Quote of the week

“New Zealand as a whole needs to save more, spend less and reduce its heavy reliance on foreign debt – and the Government is a crucial player in this,” Mr English says. “By playing its part in lifting national savings, this Government will help to keep interest rates low and build faster, ongoing economic growth.”

Bill English shows National realises what Labour doesn’t – government must be part of the solution and not continue to add to the problem.

29 Responses to Quote of the week

  1. robertguyton says:

    Bomber asks the more pointed question at Tumeke!

    “And what about this investment you intend to make from this privatization? Into more irrigation in the South Island? You more mean infrastructure investment into Dairy who continue to steal and pollute our diminishing water resources in the South Island?

    That’s what we are selling our assets off for? South Island Dairy Industry interests? Shouldn’t you be a little more honest? Surely allowing Bill English to have a dirty lignite production facility in his own electorate to power his Brother’s Federated Farmer’s industry cheaply was payment enough for services to be rendered?


  2. robertguyton says:

    ” foreign debt – and the Government is a crucial player in this,” Mr English says.”

    Indeed Bill. You are borrowing over $300 million a week, aren’t you??


  3. gravedodger says:

    Your slip is showing robert, a substantial portion of the 300 million is rolling over the debt that your socialist mates Clarke, Cullen,Cunliffe and Co splurged on non productive government service and welfare expansion as part of their re-election strategy with the full support of your economic neanderthal mates in the GP.


  4. JC says:

    You mean Bomber asks the stupid questions so he can rant off topic.

    Its quite clearly stated what the proceeds are to be used for:

    (Key) “We also expect to acquire $33 billion of net new assets over the next five years, including new schools, operating theatres, ultra-fast broadband and major investments in our state highways and other transport infrastructure. That is a considerable spend by any reckoning.

    At the margin there are two ways we can acquire new assets – either we can borrow more or we can change the mix of assets we own.”

    As for borrowing $300 a week.. I agree, we need to can WFF, student loans, the $1000 incentive to join Kiwisaver and a few other unaffordable vanity projects.



  5. robertguyton says:

    But it’s Bill and John who are doing the borrowing. They’ve been in power for years now and they are responsible for the decisions that they are making.


  6. smttc says:

    JC says “As for borrowing $300 a week.. I agree, we need to can WFF, student loans, the $1000 incentive to join Kiwisaver and a few other unaffordable vanity projects.”

    Quite right JC. Unfortunately the sheeple who elect governments will not be voting for that any time soon.


  7. Sally says:

    I thought it was $350M a week. Does anybody really know what the figure is?


  8. Sally says:

    Have just read one of the best articles so far on Key’s spin re asset sales at http://www.interest.co.nz/opinion/opinion-selwyn-pellett-argues-john-keys-smile-and-wave-asset-sales-wont-cut-mustard

    “Our Crown debt is, by global standards, still low. Lumping these two types of debts together, as the Prime Minster is doing to attempt to justify this policy, is at best mischievous and at worst dishonest.”


  9. gravedodger says:

    Sally, does it really matter, it is a few extra bags of chips per week as far as the economic illiterates understand it and sadly they are free to vote Mr Goff back in to government with his billion or so EXTRA spending on his latest manifestation of GOOFYNOMICS come November because they cannot grasp the difference between consumption spending and capital spending.


  10. smttc says:

    Sally, that isn’t really the issue. The point is does the government raise more debt for future expenditure including assets purchases and risk a credit rating downgrade or partially sell down some existing assets while retaining ultimate control. Avoiding future increases in expenditure altogether is not an option.


  11. robertguyton says:

    Sally – National fears a credit downgrade and wants to sell assets to avoid the shame. In order to ‘gain the mandate’ from us, they are trying to frighten us with scary stories of unsustainable debt which they would have us believe is all our fault. However, National are the ones borrowing excessively and now trying to sheet that responsibility to us. Those of us who have borrowed excessively, will pay for that individually, just as Key, English and co will pay for their excessive borrowing when it comes to the vote.


  12. robertguyton says:

    Slogan-laced attacks like those of GraveDodger here and Farrar on Kiwiblog show that they are rattled by the way the situation is swinging. Their constant denigration (GOOFY etc.) are signs that their own ground is shifting in a disquieting way.


  13. Sally says:

    Thank you Robert. What you have written in your last two posts sums up my feelings. I just couldn’t put the words together.

    The spin, spin from our MP’s is a disgrace. They conveniently forget that their obligations not only include duties of good faith but they also have a duty to be skilled and competent in managing the peoples’ interests.


  14. Fredinthegrass says:

    And you say they are not, Sally. Hp has a word for you and Rg – “tendentious”.
    Rg, don’t get your hopes up. The left is woefully inadequate in providing substance to the rants of the last few days.
    Sally, since when have any politicians been dutiful other than to their ‘own’ causes and interests. At least this lot have a broader view of the picture, and have the sense to take a longer view of the issues New Zealand faces.


  15. scrubone says:

    However, National are the ones borrowing excessively and now trying to sheet that responsibility to us.

    Yes, we get all the responsibility and none of the benefits like Working for Families… no, that’s not right.

    Or maybe the National government is trying to say that if we get stuff, we have to pay for it somehow. Selling assets isn’t ideal, but if it gets governmetn finances over the “hump” it could be a good idea. Assets can then be rebuilt after taxation picks up again.

    Or they can cut some of Labour’s spending. But the left want to have their cake and eat it too. Hence the idea expressed above about the “shame” of a downgrade, when the actual problem is a very real expense, not an emotion.


  16. robertguyton says:

    Fredinthegrass – it’s too late!
    My hopes are up!
    What would a lawn bowl be without bias?
    How would we drive on a camber-less road?
    Without the earth’s tilt to the left, how would our seasons fare?
    ‘This lot’ has a broader view than ‘the other lot’?
    Mebee so but they aren’t the only players.
    It’s a matter of combinations these days.
    Hard to accept, but true!


  17. homepaddock says:

    Apropos of bias, Robert, how reliable is the author of the link you gave?

    Check this link: http://whaleoil.gotcha.co.nz/2011/01/28/more-left-wing-hypocrisy/


  18. robertguyton says:

    I gave a link?

    Apropos of bias, Ele, how reliable is the author of the link you gave?




  19. gravedodger says:

    Just home again from “happy hour”(s) at the Grand, probably (hopefully) somewhere comfortably between 0.8 and 0.5 having met a new aquaintence, ex dairy farmer who wonders what could retirement offer him and totally ignorant of his wife’s wishes wondering if there is something after full on farming that Mrs GD has found very satisfying for her Psyche and self who has accepted by doing many things for others for the reward of friendship and genuine human contact after nearly 50 years at the end of a country road very very satisfying and rewarding.
    Also recontacted the charming daughter of an old, more than just a friend from the distant past and all the world seems so “at ease”, ah the blessings of healthy retirement.
    Scrubone and fredinthegrass seem to have understood where NZ inc is at and the choices available but then along comes jones, I mean robert whose ideology seems to blind him to the economic reality that regularly escapes the left when borrowing to buy groceries will eventually demonstrate the folly to even the ignorant.
    Very literary robert but just a little esoteric after a jug of ale and a lovley meatlovers pizza from the “Tree Fellers Arms”


  20. Tony says:

    No.!!!! Kiwi’s need to get real. And until they do they will still borrow more and pay more. I am 46 and have recently learned that buying something I can’t afford by getting credit is not a good idea. Even though you may be getting free credit and time payments, you still have to pay for it. It is always better to buy it when you have the money. This is the way Nz is going. You must take control of yourself before you control others.


  21. robertguyton says:

    GD – I’ll cut to the chase then.
    WHO has been borrowing these exorbitant amounts of money over the past couple of years?
    And John.
    Caught out by the liklihood of a downgrade, WHO is responsible for the situation we find ourselves in
    (Not us! Someone else! Those guys over there!)
    Choosing to solve the problem by selling off bits of the things we as a country own and have paid for for years and years – disgusting!
    There ya go!


  22. adam2314 says:

    To Tony.

    You have hit the nail on the head. It is private spending that has put NZ in the same class as the PIGS nations. We owe 85% of our GDP..

    Having said that.. NZ can not continue borrowing $256 mill BE’s words in November. Now $300 mill every week, to keep The Me..Me..Me society going..

    Selling assets is not going to stop this society from holding their hands out..

    Government spending must be cut.. Welfare in all its forms is an obvious target..


  23. robertguyton says:

    Tony and adam are correct in essense.
    For GD – to simplify further for the sake of the combination of the jug of ale and the effects of age and the lateness of the hour –

    Asset sales will be to Key will be what mining the national parks was to Brownlee.


  24. robertguyton says:

    “Yes, you can sell your house to pay off the mortgage, then you’ll be mortgage-free. But you’ll also be minus a house.”



  25. gravedodger says:

    Then when one is short of a house they just line up at Housing Corp and the wonderful ever present Government will make that good at “subsidised” rent levels, particularly if you have a large tribe of dependents and no matter that you used to own a house before profligate behaviour such as drug abuse, alcohol abuse, gambling abuse or whatever as that wasn’t your fault but the fault of a rapacious dealer,publican or other easy target, who caused the crisis in balance of payments leading to sale of the house. BUT never never thee.
    Every single citizen is responsible for our plight, admittedly aided and abetted by successive politicians attempting to purchase electoral support with compulsorily acquired funds without regard for the consequences.
    Until we as a nation accept the basic economic theory that unless borrowing will increase income over and above the cost of that borrowing it is only going to diminish the balance of payments. A 48 inch flat screen in a lounge/family room will never in its short life “earn” a single cent but it will create a bigger hole in the balance of payments.


  26. Sally says:

    This government has heaped new costs on the economy, ETS, ACC, GST increases and the like (just as past governments have). And still have to borrow $42.85M per day.

    Key & English should be nervous with what has happened in Ireland, Greece and Iceland – but selling off state assets is a ‘oncer’ and will not fix the problem.

    The fact is – Government is far too big for our economy and is relentlessly soaking up precious non-productive capital.


  27. Peter says:

    Funny how Bill English seems to blame Kiwi’s lack of savings.Maybe the real blame lies closer to home. Could it not be the heavy punitive demands & financial impositions of the various tiers of NZ governance. For years these people have behaved as though the nations pockets were bottomless.Now the State has to borrow up to $350 million a week because under present rules insufficient taxes are generated & paid. Scraping the bottom of the barrel. Clearly, State salaries, entitlements etc. must be cut simply because NZ cannot afford them.
    Has Bill English given any indication how he intends to run NZ back into the black & prosperty, and at the same time repay the debts of the past, without killing the economy? Or is it out of control? Does English or Key even care?
    Clearly, crisis is not far off. When will we start planting the bananas?


  28. Sally says:

    From this mornings ODT Editorial –
    “some analysts believe the most value that could be raised by a partial sell-off of all the assets named by Mr Key would be about $8 billion, not much more than a drop in the bucket of projected new government spending, let alone its spending of $70 billion this year alone, even if it was realised all at once – a highly unlikely prospect.”

    “…but perhaps it should first be looking much more ruthlessly at that $30 billion of proposed new spending in the next five years.”

    Confirms my earlier post about Key & English’ talk being spin.


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