Lies or politics

Labour has been tricky about another of its policy releases.

Last week it announced its veteran’s policy which would extend the Veteran’s pension to all veterans, whether or not they were impaired.

That sounds very generous but Matthew Beveridge covers an exchange on Twitter between Labour MP Clare Curran and Graeme Edgeler which shows that yet again Labour hasn’t given the full story.

The veteran’s pension is the same as national superannuation so week to week war veterans will be no better off with Labour’s policy.

Some would call that tricky, some would call it lying by omission.

Either way it’s just like the bumbled announcement of the baby bribe which omitted to let people know that it would kick in only after paid parental leave finished.

Then there’s getting facts wrong which is at best a very poor reflection on politics:

The Labour Party’s attempts to talk down New Zealand’s economic performance have hit a new low this weekend with David Parker making at least nine factually incorrect statements in one short interview, Associate Finance Minister Steven Joyce says.

In the interview, with TV3’s The Nation programme, Parker made assertions about low export prices, a poor balance of trade, job losses in the export sector, New Zealand’s current account deficit,  high interest rates, a lack of business investment, 40 per cent house price increases, no tax on housing speculators, and low levels of house building.

Mr Joyce says all of Mr Parker’s assertions in relation to these nine things are incorrect.

“This is an appalling number of errors for someone who would seek to run New Zealand’s economy. This number of errors surely can’t have been made by accident,” Mr Joyce says.

“Mr Parker’s attempts to describe the New Zealand economy sound much more like the situation this government inherited from Labour in 2008 than anything we are seeing in 2014.

“He must have been thinking of 2008 when he talked of ridiculously high interest rates, a poor balance of trade, and the poor performance of the export sector. All were pretty sick back then and all are in much better shape today as a result of this government’s careful stewardship of the economy.”

Mr Joyce says there are two possible conclusions. “Either Labour is deliberately fudging the facts to fabricate the need for their radical economic policy prescription, or they have truly woken up in 2014 for the election without observing anything that has happened in the last five years. The latter would at least fit their regular denials of the impacts of the GFC and the Canterbury earthquakes.

“New Zealanders know that this country today is doing better than most other developed countries, and in 2008 we were doing worse than most, in fact entering our own recession before the Global Financial Crisis,” Mr Joyce says.

“It might be an idea for Labour to look at the steady improvements that are occurring in the New Zealand economy before they start trying to write up their policy ideas.”

Schedule of inaccuracies in David Parker interview on The Nation – April 26 2014

1. “Export prices are going down”

Export prices in fact rose 13.8 per cent in the year to December 2013 (Statistics New Zealand).

The ANZ NZD Commodity Price Index rose 11.6 per cent in the year to March 2014 and is just 6 per cent below its all-time March 2011 peak.

2.  “We are not covering the cost of our imports (and interest)”

Statistics New Zealand reported a merchandise trade surplus for New Zealand in the year to February 2014 of $649 million (1.3 per cent of exports).

January and February’s merchandise trade surpluses were the highest ever for their respective months.

3.  “We are losing jobs in the export sector”

The number of people employed in the agriculture, forestry, fisheries, mining and manufacturing sectors has increased by 16,100 in the last twelve months. 

Total New Zealand employment increased by 66,000 in the last year or 3.0 per cent in one year. This is the fastest employment growth since December 2006. (Statistics New Zealand Household Labour Force Survey December 2013).

4. “This challenge of getting New Zealand’s current account deficit under control”

New Zealand’s balance of payments deficit is currently 3.4 per cent and has averaged only 3.1 per cent over the last four years.

Under Labour the Balance of Payments peaked at 7.9 per cent in December quarter 2008 and averaged 7 per cent over their last four years.

New Zealand’s Net International Investment Position is currently down to 67 per cent of GDP after peaking at 85.9 per cent in March 2009.

5. “Ridiculously high interest rates”

Interest rates have just edged up above 50-year lows.

Floating mortgage interest rates are currently between 6 and 6.25 per cent. They peaked at 10.9 per cent between May and August 2008.

6. “Exporters…. Aren’t willing to invest in plant”

Investment in plant, machinery and equipment by New Zealand companies was up 7.5 per cent in the December quarter and 3 per cent for the year. Investment in plant, machinery and equipment is now at its highest level ever (Statistics New Zealand – December quarter 2013 GDP release).

Just yesterday, long term New Zealand forestry processor Oji Limited announced a $1 billion investment to purchase Carter Holt Harvey Processing assets.

7. “House prices are up 40 per cent under them”

House prices under this government have increased at around 5.7 per cent per annum, compared to 10.7 per cent per annum under Labour, according to REINZ figures. Total house price increases over the period is 30 per cent, not the 40 per cent Mr Parker claims. That compares with a 96 per cent increase in house prices under Labour.

8.  “You need to tax the speculators. They are not taxing speculators”

Taxpayers who buy and sell houses for income are currently taxed at their personal income tax rate on their capital income.

9.  “They are not building any more houses”

The actual trend for the number of new dwellings, including apartments, is up 95 per cent from the series minimum in March 2011.

The trend is at its highest level since October 2007 (Statistics New Zealand February 2014 Building Consents Release).

Getting these facts wrong by accident is incompetence.

Getting them wrong deliberately is worse.

Either way, Labour is trying to talk down the economy which is doing well in spite of the GFC and the earthquakes and because of good management by the National-led government.

That the economy is growing doesn’t mean everyone is doing well.

But the chances of improvement for everyone are far greater under this government than they would have been had Labour been in power and continued with the tax and spend policies which put the country into recession before the GFC hit the rest of the world.

The chances of improvement will be far greater with another National-led government than with the alternative prescription a Labour Green government would impose on us.

 

11 Responses to Lies or politics

  1. petermsalmon says:

    Where in the MSM though can I find Parker’ s “facts” questioned. Yet again Labour lies go unchallenged it would seem.

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  2. Andrei says:

    “Lies or Politics”

    Politics is synonymous with lies and deceit.

    Currently National is just a bit better at lying than Labour – that’s all.

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  3. Dave Kennedy says:

    Peter, I think you will find that the MSM is unquestioning with much that it is presented with and that applies to National too. I notice that they accept the Government’s stats like the average wage is up when actually the median wage has dropped. And where is the scrutiny regarding the level of poverty in NZ? In the Southland Times (over one week) there were articles about local agencies reporting increasing numbers of families (in the 1000,s) asking for support, growing homelessness, and double the numbers of elderly needing support. This is in one of the more successful provincial economies with an unemployment level of 4.9%. I don’t like the way this government supports a growing economy that doesn’t share the benefits.

    http://localbodies-bsprout.blogspot.co.nz/2014/04/remembering-dead-and-thinking-of-living.html

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  4. JC says:

    “I notice that they accept the Government’s stats like the average wage is up when actually the median wage has dropped. ”

    Nope.

    file:///C:/Users/John/Downloads/NZIncomeSurveyJun13qtrHOTP%20(1).pdf

    I note Southland had the highest increase in median weekly wages at $86.. up 11.9%.

    JC

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  5. Dave Kennedy says:

    A good response, JC, I will take your word for it, even if I didn’t find the link. In fact the the median wage has actually gone up 4.8% over the last year which is good so what I claimed wasn’t correct in that context.

    I did a bit of research, however, and found that when you look at the rate of inflation over the last five years ( http://www.rbnz.govt.nz/monetary_policy/inflation_calculator/ )
    it comes out at 10% and the increase in the median wage from Statistics NZ across the same period is about the same.

    However at the same time rental cost have skyrocketed
    http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10861290

    Power prices have increased well above the CPI
    http://www.consumer.org.nz/reports/electricity-prices/rising-prices

    And food costs have increased http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10781924

    So for those on the median income or below would have found their purchasing power for basic living costs have dropped substantially.

    JC, I stand corrected in one respect but things are dire for at least 50% of families, who are largely going backwards. And this was reflected in the Southland Times articles that I linked to in my post.

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  6. TraceyS says:

    “I did a bit of research, however, and found that when you look at the rate of inflation over the last five it comes out at 10% and the increase in the median wage from Statistics NZ across the same period is about the same”

    Dave, aren’t you worried about your Labour coalition partner’s plans to loosen up things around inflation? Do you pay attention to what David Parker says? I do.

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  7. TraceyS says:

    Dave, that article re. food costs is old (2012), like your median wage data. Latest info shows that certain desirable food categories have decreased significantly in price (admittedly others have risen). No time to provide a link but will later. Was looking at this issue yesterday.

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  8. TraceyS says:

    Hey Dave, what about petrol prices over the last 10 years? You forgot that! (oh yeah right, petrol price increases are cool, eh 😦 ). THAT is on the green agenda so its OK!

    Hey do you think petrol increases might possibly (I know it’s a long shot), but could that somehow affect food prices?

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  9. Willdwan says:

    Ouch!

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  10. Mr E says:

    New Zealand Income Survey: June 2013 quarter

    Overview

    Between the June 2012 and June 2013 quarters:
    Median weekly income from wages and salaries for those receiving income from this source increased by $38 (4.8 percent) to $844. This was partly due to the workforce’s changing age structure.
    Median hourly earnings increased by 72 cents (3.5 percent) to $21.58.
    Median weekly income for all people from all sources increased by $15 (2.7 percent) to $575, although this increase was not statistically significant. The increase would have been higher if not for a greater proportion of people receiving zero income in the June 2013 quarter.

    http://www.stats.govt.nz/browse_for_stats/income-and-work/Income/NZIncomeSurvey_HOTPJun13qtr/Commentary.aspx

    Sounds like you’re not the only David that needs to visit the Statistics NZ website.

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  11. JC says:

    Bottom line is you can go through nearly every price increase and find its less, sometimes half the size of increases under the Labour coalition. Power 50% less under the Nats, housing 25% less, inflation half of Labour, Current Account Deficit less than half Labour and co and so on.

    Of course the sob stories have quintupled under National and in too many cases have been found to be beatups by Labour and especially Green activists disguising their affiliations to try and get a free hit on the Nats.

    Its been most heartening to find in the comments of these newspaper articles the general public is awake, using Google and exposing these flim flam merchants and their mainstream media enablers.

    Never, never, never, never trust a hardluck or story of injustice or poverty in the media.. there’s often a Green/Lab activist in behind it or a so called victim with a Facebook or Twitter profile that gives the lie to it.

    These people never seem to understand they don’t have a monopoly on the Internet or think the rest of the country is too dumb to use it.

    JC

    Like

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