Commenting on the news that Nicola Willis’ office failed to respond to a joint letter from accomodation providers requesting an urgent meeting over plans to introduce an App Tax from April this year, Taxpayers’ Union Policy Adviser, James Ross, said:

“A bit of backbone from the National Party wouldn’t go amiss. Their own campaigns from last year prove that they know how damaging the App Tax will be to Kiwi consumers and businesses alike.

“Whether the meeting request got lost in an administrative mix-up is irrelevant. National’s own messaging shows that they already knew the facts laid out in this letter.

“It’s easy to sling stones from opposition, but National protecting Labour’s unsustainable high-tax legacy is failing the voters who put their faith in the party at the ballot box.

“Rather than taxing hardworking Kiwis out of being able to afford a summer junket, the Government needs to get serious about slashing Wellington’s over-bloated bureaucracy to plug the fiscal gap.”

Reacting to the Government’s announcement that they are withdrawing a bill from the previous Government that would have lowered the voting age for local body elections to 16, Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“Changes to the rules of the game in any democracy should be decided by the people, not by politicians who have the incentive to screw the scrum in their favour.

“While reasonable minds can differ on the merits of lowering the voting age, introducing such a significant piece of legislation in the dying days of Parliament and closing submissions just six days after the general election is nothing more than bad-faith electoral reform.

“Proponents of lowering the voting age should work to win over public support before any bill is introduced in the future and allow the decision to be made by voters, not self-interested politicians.”

The release of today’s Half Year Economic and Fiscal Update confirms the worst kept secret in Wellington; the fiscal challenges ahead are much worse than the public were told about prior to the election. 

From the Treasury lock-up, Executive Director of the Taxpayers’ Union, Jordan Williams, said: 

“Treasury has confirmed that the last government put New Zealand on a completely unsustainable fiscal path. Grant Robertson should be ashamed, as not since his mentor Mike Moore has a government been so dishonest with the public about what was really going on. He should be issuing an apology.” 

“It is very clear that tough decisions – and a brave Minister of Finance – are necessary to get the books back into shape.” 

“The economic backdrop is nearly as bad, with high net migration dragging us into positive growth – but only just.  On a per person basis, New Zealand still faces getting poorer in the short term.”   

“Now that we know that the Pre-election Economic and Fiscal Update was in fact a fantasy land, we need to ask ourselves how our fiscal reporting model and institutions have failed taxpayers.” 

“After Mike Moore lied to New Zealanders about the state of the books in 1990, the Fiscal Responsibility Act was put in place to ensure there were no post-election ‘nasty surprises’ like those which we have seen today.  Like back then, it is not so much the numbers, as the laundry-list of fiscal risks that are only seeing the light of day now. Items that Treasury has disclosed today were absent from the pre-election update; that is clearly not good enough.” 

“This feels a lot like 1990, which led to Ruth Richardson’s ‘mother of all budgets’ the following year. Budget 2024 is going to require Nicola Willis to be made of stern stuff.” 

“While responsibility for the poor state of the books rests with Grant Robertson, Treasury too must accept some responsibility for the lack of transparency.” 

“Under the last Secretary, Treasury became far more politicised and less reliable.  The new Secretary is an improvement, but this dropping of the ball in not being willing to deliver unwelcome news prior to the election suggests she has a long way to go to get Treasury’s former status back.” 

“We have previously called on the Government to conduct a ministerial or government inquiry into Treasury’s performance and public finance transparency. Today’s documents demonstrate the reason it is needed.” 

The Taxpayer’s Union is today welcoming Local Government Minister Simeon Brown’s announcement that the Government will scrap Three Waters in the new year but says there is still work to be done to ensure that its replacement protects property rights, ensures sustainable investment and infrastructure and removes undemocratic co-governance.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“We have spent the better part of two years campaigning to stop Three Waters including a nationwide roadshow, more than 100,000 petition signatures and almost 70,000 submissions to the select committee. The announcement to repeal Three Waters is a welcome one, the Department of Internal Affairs should immediately halt all work relating to Three Waters in order to prevent further wastage of taxpayers’ money.

“But there is still work to be done. The Taxpayers’ Union’s technical advisory group, chaired by Malcolm Alexander has been working hard drafting replacement legislation, which will be presented to the Minister in the near future. There is no point repealing Three Waters if its replacement is just a watered-down version of Labour’s proposal. We encourage the Minister to engage constructively with those in the local government sector and experts, including our Technical Advisory Group.

“While we remain optimistic, we will not rest until we see Three Waters repealed and a workable replacement has been passed through all stages of the house.”

The Taxpayers’ Union is calling on the National Party to front up to consumers who will face 15% higher prices for some services from the likes of Uber, Airbnb and food delivery apps after their app tax U-turn rather than trying to erase all traces of their past opposition to the tax.

Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“National is trying to pull the wool over New Zealanders’ eyes by removing references to the App Tax from their website including their Axe the App Tax microsite and associated press release.

“This new tax will mean that a $300 Airbnb for the weekend could soon cost $345 or a $20 Uber will be pushed up to $23. National must front up and explain why they took the principled position and campaigned against the tax while in opposition but have now u-turned when in Government.

“The size of Government and wasteful spending has grown massively over the past 6 years and there is ample room to find savings rather than needing to impose even more costs on hard-working families. National must recommit to axing the app tax."

The Taxpayers’ Union welcomes the Government’s 100 day plan as a good start but is calling them to add issuing stop work notices for all corporate welfare programmes to the list.

For a start, this should include the EECA and Callaghan Innovation which currently have a large number of applications for funding open and closing soon. Once this money is committed, it will be wasted.

Taxpayers’ Union Campaigns Manager, Connor Molloy, says:

“Funds such as many of those from EECA have the stated goal of decarbonisation and reducing emissions yet don’t make a shred of difference due to the fact that the industries these grants are provided to are already covered by the Emissions Trading Scheme. This means that any reduction in emissions from recipient companies will simply free up credits to be used elsewhere.

“Schemes such as these pile all of the costs onto taxpayers with bureaucrats picking winners for no environmental benefit.

“Corporate welfare schemes such as this are a complete waste of taxpayer money and should be a prime target for a government that claims to care about cutting waste. At the very least, an order should be given that no further funding should be committed to until a review of the effectiveness of these corporate welfare schemes has been conducted.

“We are pleased to see the new Government taking positive steps towards cutting waste and repealing bad law, we hope that the exclusion of cuts to corporate welfare is simply an oversight, not a foreshadowing of another three years of continued cronyism.”

Following revelations that Ministry of Justice officials are concerned that “[m]ovement between roles in government and lobbying agencies can result in misuse of privileged information and unfair access”, the Taxpayers’ Union is reaffirming its commitment to work with any MP, regardless of their party, to end the business of Ministers becoming lobbyists to sell access to and information about the beehive.

Taxpayers’ Union Executive Director, Jordan Williams, said:

“New Zealand is out of step with countries we compare ourselves to. Allowing Ministers to resign from Parliament on one day and begin for-profit lobbying of their colleagues the next is a recipe for corruption and special treatment.

“In recent years, we have seen former Ministers Faafoi, Nash, and now Allan all moving into lobbying roles while their literal Beehive security passes still let them into the building. While no one would suggest they have acted in a corrupt way, the short point is that the revolving door should not be allowed.

“Being a representative in Parliament is a privilege, not a leg-up for politicians to get into the lucrative industry of selling access and information for personal profit. This political revolving door undermines our democratic institutions and must stop.

“If putting a door stop into place means that higher salaries are justified for MPs and Ministers, then so be it. The costs to our democracy, and reduced risk of corruption - whether real or perceived - are so much greater.

“Australia and the UK both require a cooldown period before Government Ministers can move into lobbying roles. We will work with and support any MP to sponsor a member’s bill that implements a cooldown period for Ministers. We’ll even fundraise to commission expert lawyers to do the drafting. This is too important an issue to leave hanging.”

The New Zealand Taxpayers’ Union is calling on New Zealand First to release costings for each of their policies citing fears that they could cost more than Labour’s election spending spree.

When questioned by Jack Tame on TVNZ’s Q + A yesterday about the lack of fiscal detail in NZ First’s policies, Winston Peters said “Well our manifesto comes out later today. Why don’t you wait. We've made sure that were gonna have it out given the huge PREFU gaps and holes there are. We made sure ours stacks up.”

Despite early voting now being open, New Zealand voters are none the wiser as to how much NZ First’s policies will cost taxpayers and what new taxes will be levied to pay for them.

Taxpayers’ Union Head of Campaigns, Callum Purves, said:

“New Zealand First has to date been the least transparent out of all the parties likely to get into Parliament in relation to how much their policies would cost taxpayers.

“In 2017, New Zealand First was campaigning on more spending than any other party and it appears this could be the case again this time around. Unfortunately, the lack of detail in the announced policies make it near impossible for us to independently cost the proposals.

“Included in the policy list is a number of eye-wateringly expensive proposals including $100 million on 'transmission upgrades', moving the Port of Auckland and establishing a naval base, establishing a new Ministry for Energy and a vague promise of corporate welfare in the form of tax incentives.

“This is on top of the policy to remove GST off ‘basic foods’ – a policy that will not only cost significantly more than the $2.6 billion needed for Labour’s GST proposal but will also require an even bigger army of bureaucrats to determine what is and isn’t basic foods.

“Winston Peters is trying to frame his party as one fit for Government yet to date we have had more clarity from Labour, the Greens and Te Pāti Māori. Voters deserve answers now.”

Responding to the Labour Party’s announcement that they intend to subsidise grocery stores to try and enable competition in New Zealand’s grocery sector, Taxpayers’ Union Policy Adviser, James Ross, said:

“There is a lack of competition in New Zealand’s grocery sector, and that does lead to extortionate food prices. But Labour seem to have missed that the reason for this is that the Government keeps propping up the big two supermarket chains.

“There is a massive contradiction in Labour’s story here. Given the enormous profits generated by the big two grocery chains, if there was an opportunity for foreign competition to establish themselves here than they would jump at the chance regardless of whether they received taxpayer-funded handouts. The fact that they haven’t just goes to show that, thanks to the Government interfering in the market, competing with Foodstuffs and Woolworths is not currently possible.

“Overly restrictive resource management under the RMA and restrictions on foreign investment make it nigh-on impossible for competitors to establish themselves in New Zealand. Coupled with Labour’s bizarre ruling that new grocery chains will have to supply their competition at wholesale prices should they be successful, this sends investors running. Just chucking more taxpayer dollars away in corporate welfare isn’t going make these problems go away, and so food prices will stay sky-high.

“Labour must at least be commended for their new-found transparency. Rather than just subsiding grocery store owners by stealth with their GST fiasco, at least with this new policy they’re being open with the public about their plans to line the pockets of grocery chain fat cats.”

Commenting on the updates to ACT’s alternative budget, Taxpayers’ Union Policy Adviser, James Ross, said:
 
“The only true tax cut is a spending cut, and we welcome ACT’s commitment to tackling the damage caused by 6 years of Labour’s dangerous overspending. Public Spending has increased by nearly 70% in just 6 short years, leaving New Zealand with one of the worst budget deficits in the developed world. That damage won’t be fixed overnight.
 
“Whilst no-one wants to see tax cuts more than the Taxpayers’ Union, it is important to recognise that spending needs to come down dramatically first. It was Labour’s economic mismanagement that got us into this mess, and we commend anyone that puts responsible management of our nation’s finances ahead of poorly costed headline-grabbing policies.
 
“ACT’s switch to a three-tier income tax system is still a step in the right direction. However, cash-strapped Kiwis need to see a commitment that ACT will flatten the tax system when public finances allow. And if nothing else, the inflation-driven tax hikes by the back door faced by working people up and down the country must be brought to an end by indexing tax brackets to inflation.
 
“The move towards incentivising housing development through GST-sharing with councils is a much-needed step to drive growth, and ACT should be commended for taking real action to tackle the housing crisis. Kiwis will also be at minimum a few hundred bucks a year better off under this alternative plan. That is nothing to be sniffed at, but cash-strapped Kiwis need to see more.”