Kathleen Horne
COVID-19 has given Jacinda Ardern, Grant Robertson and their government colleagues the opportunity to take lying, hypocrisy and scapegoating to a whole new level.
Let’s examine the case for lying about cash support for businesses via a make-believe court case with a judge interrogating the defendant (the NZ Government).
Judge:
On the 17 March 2020 you (the Government) announced a “$12.1 billion economic rescue package” with “the lion’s share” going to businesses. What business bills can be paid with this cash?
NZ Government:
All that money is for employees.
Judge:
There are add-on costs to payroll, for example, ACC employer and Worksafe levies plus GST. Can employers use the subsidy money for these costs?
NZ Government:
No.
Judge:
So businesses that are closed with no income have to find money to pay to Government and ACC?
NZ Government:
Businesses could borrow or use spare cash.
Judge:
A closed business should borrow or use spare cash to pay a fee and GST to the government?
NZ Government:
Yes, or they could pay some taxes later or get tax refunds earlier.
Judge:
But they would have to pay those taxes or would get those refunds anyway, wouldn’t they? The only difference is when?
NZ Government:
Yes.
Judge:
If businesses did not pay these subsidies and laid off their employees instead, what could their employees do?
NZ Government:
They could apply to WINZ and not have a stand-down period.
Judge:
So the taxpayer would still be funding the employees?
NZ Government:
Yes. And WINZ would have to do all the work of administering the entitlements plus government and ACC would miss out on the employers’ add-on costs, i.e. ACC, Worksafe. GST also tax on employers’ Kiwisaver contribution.
Judge:
Businesses have other costs besides payroll, costs that continue even when they are closed. Has the government provided any grants to assist with these?
NZ Government:
No. Businesses can borrow or adjust their tax dates.
Judge:
So no billions from the government for businesses? Just a bill for those that pay the subsidy to their staff?
NZ Government:
Businesses can obtain help from banks. Also, the Government is paying people to advise businesses.
Judge:
Will advisors have funds available to provide to businesses to help with business costs such as insurance, leases – oh – and those employers’ ACC, Worksafe levies and Kiwisaver, also GST?
NZ Government:
No
Judge:
So no billions from government for businesses then? Has government provided any grants to businesses?
NZ Government:
No
Judge:
We looked at the publically available information for one sector, the Early Childhood Sector to get an idea of the money that could be coming to Government. Based on the subsidy they claimed, BestStart, a mere 6% of the Early Childhood Sector will have a bill of $176,918.88. $23,076 of that is GST. Gross that up to 100% excluding public sector kindergartens. From just one sector the government could be getting close to $3 million not including tax on Kiwisaver employers’ contribution. The income for the government, ACC, Worksafe and Kiwisaver tax from all sectors will run into many many millions?
NZ Government:
Wait, we forgot. “Some immediate relief” is being provided to the media worth about $50 million in cash.”
Judge:
The media. The same sector that one assumes the government is also paying for the saturation advertising about COVID-19?
NZ Government:
Yes
Judge:
In conclusion, then, there are no grants to help businesses who are closed completely and could be for some time but still have ongoing costs. There is however cash support for the media even though they still have some revenue.
Judgement:
NZ Government – you have been found guilty of a particularly vile form of lying.
Firstly by implying that billions of taxpayer funds are being used to assist businesses when they are not.
Secondly, you are increasing the costs to those businesses.
Thirdly you are using the media (whom you are also using taxpayers’ money to assist) to continually attack businesses the majority of whom are decent people doing their best in an unprecedented situation where information is scarce and the rules keep changing. Well done. How kind.
If you enjoyed this BFD article please consider sharing it with your friends.