By Alex Tarrant
Labour Party leader Phil Goff has criticised Prime Minister John Key's management of the economy over the last three years in the latest of blows traded between the two as the November 26 election approaches.
Speaking to unionists in Porirua this morning, Goff outlined 10 points which he said showed Key and the governing National Party had failed to deliver on the economy.
Goff said he would not accept excuses from Key such as the Christchurch earthquakes, global recession, or that National had inherited a fiscal mess from the previous government.
Key hit back later on Tuesday, saying Goff seemed to be in a state of denial that any of those events had happened.
"Just in the same way he's in denial in the fact that he won't admit his books won't add up," Key said.
"So I think he'd be better to focus on the real world which is, these are very difficult times for New Zealand but I think as a Government we are doing the best we can," he said.
Goff's comments appeared to be an attempt by Labour to attack the brand of Key - Goff said many New Zealanders continued to support Key personally rather than National, "because they believe he has made a personal fortune for himself; maybe he can do it for New Zealand".
However, Goff said the attack was not on John Key 'the person', but on his record as Prime Minister.
"A lot of people voted for him on the basis of his promise of a brighter future and his claim he was ambitious for New Zealand. But the simple fact is he has failed to deliver," Goff said.
Here's Goff's ten Key criticisms:
- Unemployment has increased by 50 per cent, leaving 157,000 New Zealanders out of work.
(Source: Statistics New Zealand, Household Labour Force Survey)- 100,000 New Zealanders have left for Australia after he promised he would stop the brain drain. (Source: Statistics New Zealand, International Travel and Migration)
- Prices have gone up nearly four times faster than incomes over the past 3 years. John Key increased prices by hiking GST after promising not to.
(Source: Statistics New Zealand, New Zealand Income Survey and Consumer Price Index)
- The first credit rating downgrade in 13 years and a double downgrade at that.
(Source: Westpac, Weekly Commentary: Sign of the times, 3 October 2011)
- There are 60,000 more people on benefits costing an extra $1 billion a year.
(Sources: MSD, National Benefit Factsheet and Monthly Benefit Data; and Treasury, Pre-election Economic and Fiscal Update 2011)
- The wage gap with Australia has increased by $32 a week.
(Sources: Statistics New Zealand, Quarterly Employment Survey and Australian Bureau of Statistics, Average Weekly Earnings, PPP adjusted)
- There are 55,200 15 to 24 year olds not in education, employment or training and the number of young people on the unemployment benefit long term has increased by over 700 per cent.
(Sources: Statistics New Zealand, Household Labour Force Survey, NEETs and Hon Paula Bennett, Question for Written Answer 6058 )
- The economy has grown by just 0.4 per cent since John Key took office.
(Source: Statistics New Zealand, Gross Domestic Product)
- National’s tax cuts for the most well off were supposed to be paid for with the GST increase. They actually cost an extra $1.1 billion in their first nine months.
(Source: Treasury, Financial Statements of the Government of New Zealand for the year ended 30 June 2011)- The underclass has grown with the number of children living in benefit dependent households increasing by over 32,000 in the past 3 years. (Source: New Zealand Council of Christian Social Services, Vulnerability Report, Sept 2009 and Sept 2011)
'No excuses'
Goff said it was hard for Key to be smug about the points he provided. Key responded by saying he didn't "really care what Phil Goff thinks".
"I work 19 hours a day, seven days a week to try and make New Zealand a better country," Key said.
Goff said Key would use excuses when confronted with the figures Labour had presented, "because he’s really good at describing the problem but not so good at fixing it".
He’ll say, “well, actually there’s been a global recession”; Or “We’ve had the earthquakes to deal with”; Or “We’ve tried to take the rough edges off the recession”; Or “We inherited a mess from the last government”," Goff said.
"Sure, there’s been a global financial crisis – but that actually started before John Key became Prime Minister. He knew well before he arrived at the Beehive the world was in turmoil and things had to change. Yes, we have had the Canterbury earthquakes. These were tragic events that claimed lives, ripped up a city and set the economy back, but:
- Unemployment had already increased 50 per cent
- economic growth was already crawling
- people were already leaving for Australia in their droves
- the deficit was already climbing – yes, the earthquake accounts for half of the deficit but is John Key telling New Zealanders he’s happy with a $9 billion deficit?"
"The earthquakes simply made a really bad situation worse," Goff said.
"Do you really think he’s taken the hard edges off the recession when unemployment has increased 50 per cent and family budgets are squeezed because prices outstripped wage growth? When the number of young people who are long-term unemployed has increased 700 per cent?" Goff asked.
"The claim that the last Labour Government left the books in a mess and we were spendthrifts is one of the biggest myths John Key and National have peddled this term. The fact is Labour ran surpluses and paid back the debt while government spending as a percentage of GDP only rose once National took office," he said.
Bill English actually summed up the healthy state of the books left by Labour before the spin doctors got to him. In December 2008 – at the height of the Global Financial Crisis – he said this was the rainy day we had been saving for. Labour was the party that put money away in the good times despite John Key calling for tax cuts," he said.
"We have only weathered the storm as well we have because of the actions of the last Labour Government. When you look at what he has actually done, he has cut taxes for the rich and borrowed to pay for them, put up GST and hacked twice at KiwiSaver."
(Updates with comments from PM Key, link to policy section, video of Goff)
48 Comments
Goff is pathetic. Does he really believe the public are so stupid they cannot understand what the real reasons are for the economy being deeply in trouble...is Goff that certain people have forgotten the role Labour played in driving the economy into recession BEFORE the worlds financial mess blew apart...!
What a swine he is. Clark and Cullen set about their socialist madness with a vengence and we ended up with a farce for an economy. Now Goff and the motley remains of Clark's useless govt expect voters to give them a second chance.....not a hope in hell Goff.
But Wolly, he is no worse than anyone else in politics, now or in the past. John Key is as dastardly as anyone in parliament, and his fellows are as bad, if not worse.
The lies to NZ about intentions to sell Kiwbank. The meddling with KiwiSaver. The rorting of accommodation allowances. The list goes on.
Jolly Kid is playing a naive MMP policy . Unless he gifts ACT a free run in Espom , he may lose them as an ally .
... and there's a big protest vote , disgruntled Labour & National voters , heading towards the Greens .
National banks on a 50 % + share of the vote , it may not be so easy peasy as they think .
For once I got to say to his credit GBH.....Jolly Kid can recognise a bigger turd than himself even when it is covered in mustard goosestepping about in Epsom.
His candidate is leading Banks even when he's trying to lose.....Banks will say it's ACT...it's not... it's Banks.....he'll catch on at some point.....maybe not.
If I was an Epsom conservative, and the pollies colluded to bypass democracy and my right to vote for the party and candidate of my choice in order to hand the MP-ship to some crony as a payoff for past favours, damn straight I'd be making a protest vote for Labour or the Greens. And maybe setting fire to a few campaign signs. How the hell could this be seen as anything but blatant corruption?
Just goes to show Kakapo ...you don't need a degree in rocket science to live in Epsom...you just gotta wannabe and all the things that wannabees do.
They surprise each other every year by voting ACT ...to show just how right wing they are...! like it's a club badge or something......they wouldn't know a libertarian from a Dictator...I sh*t you not......it's just what they do.
Then it's up to GeeGee's on Election night to pat each other on the back about how they kept the rif raf out. .............it's bloody hilarious, it really is.
Too right Kakapo. This collusion to rig the vote is disturbing. I suspect the only reason JK hasn't come out with an outright endorsment of Banks is that he knows how offensive that would be to the voting public. Most people have a good sense of fair play and really resent being played for fools. I hope the Epsom voters can see through the bullshit, why the hell should they help a party polling around the margin of error get into Government.
Confused...Walter...?
Feeling alone out there in the political wilderness....?
Not sure where to invest your valuable vote to enrich our lives.......?
Well wonder no more my boy....!
Vote Green...! yes that's right you heard me Walter..!..smash the toffs.!.....smash the
oiks....!...and tell the chinese to take their money and bugger off all in one vote.
Now where's my falcon gong...?
Christoff: only a few weeks till decision day .. have you decided yet ?.. should the green people get 10% of the votes/seats would you prefer they "enter into a coalition" with one of the majors, or "hold the balance of power" and allow the more successful of the majors to form a minority government ?
I....I....I...guess so iconolast......for I have no other answers......it's not that I'm fed up ...I'm just knobbled by the system...and I've got the feeling they know it.....bastards to a man / manthing.
Oh what is to become of me...? will I have to eat my sprouts and shower under a bucket and let my back hair grow back and......................
I actually think Goff makes some very valid criticisms.
It is Key's next term which will be defining for him. Will we see the economy weaken further and unemployment rise over the next two years (my view) or will we see a significant recovery (Key's central position)
If the former, then its likely we won't see National get a third term. If its the latter, then save for some sort of scandal or internal ruptures they should get a third term
Methinks that David Cunliffe may do more swinging than hither-to-thought ..... he refuses to re-populate the world with Judith Collins ....
.. I wonder if anyone has had the good grace to ask Ms Collins if she wishes to re-populate the world .
Only the decent thing , to have been asked .....
Goff nailed it. Key is hopeless. Nothing has been achieved in the last three years. The country had a surplus when National got in and it has just gone further and further down hill since then. It is a poor workman who blames his tools and Key certainly exemplifies that. He can smile, or show his teeth I should say - I wonder what he would look like without any - and wave. Nothing else. He is the worst PM this country has ever had
In fairness to Key, Goff and Co have not really nailed the options.....yet.
IMHO changing the RB Act to ease back on the money side and instead emphasise progress on exports, exchange rate and the external balances would be a smart move.
I did hear Cunliffe make a brief phrased comment on Q & A, I believe. He should elaborate and they may get my vote yet.
Wolly, Wolly, Wolly, your comments make about as make sense as John Key's plan for the economy.
Goff hasn't got the right prescription, but that doesn't mean he's wrong. National and Key have been appalling this term. Brash is the best hope we've got (which is a little sad).
What happened to the "jobs summit"? Where are those extra jobs? What happened to closing the gap with Australia?
The real story is that National purport to be a party of knowledgeable business people, instead they are the party of career politicians, housewives, school teachers and one Wall St fatcat (of the breed that even staunch republicans on Wall St no longer embrace because of their unjustifiable remunerations).
Has anyone asked how Key made his millions? How much was skillful investing and more importantly how much was bonuses and salary reaped from the lifesavings of pensioners or the shareholders of the companies for which he worked?? Merrill Lynch was hardly in fine form when John Key left (they did lose nearly $52billion on sub prime mortgages according to Bloomberg - yet they still paid $3.6b in bonuses in 2008 - goodwork if you can get it!)
Not defending John K or National but some people here have serious tall poppy syndrome. That "rich prxck" mentality is truly ingrained in their brain. They can't stand seeing anyone richer or doing better than themselves..Sad really. That’s one reason why Australia is doing better than us ‘cos they are like us WITHOUT that big chip in the shoulder..
Lighten up!
PS. Didn’t vote for National last time!!!
More often than not, those saying "I'm not defending..." generally are and do. But the main point of your post is also highly debateable: most of the "rich prxck"s who get criticised usually deserve to be criticised.
And "tall poppy syndrome"? It's as mythical as "cultural cringe".
Chairman, I'm not trying to knock JK, I think he's a nice enough guy who means well (I voted for him last year and have always voted National or ACT), but I genuinely believe that he has no idea how to manage the economy let alone solve minor (and major) problems that have cropped up this term.
He has tried to sell the idea that he is an expert at making money from jam, but he's no Graeme Hart or Richard or Christopher Chandler, and certainly no Bill Gates, Warren Buffet or Steve Jobs.
I recall the media talking about JK being worth $50m back when he took the leadership of the Party in 2006, yet after 5 years he's still worth the same? Was he only making money from his estimated $6m Merrill salary??
I've worked for large financial corporates and I've seen that some people are paid exorbitant amounts given their ability simply because they glided into the roles.
I'm not lopping any tall poppies, honestly I'd probably fit your rich pr#*k definition anyway. I admire genuine success stories, unfortunately given JK's performance and decisions in regards the economy, the earthquake and even Pike River I don't believe he's a tall poppy, he's just a muddle through man.
Give the Chairman his due Larcus M.....he stoped short of saying
.......na na na naaaaaaaaaaa!
Cheeses Chairperson I don't care about his moola.......I care about his agendas and his indifference about the state we are in , forever lobbing it back to the Global economy.....
I call him smug because he doesn't care....what you think..what I think...he only knows what he wants and thats to complete the agenda.
If you took an informed vote on asset sales alone he would lose hands down...don't you get that...?
But he doesn't care....you need to get that...to see who your dealing with here.
Christov, I respect your preference and that's 110% valid
But if someone called him smug just because he's rich than that person is the biggest smug!
No I don't like asset sales but Labour has been very quiet on their asset sales record, in my book it's hypocrite!
"No I don't like asset sales but Labour has been very quiet on their asset sales record, in my book it's hypocrite!". Hope that is not a nod to the right, because National and ACT have been pretty uncategorical about what they are planning.
There is of course a difference between openly having a different policy for different campaigns and changing policy once elected. Better pragmatic than idealogocally pathelogical in my opinion. Of course it would be much better if Labour finally started functioning as an opposition and stated that the idealogoically driven free-market policies introduced by them first, and then taken on by National, have proven to be incoherent. Of course this has mostly been caused by neo-classical economics complete failure to validate itself against economic reality.
Anybody who still says the effects of free-market economics are something a majority of NZers would want or support is either ignorant or lying.
99% (all statistics approximate and utterly made up) of tall poppy syndrome is just a bullshit rhetorical trick to shut down debate and try and derail questioning or dissent by attributing non-existent motives to the dissenter.
The remaining 1% is mostly people who can't enjoy their own success without imagining the jealousy of others.
Well I am shocked and stunned....as I were waking up....
Those bastards have been reading our blogs...!
Goff chose ..........smug.......
He's read Smug Vs Desperate n stole my bloody copy cheeky monkey..!
Bernard....get our notes ...get our lawers.....for Gods sake man don't just sit there and pretend they had an original thought.
Right that's it Phill, either you get me a spot at the trough or you get no more campaigning tips..........and don't think I don't know about you reading my little swipe at Pagani.....he's not copping much in the way of kickbacks no more eh Phill.....?eh come on.
Bernard or Alex will give you my email....brown paper bags only in the rubbish tin outside the tatoo shop next to your electorate office.....
..Smug Indeed...!
Labour following on from this today: See release below:
Labour’s Finance spokesperson David Cunliffe has released 15 quotes from John Key and Bill English that show they have consistently talked up an economic recovery despite overwhelming evidence that their Government has failed to deliver one.
“Ranging from John Key (‘I think actually starting to come out of it reasonably aggressively’ ---22 March 2009) to Bill English (‘the recovery has been quite considerable’ --- 19 August 2010), the quotes have come thick and fast over the past two years, but they have all been meaningless and cynical in terms of a real recovery,” David Cunliffe said.
“The facts are these: the recovery has not happened; low- to middle-income Kiwis are now worse off under National; there is a growing wage gap with Australia, and Kiwis are voting with their feet in huge numbers as they cross the Tasman; two international credit agencies have downgraded New Zealand; and National still doesn’t have an economic plan to grow the economy, create jobs, and boost savings.
“In March 2010 Bill English was saying it was important to convert an early start to recovery into ‘a permanent lift in growth rates’,” David Cunliffe said. “Now John Key admits that New Zealand is just ‘muddling through’.
“They keep promising recovery is around the corner, but they have had three years and the corner keeps getting further away. They do not have a plan to lead New Zealand forward.
“When all the fancy words are stripped away, the evidence is clear: the recovery has not happened, and New Zealanders are worse off under National.
“Unemployment has increased 50 per cent, 100,000 Kiwis have left for Australia, prices have risen at nearly four times wage growth, and 60,000 more people are on benefits.
“New Zealanders now face a clear choice ---- between selling out our future and owning it; between Labour’s credible plan and National’s fire-sale of assets.
“The quotes keep coming, but the results are lagging far behind,” David Cunliffe said.
Quotes attached.
Fifteen quotes that tell a story of National’s failure:
1. “I am sure the country can have enormous confidence in my leadership as we look to deliver productivity growth in a stronger economy,” (John Key 16 Dec 08).
2. “it is important we convert this early start to recovery into a permanent lift in growth rates,”(Bill English 25 Mar 10).
3. “There are encouraging signs that the recovery is headed in the right direction,”(Bill English 22 Jun 10)
4. “Tax cuts are just one of the Government’s policies to get faster growth and boost incomes,” (John Key 28 Jul 10).
5. “I think actually starting to come out of it reasonably aggressively. I’m more optimistic about 2011 than 2010 but nevertheless I think 2010 will be positive,” (John Key 18 Aug 10).
6. “The recovery has been quite considerable,” (Bill English 19 Aug 10).
7. “we are going to see a recovery in which people are careful with their spending and pay down debt, and in which the growth in the economy is driven by strong export prices. That kind of recovery will give us sustainable jobs,”(Bill English 14 Oct 10)
8. “there was aggressive recovery,” (Bill English 20 Oct 10).
9. “It is encouraging that the recovery is being built on savings, investment, and exports rather than consumption, housing speculation, and wasteful Government spending,” (Bill English, 16 Nov, 2010).
10. “the economic recovery is a bit flatter than was expected, but that is a good thing,” (Bill English 24 Nov 10).
11. “The economy did not grow in 2010 as quickly as most people anticipated … Although in the short term it means that there has been a bumpy road to recovery, in the longer term it is laying down a stronger foundation for future growth,”(Bill English 15 Feb 11)
12. “the Budget is likely to see very strong growth in real wages for New Zealanders … very strong job growth; and a much stronger economic outlook for New Zealand,” (John Key 17 May 11).
13. “More good news. This morning the Reserve Bank issued its Monetary Policy Statement. It confirms the early signs of an economic recovery. GDP has probably increased modestly through the first half of 2011, despite the impact of the Christchurch earthquake. The bank expects the pace of growth to pick up,”(Bill English 09 Jun 11)
14. “Today’s figures show that the recovery is under way, and the pace of growth is picking up,” (Bill English 14 Jul 11).
15. “there’s no guarantee”. Bill English admits Government’s estimate of obtaining between $5 billion and $7 billion may not be realised (Bill English, Q and A, 8 November, 2011).
Please enlighten me !
The Department of Labour has laid charges against three parties in relation to alleged health and safety failures at the Pike River coal mine
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10765109
Sorry, I do not understand, why the Department of Labour (upper supervision) in charge of health and safety at the Pike River coal mine, can lay charges.
Is this another case of government deciding on major, rather risky economic decisions, but when it comes to accountability - refusing responsibility ?
Should not the NZCrown court lay charges against the person(s) in charge of the Department of Labour and the three parties ?
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