Labour on Auckland

September 16th, 2009 at 1:58 pm by David Farrar

List MP Damien O’Connor blogs:

The rest of the country subsidises and provides it with the wealth to exist.

This is not a view unique to Damien. once said:

Auckland now sits atop the nation like a great crushing weight

I think it is commendable Damien shares his views with us. he is obviously positioning to become Finance Minister.

Incidentally a report in 2006 concluded Auckland sends $3.8 billion more tax to Wellington than it receives back in spending.

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31 Responses to “Labour on Auckland”

  1. brucehoult (199 comments) says:

    I’m absolutely positive that WELLINGTON sends a lot more tax to “Wellington” than it receives back in spending too.

    It’s the hinterlands that get it, ya know.

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  2. Johnboy (15,891 comments) says:

    Could someone please remind me which electorate it was that resoundingly voted Damien into parliament again?

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  3. malcolm (2,000 comments) says:

    A pointless and divisive discussion.

    I love it..

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  4. emmess (1,418 comments) says:

    >>I’m absolutely positive that WELLINGTON sends a lot more tax to “Wellington” than it receives back in spending too.

    Yeah whatever, most of Wellington tax’s paid comes from the government in the first place

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  5. davidp (3,572 comments) says:

    Lee didn’t like South Aucklanders. But O’Connor doesn’t like any Aucklanders.

    Labour Party policy for 2011: All Aucklanders are bludgers. I want to see that on a billboard.

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  6. Jim (407 comments) says:

    For sure, if Auckland’s tax revenue was ring-fenced then it would be clear how much the rest of NZ had their hands in the pockets of Auckland.

    Just take a moment to look at the balance of payments of any autonomous city state (Hong Kong pre’97, Singapore, etc) and see how well a city does when it has to account for its own costs only.

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  7. Jeff83 (771 comments) says:

    Getting ready for a return to FPP?

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  8. Rick Rowling (825 comments) says:

    Oh this is going to be great.

    And we’ll get to see who on these threads lives in Auckland!

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  9. Komata (1,158 comments) says:

    Considering that a large rather-large number of Labour supporters actually live in Auckland, it seems to me that Labour are suffering another ‘foot in mouth’ moment here – and I thought that Phil was the only one who indulged in that type of thing.

    Looks like National has just gained Mangere, Mt Eden, and . . – voters have a VERY long memory for those sorts of things!

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  10. Rick Rowling (825 comments) says:

    Jim (109) – because being attached to New Zealand is the only difference between Auckland and Singapore or Hong Kong…

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  11. Bevan (3,965 comments) says:

    Maybe Auckland should declare its independance.

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  12. Jim (407 comments) says:

    “because being attached to New Zealand is the only difference between Auckland and Singapore or Hong Kong…”

    Umm… no. Because some people believe that a city by itself can not pay it’s own way, then a clear counter example is a useful device to illustrate otherwise.

    I sincerely doubt that Auckland gets more govt spend than its occupants and companies pay in tax. Open to being proved wrong though…

    [and no, I don't live in Auckland]

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  13. towaka (19 comments) says:

    You can make a case for Auckland being a drag on the economy if you look at the exports versus imports.As most exports come from the provinces to pay for the Auks and there Jap imports etc then without this drag the country would be running trade surplus`s not deficits.

    Talking about internal taxes is a red herring as the true wealth of this country is generated through the export sector.

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  14. KiwiGreg (3,246 comments) says:

    @ Towaka not entirely sure what you are smoking. A county’s wealth is the sum of all its production, not just exports. The US would be the poorest country in the world if you were right.

    For an Aucklander it’s difficult to understand how disliked Aucklanders are without getting out into the hinterland. It was always a surprise to me when I used to speak around the country to meet up with this, The average Aucklander probably cant even form an opinion about, say, someone from Christchurch, but boy they have an opinion about him.

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  15. Rich Prick (1,651 comments) says:

    When Auckland sends the rest of us the bill for its leaky homes saga, O’Connor may well be *cough* right.

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  16. jks (30 comments) says:

    This is probably part of Damien trying to seek re-election in West Coast/Tasman, there are a lot of gripes on the West Coast about the perception that they are subsidising Auckland, particularly through petrol taxes and vehicle registration costs. Having met both O’Connor and Chris Auchinvole I hope Damien is re-elected in 2011.

    @ Johnboy what exactly does whether or not he holds an electorate seat add to this discussion?

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  17. Johnboy (15,891 comments) says:

    jks:—-It adds the dimension to his narrow insular comment that he is a creature of the party and he is there in parliament by dint of that since his electorate tossed him out. Anathema to someone of giant ego who feels he has so much to contribute by telling the proles how they should be behaving (read politician). Hence the natural desire for such as him to attain an electorate again so he can again tell the party bosses what the score is instead of the other way round. His misguided attack on the good citizens of Jafaland is obviously designed to improve his vote among the feral inbreeds (Helens words not mine) of West Coast.
    I take it you are one so it is obviously working.

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  18. expat (4,048 comments) says:

    TOP SECRET:

    Labour strategy is to rabble raise, kick off union industrial action and try and reconnect with the great unwashed mass of workers who they purport to represent, their preferred strategy of bad mouthing Key hasnt worked.

    (but we all know Labour are driven by a bunch of urban ‘alternative’ lifestylers and pointy headed academic policy wonks)

    The heartland revival* – priceless

    LMFAO.

    * read as PR disaster waiting to happen

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  19. towaka (19 comments) says:

    KiwiGreg is correct in stating that ”A county’s wealth is the sum of all its production,”but unfortunately our production of goods is very limited and the next time you want to buy a car,tv,medical supplies,clothes,etc etc it would have to imported from overseas from a country with a diversified manufacturing base.And guess what?.. we are going to need hard currency from exports to pay for the essential imports.

    Comparing the huge US economy with it`s massive domestic market with our small economy is just nuts.

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  20. jks (30 comments) says:

    Johnboy: I agree it is probably part of attempts to win back West Coast/Tasman although I doubt too many of what Helen and now you call “feral inbreeds” are readers of Red Alert so a rather bad strategy. I also agree the attack is misguided, and no it is not working however that is rather irrelevant considering I no longer live on the West Coast. It was really irritating to hear people whining about “Auckland gets this, Auckland gets that, The politicians don’t care about us” etc. If you read my previous comment carefully you will see I said that West Coasters seem to perceive that they are subsidising Auckland not that I believe it. I’m on Jim’s side in that I “sincerely doubt that Auckland gets more govt spend than its occupants and companies pay in tax.” and I too am open to being proved wrong. [and no I still don't live in Auckland]

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  21. Viking2 (11,339 comments) says:

    And America is broke or as near as dam it. Particularly now the Chinese have decided that America is broke and they want their money back.

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  22. Viking2 (11,339 comments) says:

    http://www.interest.co.nz/ratesblog/index.php/2009/09/16/top-10-at-10-south-canterburys-wanaka-woes-depression-like-drop-in-us-lending-somers-edgar-on-nzx-dilbert/

    IMF professor Tim Congdon says US bank loans have fallen at an annualised pace of 14% in the three months to August, which is a similar rate of contraction as during the Great Depression, reports Ambrose Evans Pritchard at The Telegraph. HT AndrewJ in yesterday’s Top 10 comments, Greg Elliott via email and Gertraud Tschida via email.

    “There has been nothing like this in the USA since the 1930s,” he said. “The rapid destruction of money balances is madness.”

    Mr Congdon said a key reason for credit contraction is pressure on banks to raise their capital ratios. While this is well-advised in boom times, it makes matters worse in a downturn.

    “The current drive to make banks less leveraged and safer is having the perverse consequence of destroying money balances,” he said. “It strengthens the deflationary forces in the world economy. That increases the risks of a double-dip recession in 2010.”

    Similar concerns have been raised by David Rosenberg, chief strategist at Gluskin Sheff, who said that over the four weeks up to August 24, bank credit shrank at an “epic” 9pc annual pace, the M2 money supply shrank at 12.2pc and M1 shrank at 6.5pc.

    “For the first time in the post-WW2 [Second World War] era, we have deflation in credit, wages and rents and, from our lens, this is a toxic brew,” he said.

    3. Despite this, however, US producer prices rose 1.7% in August, which was more than double the expected inflation, Bloomberg reported. US retail sales also rose a surprising 2.7%. HT Troy Barsten via email.

    Producer prices are one of three monthly inflation gauges reported by the Labor Department. Prices of goods imported into the U.S. fell a more-than-forecast 2 percent in August, led by a surge in fuel costs. The Labor Department tomorrow will probably report consumer prices rose 0.3 percent last month after holding steady the prior month, according to economists surveyed by Bloomberg.

    Fed policy makers on Aug. 12 committed to keeping the key interest rate between zero and 0.25 percentage point “for an extended period” to promote economic recovery. They said they expected “inflation will remain subdued for some time.”

    The economy will grow at a 2.9 percent annual rate in the July-through-September period, according to the median of 61 estimates in a monthly Bloomberg News survey, and slow to a 2.2 percent pace during the last three months of the year.

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  23. Johnboy (15,891 comments) says:

    “[and no I still don't live in Auckland]”

    Sensible fellow jks nothing worse than a feral coaster turned jafa. We shoot em on sight down here in Mallardland.

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  24. Grizz (244 comments) says:

    “Incidentally a report in 2006 concluded Auckland sends $3.8 billion more tax to Wellington than it receives back in spending”

    What are you implying by this statement. As I recall, in 2006, the government surplus was around $8 billion. On top of this, some government spending benefits no province. Think of foreign aid. Think of overseas defence spending. Think of paying interest on government debt. Aucklanders may pay tax money to DOC, but I am sure many get out to the National parks to enjoy them. I am sure other cities and provinces throughout New Zealand also spent more in tax than what they directly received back from the government.

    On the other hand, Auckland has more higher income earners than most NZ regions. Under a progressive tax system and with higher GST take from larger disposable incomes, it would be expected that a greater proportion of tax would come from Auckland.

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  25. Gooner (995 comments) says:

    What O’Connoer said sounds very familiar to what the mad mayor of North Shore said a few months ago. Is Labour Party policy being written out of the mayoral office in Takapuna?

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  26. jks (30 comments) says:

    “Sensible fellow jks nothing worse than a feral coaster turned jafa. We shoot em on sight down here in Mallardland.”

    Thanks, I’m sure a certain Palmerston North motelier would do the same to you

    And to be a bit more on topic, to put things in perspective if Auckland contributes $3.8 billion more than it receives in tax payer money, how much does it contribute in total?

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  27. Banana Llama (1,105 comments) says:

    I have lived in both Rural and Urban New Zealand, most of the complaints Rural New Zealand levels against Auckland has more to do with Wellington than anything else, i guess the big smoke is a convenient whipping boy.

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  28. expat (4,048 comments) says:

    Labore are trying to divide NZ to get some market share back.

    Why do you think there are so many strike actions kicking off?

    Its part of the strategy dictated to Labore by the EPMU and Co in return for which Labore will get some cash.

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  29. Banana Llama (1,105 comments) says:

    http://www.youtube.com/watch?v=tjMSHfn1vuM

    Kind of Relevant ;)

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  30. Gary2 (17 comments) says:

    I’m not aware of the 2006 report which is referred to, but I do wonder whether part of the reason for the $3.8b difference is also that many companies have their head offices in Auckland? The tax they pay will be from the head offices, and not broken down to their various branches around the country. There are many examples – banks, insurance companies etc…

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  31. Chris2 (771 comments) says:

    Now let’s see if O’Connor has the balls to be consistent by announcing that maoris contribute less tax than they consume ….

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