Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Grow Economic Cake, Pre-Funding Super Will Fail

Grow The Economic Cake, Pre-Funding Super Will Fail

22 March 2000

PR19/2000

GROW THE ECONOMIC CAKE, PRE-FUNDING SUPER WILL FAIL: FFNZ

Federated Farmers today told the Finance and Expenditure Select Committee that additional Government spending will ultimately reduce economic growth and employment, and the pre-funding of superannuation was a mistake. The federation was giving its submission on the Budget Policy Statement.

"This additional spending in the non-tradeable sector will be inflationary and lead to higher interest rates and a higher NZ dollar, making our export industries less competitive. That lack of competitiveness will reduce growth," commented Federated Farmers President Alistair Polson.

Federated Farmers pointed out to the committee that the per capita level of taxation has risen by around 41% in real terms since 1978.

"The size of Government, local and central, is a large burden upon New Zealand's export sector. The level of taxation has increased over time because successive Governments have been unable or unwilling to contain the overall level of government expenditure."

"This trend needs to be reversed. Without a fiscal policy objective that targets the actual expenditure level, there is no incentive for the Government to provide public services more efficiently."

"While Federated Farmers commends the Government for planning to run operating surpluses over the forecast period, it is concerned that this comes about through increased taxation."

The Budget Policy Statement shows that total revenue is expected to increase by an annual average of 4.8% over the next four years. Much of this increase is due to the tax changes, expected to increase tax revenue by a further $3 billion over the next three years.

Federated Farmers agreed with the Government that providing for future superannuation spending is an important issue that needs be addressed urgently.

"Federated Farmers firmly believes that continuing to repay debt would reduce debt servicing costs over time and improve the Government's fiscal position for future generations."

The proposal to pre-fund superannuation would require a commitment by successive governments to run large operating surpluses for this purpose.

The proposal lacks the essential element of political consensus, and is therefore unlikely to stand the test of time.

"As the scheme is funded by taxes, it will limit farmers and small business owners' ability to invest in their own businesses - their own super scheme - because taxation would be higher than necessary."

Federated Farmers also suggested that the Government needs to focus more upon policies that contribute to New Zealand's overall competitiveness.

In this respect, the federation commended the Government for deciding to review a number of essential areas of the economy, particularly the telecommunications industry, and the previous Government's electricity reforms.

ENDS

For further information: Alistair Polson 025-370-085 or 04-473-7269 Catherine Petrey 04-473-7269


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Dealing Crackdown, Addiction Support: Government Action On Synthetics

The NZ Drug Foundation has welcomed the Government’s response to synthetic drug deaths. The response strikes a balance between giving law enforcement the tools they need to target criminal networks and changing drug law to make it easier for people to access help when they need it. More>>

ALSO:

Strategy Committee Unanimous: Wellington To Forge Ahead With Convention Centre

The three-storey Cable Street building, with around 18,000-square metres of floor space, will comfortably be able to host 1500 people for conventions. It includes a 1651sq m exhibition area that will attract international exhibitions too big for nearby Te Papa and provide an always-changing visitor attraction. More>>

ALSO:

Surveying The Surveillance: First IGIS Review Of Warrants Under New Act

The report sets out the Inspector-General’s interpretation of the new warrant provisions under the ISA and her expectations of the GCSB and NZSIS when they prepare warrant applications. More>>

SSC: 2018 Public Service Workforce Data Published

State Services Commissioner Peter Hughes has published the 2018 Our People, Public Service Workforce Data , which shows the Public Service is making significant progress in important areas. More>>

ALSO:

Sinking Cap: Auctions, Permanent Forests, Added To ETS

The move to auctions, signalled in an August consultation paper, will help put a cap on the number of emission units available over time. Annual announcements, looking forward five years, will help provide certainty for scheme participants, she said. More>>

ALSO:

Joint Select Committee Report: Achieving Smokefree 2025

In a historic first for select committees, the Māori Affairs Committee and the Health Committee presented their joint report on achieving the Smokefree 2025 goal to the House on Tuesday, 11 December 2018. More>>

"Shared Interests And Democratic Values": Peters To Visit USA

Deputy Prime Minister and Foreign Affairs Minister Winston Peters will travel to Washington D.C. for talks with US Secretary of State Michael R. Pompeo and other senior members of the US Administration. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels