Taxpayers' Union Exposes Outrageous Government Junket to Space Conference

The Taxpayers' Union has uncovered that the Ministry of Business, Innovation, and Employment (MBIE) indulged New Zealand's Space Agency in a recent trip to the USA, costing $36,760.07. An Official Information Request revealed that the NZ Space Agency flew business class to Washington DC and stayed in luxury accommodation while attending the 25th Annual Federal Aviation Administration Commercial Space Transportation Conference.

The lavish excursion saw MBIE officials staying at the Grand Hyatt Washington Hotel for five days, despite the conference lasting only two days. The hotel bill alone amounted to over $5,500, averaging more than $1,000 per night. Furthermore, taxpayers were burdened with a hefty price tag of over $31,000 for business class travel, which MBIE defended as being "in-line with policy."

Oliver Bryan, Taxpayers' Union Investigations Co-ordinator, expressed deep concern over this misuse of taxpayer money:

"This seems to have been an exercise in flying around the world trying to find a purpose for the Space Agency's continued existence. Their five days in Washington DC for a two-day conference that no one has ever heard of is a clear example of officials having a junket at taxpayer expense.

"It is outrageous that hardworking New Zealanders are footing the bill for a lavish jolly like this. It's high time the Ministry began focusing on its actual remit rather than wasting our money on once again proving the Space Agency's is nothing but a government vanity project."

Commenting on the news that the new Three Waters reform plan has already blown out costs by around $1 billion, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“Three Waters is adding layer upon layer of pointless bureaucracy. Inefficiency is baked into the design of these reforms, so is it really any wonder that they are already behind schedule and over budget?

“It has been clear from the get-go that Three Waters offered tremendously poor value for taxpayers’ money. More bureaucracy, no job losses, yet lower costs was a sum that never added up. McAnulty’s attempt to pull the wool over voters’ eyes with the changes introduced to Parliament earlier this month simply make this power grab even more expensive, and yet the Government is still failing to meet even these revised targets.

“The public has made it clear that they do not support seizing community water assets, whether they’re being handed to four distant entities or ten.”

Commenting on Grant Robertson’s and Jan Tinetti’s recent announcement of a $128 million bailout for the tertiary sector, Taxpayer’s Union Campaigns Manager, Callum Purves, said:

“Rather than giving universities and polytechs a cheque, the Government could save a lot of taxpayer dollars by asking them to trim the fat. Given that both Victoria University of Wellington and the University of Otago have higher administration staff numbers than research and teaching roles, universities could easily make savings without cutting frontline roles.

“While the universities need to make savings, one of the primary drivers of funding gaps has been the drop in student numbers, which has been directly affected by the Government’s restrictive travel policies during the latter stages of the pandemic.

“We also need to have proper rethink about how the Tertiary Education Commission (TEC) doles out subsidies to universities around New Zealand as it is becoming very clear that the current funding model is costing taxpayers more and more for diminishing returns.

"At the very least, this money should come from a reprioritisation from within the tertiary sector, specifically scrapping the fees-free policy that overwhelmingly benefits wealthy families without increasing enrolment numbers."

Reacting to the news that the Government is set to become a part owner of the Ruapehu ski fields, Taxpayers’ Union Campaigns Manager Callum Purves said:

“The Government should not be getting involved with propping up businesses that cannot stay afloat on their own. If the current operators go under, the mountains, ski-lifts and other infrastructure will still be there for another company to take over.

“Many international companies would be interested in buying the rights to operate the ski-fields for the reported price of $1, without the need for taxpayer loans, bailouts or buy-ins. Investing in New Zealand would be an attractive option for international companies seeking to diversify risk geographically and smooth income during the off-season in their respective countries.

“If the government wants to do something, a good start would be speaking with the many international ski-companies to see what regulatory barriers there are which are preventing them from taking over operations and seek to reduce them in time for the winter ski-season.

“People often forget that these things have an opportunity cost. The ski industry is one dominated by wealthy families who can afford to get away over the winter for some time on the slopes. Spending taxpayer money on bailing out the Ruapehu ski-fields means that we are effectively subsidising the hobbies of the wealthy at the cost of say funding frontline education or health services that have the greatest impact on low-income New Zealanders.”

Commenting on this morning’s GDP figures, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“While the impacts of the severe weather events earlier in this year will have damaged primary production, the Government needs to shoulder much of the blame for this economic contraction. Its spending addiction has driven inflation to record levels and forced the Reserve Bank to hike the Official Cash Rate repeatedly, which has undoubtedly hampered economic activity.

“New Zealand might have only just entered a technical recession, but without drastic and urgent action from the Government to rein in its spending, this situation may well persist for some time to come.

“While Grant Robertson might not want to listen to us, he should take heed of the IMF’s damning indictment of his economic policies. They rightly argue that other than investment in cyclone recovery and social housing, the Government should tighten its belt by cutting spending and ensuring that cost of living support is targeted to those who need it most.”

Commenting on news that the former Te Pūkenga chief executive, Stephen Town, was paid out close to $200,000, Taxpayers’ Union Campaigns Manager, Callum Purves, said: 

“The Government’s polytechnic merger was always a bad idea and one driven by their obsession with centralization. Far from delivering efficiencies, Te Pūkenga has simply created additional layers of bureaucracy while worsening financial problems and failing to address the issue of student numbers.

“The fact that the chief executive presiding over this mess was given a nearly $200,000 payout after having already been paid $65,000 for a period of ‘special leave’ is simply outrageous and completely unjustifiable. The golden goodbye culture in the public sector of rewarding failure must end immediately.”

Commenting on former Invercargill Mayor Tim Shadbolt’s request for a ratepayer-funded statue of himself, Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“It beggars belief that Tim Shadbolt thinks this is an appropriate use of Invercargill residents' money, especially considering that the public have already had to pay for his enormous ratepayer-funded mayoral portrait.

“We commend Mayor Nobby Clarke for standing firm on this issue and looking out for ratepayers’ interests. If Mr Shadbolt would like a statue of himself, he is more than welcome to fundraise for one privately.”

The Taxpayers’ Union has condemned the Government’s decision to allocate $160 million in rebates to the gaming sector over the next four years – calling it ‘corporate welfare’.

Taxpayers’ Union Campaigns Manager, Callum Purves, said:

“It was quite incredible to watch the gaming sector lobbyists in the budget lock up celebrate the ‘win’ for their wealthy clients. Gaming, now joins the film industry as an exalted industry that somehow justifies special treatment with politicians taxing ordinary Kiwis more to fund corporate welfare schemes.

“Corporate welfare to help ‘grow’ an industry is a false economy. Just like film, these companies get addicted to the rebates and subsides. Even if the industry grows, so too does the subsidy. 

“Rather than pick winners, a far better economic strategy would be to slash the subsides for gaming and film and deliver every business and entrepreneur tax relief. Maybe then our company tax rate wouldn’t be among the highest in the world.”

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.”

NEW POLL: ACT boost means Centre Right can form Government in latest poll 📊🟡

Exclusively for our supporters like you, here are the results of May's Taxpayers’ Union – Curia Poll:

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.

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%.

Visit our website for more information and details of how to get access to the full polling report (which includes favourability figures for the two MPs in the centre of the Green Party's 'cry baby' text scandal: Chlöe Swarbrick and Elizabeth Kerekere).

‘Take a Moment’ (to get angry) at the Human Rights Commission’s shiny new website 💻💸

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...

Given that taxpayers like you, dear reader, paid $417,962 for the privilege, your humble Taxpayers' Union encourages you to 'take a moment' and appreciate what your money is being spent on... 

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'...

Axe the Inflation Tax: Time for Income Tax Bracket Indexation 📈💵

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.

Taxpayer Victory! Film Commission avoids this year's Oscars ❌🏆

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,

Callum Purves Campaigns Manager New Zealand Taxpayers’ Union.