The Taxpayers’ Union is calling out Government Greenwashing in its justification of spending at least $182.5 million of taxpayer dollars over the next four years on environmental subsidies that will fail to reduce net emissions. 

Taxpayers’ Union Executive Director, Jordan Williams, said:

“The Government loves to crow about the action it is taking to tackle climate change, but today’s announcement that the Government plans to throw at least another $182.5 million of taxpayer dollars on environmental subsidies will not reduce net carbon emissions by a single gram. 

“Under New Zealand’s Emissions Trading Scheme (ETS), any reduction in carbon emissions in these areas will simply free up carbon credits for other less efficient industries to emit more. The Government should allow the ETS to do its job and ensure that reduce net carbon emissions in the most efficient way possible and at the minimum cost to Kiwis.”

“Every electric car that reduces transport emissions, simply frees up ETS credits for emissions in other areas of the economy. It’s literally undermining the whole purpose of the ETS – to find the most cost efficient ways to meet client targets – for the sake of political expediency.”

“Justifying spending with claims that it ‘reduces emissions’ is dishonest greenwashing. If it was done by a private company, the Commerce Commission would be investigating for deceptive conduct.”

The Taxpayers’ Union has condemned the Government’s announcement that it will increase the trustee tax rate to 39 cents in the dollar to align it with the highest personal income tax rate.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Chris Hipkins’s ‘no new taxes’ pledge lasted about a week with today’s trustee tax rate hike. It’s a broken promise.

”The Government is trying to justify this tax hike by pointing to the most wealthy. But those people can keep money within company structures and pay the 28% company tax rate. In reality this tax grab will hit small business owners who often hold business in trusts for legitimate reasons.” 

Commenting on today’s budget announcement, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“With the exception of rolling out free ECE to two years and dropping prescription co-payments, there is almost nothing that the average taxpayer receives from today, except higher fuel taxes and a promise to increase trustee taxes next year.

“The effects of record high levels of inflation mean that families are paying higher levels of taxation each and every year. Instead of any tax relief in this budget, they get a LED light bulb, and a bus ride for their kids.

“Compared to the half-year fiscal and economic update, the revised Treasury forecasts are alarming. Gross debt is projected to be $21 billion higher by 2027 than estimated just 6 months ago – despite Grant Robertson’s attempts to paint a rosier picture.

“Government is driving inflation even higher. Government is forecast never to return to the size as a proportion of the economy as pre-COVID. It needs to tackle its spending problem, and this budget just doesn’t deliver.”

The Taxpayers’ Union has slammed the Government’s decision to hike fuel taxes from July. The 25 cent reduction in petrol excise (29 cents with GST) and the equivalent reduction in diesel road user charges will be scrapped at the end of June.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Despite all the promises of focussing the cost of living, July’s fuel tax hikes contained in today’s budget will hit Kiwis already struggling with rising inflation. Outside the main cities, most people still rely on their cars to get about on a daily basis. This increase will particularly hit lower income families and New Zealanders living in rural areas – the very people struggling the most with the costs of living.

“If the Government stopped allowing the National Land Transport Fund to subsidize loss-making railway lines, walking and cycle ways, and even the expensive ‘Road to Zero’ advertising campaign, it could maintain fuel taxes at lower levels while still maintaining and investing in our roading network.” 

Reacting to today’s policy announcements from National and the alternative budget from ACT, the Taxpayers’ Union is calling on the Labour Party to copy the best parts of these proposals and show some fiscal restraint.

Taxpayers’ Union Executive Director, Jordan Williams, says:

“We congratulate the opposition parties for putting forward taxpayer-friendly policies and urge Labour to treat these changes as a shopping list of good ideas for fiscal discipline. Just because the opposition announced these policies doesn’t mean they own them.

“Proposals such as linking the pay of public sector chief executives to performance, targeting policies such as the winter energy payment to those most in need and providing ‘taxpayer receipts’ are likely to be politically popular among the electorate and at the same time would deliver better value for money for the taxpayer.

“At a time when the number of managers in the public service is growing at twice the rate of front-line staff, it is more important than ever that we work on improving our public sector productivity rather than throwing more money at the bureaucratic black hole. No party has a monopoly on good ideas so, when one comes up, other parties should adopt them as their own."

The Taxpayers’ Union is calling on Phillip Mills – of Les Mills – to pay back the $4.5 million his company took in wage subsidies before spouting off about how much he wants to, he says, pay more to the Government.

The Taxpayers’ Union has been tipped off by Auckland University Professor Robert MacCulloch that Les Mills New Zealand Ltd claimed a total of $4,510,078.80 in wage subsidies and has not repaid the amount despite many companies and even not-for-profits doing so.

Taxpayers' Union Executive Director Jordan Williams said: “It is a special kind of hypocrisy to tell national media about how you ‘want to pay more' to the Government, but not have your business join all of those who have paid back the wage subsidy."

"Mr Mills is right to point out that money is better spend on quality health and education than lining his own company pockets. That's why those who can afford it have done the right thing and paid back wage subsidies.”

“Actions speak louder than virtue signalling. Talk is cheap. Mr Mills should put his money where his mouth is, or get off his high exercise horse.”

Background: 

On Thursday, Philip Mills was reported in Stuff as one of the people who added their name to the a public letter that begins “We write as people who are frustrated with how much tax we pay. We want to pay more."

Mr Mills is quoted as saying that the current tax system is “broken” and “We’ve been focused too much for too long on paying lower and lower taxes. We need to focus more on having a world-class education system and not having people living in poverty and children coming to school not having enough to eat.” and “Those who can afford it should be paying significantly more taxes.” 

Screenshot from MBIE's wage subsidy online employer database:

The Taxpayers’ Union is today launching a major new campaign to protect NewZealanders from higher building costs, more red tape, no local control and more co-governance that would result from the Government’s proposed replacement to the Resource Management Act.

Taxpayers’ Union Executive Director, Jordan Williams, said:

“We never thought we’d be defending the Resource Management Act but David Parker’s proposed replacement is much worse than the problems it is trying to fix. It replaces NewZealand’s biggest regulatory tax with an even higher one based on co-governance and central planning.

“Undoubtedly, reform of our bureaucratic resource management system is needed but tying productive New Zealanders up in even more red tape will only slow development, increase the costs of housing and doing business, and will make our country less attractive as a place to invest — ultimately this will make our country poorer.

“These proposals along with their ill defined, and often conflicting, ‘system outcomes’ would lead to expensive, drawn out court battles while people try to figure out what any of this even means. Lawyers and consultants are already rubbing their hands.

“Not only will these proposals mean more costs, but with decision-making powers being ripped away from democratically accountable councils and placed in the hands of unelected so-called ‘Regional Planning Committees’, environmental and community outcomes will be worse off too. Local communities, with the right incentives and financing vehicles, are best placed to make the decisions that directly impact them.

“This will be our most important campaign yet, our country’s local democracy and prosperity depend on it."

The Taxpayers’ Union has launched a new website and petition opposing these reforms at: www.handsoffourhomes.nz

Hands off our homes: Stop Central Planning Committees merchandise and roadside banners can be purchased at www.taxpayers.org.nz/shop

The New Zealand Taxpayers’ Union slams spurious claims by the Minister for Climate Change, James Shaw, that a $300 Million increase in New Zealand Green Investment Finance’s (NZGIF) funding will reduce emissions.

Taxpayers’ Union Campaigns Manager, Callum Purves, says:

“Once again, the Government doesn't seem to understand its own Emissions Trading Scheme (ETS). Any emissions reductions that this funding brings about will simply free up carbon credits to be used by other businesses under the ETS. This is a government vanity project that will not reduce net emissions by even a single gram.

“On top of that, this investment is gambling with taxpayers’ money. Private investors will carefully assess the viability of a project before stumping up the cash, which begs the question what NZGIF can bring to the table except risking other people’s money on projects which are likely to be unprofitable?

“We shouldn’t need to keep highlighting the same point every time the Government throws taxpayers’ money at one of its ineffective climate vanity projects. The bank should instead be privatised and the money raised used to pay down debt. A privately-owned green bank would likely do a better job of financing viable green investments."

The New Zealand Taxpayers’ Union questions the Government’s decision to double down on exposing taxpayers to risky development schemes following the announcement that they plan to invest a further $159 million in projects at risk of failure.

Taxpayers’ Union Campaigns Manager, Callum Purves, says:

“We all recognize that the housing shortage is the single biggest factor in Kiwis’ increasing difficulty in getting a foot on the property ladder, and we welcome genuine attempts to try and alleviate this crisis.

“However, making taxpayers liable for propping up the developments that banks deem too risky to fund themselves is a recipe for disaster. The reason that banks won’t fund these projects is because they lack confidence that they can recoup any of their investment, so how can the Government justify being so reckless with hard working New Zealanders' taxes during a cost-of-living crisis?

“If the Government is serious about tackling the housing crisis, it needs to focus on removing barriers to supply, rather than doubling down by putting even more red tape of development with their proposed Resource Management Act replacement.”

The New Zealand Taxpayers’ Union is slamming the Government’s plans to implement a cap on emissions from new buildings - a policy which will drive up house prices and put more pressure on Kiwi families during a cost of living crisis.

Taxpayers’ Union Campaigns Manager, Callum Purves says:

“A cap on construction emissions would unnecessarily drive up construction costs and in turn would result in increased house prices, higher rents and a reduced growth in supply.

“25.9% of renters spend more than 40% of their income on housing, if the Government truly cared about reducing the cost of living, they would focus on removing barriers to supply rather than making it more expensive to build houses.

“Not only will this proposal make people’s lives even tougher, but it won’t even make a shred of difference to the environment. Construction emissions are already governed under New Zealand’s Emissions Trading Scheme so any reduction would simply free up carbon credits to be used to increase emissions in other sectors.