Another day (Wednesday), and two more election policies. We often moan about National being Labour lite and with good reason. However, and this is important when you think about it, it is mainly in the social areas where National tends to drift left. We must give National credit for taking a very different stance from Labour in areas relating to finance outside of their social policies. This is the real distinction between the two main parties.
On Wednesday both National and Labour released policies of a financial nature. Labour released an apology for a tax policy while National’s related to the funding of infrastructure projects. On tax, National’s policy is quite clear — taxes will not be raised and the Auckland fuel tax will be abolished. Labour’s policy is this: if you earn over $180,000 a year you will be taxed at a rate of 39 cents on the amount over $180,000.
According to Grant Robertson that will affect only two per cent of the population and bring in an estimated $500 million a year. This would be used to fund health, education and COVID-19 debt repayment. David Seymour was right, these people really are in la-la land. $500 million is pocket money and will go nowhere in the bigger scheme of things. The obvious question is why bother? It also appears all you have to do to avoid the 39 cent rate is create a non-taxable trust. Talk about a bunch of drongos. They have no idea.
The Greens quite rightly say that Robertson is tinkering around the edges. National quite rightly say there are more tax increases to come…after the election. Like last time, they are promising no new taxes. Ardern said this is the totality of our tax policy. My God! I’m sure that was a pig I just saw flying past the window. Will this turn out to be lie number ??, I don’t know because I’ve lost count. For Ardern, the new tax was about maintaining core services while only affecting a few New Zealanders. She thinks she can maintain all core services by raising just another $550 million a year. Meet the new financial Wizard.
Meanwhile National announced another policy of substance, the creation of a single Crown-owned bank to streamline and fund infrastructure projects. This is smart policy. The Crown Financial Institution would combine several entities into a single umbrella agency named the National Infrastructure Bank. It would act as a “careful steward” over infrastructure projects and provide clear lines of accountability.
National’s policy document says infrastructure banks provide a “long-term perspective” on financing and developing infrastructure, act as a bridge between government and private investment and increase the availability of finance for infrastructure projects. The infrastructure bank would also be an opportunity for institutional investors such as ACC, KiwiSaver providers, NZ Super Fund and Australian Pension Funds to take on investment risks in local assets.
Two policies, one with real meat on it, the other not much more than a skeleton. Sean Plunket on Magic Talk remarked that Labour’s tax policy was so bland and so boring he wasn’t able to get an hour’s talkback out of it. Instead, the topic for discussion was how did you find God. If Pravda News on Tuesday evening was to be believed the answer is to find out where Jacinda is on the campaign trail.
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