Lies and Fearmongering

May 7th, 2009 at 4:15 pm by David Farrar

manages both with this press release.

The National Government has given its clearest signal yet that entitlements will be cut in the future, Labour Associate Finance spokesman David Parker says.

Fearmonger No 1

A reminder. John Key has said he will resign his seat in Parliament if he cuts superannuation entitlements. But not even that will stop Labour trying to prey on the insecurity of retired or near retired persons.

“The pensions of tomorrow need to be protected today. National said before and during the election they would continue with payments to the Super Fund, but have now resiled from this.”

And if Parker reads the announcement from Michael Cullen, when the Fund was established, he will see that Cullen explicitly said that contributions are funded out of surpluses and would be suspended temporarily when there is no surplus.

Not even Dr Cullen was foolish enough to advocate borrowing money to save money.

“Mr English argues that he’s not prepared to borrow to fund the investment in the Super Fund, but he’s already done that to pay for his – an astounding third of which go to the top three per cent of income earners,” David Parker says.

Then we have the lie – the claimed borrowing for tax cuts. The extra tax cuts by National were fully paid for by reduced expeniture on . This is a fact. Parker knows this. He just hopes if you repeat a lie enough times, people will believe it.

“Those tax cuts were not just unfair, but they are a substantial cause of the structural deficit New Zealand now faces and are behind the Government’s plan to now cut investment in the Super Fund.

And he lies again. National’s tax cuts are considerably less foregone revenue that the reduction in KiwSaver subsidisies. The structural deficit would be worse, not better, if National tax cuts and KiwiSaver changes had not been made. This is indisputable. The quantum of each is known and the foregone revenue from tax cuts is les than the reduction in KiwiSaver subsidies.

Everytime you hear Labour talk about borrowing for tax cuts – they are lying. They are desperate to have people beleive it, but it is not true, as National reduced expenditure by a greater amount than the tax cuts to pay for it.

If Labour were honest they would campaign on how National reduced KiwiSaver subsidies for tax cuts, and debate the merits of that. Of course they don’t want to, as anyone economically literate now concedes the KiwiSaver subsidies were far too generous.

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11 Responses to “Lies and Fearmongering”

  1. johnbt (90 comments) says:

    A Labour MP telling fibs? I am shocked!

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  2. chrishipkins (10 comments) says:

    Key can promise to resign all he likes because he knows that by the time super has to be cut he will be long gone from parliament.

    [DPF: But a suspension of Super Fund payments does not affect future affordability as the formula means that you make higher contributions later on.

    Incidentally I believe that the age of future super will inevitably rise, regardless of any Super Fund]

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  3. Bevan (3,232 comments) says:

    Not even Dr Cullen was foolish enough to advocate borrowing money to save money.

    One of the main reasons that people are losing/having to sell their homes is because they didnt think enough about the repercusions of borowing against their home to invest in the share market – in theory its OK when the return is greater than the Interest, but not the other way around – that other way around is happening right now. What Parker is advocating is essentially the same and someone needs to ask him how much debt would be acceptable in his mind for the country to take on to invest in the Super Fund. Follow that up with asking him if he thinks it ethical to invest other peoples (ie: tax payers) money into an investment fund that he knows will be worth less in the short term.

    I know Labour are economically illiterate, but his suggestion goes beyound a joke.

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  4. Viking2 (11,672 comments) says:

    Who reports these numbnuts. They need educating along with the numnut.

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  5. Redbaiter (11,880 comments) says:

    “Everytime you hear Labour talk about borrowing for tax cuts – they are lying.”

    Why not just cut to the chase-

    Everytime you hear Labour talk- they are lying.

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  6. side show bob (3,410 comments) says:

    Liarbore’s main problem is that they have no real concept on how money or wealth is created. None of them have the ability to earn an income through their own labour’s and do not understand that money has to be produced by actually producing something. They live in some fairy land where pots of gold lie at the bottoms of rainbows. I shudder to think of the shit this country would be in if these fuckwits were still in power. As Trotter use to say “there will be blood in the streets”, if his socialist mates had retained power he would have got his wish.

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  7. Ross Miller (1,618 comments) says:

    Lies – Labour – Parker – wots news

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  8. bka (135 comments) says:

    Roger Douglas at Orewa in February, “The latest Budget Policy Statement from Treasury shows that Core Crown expenses will increase from below 30 percent of GDP to 35 percent. In other words: the tax cuts are currently being financed by higher government borrowing – borrowing that will eventually be paid back with interest by future generations of taxpayers.”
    It is true that National shifted money between accounts to fund tax cuts without putting spending up, but with a decade of deficits ahead I don’t think it is fair to call Parker a liar and then say that they are “fully paid for.” Nothing is being fully paid for at the moment. Better to point out to Parker that spending is no higher under National than it would have been under Labour, and ask what he would be prepared to cut seeing he is so worried about borrowing.

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  9. OECD rank 22 kiwi (2,760 comments) says:

    Labour should quit while they’re behind.

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  10. goodgod (1,317 comments) says:

    He also recommended, and I’m paraphrasing, that any party that supported the Bradford amendments to S59 not be elected to parliament. Then he did a famous about turn. Then he campainged on a schedule of tax cuts. Then he did an about face. John’s word is about as good as any other poltician and he has only himself to blame if he doesn’t like that idea.

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  11. garethw (205 comments) says:

    “And if Parker reads the announcement from Michael Cullen, when the Fund was established, he will see that Cullen explicitly said that contributions are funded out of surpluses and would be suspended temporarily when there is no surplus.”

    Can I please have that link? Have been looking for it for a while – the Act makes no reference at all to relative Government fiscal position.

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