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Hi Friend,

Today's the last day at the office for the year, and this email is to sign-off for the year and recap on what has (unfortunately, for taxpayers!) been a busy 10 days.

'Twas the week before Christmas: The economic bad news continues... 🚨🎄

Last week's quarterly GDP stats were worse than anyone was expecting. 

In the space of three months, the economy shrank 1.0 percent. In the three months prior to that, it shrank 1.1 percent.

While the headline "growth" (or in this case "shrink") number is one thing, what determines what a country can afford is GDP per capita, or 'per person GDP' – the amount the whole economy produces divided by the population.

And on that measure, it's even worse:

Sorry to spoil your Christmas, but these new figures show that the average Kiwi is $1,711 poorer compared to what was produced last year.

When we talk about wasteful government spending and overtaxation, this is those chickens coming home to roost. But where's the plan to fix it?

As laid bare in the opening-of-the-books last week, Nicola Willis is spending more than Grant Robertson.

And before you say the deficit is because of 'tax cuts', the Treasury figures show that Nicola Willis' tax-take as a share of the economy is bigger than at any point under Ardern/Hipkins.

And debt's still spiralling! Interest payments are set to reach $7,000 per household by 2028/29. There isn't a recipe for growth on the menu.

Merry Christmas 👀

Stats NZ struggling with numbers? 20,000 job losses in Wellington out by [checks notes] 18,000 🤔📊

It's a real shame that Stats NZ are, well, struggling with statistics given the political overdrive the media and opposition parties went into after Stats NZ published employment figures that 20,000 had lost their jobs in Wellington.

This was, apparently, evidence to show 'nasty cuts' since the new Government came in.

It turns out, Stats NZ got it wrong. Really wrong. So how much were they out by? A thousand? Five thousand? Surely not more?

Friend, they were off by 90 percent! Last week Stats NZ corrected their figures and there has only been about 2,000 job losses in the capital (and that's during our worst recession since 1991, don't forget).

And most job-losses weren't within government! 

Sir Humphrey reported safe 🤵‍♂️

At its peak, there were more than 65,000 "core public servants" – an 18,000 increase from six years prior.

And of those 2,000 job losses, Nicola Willis revealed this month that only 865 bureaucrats had actually been made redundant (and about half of those were voluntary)!

It might be the New Year soon, but the team at the Taxpayers' Union all have the same resolution. Pump those numbers up, because last week's HYEFU opening-of-the-books showed one thing - if we're going to get New Zealand growing again the public service needs to do some shrinking.

Taxpayer-funded Waipareira Trust to lose charitable status over political donations 🎯

The Te Whanau o Waipareira Trust's latest annual report has certainly raised a few eyebrows. In just four years, the net assets for the taxpayer-funded charity have more than doubled - to $103.8million.

The report showed a net annual surplus of $20.6 million - a 24 percent return on revenue. Most commercial enterprises could only dream of those sort of numbers, with a higher profit than 93 of the top 100 companies in New Zealand!

This is the same trust paid $385,307 in no-interest, related-party loans to fund Chief Exec John Tamihere's 2019 Auckland Mayoral campaign. As well as Tamihere's 2020 general election campaign where he stood as a Te Pati Maori candidate-slash-co-leader, and of course further donations to Te Pati Maori's 2023 election campaign.

Entities associated with the Trust have also been facing down investigations over alleged misuse of census data for use in Te Pati Maori's 2023 election campaign.

The Democracy Project's Bryce Edwards took a deep dive into the Trust back in July.

Well, turns out you can't keep that up forever. After a four-year-long investigation, Tamihere's outfit is set to lose its charitable status.

Four years too long, if you ask us. Taxpayer-funded 'charities' should not enjoy tax-free charitable status.

Driving home for Christmas will cost more next year 🚗🚧

Now from groups that don't pay enough tax to one who are paying far too much: you. 

Road tolling to pay back the cost of making a road makes sense – people in Ashburton and New Plymouth shouldn't be made to stump up for highways in Tauranga they'll never use. But here's where it gets tricky. Transport Minister Simeon Brown's announced tolling on three roads (including Auckland's Penlink, Tauranga's Northlink, and the road from Otaki to north of Levin) to pay for ongoing maintenance.

This is a change from previous toll regimes where tolls are used to fund/finance the building costs of new roads. 

But it's permanent, it's a tax. Plain and simple. And let's be frank, we already have taxes that are meant to pay for road maintenance (i.e. fuel taxes and the road user charge). 

And wasn't this supposed to be the government of 'no new taxes'? 🤔

And last but not least... Merry Christmas from the Taxpayers' Union 🥳🎄

This is the time of year to be thankful, and we know that our work wouldn't be possible without you. We've had some huge wins this year, but not kidding ourselves that there is a big job ahead to force Wellington to make the tough but necessary decisions in the New Year.

So from the whole team, wishing you and your family a very Merry Christmas.

James Ross Policy and Public Affairs Manager New Zealand Taxpayers' Union