24 October. KiwiFM host Wallace Chapman and John start out talking about panda bears but move quickly to the Joanna Average findings released by National (see John's video on this, here) that show the average salaries in New Zealand have grown dramatically over the last decade - but the ever-increasing tax bite means most workers are only $500 better off in real take-home terms.  John points out that take-home pay is the real driver of the alarming exodus of New Zealanders to Australia - and that the disparities in tax bite between the two countries is part of that package. Visit Bill English's blog, here, to read more about Joanna Average.

24 October. Just back from a nine day trip to Ireland and England, John talks first about tax cuts and how important they are if New Zealand is to flourish. Then he talks about the Irish economy with special reference to comments posted in response to his Ireland visit video and the latest Key Notes.

Home again

It’s great to have my feet back on New Zealand soil. I spent last week in London and Dublin (click for video), meeting with government ministers, opposition politicians, and business and other groups.

I also spoke at several functions. The UK branch of the New Zealand Institute of Chartered Accountants organised a large get-together of New Zealanders living in London. Their branch has over 2,000 members, which illustrates just how many talented Kiwis are working in the United Kingdom.

Meeting opposition leaders

The highlight of my visit was meeting my counterparts as Leaders of the Opposition – David Cameron from the UK Conservative Party, and Enda Kenny from the Republic of Ireland’s Fine Gael.

The three of us have a lot in common. We are broadly centrist in our thinking, we are ambitious for our countries, and we face opponents who have been in office for many years.

Personal relationships can really boost relations between countries, and getting to know the senior political figures in other nations is an important part of my job.

Last week was the third time I’ve met David Cameron – the first was when we were both backbench MPs. We’re keen to build a lasting personal relationship and we intend to stay in touch.

Looking at Ireland

I’m always struck by the similarities between New Zealand and Ireland. We are the same size in terms of population, and we are both green, hilly, and have strong agricultural economies.

There are differences too. Ireland is also more prosperous than New Zealand. That hasn’t always been the case. Just fifteen years ago, the Irish and New Zealand economies were on a par. We were both poor performers compared to other developed countries.

Nothing much has changed in New Zealand. But Ireland has gone from being one of the poorest countries in Europe to being one of the wealthiest. It’s done this by adopting policies that encourage business growth, improve the skills of its young people, and entice Irish people all over the world to return home to live and work.

The lesson from Ireland is that countries can turn themselves around if they are determined enough. It’s a lesson New Zealand would do well to learn. 

John Key

Shot during the Dublin leg of a week-long visit to Europe and the UK, John reflects on whether lessons learned from the Irish economy can be applied to New Zealand.

John and Jamie Mackay talk about the Government's newly announced $8.7 billion surplus. John points out that over the last four years alone the Government has racked up $34 billion in surpluses and that, despite a staggering tax take and all those attendant surpluses, at no time but the coming election year will tax cuts have been deemed affordable.  John also points out that bracket creep has produced the ludicrous result of seeing two-thirds of all secondary school teachers moving into the top tier of tax payments. John points to some likely scenarios for tax under a National Government.