An expensive week

18/12/2020

It’s been a very expensive week for the taxpayer.

There’s the $333,641.70 Parliamentary Services paid for Trevor Mallard’s loose lips – and that’s likely to increase once an employment dispute is settled.

That was followed by the steep increase to the minimum wage, which might add to costs of the lowest paid in the public service and will add costs to all businesses.

As Lindsay Mitchell pointed out it will also increase the cost of benefits.

. . . Down the track it will lift the incomes of many more now that beneficiary rates  are linked to wage inflation. . . 

. . .It makes life harder for businesses and there is no increased certainty about supply of labour if benefit payment rates are competing. Earlier Henry Cooke calculated, “…benefits will go up between $27 and $46 a week by April 2023 – between $10 and $17 a week higher than they would under the old formula.”

To maintain relativity employers will be pressured to raise the wages of those above the minimum wage and are likely to pass their increased costs along to customers and nobody will be any the better for it.

It’s going to be difficult for the Reserve Bank to keep a lid on inflation. . . .

Inflation will negate any benefit from wage increases.

Then there’s the $29.9m paid to Fletcher Building for the land it was to develop for housing at Ihumātao.

It’s not just this payment, it’s the damage it’s done to property rights and the risk it poses to Treaty settlements:

National’s finance spokesman, Michael Woodhouse, said taxpayers were paying for the Government’s bungling of a land dispute.

“Taxpayers aren’t a bank to be called upon to clean up the Government’s poor decisions, particularly when it is meddling in private property rights,” Woodhouse said.

“The Prime minister should never have involved herself in the Ihumātao dispute and taxpayers shouldn’t bailing her out now.

“The ramifications of this Crown deal go much further than the lost opportunity of building houses immediately. It will call all full and final Treaty settlements into question and set a dangerous precedent for other land occupations, like the one at Wellington’s Shelly Bay.

“More than 20,000 Kiwi families are on the waiting list for a home this Christmas. The Government should not be spending $30 million on stopping 480 much-needed houses from being built right now.” . . 

The costs aren’t just financial.

The man defamed by Mallard lost his job and now has health problems.

The steep increase in the minimum wage will cost jobs and could be the last straw for businesses already in a precarious state.

And the political interference at Ihumātao has cost 480 desperately needed houses.

This is a very expensive start to the new government’s term.


Property rights matter to all

24/09/2019

Who’s standing up for property rights?

The Government’s handling of Ihumātao has shown it has no respect for property rights, Leader of the Opposition Simon Bridges says. 

“It’s been eight weeks since the Prime Minister told Fletcher Buildings it had to stop developing much needed houses on land that it owns. Since then, Fletchers has not been invited to be part of negotiations. It’s had to sit on the side-line as others have tried to take away its rights.

“It has set an appalling precedent for a Prime Minister to insert herself into the business of a private company and prevent it from building 480 much needed houses.

Does the Prime Minister even have the right to tell a company it can’t go about its lawful business on its own land?

“No wonder business confidence has plummeted when the Prime Minister shows such blatant disregard for businesses and property rights.

“It doesn’t matter where in the world the Prime Minister is, it’s time for her to set the record straight. She needs to tell the protestors to go home, make it clear that the Government won’t be spending taxpayers’ dollars on buying the land and rule out any sort of deal.

“This matter doesn’t concern her. It’s time to butt out and give Fletchers back the land they legally own.”

Jacinda Ardern’s interference has done nothing to solve the problem. It’s made it worse.

If the government gives, or loans, the Iwi anything at all towards purchasing the land, it will open up the opportunity for every other iwi to renegotiate what were supposed to be full and final Treaty settlements.

Worse than that, it has sent a very clear message it doesn’t respect property rights which are a fundamental building block of democracy.

Private property was exempt from treaty settlements for a very good reason. The wrongs treaty settlements were to compensate for were started when Maori property rights were ignored in the past and could not be righted by infringing other people’s, including those of Maori, in the present and future.

Property rights matter for everyone and it is well past the time when the Prime Minister’s interference in Fletchers’ right to exercise theirs must stop.


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