Red Alert

Economic Development

Posted by on February 28th, 2013

David Shearer has been clear from the start that he wants a clean, green, diversified economy – to ensure New Zealand’s future prosperity.

With my appointment as Economic Development Spokeperson comes a big challenge. We need to present a credible plan to get to a prosperous diversified economy.  I’m excited about this opportunity.

Steven Joyce spent a year with the huge bureaucratic resources of MoBIE and failed to map anything but a managed decline. His ‘Business Growth Agenda’ finalised yesterday has proven little more that a year long coms plan. It’s been a year of existing policy re-heats with a few meek ideas thrown in for colour.

But Joyce is vulnerable. Because the facts are drowning out his spin.

Last year 30,000 jobs were lost.  Unemployment is pushing 7%.  1000+ Kiwis are leaving for Australia permanently every week.

No amount of spin can hide the fact that the Government has no plan for sustainable economic growth. Selling off our best revenue-generating assets is National’s big idea.  Treasury says it will set back the Government coffers by about $100m/year. Other than that, they intend things to continue as they are.

I’ve always maintained that the market makes an excellent servant and a terrible master. And this Government is failing to control the market. It is failing to deliver jobs. Right now so many hard-working New Zealanders are being treated like its slaves, forced to be grateful for any scraps that fall from the table. A full 40% of Kiwis earn less than a living wage.

Labour already has chunky policy announced that will lead to economic growth, jobs and an export-led recovery. In particular we want a pro-growth capital gains tax, Research and Develoment Tax Credits, Universal Kiwisaver, Pro-Kiwi procurement policy and tools for the Reserve Bank that will allow it to do what overseas countries are doing to assist their exporters.  These changes will give the economy a shot in the arm and create jobs.

There is more to explore.  Sector-specific incentives for growth beg consideration, as do the implications of Labour’s affordable and healthy housing announcements.  They will create jobs as will our commitment to creating more apprenticeships.  Labour wants a market that generates jobs, living wages and future prosperity for our country.

We need change, because the old solutions have been shown to fail. Right now, the market and it’s hands-off disciple Mr Joyce are not working in the interest of New Zealanders.

33 Responses to “Economic Development”

  1. jennifer says:

    Good luck with that, David. No, seriously. If you can convince the egotists and the Tories in the Gallery to even listen to you, that will be a huge step forward. If you can get them to understand what you are saying, it will be a breakthrough. And if you can get them to run it so the public can get a chance to figure it out too, that would be a miracle. Which I understand you know a thing or two about?

  2. PlanetOrphan says:

    We should be doing interest free government loans for business startup, which gets written off if the company fails.
    i.e it’s in our interests to help these companies get off the ground.

  3. Matt says:

    The export-led growth plan, pity the UK, EU, & the US are all undermining their economies. So who’s going to pay for said goods produced? And considering they all believe the same rubbish mantra there’s going to be a huge glut of exports that no one can buy!

    Just say it, you want to de-value the currency (against which currency), do you want a strong or weak currency? Do you know? Bill English was correct when he said that would decrease all NZs purchasing power, consequently undermining NZs standards of living… Bah!

    Is that want Labour wants?

    @PlanetOrphan – start-ups usually have over a 50% failure rate, so pretty much throwing money away.

  4. PlanetOrphan says:

    @Matt , better than giving it to the Banks M8!

  5. Matt says:

    To be fair, no money has gone to NZ banks. And I would have liked to have seen quicker action on the finance firms ie. seizing property, protecting investors, and prosecuting fraud. But, what’s done is done I guess…

  6. PlanetOrphan says:

    “To be fair, no money has gone to NZ banks”

    So how do people fund their startups at the moment ?
    And why do 50% of all business startups fail ?

  7. Matt says:

    Banks create credit after analysing credit-risk. That’s not money going to banks, that’s what they do. In fact, it’s the hallmark of capitalism.

  8. PlanetOrphan says:

    My point exaclty how does the little person start his/her own business ?

    Good old John Key would be happy for ya to ask him for the money @ 20% interest and he’d damn well know you where going to fail.

  9. Matt says:

    They put together a business plan, save some money, and try and convince a bank to loan them x amount of $. If your idea is poor, you will fail. If not, you’re off.

  10. PlanetOrphan says:

    And the Bank “Prints” money to do it, charges interest and drives them under. Leaving them in debt for ever because those banks are never going to write off their “Printed” money are they ?

    The bank never loses does it ? , money for nothing isn’t it ?

    Give us a “Real” chance and a “Real” future is what I’m saying.

  11. Matt says:

    No, it creates temporary credit which is then repaid with interest. Interest + fees are bank income. It can fail if it runs poor credit-management. And, banks are public utilities they come under govt jurisdiction.

    Last statement. Going a wee bit of topic here.

  12. PlanetOrphan says:

    Not off topic in the slightest …
    What r ya Doing to improve NZs’ economic climate ?
    I.E “A Real Future” for our kids as well as ourselves

  13. Matt says:

    We’re talking about banks. They are only a conduit for loans and bank services. What are you suggesting? Again, throwing money at something that research shows has a 50% fail rate is rather silly…

    Whatever the future, it will still be “real”.

  14. PlanetOrphan says:

    We are talking about business incentives and support.
    You dragged the Banking institutions into it, you a banker Matt?

  15. PlanetOrphan says:

    Worried about your future aye Matt ?

  16. Matt says:

    “@Matt , better than giving it to the Banks M8!”

    Clearly I raised the issue… You’re not talking about incentives, you’re talking about a massive subsidy from taxpayers to start-ups, that will most likely fail.

    And no I’m not a banker, but I am worried about hair-brained ideas that undermine current and future generations of NZs.

  17. PlanetOrphan says:

    Wow took ya a while to find that comeback Mr Banker.

    And my original comment still stands.
    It was you trying to cut it in half.
    “Everyones a failure” aye Mr Banker man.
    Don’t give them any money , I want to rape them for it instead.
    Only the elite like MattTheBanker can give away “Printed” money.

    That is your future afterall aye Matt?

    “Print” the money Matt no taxpayer funding required and you bloody well know that.

    Not a Banker ? You Lying bastard.

  18. Matt says:

    Are you David Clark’s EA? Or are you here just to make things up? Clearly you can’t respond except via insults and building straw men up to make yourself sound superior…

    And your original comment doesn’t, as research has shown. And banks don’t print money, something you find hard to understand.

    And I went to my local dairy to get a drink in this horrid heat.

    Now I’m a lying bastard? By law govt still has to issue debt to correlate with the spending. So, yeah it is a subsidy. Especially when that debt will come with large loan write-offs.

  19. PlanetOrphan says:

    “banks don’t print money, something you find hard to understand”

    Didn’t you see that Seven sharp article on Mortgages ?
    They do indeed print money, something you are to scared to admit.

    So what part of the Financial Industry do you work in ?

    I’m getting angry because My suggestion was about improving the futures of every NZ’er and your flippant response was to tell 50% of them it’s not worth trying.

    You deserve the abuse Matt IMHO.

    PS. Are you trying to tell me the Banks delete the original mortgage amount from their coffers after it’s paid and only keep the interest ?, not very likely is it ?

    And no I’m not related to the Labur party in any way.

  20. phillip ure says:

    um..!..why not a financial transaction tax on the bankers..?

    ..y’know..!..that radical policy recently introduced by the european union countries..?

    ..why are labour so scared of going near that obvious part-solution to our woes…?

    ..phillip ure..

  21. Matt says:

    No they don’t, they create temporary credit at the BEHEST of the government via the RBNZ Act. Honestly, Seven Sharp?

    How can improving NZs future involve throwing spending at things that will fail? I’m not flippant, that’s reality, that’s what ACTUALLY happens. That’s before you consider the deflated economy and export economy. I never said it’s not worth trying, stop making things up.

    Yes, they do. It’s called double-entry book-keeping. You know you’re saying banks have control of your home once you’ve paid the mortgage… Do your words make sense now?

    @phillip – second best option IMO.

  22. PlanetOrphan says:

    I have no idea how you arrive at that conclusion Matt, you read things between the lines that do not exist.
    And I aint gonna argue anymore, you can’t inform me, you just spout gibberish from a textbook.

    I apologise Matt … sorry m8.

    Get someone else to read/interpret my comments maybe.

  23. Matt says:

    Um, because that’s how the monetary system works maybe? And I doubt you’re find any of this in under-grad/grad textbooks, it ain’t there. Decent academics and Fed/central bank/BIS papers yeah, but not in textbooks.

    As an aside, “printing money” in a credit economy only refers to the desired holdings of notes & coins by the populace, which is carried out by the RBNZ.

  24. Matt says:

    P.S. QE is not printing money. And can we have a response from David?

  25. phillip ure says:

    as far as the big picture is concerned..labour should have a brace of new policies..(and why not an f.t.t..?..f.f.s..!..)

    ..there is a vacuum there to be filled..

    ..’cos national has nothing.. my mind..the killer-quote reaction to the court decision yesterday came from key..

    ..when he said ‘there is no plan b..’..

    ..selling our assets out from under us is the only economic plan national/key has..(once again..f.f.s..!..)

    ..a policy opposed by a vast majority of new zealanders..

    ..the ground couldn’t be better prepared for a serious change of direction/policies..

    ..(and as noted by chauvel in his valedictory-speech..the policies you had last time…got you labours’ worst result ever…

    ..remember yr ‘poverty-solution’ then..? extra ten bucks a week for the poorest/ 2018..?..

    ..and you are still wondering why that massive rump of traditional labour voters just rolled their eyes..and stayed at home..?..once again..f.f.s..!..)

    phillip ure..

  26. PlanetOrphan says:

    The reserve bank deserves a louder voice in Parliament.

    We should be injecting cash into Solid Energy not selling it off.

    I have no idea what those idiot degree holding financiers actually are trying to acheive, we should not and as far as I know never have had an asset backed economy, it’s purely for the MSM that they freakin go on about them, So people will have a “Future” and have something to work for.

    You “Financiers” are simply not civilised.

  27. phillip ure says:

    b.t.w..i was expecting you/labour..(and the greens..for that matter..) be all over that ‘there is no plan b’-quote from key like a rash.. today in q-time..

    ..but no..i waited in vain..(and just got a few more bruises on the forehead from thumping my head on the table in frustration..)

    ..and it’s hols again next week for that’s another golden opportunity that’s just rolled on

    phillip ure..

  28. Matt says:

    @phillip – the TINA Thatcherism is a core component of neo-liberalism. National says monetary tools, Labour says monetary tools. FTT fails because it as a tool is couched in the same rhetoric/narrative that drives almost all ‘good left’ govt policy. Better to say Vichy Left. I have pointed out many times in this thread alone, banking actions are driven via govt legislation. What does that tell us?

    Sin taxes, ie. HFT, M – M’, should optimally raise ZERO taxes. Meaning, legislate them out of existence.

    And IF the opposition said so, it could simply nationalise SoEs like that. So why doesn’t it? And I would say, one reason the large majority rolled their eyes was because the big announcement was regarding same-sex marriages… I mean come on? You drive that through once IN govt.

    @Planet – RBNZ is an entity of government. It can’t tell govt to do anything, in fact, it’s largely irrelevant… But, don’t let that stop the hate.


  29. Jack Ramaka says:

    John Key has a buyer lined up for Solid Energy, don’t worry the vultures will be circling. It will be a steal for someone who knows what they are doing in the coal industry.

  30. phillip ure says:

    i wd like to fact-check my 7.01 pm last night..

    ..of course the offer to the poorest/sickest was $60 bucks a 2018..

    ..ten bucks a year..

    ..not quite as pathetic an amount as my original claim..but as a/the tool to do away with the poverty that blights us..

    ..just as ineffective/useless..

    phillip ure..

  31. mariana says:

    So maybe we should commit to putting solar panels on all the new houses and build a whole nz manufacturing sector by making them here in nz.we could grow jobs and it would also make the power cos less attractive to buy shares in.

  32. Dan says:

    How are we going to pay for things if the exchange rate goes down?

  33. Brian Thomas says:

    Any government that wants a clean, green, diversified economy will ensure New Zealand’s future prosperity and will get the approval of us at