63 Comments
12 February 2010
Our Priorities for 2010
In this edition of Key Notes, I talk about the many economic and social issues on the Government's agenda for 2010, ranging from tax reform to lifting achievement in our schools.
Click here to watch my latest video journal.
OUR PRIORITIES FOR 2010
It’s great to be back in Parliament. Our team is getting stuck into the hard work, delivering on our promise of a brighter future for all New Zealanders – and making New Zealand the place our children and grandchildren want to call home.
On Tuesday I opened Parliament for the year by laying out the Government’s programme for 2010.
Our first priority is to lift the performance of our economy. We want to make New Zealand more prosperous, so it can provide well-paid jobs and better living standards for all New Zealanders and their families, and so it can provide the world-class public services we need. Click here for a summary of our economic priorities.
Our second priority is social sector reform. We need to better equip New Zealanders – and particularly young people – for the economic challenges they face. We want to lift achievement in our schools. We want to make our neighbourhoods safer for families. And we want better, faster, more convenient healthcare for all. Click here for a summary of our social priorities.
Alternatively, read my full speech here.
I particularly want to mention four parts of the speech:
1. A Growth-Enhancing Tax System
National agrees with the Tax Working Group that our tax system has major problems with integrity, fairness, and incentives. In Budget 2010 we will start reforming the tax system.
We want taxes that create incentives to work hard, save, and get ahead. We also want taxes that are fair. That’s why we are considering personal tax cuts across the board. And that’s why we are also carefully considering a modest increase in GST, to no more than 15 per cent. We’ll maintain Working For Families and compensate low to middle income earners if there is any increase in GST.
2. Science and Innovation
Our economic future relies on new ideas. This year we will help businesses grow by connecting them with our best scientists and researchers. We’ll invest in more science and business research, drive research into agricultural greenhouse emissions, fund open-access food development facilities, and reform Crown Research Institutes.
3. Unlocking our Resources
New Zealand’s natural resources have huge potential to boost our economy and create jobs. In 2010, we’ll work to unlock that potential by reducing red tape. We’ll drive a second phase of resource management reforms, look at extending mining on Crown-owned land, remove roadblocks to irrigation, and reform aquaculture. We’ll also promote investment in capital markets while strengthening protection for investors, and look at developing New Zealand as an Asia-Pacific hub for financial services.
4. Reforming Benefits
In 2010 we’ll deliver on our promise to reform the benefit system. We want to help people who can work get back to work. We’ll adjust the benefit abatement regime to encourage them. And we’ll make sure that welfare spending gets to those who need it most.
I’ll have more to say in coming months. In the meantime, watch video of my speech here.
LIFTING ACHIEVEMENT IN OUR SCHOOLS
I’ve been blown away by the huge response to our National Standards campaign. Thanks for your comments to last week’s Key Notes. It’s clear that there’s a lot of support for our plans to assess every child’s progress in reading, writing, and maths, and report this in plain English to parents. Click here for more information on National Standards.
BUILDING THE CYCLE TRAIL
Yesterday, the Ministry of Tourism announced that 13 projects will go to stage two of the next funding round for The New Zealand Cycle Trail. The projects are in: Tauranga, Opotiki/Gisborne, Rotorua, Taupo, Ruapehu, Hawke’s Bay, Nelson/Tasman, Westport, Greymouth, Mt Cook, Queenstown, Clutha, and Central Otago. These routes were chosen from 54 applications, and promise cycle trails of spectacular beauty in some of our most breathtaking scenery. Click here for a map of these projects and the Quick Start Trails already underway.
GETTING TO KNOW PRINCE WILLIAM
Were you in the crowd who met Prince William at the opening of the Supreme Court? See video of the walkabout here.
Have you ever wondered what it’s like to have a barbeque with Royalty? Watch footage here.
See my Waitangi Day snaps here
Best wishes
John Key 
Prime Minister
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Tweet#1 - Di sadler 2010-02-12 20:02 - (Reply)
I know it involves a lot of extra work , BUT if only you could take the GST off food (as per UK ) there would be little opposition to raising general GST across everything else. and the lower incomes would be able to feed their children well
#1.1 - kat 2010-02-15 19:58 - (Reply)
Well said Di sadler but not only food. It needs to be on all the basics to live. Land rates which increase in charges every year and are already a tax and with GST we are paying tax on tax. Then there is water rates a free element from God though I realize it cost to be treated but to pay GST tax for it as well??? Then there is power yes the greedy power suppliers who just increase their millions in profit each year just because they can while some like me for one has to turn our hot water off most the time to save on cost and now looking how to cut the cost even futher as yet another hike in price is coming - may have to think of cooking on the bbq instead of the stove next. I only wish I wasn't to old to start a new life in Australia.
#1.2 - Greg 2010-02-17 08:03 - (Reply)
I entirely disagree. One of the major advantages that NZ tax system has is its relative simplicity and we need to improve this further by aligning company, personal, and trust tax rates (putting accountants out of the tax minimisation business is a good goal in my view). GST is simple to administer because it covers everything. If there is a need then this should be filled through an appropriate agency such as work and income not through tinkering with an already great system.
#2 - Denis 2010-02-12 20:12 - (Reply)
John I have listened to you comment on the need for a fairer tax system and agree with the comments you have made re raising GST and the need to close the loop holes for property investors etc. Now I hear that you wont raise Gst if it affects the poor or Maori or loses the support of the Maori party. Given that the poor dont pay personal income tax and that working for families tries to bring those that dont work up to the same level as those that do and given that Maori have received billions and billions of dollars in settlements that as yet have not made any measureable difference to their poverty, or other issues, even though self determination over assets and the ability to undertake programs of betterment in the Maori tradition were cornerstones of these settlements. Also todate only a very small percentage of Hapu and Iwi members have received any benefit. Why back track. If your desire is to create a fair and equitiable system of tax that helps NZ close the gap with Australia and raise the living and economic standards of all. Then the people that pay the majority of tax must be given incentives to stay and help this economy grow. If you do not raise GST what will you? Borrow more to support those who believe they are owed a living and entrench the intergenerational thieft that is created by such borrwing. Its time to be brave and make the required changes. Labour did when they introduced Gst and other changes and look how NZ grew and developed. Show us that you do have a vision and the fortitude to carry it through and that you are not just thinking of the next election and how you can retain the baubles of office. Show us true leadership that is selfless. You will be remembered for your actions not the hoollow phrases you utter.
#2.1 - kat 2010-02-15 14:13 - (Reply)
To Denis. The bulk of NZ'ers who have a rental and I mean a rental, not several houses are people who do so as a long term investment for their super days. Therefore you will find these people do not presently get any income after paying the mortgage etc., Only the real wealthy with several homes presently receive income from rentals. Even MP's as been on the news with their homes and getting around a $1,000 a week for one. This is unlike the average invester who is planning for their future. The Maori billions of land payouts only go to a handful of the wealthy Maori's. I am not a Maori but my partner is and like the average Maori on the street he has never seen a cent of the millions paid to his Tainui tribe. We also have not seen the average Maori benefit in any way from the payouts. Closing the gap between NZ and Australia. How will increasing GST do this? It will only widen the gap. Australia only pay 10% GST, pay aprox 2/3rds of what we pay for petrol, are on much higher wages so how will the gap get closer by making the average Kiwi poorer????
#2.2 - kat 2010-02-15 20:29 - (Reply)
Denis your comment that the poor don't pay tax - how is this so??? not all people considered as poor are on a welfare benefit. I personally know of many poor workers and paying tax. But be careful of what you say as you never know when you may become one of those poor people. I am in my late 50's worked and paid taxes for 40 plus of those years then recently became so ill an hospitalized with a uncurable illnes forcing me out of the work force and reduced to being on an invalids benefit with no extra supplements. I was just like you and thought this was not going to happen to me nor would I have chose this over my more comfortable income I was used to getting.
#3 - Paul 2010-02-12 20:29 - (Reply)
John, Not bold enough! You should make the first $5000 of income tax free, scrap working for families and put GST up to 17.5%. Cut the top rate of tax to 33% and put the thresholds up to where they would have been had Cullen not used fiscal drag to fleece us all. With a three year parliament and MMP, you will never get a mandate like you have now. The opportunity has been lost for another ten years. I'm off to Australia!
#4 - Frank Just said:
2010-02-12 20:36 - (Reply)
I wonder about various political views about tax reforms. I suggest looking at increasing GST to 20% but all income below $100,000 becomes tax free. The result would be tax free to over 80% of the population, hence a very strong vote of the political party. Just - yes just a thought. Regards,
#5 - ray 2010-02-12 20:55 - (Reply)
A lot of god stuff here, but must say that I would be seriously disappointed if National allow the McKenzie Country to be turned into a large cow paddock! The intrinsic value of this piece of NZ cannot be over-estimated. Please, let's not trade this piece of the country for short-term financial gain for a limited number of already wealthy citizens!
#6 - Wendy Gray 2010-02-12 21:18 - (Reply)
I enjoy the newsletters and get both hope and despair at the news that come straight fromthe horses mouth as one knows its true and not all blown out of porportion by the media. You mention in regards to the modest 15% GTS increase that you'll be Working for Families for middle to low income earners - what about single people with no dependents living on own in own property who earn less than $30,000 - to what advantage will the 15% increase in GAST have for us (me) - its hard to keep food in the cupboard, power to house and keep up with increases in services and repairs to both property, insurances and vehicles etc ... It is hard for families out there Iknow but its no easier for those wholive on own and fall into a gap - not eligible for relief or tax cuts or family support or any income relief..
#7 - John Barnes 2010-02-12 21:31 - (Reply)
The package looks good. As we are taxed as we earn,taxed as we spend, and taxed on our savings, wouldn't it make sense to encourage personal saving by dropping the tax on that? which must be of benifit to the internal economy.
#8 - Rob 2010-02-12 21:44 - (Reply)
Hi John's PR team. While I don't expect John to read this - maybe you could pass through the sentiment of the e-mail. I'm a hard working Nzer - been so for all of my 49 years. Actually never typed/wrote/complained about much at all. Verbally I might have derided Helen's poor management of the economy - but thats all. So this is a first for me. I have saved and saved - and managed to buy an investment property. Zero mortgage, earns money, pays taxes. Whow - a dedicated NZer. But, looks like I will have to borrow money, buy more properties, claim Depn, interest,etc,etc and make a tax loss. John - why don't you just kill the Loss Attributing Qualifying Company regime. Yep - can't offset against your income. Pretty simple really. You WILL loose executive votes and those from the greedy - but not the old peoples votes - they don't borrow. Just to qualify myself - I'm a CA, own my own business (no, not as a CA), about to sell up and get a job !!! Paying around $150k - so expect its somewhere up there. Under 50. Cheers John (please don't let Labour pick up again in a year or two - I've suffered 9 years of torment. By all means tax the rich and GREEDY. Kill LAQC's.
#9 - Peter Leong 2010-02-12 21:50 - (Reply)
I support your 2010 Strategy. It is unfortunate that our leftist press never report on what you're telling me but instead skewed it negatively. NZ Herald is not pro-NZ at all. I am very sad. Keep up the good work.
#10 - Nigel Elder 2010-02-12 22:27 - (Reply)
A fair tax system yes, but also ones that gives us an incentive to get out and earn more, grow personal wealth and wean people off benefits. Working for families is being rorted more than investment property. And isn't it time the top tax bracket be adjusted to allow for inflation and wage growth?
#11 - Sarah Metcalfe 2010-02-12 22:28 - (Reply)
Re your plans for the economy: We are already just about the only country in the OECD who has GST on food. No one can CHOOSE not to buy food. We all have to. That's why other more grown-up governments don't tax it. Secondly, we are almost the only country in the OECD who has GST on local rates - i.e. a tax on a tax. I see nothing in your "plans for the economy" which help any of us. I am a sole trader (self-employed small trader). What with your changes to tax and the nonsense about ACC which means we get clobbered even further, I might as well give up and go on the dole. Thanks for nothing John. Why is it people who are self-made like you and Paula Bennett, forget what it felt like BEFORE you made it?
#12 - Dave Adam 2010-02-12 22:31 - (Reply)
John - you & National (who got my vote) promised to close the income gap with OZ through, for example, tax cuts to assist us save for our futures. But your words & actions this week appear quite the opposite - personal tax cuts will now be OFFSET by GST and other tax increases. As I calculate it my family will be paying more tax not less! Your "Step Change" speech focussed on TAX TAKE & GST, not on grand globally competitive economic strategy or closing the OZ gap. I admire Alan Bollard for speaking out about the OZ gap but didn't like John Keys' simplistic, optimistic response - basically "I believe she'll be right . . ." There are big strategic issues to be faced today for us Kiwis = sustainable tourism & immigration; growth of high value sectors; social equity & safety; managed mining versus conservation, particularly in our National Parks & ecological areas (no softly, softly here from you John - just a 'sledge hammer to crack a nut' approach). You & your Government seems to me to have been hijacked by power - your lust to win another term of power and grow/maintain the public sector coffers ($74 billion for 2009/10 and you are borrowing $250M per week!?!?) instead of cost cutting in the obese public sector cost & focussing on delivering meaningful added value to New Zealanders. You have lost significant political capital with me this week because in my household and businesses we just can't afford to make poor strategic or economic decisions. And I'm not happy to be funding yours and the public sectors right now. You've had good advisors telling you to reign in Government spending - just get on with it! Its time to demonstrate the leadership required.
#13 - Bruce Simpson said:
2010-02-12 22:32 - (Reply)
The Tax changes sound good but they have one huge flaw... For years now, successive governments have told NZers that they need to save more. We are told that we spend far too much of our income and don't save for the inevitable rainy day or retirement. But what if you have listened to government and the Reserve Bank Governor when they implore us to save our cash? Well The government decides to raise GST and that instantly devalues those savings because they will buy less food, less clothing, less petrol etc. What about those folks like myself who take self-dependence very seriously and now live off their savings without other income. How are *we* compensated for the sudden loss in the value of those savings by way of their reduced purchasing power? What can be learned from this? *Don't* save, just spend everything you earn because odds are, GST will rise again at some time in the future? And as for the treatment of R&D for science and technology -- what about the privately funded companies who are working on their own (soon to be devalued) capital to develop exciting new products and export-oriented technologies? How does National's plan to increase funding to CRIs help us? What's wrong with providing tax credits for R&D? Non-transferable tax credits are a far more effective way to make it easier for private industry to engage in R&D. If the companies concerned are unsuccessful, it has cost the taxpayer nothing. If the company is successful then we get the benefits of earnings from products that might not otherwise have seen the light of day. It's win-win. Come on John and Co -- I voted National but I expected a *lot* more than the weak-knee'd policies you're rolling out right now. I want a PM with vision and the courage required to *really* make NZ a match for Australia. I want someone who not only talks the talk but also walks the walk. Is that you John? Right now, I think not.
#13.1 - Derek Treeby 2010-02-13 08:18 - (Reply)
I agree heartedly with your comments and am suspicious of the coming tax reforms there by loosing confidence in what has been said and what is being done. Must say the BBQ was a great occasion Best change yet.
#14 - H Mills 2010-02-12 23:33 - (Reply)
1. A Growth-Enhancing Tax System At the moment we are middle income earners trying to get higher but it seems that the Goverment of the day would rather tax us harder so we cannot succeed . Raising GST would make my product more expensive and would lose sales which then means lower income , less tax paid. Maybe someone should start taxing sports clubs as it seems the country is paying a lot for injuries , lost work time etc and leave the small business man alone. The Labour goverment made me a benefitiary which was very degrading . We did not ask to be it was because our income at that point made us. If we earn over we are taxed right back to where we are now. JUST NOT RIGHT!! We voted National because you see the benefits of small business and it would seem that someone from Labour has put their crazy ideas in your heads. Please be careful with this decision as many small companies are relying on you !!! Thank You
#15 - P Adamson 2010-02-13 07:37 - (Reply)
Benefits-- Recently I found out many people are getting Winz help that don't require it they have their assets in trusts to cover up their income. Also ACC was paying (Could still be) an ex builder for back trouble he lives at Harwood on the Otago Peninsular. Some time ago he was doing the garden next door to us for a girlfriend who has since sold the house. He told us he was retired on ACC because of his back, at the same time he was complainig that the concrete being delivered to his property for the huge garage he was building had been late coming and he had spent a lot of the evening/night wheeling it in and laying the floor. WITH A BAD BACK?? Checks should be done to stop the system being ripped off. These two examples show there must be many more at a cost to all New Zealanders. There is no excuse for people being on an unemployment benefit for years, go where the work is or likely to be. This country has not improved with this type of dishonesty
#16 - Simon Guillemin 2010-02-13 07:45 - (Reply)
John, really applaud any attempt at changing the tax system to support those who want to work, or work harder to get ahead - and of course to encorage saving. We need to reward effort. In my view a huge disincentive is the secondary income tax which penalises those who take on a second job in order to get ahead. Couples should be able to combine their incomes for the purposes of calculating taxable income. We also need, in my view, to find a way of ensuring that anyone who is on a bemefit does not find that they are worse off finacially if they find a job. I also agree with others that we should either remove GST from food altogether, or have a lower rate of GST on some foods. But I can appreciate that this will be complex to achieve and may result in unexpected distortions and anomolies.
#17 - Chris Turland 2010-02-13 08:43 - (Reply)
An increase in GST is absolutely imperative! Even if the whole increase is given back to the lower income end it must be a winner. The thousands of people doing "cash" jobs will at least pay tax when they spend. Tourism is a red herring. 2.5% Will still keep NZ a much cheaper place to travel than Australia (even after their cheaper petrol)
#18 - David Kearney 2010-02-13 09:13 - (Reply)
Well Mr Key, may I suggest that you consider seriously altering the Tax Rules that affect the Hard Workers, People who make a effort for there families and constantly exceed 40 hours per week, once you go above 55 hours a week, The IRD really gut you. Surely people like me should be rewarded and commended for working hard. People with two jobs should have to pay minimun tax, if not none at all on there second job.
#19 - Tony Burrows 2010-02-13 09:19 - (Reply)
John, I prectised as a Chartered Accountant in UK specialising in tax for 40 years and have retired to NZ to be with the grandchildren. My self-administered pension scheme packed up in 2008 and I now live on $900 every 4 weeks from UK super plus savinga. I have been here since 2003 and do not get NZ super until 2013. Why do you not create a nil rate income tax band instead of reducing the top rate of income tax? That way the top rate payers would benefit at their top rate, but everyone would benefit fom the bottom up. Sort out the rorts creasted by family trusts and compsnies, and stop the depreciation allowance on let property and stop property losses being set off against general income. You would avoid a lot of stupid posturing from the Left.
#20 - allan baldock 2010-02-13 09:35 - (Reply)
I applaud the moves in education. But that's all. While it is often touted that the RMA needs reform I observe many pollies don't even understand the first thing about the RMA and changes are made as kneejerk reactions to single issues.The suggestion of further RMA reforms is frightening and I could certainly make suggestions about changes that could be made that would make a difference without gutting the Act.( my area of work) The best thing to do is to change the LGA and get rid of this idea that councils can do anything.The so-called power of general competence is responsible for major rate hikes.It's the LGA that needs reform ,not the RMA. The finance package is a let down .The best advice for the Govt would be to take heed of Ganeesh Nana from BERL who has it right.
#21 - Debbie 2010-02-13 10:03 - (Reply)
Hi John We are part of the weathertight homes scheme and am disappointed that you have not addressed the issues within this area. We are homeowners that bought a house and found out later it leaked. The current system supports everyone but the homeowner. Our legal is HUGE and we have spent 300,000 to date with repairs and legal (repairs have since failed) and to get to mediation - which was a sham. What is the government going to do for middle income earners in NZ who buy houses (and find out later they are leakers through no fault of their own) and have voted National all their lives. We have no confidence in buying another house as this country supports shoddy tradesman who complete the task, then put their assets into a trust or close their business and start again under a different name, repeating the process with another unfortunate homeowner. Then under weathertight homes scheme they get away with it. Why don't we at least get support with our legal so that we can fight back? If this is not addressed then you will see more middle NZ leave this country or not buy homes as this experience has just about destroyed us - our family, our retirement funds which we have been working hard for years to build (we are 47), increased our mortgage for failed repairs and legal and we are trapped in an asset that we cannot sell. The NZ public need the huge limitations in being involved with weathertight homes and that it is not a support network for homeowners as there are so many areas that you cannot claim - including legal. It has resulted in broken families, suicides and debt. The whole process at the end is really about who has any money and what they believe you will take to make it go away. In our case we cannot get what we are claiming through weathertight homes and therefore can't repair. In fact, we can't even get what it has cost us so far. I look forward to you addressing this massive issue which is growing by the day in NZ!
#22 - Bill Clague 2010-02-13 10:37 - (Reply)
Hi John, I met with your minister of education to outline concerns about the problem libraries are having. That is closure and charging for books. This is in contravention of UNESCO guidelines. She said she was not concerned and was not even prepared to address the issue and seemed unable to connect libraries to childrens education. NZ is one of only two countries in the free world that is starting to charge for use. Will National address this problem. Seems to be vital if you mean what you say about raising educational standards. Thanks, Bill.
#23 - Jane Ough 2010-02-13 11:50 - (Reply)
If I wanted to live in a country that decimated its pristine natural environments for the short term gain of extracting minerals I would live in Australia. Your intention to open up the conservation estate to mining is criminal. Greed now, let future generations suffer the consequences.
#25 - Frank Just said:
2010-02-13 19:24 - (Reply)
I did say earlier, as to the moan about GST, it never existed once. look at the Political advantage. less than 20% employeed recieve over $100,000 each year. Therefor increase GST to 20% and wipe tax for the 80% under income of over $100,000. It is then quite a political advantage. Regards, Frank Just.
#25.1 - Bruce Simpson said:
2010-02-13 20:07 - (Reply)
I agree with Frank. If you're going to increase GST then let's move to a tax system that focuses far more heavily on consumption taxes. Opt for the same system that so many other countries use in which the first $xx,000 of income is tax-free and make up the shortfall with GST. This would also help National fulfill its promise to reduce the cost of government by allowing a great number of IRD and WINZ employees to be released into the workforce where they could find some more productive employment -- thus slashing that cost from the state payroll. It makes no sense whatsoever (other than as a means of creating a culture of dependency) to take money from the poor (by way of tax), allow various government departments to bend, fold, mutiliate and spindle that money before finally returning it to the very people from whence it came in the first place. As I said before, John has talked the talk but seems to be a little short on walking the walk. If you want my vote again next election then I want to see a lot more than empty promises and idle rhetoric. Let's see some action, courage and inspiration!
#26 - Jo 2010-02-13 21:07 - (Reply)
People in this country should stop bleating about tax increases as health costs continue to soar and more folks go on pensions.If you want free healthcare and a pension then stop bleating.If you want lower taxes pay for your healthcare and go invest money for your retiremnet. I have earned very average money in my life but i SAVED which i feel most folks just don't want to do they just blame somebody else when costs or taxes rise. Get real and open your eyes
#27 - Raja Ganeshan said:
2010-02-14 10:21 - (Reply)
Dear John, My hats off to you; as you strive to take NZ in the right direction! Tax Cuts; increasing productivity; and encouraging people to save is the way to go. Going after the people who rort the system; being the social benefits or the ones not ready to pay their fare share; ie: property investers is also the right and fair action. Your targeting the GST is the right way to get the tax into Government coffers so that people who choose to spend; pay their share! Good Luck in your endeavours.
#28 - Margaret 2010-02-14 11:32 - (Reply)
Please look at the UK VAT (GST) system. Necessities such as food, childrens clothing, electricity, gas, rates etc are exempt. I certainly have no problem with luxuries being taxed at 15%. I would also suggest looking tax their tax regime! Under a certain figure is tax free and it then goes on a sliding scale. Superannuation is exempt. Other income is certainly taxed, but it means that those relying on Super only get the full benefit. I am not in favour of percentage rises as this simply widens the gap. Remember that the UK has had awful weather and all pensioners get a bonus to cover the winter heat bills, plus if the cold lasts longer than normal this is topped up. There are many things in the UK I would not want NZ to follow but we surely could pick out the best and disregard the worst. Food for thought!
#28.1 - Kat 2010-02-15 11:37 - (Reply)
Very wise words. Increasing GST will raise the cost of living way beyond many who are already stretched to the limit to make ends meet. The gap will only widen even further between the rich and poor. The rich business people will gain from big tax cuts and will not be affected by GST rises as they will just pass the extra cost on to the public. As to the likes of land rates well that is just increasing tax on tax.
#29 - John Chant 2010-02-14 11:46 - (Reply)
John. Having read your intentions for 2010 I failed to find any reference to reining in the excesses of the power suppliers. As usual they are raising the ante again as though they were a single entity much as the oil companies do when a change occurs that they can seize on as a justification. The small consumer continues to carry an unfair share of the burden and business and industry get off lightly. Time to gird your loins John and grasp this particular nettle firmly and with purpose. I look forward to a policy statement in this regard.
#30 - Ponny Jotter 2010-02-14 12:58 - (Reply)
Be bold and really cut into Income Tax with a lift of GST to 20%. A 6.6% cost increase but a great way to have a wider tax base and capture income tax cheats, proceeds of other crimes and the spend of tourists. A big reduction in the first tier of income or the introduction of a tax free tier to compensate for the GST lift. Also, as our numeracy skills are apparently poor, it will help the average punter with an easy calculation!
#30.1 - Kat 2010-02-15 14:39 - (Reply)
Your suggestion of 20% GST increase will be so wrong to tourism. Visitors will decrease not increase I just came back from Australia from visiting my sons (who are so better off in Aus) and while I was there I saw on their TV news that last year tourist to NZ had a high increase due to the lower cost to travel here mostly due to the difference in our dollar, therefore if everything cost more by icreasing GST the numer of visitors to our home land would drop. They would go elsewhere like the Islands for a holiday which according to the news came in second to NZ to travel to.
#31 - Jim O'Neill 2010-02-14 16:30 - (Reply)
Dear Prime Minister, I had arranged my wedding day for February 21 specifically so that I could take a large number of European tourists to the Starlight Symphony in the Domain on Saturday 20th. I was greatly saddened to find that due to the withdrawal of sponsorship by Skycity that for the first time in over twelve years the event was cancelled. It appears to me that such an iconic Auckland event was worthy of Ministry of Tourism and Ministry of Finance intervention considering its value to the economy as well as a unique wonderful night's entertainment for over 200,000 citizens and many millions raised for charitable causes. What a shame. Best regards, Jim O'Neill
#32 - Brian Gosney 2010-02-15 09:41 - (Reply)
Its time to get rid of ETS this fraudulent tax is a disgrace. MMGW has been debunked there never was any evidence.Credability of IPCC is in ruins to blame CO2 a trace gas in the atmosphere has never added up .Drop this tax now save egg on face while theres still time Cheers Brian
#33 - Margaret 2010-02-15 12:19 - (Reply)
Take GST off food....Have a tax allowance like Australia and the UK of say 5000 dollars ...UNLOCKING OUR RESOURCES like Lake Horowhenua Levin for a cycling/walking/picnicing a resource for everyone to enjoy....Create employment ....by making the road from Karamea to Nelson instead of paying unemployment benefit
#34 - Kathy 2010-02-15 13:09 - (Reply)
Some good comments but how can some think they will be better off with GST rising to 15% and getting a tax cut. Not all low income earners are on a benefit. Other than the greedy rich (if honest will admit that most make their wealth off the average and poor) the average NZ'er will be paying far more tax through a GST increase which will be added to everything petrol, food (including the everyday basis of bread and milk not to mention the expensive meat that some are only lucky enough to eat 2 or 3 times a week), land rates, water rates,(which I may add is an extra tax on tax) the ever rising cost of power, gas, phone, medical cost, car rego/wof etc, etc, etc. You will most likely find that a lot of products and srvices will also increase with the excuse due to the provider having to pay higher prices to make their product or service because of the GST increase. I for one voted for National in last elections (first time they got my vote) and they got my vote mainly because John Key said he would not raise GST. A suggestion would be go back to the old family benefit (this worked years ago) and do away with all these family assistance extras to help give some tax relief. Those genuine people on benefits eg., the elderly and the invalids who have been in the work force and paid taxes for many years or most their lives, then have developed serious health issues forcing them out of work will be lucky to get an increase of a couple of dollars each week as been told to compenstate for a GST increase and will never cover the rise in todays cost of living. The bottom line is only the greedy will want this tax change to go through.
#35 - Digby Crompton 2010-02-15 16:04 - (Reply)
GST is a tax on tax[ paye fbt acc even duty.This is not generally understood! PAYE is not a tax paid by the employee It ia a tax generated by the enterprise[the employer]and paid by same. PAYE not being a tax paid by employee, how come the PAYE component is used as an expense against net profit calculations for company[etc.] tax
#36 - Heather Firth 2010-02-15 16:08 - (Reply)
How about removing GST on fresh vegetables, fruit, fish and meat. This would make them more affordable for low income families, and also benefit the growers rather than the processors by increasing demand for fresh product. It would ultimately benefit health too, making healthy food much more competitively priced than poor quality food.
#36.1 - Bruce Simpson said:
2010-02-15 20:56 - (Reply)
Heather, instead of removing GST on fresh vegetables so the poor can better afford them, why not encourage the poor to grow their own fresh veg? This year my wife and I planted out a tiny patch of the back yard with some veges and ended up giving lots away to young families in the street -- because we simply ended up with too much for us to eat it all ourselves. Potatoes,peas, beetroot, silver-beet, zuchini, tomatoes, sweet-corn, lettuce, spring onions and more -- all from our tiny patch of dirt. Total cost -- a tiny fraction of the amount we're now saving by skipping the vege section at the supermarket. More money in the pocket is only *one* solution to the problems we face -- and not always the best one.
#37 - Colin Gibson 2010-02-16 10:33 - (Reply)
Dear Prime Minister, With regard to the proposed tax reforms,perhaps consideration should be given to a personal tax free allownce of say the first NZ$9000 p.a.,this would benefit especially the low income tax payers, as well as the higher income earners. The existing tax bands are in need reform. A 2.5% increase in GST appears sound and reasonable in todays climate. stimulating the economy and raising revenue is a fine balancing act, perhaps allowing personal tax relief on contributions to private medical and pension funds would see increased numbers of contributors, lower dependancey on State Health Care,higher levels of investment and profit by Insurance Co's. Higher levels of business tax revenue for the I.R.D. The overall benefit being more people in the tax envelope and less people trying to avoid paying tax by what ever means
#38 - cliff 2010-02-24 21:17 - (Reply)
Definitely think that reducing the top earners tax rate would be a BAD move. All that would do is put more $s into property, pushing up house prices!!
#39 - Graeme Stevenson 2010-03-01 21:03 - (Reply)
As a teacher of 25 years experience now retired 1. Children need to be assessed by teams of trained folk not part of the school. In the areas of dyslexia, discalcula, irlen lenses learning methods and other related issues to Specific Learning needs. 2. I have just heard of a child that attended the McKenzie school for learning disabled in Christchurch. He was there for a year and returned to his mother better adjusted. 3. The local school did not provide the support recommended by the McKenzie school and as a result the ‘aspergers” child’s behaviour deteriorated and has been expelled for bad behaviour. ( The catalist was that two children provoked him, his behaviour was bad and he was prevented from going on a school trip but the provokers were allowed to go on the trip ( ie bad behaviour was rewarded). This child needed a specialist tutor to continue the work started by McKenzie. The fault is not the child’s but the systems. The claim is there is no money to attend to these sorts of needs. 4. The child’s behaviour has deteriorated at this obvious injustice and the mother is planning on getting grandparents to work with the child on “Correspondence’. 5. As an adult I see most of my current male contacts in various states of Learning Disability and am ashamed to have been part of a system that abused these folk so badly that they came away from school with inferiorities as high as a sky scraper, massive sense of failure and much negative contact with the Police as a result of being failed by the education system. 6. The state schools have run “Progressive Achievement Tests” for many years in my time as a teacher and these surely could be called upon to show facts relating to the “Standards Tests’ you are introducing. Well done for trying to address the matter but you already have the resource for gathering the data so you would be better served developing item 8. 7. I have worked with “Specifically Learning Disabled” Children for 10 years and tutored 40 students at home with independent psych tests before and after and with 40 lesson tuition these children made massive improvements. 8. May I suggest that your focus should be on establishing more McKenzie schools around the country to get the specialist testing and tuition to the needy children. 9. One female student came to me at the age of 16 having completed secondary school with a reading age of 9 and a spelling age of 7. When asked ” What help were you given, the answer was “none” 10. I worked with a SYPs child as a tutor for a period but the system didn’t want to pay for tuition so sent him to a school with a boarding house attached, even though the child made massive strides in the three months? I had to work with him. 11. You will find a warehouse full of scientifically documented results like this with the National SPELD organisation. Your attempt with standards is admirable but the issues also need to be addressed. Will there be funds available to address the needs your tests will identify????? Will the tests actually identify issues of intimidation, abuse by the system, visual impairment, hearing difficulties, social and emotional stress that limits the child’s ability too learn? Will it address the issues of drug use and T,V misuse? Lastly will it address religious abuse and intolerance? All the best Graeme Stevenson
#40 - David Colley 2010-05-18 08:32 - (Reply)
Prime Minister I would like to add my voice to the list of people opposing the ETS. I expect you are now fully aware of the coverup and lies coming out of the Climate Research Unit in the UK. I'm sure you also know thet there is NO consensus among scientists as to the nature & cause of climate change. Furthermore, if you wish to introduce a scheme for charging for carbon why use an ETS which is open to the likes of Goldman Sachs manipulating prices when a simple tax collected and redistributed by the government would suffice.I urge you to delay or abandon the introduction of the ETS until more agreement is made on climate change and our trading partners introduce such schemes. This issue will cost the government when people begin to feel the financial effects of this.
#41 - Rob Morley-Smith 2010-05-18 08:59 - (Reply)
While many seem to be obsessed with the promised increase in GST, to my mind they should be more concerned about the impending ETS. John you have shown that you are a leader - you have quietly put many contentious issues to bed. I understand the possible 'trade' ramifications should you decide to postpone the ETS 'however' for the sake of your ongoing credibility, I suggest you stand tall and announce to whoever it is in this world who you are presently trying to appease, that given the present evidence, that the subject is far from proven or at this time even reasonably established that NZ will hold introduction of its ETS scheme while at the same time use all its resources to further a full understanding of the science and mans ability to reduce ongoing associated problems!
#41.1 - Paul Taylor 2010-05-19 01:02 - (Reply)
I agree with most comments posted, but it seems as if we are spitting into the wind. John Key and his cabinet have their ears closed to everything that is said here. They are swanning around the country being dinned and wined by the 'Maori' leadership with whom they are more in bed than ever Helen Clark and her lackeys. Total betrayal of their voting public. Electoral fraud on the highest level. Nothing less can be done than to vote them out come next year - that's too far off - and who have we as an alternative? The case for 'Catastrophic Anthropogenic Global Warming', to call it for what it really claims to be, has been completely blown out of the water by the revelations or Climate-Gate, yet the science was already telling the same story years ago but the propaganda machine drowned it out. To still go ahead with an ETS scheme is madness, or worse. It will cost the earth, and make not one scerrick of difference either to CO2 in the atmosphere or to global temperatures. Paul
#42 - Ann & Peter Aitken 2010-05-21 10:46 - (Reply)
We are disappointed that, having got a National led Government after 9 years of Labour mismanagement squandering tax payers money, our Prime Minister is insisting on proceeding with the ETS, in spite of our major trading partners having nothing to do with it. It is surprising that an apparently intelligent man can still not see the many flaws, errors & lies being perpetuated by various parties.
#42.1 - Bruce Simpson said:
2010-05-21 11:40 - (Reply)
You are correct -- the whole ETS system is fatally flawed right from the start. It has its basis on claims that is still being debated within the scientific community and, for every pro-anthropogenic climate change (ACC) proponent, you'll find an equally qualified person who disputes those claims. I can't help but feel (and call me a cynic if you must) that this is simply a bunch of bureaucrats and traders seeing a chance to introduce more rules, regulations and laws (so as to enhance their own powerbase) and make a killing by clipping the ticket on all those carbon trades. To be honest, I believe something as far-reaching and which will have a massive effect on the lives of all NZers should be put to a binding referendum. Of course, as we've seen (call me a cynic again), successive governments have shown a distinct dislike of *true* democracy and refuse to be bound by the wishes of the people they are allegedly elected to represent. In that case, do we really have a democracy or are we being conned?
#42.1.1 - Rob Morley-Smith 2010-05-21 14:24 - (Reply)
Sadly you have summed it up pretty well - I truly thought John Key was going to be a breath of fresh air and stand on his own two feet - especially in the face of overseas pressure - there is no doubt that his fear is that if we do not carry on with the ill conceived ETS then pressure will come onto our export markets - I believe this is a con - the increasing demand for example for our Dairy products is not going to wane because of a handful of idiot greenies who don't even know the time of day let alone anything as complex as the changes in climate that this planet has experienced ever since the year dot. He (John) has a chance to really shore up support for his brand of politics by coming out and changing his mind given the new circumstances that he now faces - I for one have supported National this time round but the support will not continue if he goes ahead with a scheme that at least deserves (on present evidence) to be postponed in the interim.
#43 - Paul Taylor 2010-05-26 23:34 - (Reply)
[quote]2. Science and Innovation Our economic future relies on new ideas. This year we will help businesses grow by connecting them with our best scientists and researchers. We’ll invest in more science and business research, drive research into agricultural greenhouse emissions, fund open-access food development facilities, and reform Crown Research Institutes.[/quote] ________________ I would recommend the reading of the report of the Non-governmental International Panel on Climate Change (NIPCC), Climate Change Reconsidered, released on Tuesday, June 2, 2009, for a balanced and scientifically credible summary that refutes the alarmism of the IPCC's reports. Although over 800 pages it is readable and well documented. The full report or individual chapters are available in PDF format. It is found at : -- [url]http://www.nipccreport.org/reports/2009/2009report.html[/url] Paul
#43.1 - Rob Morley-Smith 2010-05-30 18:47 - (Reply)
Again sadly, Nick Smith has made it very clear that scientific evidence and this Governments introduction of the ETS are in no way connected - this is now a purely political maneuver - bet Helen is clapping her hands as fast as they will go - we are being hoodwinked and if John Key thinks that he will get away with it then sadly I believe he is also in for a surprise. We are not stupid - yes there are those who are carried away upon a wave of fantasy and emotion but any thinking person should by now have got rid of any doubts about this ridiculous fiasco!
#44 - Paul Taylor 2010-06-02 00:08 - (Reply)
To better understand the issues behind the 'Climate Change' debate, look into the preceding formulation of methodologies to change the way we view ourselves. One article that does just that is found at : -- buythetruth.wordpress.com/2009/10/31/climate-change-and-the-death-of-science/ A short quote from that article gives a clue to the process : -- "What is going on is that science is no longer what we thought it was. It is now a tool in the hands of socialists, and the smart money is flowing into the pockets of ‘scientists’ who will serve their agenda. Follow the money. Whilst traditional physics and chemistry departments are closing in British universities, and there is a shortage of science teachers, there is an abundance of cash being poured into departments that will serve socialist ends, and no shortage of acolytes desirous to use this as a route to power. Once there was modern science, which was hard work; now we have postmodern science, where the quest for real, absolute truth is outdated, and ‘science’ is a wax nose that can be twisted in any direction to underpin the latest lying narrative in the pursuit of power. Except they didn’t call it ‘postmodern’ science because then we might smell a rat. They called it PNS (post-normal science) and hoped we wouldn’t notice. " You see, it isn't really about the science, it is about changing our beliefs in order to promote social agendas. Why would a National Government subscribe to neo-marxist dogma? Their beliefs have been 'moulded' so that they cannot do otherwise! Paul
#44.1 - Rob Morley-Smith 2010-06-02 08:45 - (Reply)
Paul If you are correct then we have to get rid of this National Government or somehow get them to honour the National party's basic agenda - which was definitely not marxist socialism. John Key comes across as an intelligent being and one would have to wonder why he is continuing to go down this road which will end in tears for him and huge damage to our country - it's 'real' workers - its economy as well as making us the butt of International jokes which as the world again begins to enter a colder period will surely happen. I agree 100% with your assessment of todays non science.
#45 - raymond nicks 2010-06-05 01:21 - (Reply)
The ETS is shrouded in conspiracy and doubt but it's underlying purpose is to reduce carbon emissions. Higher levels of carbon in the atmosphere is as far as it has been studied the main cause for denser snow fall at altitude, higher volumes of snow melt, faster glacial melt and to finish it off higher sea levels. If this ETS has evil agendas then have it scraped but make sure you have a plan b so we as NZers can adapt to environmental change.
#45.1 - Bruce Simpson said:
2010-06-06 09:14 - (Reply)
The point is that even if anthropogenic global warming is real (and although the weight of evidence might support that there are still plenty of dissenting voices within the ranks of the scientific community) NZ would be far better advised to use its money to adapt to the climate demands of the future -- rather than just send money off to satisfy the demands of our Kyoto overlords. And, if we're going to take the word of scientists that AGW is real then we ought to also acknowledge that those same scientists tell us we now have no hope of avoiding massive global climate change - even if we stop *all* carbon emissions tomorrow. Instead of taxing citizens and industry for their carbon emissions and paying our Kyoto obligations we should instead take a self-contained approach to mitigating AGW and adapting to its effects. For example, carbon taxes and rising fuel-prices will kill the flow of international tourists to NZ. Not only will it be seen as environmentally destructive to fly from Europe, the USA or Asia to NZ but it will also become prohibitively expensive to do so. Also, regardless of its validity, our competitor in key export markets will use "food miles" to taint our products. So why don't we do some *really* clever stuff like build a small fleet of wind-powered cruise vessels that can offer overseas tourists a "zero carbon" trip to NZ? Why don't we foster a local electric vehicle industry so that when those tourists get here they can self-drive around the country in another zero-carbon experience? The best way we can survive the challenges that AGW will pose to our economy is to turn a problem into a selling-feature. Let's set up industries that turn NZ into "the lowest carbon holiday location in the world". John's cycle-way is one step in that direction but let's face it, that does nothing for the huge number of rich, middle-aged tourists from Europe, N.America, Asia and Australia that want a low-carbon and *comfortable* experience. As someone who works primarily in "ideas" and developing those ideas into commercial successes (hence I've been completely ignored by JK's budget) I can see many other avenues whereby NZ can leverage AGW to its advantage. Those avenues do *not* include the Kyoto ETS. Kyoto is a Catholic proposal that says "you must do penance for your (carbon) sins so we can all feel better". That approach may be a "feel-good" strategy but ultimately it doesn't really address either the cause or the effects of the real problem. John, drop me a line if you're interested in exploring some *real* ways that NZ can leverage AGW to its significant gain while also reducing our carbon emissions.
#45.2 - Rob Morley-Smith 2010-06-06 09:27 - (Reply)
Raymond - It is good to be aware of our Planet and to do all we can to live in harmony with it - it is the only one we have so there should be no argument. On the other hand the planet is under the rule of Mother Nature, a power all of its own, and only sheer arrogance on the part of some men would challenge that fact. As an example (and this can be easily verified) The volcano in Iceland has completely negated every action that man has taken over the past five years to reduce pollution/CO2/Methane etc etc so at present regardless of Kyoto or any other efforts, we are no better off - Mother Nature is in control - not us! It is presently calculated that if the volcano continues to be active for the next month, then it will take a least a decade of concerted 'real' effort (not just taxing people) to redress the position we are presently in (Assuming that is desirable - but that is another debate). As a further matter of interest, did you know that science measures the stats produced by volcanoes and that Mt St Helens threw more pollution into our atmosphere than all the pollution man has put into the air during his total time on earth - once you get the awesome power of Mother Nature into perspective then you can realize how futile taxing a few people for something they have almost no influence over, then the easier you will sleep in your bed!
#45.3 - Paul Taylor 2010-06-08 22:32 - (Reply)
Raymond, you said "Higher levels of carbon in the atmosphere is as far as it has been studied the main cause for denser snow fall at altitude, higher volumes of snow melt, faster glacial melt and to finish it off higher sea levels." However nobody has ever claimed that atmospheric CO2 can have any direct effect other than a warming one. Since we have seen no warming for the past 15 years it is entirely contrary to science to claim that these secondary effects are the result of increased atmospheric CO2. That is a logical non-sequitur. Hence, it appears that reducing atmospheric CO2 will change nothing but will impoverish many and send many to an early grave. Unless that is the real objective then the ETS should be scrapped! Paul
#46 - jon 2010-06-09 17:58 - (Reply)
At last, an impartial look at the case for AGW. papers.ssrn.com/sol3/papers.cfm?abstract_id=1612851## Mr Key would do well to give it a good read.
