The Taxpayers’ Union is astounded at the failure of Kāinga Ora to deliver for Kiwis with reports of more than 1000 empty new homes sitting empty for four months last year.

Commenting on Kainga Ora’s vacant properties, Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“At a time when tens of thousands of applicants are stuck on the housing register, there is no reason why any new homes that are perfectly ready to be used should not be filled as soon as possible.

“As has been evident for years, many of these vacant properties are only collecting dust, and racking up millions in maintenance costs while they go unused. Kāinga Ora needs to get its act together and start delivering Kiwis with more efficient and timely access to housing.

“It is also clear that wider reform of Kāinga Ora is needed. The Government will never deliver houses as cheaply or efficiently as the private sector so they should instead focus on reducing the barriers to build and rent properties while also helping those with genuine need to find suitable private accomodation."

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.” 

Waitaki District Council has approved the $32 million Network Waitaki Events Centre in Oamaru, despite lacking a sound funding plan.

The Council has pledged $15 million to the project, which when combined with the input of some outsider funding, still leaves a $2.7 million shortfall as well as an additional unfunded $4 million for the second stage of the project.

Commenting on this, Taxpayers’ Union Policy Adviser, James Ross, said:

“Waitaki District Council have now decided to rush headfirst into the Event Centre project with next to no regard for those pesky things called finances. Given their current financial position, this will likely mean borrowing at high interest rates and figuring out the details later.

“The Waitaki Ratepayers & Residents Association have been calling on their council from the beginning to come up with a workable plan that does not involve demands for ratepayers to foot the bill. No one will be shocked to learn that calls to put the back pockets of ratepayers first are falling on deaf ears.

“With 20% of staff on salaries above $100,000 and an annual consultant and contractor bill of over $34 million, rather than lumping ratepayers with this enormous bill in the middle of a cost-of-living crisis the Council must instead cut back on its bureaucratic bloat.”

Figures released show that there are currently 60,000 people who have been waiting for more than four months to be seen for a first appointment with a health specialist. This is up from 36,000 from just last year.

Commenting on this, Taxpayers’ Union Policy Adviser, James Ross, said:

“Te Whatu Ora’s failure to fulfil its core function – to provide urgently needed healthcare to those most in need – is just the latest symptom of the same sickness that has overtaken much of the public sector. Government spending on health has been untargeted and ineffective and the decision to completely restructure the health system during a pandemic seemed reckless at best; now the chickens are coming home to roost.

“Since 2017, spending on health has rocketed by around 80%, but over the same time outcomes have been in freefall. It’s no coincidence that in the same six years, the number of pencil-pushing managers in health, education and social services has increased at nearly twice the rate of frontline staff.

“All this money wasted on bureaucrats could have been spent cutting waiting lists. Instead, Labour’s parting gift to New Zealand has been a failing health system and a wait-list blowout of 60% over just a single year. Timely delivery of vital services must be the top priority.”

Waipā District Council has set the hands of fiscal irresponsibility spinning with the historic town clock refurbishment in Cambridge. Originally budgeted at a modest $450,000, this project has wound up to an astounding $721,000.

Investigations Coordinator at the Taxpayers’ Union, Oliver Bryan, said, “The Council seems to be aiming for a Guinness World Record in money burning. We’re not just talking about tightening a few screws here – this is the Big Ben of budget blunders.

“It would take several ratepayer lifetimes, about 225 years, to cover the cost of this towering mistake. It’s almost as if the Council expects residents to pay a ‘time tax’ spanning centuries, a fiscal legacy that outlasts the very clock they’re attempting to preserve.

“This isn’t just a wake-up call; it’s a siren. It’s high time the Council reset its priorities. This is not just a blow to the budget; it’s a blow to the trust that the community places in the council to manage their rates wisely.

“The Council needs to wind back this project and rethink their approach before Waipā ratepayers find themselves with higher rates and a never-ending debt spiral.”

The Taxpayers’ Union expresses deep concern over revelations that Department of Conservation (DoC) spent $5,159 on retirement gifts for its former director-general, Lou Sanson.

Oliver Bryan, Investigations Coordinator at the Taxpayers’ Union, said, “Whatever happened to the usual whip-round of the staff? The cost of the parting gift is staggering: it's more than a third of what was previously shelled out for a DoC turtle funeral. This clearly shows that the organisation is still imbued with a culture of disrespect for taxpayer money.

“The Department of Conservation's lavish spending on retirement gifts is just the latest in a series of tone-deaf and extravagant expenditures by public agencies across the country. This type of behaviour, which has become all too common in recent years, demonstrates a disturbing lack of regard for the public's money.

“At a time when New Zealanders are facing increased financial hardships and struggling with the rising cost of living, such wastefulness is not just irresponsible, it's an insult to every taxpayer in the country. It's high time this ended and the new Government needs to get a handle on this.”

Responding to the latest Controller of the Auditor General report criticising the decision-making process that led towards $15.9 billion worth of investment projects to be delivered over the pandemic period, Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“It should have been obvious to the then Labour-led Government that rapidly pulling together a bunch of massive infrastructure projects, against advice from officials, was a recipe for disaster. Sadly, it seems that the ministers of the day were more concerned with the glamour of an announcement than they were with ensuring that they would actually receive value-for-money from their investment.

“We could see from the outset that without focused timeframes and transparency measures, the fund was always doomed to fail. Now, more than 3 years later, many of the various projects have blown way over budget and are either still ongoing, haven’t been started, or have been ditched altogether. The dismal rollout of this fund only highlights the outrageous disrespect the previous Government had for taxpayer funds.

“We welcome the Auditor General’s recommendation for Treasury to provide more regular updating on the delivery of major capital spending projects. Given the complete failure from the previous Government to deliver on their infrastructure promises, it is critical that taxpayers can be sure their money is being spent effectively and responsibly going forward.”

The Taxpayers’ Union is slamming today’s announcement from Judith Collins that the Government is doling out more corporate welfare via Callaghan Innovation instead of cutting waste and delivering tax relief to hard-working New Zealanders.Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“Any hope that this Government would be one for the taxpayer rather than caving in to crony capitalism and its special interests is fast going out the window.

“Grants like these simply pick winners by gambling with taxpayer money rather than allowing the market to determine what businesses should succeed based on their ability to provide a product people want at a price people are willing to pay.

“Arguments that we need more taxes, such as the app tax, ring hollow when millions of dollars are frittered away giving millions in handouts to those who need it least. Wasteful spending like this simply fuels the cost-of-government crisis, driving up inflation for the struggling taxpayer.

“Judith Collins and Christopher Luxon have some serious explaining to do – are they going to be a government that supports free markets and private enterprise or one that puts a select few special interests ahead of the taxpayer? We urge the ACT Party to stick with their historically principled stance of opposing corporate welfare and push from inside Cabinet for this kind of buffoonery to come to an end.”

Responding to Hamilton City Council’s decision to spend $700,000 moving and re-developing a bus stop due to its location outside an adult toy store, Taxpayers’ Union Campaigns Manager, Connor Molloy, said:

“Only a couple of weeks ago, Hamilton City Council advised that they were looking to make savings to slash debt and finally balance the books. If the Council was actually serious about righting the ship, they wouldn’t spend a moment considering this outlandish upgrade. Sadly, it’s clear that Hamilton City’s councillors are completely unwilling to do anything more than pay lip service to fiscal restraint.

“While the relocation of the bus stop may be justified given the backlash from where it is currently situated, the problems were easily foreseeable and it should never have been built there in the first place. The Council could quite easily repaint a few road markings and dig a new hole for the sign at next to no extra cost. Instead, Hamilton ratepayers are being forced to needlessly funnel money into what has turned out to be a laughably costly makeover.

“Even with cuts to maintenance and cleaning budgets, the mayor has signalled that an enormous 25.5% rate hike will still be required to whip Hamilton’s finances back into shape. It’s abundantly clear from vanity projects like these that there is still plenty of waste to axe first before the Council starts hacking away at core services.”

The Taxpayers' Union is dismayed by the Ministry of Foreign Affairs and Trade's (MFAT) outrageous expenditure on its delegation to the COP 27 climate conference. New information revealed under the Official Information Act shows that the total travel and accommodation cost to the taxpayer was an eye-watering $201,496.59. The kicker? All New Zealand-based staff flew business class.
 
Oliver Bryan, Investigations Coordinator at the Taxpayers' Union, said, "This jaw-dropping cost is an affront to New Zealand taxpayers. Spending over $20,000 per person for ten staff members to attend a single climate conference, with the added irony of opting for business class flights, epitomizes extravagance. The accommodation costs for each member ranged between $10,762.95 and $12,781. It's enough to make one wonder whether it was really about climate or just another public sector junket.

"But of course the environment is what matters when discussing COP. The hypocrisy of flying ten staff members internationally to attend a conference designed to combat climate change is laughable. International travel is the only mode of transport not included in our Emissions Trading Scheme, so flights like these simply add to global net emissions.
 
"This expensive escapade not only reeks of financial recklessness but also undermines New Zealand's reputation in the fight against climate change. The public deserves better than this flagrant misuse of taxpayer money and woeful lack of environmental consideration. We will be watching to see if this year's COP takes as big a toll on the public purse."