] NEWSLETTER: KeyNotes No.26 - Rt Hon John Key
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13 February 2008
NEWSLETTER: KeyNotes No.26

BACK IN THE HOUSE
I was surprised by Helen Clark's speech at the opening of Parliament yesterday. I was expecting her to be bold, to be visionary, to have a sense of hope and aspiration, and to show that she understands the frustrations New Zealanders feel about where our country is heading, and the performance of her government after almost nine years in power.

Instead she gave us the same old stuff. She gave us her version of sustainability, recycling a host of previously-announced policies - some of them going back to a speech she made in 1994 - and re-using National's policies on tax cuts, NGOs, and Public Private Partnerships.

New Zealanders deserve better. They deserve a government that deals with the real problems we face - like interest rates nearly 4% higher than when Labour came to power; like the 77,000 Kiwis who left New Zealand for good last year; and the ongoing breakdown in our health system. They deserve a government that will arrest our fall down the OECD rankings, and lift the hopes and aspirations of all Kiwis.

It won't take National nine years to confront youth crime or housing affordability. It won't take us nine years to respond to the frustrations of NGOs. And it won't take us nine years to give New Zealanders the tax cuts they deserve.

Under National, there will be change and improvement, and it won't start after nine years. With your help and support, it'll start in around nine month's time!

Watch my response to Helen Clark's speech here and my latest video diary here.

EDUCATION CHANGES

This morning I made some changes to our front bench. Katherine Rich, our education spokeswoman, and a hugely-talented member of our caucus, has announced that she will not seek re-election this year. I fully understand her decision to devote more time to her young children and I wish her and her family all the very best.

Thanks, Katherine, for the great work you have done over the past nine years in our caucus and in your portfolios.

Education is one of our major priorities, and responsibility for it will be taken over by Anne Tolley, who will relinquish her role as Chief Whip. I have great confidence in Anne's abilities. She has proven herself since she re-entered Parliament in 2005. Nathan Guy is our new Chief Whip, and Chris Tremain is our new Junior Whip.

LOOKING AHEAD

Watch my first video journal of the year here, where I talk about Waitangi Day, the state of the nation, and our prospects for 2008.

Earlier this month, National MPs spent a few days in Rotorua discussing our policies and settling on our programme for 2008.

Our caucus is in great heart. We are focused on holding Labour to account for its poor management. We are developing the right policies for a more prosperous and more ambitious New Zealand. And we have a strong, talented and united team of MPs who can put those policies in place after the election.

At the caucus retreat, I made a couple of policy announcements on the bail laws and student loans.

- Making sure bail laws protect public safety

Last year, in an effort to reduce the prison population, Labour made changes to the Bail Act. These changes make it easier for violent offenders to get bail. Under these changes, murder-accused Chris Kahui was granted bail even though he had previously breached his bail conditions three times.

National will ensure that public safety, not a reduction in prison numbers, is paramount. We will repeal the 2007 changes and return the Bail Act to its previous form.

- Student loan changes

Half a million New Zealanders have a student loan. Many have made long-term financial decisions on the basis of the current policy and we want to ensure they can plan with certainty. National will, therefore, keep interest-free student loans for tertiary students, but we want to encourage students to pay off their debts earlier.

A National Government will offer a 10% bonus on a loan balance for voluntary lump-sum payments of $500 or more. The incentive will apply in the 10 years following the start of repayments by the borrower. For example, if a borrower pays $800 off their loan in a lump sum, above and beyond the compulsory requirement, the Government will take $880 off their loan balance.

We want young New Zealanders to realise their educational ambitions, and this policy will help them achieve this.


John Key MP Leader of the National Party

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#1 - GENE VISSER said:
2008-02-13 20:10 - (Reply)

GOOD ON YOU MR. KEYS. GIVE HELEN HELL///. GENE VISSER. TORBAY AUCKLAND. YOU GOT MY VOTE FOR SURE.

#2 - mark 2008-02-13 20:19 - (Reply)

what are NGO's. Remember to talk to all the people [Admin: non-government organisations]

#3 - norman godden 2008-02-13 20:21 - (Reply)

That is all good and I fully understand John not responding with any policy statements in reply to Clark's speech as the Labour Party will simply steal policy in the short term. However, John really needs to commit to policies which are really outside the square as far as vision is concerned. They need to be as radical as those that Roger Douglas proposed when he was the proponent of change. One major issue is that of the education of the electorate in terms of MMP. It seems to me that most still don't understand the ramifications of it. For example I heard a guy on talkback who was reasonably sophisticated in his language saying tha that for the first time he was going to vote for his National Party candidate as he wanted the National Party as the next government but he would probably give his party vote to the Greens as he liked some of their policies on the environment. Totally the wrong way around!! Therefore it seems that a lot of education still needs to be done. regards

#4 - Dave 2008-02-13 20:33 - (Reply)

I would be interested in an economic/finance view of Ms Clark's housing policy. Will it help people in the long run? Will it maintain houses at an artificially high value? Will it increase state ownership of assets and therefore reduce people's ability to own their own homes? Time for a change ... and DON'T VOTE LABOUR!

#5 - farrell 2008-02-13 20:36 - (Reply)

hi their Mr Key I sent you a letter and some photo of war graves in the cemetary here is west auckland to date ive not even got a reply from your office WHY 2 what is national going to do about war pension and Veteran pension and veterans under 65 mark been only able to earn the $80 aweek and 30cetns up to the $8000 mark then 70cents out of the veteran pension over the $9000 mark this area will be where my vote will go to this year Thank you R Farrell

#6 - Geoff Telford 2008-02-13 20:46 - (Reply)

I was very concerned to see you rubbing noses with that [deleted] iti. He won't vote for you, we will !!! but by acknowledging his presence you have lowered your standard which saddens me and I now must wonder what type of leader you will be. Will you bow to every activist that confronts you? You need to toughen up John and don't panda to those individuals, you let everyon down if you do

#6.1 - Graham Tohill 2008-02-20 21:06 - (Reply)

I fully agree with Geoff. That act alone may have cost the National Party many thousands of votes. Iti is a traitor (witness his shooting of the national flag - for which he got his hand (lightly) slapped - Sue Bradford should have stepped in there!!!) The vast majority of New Zealanders are sick of the constant kow-towing to Maori (and only a very FEW are getting anything from all the handouts - when will they STOP??)

#7 - Margaret Connolly 2008-02-13 21:01 - (Reply)

Each paper in a Bachelors degree has a huge $ cost to it. Mounting debt is no encouragement to continue given there is 21 papers in a degree. To successfully pass 2-3 papers should surely earn a fully subsidised paper. Students need all the encouragement and support they can get.

#8 - Chris Stephens 2008-02-13 21:07 - (Reply)

I'm hoping for a bit more from the next National government than vote catchy law enforcement , bail conditions etc.. Watch this year as power cuts loom from neglected power generation investment. This is just one area where a combination of ill conceived privatisation and the RMA are settig us up for failure. We cant climb up the OECD ladder as you hope like this - in the black outs this winter we will show the world how third-world we are. Our forefathers who built those dams down country ( with provision for more ) future proofed us for 50 years. But we are on borrowed time. No govt has admitted the dire state we are in in terms of energy.. And while all parties wax on about global warming, the biggest crime is the inaction of energy production in sustainable manner that is available to us and the how the inaction on modifying the RMA to something workable, forward thinking and with balance. National in the next 3 year term i hope doesnt just pass the problem on to the next three year term. I want to hear some long term policies , ones that truly set the country up for the future. be brave! be responsible! (you'll need to educate half NZ about the problem tho! no better time than when the lights go out)

#9 - Maria Welham 2008-02-13 21:27 - (Reply)

Good one Mr Key - keep up the good work. Youth crime is out of control - where are you going with that! Our daughter is in London working to pay off her student loan - sadly though that this has to be and your offer of a 10% bonus on a lump sum repayment can only be helpful to the many students who are out of the country working to repay their loans.

#10 - Peter Cribbens said:
2008-02-13 21:39 - (Reply)

The suggestion is fine but do National have any policy regarding writing off all or part of the loan debt if Students agree to stay working in NZ for X number of years after passing out (used to be called bonding)- e.g. top level say 5/6 years full write off? on a graduated scale down to say 2/3 years minimum qualification for say 40% write off or a similar type of scale?

#10.1 - David Ryan 2008-02-13 22:54 - (Reply)

Peter's on the right track. But let's not write the loan off. What about allowing the full cost of borrowed Uni subs being allowed as a deduction against future income earned in NZ? Say deductible over 5 years. It addresses those that stay and contribute. People who invest in their education are clearly discriminated against. An example: I have two sons. One I finance through med school at great cost. I meet this cost from after-tax income. He cannot deduct this capital investment in his education from future earnings. The second less academic one I finance with a piece of equipment to make widgets (with hopefully an export future). He gets to write off the equipment (depreciate it for tax purposes) and a consequent advantage. They outlay for me is the same (even as a loan perhaps) but the after tax result hugely different. Personally I would prefer to see a faster write-off period for those degrees that are in medicine, engineering, science and education. A longer period for commerce, architecture, law and languages - and no deduction at all for the social and political sciences. Society can handle only so many parasites.

#11 - stephen sharpe said:
2008-02-13 21:46 - (Reply)

I see nothing about your intention to remove the Maori seats. See my recent reminder. This is one of the critical issues of this year. Face up to it; don't duck it. Stephen Sharpe

#12 - pat kenny 2008-02-13 22:31 - (Reply)

keep the good work up.THE airforce and the country need there jets back

#13 - Grant Rankin 2008-02-13 23:18 - (Reply)

John Key, just a few minor comments ;1st we lost, I understand 27,000 kiwi's to the land of oz possibly a typo, if you want the general following of Nz citizens to vote National, you would I'm sure dispense with the tax on personal savings accounts as this is distasteful and arguably a tax on top of a primary tax, you earn your normal income then are taxed as usual then what ever is left over is placed in the bank for the future, however subsequent Govt's tax the savings which means you go backwards quicker than you can plan for the future. A reduction in income taxes would assist the average person but the problem will always be "how much" I have given this lots of thought and have been able to equate that 19 cents on the dollar tax as a standard across the entire nation will infact gather more tax from more people than the current system. If you are genuinely interested in Aviation Security you will be pleased to know that the average NZL pilot is not provided with a photo Id pilot licence that would protect the licence holder from having his or her Pilot licence miss-used.( lets hope highjackers stay away) infact Caa and Avsec (Aviation Security) claim that there is no need to protect pilot priviliges with a photo pilot licence, so much for employing safety and responsible people, I hope this concerns you as I am a qualified pilot and I would hope that National will do something about this.

#14 - Allen 2008-02-14 03:56 - (Reply)

John you say it won't take National Nine years to get things right for new zealanders.well how much will this cost us. what are you going to do about council rates for homeowners.about power prices and for mature single people on low income.

#15 - geoff williamson 2008-02-14 07:11 - (Reply)

good morning, STUDENT LOANS .. to retain qualified graduants for at least 5 years for essential industrie. eg medical, dentistry, engineering, teaching etc divide the student loan obtained by the now graduant by 5 and give a credit for the years worked after graduation. graduant wll be a tax payer so pay back could be neutral but we have the servives for 5 years. smliar to the bond issues we had in the 70s for teaching and the like.. has plenty of support when mentioned.. Geoff

#16 - Bryce Strong 2008-02-14 07:41 - (Reply)

Dissapointed to see the hand holding with Titewhia Harawera and the hongi with Tama Iti. Will not do you any good with voters!

#16.1 - Peter Cox 2008-02-14 10:44 - (Reply)

Yes I agree with Bryce Strong, you don!t need to "woo" these types. Strong dynamic speeches and policies are better. RE TAXES.. Cullen worries about tax cuts being inflationary, perhaps a reduction in some of the Petrol Tax would be non-inflationary!! But we still need Tax rebates as hthe Nats have promised. I believe to start lower incomes should be tax free say up to $30000@!!

#17 - Robin Grieve 2008-02-14 07:57 - (Reply)

the word tax cuts is not going to distinguish National from Labour anymore cause Labour are doing them too but what about promising not to continue increasing taxes as Labour has done for the last 8 years(bracket creep etc) and to start giving it back. Could also promise to give it back in a lot of areas, fredom of speech, individual responsibilityetc. Is it true they have increased the tax take by 44billion thats $11000 per head or 40 -50 k per family I'm sure most families would like some of that back

#18 - D.Jones 2008-02-14 08:21 - (Reply)

An item that bugs me is the publicly announced acceptance by many, of the property invasions by the mindless tagging teams in most areas of the country, in particular, members of the Maori party who find great empathy with this expression of individuality and to hell with the property defaced, the owners, and the cost of cleaning up. A small item which appears to have either National Party acceptance, or, a party in agreement with the sentiment. YKP 27BHR

#19 - FREDDY 2008-02-14 08:56 - (Reply)

Wow...what a speech...sharp...and may I say, honest ! Its time for a change...and I am absolutely certain many New Zealanders realise this. Good for you....keep at it...you have my vote for sure...

#20 - hugh martin 2008-02-14 09:22 - (Reply)

Our son who works in the city of London attended a presentation last week on the NZ economy. Summery. Its become a junk bond economy heading to thired world status driven by Goverment policy. He has a B Com, M Com Hons from Ak uni he sees Melbourne as his next work place. NZ will be a holiday destination only. That's the message this Goverment is giving out to the world. Mr Key, if Ford Motors can be turned around in a couple of years so can NZ it requires tough action by skilled determined peaple.Is that the next National Goverment?. If so, then demonstate it. Hugh Martin

#21 - Terry Collett 2008-02-14 09:27 - (Reply)

Sorry John, I do not agree. As a person who continually works with young people and get frustrated with the lack of resources and alternatives, I thinkl she has done the right thing in giving considerable funding to community agencies who deal with such issues. I would prefer see the basics right instead of some grandstanding amazing statement(s) that will possibly come to nothing. As one who would obviously benefit a lot from tax cuts, I am personally tired of hearing about them. I would much prefer to see the extra funding going into education, health and a modern transport system that might drag us away from our cars.

#22 - Andrew Atkin 2008-02-14 09:57 - (Reply)

Shame to see Katherine Rich is going. From what I could see through the crystal ball of TV, she seemed like a very nice and "humanised" politician. Definately understandible though, considering she has young kids.

#23 - NOEL 2008-02-14 10:06 - (Reply)

IF NATIONAL BECAME THE GOVERMENT WOULD THEY STAND UP AND BE COUNTED FOR FIGS 1 EXTRA POLICE SQUADS TO DEAL WITH THE GANG AND DRUG SERIOUS PROBLEM IN THIS COUNTRY FIGS 2 THOSE ON BENIFETS PENSIONS/INVALIDS STAY THE SAME FIGS 3 HOSING NZ ACCOMODATION THE GOVERMENT DOUBLE DIPS PROVIDES CHEAP ACCOMODATION THENTHERS A REVIEW ONCE A YEAR RENT /FOOD RISE .HOW CAN A PERSON IN THIS SITUATION SAVE ANYTHING FOR RETIRMENT OR WHERE IS THE QUALITY OF LIFE NONE

#24 - Rex OConnor said:
2008-02-14 10:36 - (Reply)

I know its hard to go back in history but in the 50"s and 60"s we had the cut off line of School certificate and University Entrance and then apprentiships. Apprentiships gave us the necessary training for the trades persons that society needs to survive and sadly there is no incentive for the business companies or persons to trian new entrants and the new entrants get loaded with debt and they sya to hell with that, and if you are going to handles the younger persons who want to opt out of the education system then I suggest that the "carrot" you are going to dangle in front of them to gete them to do and learn the trades society needs is better and bigger that the "stick" you are promising if they dont complyy

#25 - Gail Gillespie 2008-02-14 13:58 - (Reply)

Re student loans - Those who have this mill stone around their necks are hard put to pay them off.My daughter who only took a loan for her actual fees, paid off $1500 her first year working.She was not able to pay more than the minimum on a salary of $28,000! At the end of the year she had paid off $300 the remaining $1200 was interest.She taught English in Japan for two years and found it almost impossible to get any sense out of the public service she needed to deal with to pay any off.She gave up.Her loan escalated.She has since worked in NZ for 2 years and paid off several thousand dollars.But now she is again overseas I see her loan likely to increase again.She worked as many hours as she was allowed through uni and passed all her papers with good marks.As a person her own age who gets the dole does not have to repay the money they have been given, it seems we are sending the wrong message. Why is the dole not charged at the same rate as a student loan? She says she can never expect to own her own home.I would have to agree.Especially on the income she would be likely to earn in NZ.Has her treatment been an incentive to return.Absolutely not! My son with a double degree commented when home in Nov that he and his wife had always planned on bringing up their family in NZ.But the news during the week altered his perception of NZ being a good place to bring up a family.They may not come home after all. It would always have been a major compromise as the renumeration and job opportunities are limited in NZ.We need to be sorting crime when and where it starts - often very young.The wet bus ticket still seems to be all that is applied - as a teacher I hoped this was addressed 40 years ago.Instead we are even softer.Personal responsibility has got to become a public expectation at all levels and in all areas of people's lives. Or those we are wanting to attract back will stay away.There has to be a good reason to return.

#26 - max wagstaff 2008-02-14 14:07 - (Reply)

Mr Key, What are you and the national party really going to do about law enforcement in New Zealand? Administrations change but nothing really tangible takes place in real terms when it comes to law and order. Laws are written then ignored.Our staute books bulge with them. As an example I sufferred serious property damage to my home, it took 5 days for a policeman to even come by to view it. In Glen Innes a shop was broken into over the weekend ,money and cigarretes taken .The joke is that the shopkeepers had to ring Wellington central to report the crime when they came in to open their store and were directed to call the newly and expensively built Glen Innes police station. The irony is that this station is closed from 4.40pm Friday to 8.00am Monday and it is just over the road from the store that was robbed. Even being that close to this white elephant of a police station it took 3 days for a policeman to visit the crime scene to fingerprint the place! I have other examples I could quote you but it would take pages.

#27 - NOEL 2008-02-14 16:05 - (Reply)

CRIMINAL ELEMENT/ GRAFFITTI ETC IF IN POWER HOW WOULD NATIONAL TACKLE THIS MAJOR PROBLEM WHY SHOULD THE RATE PAYERS OF NZ AFTER A BUGULARY /FENCE GRAFFITTIED HAVE TO PAY FOR THEIR STAY IN PRISON .WILL NATIONAL TIGHTEN UP THE LAWS IN THIS COUNTRY SUCH AS USER PAYS COMMITT THE CRIME PAY FOR THE TIME MAKE THE OFFENDER PAY ON A BENIFET SO MUCH A WEEK PAYED TO THE JUSTICE DEPT LESS MONEY FOR DRUGS ETC HIT THE SUPPLIERS HARDER

#28 - Anonymous 2008-02-18 15:18 - (Reply)

I think National might reconsider interest free loans in favour of a simpler idea, namely allowing all school leavers a one-year exemption from fees at any type of tertiary institution. This tobe followed py loans under normal interest/repayment provisions. This would be as cost effective as interest free for students and encourage all school leavers to have a taste of tertiary life before committing to the full qualification. Stan Simpson, Ilam

#29 - Kiran Chandra said:
2008-02-19 20:30 - (Reply)

Your above policies are to our liking and we support you on those BUT please do not bring changes to medical and healthcare where you have earlier suggested the rise of doctors' fees etc which will grossly affect elderly, the pensioners and thousands of others on a lower wage scale. You will also have to scrutinise the operation of WINZ so that only genuine citizens are eligible for benefits and to ensure bludgers are not claiming benefits under more than one name. I support your Party wholeheartedly at present.

#30 - Simon 2008-02-21 14:07 - (Reply)

I ask you Mr Key what will you be doing to help small businesses. Owning a small business with 5 staff there are so many costs in terms of tax, gst, paye, acc, road user charges on the cars, registration. By the time I have paid all of this and my staff not much left for me. What changes will you bring about to help small businesses?


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