I’ve been wondering what economic model National has been following with its Roads of National Significance, pouring billions of dollars into motorway projects that are low value even by the Government’s own numbers. After extensive research, I can reveal that they are following the Greek economic model. It turns out Greece went on a motorway building binge in the years leading up to its economic meltdown. It’s all here in my Estimates speech last night:
Apparently Brasil are doing the same and Clare Curran thinks it’s a great idea – something we should emulate
Thanks Phil, did the deputy speaker need to eat because of his health? Otherwise I’m confused, I thought you had 10 min? Was enjoying that. Can you talk about trains for us Jafa’s next time:)
Adam, I did get 10 min but it was 5 min either side of the dinner break. Here’s the second instalment: http://inthehouse.co.nz/node/14549
A common refrain from the Labour party when in power was how it had invested more in roading than any government in New Zealand’s history. Here’s a Labour party press release from 2007 entitled National comes to the (Labour) party on roading
To criticise National for following the “Greek economic model” by citing actions that Greece has taken to confront the fiscal crisis they face is disingenuous. Cutting public sector employees and proposed privatisation of loss-making state-owned Rail companies in Greece (which to my knowledge has not acutally taken place yet) are responses to the fiscal crisis in Greece not the policies that got them into the mess in the first place. More edifying would be to look at the actions by governments over decades that resulted in Greece’s dire financial troubles. Which included public spending that grew to over 50% of GDP and a public sector wage bill which almost doubled in real terms in 10 years.
Now, now QTR, you know full well that when Labour are in opposition even their own ideas, that are trumpeted as a panacea to all ills in the world, are bad ones when the Government implements the same.
QTR also knows that Labour built the roads- with money it had- while National is borrowing $300 mill a week- the Greek model.
AS well they selling state assets that produced an income -supposedly to pay for capital infrastructure- cough- but changing the law to allow roads to be built with borrowed money-the Key- English- Joyce model copied from Paraguay!
Oh and on top of that Labour paid back Nationals debt they left it after the years of stagnation 90-99.
The National Dunne Banks ‘Greek Farce’ must realize that with significant and forever increasing fuel cost that some of their much trumpeted highway plans are flights of fancy. Some are just early election promises that they know will never eventuate, but that the “DUNACTS’ are happy to put out there, knowing full well that the deceit is a winner meantime.
It is the same with the refusal to deal with alcohol abuse. They will wait for yet ‘more research’ – when the facts are everywhere. Foetal Alcohol Syndrome`s terrible scourge on our young, is already common, and rising rapidly, but Key and co care not a whit. Pathetic!
By cynically squeezing our motoring and alcohol fancies they selfishly and deceitfully plan their strategy for the next election
They truely lack integrity. We must hope that middle NZ wakes up to their guile, but sadly it is particularly difficult for a principled party to counter. Labour should spare no effort to expose the sham.
Many of the populace will probably fail to be receptive to the ‘good word’ about the excessive use by some of a favourite drug, and, that we will have no need for some of their ‘Roads for National`s Reelection’ .
ghostwhowalks – I am not going to defend the economic record of the National government nor would I hold up the fifth Labour government as a model of fiscal restraint.
The economic and fiscal position of any country is not solely due to the single government in power at that time, but is a result of the policies and actions of many governments over decades. Too much childish and inane reasoning in this nation’s political discourse comes from not duly recognizing that simple fact. No one would argue that the reforms of the fourth Labour government did not have impact upon the economic performance of the country and fiscal position of the government when the fifth Labour government was in power. Just as no one would blame the situation in Greece on either PASOK or New Democracy alone, but recognize that policies dating back decades from both parties, including many public sector workers getting guaranteed promotions, immunity from dismissal, and early retirement ages, have contributed to the Greek government’s current fiscal crisis. How much of the current fiscal deficit here is due to the excessive government spending that occurred post-2004 (spending which neatly coincided with a decline in the tradeable goods sector and a slow down in GDP growth)? What the economy would have been like if Labour weren’t in power in the first decade of this century or if National were not in power today are counterfactuals we cannot test.
Ghostwhowalks conveniently forgets that the reason the government is borrowing $300m a week is that the Labour government left this government with a decade of deficits. Phil, greek-o-nomics is not building roads. It is building roads with money you don’t have. The Roads of National Significance are paid for by road users. Greek-o-nomics is promising to spend billions on things you can’t pay for. Just like Labour’s economic policy.
@ Whodunnit.. what are you on about?
Labour left the Nats with almost balanced govt books. Key-the esteemed(?) investment banker and currency trader – who had irresponsibly criticised Labour for not borrowing for tax cuts! HE urged the Clarke govt to go into deficit! Of course Key,when he assumed power, very stupidly, in the face of a recession, did just that mainly for the wealthy and consequently gave the deficit a huge initial and ongoing boost. Totally irresponsible behavior! Key and English were able to give this gift to the wealthy because labour had run such a tight ship. Non govt debt was large and rising, but that does not fund roads.
NZ, despite Key and co, is still in a reasonably comfortable (BUT rapidly worsening!) position compared to many other developed nations.
Unnecessary roads are the last thing we need. Nationals preoccupation with them is an early election con, and I very much doubt they really intend to actually build most of them, unless they are truely irresponsible and want confidence in our economy to be downgraded.
Key and English`s pretence of economic competence has fooled the public so far (As said they have managed largely on the back of Michael Cullen`s previous discipline), but their refusal to make sensible future plans does not give confidence. Let us hope that the populace do not continue to be lured into a fiscal cave by the Pied Piper of Henderson
whodunnit forgets about the tax cuts National promised which were rushed in and then partly cancelled , the GST increase which didnt cover all the next tax cuts .
Tax cuts = decade of deficits.
Even ‘balance the books Bill’ cant even keep to his own timetable he sets every year or so.
Every budget since 2008 hasnt met Nationals own targets in spite of spending more than labour ever did.
whodunnit must be be Bills thoughts every 6 months as he has to move his goalposts yet again, as he doesnt take any responsibility for his own actions ( just like you)
Paul and ghost, read the 2008 pre-election economic and fiscal update, which was published before National came into government. It forecast neverending deficits. That is not a “balanced book”. Ghost, you are either wrong or lying re tax cuts. Tax cuts didn’t come in until after National came into government. And they were revenue-neutral.
We are all heading south with this lot. Blame everybody else no problem.
@whodunnit
Labour left state books in excellent order – comparatively among the best in the OECD! National came to power and chose to keep many Labour initiatives(THEY could have changed them?).THEN, in a very clearly worsening economic situation(Actually it was clearly on the horizon to any half-baked investment banker BEFORE the election), it then gave large tax cuts to the wealthy and little to the rest but obscured it all with the smoke, mirrors, and GST trick. WE were duped! Tax cuts revenue neutral? are you sure? – apart from some fairly minor property tax changes we are paying with increased deficits. Of course the GST increase is disproportionately paid by the less well off.
Paul B, again go read the 2008 PREFU issued by Treasury. It forecasts neverending deficits. This was published while Labour was still in Government.
The GST changes are not paid “disproportionately by the less well off”. All earners were compensated by the change in GST by lower income tax threshholds. Nobody is worse off because of the GST changes.