of local assets was a good idea. So they’ve instead redefined 'ownership' to mean nothing, so they can promise continued community ‘ownership’ in an incredible display of contempt for the public, the truth and the law.”
The legal opinion is very detailed, but it is not hard to understand. It calls the claims of retention of local ownership “false, misleading and deceptive” as “councils are expressly denied the rights of possession, control, derivation of benefits, and disposition that are the defining attributes of ownership”. Gary Judd QC comments in his review of the legal opinion: “When all the lying statements are put together, as [the] opinion does, the government’s effrontery is breath-taking.”
The legal opinion concludes that despite the obvious dishonesties, ministers are immune to prosecution under the Financial Markets Conduct Act 2013 and the Fair Trading Act 1986 as they are not ‘in trade’.
Mr Williams continues, “But that defence does not apply to people assisting the Ministers in a professional capacity. That would include, for example, members of the Working Group on Three Waters governance that could be held liable as they operated ‘in trade’ as professionals providing a service and could be deemed complicit in making the untrue claims.”
“Additionally, legal experts found that Local Government New Zealand ‘could be found to be acting in trade in its provision of representation and advisory services', so their public statements promoting the lie that councils will ‘own’ water assets under Three Waters, could make them also liable to prosecution.”
The authors of the legal opinion do not mince words in their assessment of the situation stating: “Ministers appear to have cold-bloodedly decided to confuse Councils and ratepayers with false statements.”
Mr Williams says, “Ministers might dodge prosecution because they’re in politics, not ‘trade’, but the lawyers note the expectations in the Cabinet Manual and Standing Orders. They must not mislead the House and they must act to ‘the highest ethical standards'. However, the consequences for our elected members will not come from the courts, but at the ballot box.”
“It is difficult to see how the Government can proceed with such a discredited abuse of legislative process. The huge public opposition to the Bill came without knowing of such damning conclusions from respected legal experts. This is not a careless, technical, or understandable mistake in legislation. It is intentionally deceptive. The lies have been actively promoted by ministers, Working Group members, LGNZ, and various elected and non-elected officials."
“We’ll be seeing if anything effective can be done to restore customary honesty among those drawn into this ministerial cheating. If officials were forced to be complicit, they may need better support against ministerial pressure. We’ll be considering carefully whether authorities who punish and deter calculated dishonesty by business people, can do their job when the cheating comes from the top."
Access legal opinion at www.taxpayers.org.nz/calculated_to_deceive
ENDS
Dear Supporter,
Our lastest Taxpayers' Union Curia poll has just been released. We summarise the results at the end of this update – and what would happen if this poll was reflected in an election and we ended up with a hung Parliament.
The Government has doled out another $4 million to media from the 'Public Interest' Journalism Fund this week.
The latest announcement includes $1.2 million for Allied Press, $374,245 for iwi news, $160,000 for The Spinoff to write about the 2022 local body elections and $39,380 to Metro Media Group to write a four-part series on how the arts get funded, and $800,000 for a programme introducing young people to journalism as a "viable career".
Check our website for the full list of funding recipients from the PIJF.
In his last blog post for the Taxpayers' Union, Louis explained how this funding damages media independence, no matter how much the journalists deny it:
Significant funds have been allocated for struggling outlets to train and employ new journalists. But with the $55 million soon set to run dry, the Government will face immense pressure from the media to top up the funding, lest they have to lay off their new young journos.
New Zealand media bosses and editors are protective of and loyal to their staff, and financially invested in keeping their outlets afloat. This presents an obvious conflict of interest in next year's general election campaign: media figures have a personal and financial interest in electing a Government that will protect their funding. New Zealanders will rightly view their election coverage with this in mind.
Click here to read the full piece.
Time flies: it's now just one week until Parliament stops accepting written submissions on the Water Services Entities Bill (a.k.a Three Waters).
If you haven't already made a submission, click here to use our tool.
Alternatively, you can spend a bit more time making a submission through Parliament's webpage.
Already, 16,000 New Zealanders have made submissions through our website. That's a stunning effort. And thousands of you have requested to have your submission heard orally – this is crucial to delaying the legislation, and we know that each day the Three Waters debate drags on, the more the Government suffers politically.
Eighteen months after the Government forked out $30 million in housing funds to purchase the paddocks of Ihumātao, there is still no sign of progress towards construction.
In fact, the group of iwi and government representatives meant to make decisions about the land have only had one meeting with Māori Development Minister Willie Jackson, who has given them another three and a half years to just to stump up a plan for housing on the land.
The ACT Party has described the amount of time it's taking to get houses build at Ihumatao as an 'Ardernity' – a label that could just as easily be applied to the wait for 100,000 KiwiBuild homes, or progress on Auckland light rail...
We're delighted to have Laurence Kubiak appointed as the new Chair of the Taxpayers’ Union Board.
Laurence is a high tech entrepreneur, a recent Chair of the New Zealand Symphony Orchestra, and former CEO of the New Zealand Institute of Economic Research.
Here's what he told media:
I’m delighted to have been asked to chair New Zealand’s leading voice for government transparency and fiscal prudence.
The Union stands for public spending that is efficient, transparent, and subject to appropriate accountability: values that are the heart of any robust system of governance. The Taxpayers’ Union gives a public voice to these values, a voice that will become stronger and even more important as we chart our course through these unsettled times.
I'd like to thank Casey Costello, our Acting Chair since the launch of our ‘Stop Three Waters’ campaign late last year. Anyone who saw her speech against co-governance at our town hall event in Auckland will know she's a star.
Our latest Taxpayers' Union Curia Poll was released just a few moments ago.
While there are no significant shifts in support for the major parties, a boost for the Māori Party means that this month's result would likely translate to a tie on election day.
National and ACT win 60 seats, Labour and the Greens win 55, and the Māori Party nets 5 seats.
You can read more on the poll's findings on our website. But we better answer the obvious question...
It’s election night 2023. The centre-left bloc of Labour and the Greens, joined by the Māori Party, has won 60 seats. National and ACT have also won 60 seats. In a 120-seat Parliament, neither side has the majority required to form a government. What happens?
Josh Van Veen (a member of the Taxpayers' Union team and a part-time political historian) lays out potential scenarios:
Scenario 1: Labour and National could put aside their ideological differences to form a ‘grand coalition’. There is precedent. In Germany, under Chancellor Angela Merkel, the centre-right Christian Democrats governed with the centre-left Social Democrats on three separate occasions. Back home, we can see parallels with the United-Reform Coalition that governed New Zealand between 1931 and 1935. The Coalition eventually led to the formation of the modern National Party. What about a NatLab Government?
If this seems far-fetched, remember that Jacinda Ardern once personally picked Christopher Luxon to chair her business advisory council!
Scenario 2: Labour and National could agree that the party with the most seats should govern. This would mean that the ‘loser’ abstains on confidence and supply while otherwise fulfilling the duties of Opposition. But such an arrangement would leave a "lame duck" Government unable to pass any laws without consent from the Opposition. On the other hand, New Zealanders might welcome this kind of consensual politics as a positive and constructive innovation.
Scenario 3: To make Scenario 2 work for the full three-year term, Labour and National could agree to govern on a ‘rotational’ basis. Christopher Luxon would serve 18 months as prime minister before handing back power to Jacinda Ardern (or another Labour leader) to see out the Parliamentary term. The arrangement would require both parties make significant policy concessions and perhaps sign up to a joint legislation programme. Scenario 3 is a grand coalition in all but name.
Scenario 4: Of course, National could dispense with Labour and attempt to win over the Māori Party. This would likely see National abandon its stance on co-governance and might complicate relations with ACT. But if he pulled it off, Christopher Luxon could go down in history as our wokest prime minister – changing the country’s name and perhaps establishing a separate Māori parliament or upper house.
Scenario 5: If the first four options are ruled out that leaves only one alternative: a new election. This scenario regularly plays our in Israel, where four general elections were held between 2019 and 2021. With Jacinda Ardern cast in the role of Benjamin Netanyahu, she would remain Prime Minister through the new election. And so on. While it could be the tidiest option, it is the most expensive. In 2020, it cost $160 million to run the election (though this included two referenda).
Re-doing an entire election might sound like banana republic stuff, but frankly it seems more realistic than the alternatives.
Thank you for your support,
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Media coverage:
Timaru Herald South Canterbury mayors urge people to have their say on Three Waters reforms
Waikato Herald Three Waters Reform: Waipā mayor Jim Mylchreest says it's time to speak up and share your thoughts
Politik Everybody is worried about Groundswell
Hawke's Bay Today Hawke's Bay rates issues highlighted in annual increases
Homepaddock 7 questions on 3 waters
Stuff Beware of fish-hooks in free trade deals
1 News NZ Maori Council further distances itself from Matthew Tukaki
Southland Times Three Waters advocacy group to front Invercargill City Council
Rotorua Daily Post Three Waters Rotorua protest: 120 turn out to oppose ‘loss of local control’
SunLive WATCH: Three Waters: NZ’s hot topic
SunLive Three waters roadshow stopping in Tauranga
Stuff Polls diverge on voter direction as left and right blocs neck and neck
The Working Group The Working Group Podcast with Jordan Williams, Maria Slade and Brooke van Velden
The Daily Blog Winners & Losers in latest Taxpayers’ Union Curia Poll: NZ Political Spectrum is splintering
Stuff The Ardern Government is in a death spiral with no hope … or is it?
Marlborough Midweek Stop Three Waters turnout ‘amazing’
Stuff Turnout draws praise at Stop Three Waters roadshow in Blenheim
RNZ Auckland councillor appalled at national cycleway project blowouts
Dominion Post Contract of NZSO board chairperson not renewed after Taxpayers’ Union appointment
Offsetting Behaviour Thou shalt not suffer a conservative on your Board
Timaru Herald Timaru stop for five-week nationwide roadshow rallying opposition to water reforms
Otago Daily Times Strongest turnout yet at latest Three Waters roadshow meeting
Otago Daily Times Three Waters plan ‘undemocratic’
Otago Daily Times Hundreds at 3 Waters reforms protest meeting
SunLive Three Waters protest to oppose “loss of control”
Oamaru Mail Lower rates with Three Waters
Otago Daily Times Three Waters meeting packed
RNZ Political commentators: Brigitte Morten and Lamia Imam
The Platform NZ Sean Plunket speaks with former New Zealand broadcaster Peter Williams
Stuff Fired up crowd heckle Gore’s mayor at Groundswell’s 3 Waters meeting
RNZ Groundswell, Taxpayers’ Union roadshow in Gore
On Saturday the Labour Party posted a new ad on its Facebook page. The ad was filmed in the Ministry of Health's contact tracing centre and included a number of public servants, including Dr Ashley Bloomfield (see the still image above).
This is disgraceful. Taxpayer-funded civil servants should not be made complicit in the governing party’s political propaganda.
And during an election campaign, it is especially important that the Prime Minister does not use her special access to public servants in a way that advantages her political party. You can read our full comments here.
Shortly after we (and ACT) drew attention to these problems, Labour took down the video for a re-edit. But it's hard to see how this ad can be salvaged.
We've lodged a complaint with the State Services Commission.
Two recent stories are sadly typical examples of failed leadership at the local level.
At Tauranga City Council, elected officials are calling for the resignation of Mayor Tenby Powell, who has apparently created a toxic culture, abusing colleagues in front of staff and causing one councillor to claim he hates working at the Council.
Meanwhile, at Canterbury DHB, seven out of 11 executives have resigned, with the chief medical officer blaming the Board's adversarial culture.
Frustratingly, in both cases local voters have to wait two years for the chance to eject those responsible.
We say that's not good enough. In the latest episode of Policy in 60 Seconds, Islay explains how recall elections could be introduced in New Zealand to boot out failed politicians before their term is up:
Click here to watch on Facebook.
Last week we teamed up with the Ratepayers' Alliance and the Rodney-based Northern Action Group to launch a joint campaign for recall elections.
Here's Jordan discussing the idea with Peter Williams on Magic Talk.
You can read the policy proposal paper here, and add your voice to the campaign here.
The Restaurant Association is campaigning for a taxpayer-funded subsidy on dining out.
Usually, a business group wouldn’t dare ask for such a blatant special favour. But in the age of COVID-19, the floodgates have opened with the Government agreeing to handouts for favoured sectors such as the racing industry, and to fashionable businesses like AJ Hackett Bungy.
Financial assistance should apply fairly to all. A temporary cut to GST, for example, would benefit all struggling businesses by encouraging consumers to bring forward spending, whether that be on eating out or on a new washing machine.
I made the case for a temporary GST cut in this op-ed on Interest.co.nz.
We'd also suggest that instead of handouts, many businesses could benefit from regulatory relief which doesn’t cost taxpayers a cent. In fact, the Restaurant Association was on to a good thing earlier last week when it suggested restaurants should be able to sell alcohol with their deliveries and takeaways.
Ratepayers in the Waikato are forking out $8.8 million for the Regional Council's fit-out of its new office.
The Chairman, Russ Rimmington, complained that before renovation the chamber looked like a badminton hall and had ‘no style’.
Diddums. Self-important regional councillors might think they’re entitled to more extravagant surroundings, but most ratepayers will never see the inside of this building.
The Council doesn’t even own the building, so the $3.1 million spent on building works won’t be reclaimed at sale down the line. From a ratepayer perspective, this money may as well have been tossed in the river.
After a brief disappearance during the new COVID-19 outbreak, the Debt Monster is back with a vengeance.
New Zealand First staff were alarmed to see him approaching their campaign bus outside Parliament, and drove away moments after this photo was taken:
Later, he was seen trying out Trevor Mallard's $572,000 slide:
Witnesses report he's a big fan.
The Debt Monster even tried to give James Shaw a hug at a business breakfast, but the Green Party co-leader wouldn't face him. 😔
Two more episodes of our Taxpayer Talk podcast are available.
In the first, Islay sits down with former Treasury economist Michael Reddell to discuss what the Reserve Bank's money-printing and interest rate-cutting means for the economy. Listen here.
In the second, I challenge the CEO of Tourism NZ to explain why his agency is spending $10 million on an international tourism campaign while the borders are closed. Listen here.
You can find all our Taxpayer Talk episodes on Apple Podcasts, Spotify, Google Podcasts, and iHeartRadio.
Have a great week,
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Media coverage:
Newstalk ZB Labour campaign ad featuring Ashley Bloomfield has been taken down
Stuff Mega polytech has 21 staff with chief executive in their title
Stuff Restaurants want Government to spend $27m subsidising meals
Northland Age A pattern of sloppiness
KiwiBlog Taxpayer Talk: Michael Reddell on Unemployment, Negative Interest Rates and a Temporary Cut to GST
Sunday Star-Times The price of our vain belief in Covid-19 exceptionalism
Interest.co.nz If we can't cut the OCR, how about GST?
NZ Herald Covid 19 coronavirus lockdown: Auckland Mayor Phil Goff on extension - 'Do not panic buy'
Northland Age A tale of two speeches
Homepaddock No indexation = tax increase
Sunday Star-Times What NZ's economy can learn from the myth of Franklin Roosevelt's New Deal success
Otago Daily Times Councillor's $100k-plus salary for 30hrs a week
Timaru Herald Another SCDHB surplus 'sets an example' for others
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