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


Free Thoughts - ACT's budget priorities

Free Thoughts - ACT's budget priorities

Next week’s Budget will show continued steady progress away from the massive deficits associated with the aftermath of the global financial crisis and Christchurch earthquakes. The National government will continue to make incremental gains, albeit from a firmly centrist political position.

For every halting step forward, there will continue to be the occasional step backwards.

New Zealand doesn’t need a policy revolution, but we need much more than this tentative incremental change.

Here’s what ACT would like to see in the Budget.

A clear message to investors, entrepreneurs, and the business sector that New Zealand is on the path to a much more favourable business environment.

A willingness to confront big fiscal issues like the structure of NZ Superannuation.

A promise to households that their tax rate won’t be sneakily lifted each year.

A pledge to provide education opportunity to all children; the current monopolistic state education system, while serving most children quite well, fails all too many children.

Recognition that, with 20% of children born to parents already on benefits, more must be done to reform welfare, thereby reducing child poverty.

A commitment to wind back corporate welfare, using the funds to cut the tax rate on all businesses, not just subsidise a few.

The guts to tackle the housing market malfunction at root through substantive reform of the RMA. That means removing the anti-development bias and, with it, excuses for councils to restrict the supply of land for building.

Our specific proposals for Budget 2015 focus on the following priority areas.

The fiscal elephant in the room is NZ Superannuation. Life expectancy continues to rise. In 2006 we had five working people for every one person over 65 years of age. By 2050 we will have just two people for every one person over 65. In just 15 years’ time NZ Super costs, as a percentage of GDP, will rise by 50%. We are just fiddling with the fiscal levers if this is not addressed.

Most people understand that we need to make some changes. NZ Superannuation is one of the simplest retirement income systems in the developed world. So long as we make the necessary changes to keep it affordable and fair across the generations, it is an effective pension system. But it is also a political football, and politicians have proven incapable of making these vital adjustments.

An ACT budget would signal that the future structure of NZ Superannuation would be decided by referendum. An expert committee would be formed to consult with the public and come up with reform options which, together with a no-change option, would be decided by the voters. I am confident that common sense and a sense of fairness would see the public support changes allowing NZ Superannuation to remain a sustainable pension system for all New Zealanders through this century. Oddly enough we have a process for this, but we are only using it to decide on a flag design.

Next, we need to signal the future environment for investors and the business sector. We would foreshadow an eight year programme for reducing the company tax rate by one percentage point each year, until we reached a 20% tax rate. That would signal New Zealand as open for business, stimulating investment and allowing companies small and large to create new jobs and boost wages.

To fund much of this we wouldn’t have to cut core services. Instead we would allow the lapse of programmes that are simply targeted corporate welfare – bureaucrats picking winners and distorting competition through unjustifiable business subsidies.

For households, we would index tax thresholds to inflation, putting an end to the ongoing stealth increase in tax rates. If government wants to increase your tax rates, they should do it openly.

We would make genuine reform of the RMA a priority. Substantive changes here could hugely boost investment, jobs, incomes and the welfare of all New Zealanders. Ensuring that councils focus on allowing development of land would return affordable housing to our major cities, making a huge dent in inequality and poverty.

And for a genuinely brighter future for our children, we would expand the Partnership Schools policy by allowing state school conversion to a Partnership School funding model, whenever school boards choose to do so. This would be a visible manifestation of a core empowering principle for ACT - choice.

These advances would create jobs and reduce poverty by fostering a thriving, innovative economy.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Another Reason To Loathe HR Departments (And On The Teachers Strike)

This morning’s news item about Police emergency call centre staff turning up for work while they’re sick – because they’re afraid their sick leave statistics will be used against them, and their jobs put in jeopardy – is not an isolated case...

Obviously, sick people shouldn’t be being treated by doctors and nurses who are themselves sick and potentially infectious. Similarly, Police emergency calls also need to be fielded by people who’re feeling alert, and on top of their game. More>>


MPs' Computers To Be Searched: Inquiry Into Leak On Simon Bridges' Expenses

An inquiry has been launched to find out who leaked the National Party's expenses to the media... Parliament's speaker, Trevor Mallard, said a Queen's Counsel would lead the inquiry with the help of an employment lawyer and also someone with forensic IT skills. More>>


Teachers Strike: Nationwide Rallies And Marches

Teachers and principals voted for a full day strike to be held on 15 August to send a strong message to the Government that the current collective agreement offers from the Ministry of Education would not fix the crisis in teaching. More>>


Wellington.Scoop: City Council Ends Its Support For Jackson’s Movie Museum

The Wellington City Council and the Movie Museum Limited have today announced a mutually-agreed parting of the ways for a joint project between the Council’s Convention Centre and TMML’s Movie Museum... Both parties remain optimistic for the future of their respective projects. More>>

Pay Equity: Historic Settlement For Education Support Workers

The New Zealand Educational Institute (NZEI) and the Ministry of Education today signed Terms of Settlement to address a pay equity claim for 329 support workers who work with very young children in early childhood and primary schools. More>>


Gordon Campbell: On The Stereotypes About Jacinda Ardern

Routinely, female politicians get depicted as either show ponies or battle axes, with little room for anything else in between. .. More>>

Weekend Interviews: "Discriminatory And Racist" Aussie Deportations

The former president of Australia’s Human Rights Commission Gillian Triggs says deportations have risen dramatically in Australia since 2014 when ministers and ministerial delegates were given the power to cancel visas - and half of those being deported are New Zealanders. "These are massive numbers, actually escalating dramatically."... More>>


Legal Challenge: Prisoner Has 9 Boxes Of Documents Seized

Human rights organisation People Against Prisons Aotearoa says a prisoner they advocate for has had 9 boxes of legal documents seized from him just days before his case against the Department of Corrections was to be heard. More>>

Single-Use Plastic Bags: Govt To Phase Them Out

Single-use plastic shopping bags will be phased out over the next year, Prime Minister Jacinda Ardern and Associate Environment Minister Eugenie Sage announced today. More>>





Featured InfoPages