Category: Election 2023

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Questionable assumptions, untested numbers in National’s tax plan

Source: Council of Trade Unions – CTU

The tax plan set out by National is propped up with questionable assumptions and untested numbers, say the New Zealand Council of Trade Unions.

NZCTU Economist Craig Renney said the plan has generated many more questions than it answers.

“According to their plan, they will generate $3 billion from foreign buyers, $716 million from foreign casino operators.

“There is no evidence that these numbers are possible, nor how they will be delivered. That is up to $3.6 billion that will need to be found from even deeper cuts to public services.

National also wants to cut spending on items such as free prescriptions, public transport support, and income support for those on the very lowest incomes.

This tax package cuts $2.3 billion of spending on tackling climate change – which protects jobs, incomes, and communities – and then gives $2.3 billion to landlords in tax advantages.

“This shows how out of touch National is on the issues that matter to New Zealanders,” said Renney.

According to IRD, 2.3 million New Zealanders earned less than $44,000 a year, meaning that they will be getting $2.15 a week from this package.

“That’s 56% of all income taxpayers. For them, this is not cost of living support it’s an insult. Meanwhile, those who own multiple homes will be in for billions of dollars of government support.

“There is nothing in this package that supports sustainable economic growth, helps to grow jobs, and there is a real risk that it will simply stoke further inflation and housing speculation.

 “We still haven’t seen Nationals plan for how it will fund schools and hospitals. How it will lift children out of poverty. How it will build additional housing for those in need.

“This tax package simply adds more questions on top. It’s not clear the numbers add up, and it’s not clear that National shares New Zealanders priorities.”

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90-day trials – didn’t work then, won’t work now

Source: Council of Trade Unions – CTU

Unions across the country have slammed the National Party’s proposal to reintroduce 90-day trials, and say it would undermine fundamental workplace rights in New Zealand.

NZ Council of Trade Unions President Richard Wagstaff said 90-day trials were outdated, ineffective, and lazy policy.

“Getting ‘back on track’ as National puts it, clearly means a return to policies that are bad for working people.

“90-day trials are not a mechanism to make hiring workers easier. They only make it easier for businesses to fire them.” 

Trial periods have proven to be ineffective. Treasury funded research found no evidence that the ability to use trial periods significantly increased firms’ overall hiring.

Additionally, there was no evidence that the policy substantially increased short-term hiring.

The study did find that many employees faced increased uncertainty about their job security in the months after their hiring.

Unite National Secretary John Crocker said the policy would disproportionately impact workers that were young and on low incomes.

“This policy would disadvantage vulnerable workers, like young people or those just entering the workforce, while allowing bad employers to fire people with impunity.

“Workers can already be fired – but it has to be done fairly and reasonably. National’s proposal is to protect unfair and unreasonable employers from any consequences.”

E tū Director Sarah Thompson dismissed the policy as anti-evidence and anti-worker.

“During a cost-of-living crisis, workers and our families need better pay, conditions, and job security – things National seems dead set on eroding through talk of 90-day trials, and the repeal of Fair Pay Agreements.”

“This is a failed policy from the past that exists solely to seduce the National Party’s business donors,” said Dennis Maga, FIRST Union General Secretary. “This would make life worse in New Zealand for anyone who doesn’t already run a very large and exploitative business.”