Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 


AMI shock further evidence of need for a levy

AMI shock to Government’s fiscal position further evidence of need for a levy
The $500 million underwriting of AMI Insurance will put the Government’s books under even greater pressure making the need for an earthquake levy more compelling, Green Party Co-leader Russel Norman said today.

“The Green Party supports the Government’s move to underwrite AMI Insurance to give certainty to policyholders, especially those in Christchurch needing to rebuild their homes and livelihoods,” said Dr Norman.

“Giving ourselves the option of a preferential shareholding in AMI is the most prudent way to bail out the company and will ensure the interests of taxpayers are best protected.

“However, John Key’s Government can no longer continue to keep borrowing indefinitely to pay for the mounting cost of rebuilding Christchurch.

“We have to have to be prepared for more bad news from the Christchurch earthquake, so the Government needs to design a fiscally and economically resilient response. Putting it all on the credit card isn’t really a plan and will simply leave us less able to deal with future shocks,” said Dr Norman.

The Green Party has proposed a temporary levy on income as a way to pay for the cost of rebuilding Christchurch. The small levy would fall on those most able to pay for it and raise over $1 billion of additional revenue each year it remained in place.

“Our plan to raise a temporary levy lessens the risk of a credit downgrade,” said Dr Norman.

The Government confirmed through an answer to a Written Question yesterday that the credit agencies will be reviewing New Zealand’s sovereign credit rating after the May 19 Budget when there would be more information of the effects of the earthquake on the Government’s finances.

“A credit rating downgrade would add significant deadweight costs right across our economy — the last thing a fragile economy needs right now.

“The other part of the Government’s approach is to cut public sector spending at a time of weak economic activity, which carries the risk of sending the economy back into recession.

“A temporary levy avoids both these risks as it spreads the cost of funding the rebuild of Christchurch fairly throughout the economy,” said Dr Norman.


More information on the Green Party’s levy proposal:

http://www.greens.org.nz/sites/default/files/how_an_earthquake_levy_could_look_green_party_research_1.pdf

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Extended Cease Fire: Gaza Celebrates!!!!

Images and video from Gaza.Scoop - Julie Webb Pullman in Gaza.

Gazans took to the streets tonight to celebrate their victory in achieving the end of hostilities and the lifting of the illegal seven-year siege. Whatever tomorrow may bring, tonight was a time to rejoice! More>>

Details:

 

Parliament Today:

Collins 'Misinterprets Media Reports': "Too Compromised To Remain Justice Minister"

Bizarre claims by Judith Collins this morning that she had been cleared of inappropriate behaviour by the Privacy Commissioner demonstrates she is too compromised to remain Justice Minister, Labour MP Grant Robertson says. More>>

ALSO:

Labour On Climate Change: Focus On The Now For The Future

A Labour Government will put in place a comprehensive climate change strategy focusing on both mitigation and adaptation, establish an independent Climate Commission and implement carbon budgeting, says Labour Climate Change spokesperson Moana Mackey. More>>

ALSO:

Gordon Campbell: On National’s Housing Assistance Plan

So, as many as 90,000 people could derive some benefit from National’s housing assistance plans for low and middle-income earners... Yet in reality, the benefits seem likely to be insignificant, and they will be skewed towards those at the top end of the income group that’s supposedly the target. More>>

ALSO:

Election Data Consortium: National’s Worst Case Scenario At Stage One?

A month out from the general election and ipredict traders are still forecasting National’s vote to slip below current polling levels and there is potential for it to fall further. More>>

ALSO:

From The Scoop Video Archive: PM Says SIS "Told Me" About OIA Release

In a press conference immediately following an controversial OIA release of notes on an SIS briefing to then Labour leader Phil Goff, Key said "at that point [Tucker] told me he'd release it ...". Since the release of Nicky Hager's 'Dirty Politics' Key has denied being personally informed and said references by officials to 'the PM' being told briefed referred to his office. He now says the same about his own statement. More>>

ALSO:

  • Scoop Video in the news - New questions over Key claims | NZ Herald News - Stuff.co.nz
  • Earlier - Felix Marwick: Laying out facts over SIS documents - Newstalk ZB
  • Labour - Director’s letter contradicts Key’s claims
  • ACT - The Letter - 26 days to go
  • TV3 Video - Housing issue nudges Dirty Politics aside - David Cunliffe: Key's SIS explanation 'defies belief' - SIS leak came from Key's Office - Goff - Key 'categorically denies' Slater OIA discussion - Video: Key faces more Dirty Politics questions

  • TVNZ - Winston Peters: ‘Dirty Politics' is a new low
  • The Nation - Debate Between Grant Robertson And Russel Norman
  • NZ First - “The Words Mean What I Say They Mean”
  • Schools, PPTA Sign Up: Primary Teachers And Principals Vote Down Govt Plan

    Teachers and principals have voted overwhelmingly against the Government’s controversial “Investing in Educational Success” policy, including proposed highly-paid principal and teacher roles. More>>

    ALSO:

    Gordon Campbell: On The Usual Round Of Mud Slinging And Name-Calling

    This week gave an interesting example of how hard it is to untangle the reality from the slanging matches. The issue that emerged early this week could hardly be more important. Does the government intend to cut spending in health, education and on the environment if re-elected, or not? More>>

    Earlier:

    Electionresults.co.nz: National and NZ First Rise in Roy Morgan Poll

    National has bounced back in the latest Roy Morgan Poll but the big winner has been New Zealand First who rise to their highest level of support since September 2013. More>>

    ALSO:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
    Parliament
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news