Fighting words from the Prime Minister Christopher Luxon in his State of the Nation at the soft opening of the SkyCity convention centre.
And since we begin this week’s column at this beautiful stadium let’s take a moment to remind ourselves how it was paid for.
Sir John Key wanted a convention centre. Since he couldn’t get a flag he needed something to show for his eight years in power. To induce SkyCity to build him a legacy, his government increased the number of permitted slot machines, extended their license, and gave the listed operator a regional monopoly until 2048.
This is how National believe economics is done. Deals. Haggling. Concessions. Foreign visits and handshakes with oligarchs. National is not a party of free enterprise, it is the party of business. The difference matters. Isn’t Economics a country in Eastern Europe?
Let’s get back to his address. Because here I am in agreement with Mr Luxon’s speech writer. Any party that wants to ramp up spending is irresponsible.
Core Crown tax revenue and core Crown expenses
This is how National believe economics is done. Deals. Haggling. Concessions. Foreign visits and handshakes with oligarchs. National is not a party of free enterprise, it is the party of business. The difference matters. Isn’t Economics a country in Eastern Europe?
Let’s get back to his address. Because here I am in agreement with Mr Luxon’s speech writer. Any party that wants to ramp up spending is irresponsible.
Core Crown tax revenue and core Crown expenses
Click graph to view - Core Crown tax revenue and core Crown expenses. Photo: The Treasury
Not only has spending increased in nominal terms under his administration, it has increased as a share of GDP.
His administration is projecting to increase the level of taxation as a share of the economy over the coming years.
Expenses are projected to fall, but if this government was going to reduce spending, they would have done so by now. They haven’t and they won’t.
Net core Crown debt
Not only has spending increased in nominal terms under his administration, it has increased as a share of GDP.
His administration is projecting to increase the level of taxation as a share of the economy over the coming years.
Expenses are projected to fall, but if this government was going to reduce spending, they would have done so by now. They haven’t and they won’t.
Net core Crown debt
Click graph to view - Net core Crown debt. Photo: The Treasury
Sovereign debt will continue to rise. As the prime minister tells us; “Borrowing more would lift our debt to dangerous levels, while raising taxes would snuff out the recovery and send Kiwis overseas.”
The only new policy he advocated was a proposal to increase compulsory KiwiSaver through a combination of higher employee and employer contributions that will have the effect of reducing take home pay, in the hope the heirs of Gareth Morgan will invest wisely.
Apparently this will help us compete with Australia because this policy will “…improve the returns from work and make New Zealand a more attractive place to build a career and raise a family, by closing the gap with Australia on superannuation contributions.”
In the 12 months to September 2025 we lost 72,700 citizens; mostly across the Tasman. A total of 26,300 came back. A barista in Sydney can earn more than a junior barrister in Auckland. We are not going to entice talent to stay by forcing them into penury through higher KiwiSaver contributions.
Let’s be honest. We are never catching up to Australia. We are not even trying. Your grandchildren will be available by Zoom.
This government is unwilling or unable to tackle the deep state and reduce government spending. They have had two years. Spending has gone up. The deficit has gone up. Taxation as a share of GDP has gone up.
I should mention that I also attended the State of the Nation speech by Chris Hipkins and if he said anything noteworthy I would note it. He didn’t. He may still win. I shall come back to Mr Hipkins and his finance spokesman in later columns.
Meanwhile. In the Mainland, the leader of ACT, David Seymour, gave his own State of the Nation.
It was, for the Epsom MP, restrained. Perhaps the burden of being deputy prime minister has toned down his rhetoric. This is a shame. I remember the last campaign when he wanted to abolish entire departments, slash taxation, raise the age of superannuation and end contributions to the Super Fund.
There have been real successes for this government. Few have been more dramatic than Brooke van Velden’s scuppering of the Pay Equity regime that salvaged the slim hope Nicola Willis would ever achieve a surplus.
While the Ministry of Regulation has not achieved the transformation I’d like to have seen they are making significant change at the margins.
Along with some National ministers, there is an inner group of MPs and ministers doing outstanding work but the ship of state is still listing.
Now is not the time for timidity. Act is in a death match with NZ First and it is one they must win. It is unconscionable that a party that elevated Jacinda Ardern over Bill English, that stood silent as the oil and gas prohibition was imposed, and supported a ban on foreigners purchasing residential land, can wrap itself in a shroud of conservative rectitude and claim to be the defender of the old religion.
New Zealand is on a self-destructive trajectory of rising debt, sluggish productivity, falling government services, a declining birth rate and ongoing exodus of talent. Grave problems require bold solutions.
Luxon, Hipkins and Peters cannot be allowed to peddle their timid solutions unchallenged. There is no point remaining as a junior coalition party to a government that is failing our country. It adds legitimacy to a decrepit and flailing regime......The full article is published HERE
Damien Grant is an Auckland business owner, a member of the Taxpayers’ Union and a regular opinion contributor for Stuff, writing from a libertarian perspective
Sovereign debt will continue to rise. As the prime minister tells us; “Borrowing more would lift our debt to dangerous levels, while raising taxes would snuff out the recovery and send Kiwis overseas.”
The only new policy he advocated was a proposal to increase compulsory KiwiSaver through a combination of higher employee and employer contributions that will have the effect of reducing take home pay, in the hope the heirs of Gareth Morgan will invest wisely.
Apparently this will help us compete with Australia because this policy will “…improve the returns from work and make New Zealand a more attractive place to build a career and raise a family, by closing the gap with Australia on superannuation contributions.”
In the 12 months to September 2025 we lost 72,700 citizens; mostly across the Tasman. A total of 26,300 came back. A barista in Sydney can earn more than a junior barrister in Auckland. We are not going to entice talent to stay by forcing them into penury through higher KiwiSaver contributions.
Let’s be honest. We are never catching up to Australia. We are not even trying. Your grandchildren will be available by Zoom.
This government is unwilling or unable to tackle the deep state and reduce government spending. They have had two years. Spending has gone up. The deficit has gone up. Taxation as a share of GDP has gone up.
I should mention that I also attended the State of the Nation speech by Chris Hipkins and if he said anything noteworthy I would note it. He didn’t. He may still win. I shall come back to Mr Hipkins and his finance spokesman in later columns.
Meanwhile. In the Mainland, the leader of ACT, David Seymour, gave his own State of the Nation.
It was, for the Epsom MP, restrained. Perhaps the burden of being deputy prime minister has toned down his rhetoric. This is a shame. I remember the last campaign when he wanted to abolish entire departments, slash taxation, raise the age of superannuation and end contributions to the Super Fund.
There have been real successes for this government. Few have been more dramatic than Brooke van Velden’s scuppering of the Pay Equity regime that salvaged the slim hope Nicola Willis would ever achieve a surplus.
While the Ministry of Regulation has not achieved the transformation I’d like to have seen they are making significant change at the margins.
Along with some National ministers, there is an inner group of MPs and ministers doing outstanding work but the ship of state is still listing.
Now is not the time for timidity. Act is in a death match with NZ First and it is one they must win. It is unconscionable that a party that elevated Jacinda Ardern over Bill English, that stood silent as the oil and gas prohibition was imposed, and supported a ban on foreigners purchasing residential land, can wrap itself in a shroud of conservative rectitude and claim to be the defender of the old religion.
New Zealand is on a self-destructive trajectory of rising debt, sluggish productivity, falling government services, a declining birth rate and ongoing exodus of talent. Grave problems require bold solutions.
Luxon, Hipkins and Peters cannot be allowed to peddle their timid solutions unchallenged. There is no point remaining as a junior coalition party to a government that is failing our country. It adds legitimacy to a decrepit and flailing regime......The full article is published HERE
Damien Grant is an Auckland business owner, a member of the Taxpayers’ Union and a regular opinion contributor for Stuff, writing from a libertarian perspective
3 comments:
Dear Damien. Good Sir? - What NZ Govt of past has ever attained what they 'said' they would delivered on the "campaign trail", then if elected to the treasury benches, changed their minds or had a 'civil' servant change it for them.
I recall Roger Douglas (the only dude from the Lange Govt to get a Royal tap on the shoulder -odd that) who whilst in Opposition 'railed' against Muldoon Think Big projects, and what he would do if he became Min.of Finance. And when he got there, proceeded to allow off shore business (Australia being one) to come and buy up NZ Business.
Been that way ever since, has any Govt stopped it no - in means money - and 'bugger" the worker.
Even now, the interference run by both - The Greens, Maori, the odd 'socialist' thinking Kiwi, which includes many Academics, against this Country developing its own resources, of past & even now is beyond belief.
Yet that precludes Forestry - strange, which of years past has been a mainstay industry, for which the majority of product is exported.
And now we have our Fruit Producers being told your product (peaches) will no longer be purchased to become a refined product for on sale.
Notice the Govt has not said a word, on this, ditto Fonterra & Mainland Brands products.
But mind you no previous Govt has done that either.
On the other hand, the increase in Govt depts & Staffing (MBIE) has occurred, and we have a Govt Partner who wishes to change that.
I note your comment re Sky City - Convention Centre, but that is what happens when you get 14 Architect's, 10 Local Body Power players, Unions, and the local's who oppose said building, that "failure" is bound to occur.
It will be interesting to read other comments, Damien, me thinks many may not make it past the Moderator.
Oh and "NZ's major export" to Australia has always been our People, and those who come home, usually did not do "their homework" prior to leaving.
Aussie Management are very decisive in who they employ - and thus many Kiwi's fail too meet the criteria set.
David Seymour is a thinker. He heads a competent party, all of whom have done well for the country during this term. NZF has made a good contribution as well, makes more noise but is less reliable. I sincerely believe ACT is the best (only?) hope for some recovery.
Damian, Winston did NOT "Choose" Jacinda over Bill English. Bill REFUSED to work with him... bad blood from former years. Remember, that coalition agreement took ... w e e k s ... to be sorted - and people were complaining. Your assertion is a story that gets skewed by those without inside info....
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