From Louis Houlbrooke <[email protected]>
Subject Taxpayer Update: Fiscal watchdog | Waste at DHBs | Bunker oil
Date August 23, 2019 4:17 AM
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Dear Supporter,

As you'll see, it has been a busy week. We can't cover everything in this newsletter, but scroll to the bottom of this email to see all our recent media appearances.

Government adopts our idea for independent election policy costing agency



It's not often that we praise new spending initiatives, but this one's a goodie: the Government is setting up an independent watchdog that will cost political parties' election policies.

We've been pushing for this since 2014, ever since we launched our election "Bribe-o-meter <[link removed]>" which tracks the cost of pre-election promises. Politicians are less likely to commit to wasteful spending when the effect on taxpayers is laid bare.

Crucially, unlike an earlier Green Party proposal, the unit will be housed outside of Treasury, as an independent Officer of Parliament, meaning it cannot be biased by the Government of the day.

In Parliament, Finance Minister Grant Robertson and his colleague Phil Twyford even highlighted our support for the policy.

Comrade Robertson did have fun though, calling us <[link removed]> a "well-known bunch of socialists"!

Government rails against fuel prices; forgets to look in the mirror

A Commerce Commission report this week found that fuel is overpriced <[link removed]>– news that won't surprise anyone.

It's no secret that petrol companies charge as much as they think they can get away with, but their margin is a tiny sliver compared to the Government's 47 percent tax take.

Jacinda Ardern's complaint that fuel companies are 'fleecing' motorists has rightly been met with ridicule. We think this meme sums up the situation:



Revealed: The flawed advice behind the "clean car" policy

Our economist, Joe Ascroft, this week submitted on our behalf against the Government's plan to introduce new standards for clean cars and tax 'inefficient' vehicles.

In the submission he uncovers serious flaws in Ministry of Transport advice used by the Government to justify the policy.

The most material flaw is that instead of using current fuel prices (in the modelling the main benefits of the electric car incentive scheme are the savings consumers get from not having to buy gasoline), the Ministry used forecast fuel prices from back in 2011 (fuel was expected to be much more expensive that what it actually is).  We understand the difference would fundamentally change the resulting net effects of the policy.

We were glad to see National Transport Spokesman Brett Hudson use our point to ask questions of Associate Transport Minister Julie-Anne Genter <[link removed]>.

Joe also found studies showing that people already take potential fuel savings into account when choosing their vehicles. In other words, if they're choosing to drive a less efficient vehicle, it's because they rationally decided that it's the best vehicle to suit their needs. The Ministry completely ignored this evidence.

Click here to read Joe's full submission. <[link removed]>

"Low emissions" fund helps burn bunker oil



Continuing on the theme of dodgy green-transport policies: the Government has announced <[link removed]> another round of corporate welfare handouts (totaling $4.5 million) for companies to buy electric vehicles and charging stations.

One example: Interislander received $65,000 to put electric vehicle chargers on its ferries – but where does the 'green' power come from? The ferry's bunker oil engine! It would be funny if it wasn't our taxpayer money.

Revealed: The cost of DHBs' botched prescriptions



The NZ Herald is reporting <[link removed]> on our latest paper on healthcare productivity, which reveals that errors in the prescription or use of medication have cost taxpayers the equivalent of 10 flag referendums (or $150 per household) in just three years.

DHBs often escape scrutiny from politicians and the media, which is why our research team has been working hard to expose inefficiencies that are blowing out costs.

You can access all of our recent papers on healthcare here:

Productivity in the Health Sector: Issues and Pressures <[link removed]>

Missed Specialist Appointments Cost Taxpayers $29 Million <[link removed]>

$20 Million of Redundancy Payments Dragging Down Health Sector <[link removed]> <[link removed]>

Adverse Drug Reactions Cost Taxpayers Quarter of a Billion <[link removed]>

Taxpayer TV: Ratepayer-funded deals at Invercargill City Council

I'm not sure how to describe our latest episode of Taxpayer TV. Let's just say we give our interns creative freedom!

<[link removed]>Click here to watch on Facebook <[link removed]>, or the image above for Youtube.

You can read more on our discoveries about Tim Shadbolt and his Council's spending here <[link removed]> and here <[link removed]>.

Art? Or a crime against ratepayers?



After Christchurch ratepayers forked out $90,000 for the terrifying statue named 'Quasi', it's now Wellington's turn <[link removed]>. $74,000 has been spent installing the giant hand on the roof of the city gallery.

We've asked the Council for a breakdown of costs, but so far the response has been that we should 'talk to the hand'. Of course, our researchers will do more than just crossing their fingers.

"Ratepayer Protection Pledge" launched in Auckland



Finally this week, our sister group the Auckland Ratepayers’ Alliance has launched the “Ratepayer Protection Pledge” <[link removed]>, which commits Mayoral and Council candidates to no more than 2% annual rate and tax hikes over the next Council term.

While countless special interest groups lobby candidates to make new spending commitments, the Pledge provides balance, ensuring candidates explain how their promises affect the ratepayers funding their salaries.

If you live in Auckland and don't already follow the Alliance, send a blank email to [email protected] <mailto:[email protected]> and they'll pop you straight onto the list.

Have a fantastic weekend,


Louis Houlbrooke
Communications Officer
New Zealand Taxpayers' Union

<[link removed]>

Media coverage: <[link removed]> <[link removed]>

The Press  A gender pay victory or financial madness - debate over council chief executive salary <[link removed]>

Wairarapa Times-Age  Disgruntled ratepayers put heat on councillors <[link removed]>

Northern Advocate  NRC risks writing off $750,000 loan plus interest to timber processor <[link removed]>

The Press  Voters would be well served by a referee in the fiscal fight <[link removed]>

Newstalk ZB  DHBs spend $280 million on patients prescribed the wrong drugs <[link removed]>

RNZ  Govt proposes independent office to cost political promises <[link removed]>

Dominion Post  'Rates resistance' is rising in the provinces <[link removed]>

Autotalk  Taxpayers’ Union: Clean Car scheme has “serious flaws” <[link removed]>

Point of Order  Bridges is offside with supporters in bridling against an independent budget office <[link removed]>

Newsroom  Bridges digs himself deeper over policy costing plans <[link removed]>

The Spinoff  The Bulletin: National cries foul over political referee idea <[link removed]>

Politik  Bridges withdraws support because of staffing dispute <[link removed]>

Stuff  Five years of redundancies: Health boards pay out $20.4 million <[link removed]>

The Timaru Herald  South Canterbury 'an example to other DHBs' <[link removed]>

Homepaddock  Houses bad, trees good? <[link removed]>

Homepaddock  Census debacle claims Stats NZ’s head’s head <Census%20debacle%20claims%20Stats%20NZ%E2%80%99s%20head%E2%80%99s%20head>

Stuff  Census 2018: Chief Statistician Liz MacPherson has resigned <[link removed]>

Health Central  Missed specialist appointments costing millions annually <[link removed]>





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