John Key is a fact free zone on alcohol pricing
Talking about minimum pricing for alcohol on TVNZ's breakfast programme this morning, John Key said:
John Key: Now do you remember some years ago Jim Anderton passed a law that put the price of Sherry up.
Corin Dann: The Sherry drinkers yeah.
John Key: It did a couple of things. It put the fortified wine manufacturers in my electorate out of business, and it stopped grandma having a Sherry, so she moved off to a low price Vodka. It didn't actually change her consumption of alcohol. So yes I mean if you could get a price that was a high selling point for all alcohol, maybe, but all you're likely to do is raise excise across the board.
Jim Anderton says John Key is rewriting the history of a highly successful tax that removed a lethal product from the shelves.
"I introduced a Bill that increased the price of so-called light spirits - those that had 23 per cent proof alcohol.
"It was targeted at wiping out the light spirits industry, because they were selling high octane drinks to kids. They were 25 per cent proof of alcohol drinks of vodka, gin, whisky, and brandy.
“These so-called light spirits were lethal and the bill was a success. Sales of light spirits were reduced by 85 per cent and they went off the market. That was the whole point of the bill, and John Key speaks as if it was a bad thing.
"The cost of alcohol-related harm to New Zealand is indicated by reputable economists and analysts to be in the order of $2 billion to $3 billion a year.
"Mr Key is now trying to argue that the problem is mostly binge-drinking and mostly the young. But that is not true. 700,000 New Zealanders drink heavily. Sixty per cent of all police arrests involve alcohol.
"And one measure that has made a difference in recent times - using price to remove a literally lethal product aimed at young binge drinkers - was a complete success,” Jim Anderton said.
Sea-change needed for NZ fishing industry
Speaking at the petition presentation from The Service and Food Workers Union at today’s Primary Production Select Committee, Jim Anderton supported the SFWU’s endeavours to up skill Kiwi workers by addressing outmoded practices that have dumbed down New Zealand’s fishing industry.
As a former Fisheries minister, Anderton is urging a change in focus from treating seafood as a commodity to recognising our high quality wild fisheries as the ideal environment to produce a high premium product.
“Too much of the fishing industry has scaled back on quality in favour of quantity in order to reap higher short-term dividends by treating seafood as a commodity. By going for volume, quality is lost which has resulted in low prices, widespread job losses and the devaluation of the enormous potential of our fishing industry.
“There is no high value future in high-volume pulverised fishmeat caught in huge nets. The prices we are currently attracting for this product are no incentive to develop the high quality, high value fishing industry that New Zealand needs.
“New Zealand has one of the most valuable wild fisheries in the world and we should expect to earn a sizable export premium from it.
“Discerning chefs and restaurateurs will pay top dollar for day-old line-caught fish. We stand to gain significant market premiums for our fish exports if we can assure customers of high quality and sustainable practices that are the hallmarks of New Zealand food exports.
“The current focus on using cheap foreign labour and bulk fishing is to the detriment of our fishing industry and risks giving New Zealand a bad reputation if it continues”, says Jim Anderton.
Dunne's support for winter power rebate welcomed
"Since 2002, I have pushed for a return to consumers of some of the big profit increases from the state-owned power companies to help them with winter power bills," Jim Anderton said.
"Low income households could be given $200 toward winter heating costs and power companies would still contribute as much to the government as they did last year. $200 would mean some households had a month of relief from winter heating costs. For superannuitants, beneficiaries and people who have lost their jobs in the downturn, it would make a huge difference."
According to Statistics New Zealand, there are about 1.4 million households. If half were eligible for a $200 winter power rebate, that would cost $140 million. $200 is the estimated winter power bill for a month for the lowest income half of households.
UnitedFuture MP Peter Dunne is calling for a similar policy - a top-up of $50 a month for superannuitants for the three coldest months of the year when their power bills reach $150.
"Mr Dunne is right to identify the seriousness of winter power needs, and the simplicity of doing something about it through a winter rebate," Jim Anderton says.
"But the policy is easier to implement if the power companies are kept in public hands. Mr Dunne is supporting National's plan to sell the power companies.
"If you want the power companies to be involved in helping people, it's best if the people own them. And if they are sold, power bills are only going to rise."
Youth suicide will rise over the next few years
“High suicide rates follow high levels of youth unemployment, sure as night follows day.
“Youth unemployment today is near record levels and among the highest in the developed world.
“High rates of youth unemployment inevitably lead to high rates of suicide.
“In the nineties, four peak years of youth unemployment were followed by the highest youth suicide rates in the Western world.
“We are about to see a repeat. Our suicide rates are already at high levels, with over five hundred deaths a year. At the current level of youth unemployment, suicide will increase again in coming years.”
He says the NZ Institute's snakes and ladders report shows New Zealand has the lowest median school leaving age in the OECD. Over a third of 16 year olds report being usually or always bored at school, and want to leave as soon as possible.
“Teenagers in New Zealand face high levels of unemployment, crime, and depression - materially worse on all these scores than the average of other developed countries.
“As the NZ Institute reported, 'Unemployment is central; it is an important consequence of disadvantage. Disengaged, inactive youth are at greater risk of lower earnings, needing social assistance, criminal offending, substance abuse, teenage births, suicide, homelessness and mental or physical ill health.
“The tragedy of youth unemployment is only the beginning. The Government's choice to do nothing effective about youth unemployment has tragic consequences," Jim Anderton says
Levy on soft drinks would help to reduce diabetes epidemic
New research shows New Zealand has some of the highest rates of diabetes in the world - and the problem is fast getting worse.
Last week Jim Anderton called for a levy on sugary drinks to help pay for bringing dental care into our free public health system.
“A levy would not just help to pay for dental care, it would help to reduce our diabetes epidemic too," Jim Anderton said.
"Without a levy everyone has to pay more tax to the health system to help pay for diabetes treatment. A levy on sugary soft drinks would reduce the problem of diabetes - a little prevention is a better alternative than a lot of costly treatment after the damage has been done."
A study published in the Lancet medical journal found the number of people worldwide with diabetes has doubled since 1980, with about 30 per cent of the increase caused by an increase in obesity.
Among high-income countries, New Zealand has the fourth-highest rate of diabetes.
“We have a diabetes problem. We have an oral health problem. And we could have a levy on sugary drinks as a simple answer to help reduce both problems."
A Progressive dental health policy for all New Zealanders
THE FACTS
- 44% of all New Zealanders do not receive any form of dental care. Obesity and diabetes are increasing and both are linked to an increase in dental health problems.
- The number of New Zealanders over 65 years of age who still have some or all their natural teeth is rapidly increasing. Dental problems amongst this group are complex and costly. Because 70% of those over 65 years of age only have NZ Superannuation as their main or only source of income, regular dental care is simply unaffordable.
- While free dental care is theoretically available in New Zealand from birth to 18 years of age, in practice only 50% of young NZers receive treatment because of availability of services, cost or understanding how to access them.
- A very worrying statistic is the 2,668 children (and rising) under 5 years of age who require dental procedures at our public hospitals each year, including the removal of teeth under general anaesthetic.
- District Health Boards provide access to dental health services for children up to year 8 (age 13) of their schooling through the school dental service – a combination of school mobile clinics followed by dental services for adolescents from age 13 up to the 18th birthday with services at agreed fee levels. (A service introduced by Hon Annette King). The goal is to achieve and maintain an 85% access rate compared to around 50% at present.
- Māori and Pacific children are less likely to be cavity-free by 5 years of age.
- Māori and Pacific children experience more dental cavities by 5 years of age
- Water fluoridation has a significant and positive preventative effect on dental decay.
- In general, drinks containing high amounts of sugar (including fruit juices, milk shakes and fizzy drinks) are not only associated with an increased risk of cavities, but also with weight and obesity problems.
- To a large extent, dental problems result from what we eat and drink. There are three major problems:- dental cavities, gum disease and gum erosion. Our diet encourages the development of tooth decay. Sugar and refined carbohydrates which we consume are the key culprits in this regard.
- People who are overweight tend to have worse dental problems. The 2009 Social Report found that 1.13 million New Zealanders were overweight. Greater consumption of sugar-sweetened drinks is associated with weight gains and obesity and is a serious risk factor for dental decay.
- According to Diabetes NZ, about 270,000 New Zealanders suffer from Type 2 diabetes, whilst another 90,000 cases go undiagnosed. The incidence is increasing rapidly and around 500 young NZers aged between 10-18 years also have Type 2 diabetes.
- From 2011 to 2030 the baby-boom generation will retire and because most of them have kept their natural teeth, even though heavily restored, many will get serious decay from tooth crowns and exposed tooth roots. Clearly this means that many elderly NZers will need expensive dental treatment, in many cases well beyond what they had to spend on dental care in their younger years and well beyond their ability to pay.
This policy proposal advocates free dental care should be extended over time, and on an incremental basis, to all New Zealanders. First to the most vulnerable groups; pregnant women, those aged 65 years and over followed by those aged between 18 and 28, then those 28 years to 50, followed by those between 50 and 65 years old.
These steps should be supported by education, publicity and the fluoridation of all drinking water (following, and if supported, by a parliamentary select committee enquiry).
There should also be a bonding scheme for dentists and dental hygienists who are prepared to work in rural/provincial areas where dental professionals are in short supply in return for writing off student debt over a 3-5 year period of service.
Good oral health should also be reinstated as a priority goal for the public health system, together with the reinstatement of the requirement that school lunch shops/cafeterias provide only healthy food.
SUMMARY
Considering the three trends: Obesity – Diabetes - and Dental Deterioration – it seems clear that there will be an increasing need for dental care, especially for people on low incomes, including a growing number of elderly citizens.
Put simply, bad teeth are likely to compromise the overall health of large numbers of New Zealanders and add significant cost to an already stretched public health system.
Prevention should therefore be the thrust of good dental health policy, and ensuring that all people have access to high quality, affordable dental care will have a powerful preventative effect.
Prevention should be aided by four new policies:
- Providing Free Dental Services so that dental decay can be arrested and other health problems which may arise from a lack of dental care can be avoided and general health costs reduced.
- Bonding of Dentists working in Provincial and Rural areas
- A Parliamentary Inquiry into the need (or otherwise) for Fluoridation as part of a National Dental Health Strategy
92% in New South Wales
78% in Victoria
90% in South Australia
92% in Western Australia
83% in Tasmania
70% in Northern Territory
100% Australian Capital Territory
- Publicity - In order to make free dental care as effective as possible, the government should fund advertising across all media to show the importance of regular dental
THE COST OF A UNIVERSAL FREE DENTAL CARE SYSTEM
The current cost of free dental care to those under 18 is approximately $120 million per year. The estimated cost of introducing free dental care to those over 18 years of age (based on 2002-2003 data) would be an additional $542 million bringing the total cost of universal dental care to an estimated $670 million.
However, allowing for inflation, the cost of more expensive equipment and more people accessing dental services, we should allow for a cost of around $1 billion.
FINANCING THE PROPOSED POLICY
Accepting that the cost of extending free dental care to all could be around $1 billion a year at current prices, the required funding could come from a levy on income, similar to ACC levies, a reduction in the $17.8 billion tax cuts given to the most affluent New Zealanders by the National-led government over 4 years (average $4.4 billion per year), a levy on sugary soft drinks (such as we have on tobacco or alcohol) because of their contribution to the forthcoming diabetes epidemic, or a mix of all these possible sources of funds.
The extension of the Volunteer Bonding Scheme (VBS) to dentist and dental hygienists will also require funds. In the absence of details about shortages of such professional services in rural areas and provincial centres with serious shortages that cannot, at this time, be costed.
However, the current Voluntary Bonding Scheme costing around $7.5 million p.a for over 500 doctors, midwives and nurses, indicates that such a scheme for improved dental services, should be able to be accommodated within the $800-$1000 million estimated to obtain a free dental service.
This plan could be implemented over a period of between 5-10 years so that the funding, administration and resources required could be accommodated more efficiently.
The current Dental Agreement will continue to apply, but will also be amended to cover the incremental extension to other groups. There will need to be an agreed fee structure.
The introduction of State Funding should make private insurance cover redundant. This should be reflected in a reduction in premiums charged by insurers for general health insurance if this includes cover for dental care – a saving for existing policy holders.
Dentists will remain in charge of their own practices and professional procedures. They will not become Government employees.
Negotiations with the dental profession will be conducted to agree on an administrative system which would be required, over time, to introduce the free dental system.
Because of my retirement from politics this year, I am handing this policy programme to the NZ Labour Party as the vehicle through which I hope these issues, concerns and initiatives can be progressed.
Higher premiums and another AMI bailout
"An independent report by PriceWaterhouseCoopers in Sydney in 2008 showed that ACC costs in New Zealand, at around 0.8% of wages are substantially lower than the Australian average of 2% of wages.
"ACC costs for farmers are much lower in New Zealand than in Australia.
"There will be little to stop those same Australian insurance companies coming over here and underfunding their liabilities, which is what happened in 1998, when HIH went under with billions of dollars of liabilities that had to be picked up by taxpayers.
"In New Zealand, taxpayers are today on the hook for up to a billion dollars because AMI didn’t carry enough reinsurance, and regulators never warned of a problem. Why would workplace insurance be any different?”
A dying economy: Budget 2011
This budget signals that the National Government has decided to preside over a dying economy.
Why? Because the most important social and economic investment in the future of any country is its investment in education.
This budget says that in the four financial years 2011/12 to 2014/15 government investment in education will increase by $197 million – that’s less than the $50 million /year - out of a budget of over $12,000 million /year – an increase of only 0.004% per year.
And provision for welfare benefits (unemployment, sickness and invalids) in the same period increases by $3153 million. Twice as much as money benefits that for Health and Education combined.
These facts would be ludicrous if they were not so tragic.
Look at the economy this government inherited.
In 2008, unemployment was the lowest in the OECD. It was 3.5 per cent of the labour force. And because there were jobs, people moved off benefits in record numbers.
In April 2008 – just three years ago - 17 per cent of children in New Zealand lived with someone who was reliant on a benefit.
Today, after three years of a National Government, unemployment is back up again at the levels last seen the last time they were in office, in the nineties.
Benefit numbers are up again because the real jobs aren’t there.
More than 32-thousand more children are reliant on benefits today than in April 2008. And because New Zealanders are not in work and earning, the books have turned to a sea of red.
In 2008, the government had a fiscal surplus of 2.7 billion dollars. In the fiscal update just before the 2008 election, the government accounts were forecast to remain in surplus for the forecast period. The Crown was contributing to the Superannuation Fund and had no net debt at all.
Today, the government announces a fiscal deficit of $17 billion dollars. But look where that deficit has come from: The income tax cuts on 1 October last year cost 17.8 billion over four years.
The top ten per cent of income earners alone got income tax cuts worth $44 million a week. The government is borrowing two and a half billion dollars a year just for tax cuts for the top ten per cent of income earners alone.
This Government likes to blame its books on the previous government. I’m sick of hearing it because it is not true. Their problem is they can’t take personal responsibility. They have to find someone or something to blame because they can’t fix the problems.
So they blame the global crisis.
They blame the earthquakes.
Those events made things worse – that’s true.
But bad management made the economy worse still.
They were going to catch Australia.
Bill English and John Key were going to close the wage gap with Australia – Yeah Right!.
Australia went through the global financial crisis too. Australia has been hit by devastating natural disasters too - like floods and the unprecedented hurricane in Queensland.
But here’s what the Australian Treasurer had to say about his budget, delivered last week: “Our economy has been hit in the short term by the recent natural disasters which have devastated families and communities.
…But growth is strengthening … Unemployment is low and is set to fall even further.
We've seen over 700,000 jobs created since we came to Government and we expect to see a further half a million jobs added by mid-2013.
Our public finances are in relatively good nick. We'll be back in the black in 2012/13.
So much for New Zealand catching Australia!
And all this Government has to say about why they’ve weathered the storm and we haven’t is that Australia has mining.
That ignores the fact that we have been enjoying the best commodity prices ever. We’ve had the most favourable terms of trade in history.
No, the problem is that National had no ideas to fix the economy – and still hasn’t got any!
John Key came into office promising tax cuts that everyone would share in, and promising that those tax cuts would help us catch Australia.
His government has failed on every one of its own targets. Most New Zealanders didn’t get a net tax cut - they got a small cut that was cancelled out by the rise in GST, and the subsequent price rises that soared ahead of their incomes.
Imagine if the National Party had produced an election manifesto that said:
“We will increase GST.
“We will cut Working for Families.
“We will cut your KiwiSaver, not once but twice.
“We will cut student loans.
“And we will give tax cuts costing $44 million a week to the top ten per cent of earners.”
They would not have dared set out that plan before voters. But that is how they have governed.
They got elected on promises they couldn’t keep.
Governments in the 80s and 90s did that and got thrown out but John Key wasn’t in NZ then, he was overseas working in the money speculation business.
National didn’t trust New Zealanders enough before the election to tell the truth - that tax cuts meant spending cuts and deficits. And today they don’t trust New Zealanders enough to tell the truth about the cause of their deficits today.
The sort of government that is too weak to front up to the truth is a government that is too weak to make the changes New Zealand needs.
There is a predictable outcome to this failure: People suffer. And the more vulnerable they are, the less resilient they are, and the more they suffer.
Children are being admitted to hospital for diseases that are clearly linked to poverty - there were an extra six hospital admissions for infectious diseases and respiratory diseases every day in 2009, compared with two years before, and the figures are worse now.
When families don’t have adequate incomes, and jobs, their children live in poor housing conditions, they lack nourishment, they are not warm enough.
Their health suffers.
Their opportunities suffer even more.
How much harder is it for children in the thousands more poor homes this government has created, than for a child in one of the affluent and privileged homes they have heavily favoured?
This government should be ashamed of itself.
In 2008, the main breadwinner was unemployed in about 7 per cent of Maori and Pacific families.
Today, that figure has doubled - fourteen per cent of Maori and Pacific families don’t have someone going to work and bringing home a wage or salary.
That is the Maori Party’s legacy for supporting National.
What does that means in practice?
Half of kids whose families are living in severe hardship have not got suitable wet weather gear because of the cost. A third of them don’t have a pair of shoes in good condition. They miss out on the experience of growing up, like owning a bike or a personal computer.
Two thirds miss out on school outings, or involvement in sports, half miss out on school books or a visit to the doctor because of the cost.
All of these are things that virtually every kid whose parents have a decent income takes for granted.
The National Government has one single programme to fix the issue: Selling our power companies.
That won’t lift one child out of poverty.
It won’t create one job.
Not one of those families in poverty will be queuing up at the stock brokers to buy shares in the companies.
And when those companies are snapped up by overseas buyers, the prices we pay will rise. The profits will disappear overseas. The tax on profits will be dodged.
And if the National Party is back in office, it will come back to the table and ask again for more because its policies have failed.
There’s nothing new here.
This is a return to the failed policies of the nineties.
The policies that fail people.
Fail to create jobs, fail to lift incomes.
Fail to create a stronger future for New Zealand.
Petrol price margins at record high
“Petrol prices are always fast to increase and slow to fall. At the moment, the price is high because the government has taken its eye off the ball and the petrol companies know they won’t face any pressure for soaking the New Zealand consumer,” Jim Anderton said.
“I call on petrol companies to drop retail prices now. The 3 cents a litre some companies dropped this morning is a fraction of the increased margin they are making.”
The Ministry of Economic Development’s oil price margin monitoring shows petrol companies were making a margin of 29 cents a litre last week – nearly double the average margin last year.
“Excessive fuel prices are not just bad for consumers, they’re bad for business too. The cause of high petrol prices right now is greed,” Jim Anderton said
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Source: MED [pdf]
Half of NZers don’t have access to affordable dental care
Progressive leader Jim Anderton says the current economic conditions are making dental care even less affordable for New Zealanders.
“Dental health is the ‘poor relation’ part of our health system. It goes under the radar screen but the human and health costs are mounting.”
Jim Anderton is planning to launch an in-depth policy document to stimulate discussion about ways to fill the dental care hole in the health system, with the release at parliament next month of research about the extent of the problem and options for solving it.
In Parliament today he asked the Government if it was satisfied that New Zealanders have adequate access to affordable dental health care.
“The Government says it is satisfied with the affordability of dental care, and only acknowledges ‘some’ can’t afford it. In fact 44% of all New Zealanders aren’t getting dental health care. That is more than ‘some.’
“The Government also believes that hospital care is an adequate backstop. But people are queuing at dawn for that care, and they can only access emergency services such as pain relief and teeth extractions. The government is minimising a serious problem and accepting third world solutions.
“If there is a single policy initiative that could make a difference to health outcomes for all New Zealanders, it would be access to affordable dental health care. Current economic conditions are putting affordable health care even further beyond the reach of average New Zealanders. We need action.
“I’ve been studying the problem, and have developed some practical options for making dental care affordable, starting with sensible, practical steps we can take straight away. I’ll be releasing that document next month.
“With up to half of New Zealanders missing out on the dental health care they need, this is not a problem that can be ignored.”
Leadership matters more than structure in Chch rebuild
He is supporting the government’s CERA legislation because Canterbury needs quality consultation and quick decisions.
“For some reason there is a view that public participation is in conflict with rapid decision-making. In fact they are both essential to each other. You cannot rebuild quickly if you don’t take all the people along with you, because people who are left out will challenge the process, they will feel disillusionment and ultimately the process will fail.”
Jim Anderton says the challenge for Christchurch is to shift our perspective from ‘recovering what we once were’ to ‘building what we seek to become.’
“This ability to re-imagine Christchurch requires leadership - leadership capable of engaging with all the city’s people. The success of what we have to do will depend on that leadership much more than the structure we have. I am not as concerned with the structure and design of the CERA as I am with having the right people to lead it.
“We need leaders who have the confidence of people and are able to communicate with them and get things done. The ability to engage the community and get things moving was the big disappointment after the first quake. It simply didn’t happen well enough, and not enough was done soon enough.
“So I understand why the Government has taken control, and I don’t blame them. It’s a recognition that a lot of taxpayer money is at stake, and also that things need to be handled better than they were after the first quake.
“What we need to see now, in this legislation, is a commitment to listening and making the community part of the rebuilding.
“People need to feel their views are taken into account and that the kind of Christchurch they want is being created. Because otherwise, if they feel it’s not the Christchurch they were born into, or came to, or want to experience again, they will feel no commitment to it,” Jim Anderton says.
Foreign owners have no commitment to NZ
“If John Key sells our other assets, the same calamity will result. Foreign owners have no commitment to New Zealand.”
Jim Anderton says the loss of NZPA will hit regional New Zealand hardest because regional newspapers rely on the service for their national news service.
“Fairfax appointed an Australian chief executive to run the operation in New Zealand in March last year over the top of New Zealand executives who were expected to run the company. The cynical Australians who run half of New Zealand’s papers are putting in place a strategy that is bad for New Zealand, and only good for an Australian company.
“NZPA provided a unique service. It is one of the only gallery offices at parliament that routinely covers select committees and debates in the Chamber.
“It is a service that New Zealand’s news services outside the main centres rely on. Even the Christchurch’s press gallery office has been closed. This will remove services from remaining regional centres of New Zealand. NZPA also has a reputation forged over decades for writing straight news reports - leaving opinion and beat up scandals to others.
“This is what happens when our services end up overseas owned. Just as the Australians closed bank branches when they bought up our banking industry, and overseas owned oil companies spent years closing petrol stations in regional New Zealand, the newspaper company has a similar lack of commitment
“Exactly the same outcome is predictable if John Key goes ahead with his plan to sell down our power companies. Foreign owners will buy them up over time, and services will begin to disappear. I would love to hear the advocates of foreign ownership tell us why closing NZPA is a great advertisement for overseas ownership.”
AMI bail-out
The necessity for a government bail-out of AMI is a slap in the face for people who say government should have no role in the economy, Progressive Wigram MP Jim Anderton says.
“Just as with South Canterbury Finance, Air NZ, Kiwirail and Kiwibank - sometimes the government has no responsible choice but to get involved in the economy.
“The difference between me and the National party is that National only gets involved in catastrophes, while I think that if we are going to be there in the bad times, taxpayers should share in some of the good times too.” Jim Anderton said.
Help pay for Chch with $462m from top 5%
He says the cut in the tax rate for the top 5% is worth at least $4.6 billion over ten years, which could be used to help meet the cost of rebuilding Christchurch and give young jobless Cantabrians trade skills to rebuild the city.
“The Government says the deficit is very big this year. It could reduce that deficit by reversing some of the tax cut they gave on 1 October, at least temporarily. Earners on incomes of over $100,000 would still get the benefit of tax cuts on income below $100,000 - the same tax cuts everyone else gets. The highest income earners in New Zealand would still get at least $500 million in tax cuts.
“But the country desperately needs the money now. The large deficit means the unaffordable 1 October 2010 top tax rate cut needs to be reversed. Surely NZ’s highest income earners would not object to that course of action”.
A calculation table is available on Treasury’s website here.
It shows income of around $9.3 billion is earned by those with incomes over $100,000. Using Treasury’s methodology, the difference in government revenue is calculated by multiplying that figure by 0.06 (i.e., 6 cents in the dollar, from 33 cent tax rate to 39 cent), and then applying a deflator of 17.3% (because, for example, some of the income won’t be spent and attract GST).
This gives a total cost - and therefore an increase in the fiscal deficit - of $462 million this year.
Government, not quake, caused greatest deficit in history
John Key told TVNZ today that the May 19 budget will include the biggest deficit in history, mainly because of the cost of the rebuild and recovery in Christchurch. “We need to pay for the earthquake, it’ll get booked to the account straight away," he claimed.
But Jim Anderton says the Prime Minister's claims are untrue.
“The National Government is myth-making. Even Treasury said in its update that two thirds of the deficit was happening before the second earthquake hit. The recession was caused by the National Government, not by the earthquake.
“The earthquake is expensive, but the economy was already deeply in the red when the earthquake hit.
“That’s because the Government’s so-called ‘tax switch’ last year was not revenue neutral as it claimed. In fact it has given billions of dollars more to top earners than we could afford.
“To now blame Christchurch is an insult to the hardworking people who are trying to put the city back together.
"Nor is there a reason to take much of the entire cost of the earthquake in a single year. No one expects the rebuild to be completed in a year. The Government hasn’t even got temporary accommodation underway from the first earthquake, when Japan is already building hundreds of temporary homes within weeks of its quake. For John Key to then claim that this inaction is causing great expense is simply untrue,” Jim Anderton said.
How to win an election
“Members of Parliament have a golden opportunity to make a difference here and shape a different future for alcohol on a path that would look like that of tobacco.
“In my 27 years as a Member of Parliament, this is the time to stand up and acknowledge that we need a united front in the House to deal with New Zealand's heavy drinking culture - and all the problems that flow from it
“Since the purchase age was lowered in 1999, there are now worse outcomes for our young people where alcohol is involved, but putting up the age of purchase is only one of the changes that need to be made - in a comprehensive way,” Jim Anderton said today.
“We need to tighten up the rules for liquor advertising, sponsorship and promotion.
“The current bill does not address the Law Commission's recommendations to develop a blueprint for addiction service delivery. Alcohol addiction must be a crucial part of any overall plan that deals with the nation's heavy-drinking culture. It affects 700,000 New Zealanders, that's the combined population of Wellington and Christchurch and is the cause of one third of all police arrests.
“We can do something about the needless number of drunk-driving deaths by legislating for lower blood-alcohol limits. New Zealand's blood alcohol level is in the highest group in the world. We must also implement minimum price limits.
“Alcohol is a legalised drug and it is sold with much hype, glamour and fanfare. If politicians want to make themselves relevant with New Zealand's communities, who live with the realities of alcohol abuse, our MPs could take up the slogan from DB Export ads, How to Lose an Election and give it a little twist. Instead of losing the election, they could well win one,” Jim Anderton said.
Earthquake News Update
My sympathies go out to all who have been affected, particularly those who have lost loved ones, been injured or sustained loss in any way.
I hope you and your family are coping without too much stress or loss at this difficult time.
In a time of crisis, we all rely on family, friends and neighbours. Please lend a hand to the elderly or sick in your community and to those most in need, as it may be sometime before normality resumes.
My office has been damaged but the phones and email are working and staff are available (working from home – with phone calls transferred) to assist. In some cases a message will need to be left, but we will deal with calls as fast as we can.
My best wishes and warmest regards to you all.
- Jim Anderton
Anderton victory over DB Export ad
The complaint against DB Breweries Export Beer campaign ‘How to lose an Election', was upheld in relation to the television, cinema and website advertisements. It wrongly used actual footage taken from the 1951 Waterfront Lock-Out riots to portray significant civil unrest, in response to Nordmeyer’s 1958 Budget, none of which actually happened.
“The Advertising Standards Authority complaints board has ruled against the television, cinema and website advertisements as well as arguments put forward by the advertiser and requested that the advertisements in their present form be withdrawn.
“It is true that there was a negative public reaction to the budget that increased beer and tobacco prices, but there were no riots and to imply there were is misleading, deceptive and does not reflect our history with any accuracy”, said Jim Anderton.
In its deliberation, the Complaints Board reviewed and upheld Jim Anderton’s complaint that ‘the presentation of the footage in the television, cinema and website advertisements from the 1951 waterfront dispute and lockout was both wrong and misleading’.
The board further judged the footage in the advertisements ‘demonstrably false’ and considered ‘the execution of ‘documentary type’ style, contrasting black and white screen-shots and accompanying authoritative narration coupled with actual footage of riots (from a different historical event) gave the impression that the advertisements were portraying a credible and realistic depiction of history’.
It was agreed the advertisements ‘went too far and the likely consumer conclusion was that the account portrayed in the advertisements was an accurate depiction of history, when it was no such thing’.
“The beer brewing company is effectively warning politicians not to regulate beer. The liquor industry seems to be making barbed threats with these advertisements, which through its own admission, were planned during the same period when the Law Commission was looking at reforming liquor legislation and receiving public submissions on tighter controls over its advertising”, says Jim Anderton.
Stop the link between sports and alcohol
Citing examples of the methods used by the alcohol industry to link sport and alcohol together from sponsorship at junior club level to corporate hospitality and sponsoring our national sports stars, Anderton pointed out that even the youngest players are in no doubt that beer is ‘joined at the hip’ with the game they play.
“By effectively targeting the game at Saturday club level, through all grades, the beer industry is making customers for life. The beer marketers know that young boys want to emulate their heroes such as the All Blacks, which is why their brand and logos are all over the background of All Black television and public appearances.
“By its association with sporting brilliance, the alcohol industry’s strategy is to sell more beer. As long as the brewers have an association with New Zealand’s iconic sports culture, there is no way of changing New Zealand’s heavy drinking culture,” Jim Anderton said.
“I don’t want to pull the rug from sports teams and know full well by advocating a change to alcohol sponsorship in sport I will get labeled a ‘wowser’, but things need to change.
“Banning sponsorship will require a commitment from government to cover a transition period. We did it with smoking. Remember the Rothman’s tobacco company’s New Zealand cricket sponsorship? It is now sponsored by the National Bank. This example shows that changes can be made.
“A thousand people die from alcohol related problems every year – three people every day. Alcohol harm totals billions of dollars a year, which we all end up paying for in taxation. New Zealand has a culture which has normalised the abuse of alcohol. Many factors contribute to this which we cannot change, like our history, but some we can, such as the contribution made by alcohol’s association with sport”, says Jim Anderton.
Lots of hype, not enough action
He warned that the National Party’s planned asset sales would not create any jobs, but would send more profits overseas.
“Does this look like the road to recovery? Five months after the earthquake every business on the opposite side of the road from my electorate office has left their premises. Nothing has changed or been done since September 4,” Jim Anderton said.
“Fast Forward to New Zealand’s economic recovery: After more than two years of his government, economic growth has stopped. Unemployment is going up, not down. Jobs are being lost not created, the cost of living is increasing but incomes aren’t.
“What is the prime minister’s strategy to tackle those problems? He doesn’t have one.”
Jim Anderton said asset sales are not an economic policy.
“It is a surrender of the sovereignty of New Zealand. Not one job will be created by selling off the people’s power companies. But every one of us will be paying higher power bills to overseas owners. And that will mean our overseas debt will get worse.
“Every time we turn on a light, the overseas owners will harvest a profit. Every time a business starts a machine, the overseas owners will get a cheque from us. A river in New Zealand, dammed by New Zealand for generations, supplies power along a transmission network built and maintained by New Zealanders, to a household in New Zealand. And somehow, someone in another country will clip the ticket on that transaction. That is what privatisation means.
“Mr Key says the assets will be kept in New Zealand hands. But that is what they said about Contact Energy. The Bank of New Zealand, Postbank, Air New Zealand, NZ Rail and practically every strategic asset which was privatised - who owns them now? Apart from those the last Labour-led Government bought back, they are mainly held in Australia,” Jim Anderton said.
Complaint over Nordmeyer advertisement to be considered by ASA
Jim Anderton’s complaint claims that the DB Export Beer advertising campaign portrays Labour Finance Minister Arnold Nordmeyer as a tight-fisted bore but distorts facts and uses misleading actual footage of the Waterfront Lock-out of 1951 to rewrite history to illustrate its point.
The subtext of the DB advertisement pushes the liquor industry line that government has no role in regulating the sale of liquor and basically supports the lack of effective action by the National-led government to implement the key recommendations of the Law Commission’s report on the problems surrounding the use and abuse of alcohol in New Zealand.
The ads will be judged on whether they have broken two advertising principals and one rule:
Basic Principal no 2) - No advertisement should impair public confidence in advertising and no 3) No advertisement should be misleading or deceptive or likely to mislead or deceive the consumer.
Rule 2) Truthful Presentation - Advertisements should not contain any statement or visual presentation or create an overall impression which directly or by implication, omission, ambiguity or exaggerated claim is misleading or deceptive, is likely to deceive or mislead the consumer, makes false and misleading representation, abuses the trust of the consumer or exploits his/her lack of experience or knowledge.
“The ASA has considered that the complaint against this advertising campaign falls within its jurisdiction and whether or not it is a breach of their code needs to be determined by them.
“This is good news as history is too often misrepresented through the careless use of information or even deliberate misinterpretation. I hope the ASA puts this matter right as not to do so would be a huge disservice to the lifetime’s work of Nordmeyer and allow our history to be cynically rewritten for the sole purpose of selling beer or other any products”, says Jim Anderton.
More background is here.
Someone Made It Up - The Fonterra Claim Is Wrong
Jim Anderton was on the Cabinet security committee for nine years and dealt with every request for assistance that came up. He also worked closely with Fonterra throughout the time of the Iraq invasion, first as minister of economic development and then minister of agriculture.
"If Fonterra had been part of the decision-making it is unthinkable I wouldn't have heard about it. It never happened.
"The request to send humanitarian assistance to Iraq came from the UN Security Council, not from the US. It was nothing to do with the American invasion, which New Zealand strongly opposed. Unlike the invasion, the humanitarian operation was entirely UN-sanctioned and entirely humanitarian. There was never any quid pro quo."
Jim Anderton believes a junior defence official has made up the information given to the US Embassy.
"There is a lot in those cables that is wrong. It shows the quality of intelligence is unreliable - a point I always knew, because I often got better information by reading the Guardian than from formal intelligence sources.
"The claim in the Wikileaks cable could only have come from someone who had no idea what happened. It won't be corroborated because it is untrue. It is therefore disappointing that conspiracy theorists have implied there must be something to the claim on a 'where there's smoke, there's fire' basis," Jim Anderton said.
ACC privatisation will be costly for farmers and taxpayers
“The evidence from Australia is clear: There are huge costs for New Zealand farmers and taxpayers from privatisation. It costs our economy and rewards overseas insurance companies who are currently doing over Christchurch businesses.
"This is no time to reward the insurance industry for bad behaviour."
A report from the previous National-Liberal Government in Australia, comparing accident compensation in Australia and New Zealand in 2004, showed levies in Australia’s competitive market were twice as expensive as those in New Zealand for the primary sector, which is the backbone of the New Zealand economy.
“A competitive scheme could result in a levy hike of as much as 250 per cent for rural people like farmers. Our ACC administration cost is about a third of Australian schemes.”
But Jim Anderton says the hidden cost of privatisation is what happens when a private company goes under.
“It is not just a chance that private insurers could collapse - it is a certainty. And then workers will either be left with no cover or the taxpayer has to pick up the bill. If we are going to pay the bill, we ought to collect the premium.
“In Victoria – where two companies competed so seriously they ran each other out of business – they competed by under funding the tail. When claims that take a long time to emerge come through, the companies that haven’t collected enough in premiums go under. If they’ve slightly misjudged the hidden liability, they can’t suddenly raise premiums on a pay-as you-go basis because they will be competed out of business. But ACC can. That way ACC can avoid overfunding the tail. But when private companies go broke and leave liabilities for long term claims unpaid, what happens to people who suddenly don’t have anyone paying for their health care?”
A report by the Australian parliamentary library on the collapse of Australia’s second biggest insurance company, HIH, is here: http://www.aph.gov.au/library/intguide/econ/hih_insurance.htm
“If National privatises the ACC worker account, the same thing will happen here. Companies will compete by underfunding the tail. Some will collapse. Taxpayers will get the bill.
“In the meantime, high risk sectors such as farming will pay higher premiums. This is one area where we don’t want to catch up to Australia,” Jim Anderton said
“All the profits from private insurance go overseas to Aussie owned insurance companies. The revenue from ACC stays in the New Zealand economy.
“The behaviour of those overseas insurance underwriters is on display right now in Christchurch. They are putting the screws on hundreds of businesses who thought they had adequate cover for business losses.
“This is no time to reward them.”
Parker’s election promise has bitten him on the backside
“The whole secrecy thing was the main reason I stood for Mayor in the first place and this latest council story of $1million parking spaces for Council staff proves yet again that Bob Parker’s assertions that he’s learnt what the people want, shows he has a lot to learn”, says Jim Anderton.
“It’s now abundantly clear that since plans for the Music School at the Art Centre were thrown out, the failure to deliver an underground car park for its staff has put the Council in a tailspin when their secret plans backfired.
“The Press story certainly explains why Art’s Centre Director Ken Franklin wanted to clear out the stallholders from the Art’s Centre Market. What disappoints is the secret way the Council goes about its business.
“Why do we not get the same level of communication on Council’s business deals that we got 24-7 in the early days of the earthquake? Could it be the election is over?
“These behind-closed-doors meetings are like a rerun of the movie Groundhog Day. Ratepayers are going to get more incensed at the Council’s lack of open consultation and the use of excuses such as ‘commercially sensitive’. Mayor Parker’s mandate is to lead an open council, that is what the people of Christchurch want, not more backroom deals that only seem to be self-serving”, says Jim Anderton.
Jim's E-News, December 2010
With just a couple of weeks until Christmas, it is time to wish you all the very best for the holiday and festive season. It has been a hectic year and in many respects a tumultuous one given the Christchurch earthquakes and the Christchurch Mayoral election. In recent weeks the Pike River Mine tragedy has occupied the thoughts of a nation.
Next year will be election year and I am predicting that the Government will go to the polls early. We need to be prepared early as populist leader John Key will not want to risk leaving an election until after the Rugby World Cup on the off-chance (unlikely I hope) that the All Blacks will again falter.
While the Government’s popularity seems high at the moment, it will take just a small swing to see a change in government. Roy Morgan polls over the last year show National and its support parties tracking downwards, with the latest one showing its support at 55.5%, down from a high of 61.5% in February. Meanwhile, Labour and its support parties have slowly but steadily tracked upwards, with their support now at 44.5%, compared to 41.61% at the time of the 2008 General Election.
All that is required is a swing of slightly more than 5% from National and its support parties to Labour, and so I am urging you to make your New Year’s resolution one that you will get out and campaign for a Labour victory.
As for me, it will be the first time in more than 27 years that I will not be a candidate, and so I will be throwing my support firmly behind Labour’s Megan Woods in my current seat of Wigram.
Once again, I wish you all a safe and happy Christmas and New Year and hope that 2011 is a good and prosperous one for you and your family.
The Pike River mining tragedy
Like all New Zealanders, I watched in horror as events unfolded at the Pike River Mine in November and was deeply saddened at the loss of 29 lives. That it has been a traumatic time for New Zealand and the West Coast in particular is something of an understatement, and my sympathies go to the families and communities affected by this tragic event.
As the various inquiries get underway into the cause of this disaster, we must now take responsibility for ensuring that such a tragedy does not happen again. We must refuse to accept that the deaths are a necessary cost of mining. All of us, from mine operators to government and parliament, must take steps to ensure that the safety of all miners is paramount.
Pike River is a modern state-of-the-art mine with presumably all the latest safety technology, but that didn’t save the lives of the 29 men. The new mine is on the same coal seam as the one in Brunner, where 65 men were killed by choking gas in 1896, and this event echoed the Strongman mine explosion which killed 19 miners in 1967.
How many more deaths must we experience in this industry before we ask some very serious questions about the viability of this type of mine?
It will be the best possible tribute to those who died to carefully examine the most comprehensive safety means possible before we put any more miners in harm’s way. Quite simply, we must make mining conditions safer.
For that reason I support the call for former ACC Chair Ross Wilson to be appointed to the Royal Commission investigating the Pike River tragedy. As a previous NZCTU President, Ross is well-respected, capable and has championed workplace safety over many years.
His presence would assure workers and their families about the integrity of the investigation.
It would be remiss of me not to acknowledge Superintendent Gary Knowles, who led the Police effort, and Pike River Chief Executive Peter Whittall. Both men showed calm, intelligent leadership and great strength at such a difficult time. And similarly, no praise is high enough for all of those who were and still are part of the plans to recover the bodies of their mining colleagues.
The speech can be found here.
Reserve Bank statement shows unaffordability of cut in top tax rate
It’s National’s fault.
The cuts in the top tax rate from 39 cents down to 33 cents since the 2008 election are helping to put New Zealand’s recovery on hold.
The Reserve Bank has identified “elimination of New Zealand’s fiscal deficit” as a factor that’s adding pressure to interest rates and keeping the dollar high.
The fiscal deficit is caused because the government reduced the top tax rate. 42% of the tax cuts since the 2008 election went to the top ten per cent of income earners. If the government had only pushed out the threshold at which the highest tax rate applies, and not cut the top tax rate from 39 cents to 33 cents, most of the fiscal deficit would not exist.
Because of the irresponsible cut in the top rate, interest rates are higher and the dollar is higher - putting pressure on our exporters and making it cheaper for foreigners to come in and buy up New Zealand.
This is National’s idea of economic management: The recovery has stalled. Business investment is ‘below average.’ Households are not spending. Homes aren’t selling. House prices are falling. Unemployment is higher than it was when National took office and wages have stalled.
The Reserve Bank today made clear that this is all National’s fault. But will the Prime Minister accept that the buck stops with him? Don’t count on it!
Canterbury businesses face tough times
I recently addressed a meeting of small business owners in Christchurch whose businesses are still significantly affected by the Canterbury earthquakes. Now that the quakes do not fill our television screens every night and many people get back to life as normal, many businesses remain on the brink of failure and no-one seems to care.
Small business depends on cash flow and there seems little appreciation from those in authority of the effect when a business is open, but where access is blocked by rubble and cordons, and where the damaged surroundings are such an eyesore that customers head to the sanctuary of shopping malls. Many of these businesses have suffered a loss of cash flow of up to 60% and more.
The Council seems to have abdicated any leadership on the issue. Not once has the Mayor briefed me or the local Labour members of parliament about earthquake recovery plans and arrangements, and I understand that he has not even formally briefed his own councillors.
I have been working with a number of local business owners and recently arranged to have 100 tonnes of rubble cleared from the streets of Sydenham and Beckenham, for a number of cordons to be removed or reduced, and for Colombo Street to be opened again to two-way traffic.
The Government announced last week that it is making available approximately $600,000 to assist small businesses for such things as courses in managing cash-flow. As one owner at the meeting said, I have been in business for 28 years and I know all I need about cash flow. What I need is some cash to flow.
Sour grapes: Yeah Right
Political sour grapes is how Christchurch Mayor Bob Parker has described my call for heads to roll over the Council’s decision to buy at a cost of $17 million, a number of properties from the failed and now bankrupted property developer David Henderson. But it is hardly a case of sour grapes as Mr Parker well knows.
In a deal which was controversial and which I criticised at the time, the Council paid top prices for the properties from a clearly cash-strapped Henderson. The deal was one whereby Henderson had an option to buy the properties back, and so it looked like a bailout rather than a smart business arrangement.
Since the purchase in 2008, the Council (meaning ratepayers) has paid almost $600,000 annually in interest on the loans, while watching the value of the properties slump. It was utterly predictable that Henderson would not be able to buy back the properties, and that is precisely what has happened.
As a result, the Council is stuck with overpriced and, in cases, derelict properties, with ratepayers picking up the interest costs. It was barmy then, it remains barmy and the most ridiculous expenditure of public money I have ever heard of - and among the heads I believe should roll is that of the Council CEO, Tony Marryatt, who must have been responsible for the advice to purchase under such unacceptable conditions.
Ironically, Mr Henderson was reported last week on National radio as saying that no-one in their right mind would buy inner city properties in Christchurch at the moment - which raises the obvious question of just how he managed to convince the Christchurch City Council to do just that.
Liquor industry ad an ‘Orwellian’ history lesson
Anyone who wants evidence of just how far the liquor industry will go to promote its product need look no further that the new DB Export advertising campaign as it attempts to rewrite New Zealand history in a way that would even astound ‘1984’ author, George Orwell.
The ad is set in 1958 around the time of the so-called ‘Black Budget’ of Labour’s Finance Minister, Arnold Nordmeyer. It paints Nordmeyer as a tight-fisted old bore who taxed beer to the extent that working men could no longer afford to drink. By contrast, brewer Moreton Coutts, the creator of DB export, is portrayed as giving back these working class drinkers not only their sacred turf of public bars, but also export quality beer at affordable prices.
In what is a distortion of epic proportion, the ad goes on to show archive footage of men rioting, ostensibly over the price of beer, when in fact the footage is from the 1951 waterfront lockout.
The truth is, that in the 1958 Budget, Nordmeyer raised excise on beer, spirits, cigarettes and petroleum as a part of a package to meet a balance of payments crisis that had been caused by the previous National government. Nordmeyer was putting the interests of New Zealand before short term political gain and was not trying to stop the working man’s drink after work. Nordmeyer was also, of course, the architect of New Zealand’s Public Health Scheme, the envy of most countries at the time of its introduction.
Pumping hundreds of thousands of dollars into patently dishonest advertising campaigns like this shows once again the level of cynicism shown by the liquor industry towards New Zealanders and the social problems their industry produces. In my view, the creators of this ad would have a place in George Orwell’s Ministry of Truth where lies are truth and truth is lies
My full press release can be found here.
The nine-point plan to social harm
In Parliament last month, I set out a nine-point plan on how a major social problem could be created in New Zealand with the active support of this government.
· It starts with legalising a drug known to be of high risk to public health, commercialising that drug, and then selling it in supermarkets and other easily accessible places.
· From there you make it legal to deal in the drug, particularly by glamorising its use through marketing, and then go on to bestow its manufacturers and dealers with honours and make them socially acceptable.
· The icing on the cake could be to link the drug to major sporting teams and events, and for government to fund and Prime Minister to champion venues for taking this particular drug.
· The Automobile Association could then support driving under that drug’s influence.
This might sound extreme, but the Government’s response to the Law Commission’s proposals on alcohol allows all of those things. The Commission describes alcohol as a legalised drug and proposes a new policy framework that it says amounts to a major shift in the regulation of alcohol. The Commission’s recommendations include increasing excise tax on alcohol, banning off-licence sales after 10.00pm, refusing entry to bars and night clubs after 2.00am and increasing the drinking age.
But what has been the Government’s response?
The Commission anticipated some opposition to its recommendations and this is exactly what has happened, to a degree that even I had not anticipated. In response to the report, the Government has done nothing whatsoever to address the problems created by alcohol or to fundamentally change the drinking culture in New Zealand.
The mood of the country towards alcohol abuse is changing, but that change is being led by the public and the media, not the Government. For example, there is 70% support to lower the drink-driving, blood-alcohol limit, yet the Government needs ‘more research’ before it will act. Why?
This Government, normally a slave to the polls, is out of step with the majority of New Zealanders and, until it changes, New Zealand’s record of deaths and injuries on our roads will remain among the worst in the world.
My speech on ‘the plan’ can be found here.
Will National decline liquor money?
I will be scrutinising closely donations from the liquor industry after National MPs objected to claims that their party takes industry money. In Parliament recently I asked National Party members to tell us, how much money is being put into the National Party’s ‘Victory Fund’ by the liquor industry?
For some reason they objected and wanted the question ruled out of order, claiming that it suggested they were influenced by liquor industry donations.
Attempting to have the question ruled out of order means that if it turns out that the Nats have accepted liquor industry donations and then pass pro-liquor laws, there is a potential breach of privilege issue.
If the Nats don’t want to be criticised for taking liquor industry money then they should simply publicly refuse to accept donations from that industry. Even anonymous donations have a habit of becoming public, so I look forward to National refusing any money from vested liquor interests – but I am not holding my breath.
Carole’s birthday
To end this newsletter on a celebratory note, I am delighted to report that we held a very successful 70th birthday brunch for my wife Carole during November. Held at the Clearwater Resort near Christchurch, around 80 friends, family and colleagues gathered to enjoy the occasion.
To me, a real highlight was being able to have so many of Carole’s family come from around New Zealand, a surprise to her as most had pretended they weren’t able to be there. And what a delight it was to hear so many nice speeches and comments about Carole from family members in particular.
A Merry Christmas and Happy New Year to you all.
Government must hold review on Insurance Industry’s failure to payout Canterbury businesses
“The government must hold international insurance underwriters accountable for refusing to pay out on legitimate business disruption claims caused by the Canterbury Earthquake,” says Anderton.
“It has become apparent that scores of small businesses, who thought they were adequately covered, have been lulled into a false sense of security by their insurance company. Perfectly reasonable claims are not being met, despite assurances from brokers after the event of the earthquake.
“It seems not even the brokers understand the full extent of what these policy claims purport to do. New Zealanders have to remember that it is not the insurance companies based here that are turning down legitimate claims, but International underwriters in London, Zurich and New York who are making these judgment calls.
“In the light of the earthquake being one of the most expensive natural disasters in the world for the insurance industry, it is vital that the global insurance industry looks at its practices and explains how these policies are meant to benefit its clientele in the future.
“If ever there was a time for reviewing the ‘business disruption’ insurance claims issue, it is now, but some in the industry are relying on confusing policy language and jargon to legally avoid making payouts.
“There is an urgent obligation here. Thousands of business owners have in good faith been individually paying out tens of thousands of dollars for years to give themselves a sense of security for loss of income as a result of a disaster like an earthquake, only to find that underwriters in the insurance industry are now wriggling out of their responsibilities.
“I urge the government to urgently take up this review and make the international heads of the insurance industry focus on the Canterbury Earthquake as a case study to improve future practices,” says Jim Anderton.
MP who campaigned on dental care says the evidence is in
Affordable dental care is the biggest gap in New Zealand’s health system, Progressive Wigram MP Jim Anderton says.
“The cost of seeing the dentist is beyond the means of thousands of New Zealanders - especially those on fixed incomes. A bill of $400 or more to get a sore tooth fixed? They can’t do it,” he says.
He was responding to the 2009 New Zealand Oral Health Survey, commissioned by the Ministry of Health, which has just been released. The survey looked at the dental health of 4,906 New Zealanders.
Jim Anderton campaigned for affordable dental health care in the 2008 election.
He says the new study vindicates his concern about the seriousness of the issue.
The study shows the number of New Zealanders who can’t afford to see a dentist increased by a third between 1988 and 2009.
“Nearly half of adult New Zealanders are not receiving any form of dental care. The main reason is the cost.
“In the twenty years since the last major study, dental care for those under 14 years old has improved, but it has significantly worsened for those over 18. Cost is the main factor that explains the difference. Dental care has got cheaper for kids.
“Free dental care is currently available in New Zealand from birth to 18 years.
“We need to start bringing the rest of dental health care into the public health system, starting by making dental care free for the most vulnerable groups, pregnant women and the over-65s.
“Prevention should be the thrust of a good oral health policy. Ensuring that all people have access to dental care will have a powerful preventative effect, and this should be supported by education, publicity and the fluoridation of all drinking water (if that is supported by a parliamentary inquiry). There should also be a bonding scheme for dentists and dental hygienists who are prepared to work in rural/provincial areas where dental professionals are in short supply in return for writing off student debt.”
Reserve Bank statement shows unaffordability of cut in top tax rate
The cuts in the top tax rate from 39 cents down to 33 cents since the 2008 election are helping to put New Zealand’s recovery on hold, Progressive Wigram MP Jim Anderton says.
The Reserve Bank today identified “elimination of New Zealand’s fiscal deficit” as a factor that’s adding pressure to interest rates and keeping the dollar high.
“The fiscal deficit is caused because the government reduced the top tax rate. 42% of the tax cuts since the 2008 election went to the top ten per cent of income earners.
“If the government had only pushed out the threshold at which the highest tax rate applies, and not cut the top tax rate from 39 cents to 33 cents, most of the fiscal deficit would not exist.
“Because of the irresponsible cut in the top rate, interest rates are higher and the dollar is higher - putting pressure on our exporters and making it cheaper for foreigners to come in and buy up New Zealand.
“This is National’s idea of economic management: The recovery has stalled. Business investment is ‘below average.’ Households are not spending. Homes aren’t selling. House prices are falling. Unemployment is higher than it was when National took office and wages have stalled.
“The Reserve Bank today made clear that this is all National’s fault. But will the Prime Minister accept that the buck stops with him? Don’t hold your breath,” Jim Anderton says.
Energy Companies passing on commercial costs to vulnerable customers
Jim Anderton said “The billpay service has always been in place as part of a commercial agreement between the post shop network and the energy companies. Recently a few rapacious energy companies, two of whom unfortunately happen to be state-owned enterprises, have been passing these costs on to customers.
“People who pay their bills via the post shop do so because they don’t have bank accounts or access to a computer. Usually they are elderly or poor. For energy companies to single out certain customers for extra fees is unfeeling at best and greedy at worst.
“People should not be punished for paying their bills in cash or in person. Many elderly people will never use internet banking or pay via direct debit as they don’t trust these methods and prefer the interaction of dealing with someone at the counter.
“Energy companies need to show a bit more compassion for their customers and understand their needs better. Counter payment fees should be bourne by the energy companies as part of their normal overhead costs”, says Jim Anderton.
Liquor industry ad an ‘Orwellian’ history lesson
“The ad is set in 1958 around the time of the so-called ‘Black Budget’ of Labour’s Finance Minister, Arnold Nordmeyer. It would be a good resource for NCEA students and their teachers as a classic example of Orwellian propaganda techniques used to distort history,” Jim Anderton said today.
The 1984-type facts and the truth are as follows:
- 1984-type fact: “Fancy a pint with a tight fisted bore” is the way the Labour Party’s Finance Minister Arnold Nordmeyer is portrayed. It continues, “As far as misers go, old man Nordmeyer took the cake”.
Truth: In the 1958 Budget, Nordmeyer had raised excise on beer, spirits, cigarettes and petroleum products as a part of a package to meet a balance of payments crisis that had been caused by the previous National government. Arnold Nordmeyer was putting the interests of New Zealand before short term political gain. He was not trying to stop the working man’s drink after work but to raise revenue from non-essential items. Nordmeyer was also of course the architect of New Zealand’s Public Health Scheme, at the time the envy of the world.
- 1984-type fact: Nordmeyer’s “infamous 1958 ‘Black Budget’ was a puritanical regime that taxed the world’s best beers so heavily no ordinary bloke could afford to drink them.”
Truth: In 1958, the amount of imported beers coming into New Zealand was next to nothing. The working man did not drink imported beer at the pub or at home. Imported beer did, however, have a tax advantage over the local product. Nordmeyer equalised the excise so that local and imported beers would be equally taxed.
- 1984-type fact: “Morton Coutts found the situation about as tolerable as a tofu burger. His mission was gutsy but simple: to dodge Nordmeyer’s tax by brewing the world’s best beer, right here. ”
- The ad implies that Morton Coutts invented the Continuous Fermentation Process as a result of the ‘Black Budget’ to give working men back their export quality beer.
- The ad shows the ‘toffs’ being thrown out of the public bar to be reclaimed by working men now that they can afford to drink good beer again (which has been altruistically ‘created’ for them by Morton Coutts).
Truth: Morton Coutts had taken over his father’s brewery in 1918. He had used the innovative Continuous Fermentation Process since 1956 – not as a result of the ’58 budget.
Nordmeyer’s budget, besides raising revenue to meet a serious budget deficit, was aimed at encouraging manufacturing in New Zealand so that full employment policies were maintained. Rather than beating the system, Morton Coutts was doing exactly what the Labour government wanted – building up a strong manufacturing base and creating jobs for New Zealand workers.
- 1984-type fact: Film footage titled ‘Men rioting in Wellington’. One is led to believe it is working men protesting over the price of a jug!
Truth: The ad uses real film footage shot during the Waterfront Lock-out of 1951. There were no riots in Wellington or public demonstrations of any sort against the 1958 Budget.
“Pumping hundreds of thousands of dollars a day into advertising campaigns like this one reveals once again the liquor industry’s cynicism towards New Zealand’s social problems, our history and the working people that drink the fourth most amount of beer per head in the world. For the liquor industry, there are no bottom lines. The creators of this ad would have a place in George Orwell’s Ministry of Truth where lies are truth and truth are lies,” Jim Anderton said.
Pike River Tragedy Statement
“I am very saddened to hear the latest news reports on the fate of the 29 miners. My thoughts and prayers are with their loved ones at this difficult time. This event has been one of the darkest hours for the West Coast and its community.
“Mining is an iconic industry on the West Coast but it is now our serious responsibility as a NZ community to see that such a tragedy is prevented from happening again.”
Extended free parking critical to city’s survival
“The Council should be doing everything it can to encourage people back into the city centre. Extended parking will give Christmas shoppers an incentive to venture into town again and bring much-needed revenue to the city’s shops and cafes.
“One of my constituents recently took out of town visitors to shops in the city centre and over three days paid $36 in parking fees – hardly an incentive to avoid the suburban malls.
“Many Christchurch businesses have suffered huge losses and face an uncertain future or imminent closure if their revenue doesn’t improve at this crucial time. Extending free parking is a positive step in the right direction and shows goodwill to people when the city needs them most.
“Our inner-city’s very survival relies on shoppers and diners to keep its businesses afloat. The Council must take a longer term view on creating cheaper parking, easing congestion and making the city centre more user-friendly to avoid inevitable business closures and losing valuable custom to the suburban shopping malls”, says Jim Anderton.
Will Nats decline liquor money?
Wigram MP Jim Anderton this afternoon asked parliament, “How much money is being put into the “Victory Fund” account of the National Party by the liquor industry – could we have an answer from National Party members today and/or from the liquor industry itself?”
National MPs objected to the question and wanted it ruled out of order, claiming the question suggested they were influenced by liquor industry donations.
Jim Anderton said that makes any liquor industry donations potentially a breach of privilege.
“If they don’t want to be criticised for taking money then they can’t take money from the industry. If they take money from the industry then they shouldn’t block criticism of how it looks when they take money from liquor and pass pro liquor laws.
“Even anonymous donations have a habit of finding public accountability. So I look forward to national honouring their commitment in Parliament today and refusing money from vested liquor interests.”
Government out of step with the nation over liquor reform
“The mood of the country towards alcohol abuse is changing but it is being led by the public and the media, not the government”.
In a speech against today’s first reading of the Alcohol Reform Bill, Jim Anderton read out a nine point plan on how to create a major social problem in New Zealand to illustrate how out of step our current liquor laws are. The plan detailed all of the current issues New Zealand faces with alcohol abuse and highlighted the government’s lack of leadership and action towards reforming New Zealand’s drinking culture* (see note on page two).
“Why does this government have difficulty accepting alcohol is a drug?,” says Jim Anderton. “In a week where our country was shamed by boozy revellers at Eden Park, our government is showing resistance towards informed public opinion. Getting wasted shouldn’t be an ambition to which New Zealanders aspire”.
In spite of worrying statistics that one in every five Kiwis are drinking heavily, the government has chosen to steer away from New Zealand and International expert advice, despite volumes of supporting evidence.
“Heavy drinking affects the combined population of Wellington and Christchurch and is costing this country billions every year. You’d think the government would be sitting up and taking notice, yet this bill is a recipe for the status quo – which is a recipe for more disaster”.
The Alcohol Reform Bill does not adequately address price, raising the drinking age, accessibility to alcohol, advertising and marketing, or drink driving, all of which are major contributors to New Zealand’s heavy drinking problem.
“This week, organisers of Christchurch’s NZ Cup Day implemented a simple wrist band scheme that was removed from patrons thought to be intoxicated. This would have been unheard of five years ago. It shows the public are willing to change entrenched drinking habits but the government is displaying political cowardice by refusing to give leadership on this critical issue of alcohol abuse.
“You have to seriously ask the question, what is the National Party getting from the Liquor Industry that prevents it taking the obvious and necessary steps to seriously address the widespread demand from New Zealanders for genuine liquor reform”, says Jim Anderton.
Council inaction causing local businesses to face closure
A crunch meeting, chaired by Jim Anderton, was held on Thursday October 28th, between Sydenham and Beckenham business owners, senior council staff and representatives from the insurance industry, government agencies and the commercial sector.
The meeting agreed the situation had gone on for too long and an immediate resolution was required.
Insurance companies also agreed to treat individual cases on merit and on a ‘goodwill’ basis to speed up claims.
The Christchurch City Council has effectively been put on notice to clear up the mess and put an end to the misery of local traders before many of them go out of business.
“Almost two months after the earthquake parts of Sydenham and Beckenham still look like a war-zone.
“Bricks, rubble and debris are piled high and have remained untouched for over eight weeks. The addition of cordons and traffic diversions are making pedestrian access a logistical nightmare for local businesses and retail shops in particular are really suffering.
“The Council cleared up this kind of mess in the city centre weeks ago, so why has this iconic ‘character’ suburb of Christchurch been neglected?
“As a result of the meeting, I expect to see the clean-up and demolition finally get underway and for Colombo Street to be opened up to two-way traffic and parking again, as soon as possible.
“Too much time has been wasted since the earthquake, with conflicting advice, lack of communication and confusion over structural engineering reports, consent applications for repairs or demolition as well as new policy announcements on doubling the earthquake code requirement, all of which have delayed decisions on repairs and/or demolition.
“An urgent resolution to these matters is now critical, not only for the future but also for the very survival of a large amount of important businesses in Sydenham and Beckenham”, says Jim Anderton.
NZ Post appointment of Cameron
“Rob Cameron was appointed to review the Kiwibank business case. He reported to Treasury that he opposed the creation of Kiwibank because it wouldn’t succeed, and wouldn’t get many customers. Today it has 800,000.
“Kiwibank achieved targets in eighteen months that Mr Cameron predicted would take eleven years to achieve. He could hardly have been more wrong.
“Mr Cameron also predicted that Kiwibank would not be able to withstand the competitive response of the Australian banks. He was spectacularly wrong about that, too - and overlooked the benefits to New Zealand that occurred because the Australian banks were forced to reduce fees, improve services and stop closing branches.
“After being spectacularly wrong about the success of Kiwibank, the appointment of Mr Cameron to review NZ Post looks like another round in the Government’s ongoing push to sell some or all of NZ Post and Kiwibank.
“Why else would they appoint an individual who has prominently advocated for the privatisation of SOEs to help boost the share market.”
Council should heed Ballantyne’s message
“The Christchurch City Council should take heed of our most successful city retailer and take careful note of what he has to say”, Jim Anderton said.
“Ballantynes is Christchurch’s premier store and the only thing standing between success and disaster in Christchurch’s city centre, which has been dying for a number of years because of the proliferation and user-friendly environment of suburban shopping malls outside of the central business area.
“The Council should take on board Ballantyne’s views and include them in any plans to rejuvenate the heart of our city before it disintegrates any further,” says Jim Anderton.
Nick Smith’s suicide comments insensitive - again
Yesterday Nick Smith was quoted as saying that there is no difference between losing someone to suicide ‘to where a loved one is lost to heart disease or is lost to cancer.’
“He doesn’t know what he’s talking about. There is a difference. A sudden death is always a tragedy. But at least a post-mortem will tell a family - ‘Your loved-one died of a heart attack.’ No post-mortem will ever tell the family of someone who has committed suicide why they did it.
“The families are left in a state of shock with very little information. They blame themselves. And research has shown that there is a very real danger of other members of a family committing suicide unless they get the help they need after the loss.”
As Associate Minister of Health in charge of the suicide prevention programme, in the last Labour-led government, Jim Anderton introduced new support services so that experienced clinical psychologists and Victim Support workers had the resources to help families after they have lost a loved one to suicide.
The National government announced last week that were cutting this service. The cost of the service nation-wide is about $3 million.
“Mental health has always been the Cinderella of the health system. Nick Smith is making things worse with his ignorant comments,” says Jim Anderton.
The number of recorded suicide deaths has been on a downward trend since these programmes were introduced.
Whilst the number of recorded suicide deaths remains high, there has been a significant downward trend in recent years, partly due to these programmes to help families after a suicide.
From a high of 516 deaths in 1999, this had fallen to 483 deaths in 2007. Among young people, those aged 15 to 24 years, the trend was more marked dropping from 120 deaths in 1999 to 94 in 2007 – a drop of 46.6%.
Government response predictable
“All the expert advice is that if you put up the price, consumption will decline. But this government is merely asking the industry to provide sales and pricing data over the next year, so that can investigate a minimum pricing regime,” Jim Anderton said.
Today Justice Minister Simon Power announced the Government’s alcohol reforms in response to the Law Commission Report which called for sweeping changes to alcohol legislation.
“The Government has chosen to cherry pick some recommendations while ignoring others. It has ignored the call for restrictions on the advertising and sponsorship of alcohol, for changes to the cost of alcohol to deter all drinkers, and for a clear message on the drinking age - an increase to 20 years old.
“Splitting the drinking age sends a mixed message. It’s like saying ‘I sort of don’t want my teenagers to binge drink at the weekend. Just do it at the bar and I’ll turn a blind eye’.
“I have campaigned for years to raise the age back to twenty years at bars and off-licenses. My colleague Matt Robson's Member's Bill provided for this back in 2005. But when it came to the Second Reading, the House failed to support an increase to the age.
“I will be using my position as a Member of Parliament to move an amendment to raise the age for both bars and off-licenses. Given the two major parties are allowing a conscience vote on this, my amendment has a real chance of succeeding,” says Jim Anderton.
“The changes announced today will not bring about the changes that are needed to tackle the drinking culture head-on. If John Key’s government had the courage to stand apart from the alcohol industry, it would have lowered the drink drive level to 50mg from its present level of 80mg.
“The truth is the alcohol lobby has got to John Key’s government and they don’t have the guts to do what’s right,” says Jim Anderton.
Saving lives is more important than saving dollars
“As Associate Minister of Health in charge of the suicide prevention programme, in the last Labour-led government, I introduced these new support services so that experienced clinical psychologists and Victim Support workers had the resources to help families after they have lost a loved one to suicide,” Jim Anderton said.
“It’s not just because it’s the humane and right thing to do - to help people at the worst time of their lives - but because research shows that there is a very real danger of other members of a family committing suicide unless they get the help they need after the loss, by suicide, of a family member.
“It is an outrage that the National Government thinks it is no big deal to cut the only ‘Help Line’ that these families have for the sake of saving about $3 million dollars.
“What makes it even worse is that the number of recorded suicide deaths is on a downward trend since we introduced these programmes. We’re having some success. Now is not the time to stop.”
Whilst the number of recorded suicide deaths remain high, there has been a significant downward trend in recent years.
From a high of 516 deaths in 1999, this had fallen to 483 deaths in 2007. Among young people, those aged 15 to 24 years, the trend was more marked dropping from 120 deaths in 1999 to 94 in 2007 – a drop of 46.6%.
“Unlike the road toll the factors causing people to attempt suicide are complex. That’s why we need a range of initiatives and responses to prevent people attempting suicide and to support families when they lose a loved one.”
In 2007, research showed that grief after a suicide can raise a wide range of issues for those affected, including the need for information about suicide and mental health problems, the need for social and emotional support, and access to counselling and therapy.
“To pull the rug on funding for counselling services when we know we’re getting results and saving lives, is unforgivable”, Jim Anderton said.
Lowering the drink-drive limit is popular - why not do it?
In Parliament yesterday Jim Anderton criticised Transport Minister Steven Joyce for refusing to lower the drink-drive limit to 50mg of alcohol per 100ml of blood, in line with most other OECD countries like Australia.
At the moment the limit is 80mg. That is about 80% of a bottle of wine for an average man and about 60% of a bottle for an average woman, over a two hour period.
The URM poll shows that 70% of New Zealanders support lowering the drink-drive limit. Another poll on TVNZ’s Close Up program last night found that 68% favoured lowering the limit.
“The truth is the alcohol lobby has got to John Key’s government and it has’t got the guts to do what’s right.”
Jim Anderton asked Steven Joyce how he could reconcile his comments last year that the existing drink-driving limit was ‘ridiculous’ with his decision this week to spend two more years researching the ‘ridiculous’ limit.
The Motor Trade Association said yesterday that it's surprised that the government needs a further two years of research. Our level is already high by international standards, and alcohol is recognised as a significant contributor to New Zealand's high road toll.
The Ministry of Transport has estimated that reducing the limit could save up to 33 lives, prevent as many as 680 injuries, and save up to $238 million every year.
“We don’t need more research. We know that people are able to drive in this country while clinically intoxicated. That’s not good enough. What we need now is urgent action.
“John Key’s government has shoved the issue in the too hard basket for reasons it is difficult to fathom,” says Jim Anderton
Anderton hands over agriculture portfolio
“I want to give someone else the opportunity to get up to speed before next year’s election, given that I won’t be standing again,” Jim Anderton said.
“In my time remaining as an MP, I have decided to prioritise workable models for affordable dental treatment and the reform of alcohol legislation.”
The Progressive Party campaigned for affordable dental treatment in the 2008 election. Jim Anderton has also been an active spokesperson for the +5 Solution to alcohol reform which involves increasing the purchase age to 20 years and curbing the sale and marketing of alcohol.
Jim Anderton was Minister of Agriculture and Forestry from 2005 to 2008 under the Labour-Progressive government. He is seen as responsible for putting the farming sector back at the centre of the government’s economic strategy after it had been demoted to a ‘sunset industry’ by former governments.
He created the Fast Forward Fund for the primary industry sector which saw a $700 million research and development fund established which was planned to grow to $2000 million over ten years. The private sector was to match government funding $ for $ and investment interest earned would build the total fund to around $2000 million.
John Key’s National government got rid of the Fast Forward Fund as well as tax credits for businesses investing in R&D. That was a loss of over $2.5 billion for the productive, export earning sectors of the New Zealand economy.
“John Key hardly mentions agriculture. But if he thinks he can grow the New Zealand economy while ignoring the farming sector and by building cycle ways he’s dreaming
“I will continue to advocate for agricultural issues,” Jim Anderton said.
Progressive Party Update
Party activists and members continue to work closely with the Labour Party, both on the ground and in parliament.
“We remain focused on key policy issues like affordable dental health care for all New Zealanders, and on challenging the government not to sell Kiwibank,” says Jim Anderton.
The Party will continue to support its members who are seeking election both at the up-coming local body elections and the general election next year.
Nats back to weasel words on Kiwibank
“Who’s he going to tell? John Key or the country?”
John Key was forced to rule out a sale of Kiwibank on Friday after more than a week of confusion following finance minister Bill English’s post-budget comments that Kiwibank could be up for sale in time for the next election.
Steven Joyce went head to head with Labour’s Darren Hughes on Newstalk ZB’s Mike Hoskings breakfast show this morning.
When asked about Kiwibank he said that from his point of view “we’ve said we won’t change anything, and if we did we’d go to the country.”
“That might be his point of view, but it contradicts John Key’s latest point of view. Although if you take Mr Key’s ‘point of view’ from five days ago, then you’d have agreement between Mr Joyce’s point of view today and Mr Key’s point then. Of course Bill English has his own point of view. He wants to sell. Then there’s National MP Nathan Guy’s point of view - he signed a pledge that he would never support or initiate the sale of Kiwibank.”
“That’s a lot of points of view. Who should we be listening to now?” says Jim Anderton.
“One thing is crystal clear. The National party are not united on this issue. The ‘rat-pack’ want to sell, doesn’t matter what John Key says,” says Jim Anderton.
Steven Joyce also said when pushed further about Kiwibank “the reality is that nothing’s changed; we haven’t even asked for any work to be done, but if we do it’ll be in time for the next election.”
“Who can honestly believe John Key’s promise never to sell Kiwibank now?” says Jim Anderton.
Now NZ Post on the block
“The Prime Minister is now once again saying Kiwibank won’t be sold while he is leader.
He has made that declaration before and then forgotten about it, so there is every reason to suspect he will go back on his word again. Plainly, his political commitments mean little to the prime minister.
“In making his statement about Kiwibank today, Mr Key announced on radio that it is ‘technically’ or ‘theoretically’ possible that NZ Post will be sold.
“That’s like being technically or theoretically pregnant. Either National is going to sell NZ Post or it isn’t.
“Mr Key is using sneaky language. He should simply say National won’t sell NZ Post. It does a good job in pubic ownership.
“Rural communities in particular will lose their services or they will cost more if John Key sells NZ Post.”
Jim Anderton is also asking whether the Reserve Bank and Treasury will correct the PM’s statement that Kiwibank has an implicit government guarantee.
“When I made a statement that politics would mean a government is unlikely to allow Kiwibank to fail, the Reserve Bank issued a statement clarifying that there is no government guarantee.
“The watchdog is applying a different standard to the prime minister by refusing to make the same clarification today,” Jim Anderton said.
Key Should Stop Playing Personal Politics And Come Clean On Kiwibank
now, Progressive Wigram MP Jim Anderton says.
"The Government has been fudging assets sales for two weeks. If they
weren't going to sell Kiwibank, they would have said so by now and made
the story go away.
"Instead of coming clean on Kiwibank, the prime minister is now
resorting to personal abuse. For example, "Who cares what Jim Anderton
says?"
"First John Key indicated his promise before the election not to sell
Kiwibank 'ever' was worthless. Then he started playing silly semantic
games. Now he has reduced himself to the kind of petty personal
point-scoring games he claimed he would stand aside from in politics.
"John Key is behaving just like the kind of politician he said he would
never become.
"If he wants to sell Kiwibank, he should be straight with New
Zealanders. He should make his case for the sale on its merits, not on
petty personal politicking," Jim Anderton said.
Japan PM resigns over broken promise - why not Key?
“Perhaps John Key is confusing the work ethics that drive the shady world of international speculation, with the moral demands of being in government.
“If you’re Prime Minister you say what you mean and keep your promises. That’s part of the job. If you’re not up to that, you resign. If it’s good enough for the Japanese Prime Minister, why not Mr Key?”
Japanese Prime Minister Yukio Hatoyama resigned yesterday after eight months in office after a broken campaign promise made before he was elected, to move a United States Marine base off the southern island of Okinawa.
“John Key has broken his promise not to sell Kiwibank ‘at any time in the future’ - ever. He’s now done a U-turn and says the promise not to sell - ever - is only good for the first term of his government.
“That means Kiwibank is only safe for another 12-18 months. Then the ‘for sale’ sign goes up.”
“John Key made a pledge to resign if he broke his promise not to touch superannuation.”
“When is a John Key promise not a promise? When it’s a promise not to put up GST or sell Kiwibank. This is the kind of political cynicism which has changed governments and electoral systems in New Zealand and will do so again.
“John Key should give New Zealanders a list of all the promises he’s made. Tell people now which ones he intends to keep, and which promises he intends to break,” says Jim Anderton.
Nats cynical games over Kiwibank sale
He did this with his broken promises not to sell Kiwibank. In 2008, MPs like Nathan Guy won marginal seats like Otaki by signing a pledge that the National Party would not sell Kiwibank,”
“On August 7 2008 before the election, John Key refused to sign a pledge not to sell Kiwibank. Then when he could see how unpopular that was, he changed his mind and promised multiple times not to sell Kiwibank - ever - if he was elected.
“The National party needed all the votes it could get in the marginal seats, like Otaki.
“That is presumably why Cabinet Minister and National Party MP Nathan Guy did sign the pledge on behalf of the National Party not to initiate a sale of Kiwibank, and he did it in front of hundreds of local people.
“I wonder how those people feel now?”
After he signed the pledge, Nathan Guy won the Otaki seat with a majority of 1354.
“Assuming half those people had decided not to vote for National once they knew that asset sales were going to be back on the agenda (less than 700 votes), those votes probably would have gone to the Labour candidate Darren Hughes. Mr Guy would then not have won that seat.
“John Key’s policy on asset sales changed during the election, and it helped get his government elected. Now the truth is coming out. John Key will sell Kiwibank if he wins another term in government.
“‘Ever - is a short word and a short time in John Key’s world.”
“This is the kind of cynical politics that brings governments down,” says Jim Anderton.
John Key promised not to sell Kiwibank 'ever'
“Since the Budget, the government has said its promise not to sell Kiwibank was only good for its first term. But on several occasions before the election, John Key personally insisted that the promise was permanent.
The Dominion Post after TV3 leaders debate 4 November 2008
John Key answers readers’ questions in The Dominion Post 22 October 2008:
“You made a statement on television that your government if elected will not sell Kiwibank in its first term of office. Does that mean that you do intend selling Kiwibank eventually?” (Carol Aldridge, Porirua)
‘I am ruling out selling Kiwibank at any point in the future.’ John Key
The Dominion Post 4 November 2008, following TV3 leaders' debate – 5 days before the election:
“Mr Key said he would not sell Kiwibank - and when asked if that meant ‘ever’ responded: ‘No, I’ve ruled it out’.”
The Press 4 November 2008
“John Key ruled out National selling Kiwibank at any stage ‘never....we’ve ruled it out.’”
Jim Anderton says: “John Key’s current position on Kiwibank is a broken promise. If he had used the weasel words he is now using in answer to these questions during the election campaign, the issue would have turned into a major campaign fiasco for National. He said one thing to get elected and now he is saying something else. That is flat out untrustworthy.
“Shares in Kiwibank should not be floated because it’s doing a great job. It’s making money, and because we own it, those profits go straight back into the New Zealand economy. John Key needs to come clean and tell us - did he mislead the electorate or is this another policy U-turn?” says Jim Anderton.
Kiwibank will get downgraded if sold, says credit rating agency
That's what Progressive Wigram MP Jim Anderton says will happen after confirmation from credit ratings agency Standard & Poors that it would downgrade Kiwibank if it is sold.
Standard & Poors said "the current ratings on Kiwibank are equalized with the bank's wholly government-owned parent New Zealand Post Ltd. ...The ratings on the bank get a significant uplift from the bank's stand-alone credit profile due to an unconditional and irrevocable guarantee from the parent. Consequently, any change in the bank's ownership--which would likely be accompanied by a dilution in the parent guarantee--would be a possible trigger for rating review."
Jim Anderton says this means that if Bill English and John Key don't rule out selling Kiwibank, it will be downgraded.
"A downgrade makes Kiwibank's cost of borrowing more expensive, which means Mums and Dads pay more to borrow to buy a home.
"The Government's asset sales program is the worst feature of this year's Budget, and it’s about to cost costing Kiwi families money.
“What is there about the almost universally negative publicity following Bill English’s speculative comments about the sale of Kiwibank that this government does not understand?” says Jim Anderton.
Money still not flowing out of R&D fund
The Primary Growth Partnership replaced the Labour-Progressive government’s Fast Forward Fund which would have allocated $2 billion worth of funding for research and development in the primary sector.
$700 million of that was already in the bank, but was taken back into government coffers, and replaced with $30 million, allocated to the new Primary Growth Partnership (PGP)
This week the PGP, which has so far failed to fund any research projects during the first 18 months of this National led government, announced that it had approved funding for three projects, worth about $3.9 million per year for five years.
“Don’t hold your breath. Apparently there is still a pile of paper work and bureaucracy to go through before even a time line for releasing the funding is agreed.
“This is the problem when you tie up innovative business investment decisions in red tape. The Fast Forward Fund was part ‘owned’ by the private sector. They made the decisions about who and how funding would be distributed in partnership with the government. An 18 month delay would have been totally unacceptable when it has resulted in such small scale decisions.
“Now, even when decisions are made to proceed, businesses are being told to sit back and be patient while ‘milestones’ are being delivered and strategy papers written to help decide when to release funds. Here’s a few ‘milestones’ the National government might want to mark:
- $700 million for R&D replaced with $30 million per year,
- $5 million of that is deducted to fund the National Center for Agricultural Greenhouse Gas Research (not to help develop primary sector production),
- A further $2 has gone to fund the administrative costs of the PGP, and
- About $3.9 million is finally allocated to R&D projects, but wait - there’s a still a delay while more paper work is done.
“That leaves about $20 million unallocated. Going on the past 18 months, it will take them about ten years to allocate the rest of this miserly funding,” says Jim Anderton.
Telecom share decline is a lesson for privatising government
"Today's decline in value is the direct result of a monopoly that got privatised being unable to adapt when its monopoly position finally began to unwind.
"Telecom spent about fifteen years dramatically overcharging New Zealanders and blocking innovative competition because it was privatised as a monopoly.
"Billions of dollars were taken out of New Zealand by foreign owners, at a time when a National Government was saying it was owned by Kiwi Mums and Dads.
"Since its monopoly position has been eroded, Telecom has faded because its monopolistic behaviour was hard-baked into the company and it couldn't adapt.
"Most financial commentators supported the sale of Telecom, but it has been a disaster for New Zealand.
"Today the same commentators are still supporting privatisation of successful Kiwi businesses, like Kiwibank.
"I recall consultant Rob Cameron telling the NZ Post Board that Kiwibank would only have ten thousand 'low value' customers after five years. It has between seven and eight hundred thousand and that shows how much credibility he has in calling for privatisation now. Professor Tripe from Massey University claimed Kiwibank would be a dog, and now says it needs $600 million of private capital because it is growing so fast.
"Instead of listening to people who repeatedly get their predictions wrong, the government should look at the record of privatisation: Telecom, Air New Zealand, Kiwi Rail. Disaster, disaster, and even more disaster."
National's threat to sell Kiwibank
Jim Anderton says people worried about Australian banks buying Kiwi bank will immediately be concerned.
“That can only hurt Kiwibank, and therefore hurt the Kiwi Mums and Dads who already own it. It is reckless for a finance minister to deliberately undermine the value of a public asset.
“Kiwibank is a huge success, mainly because it’s ours. Selling the bank would push it straight into overseas hands. The buyers would be the Australian banks.
“Hundreds of thousands of New Zealanders signed up to Kiwibank because it’s ours. Since Kiwibank opened, the other banks have stopped closing branches and increasing fees. They’re feeling the heat. And that’s good for Kiwis.
“National repeatedly promised not to sell Kiwibank,” Jim Anderton said.
“Just this week I received a letter from a retired superannuitant on the Hibiscus Coast who has approached every commercial bank, all Australian owned, for a loan to buy a modest retirement residence for himself. They all refused, and the only bank that would lend him the money, and has now given him peace of mind for his retirement, was Kiwibank.”
Canterbury people told to shut up and pay up
Jim Anderton has obtained documents from the Riccarton Residents’ Association which show that the Commissioners are writing to submitters saying they will not hear submissions on “accountability through elected representatives”.
The Commissioners were appointed to replace the democratically elected Councillors and run the Environment Canterbury Regional Council. New elections will not take place for up to three and a half years.
“Silencing the voice of Canterbury people is a bad start for a bunch of unelected Commissioners, like David Caygill a former Christchurch City Councillor, Member of Parliament and Cabinet Minister, who should know better,” says Jim Anderton.
“To tell residents of Canterbury who wish to make submissions on achieving the earliest possible return to elected democracy to ECan that ‘your views will be noted but not heard,’ is the height of arrogance.
“Canterbury people were shut out of the decision to sack the ECan Council and cancel elections for several years when the Environment Canterbury Act was rushed through Parliament under extra-ordinary urgency.
“Now the ECan Commissioners are taking away the one chance for Canterbury people to have their say on this issue,” Jim Anderton says.
A large number of people and organisations have already submitted questions on accountability and the need for representatives to be elected as soon as possible. The principle of accountability remains even if the Council has been sacked.
“The Government has said that there will be no elections for up to three and a half years. So why can’t local people and organisations not submit their views on why they think elections should be held in 12 months, or 18 months?”
Let them eat cake!
“This National led government has shown its true colours today. The CEO of Telecom who reportedly earned $7 million last year, will now get an extra $6608 per week. Those on $600,000 will take home about an extra $500.
Meanwhile working Kiwis on $50,000 will spend about an extra $23 on increased GST at the supermarket, so their tax cut will be a miserly $5.50. More likely it will be wiped out by inflation.
Those on low incomes will pay more as a result of an increase in GST from 12.5% to 15%.
“What is this government saying to families on lower incomes in today’s budget? ‘Let them eat cake!’ It says ‘don’t worry about an increase in GST and rising food prices, because the rich consume more than the poor, so they’ll pay more in GST. Is that meant to make low income families feel better? ‘You might not be able to afford to buy much food - but just think of the GST you’re saving when you don’t eat?’
“There is nothing in this budget to help grow the economy or create jobs. John Key has got rid of $2 billion worth of Research and Development set up by the last Labour-Progressive government and replaced it with his own personal science advisor and just over a quarter of what scientists would have got under our government.
“New Zealand’s rates of increasing income inequality were amongst the worst in the world according to OECD figures. We only started to close that gap under a Labour-Progressive government. Now the gap will widen again.”
A recent UNICEF survey of the well-being of children puts New Zealand almost last - 24th out of 25 countries. It measured immunisation levels, infant death and early death from
injury and illness.
“Here’s what a respected Professor of Epidemiology in New Zealand said recently ‘In New Zealand, social injustice is killing and maiming our children on a grand scale.’ Nothing in this budget is going to change that.
“If you voted for this government because you thought John Key’s ‘rag to riches’ story might rub off on the country, now you know he is no Robin Hood - more a Sheriff of Nottingham”, Jim Anderton said today.
How does cutting top tax rate cut make super more affordable?
He has released the Progressive Party’s submission to the 2010 New Zealand Superannuation Retirement Income Review today.
Jim Anderton was one of the signatories of the 1993 Superannuation Accord that aimed to provide long-term stability to superannuation.
The main principle agreed to by all parties was that ‘the net amount provided from public funds for a retired person should reduce as that person’s total income increases’.
That principle could be met by a surcharge on superannuation or by a progressive income tax scale.
“If the National Government makes income tax less progressive in this budget by reducing the top personal income tax rate, then how is it going to meet the Accord principle that ‘the net amount provided from public funds for a retired person should reduce as that person’s total income increases’?
“Either National will ultimately reduce entitlement to superannuation, or it no longer believes that the amount provided from public funds should decrease as a person’s income increases. If it is the latter, then National will be solely to blame if it tries to say the cost of superannuation is unsustainable. Alternatively, if it is ultimately planning to cut publicly provided retirement incomes, then people deserve to be told.”
Jim Anderton’s submission shows that continuing New Zealand Superannuation at age 65, indexed to wages, is sustainable for the long term provided the government sticks to Accord principles.
“The future cost of super is affordable, but the government needs to keep the means to afford it”, Jim Anderton said.
Deal with alcohol ads to deal with binge drinking culture
He was responding to the release of the Law Commission’s report on liquor law changes. The report recommends a package of policies designed to reduce criminal offending and
the harm caused by alcohol. These include, increasing the purchasing age, increasing the price of alcohol, and cutting back the hours licensed premises are open.
The report recognises that alcohol misuse is a major contributor to violent offending.
“The police know this; 60 percent of people arrested by the police were under the influence of alcohol when they committed their crime. There are now 70,000 physical and sexual assaults a year in New Zealand that can be attributed to alcohol abuse. That’s 1350 a week.
“We have a problem with alcohol abuse in this country. People with responsible drinking habits are not the target. The culture of tolerating heavy drinking is. We need law changes to alter that. Anyone who thinks we can change abusive behaviour without that is dreaming.”
“But we also need a strong position on regulating the marketing and advertising of alcohol. Reducing alcohol advertising and sponsorship of sports games for example, would go a long way towards changing people’s attitudes to alcohol.
“It’s obscene that you can go to an under 6s ripper rugby game on a Saturday, and see five year olds running around with beer ads all over the flags and the goal posts.
“Here’s what the alcohol industry won’t tell you; they make their profits out of heavy drinkers. So targeting kids as young as five to associate alcohol with sports is part of developing heavy drinkers for the future.
“Former Progessive MP Matt Robson’s private members bill called for alcohol advertising on TV to be moved from 8.30pm to 10pm. I’d like to see alcohol sponsorship of sports games banned. We did it for smoking. You don’t have Benson & Hedges sponsoring tennis games anymore. We should do the same for alcohol sponsorships,” says Jim Anderton.
Affordable dental care within reach for all Kiwis
For less than $1 billion, dental care could be brought into the public health system so that every New Zealand, no matter what their age, had access to affordable care, says Jim Anderton MP for Wigram and Progressive Party leader.
“That includes what we already spend on free dental care for under 18 year olds (about $120 million); plus the millions we spend on treating severe cases when people turn up in hospital emergency rooms,” Jim Anderton said today.
Jim Anderton outlined his proposals for subsidised dental care to the annual conference of the New Zealand School and Community Oral Health Services Society. This year marks 90 years since the School Dental Service was established, the first of its kind in the world.
“Fifty percent of New Zealanders do not visit the dentist regularly, and many of them turn up at emergency wards. You can see the queues at hospitals across New Zealand - just like a third world country,” says Jim Anderton.
“The last Labour Progressive government extended free dental care to all under 18s so that adolescents who were not at school or enrolled at a dentist, and therefore not covered, can now get free care.
“Former Labour Minister of Health, Annette King introduced one hundred mobile dental clinics to service schools, and the first ever dedicated Community Oral Health Services to target adolescents. Members of the New Zealand School and Community Oral Health Services Society are in the process of rolling out these changes.
“I believe we could roll out a subsidised dental system in stages, in the same way we introduced affordable GP visits while in government. We’ve already targeted the under 18s. Other vulnerable groups include retired New Zealanders and pregnant mothers.
“Unfortunately under this National government there isn’t the political will to do anything about dental care. Tony Ryall has removed oral health completely, as a health target.”
“Funding required for a subsidised system could be raised either through income tax, or by a small ACC type earner’s levy, in return for a lifetime of free or affordable dental treatment. Research into options continues, in consultation with the dental industry,” Jim Anderton said.
Government favours alcohol industry
“These people are campaigning to stop the harm and violence that erupts as a result of alcohol abuse, particularly the harm done to young New Zealanders,” Jim Anderton said.
“They are not campaigning to stop people enjoying a glass of wine at a wedding, and to suggest that shows how ill-equipped Peter Dunne is to be a minister anywhere near alcohol regulation.
“Although Peter Dunne claims to know what people like Professor Sellman thinks, Mr Dunne could not name the 5+ Solutions that Mr Sellman and Alcohol Action are proposing.
“For the record Mr Dunne, the 5+ Solutions are as follows: Raise the alcohol price, Raise the purchase age, Reduce availability, Reduce marketing and advertising and Increase drink driving counter measures. Plus increase treatment opportunities.
“Mr Dunne could also not name the 10 things that the alcohol industry won’t tell you about alcohol. They are, as follows:
- Alcohol is a highly intoxicating drug which is fairly easy to overdose on
- Alcohol can cause brain damage
- Alcohol causes aggression
- Alcohol is fattening in social drinkers
- Alcohol can cause cancer
- Alcohol cardio-protection has been talked up
- The alcohol industry actively markets alcohol to young people
- Low risk drinking means drinking low amounts of alcohol
- A lot of the alcohol industry’s profit comes from heavy drinking
- There is a solution to the national alcohol crisis: ‘The 5+ Solution’.
“Mr Dunne misled the House today in claiming to have met with 47 alcohol groups not associated with the alcohol industry. He also provided TV3 with a list of these meetings. Eugene Bingham, producer of TV3’s 60 Minutes has analysed each meeting on his blog.
“Most of these meetings were nothing to do with alcohol regulation.
“23 were with Ministry of Health officials or ALAC – both of whom report to him – three were with the Law Commission, two were with the police. Four meetings were with other official groups of various types: the UN Office of Drugs and Crime, the WHO, a ministerial council on drug strategies in Brisbane, and the Expert Advisory Committee on Drugs. Three were speeches he gave at conferences.
“That leaves five meetings. TV3 phoned the Downtown Community Ministry who Mr Dunne met with on December 2. They said the meeting was not specifically about alcohol.
“He met with the NGO Provider Forum on October 19. The agenda for that meeting, on the Ministry of Health’s website, shows that Mr Dunne spoke on the topic of ‘NGO Challenges and Opportunities for Changing Times’.
“He met with the Life Education Trust on May 5, but not specifically about alcohol.
“That leaves two meetings: one with the Salvation Army, which told TV3 they had indeed talked to the minister about alcohol issues, specifically taxation of liquor; and one with respected Scottish expert Dr Peter Rice, brought to New Zealand by ALAC for its conference last year.
“He did have some meetings with groups other than the alcohol industry. But not 47, and these meetings cannot be described a lobbying,” says Jim Anderton.
Support for changes to alcohol law
“However I’m not hopeful that with a Minister like Peter Dunne responsible for alcohol the government will have the guts to do anything this brave,” says Jim Anderton.
“This is a man who refused to meet with Doug Sellman who represents 450 senior doctors and nurses across New Zealand calling for changes to the law. But he was prepared to meet on numerous occasions with representatives of the alcohol industry.
“He said he didn’t meet with Mr Sellman or his colleagues because he ‘knows what they think.’
“So he had to meet with the alcohol industry on numerous occasions to understand what they thought?”
“A few weeks ago new figures showed that violent offending was up by nine per cent last year - an increase of twenty thousand more victims of crime under John Key's National Government.
“The police know, and so do the doctors and nurses patching people up, that alcohol abuse is a major cause of that increase in violent crime. Three out of five people who are arrested are under the influence of alcohol at the time they commit the offence for which they are arrested. The problem is getting worse every year, not better, and that is largely because alcohol is becoming more available.”
Leaked recommendations from the Law Commission, published by KiwiBlog (an on-line blog) appear to call for a 50 percent increase in the excise tax on alcohol; an increase from eighteen to twenty in the purchasing age for alcohol; banning the sale of liquor at off licences after 10pm; forcing bars and nightclubs to refuse to allow people to enter after 2am; and a nationwide closing time of 4am.
“The spotlight is on the government now to see if they will have the courage to act,” says Jim Anderton.
Beer in a can recipe for trouble
Rugby World Cup minister, Murray McCully has announced that spectators at world cup games will be able to drink beer from cans.
“All it would take is for a few intoxicated fans to use cans as missiles and chuck them at players in front of a world-wide television audience of over 500 million people. Our international reputation would be tarnished for years.
“This is our moment in the world spotlight. We won’t get another chance like this for decades. Murray McCully thinks it is not worth the cost of putting a system in our stadiums so that we can serve beer in plastic cups.
“It might cost $1 million to install that system at Eden Park but that is money well spent if it can protect our reputation overseas. The loss to New Zealand if a negative incident happens could be many more times that.
“The only people who benefit from cans at games is Heineken. They get their branding on every can. They wouldn’t if beer was served in plastic cups.
“The National government is prioritising the business needs of a beer company over New Zealand’s image as a good place to visit and do business. If a negative incident happens and gets transmitted across the world via YouTube and twitter in a matter of minutes, it will be on Murray McCully’s head,” says Jim Anderton.
Rugby song sounds like beer ad from the 1990s
“Prime Minister, John Key said today that he did not think it was ‘a missed opportunity to have a home grown song ring around the world’. So are we to understand that he approves of the use of an old English song, decades old?
“Of course it is a missed opportunity. Every other country would have picked a song which represented their own identity. It’s a chance to showcase our best musicians and our unique culture.
“We can’t blame Australia for promoting our musicians like Crowded House as their own, when we don’t even promote our own talent.”
The Rugby World Cup has chosen ‘Right Here, Right Now’ as the official theme song. It is a 1990 song originally recorded by UK band, Jesus Jones. The latest version has been covered by the Kiwi band, The Feelers.
“This is classic culture-cringe. We look like a country of covers bands. The truth is we have some wonderful home-grown artists and songs that have made it to the top of the charts internationally. Why not draw on this talent?
“Surely we could do better? It is not too late. I’d like to see another song. Why not a competition? That’s what we did when we hosted the commonwealth Games in 1974.
“In the meantime, I’ll be joining Gary McCormick and calling for a Kiwi song,” says Jim Anderton.
ACC’s unlawful stealth policy change
In parliament today he challenged the ACC minister over a doubling in the number of cases being taken on formal review after being declined because of a pre-existing condition.
“The law is clear that ACC cannot cover situations caused wholly or substantially by pre-existing conditions or aging. Fair enough. But the law does not permit ACC to decline cover just because of a pre-existing condition.
“Since the change of government, ACC has been declining cover on that ground in what appears to be unprecedented numbers. The government refuses to fess up to a policy change, but record numbers of people are contacting me. And how else to explain a doubling in numbers of claims sent for formal review - suddenly on national taking office.”
From 2004/05 the proportion of claims sent for formal review fluctuated between 0.13 and 0.18 per cent of all claims (about 2,200, to 3,000 a year). Suddenly, when national took office the numbers increased to 0.33 per cent. That would amount to around two thousand affected people.
Many thousands more people are having their claims denied, and can’t afford the cost of formal review and court cases.
Jim Anderton says the government has no satisfactory explanation for the sudden increase.
“There must have been a policy change. According to some of the best surgeons and specialists many of the ‘pre-existing conditions’ have nothing to do with the cause of injury and ACC has no grounds in law to reject people who need cover. This policy change is therefore unlawful,” Jim Anderton said.
The information below was provided by a series of written questions from the Minister for ACC and clearly shows that ACC did not have any information on which they could base policy changes as substantial as they have been.
- ACC does not capture data on ‘pre-existing degeneration’, as a decline of cover classification,
- ACC does not capture data on the proportion of claims for treatment of shoulder injuries that have been declined due to a finding of ‘pre-existing degeneration’,
- ACC does not capture data regarding the number of reviews which dispute an ACC decision to decline treatments and/or cover on the grounds of ‘pre-existing degenerative’ condition,
- ACC does not capture data regarding the number of appeals which dispute an ACC decision to decline treatment and/or cover on the grounds of ‘pre-existing degenerative’ condition,
- ACC does not keep data on the average legal costs of defending court decisions relating to the presence of a ‘pre-existing degenerative’ condition,
Government cancels democracy in Canterbury
Environment Minister Nick Smith and Minister of Local Government, Rodney Hyde today announced they would sack the Canterbury Regional Council. They also announced there will be no elections for at least three years.
“This is an outrage. 14 elected councillors have just been fired by the Ministers of Local Government and Environment, Rodney Hyde and Nick Smith.
The decision comes after a report by former National Party MP Wyatt Creech. The report recommended sacking the elected councillors and replacing them with appointed commissioners.
“Ratepayers and local farmers have not been consulted. The Councillors in the firing line have only been told this morning that their jobs are gone. This is the kind of response we read about happening in Fiji - not New Zealand.
“If this is how the government proposes to solve the water crisis in Canterbury, then I have grave concerns,” says Jim Anderton.
“ECan has made mistakes in its handling of water issues but it is ironic that ECan was on the brink of coming up with a coherent plan for dealing with the water crisis in Canterbury. Now any solution is on hold while the bureaucrats appointed by Rodney Hyde and Nick Smith move in to take over.
“If the government was serious about water, it would do more than spend a pathetic $700,000 per year through the Community Irrigation Fund on this problem. It would stop playing politics and get serious about water storage. We have plenty of water in and around Canterbury; our problem is how to store it. ECan was about to do something about that,” Jim Anderton said.
Progressives contribute to heart surgery unit in Zambia
The Mutima project is run by medical volunteers based in Christchurch and New Zealand.
It supports a cardiac surgical team from New Zealand to perform one hundred life-saving heart operations on young Zambian patients at the University Teaching Hospital in Lusaka.
“The long term goal is to create a dedicated cardiac surgery unit in Zambia so that they have the capacity and the know-how to perform these kinds of operations themselves,” says Jim Anderton.
Jim Anderton and other Progressive party members joined hundreds of Canterbury people, including many cardiac patients, on a six kilometre walk around Hagley Park on Sunday to raise money for the Mutima project.
“I am very proud that surgeons from our region have pioneered this project. I’m struck by the strength of the personal commitment of these local surgeons to serve and help others living thousands of miles away.
“We are a stronger and more caring community because we live amongst people like this.”
Zambia is a poor landlocked country in Southern Africa with a population of about 12 million. 60% live in poverty, earning less than $1 a day. One in five adults is infected by HIV.
The Mutima Trust was formed in 2009. In September a team of specialists will travel to Zambia for three weeks where they will carry out the first of one hundred heart valve replacements on young Zambians.
“These kind of projects leave behind a better functioning hospital system so that in the future Zambian surgeons can perform critical surgery themselves and projects like Mutima won’t be necessary. That is the best kind of aid and development, and I congratulate everyone involved, ” says Jim Anderton
Collective responsibility does not require Turia to vote for more Maori unemployment
“Ms Turia is ignoring the last decade of political practice within MMP agreements that allow for minority parties as coalition partners in government to agree to disagree. When I was a minister I voted against the government several times, including against a free trade deal. If it was possible to do that, then it is possible for Ms Turia to vote against welfare changes.
“If, as Ms Turia states, she has not been briefed on the welfare reforms and the Maori Party leadership has not committed to vote for them in the House, Ms Turia is under no obligation at all to vote for them. To say she has to as a minister is just not politically accurate. She is tying herself in knots by speaking out against them, but then claiming she has to vote for them anyway.
“The welfare changes won’t create any jobs, or the skills that long-term job seekers need. If Ms Turia and the Maori Party disagree with the changes, then it is possible for ministers to agree to disagree. That allows parties to support the policies they voted for, instead of abandoning their own people, as Ms Turia appears to be doing by supporting higher Maori unemployment,” Jim Anderton said.
Save 198 Youth Health Centre
Jim Anderton’s address to rally
The services provided by the 198 Youth Health Centre over the last 10 years have played a critical part in the mental and physical well-being of tens of thousands of our most vulnerable young citizens, local Wigram MP, Jim Anderton said today.
“At a time when the National led government is calling for more services in the areas of mental health, comprehensive health services to primary care/general practitioner level, not to mention nursing, family planning, counselling vaccinations, alcohol and drug, sexual and reproductive health, peer support and smoking cessation services, this is the very worst time to cease adequate funding for 198 which provides exactly these services.
“With increasing unemployment, increasing social and housing needs, together with cuts in ACC, health and education, such a move would simply be a disaster,” Jim Anderton said.
“It is even more inexplicable when the Canterbury DHB is suggesting the need for a “One Stop Shop” for these services which, of course, 198 already provides.
“At a time when the Christchurch City Council is also reducing its funding for voluntary community organisations it is vitally important that concerned citizens in this city vigorously protest against this serious backward step in the provision of these and other crucial community services.
“For the 198 Youth Health Centre services to continue requires only a very modest amount of additional government funding, approximately around $100,000 per year for what is already a low cost, high quality health service.
“Good wishes for your protest. Be assured that I and my Labour Parliamentary colleagues will be joining you in this fight. I’m certain it is one we can win, no matter how long it takes,” Jim Anderton said.
Mental health disaster unfolding in Canterbury DHB
He says the resignation of the clinical director, Geoff Buckett, is only the latest disaster.
Dr Buckett is going to Sydney to work for one of the best eating disorder clinics in the world. He has been highly critical of the ‘exclusion from decision making tables’ of the mental health service, and especially of plans to remove adolescents from specialty care.
Jim Anderton has learned that eleven other psychiatrists have also recently resigned, including the chief of psychiatry Dr Phil Brinded.
“Why is the Board and management of the Canterbury DHB overseeing this disaster, with apparent disregard for the serious consequences for the most vulnerable patients and families anyone can imagine?
“Either they know about it and have done nothing, or they don’t know, which is almost worse.
“With the 198 Youth Centre Service going down one day and the Eating Disorder Unit the next, one wonders what else is about to happen to an already fragile mental health system.”
Anti-science government axes jobs
“Our future prosperity and jobs depend on science and innovation, and the sector where innovation and science makes the most difference in New Zealand is the primary sector.
“But today the government is hacking off over forty jobs, mainly in meat and wool research.
“I thought when the government axed the $700 million Fast Forward primary sector and innovation fund that it was coasting in neutral. But this is actually going backwards.
“Fast Forward was meant to work in partnership with the private sector and with agencies like AgResearch to speed up New Zealand’s economic development. After it was axed, nothing has happened for eighteen months - that’s why demand for AgResearch’s long term research and development is falling.
“Farmers won’t carry all the costs on their own back. They need a commitment from government as well.
“Having canned the innovation fund, the loss of jobs announced today is the direct result of the government’s anti-science policies,” Jim Anderton said.
FAI Money should never have been given a Crown guarantee
FAI Money has reportedly written to investors saying the company would no longer be raising money from the public to fund its lending. FAI is owned by Hanover and, through a network of companies, by Mark Hotchin and Eric Watson.
“The Crown guarantee was the only thing that kept FAI Money in the public marketplace,” Jim Anderton said.
“But FAI should not have been in the public marketplace after what happened to Hanover, and the behaviour of Mr Hotchin and Mr Watson.”
Jim Anderton says the Crown guarantee was introduced to make sure there wouldn’t be a run on financial institutions in the difficult global economic conditions of late 2008 and 2009.
“The guarantee was never intended to provide backing for businesses that were not going to cut the mustard in more normal times. Treasury’s guidelines for considering a Crown guarantee were ‘the maintenance of public confidence in New Zealand’s financial system; and maintaining the confidence of general public depositors in New Zealand financial institutions.’
“The guarantee for FAI never met that guideline. The Treasury says factors that should be taken into account in giving a guarantee include the size of the entity and related party exposure, the business practice of the entity, the ‘good character’ and business acumen of the entity and “The track record of the entity.”
“Bill English should never have allowed Hotchin and Watson’s business to get a Crown guarantee and the confirmation today that they will not be seeking funds from the pubic proves it.
“The Crown guarantee was a good policy; but that doesn’t mean everyone should have got it”
Jim Anderton has been raising queries about the Crown guarantee for FAI since early 2009.
In 2008, before the global meltdown and the Crown guarantee, Hanover froze over half a billion of investors’ money.
Kiwis didn’t want Telecom privatised, says ex CEO
“After years of resisting attempts to open up the telecommunications market and fighting every move we made in government to increase competition so the public had a choice, Ms Gattung now confesses that there was nothing in a privatised Telecom for the public anyway,” says Jim Anderton MP for Wigram and Progressive Party leader.
Ms Gattung said on Radio New Zealand’s Nine-to-Noon show this morning that the basic problem for Telecom was ‘a fundamental disconnect’ that Kiwis would have preferred Telecom to be a State Owned Enterprise (SOE) and ‘never have actually been a private company.’
She said that the SOE model of ‘commercial imperative but public good, sits much more comfortably with the Kiwi psyche.’
“It’s a shame she couldn’t have acknowledged that when she was the CEO of Telecom,” says Jim Anderton.
“The public of New Zealand are still getting the raw end of the deal when it comes to Telecom. Today it’s the failure of the XT network. In 1990 it was Roger Douglas and Richard Prebble selling Telecom for a song to US companies who on-sold it a few years later and walked away with $10 billion tax free.
Telecom was sold in 1990 for $4.25 billion to an American consortium of Ameritech and Bell Atlantic. The two American companies subsequently sold Telecom for $14 billion, making an untaxed capital gain of $10 billion.
“Theresa Gattung calls Telecom ‘a train wreck’. Well the wreck started in 1990. Ms. Gattung didn’t help to fix the wreck. She resisted the Labour Progressive government’s attempts to open the market and regulate Telecom’s monopoly. Despite her resistance we still managed to open the market considerably,” says Jim Anderton.
“Theresa Gattung is trying to re-write history and ignore the fact that Telecom should never have been sold off like the family silver, then a privatised Telecom monopoly allowed to dominate the telecommunications market in New Zealand for over a decade,” says Jim Anderton.
Save men’s help-line
Health Ministry figures show that 370 of the 483 people who killed themselves in 2007 were men.
“When I was the Associate Health Minister in the last Labour-Progressive government, we put considerable funding into public campaigns about depression and suicide prevention. We knew we had to target men deliberately because it was harder to reach them.
“Campaigns fronted by ex-rugby player John Kirwan have been very successful in de-stigmatising mental illness and raising awareness of depression. The fact that a male role model was chosen to front this campaign was deliberate.”
Lifeline runs the national helpline set up for men, but because of a funding crisis caused by the recession, the ‘Mensline’ will close tomorrow. All calls will be diverter to general Lifeline counsellors who are 75 per cent female.
Mensline has been funded by a number of private and public sponsors.
“I call on the Minister of Health to step in and work out how we can keep this line going. I suspect that the money required to restore the service is considerably less than it costs to fund other help lines like Quitline for smokers or the Gambling Helpline,” says Jim Anderton.
“The New Zealand Transport Authority (NZTA) puts a price on a life lost when it decides which black spots to fix. The more lives lost at the black spot, the more likely the road will get fixed. The cost of one life lost is reckoned to be about $2.5 million.
“Surely the government can find what is likely to be a fraction of that, to keep this helpline going and potentially save many lives,” says Jim Anderton.
ACC relies on out-dated methods to test injuries
An orthopaedic surgeon has contacted Jim Anderton to express concern that 85% of their patients needing surgery after accidents are being rejected on below-average assessments by a company contracted and paid by ACC to test claims.
“This seems a clear conflict of interest.
“A specialist surgeon currently practicing, and using the latest equipment and clinical research decides that a plumber who has fallen at work needs shoulder surgery as a result of the accident. Then retired surgeons, who are no longer specialists, probably never used an MIR scan in their working lives, and quoting from a text book which dates back to 1934, reject the claim on behalf of ACC, because of ‘pre-existing’ conditions.”
“The onus of proof had been reversed by ACC and is now on the patient to prove that their injury occurred at the time of their accident, and not ACC’s job to prove that there was a pre-existing condition. And yet there has been no public debate about this.
“It’s happened behind the scenes, and the public have been kept in the dark.”
The surgeon who contacted Mr Anderton’s office recently saw a seventeen year old who plays water polo competitively. The teenager had dislocated her shoulder and needed surgery. But ACC rejected her claim on the basis that the girl was ‘pre-disposed to dislocate her shoulder because she was very flexible.’
“That’s rubbish; it’s like saying someone is ‘pre-disposed to break their arm.’
“The typical patient being rejected is fit and well, and has been involved in occupations like the construction industry up until the time of their injury.”
“There’s no money saved here; specialists predict that up to 50% of these people who don’t get treatment straight away will have marked deterioration as they get older and will require much more expensive surgery later in life,” says Jim Anderton
Fisheries decision shows Fish Act is ‘hopeless’
A High Court judge has today decided a case brought by the fishing industry against Jim Anderton’s decision, as fisheries minister, to close some fisheries to protect rare and endangered species of dolphin.
The fishing industry won an injunction in 2008 against the closure in some parts of the coastline. The judge has taken until now to decide the case.
The injunction meant the fishery remained open in spite of the fact that an acknowledged risk to the species existed from continued fishing.
“Since the injunction was granted I understand at least one more dolphins has been caught. Big fishing companies, through their court action, risked judicial extinction of an entire species of dolphin,” Jim Anderton said.
The High Court today upheld the original decision in the Manukau harbour, West Coast of the South island, Te Waewae Bay and Bluff.
“It’s too easy for self-interested applicants to get an injunction that threatens a species’ survival.
“I couldn’t change the Act to ensure sustainability because of the influence of big fishing money on political parties.
“Two years have gone by while the dolphins were at risk, only for it to turn out that the judge found the original decisions were justified
“A ministerial decision to close the fishery can only be made after substantial scientific evidence is compiled and enormous amounts of evidence and advice weighed. It’s hopeless for a Judge to be able to come in and substitute his decision for the original one. Decisions to close the fishery should only be set aside when the minister’s decision is manifestly unreasonable.
“In 2008 I tried to change the law to ensure the sustainability of our fisheries. Those efforts were thwarted by NZ First, National and the Maori Party. It later emerged that NZ First had taken $9990 secret ‘donations’ from big fishing. I believe the Maori Party and the National party need to disclose whether they have accepted donations from those interests as well.
“The fishing industry’s behaviour is grotesque and selfish. Enormous damage would be done to New Zealand’s exports if a species went extinct on our watch, but those who took the injunction were clearly putting their own interests first,” Jim Anderton said.
Kiwibank stays in Kiwi market - and makes a profit
“This is a remarkable achievement, worth celebrating.”
Kiwibank announced today that it had made a profit of $23.5 million after tax for the six months ended December 31, 2009.
“It’s succeeded because it gets most of its deposits from, and does most of its lending in the New Zealand market,” says Jim Anderton.
“One of its strongest areas is its support for small and medium sized businesses in New Zealand.”
Kiwibank was the only bank to front up at last year’s Parliamentary Banking Inquiry. The inquiry established that the ‘big four’ Australian owned banks did not pass on all of the cut in the OCR (Official cash Rate) to home owners, credit card holders and businesses in New Zealand.
The inquiry also criticised the Australian owned banks for contributing to our volatile exchange rate. Exporters are particularly hurt by sudden and frequent changes in the exchange rate.
“In contrast to Kiwibank, the Australian banks borrowed a lot of money from overseas to fund their lending in New Zealand. This has a significant effect on our exchange rate by holding it up regardless of the real economic circumstances of New Zealand.
“The export sector, including farmers make up roughly 30% of our GDP - about $40 billion per year. But suffer the most from currency instability.
“I would like to see the government provide more capital funding for Kiwibank in order to promote more competition amongst banks and increase the share of local funding for lending.
“The Australian owned banks don’t have a vested interest in strengthening the New Zealand economy. Kiwibank does. It stayed in the New Zealand market, and today its success is our success too,” says Jim Anderton.
ACC turning people away
The Minister indicated in Parliament today that he would be willing to look at this issue if a clear pattern emerges.
“There is a clear pattern. He needs to do something now. My electorate office, and the offices of other MPs in Christchurch are inundated with stories of people who have been turned away by ACC after accidents or attacks,” says Jim Anderton.
“Wayne Direen, one of my constituents, was injured in an unprovoked attack in Christchurch, and sustained multiple injuries.
“Initially ACC paid for his treatment, but when his shoulder failed to come right, his GP referred him to an orthopaedic surgeon who recommended surgery. ACC declined to cover the surgery on the basis that the shoulder injury was a ‘pre-existing condition’ – which is clearly ludicrous.
“He had been a keen martial arts student and a rugby league player before the attack, and clearly did not have a long term shoulder problem - until the night he was attacked,” says Jim Anderton.
“Other cases include a businessman with his own cleaning business who fell at work and hurt his knee. He had no trouble with his knee prior to the accident, but again ACC declined to cover surgery on the grounds that he had a pre-existing medical condition.
“A self-employed electrician broke his elbow at work. ACC covered treatment for the bruising but not the broken bone because the break had caused on-going nerve problems which required surgery. He was forced to sell his wife’s car to pay for the operation.
“There are many more cases like this. Some of these people have contacted Nick Smith Minister for ACC, only to be sent away and told to take their case to the District Court. None of my constituents can afford to take this option, nor should they have to. Nick Smith needs to take responsibility and do something to stop this happening,” says Jim Anderton.
Government needs to resource animal welfare
“Increasing the penalty for cruelty to animals is the right thing to do, but unless you resource investigations and give staff the right tools to measure animal welfare, it’s just window dressing,” says MP for Wigram and Progressive Party leader Jim Anderton.
The Animal Welfare Amendment Bill had its first reading in Parliament today.
It will increase the maximum penalty for cruelty to animals from three years to five and introduce the new offence of ‘reckless cruelty’ to capture those offenders not covered under existing legislation.
“There are only five full-time staff at the Ministry of Agriculture and Forestry whose job it is to investigate animal cruelty, plus seven contractors. They have to cover the whole country. They are already stretched, and rely heavily on one hundred SPCA volunteers to monitor breaches wherever they occur.
“Unless the National-led government is prepared to increase the number of staff and increase the resources to investigate incidents of cruelty, this Bill will unfortunately end up as little more than window dressing.
“There’s no point in increasing the penalty if you don’t have people on the streets and in the fields to investigate the crime.”
“This government has already cut front-line staff in areas like biosecurity. When the Hadda Beetle was found in Auckland recently - it wasn’t found by a biosecurity staffer. It was found by a man walking his dog in an Auckland park.
“Perhaps that same man can monitor breaches of the Animal Welfare Act while he’s at it.”
“The other problem is how do we measure animal cruelty? It’s not easy to measure how an animal feels unless you have industry tested standards.
“When I was Minister we were keen that the Fast Forward Fund of over $700 million would help to fund research into standards and techniques for measuring animal welfare.
“This would have helped us deepen our research into animal welfare. We have to be leaders in the best techniques, not just the substantive results of our measuring. But the National-led government axed the Fast Forward Fund and replaced it with the Primary Growth Partnership which has yet to fund a single research project.”
Plan for economy does not stack up
“National thinks all we need to do to catch up to Australia is increase the price of a loaf of bread, increase the price of a litre of milk, increase the price of a litre of petrol, and put up the price of electricity,” Jim Anderton said.
“This from a prime minister who said before the election, “if National is elected and does a ‘half decent job’ at growing the economy, then increasing GST and the top tax rate will not be necessary.”
“New Zealand needs higher incomes not higher costs.
“The National Government has no plan for jobs, and no plan to increase wages.
“National slashed the R&D tax credit and abolished the two billion dollar Fast Forward fund. When it now says we need more science - those are just words. Its actions tell a different story.
Last year John Key told the Wall Street Journal, “We can use this recession to transform the economy to make us stronger so that when the world starts growing again we can be running faster than other countries we compete with.”
"His plan today will not transform the economy and make us stronger? How does putting up GST make us run faster than countries we compete with?
"Changing the tax system is not economic change. Compare that pathetic response to the Labour-Progressive government’s R&D tax credit of around $350 million, the largest ever company tax cut, a huge programme of personal tax cuts particularly for low to middle income earners and the largest ever investment in science in New Zealand.
“It just doesn’t stack up,” Jim Anderton said in Parliament.
Prisons not for sale in New Zealand
He was talking to prison officers who held a rally at parliament today to protest against the government’s proposal to re-introduce private prisons in New Zealand.
Former Progressive Party MP and Minister of Corrections Matt Robson put a stop to the private sector’s involvement in the management of prisons in 2000. The National-led government is planning to reverse that policy.
“Prison management should never be a viable private business because we don’t want crime to become a growth industry for anyone,” says Jim Anderton.
“The priority must always be to have prisons that keep the community safe. For those offenders who return to society, they must be returned as safer members of our community.
“Australia is learning that its experiment in private prisons might not have been such a good idea.”
Australia has the highest proportion of inmates in private prisons (around 17%) of any other nation. There is no significant evidence to suggest that the performance of privately run prisons is better than publicly run prisons.
An empirical study of one private prison in Queensland concluded that the private sector has failed to deliver on promises of both internal and external reform.
In Victoria, the Metropolitan Women’s prison has been taken back from private operators because of serious deficiencies in the operation.
“This government is determined to go back to the future, and start the Australian experiment all over again in New Zealand.
“Imprisonment is essentially a state responsibility which should not be delegated to the private sector for cost cutting or profit,” said Jim Anderton.

Jim Anderton at the prison officers’ rally at parliament with Labour MPs Clayton Cosgrove (Waimakariri - left of photo) and Grant Robertson (Wellington Central - right of photo).
Good step forward but more urgency needed
“NAIT will ultimately see all livestock in New Zealand tagged as part of a database which traces animals from paddock to plate, a project which I strongly supported as the former Minister of Agriculture. We introduced the initiative in 2008 and would have had it implemented by now – as it needs to be. We had funding in place to develop a world-recognised animal identification and traceability system,” Jim Anderton said.
“NAIT is essential for maintaining international credibility for our food exports. The Labour-Progressive Opposition will be supporting the legislation for traceability and I would certainly like this scheme to have the importance given to it that it requires. The issue has been debated vigorously within the livestock industry for some years.
“David Carter, Minister of Agriculture, has announced that the date for implementation of the scheme will be in 2011 for cattle farmers and a year later for deer farmers. That means it will not be fully up and running in this term of government.
“Those that have opposed NAIT and used delaying tactics have been flying in the face of international reality. Having a scheme such as NAIT is how New Zealand demonstrates that we are one of the world’s leaders in producing high-quality, high-value, safe food.
“The world’s markets are increasingly demanding proof that food systems are of high-quality. Traceability is an important part of that. Consumers want to know where their food comes from, not just from what country, but sometimes even what farm and what particular part of a farm animals come from. NAIT will enable us to do that, on a systematic basis across the whole country. A comprehensive approach is called for.
“I congratulate the meat industry and especially Ian Corney, the NAIT chairman, who has worked with determination to overcome the obstacles to get the scheme accepted by the National government. It is time we saw action on this,” Jim Anderton said.
Cracks start to show after National’s bio-security cuts
At the time, Jim Anderton warned that cuts to staff responsible for preventing diseases and pests from entering New Zealand was false economy and left our borders vulnerable.
Pest like the Hadda Beetle found in Auckland recently can cause serious damage to local farming and horticulture industries.
“The government’s justification for getting rid of these staff last year was that trade and passenger numbers were in decline. It’s true, there has been a decline in the last quarter, but the long term trend over ten years, is definitely up.”
The value of imports per quarter in 1999 for example was just over $6 billion. Now, even with the recent decline, it is about $11 billion. Total monthly arrivals were approximately 240,000 in 1999 and with the recent decline, still remain at about 360,000 per month.
“Trying to save money by playing Russian Roulette on the New Zealand border is worse than false economy; it’s putting our economy at serious risk.”
The Hadda Beetle was found in Auckland’s Dove-Myer Robinson Park and the Auckland Domain.
MAF have reassured farmers and horticulturists, including Kiwifruit, avocado and aubergines growers, that the pests are no longer a threat and have been dealt with.
“The government might have got away with it this time. I hope so for the sake of those farmers. But with 54 less staff at the borders looking out for pests, it’s only a matter of time before we have another incursion.
“Prevention is better than cure. Keep the money and the jobs in biosecurity to stop pests getting in. Then you don’t have to spend more money on trying to eliminate them once they’re here.”
National shows its true colours – health cuts
“Last year I was inundated with calls from elderly people in my electorate who were having their home help cut. Then I predicted that this would be repeated across the country. Unfortunately it looks as though I was right.”
Jim Anderton’s electorate office in Sydenham was receiving 15-20 calls a day from elderly people facing cuts, or concerned people worried about their neighbours.
The Kapiti Observer recently reported the same treatment of elderly people in the Kapiti region. Over forty upset locals have complained to Grey Power over cuts to Capital and Coast District Health Board funded home-help.
Elderly people are assessed over the phone, and then find that their 1-2 hours home-help with cleaning or shopping has been cut.
“Although it’s the District Health Boards making these decisions, whether in Wellington or Christchurch, they are cutting services because resources are limited. That’s a problem for the government, and Tony Ryall as Minister of Health should be doing something about it.”
Until now, elderly people who need it get help with basic domestic and personal activities like vacuuming and showering.
“I suspect this is just the tip of the iceberg. If you get a government that promises tax cuts, then you’re going to have less money to spend on essential services, and then there’s only one way to balance the books.
“When my office contacted the Christchurch District Health Board, it was told that ‘families will need to take more responsibility for their elderly parents...If old people can’t go out shopping, there’s always on-line shopping; and if they can’t manage the cleaning they can just clean one room a day with a carpet sweeper.’ Well, I’d like to see my 90 year old constituent who has just had her help cut, carpet sweep the house on her walking frame!
“We need to have a proper public policy debate to work out how we’re going to deal with the health and welfare of the increasing numbers of aging New Zealanders. This shambles is certainly not the way to do it,” Jim Anderton said.
FTT better than increasing GST
“GST is a regressive tax,” Jim Anderton says.
“GST falls hardest on people who spend most of their income every week - low and middle income earners. For people on fixed incomes, like superannuitants, it’s almost impossible to make up for the price rises they would pay at the shops.
“Instead of increasing GST, the government should look at paying for personal tax cuts by introducing a low financial transactions tax.
“A financial transaction tax could be set at a rate that for most transactions would be similar to the fee people pay for using an ATM, EFT-POS or electronic banking.
“A financial transaction tax is fairer than increasing GST because the majority of financial transactions are made by people with large sums of money to move around.
“Moving more of the tax burden to people who move very large sums of money around in search of speculative gains means people who actually work for a living have to pay less of the total tax share.
“James Tobin, the economist who invented the modern financial transaction tax, points out that it would reduce speculation and volatility in financial markets. After the global financial crisis exposed the irresponsibility of the finance sector, the time is right to take a fresh look at the idea.”
For more about financial transaction tax, see this Guardian newspaper article from December 2009.
http://www.guardian.co.uk/commentisfree/2009/dec/07/tobin-tax-climate-change-investment
And this November 2009 column by Nobel laureate in economics, Paul Krugman, “a financial transactions tax is an idea whose time has come.”
http://www.nytimes.com/2009/11/27/opinion/27krugman.html?_r=1
Mayor gets unfair drubbing by Key’s cheer squad
“The media are showing their bias and are not listening to what Mayor Williams is saying. They are mindlessly repeating the lines given to them by John Key on timing of text messages and that Mayor Williams has been ‘aggressive’ in his communications to North Shore MPs, including John Key, MP for Helensville. For example, they are ignoring William’s criticisms of the National-ACT legislation for Auckland’s new Super City,” Jim Anderton said.
“Where are the hard questions to the North Shore MPs, including John Key, on the issues that Andrew Williams wants answers to, and is entitled to receive, as Mayor of the North Shore. Unfortunately, that seems all too hard for the National friendly media.
“Andrew Williams has produced his phone records but it makes no difference. John Key is not being asked for his to prove his allegations about Williams. No wonder the PM is so relaxed knowing he can say what he likes to discredit his opposition – and get away with it.
“Andrew Williams is an outspoken mayor – but then all good mayors are outspoken. That’s their job!
“He is a thorn in the side of those who driving the implementation of Auckland as a ‘Super City’ with barely a pause for breath. It is too reminiscent of Roger Douglas’ strategy in the 1980s for my liking. Douglas’ plan was to get unacceptable and unpopular legislation through the House before people understood their real implications.
“It is sad to see the very good relations that the Labour-Progressive government had with local government during the past nine years degenerate so quickly – but it is happening in so many areas so fast, that I guess it is par for the course and I predict we will unfortunately be experiencing a lot more of it in 2010,” Jim Anderton said today.
Parliament right to fix problem for marine farmers
He was referring to the recent decision by Parliament’s primary production select committee to introduce a specific amendment and fix a legal anomaly so that the Coromandel Marine Farmers Association can continue to farm.
The Association represents a co-operative of marine farmers who farm under a single permit. Changes to legislation governing aquaculture in 2004 had created a unique problem in the Coromandel area which has since been stuck in the courts. The Association was initially established in 1983, and subsequently granted a Marine Farming Permit in 1998. Since then the area has been used collectively by marine farmers in the area.
In 1999 Environment Waikato (the regional council) made changes to the marine farming provisions of its coastal plan, and at that time questions were raised as to whether the site had been lawfully authorised.
Since then, the issue has stayed in the courts, making it impossible for the marine farmers to apply for new permits under the 2004 aquaculture legislation.
“The select committee recognised that the validity of the initial permit given over ten years ago could remain an issue for the courts indefinitely, making it impossible for the farmers to apply for a new permit under a new regulatory system.
“I introduced the Aquaculture Legislation Amendment Bill in 2004 to get rid of these sorts of inconsistencies in the system. That was the spirit behind the bill.
“We’re likely to see more marine farms in New Zealand. It’s a growth area for the New Zealand economy and we should be supporting it. My Bill recognised also that commercial aquaculture must always be done in balance with the needs of boaties and other users of our coastal areas. There is a benefit to growing the aquaculture sector; the marine farmers depend on clean high-quality water, which is often an incentive to clean up pollutants coming into the waterways.
“Russell Norman and the Greens have got it wrong when they accuse the select committee of favouring an individual by amending my Bill. There is a general principle here, which is to use the parliamentary system to fix a problem that isn’t being solved any other way, so that these farmers can continue to work,” says Jim Anderton
Our lean meat reputation at risk
“When I was minister of Agriculture in the last Labour-led government, I went to Korea and Japan to advocate for our pastoral farming techniques.
“There was huge interest in our ability to produce lean meat that was healthier than the high fat content meat produced in Japan and Korea.
“Many in those countries know their own meat is unhealthy and there was genuine interest in our approach to natural animal husbandry”, Jim Anderton said.
“There was an acknowledgement that New Zealand creates a high quality healthy product, compared to their own meat.
“I saw grain-fed cows in stalls. They were some of the fattest cows I have ever seen. Some of them died of heart attacks, they’re so fat and of course they get no exercise.
“It doesn’t make any sense to casually throw away our clean, free-range, lean meat reputation for the sake of keeping cows in stalls on a few farms in the Mackenzie Basin.
“It only takes a few negative stories to reach the international consumers, and our reputation is at risk,” says Jim Anderton.
Three companies in New Zealand have recently sought resource consents for sixteen new dairy farm developments in the Mackenzie Basin, with nearly 18,000 cows to be housed in cubicle stables. Cows would be confined in the stalls for 24 hours a day for eight months of the year.
After a year, government does nothing for R&D
“The National government canned the Fast Forward Fund as soon as it came to power and replaced it with its own Primary Growth Partnership.
“After a year in office they’re not even out of the planning phase,” Jim Anderton said in parliament today.
“Projects were being developed and progress was under way through the ‘Fast Forward’ fund, set up by us the Labour/Progressive government at the time the National party came to power.
“There was already $700 million in the MAF accounts, ready to fund applications.”
$700 million was transferred to the Fast Forward fund in November just before the election in 2008. Organisations like Fonterra, Meat & Wool, Dairy New Zealand and others had committed to match this amount over approximately five years to ten years.
“In this current financial year, not one cent has been paid out for any research and innovation project, and no payment is likely any time soon.
“Under John Key’s leadership, new primary sector research and development has virtually stopped, even though agriculture, horticulture, forestry and fishing are our most important and productive economic resources,” says Jim Anderton.
Kiwibank leads big banks back to local services
Jim Anderton was instrumental in setting up Kiwibank under a coalition agreement with Labour in 2001, at a time when the big Australian owned banks were abandoning rural and provincial New Zealand as well as local urban communities.
Westpac chief executive George Frazis now says that it was a mistake for his bank to abandon local branches in the 1990s.
Kiwibank reversed this trend by setting up regional branches and bank outlets so that local customers had access to bank services where ever they lived.
Westpac now plans to return to a local branch system. This is a welcome, if belated move from a bank customers viewpoint.
Today, Kiwibank has by far the biggest network of any bank in New Zealand, with more than three hundred branches (at least one hundred more than any other bank) and 650,000 customers. It operates in nearly forty communities where it is the only bank service available.
“We knew at the time that it was not only the right thing to do, but that it made business sense to keep banking services close to where people live,” says MP for Wigram and Progressive Party leader Jim Anderton.
“It’s taken Westpac more than ten years to realise this, but they deserve credit for reversing the failed policies of the 1990s, and returning to local banking.”
“It’s a shame that given this re-engagement with the public of New Zealand, Westpac didn’t show up at the Parliamentary Banking Inquiry recently. We would have welcomed their views. Kiwibank was the only bank that fronted.”
“It’s only a matter of time now before the other banks follow Kiwibank and return to local banking,” says Jim Anderton.
Key weak on Copenhagen
“The prime minister is displaying an absence of leadership. He is saying he will only go if the conference is going to be a success. He is therefore accepting his presence is incapable of making any difference to whether it is a success or not.
“This is a failure of leadership. He should accept his share of responsibility for helping to make a difference.
“Instead, the prime minister is making an art form out of not doing anything.
“If he does flip-flop and decide to go, it will only be to make a photo opportunity out of associating himself with a success he has had nothing to do with.
“But his big subsidies for big polluters make him irrelevant anyway.”
Brash calls for return to failed policies of the past
That’s how Progressive Wigram MP Jim Anderton is describing Don Brash’s recommendations released today.
“Don Brash and David Caygill were cheerleaders for the asset sales, deep spending cuts and wage cuts that only worsened the income gap with Australia. When they started New Zealand had parity with Australia and when they finished we were thirty per cent behind.
“Now they want to go back to the failed policies of the past.
“It’s not surprising that when Don Brash heads an inquiry at Act’s behest, he comes up with Act’s policies. Act is playing a very helpful footstool role for the government, where it takes all the hits and helps soften up the public for the National Party.
“More asset sales, deep spending cuts, radical policy change, and higher costs for low and middle income households wouldn’t make New Zealand better off.”
Erebus pilots deserve justice after 30 years
This Saturday (28 November) will mark the thirtieth anniversary since the crash.
A Royal Commission of Enquiry in 1980, led by Justice Mahon found that “organisational failure” was to blame for the crash. Justice Mahon also said that in his opinion, Air New Zealand had deliberately set out to put the blame on ‘pilot error’.
At the time, Air New Zealand undermined what became known as the ‘Mahon Report’ and its findings have only recently been formally acknowledged.
Thirty years later, the families of the pilots have never received an apology from Air New Zealand, who not only failed to stand by their own pilots, but actively sought to pass the blame onto the pilots, despite evidence which clearly showed they were not to blame.
Here is what the Mahon Report says: “In my opinion..the single dominant and effective cause of the disaster was the mistake made by those airline officials who programmed the aircraft to fly directly at Mt Erebus and omitted to tell the aircrew. That mistake is directly attributable, not so much to the persons who made it, but to the incompetent administrative airline procedures which made the mistake possible. In my opinion, neither Captain Collins nor First Officer Cassin nor the flight engineers made any error which contributed to the disaster, and were not responsible for its occurrence.”
“It is my hope, and the hope of many New Zealanders, that this injustice will be set right on Saturday, and the families of the pilots of flight TE901 will hear an apology from Air New Zealand,” Jim Anderton said.
National’s third world way to govern
“National needs to say if it still supports the concept of full and final Treaty settlements.
“It has gone from declaring an unrealistic timeframe for Treaty settlements, its leader declaring ‘The Treaty did not create a partnership’, and Gerry Brownlee calling a Maori member of parliament a ‘black fella’, to now accusing someone else of playing the race card if they oppose National’s deal.
“National has done a grace and favour deal that cannot be justified on its merit. That is a third world way to govern and has no place in New Zealand.
“Last year I raised in Cabinet my concern about re-opening Treaty settlements from the nineties to compensate for loss of value in forests that had been part of a Treaty settlement. My Labour colleagues agreed with me that if we had compensated in that way, we would never be able to achieve final settlement.
“National has now reversed its position. It did so to get a deal with the Maori Party on an emission trading scheme, and now its trying to label as racist anyone who criticises the deal. That is dishonest and comes from a party that has done more than any other party in recent years to whip up racial tensions.”
Examples of Gerry Brownlee’s record on race relations;
“Why is the Government continuing to negotiate with a group that will not accept the Crown’s ownership of the foreshore and seabed?” - In parliament, on Tuesday, May 31, 2005, about negotiations with Ngati Porou:
“National would change the foreshore law to prevent the Maori Land Court hearing customary rights cases and investigate axing the court altogether.” - NZ Herald, 18 April 2005.
“What I think is that there is a large amount of worry – considerable amount of worry among people about where all this is heading and where we fit into it, and much of that is about someone at some point proclaiming what it is to be a New Zealander.” - Agenda, 6 November 2004.
Called John Tamihere ‘black fella’ - 10 February 2004.
1000 people die because of heavy drinking each year
He welcomed the release today of a joint statement from New Zealand doctors and nurses, calling for the Law Commission to recommend reducing the marketing and advertising of alcohol; lowering the purchase age; increasing the price of alcohol; reducing the availability of alcohol; and doing more to counter drink-driving.
New Zealand and Australian police commissioners met recently to talk about the culture of binge drinking in both countries, and to agree to a series of crackdowns against alcohol-fueled crime and antisocial behaviour this Christmas.
“This is our chance to do something about binge drinking. The legislation must be changed, and the Law Commission is looking at that right now,” says Jim Anderton.
75% of people who show up in emergency rooms on a Friday or a Saturday night will have injuries related in some way to alcohol. 60% of people arrested by the police are under the influence of alcohol.
“25% of New Zealand drinkers are heavy drinkers. That’s equal to the combined population of both Wellington and Christchurch.
“To put this national crisis into perspective, each year less than ten people die as a result of using the drug commonly known as ‘P’. Twenty people died from swine flu this year.1000 people die from alcohol related problems each year.”
“But it’ll take more than legislation to change our attitude to binge drinking. What we need is a culture change. We need to stop romanticising heavy drinking.
“That’s why I want to see alcohol sponsorship, particularly for sports events banned, and the marketing of alco-pops to our teenagers stopped. Evidence shows that every advertisement seen by a young person (15-24 years) increases the number of drinks they consume by 1%. They become customers for life and the liquor industry banks on it,” says Jim Anderton
The law stops us saving dolphins
The Act is unclear about when the minister can favour sustainability over commercial use, and act to protect a species like Orange Roughy for example, or endangered mammals like the Hector and Maui dolphins.
“It demands that a minister prove beyond doubt that a species is threatened. But in reality, the information we get is often incomplete and flawed. It’s very hard to follow the behaviour of a fish stock. It’s an imperfect science.
“That’s why internationally, there is consensus that where information is uncertain ministers should adopt a precautionary approach, and protect a species as a priority.”
In 2008 Jim Anderton, then Fisheries Minister, introduced new rules and closed certain areas to commercial fishing in an effort to save the world's rarest and smallest dolphin from extinction - the Maui dolphin. The fishing industry took the government to court because they claimed that the proof was not absolute. The court is still to make a final ruling on the case.
As minister, Jim Anderton introduced a Bill to amend the Act to make it clear that the most important part of the minister’s job, on behalf of all New Zealanders, is to protect the sustainability of our fishing resource.
“I couldn’t get the support across the House to get this amendment passed. National MP Phil Heatley said in parliament that he supported the Bill because it “provided a clearer direction to the minister..to take a cautious approach.
“But between then and when the Bill was taken to Select Committee, the fishing industry got to him, to the Maori Party and to NZ First. Their support was subsequently withdrawn.
“Now that Phil Heatley is the Minister of Fisheries, he is still refusing to do something about this toothless fisheries act. The industry would do well to consider that a fish in the sea is a fish in the bank, and we all benefit when we protect the resources in our oceans,” says Jim Anderton.
Jim Anderton's speech notes at a marine mammals symposium are here.
‘Full and final’ Waitangi settlements?
“The government is heading down a very damaging path by doing a special deal that revisits the 1990s settlement with Ngai Tahu.
“This issue was raised with the previous government, when Ngai Tahu questioned the effect of an ETS on its Treaty settlement. When Cabinet considered this issue I personally raised the issue of principle that was at stake. If we reopened a settlement because of a subsequent new policy, it would be never-ending. On that basis, Cabinet decided not to reopen the settlement.
“To reopen it now makes a mockery of Treaty settlements.
“Governments make lots of decisions that affect assets like land and forests. It changes tax law, influences exchange rate policy and changes laws around land use, as well as changing environmental legislation, such as emissions.
“If the government has to compensate over ETS, then it has to compensate over any change of policy that might negatively affect valuation.
“I notice no one wants to revisit the settlement when governments make decisions that subsequently increase the value of the asset.
“What the Government is doing is creating a new class of assets that are former Treaty settlement assets, and they would never stop being Treaty assets. They would always be liable for compensation.
“Crown Law received an independent legal opinion that refutes suggestions there was bad faith or any breach of obligation in the settlement. The government should not be exposing the taxpayer to this unlimited risk particularly as a result of an expedient political deal with the Maori Party,” says Jim Anderton.
Urgent inquiry into monetary policy now
The Report from the Parliamentary Banking Inquiry was released today.
The inquiry was held by the Progressive Party, The Labour Party and the Greens. The National-led government and its coalition partners refused to take part in the inquiry.
The report proves that the ‘big four’ Australian owned banks did not pass on all of the cut in the OCR (Official cash Rate). The Reserve Bank cut the OCR from its high in mid 2008 of 8.25 per cent, to only 2.5 per cent today. But the banks kept a one per cent margin in interest rates for themselves. One per cent extra interest added $787 million in costs for New Zealand businesses; $460 million extra to the cost of loans in the farming sector; and $1.6 billion to the cost of mortgage repayments.
“This tells us it doesn’t matter what the Reserve Bank does with interest rates; the big Australian-owned banks will do whatever they want. Changing the OCR rate to try and help businesses or home owners during hard times isn’t working.”
“Fifty organisations and individuals made submissions - from the New Zealand Manufacturers and Exporters Association to the Council of Trade Unions. Each of them asked the inquiry to put pressure on the New Zealand parliament and the Reserve Bank to review monetary policy now.
“The government can no longer sit on the side-lines and say ‘there’s nothing we can do’.
“We need to look at how we can remove incentives to invest in property, otherwise we’re headed for another boom and bust cycle in property prices, and another recession. Banks must be encouraged to lend to businesses; and we need to review our tax system which at the moment encourages unproductive property investment and discourages investment in the productive tradeable good export sector.
"We need to look at regulating the banking sector so that ordinary New Zealanders don’t pay (in interest rates or hidden bank fees) while the Australian-owned banks make excessive profits.
“There’s always more we can do. We just need the political will to do it,” says Jim Anderton.
Download the banking inquiry report here. [Pdf, 3.2 Mb]
Visit the banking inquiry website here.
Use milk payout to farmers to strengthen industry
He is welcoming Fonterra's 95 cent increase in the forecast payout to $6.05 per kilogram of milk solids.
"The increased pay out is very timely for a large number of farmers who have been struggling with higher input prices and enormous costs for financing. Interest rates for many farmers have not come down.”
"But the risk is that the higher payout will lead to higher farm valuations and in turn to yet more farm indebtedness. That's what happened too often when the milk payout reached $7 a kilo. When the price then dropped, it left a lot of farmers under mortgage stress.”
"Banks should be careful about getting into the same position of lending against valuations based on favourable milk payouts.”
"The payout shows New Zealand is well positioned as a food producer to continue to earn a living when global conditions are less than favourable.”
“When payouts increase as much as this one has, the extra earnings need to be used to strengthen the industry, such as stronger investment in research and development, and stronger balance sheets to reduce our exposure to rapacious overseas owned banks," Jim Anderton said.
A generation of kids will be lost - NZ must do more
The head of the United Nation’s World Food Programme recently announced that tens of millions of the world’s poor will have their food rations cut or cancelled in the next few weeks because some OECD countries have slashed aid after the financial crisis.
Jim Anderton was talking at the launch of the Mutima Project in Christchurch tonight.
The Mutima project is a volunteer organisation and will send a team of cardiac surgeons to Zambia to perform life-saving heart surgery on young adults.
“I commend them for the strength of their personal commitment and their determination to serve. We are a stronger and more caring community because of people like these Christchurch surgeons. Because of them, a hundred young Zambians will have a second chance at life.”
About 60% of the Zambian population are living on less than a $1 per day.
“But where is the urgency from the National government to save a generation of children who will die from starvation if the world does nothing?”
The National government has recently announced that it will abolish the goal of ‘poverty reduction’ for our aid, and replace it with a goal of ‘economic development’.
“I am a strong champion of economic development - I used to be Minister of Economic Development. But you can’t do much business development if people don’t have enough to eat or clean water to drink.”
“I also want to see the National government do more about bad governance and corruption in some of the poorest countries.”
“I want to see New Zealand get behind a new international Natural Resource Charter which sets out ‘best practice’ in countries with natural resources like oil (or copper in Zambia), so proceeds of those resources go to the poorest people and don’t end up in the pockets of the corrupt,” says Jim Anderton.
Who owns the ASB? Not us
The ABS is running promotional ads claiming ‘We’ve been a Kiwi Bank since 1847.”
“The truth is we don’t really know who owns the ASB. We know it is owned 100% by the Commonwealth Bank of Australia (CBA), but who owns the Commonwealth Bank?
“It used to be owned by the Federal Government of Australia but it was privatised in stages beginning in 1991.”
Almost half of the current owners of the Commonwealth Bank are ‘nominee’ companies. That means their identities are hidden behind other well-known companies, like the Hong Kong and Shanghai Banking Corporation (HSBC).
“We don’t really know who owns ASB. All we know for sure is that New Zealand doesn’t.”
In 1989, the ASB Bank Community Trust sold 75% of the shares to The Commonwealth Bank of Australia. In 2000 the CBA bought the remaining 25% of ASB shares from the Trust.
Since 2000 the ABS has been 100% owned by the Commonwealth Bank of Australia.
“We do however have a New Zealand owned banking network owned by all New Zealanders - and it’s called ‘Kiwibank’.”
“The Aussies are welcome to start their own ‘Aussiebank’ but they shouldn’t try to pinch ours,” says Jim Anderton.
An ‘unfortunate’ arrangement
“This makes Mr English’s position as finance minister very difficult,” Jim Anderton says.
“I have been in the same position as Mr Key is now in, in having to make a decision on the future of the Minister. A precedent for the right thing to do has been set.”
Jim Anderton wrote to the Auditor-General saying Mr English’ arrangements needed scrutiny. The report finds Mr English’s arrangements were not within the rules. The Auditor General’s report states:
The result was that the Crown was renting a property for Mr English from a trust in which he had an interest, and the arrangement was explicitly based on a view that he did not have an interest. Clearly, this was unfortunate.
“The report discloses Mr English went to some lengths to arrange his affairs around the accommodation allowance entitlement. That is not a good look for a Minister of Finance.
“The Auditor-General’s advice does not even mention other issues that the Prime Minister still needs to consider: that Mr English was giving his Wellington address as his home for the purpose of being a director of a company (incidentally, the company that owns his Dipton investment), but claiming to live in Dipton for the purpose of receiving an accommodation allowance.
“A prudent minister might have noticed the contradiction between those two claims.
“I have always welcomed the idea of Mr English having his family with him in Wellington. That is not the issue. The question is whether he was right to claim entitlements for doing so.
“It would not have been in any way objectionable if Mr English had lived in Wellington with his family and claimed an out of town allowance for his occasional trips to Dipton,”
Jim Anderton said.
Nick Smith stigmatises families of suicide victims
“Nick Smith should have the courage to say this directly to the families of suicide victims. It is yet another cowardly and insensitive comment from a Minister who is determined to further stigmatise these families,” says MP for Wigram and Progressive Party leader Jim Anderton.
Nick Smith apologised in parliament today for his comments on TVNZ News last night where he said that the terminally ill might as well ‘throw themselves under a train’ to get the same treatment for their own families as is available for the bereaved families of suicide victims.
“If the children or loved ones of a suicide victim don’t get our support through ACC, then where do they get it from? Is the Minister saying that they don’t deserve our support? Or is he saying that they should go on a sickness benefit?”
“When he said yesterday that the government’s ‘objective is to secure the long-term future of ACC as an efficient and fair 24/7, no-fault insurance scheme for all New Zealanders’, he clearly did not mean the families of suicide victims. He is effectively victimising these most vulnerable of New Zealanders.”
As the Minister in charge of suicide prevention programs in the last Labour/Progressive government, Jim Anderton introduced a program of support for families after a suicide (Postvention). This provided urgent counselling where needed to families, and victim support for those affected.
Nick Smith claims that it is necessary to cut support to the families of suicide victims because ACC has a huge deficit. He said if someone with a family committed suicide, that family could have been given almost $1 million in compensation over time.
“Yet the cost for ACC to give support to a family of three children on an average wage is less than $210,000 over five years. With approximately 350 claims per year, that is about $7 millions per year to all families of suicide victims who make an ACC claim.”
“That is a small cost to pay out of what Nick Smith claims is a $2 billion shortfall annually, to help some of the most vulnerable families in our community.”
Iconic sports should be free to air
“Does it now accept the principal that all iconic sporting events should be free-to-air?”
Te Puni Kokiri (the Ministry for Maori Development) has funded the MTS bid by $3 million. The Government has allegedly freed up $5 million for a TVNZ and TV3 bid.
“$8 million would buy a lot of coverage for free-to-air sporting events.”
“We could buy the rights to screen the up-coming game between our national soccer team, the All-Whites who will play Bahrain to see if they qualify for the soccer World Cup next year in South Africa; as well as the rights for TVNZ to screen next year’s Commonwealth Games in Delhi.”
For the last forty yearsTVNZ has screened the Commonwealth Games.
“When TVNZ announced last month that it was seeking to offload its rights to broadcast the Commonwealth Games, the National Government refused to get involved, saying the arrangement was a commercial contract between TVNZ and Sky.”
“At the time Jonathan Coleman said the public could no longer expect major sporting events to be provided free on television.”
“What’s changed?”
Alcohol abuse more serious than methamphetamine
“It is more serious than the abuse of methamphetamine, even though it is a deadly serious and unacceptable drug.
“The Prime Minister and his government’s first priority to prevent drug abuse in New Zealand is to take up the challenge posed by incidents of heavy drinking, which is now deeply imbedded in our culture, across all ages.
“The economic costs, the health costs, the costs to our justice and corrections systems and lost time off work as well as road deaths and serious injuries are calculated by reputable economists to cost New Zealand between two to three billion dollars a year,” Jim Anderton said.
“The National-led government has announced today that it is taking cold and flu medicines containing pseudoephedrine off our pharmacy counters. This means that those acting illegally have succeeded in removing our most effective cold and flu treatments while the majority of ephedrine and pseudoephedrine is illegally imported across our borders and not sold over pharmacy counters.
“Simon Power’s statement to the Hospitality Association, as the Minister of Justice and Commerce last Wednesday, that “I tend to view liquor law reform through a wide angle lens” does not fill me with confidence that the Law Commission’s recent “Alcohol in our Lives” Discussion Document will bring about the liquor law reform that New Zealand needs.
“The easy availability of alcohol, the lowering of the drinking age, and the influence of the alcohol industry on alcohol-control policy has turned our drinking culture into a pathological problem.
“The police know that this is an urgent issue. Between half and three-quarters of all police work is associated in some way with alcohol abuse.
“Sixty per cent of people arrested by the police are under the influence of alcohol at the time they commit the offence for which they are arrested. Alcohol abuse affects the community and people other than the drinker; forty per cent of all deaths and almost half of all other injuries from alcohol-related car crashes impact on those who have not been drinking at all.
”I call on the government to get serious about alcohol abuse.
“Reduce the availability of alcohol because research around the world has shown that there is a direct link between the availability of alcohol and the level of harm caused by alcohol. Increase the minimum age for buying alcohol to twenty years old; help communities reduce the proliferation of liquor retailers; and reduce the advertising of alcohol especially at sporting events,” Jim Anderton said today in Timaru
Jim Anderson is chairing a meeting tonight in Tïmaru: "Ten things the alcohol industry won't tell you about alcohol”. This meeting is one in a series of thirty eight being held around New Zealand, organised by Alcohol Action, with the presentation by Dr Doug Sellman, Director of the National Addiction Centre, and Professor of Psychiatry and Addiction Medicine at the University of Otago.
Coastguards prepare for their busy season.
“These are just ordinary people with families and jobs, doing extraordinary things every day. And they do it for nothing. That kind of service is humbling.”
Jim Anderton was giving the key note speech at the annual Conference of the New Zealand Coastguard Association in Christchurch. He and his wife Carol are the official Patrons for the Canterbury Coastguard.
“It's easy for people to take this service for granted. But what would we do if we didn't have people around who give so much to helping out others?
“There are still New Zealand boaties out there who think they are indestructible; they don’t wear life jackets or carry rescue beacons. I know that many Coastguard volunteers would like to see more funding to spend on education, and there is a strong demand in the community for Coastguard boating education.
“That’s why I was very pleased last year to advocate in Cabinet with colleagues like Annette King, that a levy from petrol and diesel should be used to fund the work of the Coastguard service.
“They need all the funding they can get, and it doesn’t make sense for boaties filling their boats with fuel to pay a road tax.”
The Land Transport Management Act now allows for some of the fuel excise paid by boaties to be used to fund specified safety activities, most notably search and rescue.
“There are more than 2,500 of you across New Zealand. You are dedicated active volunteers who give over 300,000 hours of your time for free every year, and you are all heroes,” Jim Anderton said.
“Your service is an inspiration. New Zealanders owe you a debt of gratitude, and I wish you a successful and safe summer,” says Jim Anderton.
Mourning the loss of a passionate New Zealander
“It is not widely known that Sir Howard was passionately committed to the economic development of New Zealand – and in particular for Maori economic development and an equal place for Maori in New Zealand society.
“He never sought political glory, even though he was driven by strong convictions and beliefs all his life.
“His political and community work often went unnoticed. He put together formidable kapa haka groups of young people which reflected his absolute genius and understanding of the performing arts. He instilled in the young people he mentored a sense of self-worth and self disciple. He was a fierce opponent of drug and alcohol misuse.
“He worked with me on campaigns to turn young people away from drugs and alcohol and he stood beside us when we formed the Progressive Party. His kapa haka group, Te Wero, performed at the inaugural conference of the Progressives in 2003, and they were a wonderful testament to him.
Sir Howard approached me at a difficult time to lend his support and was not concerned that this could make him unpopular with certain people. I have always admired him greatly.
“He was passionate about making New Zealand a better place.
“Many New Zealanders have lost a good friend. We shared a belief in the talents of people in the regions of New Zealand, and a determination to support all New Zealanders, no matter where they come from, to realise their dreams and to aspire to be the best that they can.
“He kept a low-profile politically. But he was driven to do things for people, and because of his status as one of our most loved entertainers, his legacy will live on.
“He will be much missed by us all,” says Jim Anderton.
Fonterra capital restructuring
"New proposals for Fonterra's capital restructuring appear to provide more stability for Fonterra and avoid the trap of opening the back door to overseas ownership.
"It's difficult to balance the ambition of a global multinational with the benefits of a cooperative structure, and if farmers accept the latest proposal then it will be a good sign for the future of Fonterra and of our dairy company that the right balance has been reached.
"But the government should be careful not to bully farmers into the deal. Farmers know better than the government what is best for their own businesses. Government's role is to help where it can make a difference and step in when wider community interests are at stake. It shouldn't replace farmers' own judgments about the best capital structure for them, when farmers have legitimate interests to look out for."
Waikato innovation park opened
As Minister of Economic Development, Mr Anderton had championed the initial establishment of the Park.
“I believed strongly that establishing and developing the park would help New Zealand agri-technology businesses to grow and develop,” says Opposition spokesperson on agriculture and Progressive leader, Jim Anderton.
“This is how governments actively support innovation and New Zealand business.
“It’s very disappointing that under the new National government support for big and bold ideas like this is less likely to occur.
“Our tax credits for businesses who invest in Research and Development for example, have been removed. That means a tax increase of about $1 billion over three years for anyone wanting to support initiatives like the Tetra Pak building.”
The Tetra Pak building will house many innovative companies working in the agricultural sector, including the multinational food processing and packaging company Tetra Pak, New Zealand Industry Training Organisation, and many others. It will house approximately 180 staff, doubling the size of the workforce at the Waikato Innovation Park.
Securing big multinational tenants like Tetra Pak means that the Park is now housing businesses which come up with new ideas to improve value for money from on-farm to processing activities.
“Only six years ago this was just a paddock of grass. Now it’s set to become a major contributor to wealth-creation in New Zealand.
“We need more centers of innovation like this across New Zealand. You don’t grow the economy with cycle tracks and small ideas. You need big and bold ideas. I wish the Waikato Innovation Park the best of luck for the future,” says Jim Anderton.
Opening of Sydenham police station
Twenty years ago, local MP Jim Anderton was promised funding to build a new police station in Sydenham. He put out a press release to announce the good news.
The 1984 press release has been pinned on the police notice board ever since.
“I was promised that the Christchurch South Police would have a new station in two to three years,” MP for Wigram Jim Anderton said.
But the funding never eventuated, until the last Labour-led government.
“I’m told that the police are going to frame the old press release from 1984 and give it to me!
“When I first arrived in Christchurch and stood as an MP in 1984, I could see that the police had totally inadequate facilities and were spread out over three sites which was hard to administer.
“In the 1984 –1990 Labour government, I kept reminding the Cabinet of their promise. In the years of the Labour-Progressive government of 1999 – 2008, I promised my Labour Cabinet colleagues that the only way they would get rid of me was to build the Christchurch South Police Station.
“That’s why I was thrilled to be present when the former Minister of Police, Annette King, laid the foundation for the new building last year and am thrilled that the police are finally in their new headquarters,” Jim Anderton said today.
Bill to stop MPs standing for Parliament
Jim Anderton has drafted a Bill designed to stop current members of parliament from standing for election to parliament in a by-election.
The Bill will be placed in the Member’s Ballot. The next ballot for Member’s Bills is expected to be drawn next Thursday.
“It’s a nonsense that people can stand for election to parliament when they’ve already members of parliament,” says Member of Parliament for Wigram and Progressive leader, Jim Anderton
“What would rate-payers think if a member of a city council stood in a by-election to become a city councillor?”
In this year’s Mt Albert by-election, three out of the four main candidates were already members of parliament. Only the Labour Party candidate, David Shearer was not already an MP. Mr Shearer went on to win the by-election.
“There should be a rule that if you want to stand in a by-election, you first resign your seat in parliament.
“It’s not acceptable that M.Ps like Russell Norman for the Green Party, Melissa Lee for National, and John Boscawan for the Act Party used tax-payers’ money to run a campaign to get elected to parliament when they had already been elected. In reality they were using their parliamentary salaries and resources to try and win the by-election and bring another MP into parliament on their party list.
“If the Bill is introduced, existing M.P.s will have to make a meaningful choice - if they really want to run for a seat, they will need to resign from parliament and contest it on the same basis as anyone else. If a list member is so keen to represent the people of a particular electorate, his/her party can open an office there.
“In a general election, an electorate MP has no insurance. They have to win enough votes in their electorate or for their party to return to Parliament. It is inconsistent at the very least, to have different rules in a by-election,” says Jim Anderton.
Power company profits at the expense of consumers
He is calling for some of the dividend from the power companies to go to consumers as a rebate instead of the government as a dividend.
“I have record numbers of people approaching my electorate office with problems paying their power bills at the same time that a state owned power company is declaring a record profit, and paying the government a dividend of $230 million dollars.
“One way or another, the profits of the power companies are earned from the consumer paying power bills. The public energy companies are effectively being used as a form of tax – for providing a strategic essential service like electricity.
“I have people like a solo mother with four kids coming to see me with a $450 power bill at the same time that a public energy company is paying the government a special dividend of $150 million.”
Jim Anderton has been highlighting cases in his electorate that include a solo mother with an eleven month old baby who got a power bill for $369 for a four-week period; A low income young working couple in a Housing NZ flat got a power bill for $400 for four weeks, and a superannuitant living alone in his own home got a power bill for $205.
"Many families are wondering how they will pay their bills. Power bills have been driven up by a combination of an early start to winter, with very cold months early this year, and power bills that haverisen faster than inflation. The result is that many low income familiesare frightened to turn their heaters on, even in the middle of winter.
"Instead of making record profits, publicly-owned power companies should be charging consumers less,” Jim Anderton said.
Banks should front up
This week ANZ National Bank released its financial results for the last nine months, and prepared a paper on the impact of the credit crunch on New Zealand Banks.
“I am interested in their views. The rest of the world is having an open debate about the banking sector right now. The owners of banks here front up in their home countries. They should front up here, too.
“New Zealanders who are struggling with high interest rates for their mortgages, their businesses and their farms would have been very interested in what banks had to say.
“Ralph Norris, chief executive of the ASB Bank in Australia, welcomed the inquiry as an opportunity to clear up some ‘myths’ the very same week the ASB said it didn’t want to contribute to better understanding of the issues.”
Today the Banking inquiry completed its public hearings. A final report will be released shortly.
Submissions were heard from business organisions, members of the public, and community groups from across New Zealand, including Kiwi Bank; New Zealand Manufacturers and Exporters Association; FINSEC; Federated Farmers; CTU and many others.
“I would like to see a cross-party agreement on how we improve the performance of the whole financial sector in New Zealand, for the sake of those who pay too much in interest charges and bank fees, and for the sake of our businesses, and for the future of our economy and living standards in New Zealand ” Jim Anderton said.
PHOTOS here.
Act irresponsible in walking out too quickly
He has led two smaller coalition partners in government. He says Rodney Hide is threatening to flounce out of government if he doesn’t get his way.
“It’s counter-productive as a means to get the policy you want, and it is a bad way to govern. When two parties cannot handle their differences without one walking out, it says either there is bad faith at the heart of government, or one party is not up to the challenges of government.
“It is inevitable when there is more than one party in government that there will be some issues on which the parties feel passionate and have different views. If one party stomped out every time it couldn’t get what it wanted, then cooperation and coalition could never happen.
“Mr Hide thinks Act will win some support over the Maori seats issue, but it will lose more credibility than it gains. The public will see Mr Hide as irresponsible - and that is a larger problem for Mr Hide than the policy at stake.
“Larger parties will never be seen to be allowing the tail to wag the dog. All Act can do by walking out is make itself irrelevant. For small parties, there are a lot of bitter pills to swallow. If your ideas are popular, the larger party will adopt them as their own anyway, but at least you get your policy adopted.
“The way to get what you want is by constructive argument and dealing with the objections of your partner, not by making threats. If they couldn’t agree and believe the issue is so important, Act should have reached an agreement that another minister would take over the relevant bill, allowing Act to vote against it.
“Making every important issue a make or break one means that eventually the relationship will break or at least be less effective.
“I would be pleased to see someone else than Mr Hide as Minister for Local Government, however. He clearly doesn’t like local bodies or the constructive role they play in the development of their communities and that is hardly a good qualification for being their minister.”
Time has come for Kiwibank critics to admit they were wrong
Loans grew by 52 per cent. Retail deposits grew by 39 per cent.
“The decision to set up a New Zealand-owned bank was the right one.
“Kiwibank has been an overwhelming success.
“It’s great that we have our own bank performing so well at a time of international financial crisis. We don’t have to be dependent on overseas financial markets. Those markets right now look like the dog that critics claimed that Kiwibank would be.
“Kiwibank’s success results from its commitment to the New Zealand community that other banks don’t have: Its profits stay here and help New Zealand. It doesn’t get involved in large tax avoidance schemes. Kiwibank opened a larger branch network than the other banks, and as a result those banks have stopped closing their branches. And Kiwibank charges lower interest rates and fees than its overseas competitors.
“When Kiwibank was set up, National and Act – and their cheerleaders – said New Zealanders couldn’t run our own bank. They were wrong. Today would be a graceful day to admit it.”
Farmers to pay for Auckland roads
“The roads are still regional, but now the bill is national.
“There aren’t many farms in Auckland. But farmers will be getting the bill for Auckland roads.
“When we had a regional tax, a tunnel under Auckland would have been paid by Auckland motorists. Now they have axed the tunnel, and sent the bill to farmers and others outside Auckland. Everyone loses.
“Fuel costs are an important input cost for farmers. When petrol tax goes up, their input costs go up.
“It can be fair to charge someone more when they get more of the benefit. But farmers and others in rural communities get less benefit from new Auckland roads than Aucklanders do,” Jim Anderton said.
Families in energy poverty while Brownlee looks for magic pudding solution
households facing huge power bills this year, Progressive Wigram MP Jim
Anderton says.
"Gerry Brownlee is relying on a magic pudding solution that reduces
costs but no one's going to pay.
"Finding a new structure in energy could take years, while there is a
crisis of electricity poverty this winter," Jim Anderton says.
His Wigram electorate office has been inundated with record numbers of
people who can't afford their winter power bills.
For example, a solo mother with an eleven month old baby got a power
bill for $369 for a four-week period. A low income young working couple
in a Housing NZ flat got a power bill for $400 for four weeks, and a
superannuitant living alone in his own home got a power bill for $205.
"Many families are wondering how they will pay their bills. Power bills
have been driven up by a combination of an early start to winter, with
very cold months early this year, and power bills that have risen faster
than inflation.
"There are alternatives. The state of Victoria, for example, provides
low-income households with more than $1 billion a year in concessions
for essential services. It pays a rebate to some households that reduces
the cost of LPG heating gas. In the United Kingdom, the government
provides a winter fuel payment of NZ$750 for pensioners over 60, and it
pays NZ$1200 for the over-80s.
"Today's review shows energy companies are charging too much for power
and some of those profits should be used to help very poor New Zealand
households," Jim Anderton said.
Electricity poverty crisis
There is a crisis of electricity poverty underway in New Zealand this winter, Progressive Wigram MP Jim Anderton says.
His electorate office has been inundated with record numbers of people who can’t afford their winter power bills.
Examples include:
- A solo mother with an eleven month old baby got a power bill for $369 for a four-week period. She has a wood burner but can’t afford wood. She has a medical certificate from her GP about the respiratory condition of her baby. She lives in a Housing New Zealand home, but can’t get a heat pump or carpet to help keep the house warm. How is she supposed to pay that bill?
- A young couple in another Housing NZ home have one source of power – a wall heater. They got a power bill for $400 for four weeks. These are working people on a very low income, already struggling to pay their rent. There is paint peeling off the walls because of mould. They are on the waiting list for a heat pump, but won’t be getting it before the winter is over.
- A young solo mother with four children came to my office with a power account of $400 for four weeks. They are in a Housing New Zealand home with a log burner, and on the urgent waiting list for a heat pump.
- I had a superannuitant who came to see me, living in his own home, alone. He got a power bill for $205. If you are living on a fixed income and you get a power bill of $205 for four weeks, what are you supposed to do?
“What is a solo mum with four kids meant to do with a power bill of $400 for four weeks? All four children have recurrent upper and lower respiratory tract infections. That is what happens when you have electricity poverty. Health problems that cost much more than the power bill.
“I understand that Housing New Zealand is not even allowing energy community action to enter homes to undertake a report on insulation and heating options.
“There is no other expense that is similar to electricity bills - a seasonal spike that is an unavoidable expense, unpredictable and sometimes quite extreme in the context of a family budget;
“There are alternatives. The state of Victoria, for example, provides low-income households with more than $1 billion a year in concessions for essential services. It pays a rebate to some households that reduces the cost of LPG heating gas.
“In the United Kingdom, the government provides a winter fuel payment of NZ$750 for pensioners over 60, and it pays NZ$1200 for the over-80s.
“I believe we need some urgent intervention to help New Zealand homes. Energy prices have been rising steadily for around fifteen years. That has now combined with a very cold couple of months.
“The result is electricity poverty and real hardship for thousands of New Zealanders,” Jim Anderton said.
Feds’ concern over interest rates a topic for bank inquiry Feds’ concern over interest rates a topic for bank inquiry
Federated farmers says its economists calculate that floating rates account for about $6.6 billion of the $45 billion of rural debt and “floating mortgage rates are higher than they could be.”
Three parliamentary parties, Labour, Greens and the progressives are holding an inquiry on the topic and Jim Anderton wants banks to front up and answer farmers’ concerns.
“Banks need to explain why their interest rates haven’t come down as fast as the Reserve Bank has been bringing down the official cash rate that banks pay the Reserve Bank for their deposits. Not even the Governor of the Reserve bank can understand why they are not reducing their rates.
“Farmers are the backbone of the economy, and the pressure high interest rates are causing farmers is pressure on New Zealand’s entire economic development.”
Treasury claims about privatisation boosting productivity
Treasury’s claim that privatisation boosts productivity is an old song that Treasury should be embarrassed about, Progressive Wigram MP Jim Anderton says.
“Treasury made the exact same claim about the privatisation of rail. It could not have been more wrong. The privatisation of rail was a disaster on any reasonable measure.”
Jim Anderton tabled in parliament Treasury’s 1999 report “The Privatisation of New Zealand Rail.”
In the report, produced when Bill English was finance minister, Treasury claimed, “welfare increased from the privatisation of rail. This reflects the remarkable improvement in productivity that took place.”
“Treasury has long made a habit of calling for the same medicine regardless of the facts. When the facts showed Treasury’s advice about privatising rail was hopelessly wrong, they made up a case that said it was great anyway! You can’t beat this for poor quality advice. If Treasury was a doctor, the patient would be dead.
In an ironic twist on Treasury’s call for other government departments to contract out more work, the discredited rail report was produced under contract for Treasury.
Banks have questions to answer
Banks are charging interest rates in New Zealand that are higher than the same banks charge in Australia, Progressive Wigram MP Jim Anderton says.
He is supporting a cross-party inquiry into bank profits, because he says the banks have questions to answer about why there is a difference in the rates they charge.
“Overseas-owned banks took $11.7 billion out of New Zealand last year in interest and profits. That’s more than the entire sum collected in GST revenue. The amount they have been paying themselves has increased rapidly over the last three or four years.
“Interest rates charged by the overseas banks are especially affecting farmers.
“Total farm debt at the moment is around $43 billion. At farm lending rates of 13-14 per cent, that means our farmers are having to pay $5.5-6 billion a year in interest alone to the Australian banks.
“Every one per cent of interest charged represents $450 million off the bottom line of New Zealand’s farms.
“The Australian banks charge interest on unsecured loans of 17.95%, compared to 16.9% charged by Kiwibank.
“Interest on a standard Westpac credit card is 19.45%. In Australia, the comparable interest rate charged on a standard Westpac card is 17.74%. Australia has a higher official cash rate than we do. Kiwibank is able to charge 12.9% on its standard credit cards.
“An inquiry will help to establish why Aussie banks charge us more than they charge Australians.”
How to reduce prison populations
But he says the only viable way to reduce prison overcrowding is to reduce the level of crime by targeting drugs and alcohol.
“Longer prison sentences are not making much difference.
“The Chief Justice’s comments are the latest of a flurry this year looking at the justice system: Pita Sharples wants to build special Maori prisons for Maori offenders. The government wants to build prisons out of shipping containers. The next step will be putting containers on a container ship and shipping them offshore.
“All of these ideas are looking at the wrong end of the problem. Early intervention works best and costs less.
“If you intervene early, you don’t have as many victims, and you don’t need to worry about locking people up or letting them out.
“Three out of five offences are committed while the offender is under the influence of alcohol. If you want to cut crime, you can’t go past that figure.
“The government made big promises about significantly cutting serious offending. It won’t keep that promise, because it won’t do anything about the most common factor in criminal offending.
“Reducing the abuse of alcohol is a tough issue to fix. Until it is fixed, crime rates will remain high, more prisons will be built in local neighbourhoods, we will pay higher taxes to build them, they will continue to be overcrowded and they will continue to fail.”
Fitch warning a wake up on bank profits.
Warnings of a credit downgrade because of our current account deficit are a wake up call about the sums we are paying foreign banks in interest and profit to fund the deficit, Progressive Wigram MP Jim Anderton says.
The Fitch rating agency warns that New Zealand has a fifty-fifty chance of a credit downgrade because the current account is very high. Unless it halves, we will be downgraded, and households, farmers and businesses will have to pay higher interest rates.
Jim Anderton says the external deficit is already costing New Zealand too much.
“We sent $11.7 billion in interest and profit to overseas-owned banks last year, more than the government collected in GST revenue. Farmers alone are paying interest of around six billion dollars in farm debt.
“Interest rates charged here by the Australian-owned banks are higher than the same banks charge in Australia. Their margins are higher.
“We are sending that money to the overseas-owned banks because they are financing the current account deficit. When house prices rose, New Zealanders borrowed against the capital, bought new plasma tvs, but didn’t increase our capacity to earn more.
“Now the bill is starting to come in.
“Current account deficits have a history of reversing themselves sharply, with very sudden falls in consumption. That amounts to a poor outlook when the government is already hoping the recession will end by itself.
“Unfortunately the government doesn’t have any economic plans to reduce the current account deficit and it doesn’t even recognise the level of profits going to overseas-owned banks are a problem.
“Rogernomics was meant to end the current account deficit problem for ever. It failed abysmally.”
All talk and no jobs
National is talking big about agriculture, but it’s running up a surrender flag with no new ideas, Opposition agriculture spokesperson Jim Anderton says.
“Today John Key billed his speech as a major statement on the economy, but he had no new ideas while unemployment is increasing.
“Unemployment in a region like Gisborne increased from 3.8% in 2006 to 7.8% in March this year and it will be inevitably higher now. Yet while unemployment is rising quickly in regional New Zealand, National has no ministry or policy for regional development or industry development. They never did and they don’t have now.
“National imposed a massive tax increase on research and development and it cancelled a two-billion dollar partnership between the government and private sector to invest in primary sector innovation.
“While John Key talks about the economic performance of agriculture, he has no idea about why our farms, businesses and homeowners are paying much higher interest rates than Australians, when the same banks are doing the lending.
“John Key is all talk and no jobs,” Jim Anderton said.
Complaints over secret agreements
An attempt to hold negotiations over Auckland’s water services in secret might be a breach of the law, Progressive Wigram MP Jim Anderton says.
He is going to the Ombudsman and Auditor-General with complaints over a ‘confidentiality agreement’ Watercare has tried to make Auckland councils sign. The agreement would stop councils from disclosing any details about the transfer of water businesses to Watercare.
Jim Anderton says the agreement appears to be an attempt to thwart the law around official information - in particular the Local Government Official Information and Meetings Act 1987. It provides the only grounds councils can use to restrict disclosure of information. It also provides for redress through the Ombudsman.
“The ‘confidentiality agreement’ has the whiff of darkness about it.
“There should be nothing in the transfer of the water business of councils that can’t be dealt with through the official information statutes. The important protection for the public is that officials can’t use our money without being accountable to the public. If there are public interest grounds for withholding information, then those grounds are subject to simple review by the Ombudsman.
“Therefore the attempt to override the statute with a secrecy deal appears to be sinister.
“You can’t use public money for unlawful purposes. Thwarting an Act of parliament is unlawful. Any public money used to write this agreement or negotiate it will have to be paid back. Any lawyers involved should be thinking about refunding their fees.
“What we are seeing repeatedly from the national government and its henchmen in Auckland is a highly undemocratic tendency towards taxation without representation.
“First, the public’s right to vote on Auckland was blocked by Act of parliament, passed under urgency. Now the public’s right to know what is happening to our assets is being blocked.”
Why do Aussie banks charge us more than they charge Australians?
Interest rates charged by the big Australian banks are not only higher than the rates charged by New Zealand’s own bank - they’re higher than the rates the Aussies charge themselves, Progressive Wigram MP Jim Anderton says.
“Floating interest rates on mortgages are far too high. But interest rates on credit cards, unsecured lending and farm lending are simply scandalous.
“For example, interest on a standard Westpac credit card is 19.45%. In Australia, the comparable interest rate charged on a standard Westpac card is 17.74%. Australia has a higher official cash rate than we do. Kiwibank is able to charge 12.9% on its standard credit cards.
“The rate for borrowing cash on a credit card in New Zealand is 22.45%, while the same bank charges 19.99% in Australia.
“Why do Aussie banks charge us more than they charge Australians?
“Everywhere you look, the Australian banks are charging too much for lending in New Zealand.
“Total farm debt at the moment is around $43 billion. At farm lending rates of 13-14%, that means our farmers are having to pay $5.5-6 billion a year in interest alone to the Australian banks.
“The Australian banks charge interest on unsecured loans of 17.95%, compared to 16.9% charged by Kiwibank.
“New Zealanders sent $11.7 billion in profit and interest payments to Australian-owned banks last year. That’s more than the entire sum collected in GST revenue. There is no reason why interest rates can’t come down. The Australian banks are rapacious.
“This picture of excessive interest charges more than justifies a parliamentary select committee enquiry and one can only guess why the National government is opposed to one taking place,” Jim Anderton said.
Banks repatriating ‘enormous amounts’
New Zealand bank branches paid their overseas owners $11.7 billion in interest and profit last year.
Progressive Wigram MP Jim Anderton told a Federated Farmers conference today that the situation poses a risk for the agriculture sector, which is facing a ‘perfect storm’ of input price rises, threats to demand and now finance risks.
Total bank lending to agriculture in April this year was $43.7 billion, or 13.8 per cent of the total lent to New Zealand.
“Two thirds of that is lending to the dairy industry - at a time when one estimate says Fonterra could be forced to cut its payout from the current $4.55 if our dollar stays over sixty US cents. This would be very hard on some farming businesses that thought the last couple of years’ high prices would last longer. If interest rates came down just one per cent, farmers would save $450 million,” Jim Anderton said.
“The banking system has begun repatriating enormous amounts of New Zealand money.”
Remittances by banks in New Zealand to their overseas owners climbed from $3.8 billion in 2000, to 4.6 billion in 2004, and then began climbing steeply: $6 billion in 2005; $7.8 billion in 2006; $9.1 billion in 2007 and $11.7 billion last year.
“That’s more than the entire GST revenue of New Zealand. It is more than the entire education budget. And in a single year it is far more than the entire proceeds of the asset sales programme that caused so much pain through the eighties and nineties.”
“The huge remittances to banks are the result of the Australian banks funding our balance of payments deficit, now at sixteen billion dollars a year. They are taking an enormous clip of the ticket for doing it. We need to rely more on our own savings, instead of spending the savings of others.
“Interest rates are too high at a time when banks should be reducing them. In a recession, while banks around the world have been under pressure, the big banks here have been smirking. In the current environment, a lot of farms are facing a squeeze and they will struggle to meet the payments on their debt.”
Comparing Tamils with Te Whiti is not credible
“When I heard Ms Turia on Waatea Radio comparing the two leaders - one from Sri Lanka fighting for a separate Tamil homeland – and the other well-known and revered New Zealander, Te Whiti - and the lesser known Tohu Kakahi, I did a double-take,” Jim Anderton said.
“Ms Turia said that Prabhakaran’s 33-year war for a separate Tamil homeland in Northern Sri Lanka had its roots in British colonial policies which disenfranchised the Tamil mana whenua from their land and when non-violent protest didn’t work, the Tigers turned to military action.
“Prabhakaran, their leader was a proponent of violence from the outset and remained so the whole of his political life. The ‘military action’ that Ms Turia talks about included pioneering the suicide belt as an instrument of assassination and terrorism, and as result of which many innocent civilians and bystanders suffered horrible deaths.
“Te Whiti and Tohu Kakahi’s greatness comes from their embrace of passive resistance, which preceded Mohandas Ghandi, and it is the kind of role model which Ms Turia and the Maori Party should be promoting particularly for young Maori, rather than the record and actions of perpetrators of mindless violence which always leads to more violence, not less,” Jim Anderton said.
See also here.
National is already causing super damage
“The cancellation of contributions to the Super Fund means we will be less able to meet the cost of superannuation in the future. This must mean either cuts to entitlement, increasing the age threshold, or substantial tax increases in the future.
“Already commentators are queuing up to say the age of eligibility will have to increase, or the link to the average wage will be dropped - meaning superannuitants will be poorer relative to other New Zealanders. Others are already calling for a return to some kind of surtax that actually penalises people for saving.
“When New Zealanders hear this, they begin to make changes in their lifestyle immediately, because you cannot change your retirement plans at the last minute. Families don’t know how much more they have to put aside to pay for their retirement. And the political consensus they rely on to make long term decisions begins to erode.
“National has a dreadful track record on superannuation because it doesn’t fundamentally believe in all New Zealanders having access to a secure retirement income at a level that enables retired New Zealanders to a reasonable standard of living.
“New Zealanders have already lost some of their security because of National’s decision to back track on meeting some of the future costs of superannuation.
“Increased chatter about future cuts to super is all the proof that’s needed that the damage is already being done,” Jim Anderton said.
Huge cuts in primary sector science
The total value of primary sector science investment falls from $2 billion in NZ Fast Forward under the last government to as little as $1.2 billion now.
Like for like government spending over ten years falls from around a billion dollars in the NZ Fast Forward Fund, to $610 million in the government’s replacement.
“With matching private sector funding, the total investment in primary sector research and development falls by $800 million, or about 0.4 per cent of GDP.
In addition, the government has not replaced a cent of the cancelled research and development tax credit. Overall, the government is cutting innovation spending by more than the value of the personal tax cuts.
“This is huge cut in science and research. It is a disaster for the future of New Zealand’s economy,” Jim Anderton says.
“Other developed countries are preparing themselves to come out of recession stronger. New Zealand is preparing by switching from science and research to poltergeists and UFOs.
“The government promised the primary sector it would spend more on science and research. It has broken that promise as surely as if it has broken its promise on personal taxes.”
Winter rebate from electricity companies would be appreciated
“For many New Zealanders, this wintry weather brings on a bitter struggle with the cold and the dilemma of whether they can turn on a heater or not. Low income households, the elderly and students fear their electricity bills and well they might. I remember when the electricity bills came every two months – now the monthly bill is the same – or more – than the bi-monthly one was,” Jim Anderton said.
“The Commerce Commission’s principle investigation into the wholesale or retail electricity markets which showed that the electricity companies have not breached Part 2 of the Commerce Act but their extra $4.3 billion in earnings from 2001 to mid-2007 reveals they are charging with a take no prisoners mentality. The electricity companies’ profits are at the expense of New Zealand’s most economically vulnerable.
“Since 2002, I have pushed for a return to consumers of some of the big profit increases from the state-owned power companies to help them with winter power bills. Low income households could be given $200 toward winter heating costs and power companies would still contribute as much to the government as they did last year.
“$200 would mean some households had a month of relief from winter heating costs. For superannuitants, beneficiaries and people who have lost their jobs in the downturn, it would make a huge difference.
“The Commerce Commission’s ruling on the power companies should not be seen as sign off for a return to business as usual. I am sure that New Zealanders would be hugely relieved to see the companies acting in the interests’ of their consumers with a winter rebate during this winter,” Jim Anderton said.
Needle Exchange Programme proven it worth
“The Progressive Party successfully bid for the funding to institute a free-to-users, one-for-one exchange basis in 2004, spread over 4 years, because we wanted to minimise the harm caused by drugs”, Jim Anderton said at the 21st Anniversary tonight in Auckland.
“Back in 2002, I was appointed as the Associate Minister of Health and the minister responsible for drug policy. I received an independent review of the needle and syringe exchange programme. It reported that the programme saves lives. It said the programme saved - back then, seven years ago - $35 million in treatment costs since it had been established.
“The report said plainly that the needle exchange programme reduces the harm caused by drug use. It told me the programme back then had helped to prevent twenty deaths from AIDS and more than two thousand cases of Hepatitis C and HIV/AIDS.
“When you get a report like that in government, you sit up and take notice. It makes a pleasant change from all the doom and gloom about things that don’t work. Here was clear evidence of a programme that worked.
“And I remember a speech was given on the Bill by one MP at the time, saying he was worried about it. He thought a user should have to prove to a court their needles came from an approved source.
“And while he was giving his speech an Opposition MP interjected and said this: “Absolutely. This provision is political correctness by a liberal Government.” The National MP who made that statement in parliament is now the Minister of Health - Tony Ryall. He now has responsibility for the needle exchange programme,” Jim Anderton said.
“But there you have some insight into the battle you have to face if you want to do the right thing to minimise the harm caused by drug use. And on this day when we celebrate 21 years of a successful programme, you can be sure that we need to be vigilant in defence of good ideas.
“There were people who sneered at that as liberal political correctness. I can tell you from personal experience there aren’t many votes in being wise or liberal about this stuff. But it was then, and is now, the right thing to do anyway.
“The results have been very worthwhile. Obviously, I wish we didn’t need this programme. I wish we didn’t have drug use causing the harm it does, wrecking the lives of many people, and wrecking many communities.
“But it does happen. It will keep happening. And if we care about vulnerable victims then our responsibility is to reduce the harm to them as much as we can. The needle exchange programme does just that and I endorse it for that reason”, Jim Anderton said.
Aucklanders should have an elected, not appointed leaders
“Why is the government even appointing a board? The way we find people to run local government in New Zealand is we have democratic elections.
“A government that listened to New Zealanders would not have a problem making a choice of leadership. The people do the appointing for it.
“In a democratic election, you are much more likely to get leadership that looks like Auckland. National seems interested only in leadership that looks like the National or ACT Party.
“I am very concerned that the quality of decision-making in the government is falling apart as the pressure of actually governing comes on.
“The National government is making poor decisions or refusing to make them at all.
“It created a sense of urgency for itself over Auckland’s super city, and now it can’t even meet its own urgent timetable,” Jim Anderton said.
Anderton brands Auckland reorganisation as the “Removal of Democracy” bill
“The Local Government Act would have given Aucklanders a say in one of the most significant changes in local government in their region they will see in their lifetime, but they are not going to have a chance to have that say”, Jim Anderton said.
“In essence it is a great leap backwards to the days when 21 out of twenty two councillors lived east of Queen Street. It was the reason why a ward system had to be introduced so that all Aucklanders could actually be represented on their own Council. The conservative rightwingers have always resented that change and this proposal returns Auckland to the past they have always hankered after.
“In real life terms it means, for example, the end of free swimming pools for the kids of South Auckland and any other future say for most Aucklanders in the way they want their local communities to deliver for them. Does anyone believe that those pools will continue to be free under the government’s proposal? I can already hear the self appointed Mayor of the super city, John Banks, making speeches about why the ratepayers of Auckland City shouldn’t be subsidising the swimming pools of south Auckland”, Jim Anderton said.
“I support a strong regional government for Auckland. There used to be one – the Auckland Regional Authority (ARA) and I know about it because I was elected to it in 1977. We bought all the major regional parks and replaced the entire ancient bus fleet with new Mercedes Benz.
“In 1989, the Labour government replaced the ARA with the Auckland Regional Council (ARC). In 1992, the then National government wanted to sell the Ports of Auckland and the water services, so they diverted ownership of these and other profitable assets into the newly established Auckland Regional Services Trust (ARST) with the plan to sell. What a shambles that would have been if it had been allowed to happen. It took all of the strength of the political group I led at the time to put a stop to that. Auckland has reaped the benefit ever since,” Jim Anderton said.
“Now they’re having another go. This is a privatisers’ dream to sell the community assets of Auckland, and is entirely in line with Rodney Hide and the ACT party’s ideologies. Does anyone believe that this is in the best interests of Aucklanders?
“You can understand in those circumstances why the National ACT government doesn’t want people to have a say as to whether or not they want this outrageous piece of community destruction to go ahead,” Jim Anderton said in the House today.
MPs should not be able to fight by-elections
He is drafting a members’ bill to stop MPs from standing for parliament in by-elections.
“In Mt Albert, there are three MPs standing for parliament. They are already MPs. If they want to represent the electorate, they already can. Any list MP can open an electorate office in Mt Albert and be a good representative.
“What those MPs are really doing in using their parliamentary salaries and resources to bring in someone on a party list who has nothing to do with Mt Albert. For example, if the National candidate were to win she would be an MP just as she is now. But she would bring in a new MP who virtually no one has heard of, and who might never have visited Mt Albert in his or her life.
“MPs who contest the seat but lose bring MMP into disrepute. Since there are three MPs contesting the seat, at least two of them have to lose and maybe all three will lose. If they are going to test their mandate, they should be prepared to live with the result.
“In a general election, no MP has insurance. They have to get enough votes in their electorate or for their party, or they are out. It’s a democratic farce to have different rules in a by-election.
“A simple bill that stopped a sitting MP standing in a by-election would force MPs to make a meaningful choice - if they really want to contest a seat, they should resign from parliament and contest it on the same basis as anyone else.
“MPs shouldn’t fight a parliamentary by-election while they’re drawing a full parliamentary salary,” Jim Anderton said.
Maori Party sides with disgusting humanitarian abuse
Progressive leader Jim Anderton is disgusted that the Maori Party has sided with appalling humanitaran abuses by blocking a motion in Parliament that expressed concern about the dire humanitarian situation in Northern Sri Lanka.
The United Nations estimates that since January 200,000 civilians have fled their homes, 4,500 have been killed and 12,000 wounded. The Red Cross has helped over ten thousand wounded civilians caught up in fighting between Sri Lankan Government and the Liberation Tamil Tigers of Eelam (LTTE).
Today Jim Anderton asked parliament to pass a motion expressing concern about the dire humanitarian situation in Northern Sri Lanka, asking that civilians be spared and calling on respect for international humanitarian law. All parliamentary parties were given a copy of the notice of motion in advance. Only the Maori Party stopped it being adopted.
“The Maori Party’s behaviour is outrageous,” Jim Anderton said.
“The situation in Sri Lanka is dire. There is very little we can do from here, but one thing we can do is express support for the civilians caught up in fighting.
“No one is being asked to take sides. But parliamentarians were asked to express concern, they were asked to express support for allowing civilians to leave the combat zone, they were asked to condemn violence against civilians leaving the combat zone and they were asked to respect international humanitarian law.
“What on that list could any reasonable person be opposed to?”
The motion read:
That this House, notes its deep concern at the dire humanitarian situation in Northern Sri Lanka and calls upon both the Sri Lankan Government and the Liberation Tamil Tigers of Eelam (LTTE) to immediately stop hostilities to allow those civilians in the combat zone to move to safety, condemns all acts of violence and intimidation which are preventing civilians from leaving the conflict area, and calls on both sides to respect international humanitarian law and to protect and assist the civilian population in combat zone, as in the internally displaced persons (IDP) camps.
Focus aid on poverty elimination
Jim Anderton is a former economic development minister, and Progressive party deputy leader Matt Robson set up NZAid when he was overseas development minister.
“The poorest billion people in the world live in conditions we associate with fourteenth century deprivation. Bringing them out of poverty requires a focus on good government, on transparency and ending corruption,” Jim Anderton says.
“More money is stolen from Africa every year by corrupt governments than the world gives the entire continent in aid. It gets stolen and put in western banks. If we simply stopped Western banks from being used to hold the stolen proceeds of looting in Africa by corrupt political leaders, it would have the same effect as the overnight doubling of aid budgets. A focus on economic development doesn’t even look at this issue - a focus on poverty does.
“A focus on poverty requires a focus on post-conflict recovery. Not much is going to be done about poverty in a country ruined by civil war, where any money that comes in gets spent on strengthening the military. Focusing on these issues is crucial - but you cannot do a good job of that if you focus on economic development alone.”
Jim Anderton says it is profoundly wrong to make assistance to New Zealand companies the focus of our aid effort.
“We don’t give aid to benefit New Zealand companies. We do it because we are good global citizens. Trying to sell more of our exports to the poorest countries is not much of an economic strategy. We are not going to develop export markets for New Zealand by focusing on how much we can sell to the poorest people in the world.
“We should certainly be open to trade with the least developed countries of the world. But trade reform alone, while necessary, is not sufficient.”
Cutting holidays doesn’t stack up with 9-day fortnight
It doesn’t make sense for National to remove four weeks minimum annual leave at the same time that it is trying to encourage a nine day fortnight, Progressive leader Jim Anderton says.
Four weeks minimum annual leave was a Progressive Party initiative. It was introduced as a result of a member’s bill introduced by Progressive MP Matt Robson.
“Cutting four weeks’ leave is hypocritical for a government that took 27 days of holidays in its first 100 days in office. What’s good for National MPs ought to be good for working New Zealanders,” Jim Anderton said.
“Calling the axing of holidays a ‘buy-back’ doesn’t change the fact that it cuts the minimum holiday entitlement.
“Thousands of workers who are paid just over the minimum wage will be presented with employment contracts that say they request cash instead of annual leave – and their employers will tell them ‘we will have to cut your pay if you don’t sign.’
“The same employer could then put their hand out for a government subsidy to reduce that worker’s hours by a day a fortnight.
“National is returning to its nasty, anti-worker roots.”
Auckland road tax shows National doesn’t get agriculture
“The whole country can benefit from roads that boost Auckland’s economy; But Auckland can benefit from the economic activity of the rest of the country too. How many farms are in Queen Street? When rural communities have to pay for roads they don’t use, it is a drag on them.
“The decision to make farmers pay more for Auckland roads is a decision by Auckland money market dealers who don’t understand our primary industry.
“It’s fairer to pay for extra projects locally, because local communities can best decide their top priorities and also decide whether the extra cost is worth it.
“The National Government has no new ideas so it’s going back to its old form in government – asking farmers and rural communities to pay more and more, while providing less and less services.”
Use power company profits to reduce winter power bills
He says low income households could be given $200 toward winter heating costs and power companies would still contribute as much to the government than they did last year.
“$200 would mean some households had a month of relief from winter heating costs. For superannuitants, beneficiaries and people who have lost their jobs in the downturn, it would make a huge difference.”
Mighty River Power recorded a profit of $234 million in the last six months of last year.
“That on its own is enough for every household in New Zealand to get a cheque of nearly $200.
“Genesis’ profit for the half year is up by 38 per cent, Transpower’s is up by over a quarter and Meridian is the most profitable of the lot.
“At the same time that the people’s own power companies are booming, the people who own them are heading for a winter when many will struggle to pay the bills. The government should help low income households out by returning some of the huge dividends,” Jim Anderton said.
According to Statistics New Zealand, there are about 1.4 million households. If half were eligible for a $200 winter power rebate, that would cost $140 million. $200 is the estimated winter power bill for a month for the lowest income half of households.
National vote-buying with taxpayers’ money
“They have noticed that government MPs have bigger electorates by land area than Opposition MPs, because the Opposition tends to hold inner city seats. So they have put a fix in and handed out more money to big electorates. This is a gerrymander.
Not only that but the rules they are putting in place are different for Maori seats. Maori seats qualify for extra funding if they are over 10,000 square kilometres. General seats qualify if they are over 20,000. I can think of no reason why a differentiation should be made.
“National is so brazen it has even left out the biggest electorate in the country – Rongotai.
“The busiest electorate offices in the country are inner city electorates. Imagine the outcry from National if Labour had given busier offices more.
“Most National MPs don’t need extra support staff; they just need to work harder.
“This is the same National Party that claimed to be the very soul of injured innocence when the Electoral Finance Act was changed - yet, whatever your opinion of the EFA, at least everyone was treated the same.
“The National Party has spent all this week reverting to form - backward-looking, mean and getting its priorities all wrong.
“Now National is taking money from higher priority uses to buy the votes of its own supporters. This is exactly the same National party that used to gave Alamein Kopu a nice Beehive office to secure its majority. Turns out that John Key is made of the same stuff.”
National Govt has a casual attitude to the harm caused by alcohol abuse
“Alcohol is an enormous factor in crime. Between half and three quarters of all police work is associated in some way with alcohol abuse. Two out of three people the police deal with as offenders have been using alcohol prior to the offence being committed.
“But government members are the first to sneer about nanny state when someone tries to fix the problems. They claim to be anti-crime, but they also sneer and call anyone who tries to reduce crime the ‘fun police.’
“Alcohol causes between one and a half and two and a half billion dollars worth of economic and social harm every year. It is by far the most damaging drug in this country. It is the most damaging not because it is the most intrinsically dangerous drug - far from it. It is the most damaging because it is the most available drug. And in the recent years when alcohol was made much more available, predictably the harm caused by alcohol has risen as well.”
Last year, if the road toll among 15-29 year olds had fallen by the same amount as the general population, there would have been twenty fewer deaths of young New Zealanders.
In the years prior to 1999 the number of dead drivers who had a blood alcohol level above the legal limit had been tracking down. Since 1999, when the purchase age was lowered, the number of dead drivers has stopped tracking down.
In 2000 there were 4,079 fifteen to 29 year old car and van drivers involved in injury crashes. In 2007, there were 6,538 - an increase of sixty percent. The number of injuries among young people is far greater than the number among the general population.
“Sensible control is not prohibition, and pretending they are the same is irresponsible and distorted. I support reducing the availability of alcohol for young people and I support more restrictions on alcohol advertising and availability in the community,” Jim Anderton said.
It was all about privatising jails
“The report confirms mainly that Judith Collins is not equipped for a tough job.
“And it exposes the campaign to vilify a government department was really a cynical campaign to privatise prison management.
“Ms Collins swaggered around leaving no one under any doubt that she would force the Corrections department CEO to step down. For example, the Herald - citing Ms Collins’ ‘ruthless combination of raw power and tactical guile’ - declared:
She has made Matthews’ position utterly untenable. And she left the State Services Commission - as Matthews’ employer - no option but to remove him, assuming he does not resign beforehand.
Jim Anderton says the pressure on Mr Matthews to go was always an overreaction to the Auditor’s report.
“Among the specific, highlighted examples the Auditor cited were failures to fill out reports and inconsistency in classification of the illness of paroled offenders. These procedural issues needed to be fixed, but it was unjustified and disproportionate to say they amounted to a case for immediate dismissal. That was always going to be a wrong judgement - exactly what the State Services inquiry has found.
“Ms Collins should have known that there was no case to support the dismissal of the CEO of her department. Either she didn’t know and isn’t up to the job, or she did know and was cynical in the way she used the issue.”
Nats’ ACC cuts hit elderly, poor and farmers
He says new charges for some ACC services will mean low income people can’t afford treatment. Competing ACC providers will mean higher premiums for farmers. And many working people will be left without cover when private providers fail.
“If National charges for some ACC treatment, some low income people won’t be able to afford to pay. That means working people on lower wages, and especially beneficiaries and superannuitants, won’t be able to get treatment if they are hurt in an accident.
“National’s plans mean no rehabilitation for your elderly mum if she falls over in a shop unless someone can cough up for the costs of treatment.
“It is disgusting for the government to save ACC costs by blocking physio and rehabilitation services for elderly New Zealanders. How would a pensioner afford a $50 a week physio fee? Most of them paid their premiums for much of their working lives and national is contemplating increasing their costs at the same time it is cutting tax for the most affluent New Zealanders.
“National’s plans to bring in competition and privatise ACC will put up prices. A report from the previous National-Liberal Government in Australia, comparing accident compensation in Australia and New Zealand in 2004, showed levies in Australia’s competitive market were twice as expensive as those in New Zealand for the primary sector.
“A competitive scheme could result in a levy hike of as much as 250 per cent for rural people like farmers.
“Our ACC administration cost is about a third of Australian schemes.
“In Victoria – where two companies competed so seriously they ran each other out of business – they competed by underfunding the tail. In other words, in a competitive system, companies can go broke and leave liabilities for long term claims unpaid. What happens to people needing long term care for their accidents when the provider goes broke?”
McCully to return to pork barrel NZAid
"He should just set up a Department of Bribes and be done with it said Matt Robson.
"Being part of MFAT was exactly the problem with NZ development aid before we separated it out into a specialist division."
"It was staffed by junior diplomats on their way up or older diplomats on their way out. There was no specialist department. The programmes were in a muddle. We gave aid to two super military powers- China and India. Why? To peddle influence in their capitals not to help the poorest people. It is to that obscene policy that McCully is obviously attracted.
"Phil Goff as Foreign Minister and I as the Minister responsible for Aid deliberately separated out development aid from Foreign Affairs as it was largely being used as a fund used for New Zealand’s foreign policy aims not to help the development, in a systematic way, of the world’s poorest policy.
"Under National aid money was used by Foreign Affairs to win the support and votes of tyrants like Suharto of Indonesia and the King of Tonga. It was used to give retirement jobs like the head of the Commonwealth to ex National MPs like Don McKinnon.
"NZ Aid was a progressive step for NZ ," concluded Matt Robson.
Kiwibank continues to prove itself a winner
“Combining its profit and its tax paid, Kiwibank is generating almost enough income for the government in one year to equal the $80 million it cost to set up.”
Kiwibank today declared an after-tax profit of $25.8 million for the last six months of last year. It also paid tax of $12 million.
“Kiwibank’s deposits are soaring because New Zealanders can see it offers a better deal than they would have if we didn’t have our own bank. Kiwibank has an AA- credit rating.
“And Kiwibank’s lending is soaring too, because it can offer lower interest rates.
“It’s great that we have our own bank performing so well at a time of international financial crisis. We don’t have to be dependent on overseas financial markets. Those markets right now look like the dog that critics claimed that Kiwibank would be.
“Kiwibank is, after only six years of operating, worth more than NZ Post. Its profitability is steadily rising. Kiwibank is continuing to prove itself a winner.”
Why is National guaranteeing FAI Finance?
“The absolutely top policy guidelines specified by Treasury for considering a Crown guarantee are ‘the maintenance of public confidence in New Zealand’s financial system; and maintaining the confidence of general public depositors in New Zealand financial institutions.’ It is not clear how a guarantee for Hanover companies fits that guideline,” Jim Anderton said.
The Treasury says factors that should be taken into account in giving a guarantee include the size of the entity and related party exposure, the business practice of the entity, the ‘good character’ and business acumen of the entity and “The track record of the entity.”
Last year Hanover froze over half a billion of investors money and investors approved a recovery plan in December.
In June last year, the latest date recorded in its prospectus issued this month, FAI had assets in loans worth a total of $28,582,000, at an average interest rate of 21.63%. This sum included $15,119,000 due in 2-5 years. Investors had $18,542,000 in FAI at an average interest rate of 9.9%. Among those entitled to their money back, $6,468,000 was on call, $7,514,000 due in 6-12 months, and $382,000 due in more than two years.
The Crown receives a fee for the guarantee, which could be worth as little as $28,000 a year.
Jim Anderton said a Crown guarantee to Hanover is a strange response to the financial crisis.
“The point of the guarantee is to prevent the entire deposit base of New Zealand fleeing. But there is still room for non-guaranteed businesses that should be able to charge an interest rate reflecting their risk. Hanover is the sort of company that the market can make its own decisions about.
“Mr Hotchin and Mr Watson appear to be affluent men and it is hard to see why they shouldn’t give the guarantee from their own resources instead of those of the Crown.”
Who owns FAI Finance?
Companies Office records, 24 February 2009
FAI Finance
Directors: Mark Hotchin
Greg Muir
Shares: 15,766,588 - all held by Hanover Finance
Hanover Finance
Directors: Mark Hotchin
Greg Muir
Shares: 71,651-596
- 37,835,596 held by Hanover Financial Services
- 33,815,000 held by Hanover Capital
Hanover Capital
Directors: Mark Hotchin
Greg Muir
Shares: 5,000,000 all owned by Hanover Financial Services
Hanover Financial Services
Directors: Mark Hotchin
Greg Muir
Shares: 13,303,620 all owned by Hanover Group.
Hanover Group
Directors: Mark Flay
Mark Hotchin
Greg Muir
Eric Watson
Shares: 207,327,000 all owned by Hanover Group Holdings
Hanover Group Holdings
Directors: Mark Flay
Mark Hotchin
Eric Watson
Shares: 87,871,057
Of these:
- 77,279,174 owned by Hotchin Investments.
- 10,591,883 owned by Forefront Investments.
Hotchin Investments
Directors: Mark Hotchin
Dwayne McGorman
Shares: 39,500,000 all owned by Hotchin Trustee Ltd
Hotchin Trustee Ltd
Directors: John Radley
Tony Thomas
Shares: 1000, all owned by the directors (= trustees).
Forefront Investments
Directors: Leslie Archer
Mark Flay
Eric Watson
Shares: 596,933;
Of these:
- 5000 owned by Eric Watson
- 591,933 owned by Peak NZ
Peak NZ
Directors: Bruce Armitage
Don Stanway
Eric Watson
Shares: 100, all owned by Foreshore Investments
Foreshore Investments
Directors: Leslie Archer
Mark Flay
Shares: 100, all owned by Cire Trust
Cire Trust
Directors: Mark Flay
Eric Watson
Shares: 100, all owned by Eric Watson.
FAI’s loans/deposits
FAI Prospectus 7, registered 9 February 2009.
At 20 June 2008, FAI had assets in loans worth a total of $28,582,000, at an average interest rate of 21.63%.
This sum included $15,119,000 due in 2-5 years.
At the same date it had deposit liabilities (i.e. Money that investors have invested in FAI securities) 0f $18,542,000, at an average interest rate of 9.9%.
This included 6,468,000 on call, $7,514,000 due in 6-12 months, and $382,000 due in more than two years.
Piggies raid bank
“Raiding the piggy bank today means there is less in the piggy bank when it is needed.
“If the Super Fund is reduced in any way, then our future ability to pay for superannuation at existing levels is reduced. If it is cut then significantly higher taxes in future than we would otherwise have are inevitable, or alternatively reduced levels of superannuation in the future will be the certain result.
“There is no easy option. National makes pledges about super today, but that is meaningless because they are setting up super to be cut in the future. Future superannuation will not be paid for out of thin air. Whatever is taken out of the Fund today by way of ‘freezes’ or ‘reduced contributions’ is money not available to pay for super in the future.
“Cut the fund today, and the payout will be cut in future.
“National was repeatedly challenged to come clean on this before the election and it repeatedly gave an undertaking that superannuation would be unchanged.
"I specifically warned that National would use ‘changed circumstances’ as an excuse - but circumstances always change. Once again, just like it did last time in government, National is breaking its promise and finding a creative new way to break its promise not to cut super.”
Sentencing Bill won’t reduce crime.
He told Parliament the Government would be accountable if there were more violent killings after Government Ministers announced ‘Under this Bill there will be no more William Bells.’
“Ministers responsible for this Bill know it will not deliver the results they have promised,” Jim Anderton said.
The Bill’s Explanatory Note says any impact on prison numbers from this Bill “will not be felt for at least 10 years.” When the government announced it was getting tough with criminals it didn’t say that ‘getting tough’ meant doing nothing for ten years and a total of 70 extra prison beds after twenty years.
“New Zealand has a serious problem with violent crime. A recent survey showed only 43% of New Zealanders feel completely satisfied about their security and safety in their own home. New Zealanders are sick of crime and want to see criminals punished. That’s why when my colleague Matt Robson was corrections minister he started building more prisons than any corrections minister in history. So I support putting violent offenders away and my party helped put the prisons in place to do it.
“But this Bill does nothing to reduce violence. It doesn’t lock anyone up until they have already committed a serious violent offence. It doesn’t prevent crime.
“If you want to reduce crime, the solutions are much more complex. It starts with reducing at risk behaviour, it continues to getting tough with young hoons on their way to a life of crime. And it includes addressing the major risk factors in prisons, like alcohol and illiteracy - because when over 90 per cent of criminals have an alcohol or drug problem, then you aren’t going to rehabilitate them and turn them away from a life of crime unless you fix those.
“We owe it to New Zealanders to get tough on crime. This bill does not. This Bill will lead to perverse results. This Bill will not deliver National’s promise to significantly reduce crime.”
Background: Alternatives to the Sentencing Bill
International evidence shows that changing the rate of imprisonment doesn't affect the crime rate. For example, Finland cut the number of crimes punishable by imprisonment. The prison population fell. The crime rate didn't change. Some states of the US went the other way and put offenders away for much longer terms. The prison population began growing enormously. The crime rate didn't change.
The point is that the likelihood of going to prison doesn't seem to affect whether or not offenders go out and commit crimes. So if we want to reduce crime, then there must be something else we can do to keep the public safe.
Young people who are at risk of becoming serious adult offenders are recognisable with increasing certainty as newborns, as school entrants, as young offenders and as early adult offenders.
Each of the main risk factors increases the probability of anti-social behaviour by four to ten times. The key risk factors are where the mother is:
- Young;
- Has little education;
- Is from a disadvantaged family where she received little care or attention;
- Is substance dependent;
- Is socially isolated; and
- Has a number of male partners.
This background doesn't condemn a child to adult offending. But it increases the risk. If all of these factors appear together, the risk increases many hundreds of times.
So the first step is to reduce the number of highest risk births.
We can do that by working with young women who fit the profile and who are in the social welfare and justice systems.
They need sexual health services - teaching them about contraception and avoiding exploitation. Teaching young women about the advantages of delaying child bearing until they are settled, mature and suitable support is available. The cost for each intervention is as little as about $500. The benefit to cost ratio has been assessed as fifty to one.
We need to back that up with more support for high-risk new mothers.
Family Start programmes are a good example of the sort of assistance that can be provided. Each intervention costs about $3000. The benefit to cost ratio is assessed at twenty-five to one.
And then we can move to children as they enter school.
Teachers have long been able to identify many of the school entrants that they believe will end up as adult offenders. For example an intervention for a five year old who is aggressive and defiant is estimated to cost about $5000-$10,000 per case with a success rate of 70%. The same behaviour at the age of 25 years costs $30-40,000 and has a success rate of only 20%.
Earliest possible intervention works best and costs less.
Children who are at risk of progressing to serious adult offending get easier to identify between the ages of ten and fifteen.
That is when they begin their offending career. The single most powerful indicator of a trajectory to serious adult offending is early repeat offending as a child.
The obvious risk factors include failure at school, substance abuse, deviant friends and a family that has problems - poor supervision, criminal parents and child abuse.
The remedies that work are fairly simple:
- Re-entry to school, with some incentive for doing well;
- Better parenting
- A complete ban on alcohol and drug use
- New social activities and friends.
Working with these kids to prevent them moving on to serious adult offending would mean intervention with about two thousand kids a year, at a cost of about $7-15,000 each.
If one in four of them moves on to a lifetime of offending without the intervention, and one in three interventions actually work, then the benefit-cost ratio is about 36-1.
We want to increase use of Day Reporting Centres.
They give the kids job skills and life skills; and help to place them in jobs;
More than half of the teenagers who enter the adult justice system are re-convicted within one year of ending their sentence. About 80 or 90% are re-convicted within five years.
Dangerous teenage offenders who commit violent and sexual offences would still go to prison. For the others an offence will still result in the appropriate penalty.
Attendance at Day Reporting Centres would be compulsory five days a week for six months, and might be accompanied by night curfews and electronic monitoring. The units cost about $10-20,000 per offender to run, with a benefit to cost return of 37-1.
Corrections Department research indicates the measures in this package could eventually reduce imprisonable offending by around 17% a year.
The earlier you intervene, the more effective the result, but the harder it is to work out where the intervention is needed. The preventive measures we support are not quick fixes, but they are effective. They will take enormous co-ordination across a number of government agencies - Corrections, health, CYFS, education and others.
National asked to support vulnerable Christchurch tenants
Tenants have successfully opposed the rent increase in court, but the Christchurch city’s incumbent right-wing majority has now signalled it could again try to substantially increase rents or even abandon social housing altogether - leaving two and a half thousand vulnerable tenants with nowhere to live unless central government steps in.
Jim Anderton says the government should step in to help because it would have to pick up some of the costs of a rent increase anyway, including through increased Accommodation Supplement payments.
He today released a business case he sent to the previous finance minister Michael Cullen on behalf of Labour and Progressive Christchurch MPs after a thorough review of the Council’s plan to raise rents to help pay for refurbishment of the Council’s social housing.
The business case was sent by Jim Anderton and Labour MPs Ruth Dyson, Lianne Dalziel, Clayton Cosgrove and Tim Barnett. It sought a net government investment of $29 million over ten years. It would have reduced the rent increase from 24 per cent to ten per cent and allowed for the replacement of over three hundred homes and a continuous refurbishment programme.
He also released Treasury advice on the report that says it should be considered as part of Budget 2009. The Treasury response says there is no evidence that the Christchurch City Council ever approached the government itself to ask for the necessary funds.
Jim Anderton says the Council’s behaviour has created a huge problem, and it’s now up to the National government to help tenants out.
“Council never approached the government before it announced the rent increase. Its threats to abandon social housing are very worrying for some of the city’s most vulnerable residents.
“The net cost to the government of stepping in to help is not unreasonable if it is looked at in the context of a twenty year programme of investment to help very vulnerable people. Over that period, the net cost to the government of $29 million averages around $1.5 million per year.
“The National government has indicated it wants to shoulder some of the costs to local body ratepayers of providing social services, and it has also indicated a willingness to see housing expanded as a response to the global financial crisis. One obvious solution is to assist the council directly to make this investment.
“I hope Gerry Brownlee, as the senior Christchurch government MP, will take over the role of advocating within his government for vulnerable Christchurch city tenants, and I have sent the file on the work done so far to him,” Jim Anderton said.
Minimum Wage Should Rise
He says protecting the vulnerable is the highest priority for managing the global economic recession.
“The government will need to be reassured that increasing the minimum wage won’t cost jobs. And experience of the last nine years shows just that. Unemployment fell to record lows while the minimum wage was steadily increased by over 70% in nine years.
“Increasing the buying power of the lowest income workers makes sense because they are more likely than anyone to spend their income, keeping the money in circulation and boosting the whole economy at a time when it is needed.
“The employer groups calling for a cut in the minimum wage need to look at the Great Depression. The accumulated effect of everyone cutting back was to drive the economy into a deeper hole.
“The government is likely to make some changes to business tax, and depending on the design that could well be helpful. But it would send the wrong message to cut the minimum wage in real terms at the same time,” Jim Anderton said.
Nothing for agriculture, bag of peanuts to replace National’s largest ever increase in business tax.
And the changes, worth just $10.50 a week to a small business, again ignore agriculture when New Zealand’s main source of overseas income faces testing times.
“The first thing National did in office was to introduce the largest increase in tax paid by business in New Zealand’s history. It introduced a new tax on innovation, at a cost to our most promising industries of over a billion dollars in just three years. The peanut-sized tax policies announced today are worth less than half that.
“Across 220,000 small businesses, $480 million over four years is worth only $10.50 a week. That’s a big bag of peanuts.
“It is a quarter of the two billion dollars that would have been invested in our primary industries through the New Zealand Fast Forward fund if National had not jeopardised our economic future by axing it.
“There is nothing for agriculture in this package. Agriculture earns two thirds of New Zealand’s income overseas, and if we are going to weather the global economic crisis we need to strengthen our agricultural sector. The National Government didn’t mention agriculture in the Speech From the Throne and didn’t get a mention from the Prime Minister today. This is a government made up of money market dealers, not people who understand productive businesses that power the real economy.
“If John Key hadn’t spent his first months in office on holiday, he would have had the strength to reverse his failed tax on innovation. The measures announced today are useful, but nowhere near enough to deliver the strength and innovation our economy needs.”
Progressives to co-operate with Labour in coalition
Jim Anderton, who was agriculture minister, will be the Opposition coalition agriculture spokesperson on behalf of both parties.
"Before the election, we said we would only enter government in partnership with Labour. We couldn’t support National because we won’t work with parties that are likely to increase poverty, that try to sell publicly-owned strategic assets, that increase unemployment, or that fail to take care of our most vulnerable citizens.
"Progressives share with Labour a joint determination to ensure that National govern for no more than a single term, to stop it before it can do lasting damage to New Zealand and to refresh New Zealand’s interest in a progressive future.
"Our leadership group has met and we believe our long-term future is with our close partners in the Labour Party."
Jim Anderton said a priority for the Progresives beyond his coalition role would be to push better access to dental care.