Category: ACT Party

Source: ACT Party

Headline: Shane Jones’ gravy train travels south to Taranaki

“Shane Jones’ corporate welfare gravy train has continued its travels south to Taranaki today”, says ACT Leader David Seymour. 

“The Provincial Growth Fund is a continuation of the crony capitalism of former Economic Development Minister Simon Bridges. Although it has a new name, the logic is identical: handouts for votes. 

“Aside from securing support for NZ First in the provinces, there is no justification for this fund. 

“More economic activity in Taranaki will just mean less economic activity elsewhere in New Zealand. No new wealth is being created. In fact, wealth is being destroyed through higher taxes.  

“Tourism operators around the country are being taxed to fund $400,000 to determine the value of a state highway to the Taranaki tourism sector. 

“Restaurants are being taxed to fund $175,000 to identify ‘food-related opportunities’. 

“This is crony capitalism on a massive scale. If you want to make it in Shane Jones’ economy, it’s about who you know, not what you know.

“Economic ventures should stand and fall on their own merits, without having to rely on government”, says Mr Seymour.

Source: ACT Party

Headline: Tax Working Group to write Labour election policy

“It’s now clear that the real task of the taxpayer-funded Tax Working Group is to write the Labour Party’s 2020 election tax policy”, says ACT Leader David Seymour.

“Last month, former Labour Party Deputy Leader Michael Cullen floated eight new taxes or types of tax: a financial transactions tax, a wealth tax, an equalisation tax, a capital gains tax, a land tax, a progressive company tax, environmental taxes and behavioural taxes.

“Today in Parliament, the Associate Finance Minister was unwilling to rule out introducing any of them. 

“He also all but confirmed that the Tax Working Group’s recommendations will form the basis of the Labour Party’s 2020 election tax policy.

“Not content to increase the complexity of the tax system and the burden faced by hardworking New Zealanders, the Government is using the Tax Working Group as a think tank to write Labour Party policy. That is simply outrageous.

“The only silver lining for New Zealanders is that they will have the opportunity to deliver their verdict on this Government’s economic vandalism before it can be fully enacted”, says Mr Seymour. 

Source: ACT Party

Headline: Adams slams former Transport Minister Bridges

“National Finance Spokesperson Amy Adams has slammed the policies of former Transport Minister Simon Bridges”, says ACT Leader David Seymour.

“Yesterday, the Government revealed it was proposing a fuel tax increase of between 9 and 12 cents a litre. Aucklanders face hikes of 20 cents a litre if a regional fuel tax is also introduced.

“On Twitter, Adams slammed the move as a ‘tax and spend Labour Government…in full force.’

“However, documents released under the Official Information Act show that former Transport Minister, and now National Leader, Simon Bridges was also considering increasing fuel taxes.

“It is the height of hypocrisy for the Nats to criticise a move they were ready to implement themselves.

“National’s track record suggests they are no better than Labour when it comes to taxing and spending New Zealanders’ money.

“The economic policies of this Government will be an absolute disaster for New Zealand.

“But if National believe they can return to Government by articulating a vision for New Zealand that is simply ‘Anyone But Labour’, they are in for a rude awakening.

“Only a strong ACT Party will persuade National to cut taxes, wasteful spending, and red tape, and reform the Resource Management Act and Superannuation”, says Mr Seymour.

Source: ACT Party

Headline: Provincial Growth Fund gives millions to Shane Jones-connected project

“Shane Jones has big questions to answer after his Provincial Growth Fund gave millions to a project he once chaired”, says ACT Leader David Seymour.

On 23 February, $4.6 million of funding was announced for the Manea Footprints of Kupe Cultural Heritage and Education Centre in the first round of the Provincial Growth Fund.

 

“A media report from March 2015 shows that Mr Jones was to chair the Manea project and that it was struggling to obtain funding under the then-National Government.

“Last month, in response to a written question, the Minister confirmed he had a conflict of interest in relation to the project.

“He must now come clean on the exact nature of his current relationship with the project and whether he played any role in the decision to provide it with money through his Provincial Growth Fund.

“The Provincial Growth Fund will dispense $3 billion over the next three years. It has already been rocked by allegations of mismanagement.

“The people of New Zealand must be reassured by Mr Jones that conflicts of interest are being well-managed and that his personal connection to this project played no role in the decision to provide it with funding”, says Mr Seymour.

Source: ACT Party

Headline: Hawaii shows New Zealand the way on Assisted Dying

“Hawaiian Senators have shown true compassion to people suffering from terminal illnesses,” says ACT Leader David Seymour. “Last week the “Our Care, Our Choice Act” passed the Senate with near unanimous support, 23-2, in favour of assisted dying and end of life choice.”

“Hawaii will now become the seventh U.S. state to legalise assisted dying following California, Colorado, Montana, Oregon, Vermont, and Washington.”

It follows overwhelming support of assisted dying in Hawaii with the House of Representatives voting 39-12 in favour of the law change and the Bill gaining Hawaiian Governor David Ige’s personal endorsement, as well as support from the Department of the Attorney General and the Department of Health.

“I’m encouraged to see courageous steps being taken on assisted dying overseas while our Justice Committee is considering the End of Life Choice Bill and over 30,000 public submissions in New Zealand.”

“It shows that New Zealand is not a world-leader on assisted dying and there is vast international evidence and expertise available for the Committee to study when reviewing the Bill.”

“There is now over 120 million people living in a jurisdiction with assisted dying laws.”

“It’s time that New Zealand followed Hawaii, Victoria, California, and Canada which have legalised assisted dying in the last two years, and returns to our tradition of liberal reform.”

Source: ACT Party

Headline: Govt’s botched handling of charters continues

“Revelations that the Government’s utu against charter schools may cost taxpayers $20 million show how badly Chris Hipkins has handled them,” says ACT Leader David Seymour, who was responsible for charter schools as Under-Secretary in the previous Government.

“The schools were contracted to deliver a service, with compensation for reasonable costs if those contracts were terminated early. The 16 contracted schools can each claim up to $1 million in compensation for committed costs, while the six schools that were contracted last year received a total of $3.4 million in start-up costs.

“This Government knows it costs to break contracts. The Speech from the Throne said all existing contracts to build new irrigation infrastructure would be honoured.

“They were not prepared to risk breaking those contracts, but somehow concrete culverts deserve more consideration than a child’s education.

“Instead of honouring the contracts, the Minister of Education has made hostile, prejudiced statements against the schools right from the get-go. He has suppressed the Martin Jenkins final report on the schools performance to date. He has given the schools a close-or-be-closed ultimatum with little certainty over their future.

“National Education Spokesperson Nikki Kaye has oversimplified saying it is costing the taxpayer $20 million to change a name. Charter school operators would be more than happy to continue operating if the change was in name only.

“In practice, conversion to Special Character Schools status will mean:

• No control over funding. Instead of cashed-up funding, the schools will be beholden to the Ministry of Education and its funding formulas;

• No management autonomy. Despite the schools being praised for innovative management structures, they will be forced into one-size-fits-all model;

• No control over contracts. They will have to use the union contracts preferred by Labour’s backers.

“If only it was only a name change!

“It is little wonder that 60 per cent of voters believe the Government has handled the charter school issue badly”, says Mr Seymour.

Source: ACT Party

Headline: Free Press Monday 2 April 2018 -The Government’s Weird War on the Poor

Chaos in the Beltway

Media are hysterical over the Government’s various disasters from the Curran-Hirschfeld debacle to the absence of Russian spies in New Zealand, and New Zealand First heavying opposition MPs over Regional Growth Funding in their electorates. The honeymoon is over early and Easter weekend political columns read like bitter break up letters to Jacinda Ardern. We doubt that much of it will affect polling in itself but, make no mistake, the Government is facing the beginning of the end at its beginning.

Real Issues

Governments don’t win and lose on issues that beltway journos love. Nobody who’s listened to Red Radio will be surprised that the Radio New Zealand’s director of programing had a cozy relationship with a left-wing Minister who wanted to give them money. If there were only two ‘undeclared intelligence officers’ in Australia, who would be surprised if the Russians couldn’t afford to send one here? The real issues are about economic opportunity.

The Government’s Weird War on the Poor

The strangest thing this Government is doing is systematically attacking the people who voted for it. This week Free Press lists the many and varied ways that the Government is attacking the poorest New Zealanders. It seems that Wellington bureaucrats cum politicians who misunderstand economics are accidentally knee capping their own constituency.

Why Should You Care?

Even if none of these policies directly affect you, you’ll pay for them. This Government has never seen a problem it couldn’t solve by taxing you more and giving the money to those affected by its various other failures. For example, transfers to help people afford housing in an overheated market were already over $2 billion under National, they are forecast to grow at over $100 million per year minimum.

Partnership Schools

Free Press readers know that Partnership Schools were an ACT Party labour of love. We used our free market principles to give choice and opportunity to those who might not be able to afford to move into a different school zone or send their kids to an independent school. They became official policy of the Iwi Chairs Forum, and now the Government is abolishing them while suppressing taxpayer funded reporting on their performance.

Minimum Wages

On the subject of ignoring advice, a taxpayer funded report told the Government that raising the minimum wage would destroy 3,000 jobs. They will be lost to exactly the people whose best hope of upskilling was a start in the labour market. The Government would rather they sat at home on a $200 per week benefit than earning $15.75 an hour.

90 Day Trials

ACT’s policy of a 90-day trial has given thousands a start in the labour market when employers mightn’t have otherwise taken a chance on them. As if hiking the minimum wage didn’t destroy enough opportunity, the Government has removed 90-day trials from any workplace with more than 20 staff.

Petrol Tax

The Government’s 10 cent petrol tax will hit; those who live in farther out suburbs with longer commutes and less reliable public transport, those who drive older, less economical vehicles, and those who have less disposable income the hardest.

Ring Fencing Property Tax Losses

The Inland Revenue Department has announced initial discussions on ring fencing tax losses on investment properties. Negative gearing is, for better or worse, a massive subsidy to renters. Unless the Department knows how to reduce landlords’ costs somehow, then ring fencing their tax losses will give landlords only one option: put up rents.

Capital Gains Tax

The Capital Gains Tax (sorry bright line test) was introduced by National. ACT predicted that the two-year bright line test would be extended when the Government changed. Here we are. Watching National try to argue that Labour have introduced a Capital Gains Tax by extending their own policy would have been amusing if it wasn’t so serious. Needless to say, in a tight market, the cost will be passed from the owners of investment property to their tenants.

Free Tertiary Education

As a general rule, kids from wealthier homes are more likely to go to school, succeed at school, graduate to tertiary education, and do more expensive courses once they get there. The biggest beneficiaries of free tertiary education will be wealthier kids (until they have to pay higher taxes for the rest of their lives).

Meanwhile at ACT

If you are an ACT Member in Christchurch, our next regional conference will be on April 22^nd. We have had very successful and well attended conferences in Auckland, Wellington, and Hamilton, and the Christchurch will be the last in the series. At the completion of this member consultation, we will be going into phase II of our Party Relaunch. If you are a member in the South Island and have not received an invitation to the April 22^nd Regional Conference, please contact danae.smith@act.org.nz

Source: ACT Party

Headline: Government begins killing 3000 jobs this weekend

“By increasing the minimum wage to $16.50 an hour, the Government is condemning 3000 young, unskilled workers to the scrapheap”, says ACT Leader David Seymour.

Official analysis by the Ministry for Business, Innovation and Employment shows the ‘restraint on employment’ as a result of the minimum wage hike could be about 3000 jobs.

“In a classic example of good intentions and poor results, some of New Zealand’s most vulnerable workers will be stripped of an opportunity to gain valuable skills and work experience.

“Official advice to the Minister of Finance also shows minimum wage increases don’t increase productivity or economic growth, and are a poor way of tackling poverty given being on the minimum wage is a transitional stage for many workers.

“The pressure on vulnerable workers will only increase as the Government commits to a minimum wage of $20 an hour by 2021.

“New Zealand already has one of the highest minimum wages in the Western world. This means that the potential for job losses in future is even greater.

“The Government must instead focus on the underlying drivers of a high-productivity, high-wage economy – most importantly, a world-class education system where parents and students have choice.

“Forcing businesses to pay workers more than those workers can produce is the simplest recipe for higher unemployment”, says Mr Seymour.

Source: ACT Party

Headline: Capital Gains Tax in all but name

“Tonight, we have a capital gains tax in all but name, and the National Party is as responsible as the Government,” says ACT Leader David Seymour.

“Tonight’s passage of the Taxation (Employment Income and Remedial Matters) Bill means homes bought and sold within five years will be subject to tax on capital gains.

“The five year bright-line test means that many New Zealanders will find themselves paying tax when they sell a home.

“Amy Adams’ contortions on the Bill would qualify her for Cirque du Soleil. She tries to claim that a five-year bright line test is a stealth capital gains tax but the two-year bright line tax introduced by National was not.

“Adams leaned on the IRD’s report on the Bill, more for support than illumination. Contrary to her claims in the House, the IRD’s Regulatory Impact Statement does not say a two-year bright line test will better catch speculators than a five-year test.

“The lesson for National and voters on the right is this: taxes are like acorns, they grow. You don’t fight taxes by introducing them and then complaining when they grow.

“The two-year bright line test should never have been introduced. There is no evidence that a capital gains tax charged over any length of time will reduce house prices as claimed. Some of the worst housing affordability in the world is in Sydney, Vancouver, London and Los Angeles, all cities with capital gains taxes.

“This a sad day for New Zealanders and the quality of our policy settings. We now have a more complicated tax system with no useful benefits to New Zealanders”, says Mr Seymour.

Source: ACT Party

Headline: Poor hit from all angles with regional fuel tax

“The poorest Aucklanders will be in hit in at least three different ways with Phil Twyford’s new regional fuel tax”, says ACT Leader David Seymour. 

“Grant Robertson doled out $40 a week to many families with children in his ‘Families Package’. Now Phil Twyford will take back four weeks’ worth of Families Package payments with a new tax that will cost the average household $160 a year.

Legislation to enable the regional fuel tax will begin its first reading in Parliament today.

“The government’s regulatory impact statement shows poorer Aucklanders will be the hardest hit for three reasons.

“First, they use more fuel during their commute given they often live further from the city centre.

“Second, they are less likely to be able to access electric and newer fuel efficient vehicles meaning they use even more fuel.

“Finally, according to Westpac, increased fuel costs will put upward pressure on the prices of everyday goods and services.

“Mangere Budgeting Services Trust Chief Executive Darryl Evans has echoed these sentiments, saying the city’s poorest families will be among those hardest hit by the new tax. 

“The real kicker, though, is that Aucklanders aren’t even being told which transport projects the tax will fund”, says Mr Seymour.