Mr Key – a paperboy in his youth – said he found out about the move at Cabinet on Monday and did not regret it despite the publicity.

He found out on Monday? After the Budget had gone to print? Definitely a game of blame Bill going on here. I imagine the conversation at Cabinet on Monday must have gone something like this, ” Ah, John, we’ve got this thing called the Budget on Thursday. Nothing much for you to worry about….”

But, wait, there’s more Mr Key goes on to say

A lot of people didn’t know they were entitled to them so they didn’t bother claiming. The amounts were fairly small and overall we have been trying to clean up the tax code

Yes, that’s right the amounts are “fairly small”, that is the point! It’s tax on children who earn less than $45 a week, of course the amounts are small. That’s why the credit is there, so they can get those very small amounts back.

And yes some people didn’t bother claiming, but obviously quite a few did given that the government gets $14 million out of this.

What a load of spin and nonsense for a piece of penny pinching from the pockets of paper boys and girls.

25,333 – The number of words used by the media to describe a Budget of zero ideas.

150 – Million of the proceeds from selling state assets will fund a makeover of the New Zealand high commission in London.

17 – Per cent drop in exports in the last year, just days after John Key said exports are rising.

8.2 – Million to make more than 200 Defence Force staff redundant.

6 – Minutes – the amount of time John Key spent in his 18 minute budget speech actually talking about the contents of the budget.

Unfortunately it’s yet another tall tale from National.

This country desperately needs sustainable economic growth to create jobs and incomes, to give families hope, and to reverse the brain drain.

But after four long years of the John Key government there is still almost zero growth.

New Zealand is not doing well by international standards. Our annual GPD growth is lagging behind Australia, Brazil, Russia, Mexico, Germany, Turkey, Korea, Switzerland, Poland, Norway, Venezuela, Argentina, South Africa, Finland, Austria, Bolivia, Estonia, Iceland, Israel, Chile and many of the Asian economies.

Actually we’re going backwards because yesterday Statistics NZ said exports have plummeted by a horrific 17%. That’s a dire reflection on the government’s lack of a recovery plan, and it’s an indictment on economic development minister Steven Joyce’s $120 million of cuts to the economic development budget.

What about National’s other tired tall tale; the idea that growth will magically ramp up any minute now?

Well we’ve been hearing this nonsense for years. Last year English promised 3.2% growth, but Treasury says it’s probably been less than 1.6%.

Now the finance minister is promising we’ll have 2.6% growth in the next year – and he’ll conjure up billions to get rid of the deficit too.

The reality is Mr English can pick the pockets of every paperboy and papergirl in the country, he can raise the prescription charges, he can force the students out of their training, he can wave goodbye to thousands and thousands more kiwis at the departure lounge, he can cut and cut and cut.

But his tall tales still won’t be true and National will still be a zero government.

Over the next few weeks I will be blogging more on why National’s growth performance is inadequate, why their GDP forecasts are thus rosy and unreliable, why the Zero Budget provides zero hope of any improvement, and what some alternatives might look like.

Yesterday National delivered a budget that offered zero opportunities for young New Zealanders. Removing the tax credit on part-time work for young people, restricting student allowances and increasing student loan repayments are all examples of how young people are paying for National’s deficit of ideas. Nothing was presented yesterday to offer young people hope for their futures. Rather, what was presented will have even more of our young people scampering for the nearest departure lounge.

Over the last 24 hours my inbox has been running hot with messgaes from young people feeling like they have been abandoned by this Government.

This afternoon I received this email from a constituent of mine. She has also sent it to the Prime Minister. I guess she really means it!

I really don’t have to say anymore – it speaks for itself!

Dear John,
I’m breaking up with you. I can’t handle this anymore. You weren’t my first pick anyway, to be honest. Russel charmed me, Pita and Tariana said nice things, and even Phil was better company. But we ended up together you and I, facing the gloom and doom of an ageing population, a broadening gap between here and the West Island, the ever-looming GFC, and now, the recovery effort here in Christchurch. You were all right to start with; we got on well enough. Your friends aren’t that great. Anne annoyed me when she closed the school down the road from me, Bill is boring, Gerry keeps on eating all the pies, and Banksy’s a liar, plus your perpetual smirk started to wind me up, but mostly, we managed.  

 But this budget John, it’s the breaking point. That’s it. It’s over.

You know how I finish my LLB/BA this year, having worked part time jobs since I was 15, and essentially 7 day weeks for the past 4 and a bit years? You know how I haven’t been eligible for student allowance until very recently when Dad had to stop working? You know how my student loan is currently sitting around 60 K? Yeah, this budget isn’t helping. Cancelling student allowance for postgraduate study? What were you thinking, John?!?

 I don’t know if you know, but I was looking at doing an LLM next year, in some facet of resource management that would actually be useful and productive for the nation.  My husband is currently finishing off his very useful and productive PhD in mechanical engineering, with a little bit to go next year. Our combined student debt is around the 100 K mark. Another year for us without allowance is another 10 K to that debt.  I realise that you used to shuffle huge sums around for Merril Lynch, so 10 K seems like nothing, but can I tell you what this combined debt means for us?

 It means a struggle for a first home. Heck, it might mean no home at all, in current conditions. It means having fewer children, if producing at all. They tell us the right people aren’t having enough offspring. Children are a priority for us, but not if we can’t afford them. Most of all however, this debt means going overseas. Australia beckons, but we were thinking further afield, like Canada. We’re likely to stay there. There’s very little here for us anymore.

 So it comes to this, John. It’s over. You said so much about bridging the gap between here and Australia. Expecting students to take such a hit while expecting them to pay for the ever-increasing superannuation explosion and the resulting problems that that little nutshell is going to have is f*cking stupid, John. Do you expect us to let you back in next election? Forget your sins, expect us to let you ‘change’? Ha, you could only hope. I’ve got a new politician in my life. His name is David. He offers far more than you. Get lost John.

 No longer yours,

A soon to be graduating lawyer and her engineer husband who are leaving NZ – and not looking back.

It’s the day after the Budget and Parliament is sitting in urgency to debate new tax legislation. The Taxation (Budget Measures) Bill is apparently so important that National have:

• Deferred the main Budget Debate;
• Removed normal select committee review;
• Imposed a retrospective effect.

So what is this tax bill about?

Is it the secret “base broadening measures”; National’s supposed answer to Labour’s future focussed capital gains tax?

Is it the closing of the major loophole by which half of the wealthiest 100 New Zealanders avoid being on the top tax rate?

Is it reinstatement of the Labour Government’s research and development tax credits, the key tool which was stoking our businesses’ engines of innovation?

Er, no, no and no.

The centrepiece of this Bill is picking the pockets of paperboys and papergirls.  Urgently taxing toddlers, if you will.

It’s laughable that National’s top economic priority is retrospectively stealing the pocket money of 68,000 kids.

But it’s incredibly sad that this is what government in our beautiful country has come to.

National has wrecked New Zealand’s economy.  Just yesterday they unveiled a horrific 17% plunge in exports.  But instead of getting a real plan to deliver a brighter future they’re plotting to tax toddlers.

The zero Budget of 2012 is yet another wasted opportunity for a country desperate for change.  It’s an insult to ordinary Kiwis who are working harder and longer for less and less.  It’s a slap in the face to law abiding families and small business owners who pay their taxes, and who deserve to get ahead instead of being pickpocketed.

New Zealand is losing 1,000 Kiwis every single week.  That’s 50,000+ a year.

Unemployment is up by 50,000+ since National took office.  The number on benefits is up over 50,000 too.

A zero Budget means zero hope for them, and all New Zealanders.

It also means zero pocket money for paperboys and papergirls.

Speaking in the general debate yesterday, Gerry Brownlee accused the Labour Opposition of “wanting to spend more on dopey things like Radio NZ”

Guilty as charged. Labour doesn’t believe that Radio NZ is dopey. And neither do most of New Zealand. It’s had its funding frozen for the last three years and is doing its best to provide quality services to NZ.

It wasn’t an off the cuff remark, Brownlee glanced at his notes before he said it. I suspect it will come back to bite him.

See the video clip at around 2min 40 sec

Today’s Budget stripped from the funding for TVNZ 7, New Zealand’s only public television channel. We are about to become one of the few countries in the world without a commercial free TV channel dedicated to the public rather than to commercial interests.

SaveTVNZ7, a group which formed last year to try to save TVNZ7 from being axed by the National Government on 30 June has organised a series of public meetings around the country. Come along if you can.

Tomorrow night’s public meeting is in Nelson at the Trafalgar Pavilion Hall 6-8pm

Meeting details:

Christchurch – Monday May 28th CPSA building, CPIT, 5 Madras Street campus, Chch city 7-9pm
Palmerston North – Wednesday 6th June- All Saints Church Hall, cnr The Square & Church St
Dunedin – Thursday 7th June – Barnett Theatre – Otago University,
Hamilton – June 13th (venue tbc)

If you can, please attend a meeting in your town. If you want a meeting in your community contact myself or Myles Thomas, the SaveTVNZ7 organiser savetvnz7@gmail.com

Trying to find some time between speeches to write up a post on the Budget, but in the meantime this photo montage from a reader seems to get it about right.

Astoundingly we were told that Treasury officials had already written their report, before all submissions were heard. It proves that the deal has been preordained and that the government doesn’t give a damn what people think. This is totally reprehensible.

National have treated submitters with contempt, in most cases only giving people a few minutes to submit and one question from the committee. Maybe it’s because they have only heard one submission in favour of their main plan for the economy.

Bereft of any principled ideas or integrity, its members like Maggie Barry have taken to bullying and intimidating submitters – even trying to force submitters to disclose who they voted for at the last election.

Everyone has the right to submit to Parliament and MPs irrespective of who they voted for. They don’t need to be bullied by Maggie Barry. That’s democracy.

The mask hiding the National Party’s typical disdain for democracy has once again slipped. They’ve made a mockery of the select committee process, the submitters and the issue that close to 80% of people oppose. The government should be ashamed.

It never had any intention of listening. Because they know that people resolutely oppose the sale. Instead they’ve had to resort to bullying members of the public who dare to speak out.

Radio New Zealand covered it very well this morning. Have a listen…