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

Snowden Documents: Show New Zealand Spies On Its Pacific Friends And Sends Data To US

NZ Herald link: New Zealand's spies are targeting the entire email, phone and social media communications of the country's closest, friendliest and most vulnerable neighbours, according to documents supplied by United States fugitive and whistleblower Edward Snowden. More>>

ALSO:

The Intercept: NZ Spies On Neighbors In Secret 'Five Eyes' Global Surveillance
[The GCSB] has been sweeping up the data from across the Asia-Pacific region, targeting island nations such as Tuvalu, Nauru, Kiribati, Samoa, Vanuatu, the Solomon Islands, Fiji, Tonga and France’s overseas territories New Caledonia and French Polynesia. Each of these small nations and territories maintains friendly relations with New Zealand. More>>

 

PARLIAMENT TODAY:

Urgent Bill Planned: MP Pay Rises To Match Public Service

Prime Minister John Key today announced an overhaul of the Remuneration Authority Act, tying MP salaries to those of the wider public sector, which will be passed under urgency. More>>

ALSO:

PM's Press Conference: MP Pay Rises, Solid Energy, Iraq

Prime Minister John Key answered questions in his Post-Cabinet press conference about the Iraq deployment, Solid Energy and National’s decision to overhaul the Remuneration Authority Act. More>>

ALSO:

Worksafe: MSD Charged Over Work And Income Ashburton Shooting

WorkSafe NZ has laid one charge against the Ministry of Social Development (MSD) in relation to the shooting at the MSD Ashburton office on 1 September 2014 in which two Work and Income staff were killed and another was injured. More>>

ALSO:

Iraq: Ex-Hostage Says Government Not Putting NZers, Iraqis First

Harmeet Singh Sooden is travelling to Iraq in the coming weeks to work with Christian Peacemaker Teams (CPT) on a short-term assignment. More>>

ALSO:

Joint Statement: Australia-New Zealand Leaders’ Meeting

Prime Minister Key warmly welcomed Prime Minister Abbott and Mrs Abbott to New Zealand. The visit has enabled wide-ranging and substantive discussion that has underlined the strength, value, diversity and warmth of our trans-Tasman relationship. More>>

ALSO:

Press Conference: Peters To Stand In Northland By-Election

New Zealand First Leader Winston Peters has announced his intention to stand in the Northland by-election, citing his own links to the electorate and ongoing neglect of the region by central government. More>>

ALSO:

Gordon Campbell: On The Wage Hike For MPs (and Paul Robeson)

Hard to tell what is more infuriating. Is it the 5.3% increase on the already bloated salaries of MPs, or their pantomime of outrage at being gifted with such a wonderful back-dated bonanza? More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news