As 2019 draws to a close, it’s interesting to review the year that was, and look ahead to election year.
It has been a year of tragedy.
This week the White Island eruption claimed sixteen lives, with many more in hospital in a critical condition. Our sympathy goes out to those who are suffering as a result of this terrible tragedy, and our heartfelt thanks go to those who so bravely helped with the rescue.
A tragedy of a different kind occurred on March 13th when 51 people were brutally murdered in Christchurch by a deranged Australian gunman. It was an act of lunacy that we tend to only ever read about in overseas newspapers. It showed we are not so distant from other countries as to be immune from the actions of radicals.
In the days and weeks that followed that incident, however, we witnessed the deplorable use of the disaster by political opportunists.
Leading the charge was the Prime Minister, who so admirably stood in support of the victims, only to then use the event to push through her Party’s punitive firearms agenda – an agenda that under normal circumstances would have been considered far too restrictive and unreasonable to have become law. In what appeared to be her desire to look decisive on the world stage, the PM penalised all law abiding Kiwi firearm owners.
Others used the tragedy to call for the introduction of ‘hate speech’ laws to silence anyone speaking out against their agendas. While the Minister of Justice has indicated support for such a law change, we have yet to see any details.
2019 was to be the year of delivery for Labour. Their multitude of working groups were meant to provide law change recommendations to implement election promises. We were told their agenda would be transformational, and have a wellbeing focus.
Reality has not lived up to the expectations.
The report by Sir Michael Cullen’s Tax Working Group recommending a capital gains tax for New Zealand attracted such widespread public opposition that the policy was abandoned.
The Welfare Working Group proposed such expensive reforms – costing over $5 billion a year – that they too were largely shelved.
After an embarrassing legacy of failure, Labour’s flagship KiwiBuild policy was finally abandoned, and the Minister Phil Twyford demoted into virtual obscurity. While house building still remains part of the Government’s agenda, there are no targets so no accountability.
For the record, 239 Kiwibuild houses were built, less than 10 percent of the 2,667 that had been promised by October 2019.
Meanwhile, New Zealand First’s Provincial Growth Fund Minister is continuing to splash the cash, although a relatively modest spend of $300 million out of the $3 billion three-year total, seems to indicate the majority of the money is being held back until election year. While it appears that only 616 full time jobs have been created from the allocated funding, the Wellington-based unit responsible for administering the fund has doubled in size over the past year to 116 employees, 71 of whom earn an annual salary of more than $100,000.
Under Jacinda Ardern’s Government, immigration has carried on at near record levels in spite of election promises by Labour and New Zealand First to dramatically cut the numbers. Those politicians realise that in the absence of any significant increase in export revenues, immigration remains the main driver of New Zealand’s economic growth.
Labour’s ideological attack on landlords has carried on unabated. They extended the brightline capital gains tax on rental housing from two to five years and introduced new requirements for insulation, heating, and ventilation. More regulations will come into effect next year – including limiting the ability of property owners to serve notice on problem tenants.
By over-regulating rental housing and villainising landlords, the inevitable has happened: rents have increased and are continuing to rise. This is leading to a surge in homelessness and a significant escalation in the state house waiting list, with a record-breaking 14,000 families now waiting – well over double the 5,800 when Labour took office. In addition, 30,000 families are now in emergency housing, up from 6,000 two years ago.
Without a doubt, Labour’s attack on landlords has exacerbated the housing hardship that many families are now facing. Their policies are making the problem worse.
To be continued…