Cunliffe addresses Key's lies...            

David Cunliffe has addressed Key’s truly uninspiring pre-budget speech this morning.
National have no economic plan, and it shows. Key’s tinkering to fix the massive economic gaps, and his only suggestions are a vague warning that National would reduce the member tax credit, and reverse its own earlier move to reduce the default contribution rate.
Yes: they plan to encourage savings by cutting savings.
But the speech was much more about blame-shifting on to the weather, the earthquakes, the GFC and the previous Government. After 2.5 years, we apparently still shouldn’t blame them.
Cunliffe addresses what he politely calls Key’s ‘misleading’ claims:

Rebutting false claims on Labour’s economic record in Key’s pre-Budget speech
1. Key says: “Government spending increased markedly in the mid-2000s”
Fact: Government spending was 31.0% of GDP in 2000 and 31.2% in 2008. Under National, spending as a percentage of GDP has exploded

Source: Parliamentary Library
2. Key says: “Government spending rose 50 per cent in just five years”
Fact: Between 2003 and 2008, core Crown spending grew 42.9% but this was before inflation and population growth. In real terms per person terms, spending grew by less than 20%, which was in line with economic growth. This money went into programmes like Kiwisaver, Working for Families, and increased infrastructure spending, which National hasn’t scrapped.
Source: Parliamentary Library

3. Key says: “Since 2004 almost 60 per cent of new jobs have been in heavily government-dominated sectors”
Fact: Key is counting the extra teachers, doctors, and nurses Labour funded as if they are ‘bureaucrats’. Core public servants remained roughly 2% of the workforce under Labour.

Source: State Services Commission, Human Resource Capability Survey of Public Service Departments; Statistics New Zealand Household Labour Force Survey. Compiled by the Parliamentary Library.
4. Key says: “export volumes grew only one per cent in total between 2004 and 2008”
Fact: Key is using selective dates and the impact of the global recession to mislead. In reality export volumes grew 42.2% in Labour’s first 8 years in office before shrinking 11 per cent during the recession. Under National, export volumes have just now regained the level they were at under Labour four years ago.

Source: Statistics New Zealand, Infoshare
5. Key says: “since the end of 2004, GDP per person have fallen by an average of 0.1 per cent a year – the weakest period since the late 1980s and early 1990s
Fact: Again, Key is using the recession and his own poor economic record and trying to attribute the blame to Labour. In reality, GDP per person grew 16.8% in the first 8 years under Labour. Since the recession, GDP per person has fallen 5%. National has made no progress on growth, with GDP per capita falling for 6 of its 8 quarters in government so far.

Source: Statistics New Zealand, Infoshare

[Update: now with graphs!]


Acknowledgements: The Standard

Beyond the HuttRiver

Did dear Hekia lie?

Image via Wikipedia

A dirty deal requires dirty lies - did dear Hekia lie?


They say you know your opponent’s stand is dishonourable when they resort to spreading lies and promoting falsehoods about your position.

The government’s Acting Energy and Resources Minister in attacks on opponents to deep sea oil drilling has been caught out lying and spreading slurs that misrepresented their position.

Gisborne District councillor Manu Caddie accused (Hekia Parata) of lying, or “deliberately misleading the public”, in an article in The Gisborne Herald on Saturday in which she said the exploration permit would involve only 2D and 3D data gathering, not drilling.

The company would decide whether to start drilling once they had all the information and, if they did decide to drill, they would have to apply for a mining permit, she said.

But Manu Caddie says this was a blatant lie.

The permit signed last year by her predecessor allowed the company to drill one exploratory well within 60 months of the commencement of the permit, he said in a written statement.

“There is no need for Petrobras to come back and ask the Government for another permit before they start drilling . . . the permit expressly gives permission to drill a well.”…

…Ms Parata also said there had been “scaremongering” going on that seismic monitoring could cause earthquakes.

That claim has been made numerous times by anti-drilling group Te Ahi Kaa in various media.

But Mr Caddie said this morning that the group had been misquoted.

“First they ignore you. Then they mock you. Then they attack you. And then you win.” – Ghandi

Acknowledgements: The Standard

Key flipflop over gst increase - credibility waning...

Flip-flop from Key over GST - credibility waning...

John Key's signal GST will rise comes after he promised in a 2008 press conference that National would not increase the tax

It appears the Prime Minister is preparing to go back on his word over GST.

At a press conference John Key held in 2008 he said he would not raise GST, stating: "National is not going to be raising GST. National wants to cut taxes, not raise taxes."

Later at the same conference Mr Key suggested it would be an incompetent Government that would have to raise the tax.

In his state of the nation speech to Parliament yesterday, he virtually confirmed the consumption tax is going to rise, to up to 15 percent. Mr Key's office says he has no comment. Its going to happen customers!