Newsletter

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22 January 2010
Happy New Year!

In this issue I talk about Prince William's visit, the "three strikes" Bill, what it will take to build a world-class tax system, a new initiative for the tourism industry and some of what I'll be doing in the next few days.

CLICK HERE TO WATCH MY LATEST VIDEO

It’s great to be back on deck after a few weeks’ break. I hope you managed to get a bit of time off over Christmas and find some decent weather.

We’ve had a busy start to 2010 with our first Cabinet meeting of the year, and the visit of Prince William.

I really enjoyed meeting the Prince and spending some time with him at official events while he was here. His visit provided a tangible sense of our ongoing links to the monarchy, and a great chance for New Zealanders to see and get to know this fine young man. And it really added to the official opening of the Supreme Court.

See photos from Prince William’s visit here.

THREE STRIKES – SAFER COMMUNITIES FOR KIWI FAMILIES

Click here to watch my policy update video.

On Tuesday I announced that National and Act have agreed on law changes that ensure the country’s worst repeat violent offenders will receive the maximum allowable sentence for their crimes.

The new sentencing regime in our Sentencing and Parole Reform Bill includes a “three-strikes” policy. This will target violent offenders who show continued disregard for the law. 

The first offence will bring a standard sentence and warning. The second offence will bring a jail sentence, in most cases, with no parole and a further warning. The third offence, will result in the offender being given the maximum sentence in jail for the crime, with no parole.

The new regime will help keep the worst repeat offenders behind bars for longer. It will also deter criminals from committing further crime by escalating the severity of their sentences.

National is determined to make our communities safer for Kiwi families. We are determined to reduce the number of crime victims. And we are determined to make life tougher for violent criminals. The Sentencing and Parole Reform Bill is an important step towards that goal.

BUILDING A WORLD-CLASS TAX SYSTEM

Last year National managed to guide New Zealand through the global recession while living up to our election commitments. In 2010, we’re focused on unleashing New Zealand’s potential for growth, and lifting the wages of New Zealanders.

On Wednesday, the Tax Working-Group issued its report on New Zealand’s tax system. The report identifies several issues with the structure, coherence, and sustainability of the current tax system. It also puts forward some options to fix them.

Tax policy can play an important role in lifting economic growth and productivity. We want to make sure our tax system rewards effort, encourages savings, and helps families to get ahead. Fairness is a big part of that. We will carefully consider the Working-Group’s report as part of our decision-making for Budget 2010.

BOOSTING TOURISM IN OUR REGIONS

Yesterday I announced that eight tourism marketing groups around the country will share $5 million in tourism funding to market their regions. This will be matched with funding from Regional Tourism Organisations (RTOs) and the private sector to create a $10 million marketing fund, aimed largely at Australia.

This joint venture fund will see RTOs and Tourism NZ working together to maximise their marketing impact. It’s a great opportunity for our regions to use their distinctive selling points to attract Australian visitors, while tying their marketing in with our 100% Pure brand.

FROM THE DIARY

I really enjoyed spending some time in Christchurch yesterday, officially opening AMI Stadium. Stadium Christchurch – as it will be known for the 2011 Rugby World Cup – is the first of New Zealand’s major stadiums to complete redevelopment for the tournament.

I also visited QEII stadium one year out from the 2011 International Paralympic World Championships. As patron, I’m looking forward to the Championships and to watching our disabled athletes compete with the very best paralympians in the world.

I’m in Ratana today with several Cabinet ministers and National MPs, to celebrate the life of Tahupotiki Wiremu Ratana and the birth of the Ratana movement.

On Sunday I’ll be at the Aotea Centre in Auckland to mark the 60th anniversary of India’s Republic Day with some of our Indian communities, before heading to the Trans-Tasman Touch Rugby tournament at Waitakere’s Trusts Stadium.

Best wishes



John Key
Prime Minister

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#1 - James Liyu 2010-01-22 18:40 - (Reply)

Fully support the 3 strike policy. Long overdue. Thank You National for pushing New Zealand to be a safer place to live in.

#2 - David Orchard 2010-01-22 19:15 - (Reply)

I think the 3 Strikes policy is GREAT, well done you guys. The tourism policy is also needed. However I have a BIG complaint--directed to wayne Mapp, former minister to rid of us PC-madness. His latest act, to get rid of the small, unnoticeable markings on the gunsights, is COMPLETE PC-over-the-top ignorance. You guys need to TOUGHEN up, who the heck do you think is upset about this, the idiot terrorists we are using the gunsights to KILL, get real!!

#2.1 - Ronald A Palmer said:
2010-01-23 09:09 - (Reply)

The large majority of NZder's would support David Orchard in respect to Wayne Mapp and his PC nonsense over gun barrels, but remain silent because of their typical "she'll be right attitude". More importantly is the introduction of 3 strikes and you are out policy. Only the mealy mouthed wooly woofters or the parties that pander to their criminal followers would oppose this policy. However it needs to go further and it is time for a ballot on the re-introduction the death penalty for extreme heinous crime. Let the silent majority speak I'm sure the answer would be affirmative. More importantly lets toughen up our prisons. A recent case where a typical beyond redemption low life beat his partner to death, stuffed her in a cupboard and then lived on the streets on his regular diet of booze and drugs. Police arrested him a week later. He was given 14 years with no chance of probation for 12 years. That low life now has it so good. He is now assured of 3 good meals a day, a warm dry single room (They are to nice to call cells)TV, library,gymnasium, games room and many other mod cons. He will still get his dope and all his worries of meals and where he sleeps each night are gone. His word is highly likely to be accepted before the wardens if he likes to trump up some abuse charge. He does not work and costs the tax payer some $100,000 per year. Has society lost reality - of course it has. Just think about it.

#3 - Colin Cook 2010-01-22 19:46 - (Reply)

Go Jono Go you are doing a fabulous job. Like a breath of clean fresh air. Well done

#4 - David Kearney 2010-01-22 19:59 - (Reply)

well never before have I subscribed to such Political Nonsense, but I must say reading most of your releases inspires me with hope. So let me please say this relating to Tax incentives, I think it is about time that some Government had the nouse to offer those hard Workers that constantly exceed 40 hours per week, either thru share effort or 2 jobs to support there Love Ones, that the Government stops, ripping the Flesh from them, with HIGHER TAXES FOR THERE EFFORTS. MMMM Wonder if I will get a reasonable response, please don,t WASTE my TIME with a GENERIC RESPONSE. Yours Sincerely David Kearney [Admin: If you wish a response from the Prime Minister, you must enter the official correspondence system by emailing him at j.key@ministers.govt.nz]

#5 - John Angland 2010-01-22 20:47 - (Reply)

Dear John, thank you for acknowledging NZ's strong link to the Monarchy. We don't need to eradicate our history to pander to liberal, gone by lunch time ideals. I am proud of our history - we are a very young country and will continue to forge our unique identity as time goes by. However there is no reason for NZ to abandon its history and the strong bonds we have with many other countries aside from the UK. Nz is becoming more highly regraded than ever under your stewardship - there are many who wish to immigrate here as their own countries fall to the socialist ideals that penalise effort and intelligence. We need to reward effort, promote commonsense and continue to care for those who fall on hard times. Continue to develop policies that safeguard the honest citizen and penalise the criminals. We all have choices to make in life - ensure our education system teaches our children to make sound, commonsense choices they can be proud of. I see no reason why it should be more important to learn a foreign language at school when our children have so many other life skills to learn in this rapidly changing world. You are doing NZ proud John - thank you so much.

#6 - keith norton 2010-01-22 21:04 - (Reply)

Thanks John, Enjoy your comments in the latest Key Notes, however no mention of the next move on Haiti. After pledging $1 million how about committing some pratical humanatarian aid. I find it rather ironic that there was some mention of sending NZ police to assist with law and order. I represent a welfare organisation in christchurch and we have repeatly asked for a community policeman to visit us , six months later we are still waiting! food for thought.

#7 - Gary Westwood 2010-01-22 21:07 - (Reply)

Happy New Year to you and your team John. It is not going to be an easy year ahead and only the foolish or naive would expect it to be otherwise. Keep delivering the news whether it be good or bad in your normal forthright & honest manner and you will continue to carry the majority of the people along with you.

#8 - Jan Hansen 2010-01-23 00:06 - (Reply)

Thank you John I look forward to your news letters and thank you for the photographic memories of Price Williams visit certainly a fine young man and so relaxed. I totally support the three strikes law change and about time NZ took a tougher stand. I am sure your overall tax package will be well excepted. I have staff who work several jobs to make ends meet and feel we should reward them not punish them by overtaxing. I applaud you for he great job you are doing.

#9 - Paul Cash 2010-01-23 07:39 - (Reply)

how can you claim a proposed increase in GST is a fairer tax system when it quite possibly could send smaller exporters to the wall.It is hard enough funding the Government now with a 12.5% impost where profit margins are only ten per cent or less(minus cash flow)while also competing with the illegals who do not pay GST,how the hell are exporters going to find the extra 2.5% cash flow

#10 - don archer said:
2010-01-23 11:08 - (Reply)

Thank you for presenting us as we are, relaxed kiwis, to prince william. Getting harder on crims is good. Perhaps to make room for the violent one in prison, we should have more, & harsher home detention for the non-violent. The haiti crisis reminds me of an idea i proposed to the govt., in writing, and on more that one occasion. It would make nz popular, resolve our hospital waiting list problem, but no-one seems to be interested! Keep up the good work. I am a labour supported, but I think John Key is great Don

#11 - Don Donovan 2010-01-23 11:46 - (Reply)

TAX REFORM: 1.Why might I have to pay land tax when I already pay rates? 2. Why are my Australian imputation credits not credited in New Zealand?

#12 - Margaret 2010-01-23 14:16 - (Reply)

At last we are seeing some action from the people we voted in to office 15 months ago. While I like some of your policies I do object to the suggested land tax - we already pay plenty of this - it's called rates - and a lot of folk are already budgetting very carefully to pay these to local bodies. Please get together with your natural coalition partner - ACT - instead of getting into bed with those natives who we DID NOT expect you to cosy up to when we voted for a National Govt. They are generally takers, not givers, and yo will pay dearly at the next election unless you distance yourself from them.

#13 - Mohamed 2010-01-23 15:55 - (Reply)

I think following actions will benefit country in the medium run to long run. Following are long overdue steps. I. Effort to build an excellent, world-class tax system: This is a good step. Tax should apply to all types of assets and income equally. Currently tax system favors investment in properly. Property bubble has made more countries vulnerable time to time from USA, SPAIN, and DUBAI to Asia. I think it is a right time to address on tax system in property sector in New Zealand. NZ housing market has categorized as a one of the least affordable countries in the world next to Australia. By taking correct action in advance, we can avoid collapse of financial system, job market and financial companies in the future. I think policy makers should take action to introduce properly tax on sales sooner than later. New Zealand can develop as a global agricultural hub and have an opportunity to create global agricultural exchange. Food processing companies will have biggest growth during next 20 years. There will be more employment opportunities in this sector in addition to tourism sector. . I think we will have bright future in these two sectors during next 20 years. . 2. SAFER COMMUNITIES FOR KIWI FAMILIES 3. Announcement of eight tourism-marketing groups Definitely, these types of promotion activities will benefit tourism in New Zealand. .

#14 - Blake 2010-01-24 23:39 - (Reply)

Interesting report from the Tax Working Group. I voted for a National Govt to take the bull by the horns and tackle the hard issues, not to replace lost revenue from a lowering of the top tax rates by introducing new taxes. What we want is government with a small g and someone with the intestinal fortitude to make the hard but necessary decisions.

#15 - Graham Bryant 2010-01-25 12:57 - (Reply)

I agree with the tax reforms being introduced,One thing I think should happen is the tax rate should be higher for people who earn more than a $100000-00 a year,say 45% to 50% don't touch the GST if it goes up to 15% you will see inflation go up & folks will stop spending.Look at what happened in 1989 when Labour increased the rate of GST from 10% to 12-5%, the ecomony didn't recover till well into the 90s,so hit the big earners & not the ones who want to have a little in their pockets & try to save for their retirement.It's all very well for the so called think tank folks who think they know everything,they don't get hurt because most of them are in the bigger wage or salary bracket,Its the wage earner who keep this country up & running..Also give an incentive to the Manufacturer,he needs all the help ,not the banks of money lenders they are parasites look at what has happened in the last couple of years with these high flyers.

#16 - Fred Webster said:
2010-01-25 17:07 - (Reply)

I like the 3 Strikes policy, but they cleaned up New York with a No Tolerance Policy. Millions are spent removing Graffitti and repairing minor damage done by vandals. A court set up in the local Cop Shop, with the local JP or Senior Police Officer as the Judge with limits on sentences, Brought in charged and if convicted, sentenced right away

#17 - Bernie L 2010-01-27 12:24 - (Reply)

Ok, so we’ve been told by successive governments that they can’t afford to fund retirement in a sustainable way and that we should save for our own retirement needs. So as a wage earner with retirement just around the corner, I took my hard-earned savings which were being “gouged” by the finance industry away (phew!). After seeking professional advice, I invested in Rental Property. Successive governments had decided they didn’t want to be in the business providing rental accommodation to the masses, so they introduced tax relief for those of us who had some savings which we could “lock up” to be realized in our retirement. The LAQC mechanism supported this vision. For the LAQC to work, you had to have paid significant taxes for which there would be some recompense due to losses in the investment. Now John Key is going to remove this. So what do you think that will do to the economy? Simple! “Mum and Dad” Investors like us will sell up, incur huge losses and like so many are doing move to the “lucky country” (Australia). Bare in mind, typically, we are hard working, middle-income New Zealanders who have never asked the taxpayer for any handouts, paid 100’s of thousands of dollars in tax in our working lives, and who typically even fund their own healthcare needs. The exodus of small investors from the property market will cause a property slump, which will (short term) make property more affordable for younger folk although with student loans to service, the banks may not want to support them. The Mum and Dad investors will take their skills and what’s left of their hard-earned cash to Australia. So Mr. Key, how is this going to bridge the gap in living standards between Australia and New Zealand? My family will have lost our life’s savings if you go ahead with the removal of our tax rebate and the above scenario comes to fruition. It goes without saying that their will be at least 5 less votes for National in future! I suggest you give it some serious thought!

#18 - bill belton 2010-01-27 12:53 - (Reply)

Hi Mr Key I am pleased with your actions to date but even as a retired person I feel very strongly that the tax system that I have worked in all my life, mostly in self employment, needs a drastic change. Please be strong and take into account the huge knowledge of Sir Roger Douglas. We didn’t like his Labour Government, but in hindsight, we would be much better off today if they hadn’t stopped before making the full changes they had planned. You may not come across it, but in NZ the “Black Economy” is so vast that only GST can ever hope to capture it. It is so wide spread that it can never be taxed. Naturally, we need a tax free first level on earnings [say $25,000/$30,000] and a lower top tax/business tax of ideally 20%, but at least no more than 30%, to compensate. Take advantage of your great Team and your huge personal support to “fix” NZ once and for all. Also, if you support the Monarchy, and Honours system, why not restore the Privy Council as our highest court? That would help restore some of the terrible damage done by Margaret Wilson and the last Labour Government. Keep up the great job you are doing. Kind regards Bill

#19 - Graham R 2010-01-31 17:38 - (Reply)

A couple of comments:- It's about time something like the "Three strikes" policy was introduced - well done National, but I do wonder if you have gone far enough! Career criminals need to realise that regular New Zealanders have had enough and want to reclaim their country and their right to live in NZ without fear. Secondly - While I agree that the tax system needs restructuring,National needs to be VERY careful about how they go about it.My wife and I have been small property investors for over 15 years, slowly building a portfolio that would (hopefully) make our retirement more comfortable. We have purposly kept rents below market value to help those who need to rent, we have maintained our properties well and never had any major problems with tennants. If we have had to pay tax we have and if we were lucky enough to get a refund we have taken it and reinvested it into maintenance. We have both worked hard for over 30yrs with a vision of a comfortable retirement in NZ. I do agree that those who have blatently used property for short-term personal gain need to be targeted, NOT mum and dad investor trying to make a better retirement for themselves. A property tax which is variable according to length of ownership i.e the shorter you own a property the more tax you pay and say after 15 years NO tax is a thort. While we are concerned we also trust National to do the right thing.

#20 - Bob Devereux said:
2010-02-01 09:07 - (Reply)

Whilest I agree to the intent of the bill I believe it isnt enough where murder is concerned. The only answer to murder is hanging and to date the alternatives havent worked mush to the increasing cost to the country; and at what expense? Health for one-short of money taxes-to high another and all because of the increasing costs of housing the bad guys. How many more deaths caused by murderers are you going to let happen before it hits home-one of your friends or family maybe? HANGING FOR MURDER is the only way to deakl with this tragic problem.

#21 - Internet Marketing Tips said:
2010-02-03 12:07 - (Reply)

Great to hear particularly about the funding for marketing going to regions and sectors around New Zealand. Great marketing initiatives are essential for the promotion of our wonderful country, and to build the revenue that we can generate through tourism.


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