In the blue corner
The ongoing cost-of-living crisis has been putting pressure on struggling New Zealanders, but the government has taken little action and to date has made it worse.
Undoubtedly, Cyclone Gabrielle and the flooding in the North Island have caused extensive damage and emotional distress for those impacted. As we face the multibillion-dollar reconstruction, we must have prudent and responsible fiscal management.
Unfortunately, I have little confidence that this government can provide that.
Its track record of wasteful spending and lack of delivery is unacceptable. Government spending is running at 35% of GDP, higher than it’s been in 17 years, and I struggle to see what material outcomes we have received as a result.
The tax burden on New Zealanders has increased significantly due to fiscal drag as tax brackets have not been adjusted while incomes have risen.
Tax revenue has increased an eyewatering $43 billion in just five years, helped along by rampant inflation, and a series of new taxes. That extra tax taken is equivalent to $17,500 per household.
And yet the new prime minister has still not ruled out forcing further taxes on Kiwis during what is a difficult time for many. I have always been an advocate for people keeping more of what they earn because they know how to spend their money better than any government does.
This country is being crushed by high inflation, the cost of living and soaring interest rates. The latest figures from Centrix confirm that thousands more New Zealanders are falling into debt trouble, with 430,000 Kiwis now behind on debt repayments, including mortgages, credit cards and ‘‘buy now, pay later’’ accounts.
The Government must address wasteful spending such as the projected $30b on Auckland light rail, $317 million on the TVNZ/RNZ merger, which has now been cancelled, and $16m for consultants on the deeply unpopular three waters reform. This is just a small snippet of the billions of dollars that have gone to waste.
The best way to achieve outcomes for New Zealanders is not throwing money away at pet projects, but instead supporting New Zealand households and businesses to grow and reach their potential.
The current government would do well to remember the famous words of JeanBaptiste Colbert, finance minister for King Louis XIV, ‘‘the art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing.’’