From Sam Warren <[email protected]>
Subject Taxpayer Update: Labour's walk to higher taxes ➡️ | NEW POLL 🚨 | $786m on cones? 🚧 | Musseling $52m out of Shane Jones 🦪
Date December 9, 2024 3:05 AM
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Hi Friend

It's silly season in Wellington, with Christmas joy (i.e. taxpayer funded) knees up well underway.

There's also the usual December "take out the trash" silliness where exceedingly well paid government spin doctors dump the bad news at the very time the media and public aren't looking... 

But here at the Taxpayers' Union, we're still at it and will be at right up until the fat man in the red suit arrives in a few weeks.

Merry Christmas (to the Debt Monster) 🎄

This week we're expecting the Government's solution to the Interislander debacle (quite why Kiwirail isn't expected to fund its own asset purchases, just like the privately-owned Cook Straight ferry operator does has never been clear), and next week, on the Eve of Christmas comes Nicola Willis' Budget Policy Statement, and Half Year Fiscal and Economic Update. There, we're expecting the inevitable announcement that budget surplus is being pushed back, yet again. 

So the Government Debt Clock <[link removed]> won't be stopped for Christmas, in fact it's ticking at a faster rate than when Grant Robertson was in-charge. The only one who's happy is the Debt Monster. <[link removed]>

Meanwhile, Labour thinking about how to make New Zealand more prosperous tax you more 🤦

The Labour Party was hammered at last year's election, and last week Party members gathered in Christchurch for their annual conference to discuss the rebuild.

You'd think that they'd learn some lessons and take the message, right? After all, Labour's increase in Government spending (gross core Crown spending by 83 percent in just seven years ! ) resulted in high inflation and, arguably, worse public services. 

But it seems Christopher Hipkins missed the memo. 

Instead of debating the challenges the New Zealand economy faces, our structural overspending, and lack of productivity growth in both the private and public sectors, the Labour Party's main agenda item was to debate [re-checks notes] which new tax they should introduce!

➡️➡️➡️ Walk this way to higher taxes ➡️➡️➡️

To help Labour Party delegates find their way to the venue, your humble Taxpayers' Union were on hand to help. 😉



Even Stuff liked the gag! Young Alex (who came to work for us from our sister group, the Canadian Taxpayers' Federation <[link removed]>) got his first interview on the 6 o'clock TV news to give the taxpayer perspective <[link removed]>.

Despite our best intentions to be helpful, Labour's delegates weren't so keen on our helpful sign posting (video here). <[link removed]> Weird.

NEW POLL: ACT & Te Pāti Māori gain in final Taxpayers-Union Curia Poll for 2024 📊

There will be sighs of relief in the Beehive with the centre-right commanding a comfortable majority in our final poll for 2024, despite a hard month and media attention on the hīkoi.

The poll, conducted 1 to 3 December, has both National and Labour down 4.6 points from last month, National at 34.2% and Labour at 26.9%.

Despite some progress on the "Preferred PM" results (see below), it's not much progress for Chris Hipkins, 26.9% is the exact result Labour got at last year's general election.

The Greens are down 1 point to 8.3%, while ACT are up 4.5 points to 13%. That puts ACT ahead of the Greens for the first time since February 2024.

New Zealand First is down 1.1 points to 5.4% while Te Pāti Māori is up 3 points to 5.5%.
For the minor parties, Outdoors and Freedom is on 2% (+0.7 points), TOP is on 1.1% (+0.2 points), and Vision NZ is on 0.2% (-0.2 points).



Converting that to seats in Parliament, these results would mean National and ACT would not need NZ First to form a Government. The total number of seats for the Centre-right is 68, while the left has only 52 seats in the 120 Parliament.



In terms of Preferred Prime Minister, Christopher Luxon is up slightly from last month to 27.1% (+0.6 points) while Chris Hipkins is up to 19.9% (+4.4 points). David Seymour is at 5.8% (-1.6 points) matched by Winston Peters (-0.5 points) at 5.8% and Chlöe Swarbrick at 4.5% (-0.7 points).



This month we're also publicly releasing what participants said was their "most important issue" that would influence how they would vote. 

Although it is getting much media attention, just 8.4% of voters listed the Treaty as their top voting issue. That could suggest that media attention does not necessarily correlate to importance in the minds of most voters. 

You can read more results over on our website. <[link removed]>

EXPOSED: New Zealand's infrastructure benchmark - more traffic cones than sheep? 👀 🚧 🐑

The Taxpayers' Union has exposed that the New Zealand Transport Agency's spending on 'temporary traffic management' has been a massive $786 million in just three years. <[link removed]>

That's more than $390 per household on road cones and lollypop signs.



And it gets worse, Friend. The $786 million is 'only' what comes from central government. It doesn't include what your council is spending on cones (those higher rates have to be going somewhere!).

Politicians and talking heads in the media complain about New Zealand's "infrastructure deficit" and argue that we must spend more. But according to the OECD (a think tank funded by the governments of most developed countries) New Zealand spends at higher levels than Australia and the median OECD country on infrastructure.

So why aren't we enjoying world class infrastructure? Like so many areas of spending coming from Wellington, it's not how much we're spending, it's what we're getting (or not getting) due to New Zealand's very poor productivity.

And it's no state secret. As our friends over at the NZ Initiative think tank have pointed out: <[link removed]>

Despite this comparatively high spending, New Zealand reaps a relatively poor return from its infrastructure investment. Alarmingly, we rank near the bottom 10 per cent of high-income countries for the efficiency of our infrastructure spending.

A cone-spiracy? 🤷

Your humble Taxpayers' Union suggests that when you're spending so much on traffic management there are (so we are told) more cones than there are sheep, overly zealous traffic management would be a good place to start to get more bang for our buck from NZTA.

No one is saying 'end all road cones' (well, maybe a few of us in the office), but when Alex and the team stumbled upon a single Wellington intersection with more than 200 road cones, surely something has to change?! <[link removed]>

<[link removed]>

A tree-mendous waste of $1.2 million 🎄🎅🏻

Christmas is a time for family, and our Auckland ratepayer campaign has been digging deep.

On behalf of the Auckland Ratepayers' Alliance I found myself playing the Grinch when I broke the news that Auckland's new Christmas Tree cost up to $1.2 million. Ouch! <[link removed]>



It seems no expense was spared on this 18-metre ornament, with Council committing $800,000 of rates money.

We can only assume the baubles are made of solid gold (we asked, but Auckland Council refused to provide a breakdown of the $1.3million – so it's anyone's guess).

Christchurch on the other hand erected their 10 metre Christmas tree for just four percent of the cost. <[link removed]>

Wellington also managed three Christmas trees for about the same cost as Christchurch's one. <[link removed]> You read that right: Wellington City Council actially kept costs down for something – it's a Christmas miracle!

Your household's $57 SolarZero charge: time for some sunlight ☀️🔥



Politicians love to give old fashioned corporate welfare new labels such as 'green investments'. But in the case of the $115 million taxpayer dollars basked onto SolarZero, a private company, through the so-called "Green Investment Finance Investment Bank" even an Orwellion name and $155million wasn't enough to stop the collapse.

According to the NZ Herald, Finance Minister Nicola Willis is "seeking advice" on the investment and why it went wrong <[link removed]>.

Here's what the advice should say: Big gambles mean big losses, and taxpayers shouldn't have to front up with (in this company's case) $57 for every Kiwi household to subsides (via cheap capital) because a business or industry is green fashionable.

The Government was elected to cut wasteful spending. Corporate welfare funds like the Green Investment Finance Investment Bank would be a good place to start. After all, if you're a half decent investment banker, are you really likely to be working for the New Zealand Government...

More money muscled musseled out of Shane Jones 🦪💪

Speaking of corporate welfare, the hapless mussel farm in Opotiki has received yet another $16.5 million of taxpayer cash courtesy of Shane Jones. <[link removed]>

Most Kiwis love a good seafood feast. But for those counting, this latest handout takes the total corporate welfare handouts to $52 million, for just one mussel farm!

We hope you like mussels because every NZ household has now stumped up $26 subsidising this one company.



Shane Jones says he wants to create a sustainable industry out of mussel farming in the area. But the company he's showering has never turned a profit. Not even once.

Speaking of creative accounting...

Official Dis-information? South Wairarapa District Council's audited accounts show wrong CEO pay numbers  🫢

The South Wairarapa District Council to come clean following their incorrect reporting of how much its outgoing chief executive Harry Wilson was paid last year. 

While analysing the Council's finances and comparing the pay to other councils, an anomaly was noticed...

As covered by Emily Ireland in Stuff <[link removed]>, the Council’s 2022-23 audited annual report said Wilson was paid “a salary of $250,000”. But, it turns out the Chief Exec's salary was actually $75k higher than the council originally reported. <[link removed]>

When asked about the anomaly, the Council said it was due to "an error". No kidding!





They won't tell anyone what the extra money was for, except that it was in relation to "contractual obligations". Sounds like a golden goodbye to me...

Forcing every single one of the 7,400 households in the small district to chip in $10 as a goodbye a bit rich. But to then not disclose the payout (as required by law) is a bit poor, to say the least.

Have a great week,


   Sam Warren
   Local Government Campaigns Manager
   New Zealand Taxpayers' Union <[link removed]>

In the Media:

NewstalkZB The re-wrap: So this is what’s to come? <[link removed]>

The HeraldTreaty Principles Bill: National spooked as Te Pati Maori’s parliament haka delivers more grist to ACT’s David Seymour <[link removed]>

Kiwiblog A great grift against taxpayers <[link removed]>

The PostWellington rates officially unaffordable <[link removed]>

The Working GroupThe hikoi special | GUESTS: Duncan Garner and Willie Jackson <[link removed]>

NewstalkZB Treaty debate heats up after hikoi – what will happen next? <[link removed]>

The PressGovernment’s rates cap idea not popular with councils <[link removed]>

NZ HeraldHikoi’s influence will be felt for years, but Treaty Principles Bill still popular – Thomas Coughlan <[link removed]>

The PostWhy it might be time to ditch the politician tax <[link removed]>

InterestProtests and economic criticism cloud Coalition’s first anniversary as pressure mounts for it to deliver on campaign promises <[link removed]>

KiwiblogA $25 million glasshouse <[link removed]>

Waikato Times, The Press Climate deal could help NZ buy credits to meet its carbon pledges <[link removed]>

The PlatformTony Randle: Is Wellington prioritising the wrong projects over infrastructure? <[link removed]>

RNZThe Panel with Martin Bosley and Deborah Hart <[link removed]>

Rural news, Dairy news Koru-koi <[link removed]>

NewstalkZB The Huddle: Should we expect a capital gains tax? <[link removed]>

NZ HeraldA year in coalition: NZ First leader Winston Peters hints at 2026 election plans <[link removed]>

The PressNothing concrete agreed on increased NZ contribution to climate funding, says minister <[link removed]>

StuffHow Labour plans to win back Auckland – and the next election <[link removed]>

Stuff, Wairarapa TimesOutgoing council boss cashed in as ratepayers felt squeeze <[link removed]>

Chris Lynch Media“Disgraceful waste” Taxpayers’ Union criticises $115 million loss in SolarZero collapse <[link removed]>

KiwiblogOutrageous costs <[link removed]>

New Zealand Taxpayers' Union Inc. · 117 Lambton Quay, Level 4, Wellington 6011, New Zealand
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