Dear Friend,
Day two in isolation – we hope that you and your family are safe and comfortable in our new albeit temporary 'way of life'. It's time to pull together, apart.
The Taxpayers' Union team is fortunate. We can work from home, and had already been trialling this. (In fact, I've been working from self-isolation since I returned from overseas twelve days ago.)
As you will see, we're keeping busy representing taxpayers in this turbulent time.
Our new podcast
<[link removed]>
With circumstances changing so quickly, we've brought forward the launch of Taxpayer Talk, our new podcast.
In our first episodes last week, we sat down with Taxpayer Caucus <[link removed]> member, Stuff columnist and Magic Talk contributor Damian Grant.
They say you can't find a libertarian in a pandemic, but Damian appears to prove that wrong. Damian debated Joe Ascroft on the role of Government spending in the current economic crisis and why Damien thinks our paper calling for the types of economic support the Government has since announced <[link removed]> is wrong. You can listen to that here <[link removed]> (or here via Apple Podcasts <[link removed]> or Spotify <[link removed]>).
On the other side of the fence, we spoke to Michael Reddell – a former Board member of the IMF, and Head of Financial Markets at the RBNZ – who is pushing for much more radical proposals for government intervention and taxpayer-funded support. Michael wants an ACC-style income guarantee covering everyone for 80% of last year's taxable income. You can listen to that here <[link removed]> (or here via Apple Podcasts <[link removed]>, or Spotify <[link removed]>).
Nationwide rates freeze: local government lobby group panics
A week ago we wrote to every mayor in the country calling on local and regional councils to do their bit for economic relief by implementing a freeze on rates.
It seems that some mayors, unwilling to make a commitment either way, approached Local Government New Zealand (LGNZ) about our letter.
On Saturday LGNZ's Dave Cull (pictured) released a statement to the media <[link removed]> saying "a request from the Taxpayers’ Union to implement a 12-month rates freeze is misguided and has the potential to put the brakes on economic recovery."
He's wrong. Rates are bluntly levied on rateable values. This means that people on lower incomes pay a larger proportion of their earnings on rates than higher earners. The flip side is that rates relief means more money in the pockets of those lower earners who are likely to spend any extra income in their community, stimulating the economy.
Some councils are already getting the message
LGNZ is nervous about our campaign because they know that if just one council agrees to freeze rates, there will be massive public pressure on others to follow suit.
It's already happening. Since we launched our campaign, Waikato Regional Council <[link removed]> and Dunedin City Council <[link removed]> have both signaled they'll be freezing rates. Dunedin's leadership team are even taking salary cuts!
Meanwhile:
- Marlborough District Council <[link removed]> will vote on a near-freeze, and local MP Nick Smith has called on neighbouring councils to do the same.
- Wellington City Council <[link removed]> has deferred a voteon a 9.2% rate hike while it considers options for rates mitigation.
- Hutt City Council <[link removed]> plans a 'significant' reduction in a scheduled 7.9% rate hike.
- At Christchurch City Council <[link removed]>, six councillors have asked the Mayor to consider a rates freeze.
- Auckland Council <[link removed]> still plans to proceed with scheduled rate hikes.
All in all, we're confident we can push more many more councils over the line – so long as we maintain the pressure.
You can help by sharing our petition on Facebook <[link removed]>. You can also ensure the petition reaches more ratepayers by chipping in to our campaign fund <[link removed]> for online advertising.
Meanwhile, we are now contacting every councillor in the country, informing them that already more than 4,000 New Zealanders have backed the campaign.Watch this space.
Special interest bailouts for artists
For weeks now, we've called on the Government to avoid bailouts for specific or favoured sectors – the effects of COVID-19 are across the whole economy. While the politicians seem to get it, the unelected bureaucrats at Creative New Zealand missed the memo.
Creative New Zealand has decided to spend $4.5 million <[link removed]> bailing out the already-subsidised arts sector, on top of the support offered to all employers and beneficiaries.
What makes artists more deserving than every other business owner?
We say this money would be far better spent on front line health services or general economic relief.
Thank you for your support,
Louis Houlbrooke
Campaigns Manager
New Zealand Taxpayers' Union
<[link removed]>
Media coverage:
Stuff Coronavirus: No word on rates rise freeze for Hauraki, Thames-Coromandel <[link removed]>
Nelson Mail Coronavirus: Nelson MP Nick Smith calls for councils to can planned rates rises <[link removed]>
Waikato Times Coronavirus: Call for councils to 'tighten their belts' <[link removed]>
Point of Order Leftie writer champions an idea which found favour with Milton Friedman for getting the state out of our lives <[link removed]>
Kiwiblog Taxpayer Talk <[link removed]>
KiwiblogRates freeze needed <[link removed]>
Nelson Mail Coronavirus: Pandemic prompts Tasman District Council to chlorinate water supplies <[link removed]>
LGNZ Focused Spending Needed To Combat Economic Impacts Of COVID-19 <[link removed]>
The Press Coronavirus: Business help welcomed for travel ban with 'far reaching' effects <[link removed]>
Gordon Campbell On The Sudden Clamour For Government Bailouts <[link removed]>
Homepaddock Curate's egg package <[link removed]>
Stuff Coronavirus: Business figures hopeful that economic package will help Covid-19 crisis <[link removed]>
Dominion Post Wellington mayor's high-priced leadership course <[link removed]>
Kiwiblog The Taxpayers’ Union eight recommendations for the economic package <[link removed]>
Point of Order Blogger sees red at Green co-leader’s urging the handout of dole money without question <[link removed]>
1 News Pressure mounts on Auckland and Christchurch mayors, over donations investigation <[link removed]>
Stuff Serious Fraud Office launches investigations against mayors Lianne Dalziel and Phil Goff <[link removed]>
Hansard (Stuart Smith) Broadcasting (New Zealand on Air and Te Māngai Pāho Reporting Requirements) Amendment Bill — First Reading <[link removed]>
Point of Order The Greens have a little list – and the high-flying MPs on it are big spenders of public money <[link removed]>
Kiwiblog A new level of troughing <[link removed]>
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New Zealand Taxpayers' Union Inc. - 117 Lambton Quay, Level 4, Wellington 6011, New Zealand
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