The Taxpayers’ Union can reveal that the New Zealand Film Commission spent over $73,000 sending staff to Cannes Film Festival.

The Taxpayers' Union condemns the New Zealand Film Commission's (NZFC) recent excursion to the Cannes Film Festival. An Official Information Act request (OIA) has revealed that the NZFC sent a delegation of four staff members to the festival, costing more than $73,000 in total.

The cost of the plane tickets reached a total of $31,348.01, and the NZFC hosted a multitude of events, including two offsite events and fifteen onsite ones, such as 'producer speed dating', dinners, and lunches, which cost over $24,000. Accommodation expenses amounted to over $17,000.

Oliver Bryan, Investigations Coordinator at the Taxpayers' Union, said, "This is not the first time we have seen such excessive spending from the film commission during their junkets abroad. We were told that staff didn’t stay longer than necessary despite arriving in Cannes five days before the festival's official start and staying until three days after its conclusion. This extended stay raises serious questions about the true purpose of this excursion and whether it was simply a trip at the expense of hardworking taxpayers."

"Ironically, one of the events the NZFC staff attended was a 'best practice exchange' event. However, the lack of tangible results from this trip, coupled with the exorbitant costs borne by taxpayers, exposes the film commission's incapacity to deliver anything other than expensive vagueness. If the NZFC truly wishes to uphold best practices, they must be held accountable for their spending decisions and demonstrate concrete outcomes that benefit both the industry and taxpayers."

Responding to David Parker’s comments that hiking fuel taxes even further is not out of the question for Labour’s much-delayed transport budget, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Fuel taxes hit poor and rural households the hardest, and we are just a few weeks since Labour last hiked fuel taxes by 29 cents per litre. As Kiwi families struggle to get by in a cost-of-living crisis caused by reckless Government overspending, David Parker’s comment that Labour won’t rule out yet another cash grab is simply tone-deaf.

“The National Land Transport Fund is used to subsidize loss-making railways, walkways and cycleways, as well as paying for swanky opening ceremonies where public servants can pat themselves on the back for overseeing vastly over-budget projects. This announcement just goes to show that this Government’s default action is taxing working Kiwis more, when it needs to be cutting out waste.”

The Taxpayers’ Union is calling out James Shaw for greenwashing for wasting $90 million on corporate welfare for Fonterra which will not reduce one gram of New Zealand’s net emissions.

Reacting to the announcement, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“The taxpayer-funded handout to one of the country’s largest companies won’t make a shred of difference to New Zealand’s net emissions which are already governed by the Emissions Trading Scheme. It is nothing more than greenwashing — being seen to be doing something rather than actually doing anything.

“Our correspondence with Minister Shaw in relation to the earlier NZ Steel announcement revealed that the subsidy was not part of a package that also reduced the cap on emissions so the emissions will simply be shifted elsewhere in the economy.

“Over the past five years the Government has wasted billions of dollars on pointless emissions reduction policies that don’t actually reduce emissions. The money generated from the Emissions Trading Scheme should be returned to taxpayers through a carbon dividend rather than dished out by a Minister set on buying the world’s most expensive photo-ops.

“If Minister Shaw wants to be a world leader in climate change, he should be aspiring to create the most efficient, low-cost ETS in the world for other countries to use as a blueprint for their own emissions reduction."

A new report published by the New Zealand Taxpayers’ Union analysing the impacts of a wealth tax reveals that it would be significantly damaging for New Zealand economically and would discourage savings, innovation and entrepreneurial growth.

Using a collection of the world’s leading research in the area of wealth taxes, the report assesses the impact a wealth tax would have on New Zealand using the Green Party’s proposed wealth tax policy as a framework for the analysis.Key findings of the report are that the Green's tax proposals would:

> Tax many ordinary families and capture substantially more people than the 0.7% of New Zealanders claimed by the Green Party.

> Set up a Green tax haven whereby moderately wealthy New Zealanders who are reasonably debt free will put their assets into a trust to avoid the 2.5% wealth tax.

> Create a substantial barrier to growth for small and medium sized businesses.

> Make it harder to start a business by taxing family homes that are kept in a trust for asset protection.

> Impose a substantial tax on farms amounting to a $45,000 tax for the average dairy farm or a $120,000 tax if it is owned by a family trust.

> Reduce the ability for founders of public companies to continue to control and reinvest in those companies.

> Tax the innovation and investment that underwrites wage growth and lead to lower wages.

> Make it less attractive for entrepreneurs to pioneer new technologies in New Zealand.

> Make New Zealand a less attractive location to move for skilled and entrepreneurial individuals living overseas.

Taxpayers’ Union Research Fellow and author of the report, Jim Rose, said:

“It's clear that the Green Party’s proposed tax policies would be economically devastating for New Zealand and would see many of our best and brightest entrepreneurs and innovators discouraged from making our country a better, more prosperous nation.

“Not only will much greater proportion of the population than claimed by the Greens be captured by their proposed wealth tax but it will also tax, and therefore discourage, the innovation, skilled immigration and entrepreneurial flair that grows the economy and makes us all wealthier. In other words, it is not just the rich who suffer from a wealth tax.”

The Taxpayers’ Union can reveal that in the past three years, Pamū Landcorp has paid $2530 in fines on behalf of their employees for animal welfare offences.

The Taxpayers’ Union is shocked this is still occurring having called this out three years ago and is renewing calls for the practice of using taxpayer money to pay fines for individuals who have committed animal welfare offences to be stopped immediately.

Pamū provided information under the Official Information Act revealing the following reimbursements had been made:

> A $500 reimbursement for an animal welfare fine for allowing a ewe to be transported that had an udder with a lesion that was bleeding or discharging. The vet inspecting the animal noted that “the condition would have been present on farm and is a chronic condition. It should have been identified at shearing, or during selection for transport. This condition would have caused pain and discomfort.”

> A $500 reimbursement for an animal welfare fine for allowing a ewe to be transported that had an udder with a lesion that was bleeding or discharging. The MPI inspector noted that the ewe “was found to have a burst unhealed udder. The udder had burst some time ago and had attempted to heal unsuccessfully with raw tissue and discharge still present. These ewes were shorn, and this likely would have been present at shearing. It should also have been found prior to transport and she should not have been selected for transport.”

> A $530 reimbursement for an animal welfare fine for allowing transport of a bobby calf that was not free from showing signs of injury.

> A $500 reimbursement for an animal welfare fine for transporting a cow with an overgrown claw and low body condition (2.5/10) which lead to additional injuries and “would have caused this animal considerable unnecessary pain and distress”. The MPI inspector believed that this condition would have been noticeable on the farm before transport. The injuries sustained by the cow during transport included abrasion injuries across multiple areas of the body, inflammation, bruising, loss of hair and bleeding.

> A $500 reimbursement for permitting a calf to be transported with a navel cord that was red, raw and fleshy and was not fit for transport.

Taxpayers’ Union Deputy Campaigns Manager, Connor Molloy, said:

“The purpose of a fine is to punish those individuals who break the law and act as a deterrent for everyone else. Fines should be paid by the offending individual, not law-abiding taxpayers. We would never expect a government agency, or a private company for that matter, to pay speeding tickets for their employees; the same level of individual responsibility and accountability should apply here too.

“Forcing taxpayers to pay the fine for farmers who have broken the Animal Welfare Act softens the individual responsibility of such behaviour and weakens the deterrent effect that ensures farmers treat their animals with the care they deserve. Occasionally mistakes happen on farm or in transport and it is not noticed until the animal is harmed. This is understandable, but the fine for mistakes and negligence provides a stinging financial reminder of farmers’ duty of care.

“Allowing Pamū Landcorp farmers to get off lightly is unfair on private sector farmers who work hard to maintain world-leading standards of care and it is certainly unfair on the animals who have to suffer as a result. While proclaiming its values on its website as being ‘proud guardians of our land and animals’, Pamū Landcorp is forcing taxpayers to effectively subsidise the small minority of farmers who mistreat their stock.

“Forcing taxpayers to foot the bill for this behaviour is abhorrent and casts a bad light on the vast majority of farmers who treat their animals with the dignity and care they deserve. We call on Pamū to commit to stop paying fines on behalf of the individual offenders immediately."

A copy of the documentation outlining the offences and internal Pamū correspondence in relation to the fines can be viewed here. (Note: The correspondence contains distressing photos of injured animals).

Commenting on today’s Consumer Price Index announcement, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Today’s inflation figures will not come as much consolation for families across New Zealand who are struggling with the cost of living. While the overall rate may have dropped, food price increases and domestic inflation both continue to remain stubbornly high despite the aggressive interest rate hikes by the Reserve Bank.

“The Government’s excessive levels of spending have undoubtedly had a large bearing on the rate of domestic inflation. As the International Monetary Fund indicated last month, the Government needs to rein in its wasteful expenditure and focus new spending only on cyclone and flooding recovery. If the Government really cares about the cost of living, it should stop contributing to the problem and cut back its spending.”

The Taxpayers’ Union can reveal that Waka Kotahi and Auckland Transport have spent $44,380.74 on the opening ceremony for the Puhoi to Warkworth highway. Taxpayers’ Union Campaigns Manager, Callum Purves, commented:
 
“Clearly Waka Kotahi still hasn’t learnt their lesson after last year’s Transmission Gully opening ceremony fiasco. It’s simply outrageous that Waka Kotahi and Auckland Transport think spending just shy of $45,000 on a massive party is anything close to an acceptable use of taxpayers’ hard-earned money.
 
“In the middle of a cost-of-living crisis caused by reckless Government overspending, this Government has just hiked tax on petrol by 29c per litre and road user charges by 56%. This tax grab goes straight into the National Land Transport Fund, which Waka Kotahi clearly thinks is appropriate to use to throw extravagant parties for public servants.
 
“After having been open for less than a month, the highway is already starting to crack up. Is it any wonder our roads are in such a state of disrepair when this is how the Government and public bodies waste taxpayers’ money?”

A breakdown of expenditure can be found here.

The Taxpayers' Union strongly condemns Waka Kotahi's overspending of nearly $4 million on a new office. Despite clear warnings about potential risks and high costs, the agency chose to spend $28.5 million on the new premises, raising serious concerns about fiscal responsibility and the prioritization of taxpayer funds.

Callum Purves, spokesperson for the Taxpayers' Union, commented, “This exorbitant expense equates to an astonishing $25,900 per staff member, with Waka Kotahi choosing the highest cost among the short-listed options. The decision to overlook warnings of higher fit-out costs and potential negative public perception is particularly alarming. Whatever desirable features they wanted, they cannot justify such a significant overspend.

Waka Kotahi has exceeded its initial budget of $24.8 million by a substantial 14.9%. This pattern of lavish spending on staff accommodation while neglecting critical infrastructure is becoming more and more common, all while our country's infrastructure goes to rack and ruin. Taxpayers rightly worry about such mismanagement of funds, as it directly impacts the safety and quality of our infrastructure. Yet the Minister remains silent.”

Ineffective $1 million truancy awareness campaign simply unjustifiable

Commenting on the $1 million advertising campaign to raise awareness about low school attendance, Taxpayers' Union Campaigns Manager, Callum Purves, said:

“Declining attendance rates were receiving media coverage throughout 2022. Kiwis didn't need a $1 million advertising campaign to tell them that New Zealand has a truancy problem.

“Inflation has been high for some time and so is the cost of living. Every dollar the Government spends needs to be justified. Spending such a large amount on a campaign that was not even intended to improve attendance rates is simply unjustifiable.

“Earlier this year the Prime Minister announced funding for new truancy officers, but he might also want to have quiet word with the former Minister of Education, Chris Hipkins, about whether the $1 million wasted on this campaign could have helped start to tackle this problem a lot earlier."

New data from KPMG suggests organised crime will the biggest winner from new measures targeting cash-strapped smokers, warns the New Zealand Taxpayers' Union.

The share of tobacco consumption sourced from New Zealand's black market has increased to 12.1%, up from 9.2% in 2017, according to KMPG's latest regular inquiry into illicit tobacco consumption in New Zealand.

While the total size of the black market has shrunk in kilogram terms, this is in line with wider reductions in the smoking rate as savvy smokers switch to vaping.

"The worrying sign here is that among those Kiwis who continue to smoke, the black market is normalised as a source of affordable durries," says Louis Houlbrooke, the Union's spokesperson for lifestyle economics issues.

"A taxed and regulated pack of Marlboros now costs $43, and the vast majority of that is tax. With smokers being disproportionately lower-income it's little surprise that they're jumping at the opportunity to buy homegrown tobacco leaf or cigarettes smuggled from China and Korea."

"Artificially high legal tobacco prices create massive profit margins for illicit importers and growers of tobacco — profits that can be used to fund further criminal activities."

"The obvious risk is that with an illicit market already thriving, new measures to make legal cigarettes less appealing and proposed crackdowns on vaping products will only fuel illegal activity. We need only look at Australia, where vapes are effectively prohibited and a study estimates a massive 23.5% of tobacco consumption comes from the illicit market."

"Right now, smokers pay more than enough tax to cover associated health system costs. But if Labour follows through with plans to slash nicotine content and availability of legal cigarettes, or if National pursue a signalled vaping crackdown, the tobacco black market will boom, cratering tax revenues and normalising crime."

Disclaimer: 2.1% of the Taxpayers' Union annual income is from membership dues and donations from private industry, which includes contributions from the nicotine, alcohol, sugar, and construction industries. We gratefully accept any legal donations from anyone wishing to support our work, but our policy positions cannot be influenced by donations. For more information on our mission and how we are funded, please visit: www.taxpayers.org.nz/our_mission