Labour’s final accounts
Treasury has just published the crown accounts for the year ending 30 June 2009. This is basically the last set of accounts for the Labour Government, even though the new Government will have had some impact through decisions taken before the 2009 budget.
The 2008 budget said there would be a surplus of $3.1 billion. In fact the operating deficit was $10.5 billion.
The OBEGAL (the underlying surplus) was a deficit of $3.9 billion compared to the budget of $1.3 billion.
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Tags: Crown Accounts, OBEGAL, surplus
October 14th, 2009 at 2:47 pm
I suspect Trevor Mallard will put out a statement soon that the government is just scare mongering with those accounts and the real situation is much better.
October 14th, 2009 at 3:03 pm
This simply can’t be true. Labour were such fine custodians of the economy. Perhaps you’ve misreported this?
October 14th, 2009 at 3:14 pm
I recall DPF once praised Cullens fiscal restraint. Although, i think that was relating to keeping debt down.
I see kiwi rail net profit is 16 million. Kiwi rail is valued at 300 odd million now. This means, Cullen basically gave away 500 million of nz taxpayer money (or was it a bit more) to the australians.
I’m still bitter about that.
October 14th, 2009 at 3:32 pm
Budget 2008 took place before a worldwide recession and across the board spikes in unemployment. It’s a big stretch – but a marvellous attempt at ideological twisting in your heads – to blame the difference on the 2009 forecast.
In case you hadn’t realised, the vast majority of the world is running on a deficit or large percentages of GDP as debt. Anyone who thought this was going to come in on target was delusional.
October 14th, 2009 at 3:41 pm
Cullen spent as much as he possibly could of any surplus, which actually put New Zealand in a worse position to weather this economic storm. And the fucker actually gloated about the fact.
October 14th, 2009 at 4:02 pm
Chris C – Cullen knew exactly what he was doing. Were you deaf to him gloating that he had left the cupboard bare.
October 14th, 2009 at 4:35 pm
Well, why don’t you try reading the report, Brian – unless you think that Treasury have been complicit in covering everything up. Tax cuts for SMEs have lost $3bn on revenues alone, unemployment has gone up so that’s an extra $0.5bn on that, Super has a $2.8bn deficit because its investments are market tied, etc. etc. etc. You make a choice in a recession – what is it that you want, tax cuts or a low deficit? You can’t have it all.
A deficit of $10bn is amazing, considering.
October 14th, 2009 at 6:41 pm
On kiwirail and Toll.
Noticed that the toll trucks are nowhere as busy as they were. Does that have anything to do with the thought that Kiwi’s generally like to be fair and Toll ripped of the taxpayer both with Kwirail and with their tax aviodence.(which has yet to go to court.) In business customers vote with their feet and price is not always the most important consideration. So anyone who uses Toll there a hint. Vote with your feet and debase their earnings.
October 14th, 2009 at 8:23 pm
Kimble and Brian above re Cullen spending all he could during his last (thank God) budget .. I think he knew back then that they were whucked and through shear spite, spent the lot .. and with a smirk.
Viking2 .. maybe but I think you will find many trucks surplus at the moment due to a large drop in things to transport .. that seems to be changing in recent times. I would avoid Toll like the plague due to the scam they did on the Taxpayer through Clark and Cullens crazy actions.
October 14th, 2009 at 8:30 pm
Hey Viking2; go easy on Toll.
My broker told me to sell Brambles and get in to Toll.
October 14th, 2009 at 8:40 pm
You think we have problems. Glen Beck had the (Federal deficit clock?) on his show this morning, the yanks are in the red for 105 trillion. Makes our mess look like lose change on the bedroom floor.
October 14th, 2009 at 9:40 pm
SSB = you are right, but all the same I despise Labour for gloating and thinking it was amusing to leave the cupboard bare…. Cullen and Klark should be disgusted with them selves when they get out of the shower in the morning and have their shave in the mirror….
Fraudulent creeps…. With our hard earned money, triple creeps
October 14th, 2009 at 9:44 pm
There are three questions to be answered from this:
1. Was Cullen incompetent?
2. Was Cullen a liar?
3. Was Cullen an incompetent liar?
Personally I go for no3 – what do others think?
October 14th, 2009 at 10:51 pm
Name me another govt in NZ history that spent so much for so few (their own voters) at the cost of so many.
Denying an enemy the opportunity for manoeuvre is a legitimate tactic in warfare.
Liarbore however wasn’t at war yet adopted a scorched earth policy when they foresaw their own demise.
To the detriment ultimately of their own constituents for they are who are most suffering in these times.
And still people sometimes ask me why I always call them: Liar-bore.
PDM: Cullen was not incompetent – he knew exactly what he was doing when for example he inked the deal on the railways. He was and is a disingenuous liar with an agenda two layers deep that ends up in guess who? Him.
October 15th, 2009 at 7:57 am
Agreed reid – Cullen knew EXACTLY the extent of the hospital pass that he was throwing to the incoming government – there was no incompetence whatsoever there – it was vindictiveness, plain and simple.
October 15th, 2009 at 9:57 am
Okay here’s some factual information – The previous government was subsidizing the railways(not in an operating mode but by catching on the run-into-the-ground infrastructure), effectively subsidizing a foreign company(Toll) – not on in anyone’s books. They spent 12 months hounding Toll trying to get the price down, 4 or 5 months later they would have got it for a lot less but that’s timing and luck.
KiwiRail have made a 16 million dollar operating profit – that’s great considering it’s during the period of the Global Financial Crisis and sure a paper loss. But hell, they’ve got a national asset up and running again. History will judge them kindly.
This loss is peanuts to the type of money Mr Joyce wants to spend on the “Holiday Motorway” up north so that Aucklanders can get to their beach houses a little quicker!