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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.”
Exclusively for our supporters like you, here are the results of May's Taxpayers’ Union – Curia Poll:
National drops one point this month to be on 36% but retakes the lead over Labour which falls back three points to 34%. ACT is up three to 13% while the Greens are unchanged on 7%.
Of the smaller parties, the Māori Party is on 3.7% (+0.8 points), NZ First on 2.6% (nc), TOP on 1.7% (+0.9 points), New Conservatives on 1.6% (-0.1 points), and Democracy NZ 0.3% (-1.3 points).’
Here is how these results would translate to seats in the 120 seat Parliament, assuming all electorate seats are held:
Labour is down four seats on last month to 44 while National is down one seat to 46. ACT is up four seats to 16 while the Greens are unchanged on 9 seats. The Māori Party is up one seat to 5.
On these numbers, the Centre-Right bloc would be in a position to form government with a combined total of 62 seats, which is up three on last month. The combined total for the Centre Left drops four seats to 53.
Chris Hipkins's net favourability score of +22% is six points lower than last month and down 11 points on his March peak of +33%.
Christopher Luxon’s score of -7% (-1 point) is at its lowest level since he became National Party leader in November 2021 while David Seymour is on -11% (-5 points).
Chris Hipkins has a slight positive net favourability rating with National voters +7% while Christopher Luxon has a score of -56% with Labour voters.
In another worrying sign for Christopher Luxon, among undecided voters, Chris Hipkins has a positive net favourability of +30% while Christopher Luxon is on -26%. David Seymour is on -32%.
They say ‘less is more’, but the Human Rights Commission (HRC) took it a bit too literally when its website redesign amounted to little more than a change of colour scheme and a new tool to 'help' New Zealanders appreciate the HRC and its work. Our Investigations Co-ordinator, Ollie Bryan, revealed earlier this week that HRC has spent $417,962 on the new site.
One of the few changes is a new tab on their home page called ‘Take a Moment’. We pointed out that all this button did was take you to a plain blue screen and a pulsing HRC logo... and nothing else.
Soon after our story was covered in the media, the HRC quickly updated this page. The page now includes relaxing music, soothing bird song and calming animations. I'm not sure they quite understood the point we were making...
With so many pressing needs in our society – the cost of living, healthcare and education in crisis, and infrastructure falling apart – these sort of vanity projects really make us wonder whether the Human Rights Commission itself needs to 'take a moment'...
With high inflation, bracket creep means that workers' taxes are being hiked without a single vote having been cast in Parliament. If politicians want more of our money, they should have to make the case to Parliament – and the public.
There is a simply solution: Linking the thresholds at which different rates of income tax kick in to inflation.
The Common Room NZ is an excellent resource for those interested in debate, politics, and public policy. This week they feature Jordan who explains the inflation tax, and how to fix it.
A Taxpayers' Union – Curia Poll last month showed that 65% of New Zealanders favoured automatically increasing income tax thresholds in line with inflation as is already the case for welfare benefits. 19% of those polled were against while 17% were unsure.
Many countries already adjust tax brackets for inflation and it is not a difficult policy to implement. Here in New Zealand, there are already inflation adjustments for welfare benefits and superannuation payments. Why should working New Zealanders be punished with stealthy tax hikes when they are not actually earning more?
You can watch Jordan's video here.
Last year, the New Zealand Film Commission sent two employees to Hollywood to attend the Academy Awards in Hollywood. Despite the ceremony only lasting a few hours, the two employees managed to bag themselves a ten-day extended trip. Their extravagant jaunt cost taxpayers like you a staggering $58,000 including more than $5,000 on wine at one event and $1,223 on spirits, beer, wine, and bar snacks at another.
Well, not this year!
It seems our pointing out this waste of taxpayer dollars put the Film Commission off from sending a representative again. A recent Official Information Act response confirmed that your hard-earned money was not squandered on a lavish Hollywood trip this year.
The Taxpayers' Union will continue to hold government departments and agencies like the Film Commission to account on their spending. We’ll be keeping a close eye on whether any New Zealand public servants rock up to the Cannes Film Festival later in the year...
Thank you for your support.
Yours aye,
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After almost six months’ worth of excuses, transfers and extensions on an Official Information Act request sent back in November, your humble Taxpayers' Union has revealed that taxpayers and Otago ratepayers have forked out more than $2.76 million and employed over 26,000 hours of work to 'destroy' (that’s the term the bureaucrats use) just… 18 wallabies! That's a kill cost of $153,000 per wallaby.
This was just one of the ‘Jobs for Nature’ projects funded by the COVID slush fund. Jobs for Nature was allocated $1.2 billion – that's $614 for every kiwi household – as a ‘make work’ scheme when the Government feared we would see mass job losses as a result of the pandemic.
Despite record-low unemployment and an economy overcooked by Government spending, the fund has continued to dish out taxpayer money to ineffective ‘conservation’ projects at an average cost of around $200,000 per 'nature job'.
There is still $167 million yet to be spent: We say this should stop.
Jordan spoke about this wasteful spending with Newstalk ZB’s Heather Du Plessis-Allan.
The story was also covered in the Otago Daily Times and Stuff’s Dominion Post.
John Walsh of Biosecurity New Zealand (the government agency responsible for this project) defended the spending arguing “it’s not wasted money”. Walsh was quoted in Stuff newspapers as saying the kill count no way represented “all the wallabies killed by the programme” and due to wallabies’ nocturnal nature and the remote landscapes, aerial drops were often the best method of killing.
We called out these misleading comments pointing to the official information response provided by his agency that showed that no aerial drops were actually used in Otago...
It is clear that this project, alongside many others supported through the Jobs for Nature fund, have no ambition in delivering meaningful outcomes for New Zealand's environment on a restrained budget.
This is just our second investigation into this enormous fund. This is just the tip of the iceberg for a much greater raft of unnecessary waste...
Writing in the New Zealand Herald, I looked at the system of "co-government" in Northern Ireland and considered the parallels with some of the recent proposals here in New Zealand. Three Waters, the proposed Resource Management Act replacement, and the Government's so-called 'Review into the Future for Local Government' all reserve places on governance bodies for unelected mana whenua representatives.
There are two major problems with co-government models. First, is the creation of veto power. Where one community can block a proposal – even if it has majority support – simply because it disagrees with it. This veto power means that Northern Ireland is currently without a government and it is almost impossible to get anything done.
Secondly, there is the problem of disconnecting decision making from democratic accountability. By reserving spaces on governing bodies for certain groups, it means that, however they might vote in elections, people are not always able to effect meaningful change as the people making the decisions remain the same no matter how much voters disagree with their policies.
The lesson from Northern Ireland is, however well-intentioned, co-government rarely works in practice. It can bring government to a standstill, undermines democratic accountability, and often exacerbates the divisions it is designed to heal. If New Zealand wants to avoid similar paralysis, it should think twice before embarking on this path.
You can read my full piece over on the NZ Herald's website here.
A Taxpayers’ Union investigation revealed that several councils are forking out millions of ratepayer dollars to subsidise a private airline and the wealthy individuals using it.
Across Kapiti Coast, Whakatane and Whanganui, ratepayers have been forced to foot the bill for more than $2 million in corporate welfare – benefiting only a tiny number of ratepayers who use the services. Since 2018, Air Chathams has been given almost $1 million dollars by Kāpiti Coast District Council along with a $500,000 interest-free loan. Whanganui and Whakatane district councils also coughed up hundreds of thousands of dollars in loans bringing the total value of welfare to more than $2 million.
Kāpiti Coast airport would need to see a 1,500 per cent increase in passengers in order for it to be financially viable, something even its own Chief Executive recognised.
In a blog post this week, one of our young interns, Alex Murphy, criticised the Council's decision to fund these unsustainable routes. You can read the full post here.
Like many, we've been following the events in Gore where the country's youngest Mayor has had a 'relationship breakdown' with the Council's CEO.
While it is difficult to know exactly what is going on at the Council, we've been astonished by the willingness of the CEO – an unelected bureaucrat – to air his dirty laundry in public by speaking to multiple media organizations. The role of public servants is to serve the public by implementing the policies of their democratically elected representatives – not obstruct them and then bad mouth them in public.
Newsroom have just published a good summary of events and picked up my comments:
More power to the people
Taxpayers’ Union Campaign Manager Callum Purves says the Taxpayers’ Union wants to see an option of recall elections introduced so that, if people are unhappy with the performance of a mayor or councillors that there is a mechanism by which they can resolve it without having to look at something like commissioners or some external influence.
And if conflict between a council chief executive or local body politician is unable to be resolved the Taxpayers’ Union is quite clear who should resign.
“Ultimately in a democracy if there is also a conflict between elected representative and officials, so in this case we have a conflict between the mayor and the chief executive, that we are strongly of the view that the elected representative is the one that stays if there is a choice,” says Purves.
This week on Taxpayer Talk, I sit down with ACT Party MP, Simon Court, to discuss the recent Three Waters rebrand, the proposed resource management reforms and what ACT is proposing to solve New Zealand's significant infrastructure and planning problems.
Simon Court is ACT's spokesperson for infrastructure, the environment and local government and has been leading their response to the contentious Three Waters and RMA reforms. Prior to becoming an MP, Simon was a civil and environmental engineer working both in the private sector and for local government. Simon believes that local control, strong private property rights and the right incentives for councils to make good decisions will be what leads to solving some of our biggest problems going forward.
Later in the podcast, for our War on Waste segment, Taxpayers’ Union Deputy Campaigns Manager, Connor Molloy, reveals a 19-month long investigation into the Government’s decision to give millions of taxpayer dollars to a gang-affiliated meth rehabilitation program and the bureaucratic process of simply getting straight answers from officials.
Listen to the episode | Apple | Spotify | Google Podcasts | iHeart Radio
We’re proud to be a truly people-powered organisation, and it will only be through the generosity of thousands of supporters like you chipping in what you can that we’ll be able to keep up our work promoting our mission of Lower Taxes, Less Waste, and More Accountability.
If you can, please click the button below to make a donation today so we can keep growing our movement, and fighting for a better deal from Wellington (and town halls!).
Thank you for your support.
Yours aye,
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Media coverage:
Newstalk ZB Midday Edition: 04 April 2023 – Lobbying Review (02:05)
NZ Herald Bryce Ewards: Victory for transparency in lobbying reforms
The Northern Advocate Future of Kerikeri’s Turner Centre up in air as council mulls ownership
Stuff Air Chathams received more than $1 million from Kāpiti Coast council
NZ Herald Māori holds balance of power in new poll
The Time Online NEW POLL: Māori Party holds the balance of power
NZ City Another poll points to Te Pati Maori holding the keys to Parliament at this year's election
Te Ao Māori News Te Pāti Māori 'kingmakers' in latest political poll
Newstalk ZB Morning Edition: 09 April 2023 – New Poll (00:38)
Newstalk ZB "We're very clear on our priorities": Deputy PM on Labour's plan for re-election
Newstalk ZB "We've got a fantastic future ahead of us": National's Chris Luxon shares six-month plan for election
Newstalk ZB Politics Central: Will staff misconduct derail Chris Hipkins' chances for re-election? (15:40)
Waatea News Te Pāti Māori Kingmakers must have immediate bottom lines for every New Zealander
Newstalk ZB Auckland Transport's new CEO plans to increase public transport use by 20 percent
The Spinoff The edge of a knife, six months to voting day
The Working Group with Shane Te Pou, Matthew Hooton & Damien Grant
NZ Herald A lesson in co-governance from Northern Ireland – Callum Purves
Kapiti Observer Revamped Three Waters to create 10 water management entities in an effort to give local governments more influence over massive infrastructure upgrades
NZ Herald Frontline police told to ‘consider necessity’ of bail arrests as NZ’s largest prison nears capacity
Q+A “Nobody died because of lack of empathy”: Auckland mayor Wayne Brown (18:44)
Newstalk ZB Taxpayers' Union Executive Director 'astounded' by $2.7 million cost to eradicate 18 wallabies
Stuff Govt officials stand by $2.76m wallaby spend in Otago for 18 kills - 'It's not wasted money'
Otago Daily Times MPI defends $2.76m cost of Otago wallaby control
Stuff Ruth Richardson: The taxation problem I should have fixed 33 years ago
Wairarapa Times-Age Carterton’s rates are on the rise
Newsroom Gore council war could outlast inquiry
Newsroom Kawerau leads small councils’ fight against new amalgamations
The Taxpayers’ Union has revealed that several councils have forked out millions of ratepayer dollars to subsidise a private airline and the wealthy individuals using it.
Across Kāpiti Coast, Whakatāne, and Whanganui, ratepayers have footed the bill for over $2 million in corporate (and middle-class) welfare to maintain regular flight services to Auckland. From 2018 to date, KCDC have gifted almost $1.5 million dollars in grants and interest-free loans to Air Chathams. Accompanied with hundreds of thousands in loans splurged by Whanganui and Whakatāne district councils on their routes, the total value of welfare is brought to more than $2 million.
If these routes were financially viable, and demand was plentiful, airlines would pick them up without the need for council subsidies. Unfortunately, there clearly is not enough demand to justify continuing with these services. Documents obtained by the Taxpayers’ Union under the LGOIMA indicate that Kāpiti Coast District Council believed the service would become profitable after a few years, but would run at a loss initially. If this really was the case, established airlines should be able to access their loans privately, rather than exposing ratepayers to the risk of default.
Prior to the Air Chathams takeover, Air New Zealand operated all three of these services. Due to financial unviability, however, one by one the routes were cancelled. That same despair was shared by Air Chathams themselves, who recognised the numbers didn’t stack up. However, when presented with the option of a million dollars in free money by seemingly economically illiterate councillors, the decision to continue the service was an offer too attractive to refuse.
With alternative airports nearby, flyers were ‘voting with their feet’ and opting to travel to other airports instead. Whanganui residents, for example, were pivoting towards Palmerston North as the more attractive alternative. There’s good reason for the change in preference too. Rotorua, Tauranga, Palmerston North and Wellington airports are all under an hour away from at least one of the three airports in question. In general, they have a greater range of flight times available and, for the most part, far cheaper prices. Wellington’s fares to Auckland are, at times, only a third of Kāpiti's.
*Air Chathams takes over Kāpiti Coast's Auckland Service*
The Kāpiti Coast Council has claimed there is strong public support for the subsidies. This, however, is based on a series of out of date analyses with flawed methodology. In 2018, they commissioned a survey to gauge public support for the airport, but nowhere did the survey mention ratepayer funding. Despite respondents agreeing with the statement, “Kāpiti Coast Airport should work to ensure frequent passenger services to popular destinations around New Zealand are provided to and from the airport”, the question neglected to ask respondents' positions on ratepayer funding of such a service and therefore does not provide a true refection of what the community actually feels. What’s more, the methodology states that any individual who had not flown out of any of the airports in the area did not qualify for the survey. That is like claiming the whole community wants a new racecourse when you only surveyed the jockeys.
Even the airport’s CEO recognised that the airport was simply not viable. He points out that the airport needs 400,000 people flying a year to be worthwhile — currently there are 25000.
What is more is that, regardless of how cost-ineffective the provision of these services is, there remains a striking contradiction at play with the Councils’ climate change initiatives. Kāpiti Coast for example, crows about their climate change approach, acknowledging the importance of reducing their carbon footprint wherever possible. Whakātane and Whanganui are also strong advocates. Yet, they are all more than happy to subsidise gas guzzling aircrafts which, consistently, have been running on reduced passenger numbers.
Of course, due to the waterbed effect, emissions in any one sector (agriculture excluded) have no impact on New Zealand's net emissions, given total net carbon emissions are capped by the Emissions Trading Scheme. However, the fact that the Councils' endorsement of a carbon-emitting travel option contradicts their own (albiet ill-informed) values suggests they are incapable of holding a coherent position on their environmental impacts.
This is, simply, a regressive allocation of ratepayer funds. One where the exorbitant cost on lower-income ratepayers is used to benefit a small selection of wealthy businesspeople. These subsidies fail the litmus test of good spending decisions. They are regressive, inefficient and ultimately will just prolong the inevitable closure of this failing airport.
The New Zealand Taxpayers’ Union can reveal that taxpayers and Otago Regional Council ratepayers have forked out $2.76 million and more than 26,000 hours of work for a wallaby control programme that killed just 18 wallabies.
The Otago component of the National Wallaby Eradication Programme administered by Biosecurity New Zealand cost an average of $153,422.72 per wallaby “destroyed” (terminology used by officials) and averaged 1,459 hours of human labour per kill. $341,894 was spent on aerial shooting, $34,089 on ground shooting, $71,028 on ground toxin and a staggering $2.3 million on surveillance.
By comparison, in Canterbury the cost per wallaby destroyed was $763.57 and just under 5 hours of human labour.
Taxpayers’ Union Executive Director, Jordan Williams, says:
“This is a shocking waste of taxpayer money. It would have been cheaper to charter a private jet for each of these wallabies to send them back to Australia.
“We warned that the $1.2 billion Jobs for Nature fund would be another slush fund with unmonitored, high cost, low-value spending. Unfortunately we have been vindicated.
“The Jobs for Nature scheme should have been scrapped as soon as it became clear that country was not going to head into a period of widespread unemployment.
“Taxpayers are not getting bang for buck with the programme and we once again are calling for the Jobs for Nature programme to be scrapped before a further $200 million is wasted."
The full Official Information Act response is available here.
While the Government has denied for years that Wellington's 'head offices' are getting bloated, your humble Taxpayers' Union has exposed that public sector managers have been growing at nearly twice the rate of frontline workers since the current Government came to power.
Since 2017, the frontline workforce for social services, health, and education has increased by 24.6% with nurse numbers up only 18.3% while doctors are up only 19.2%. In the same period, however, the number of managers rocketed up by a staggering 43.4%. Who exactly are these people managing?
In case you missed it, Mike Hosking highlighted this huge discrepancy and also grilled Minister Michael Wood about what is going on.
The Government crows about its significant 'investment' in social services, health, and education. In reality, the Government is taxing households more and more to spend on bureaucratic jobs for Wellington’s managerial class that provide little value for the taxpayer.
They can't blame the growth in the public sector during COVID for this one: The trend has been clear since 2017. While the focus on the exorbitant consultant bill in the past few weeks is welcome, politicians also need to take a closer look at our bloated public sector and significantly cut back on unnecessary managerial positions.
This week the Ministry for the Environment announced a review into New Zealand's Emissions Trading Scheme (ETS). The review will consider how the ETS should be changed to reflect the Government's priority of reducing gross carbon emissions over net emissions.
You will recall that the ETS works by setting a cap on the total amount of net carbon emissions across New Zealand each year. Emitters, such as fuel companies, or electricity suppliers, buy 'units' in an auction that allows them to emit a unit of carbon (or equivalent) and the amount they pay is reflected in the price you pay for goods and services. The cap then reduces over time, the market price changes, and overall emissions are brought down.
We prefer this system over politicians trying to 'pick winners' and inject subsidies into 'emissions reduction', as the market tends to find the most efficient and cost effective way for New Zealand to achieve its international obligations. Those sectors that can reduce emissions more quickly and cheaply can sell units to those sectors who might find it more difficult. The system also allows companies to offset their emissions through activities that take carbon out of the atmosphere.
Sadly though, politicians cannot help tinkering with the system because it does not fit with the Government's ideology of how climate change should be addressed. For example, it wants to see a rapid shift away from cars to public transport, walking, cycling and electric cars.
But this approach is illogical and ill-informed. While it might make the Government look like it's doing something, it doesn't actually tackle climate change as it doesn't reduce net emissions – less transport emissions simply means more units are available under the ETS to make it cheaper for other sectors to emit. This is called the 'waterbed effect'.
If the Government is really serious about protecting the planet, it should let the ETS get on and do its job.
Last week, we published a new report by our Research Fellow and Wellington economist, Jim Rose, on Auckland’s City Rail Link. The City Rail Link: A Great Big Sucking Sound for Taxpayer and Auckland Ratepayer Dollars is the first in-depth analysis of the bad decision-making that led to a 61% cost blowout.
The report argues that key decisions made by the Government and Auckland Council were based on a flawed business case. A combination of factors such as the increase in costs, the failure to include $6.7 billion in required upgrades to the existing rail network, and the 30-40% drop off in rail passengers post-COVID means that the costs of this project now significantly outweigh its benefits.
Just a few weeks ago, it was revealed that the project's cost had gone up by a further $1 billion. We sent a short briefing paper of the report's key findings to the Auckland mayor and councillors ahead of their meeting to discuss the increase in costs. Despite the public interest, and alarming numbers, the Council decided to hold the meeting behind closed doors so ratepayers are none the wiser as to what was discussed or decided.
With the announcement this week of plans to "bring forward" a second Auckland Harbour crossing, the Government and Auckland Council need to learn serious lessons from this project's failings – we cannot afford the same mistakes to be made. The planners at Auckland Transport who dreamt up the City Rail Link shouldn’t be let anywhere near the public purse again.
This week, Green MP Eugenie Sage who chairs the Environment Select Committee raised concerns about the Government's plans to railroad through radical changes to the Resource Management Act before October's election. She rightly said that the bill will require lots of changes and that there is too much work to do before the election.
Despite now losing the support of the Greens, David Parker is still planning to plough on. He even went as far to say "I trust my own political instincts here." That's a rather bold statement for the man who proposed changes to taxation on KiwiSaver fees only to U-turn within the space of 24 hours.
But Labour still has a majority in Parliament and can ram things through Parliament if it wants to. That's why it's important that opposition parties pledge to repeal these bills should they become law. While ACT has set out a comprehensive alternative to the RMA, National has hinted that if Labour manages to get the reforms through before the election, it may seek to amend rather than repeal the legislation. We say this isn't good enough.
Stay tuned for the launch of our campaign against these reforms...
Thank you for your support.
Yours aye,
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Media coverage:
NZ Herald Cost-of-living moves poorly targeted, says report
Newstalk ZB Jordan Williams: Taxpayer's Union Executive Director says Auckland Transport is focusing on the wrong things
InfraNews Call for independent review into Auckland supercity amalgamation
Newstalk ZB THE RE-WRAP: Just the Facts, Ma'am (09:04)
Newstalk ZB Pollies: MPs Mark Mitchell and Michael Wood on National polling, crime and Police (08:26)
Newstalk ZB RMA war heading towards final battle
Democracy Project Bryce Edwards: The Beehive’s revolving door and corporate mateship
Interest.co.nz Government review of the Emissions Trading Scheme will look for ways to incentivise more reductions and less carbon offsets
Newstalk ZB Heather du Plessis-Allan: Auckland Council booting Local Government NZ is a warning to Kieran McAnulty
A new report published by the New Zealand Taxpayers’ Union exposes the bad decision-making that led to a 61% cost blowout in Auckland’s City Rail Link and shows that the costs of the project now significantly outweigh any benefits.
‘The City Rail Link: A Great Big Sucking Sound for Taxpayer and Auckland Ratepayer Dollars’ provides the first in-depth analysis of cost overruns and benefit shortfalls in the Auckland City Rail Link (CRL). The report’s author, economist Jim Rose, argues that key decisions made first by the Government and Auckland Council were premised on a flawed business case.
As of December 2022, total costs for the CRL project were estimated to be $5.5 billion, 61% higher than the original cost estimate. While project managers blame COVID-19 for this big cost over-run, the evidence suggests that the project should never have gone ahead.
Key findings of the report are:
Taxpayers’ Union Campaigns Manager, Callum Purves, said:
“The City Rail Link will go down in history as a monument to the sunken costs fallacy as we continue to throw good money after bad. It is clear that the benefits of this project are now more likely than not to be outweighed by the costs of the project that have been allowed to spiral out of control.
“The planners at Auckland Transport who dreamt up this project shouldn’t be let anywhere near the public purse again. If there is a silver-lining from this, it’s that Cabinet ministers and Auckland councillors might think twice before trusting the advice they get from Auckland Transport in the future.”
Read morePublic sector managers growing at twice the rate of frontline workers
Figures unearthed by the New Zealand Taxpayers’ Union reveal that the growth in public sector managers is almost twice that of frontline social, health and education workers.
Since 2017, the frontline workforce for social services, health and education has increased by 24.6% compared with a staggering 43.4% increase in managers. The number of nurses has only increased by 18.3% in the same period while the number of doctors went up 19.2%.
Over the past year, the situation has been even worse with managers increasing by 7.1% while frontline workers fell 3.5%
Taxpayers Union Campaigns Manager, Callum Purves, said:
“With the number of managers growing at almost twice the rate of frontline workers, we have to question whom exactly these people are managing.
“The Government crows about its significant investment in social services, health and education, but it is instead taxing billions of dollars from hardworking New Zealanders to spend on bureaucratic jobs for Wellington’s managerial class that provide little value for the taxpayer.
“While the focus on the exorbitant consultant bill by the major parties in recent weeks has been welcome, politicians also need to take a closer look at the bloated public sector and pledge to significantly cut back on managerial positions.”
The Taxpayers’ Union has slammed the revelation that government agencies and State Owned Enterprises are spending hundreds of thousands of taxpayers’ dollars on lobbying firms as revealed by Radio NZ this morning.
Taxpayers’ Union Campaigns Manager, Callum Purves, said:
“Taxpayers’ money should not be used to pay for sock puppets to lobby the government on behalf of government agencies.
“SOEs, and Government agencies already have special access to decision makers. Paying the well connected, insiders and lobby firms doesn’t offer value for the public – nearly always they are serving the interests of the agencies and their bosses.
“While media commentary is often on the apparent need for a register of lobbyists, that doesn’t fully address the problem. It is very clear that former MPs, Ministers, and Parliamentary staffers are profiting from their connections. New Zealand is unusual in that there are no controls on regulators, government staffers or MPs from leaving their jobs and going straight into lobbying. That is where New Zealand’s law needs to catch up.”
Last week, we blew the whistle on the Government's planning reforms, which seek to replace the awful Resource Management Act with something even worse. It takes all the worst elements of Three Waters – like seizing powers from councils and introducing unelected decision makers – and applies them to your house, your business or your farm, but on a much bigger scale.
Like many, when the 891 pages of legislation were published, we were scratching our heads thinking 'this can't possibly be right'. What David Parker has proposed is so complicated and so convoluted, it could only have been designed by bureaucrats in Wellington.
Below, we sketch out what the new Regional Planning Committee might look like using Canterbury as an example.
But because the bill leaves so much to negotiation between councils, iwi and the minister, it is difficult to know exactly where things will end up. The likely answer is in the courts.
But the courts aren't too happy either. In a very unusual move, the Chief Justice made a submission on the Natural and Built Environment Bill. She warned that many of the provisions contained within the proposed legislation were things that were likely to be challenged in the courts. This means that the true implications of David Parker's bills are very uncertain and these court battles will be expensive.
In an even more staggering intervention, however, the Chief Justice raised concerns about the role of the proposed new National Māori Entity. She said that the bill as currently drafted includes the Environment Court as an entity whose decisions would be independently monitored by the National Māori Entity and would be required to respond to their reports.
The Chief Justice said that such a set up "would be inconsistent with New Zealand’s constitutional arrangements" and that "Court decisions are appropriately challenged by way of appeal, not by way of review by a statutory entity". She was so surprised by this that she said that the Supreme Court "assume[d] this is an error in drafting or an oversight."
This is bigger than Three Waters but so many people still don't know about it. In the coming weeks, we will be launching our campaign to put a stop to these radical reforms.
Councils often struggle to pay for essential infrastructure in our local communities such as roads and water pipes. While many don't help by funding vanity projects and white elephants, one of the biggest drivers of this problem is that when new developments are built, almost all of the tax revenue generated goes straight to central government in Wellington.
This means local councils are often reluctant to support development, such as new housing or suburbs. But the solution is simple: Let some of the taxes collected from new houses and businesses stay in the communities where they are generated. This would ensure that the money would be directed exactly to where new infrastructure is needed and would empower councils to make sensible decisions about local development.
This is not a new idea and has been promoted by our friends at the New Zealand Initiative (a Wellington-based think tank) for many years. Now it seems the idea has widespread public support. In this month's Taxpayers' Union – Curia Poll, our pollsters asked a representative sample of Kiwi voters if they supported such a proposal and an overwhelming 70% were in favour while just 15% were opposed and 15% were unsure.
ACT deputy lead and housing spokesperson, Brooke van Velden has been championing this idea in Parliament for some time and has tabled the Housing Infrastructure (GST-sharing) Bill that would give councils half of the GST raised on new houses in their area. National and the Greens have already pledged to support it at first reading, but it will need Labour votes to progress any further.
We say it's time for Wellington to stop their development money grab and urge the Government to support this bill that is desperately needed to improve local infrastructure.
We always enjoy getting outside the Wellington bubble and meeting our supporters. Speaking to people across New Zealand just highlights how detached the public service machine is from the concerns and priorities of hard working Kiwis.
For the past couple of days we have been at the Central District Field Days in Feilding and it has been great to meet with so many of you and hear your thoughts on Three Waters and the Resource Management Act reforms. The event continues until 4 p.m. today so if you are in the area, do pop by and say hello.
Later this month, we will be at the South Island Agricultural Field Days in Kirwee from Wednesday 29th to Friday, 31st March. If you are in Canterbury, we would love to see you there.
This week, Wētā FX won an Oscar at the Academy Awards for their work on Avatar: The Way of Water. It is great to see a Kiwi firm having such great success on the international stage, but that achievement is somewhat tainted by the millions of dollars in taxpayer subsidies that the Avatar franchise has received.
Taxpayers like you have been made to fork out over $140 million in subsidies for the Avatar sequels, but the first sequel has grossed over $3.7 billion. Between 2021 and 2026, New Zealanders will have given more than $1 billion to wealthy film production companies, including one owned by Jeff Bezos – the world’s third richest man.
Why should taxpayers be made to subsidize these extremely profitable films? Every dollar taxed to fund these subsidies is a dollar that could have been spent improving public services or reducing the tax burden on families.
This week, we called on the producers of Avatar to express their gratitude to New Zealanders by paying back the generous subsidies that have been provided by taxpayers over the years. We aren't holding our breath.
Last week saw a new addition to the Taxpayers' Union Board in the form of businessman and former ACT MP, the Hon. John Boscawen. John served as Minister of Consumer Affairs and Associate Minister of Commerce in the John Key Government.
John has been a long-time supporter of the Taxpayers’ Union. With his experience in business and politics, John brings with him great knowledge and insights to the organisation. We are delighted to be able to work with him to champion lower taxes, less waste and more accountability.
All of our board members are not just volunteers, but financially support the work of the Taxpayers' Union. As we get stuck into the important work this election year, we are grateful to all of them for their commitment to making New Zealand a more prosperous society with an efficient, transparent and democratically accountable government.
Thank you for your support.
Yours aye,
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Media coverage:
Stuff Damien Grant: Things get done because of agitators and advocates
RNZ Ashley Bloomfield, the public service and political neutrality
NZ Herald Labour overtakes National in new political poll - Greens hover just above threshold
Interest.co.nz Chris Hipkins helps Labour take the lead in Taxpayer Union political poll for the first time in 12 months
Stuff Labour and National neck-and-neck, with just one seat in it, in latest poll
RNZ The Panel with Nicky Pellegrino and Allan Blackman (Part One)
NewstalkZB Afternoon Edition: 09 March 2023 – New Poll
NewstalkZB Barry Soper: ZB senior political correspondent on Labour taking the lead in new Taxpayers’ Union-Curia poll
The Daily Blog BOOM: New Taxpayers’ Union Poll puts Labour on Top but Greens in danger of falling below 5%
RNZ Labour rises in new Curia poll, Greens dangerously close to threshold
Te Ao Māori News Hipkins hoists Labour’s election chances but not quite enough to rule
NewstalkZB The Huddle: Te Whatu Ora apologises for reporting inaccurate information and Labour leads in new poll
TodayFM Full Show: 10 March 2023 – New Poll (02:12:22)
RNZ First Up - The Podcast, Friday 10 March (00:36:19)
NewstalkZB Morning Edition: 10 March 2023 – New Poll
RNZ Political editors panel: Public service posturing
Otago Daily Times Hipkins doesn't see kids 'anywhere near enough'
NZ Herald Prime Minister Chris Hipkins tells Newstalk ZB he doesn’t see kids ‘anywhere near enough’ in top job
NewstalkZB Jordan Williams and Fleur Fitzsimons face-off over Government consultant spending
NZ Herald Chris v Chris: Poll, battle, mistakes - did Luxon or Hipkins deliver the goods to win the week?
The Gisborne Herald National has to change tack
Stuff National snaps politics right back to December
NewstalkZB Jason Walls: Newstalk ZB political editor on multiple public servants breaking impartiality requirements
RNZ Political commentators Lamia Imam & Brigitte Morten
NewstalkZB Callum Purves speaks to Kerry Woodham on the RMA reforms
The Platform Is the Government sneaking through legislation with their latest RMA reforms?
NZ Herald Voters want councils to have a share of GST, poll shows
Politik Speed limits hit potholes
Newsroom Auckland’s light rail stage fright
NZ Initiative Localism: The initiative that has won the nation over
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