So what is Lianne’s debt solution?

June 25th, 2013 at 12:00 pm by David Farrar

The Press reports:

Christchurch mayoral candidate has slammed the level of debt the city council will be taking on as “fiscally irresponsible”.

Great to hear a Labour MP blast fiscal irresponsibility and raise the alarm on debt. I can only presume Lianne will not be voting Labour at the next election then, as their policies are for more spending and more debt.

In her speech Dalziel said it was “fiscally irresponsible” to take the council’s debt levels to 2% short of the maximum allowable ratio “giving us no room to manoeuvre should any calculations fall short of budget”.

I agree.

3 News reports:

But Ms Dalziel, the current Christchurch East MP, did not offer a solution to the planned uptake. Instead, she says she’s not making any promises around level of debt.

“I’m just offering absolute fiscal responsibility in terms of insuring that we’re not placing our council into so much debt that we don’t have we anywhere to move just in case something goes wrong,” she says.

Ms Dalziel says she’s opposed to asset sales as a solution – but is not ruling them out completely.

“I’m opposed to strategic assets being sold, [but] I’m not having a conversation at the moment about what strategic means,” she says.

It is pointless to criticise unless you have a credible alternative.

Debt is a function of spending. You borrow money to fund either an operational deficit or capital expenditure.

There are basically just two ways to reduce debt – spend less, or increase revenue.

If Lianne is saying the Council is spending too much money (which is very possible) she should identify what spending she would chop.

If she is saying the Council needs to increase its revenue, then she should spell out which assets she would sell, or how much more she would increase rates by.

“My final decision to run was only made two weeks ago so I haven’t got a detailed policy platform, but I will have one when I launch [the campaign] formally,” she says.

“I’ve got a couple of months to basically work with a variety of people across the city to put together that policy platform.”

Fair enough not to have it yet, but having blasted the Council for their debt she will in time need to be specific about what spending she would cut to reduce debt – or alternatively which assets she would sell and/or how much rates would increase.

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21 Responses to “So what is Lianne’s debt solution?”

  1. Redbaiter (8,032 comments) says:

    I just despair that NZers or the people of Christchurch feel they need this thoroughly discredted commie to run things for them.

    Don’t they know or remember why she had to resign as a minister?

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  2. burt (8,036 comments) says:

    You seem to be forgetting something DPF – Lefty supporters can’t think past the slogans repeated by their dear leader(s).

    If the Red team candidate says – we will reduce debt – the sheeple will cheer … Yehhh less debt …

    They simply can’t think for themselves – if they could – they wouldn’t be lefties.

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  3. vto (1,128 comments) says:

    what a load of shit farrar

    the last labour government reduced debt

    this national government has increased debt

    pretty fucking simple

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  4. iMP (2,345 comments) says:

    The really amazing aspect of this story was that The Press REPRINTED HER SPEECH IN TOTAL! Don’t think I’ve ever seen the media do that to a poli.

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  5. Harriet (4,616 comments) says:

    Another ‘Hope and Change’ broad talker who offers nothing concrete.

    It’s pathetic that politics and the media has stooped so low. Democracy is crap everywhere in the west because of this.

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  6. flipper (3,847 comments) says:

    vto…
    Such passion., Such crap. Go away arsehole…..,and suck on this from Michael Cullen:

    Did Cullen leave a similar one?

    by Whaleoil on June 25, 2013

    In the UK Labour has been embarrassed by a note left by the outgoing Treasury chief secretary Liam Byrne gloating there was no money left. Michael Cullen may as well have penned his own note given the parlous state of the books when Labour left office here…instead National gave him a job and a knighthood.

    article-2347524-1A7C5F28000005DC-357_634x400

    The Coalition turned the screw on Labour over spending last night, releasing the infamous letter admitting there was ‘no money’ left at the 2010 election.

    Cabinet Office minister David Laws made public the glib note, left by outgoing Treasury chief secretary Liam Byrne for his successor.

    It states: ‘Dear Chief Secretary, I’m afraid there is no money. Kind regards – and good luck! Liam.’

    The letter has haunted Labour, allowing Tory and Liberal Democrat ministers to prove the nation’s coffers were empty.

    On the eve of the latest round of spending cuts, the letter from former Treasury minister Liam Byrne has been pictured for the first time.

    Consisting of just 18 words it offers no apology or justification for the state of the nation’s finances, only a glib ‘good luck’ to whoever was left to clear up the economic mess.

    The letter, written in blue ink on government note paper, was opened by Lib Dem David Laws who became Chief Secretary to the Treasury when the coalition was formed.

    Mr Laws mentioned its existence within days of taking office, claiming he assumed the envelope would offer advice on how to conduct himself in government.

    But he refused to bow to calls from former Tory spin doctor Andy Coulson to release the actual letter publicly.

    As he made the letter public for the first time, Mr Laws claimed he had not deliberately intended for it to be made public three years ago.

    Lib Dem Mr Laws said: ‘I didn’t set out to embarrass Liam, but he left a note which frankly does sum up precisely the state of the Treasury when he left it.

    ‘I think it is refreshing that a Labour politician has been prepared to admit that.’

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  7. KiwiGreg (3,224 comments) says:

    “There are basically just two ways to reduce debt – spend less, or increase revenue.”

    Or, far more obviously, sell assets.

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  8. s.russell (1,580 comments) says:

    Fair enough not to have any idea how she would balance the books? Really? If she really is an independent she does not have to consult anyone else. After all the criticism she has been naking for the past couple of years I reckon she bloody well should know what she wants to do.

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  9. peterwn (3,215 comments) says:

    Her initial best bet would be to float half to 2/3 of Orion (lines company) and the airport. In that way the Council can free up significant value to lower debt while continuing to exercise influence. In its special circumstances there could be a case to allow the Council to go over the normal debt limit as long as the excess is paid back via a supplementary rate (to be clearly shown on rates invoices).

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  10. Redbaiter (8,032 comments) says:

    “Democracy is crap everywhere in the west because of this.”

    So called journalists are a big part of the problem. Note how they don’t ask Dalziel any searching questions. They’re either lefties or educated in the left wing controlled education system, meaning they’re too dumb to know what to ask her.

    If you’re still in any doubt as to whether they will report objectively, check out iMP’s comment above. They printed her entire speech.

    If we had a media that actually did their job, bullshit artists like Dalziel would get the short shrift they deserve.

    Mind you, as Burt says above, the brainwashed public are as much to blame. They will vote for a lefty whether they detail their spending plans or not. Even when she had to resign for lying.

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  11. Paulus (2,565 comments) says:

    Show us the Money Lianne !!
    Oh despite what Norman says he will print it for you.

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  12. hmmokrightitis (1,572 comments) says:

    ““I’ve got a couple of months to basically work with a variety of people across the city to put together that policy platform.””

    And for those who didnt realise what she means…

    “Which of course means Im being paid as a member of parliament to fund my mayoral election campaign, so fucking pay up taxpayers so I can hop to my next trough role”

    The utter hypocrisy is truly astonishing.

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  13. freethinker (686 comments) says:

    The democracy problem is becoming universal in the west – politicians manifesto’s address issues of the moment so when a new issue arises there is frequently no pre declared policy which is why problems occur – Pollies do what they think whilst voters may have a different opinion and are often ignored leading to a scenario of governments becoming the opposition next election. Solution – Binding Referenda – which allows MP’s to effectively consult on contentious issues and is a really useful tool in defending a measure against internal or external pressures with the answer – its the will of the people!

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  14. rouppe (945 comments) says:

    I’m just offering absolute fiscal responsibility in terms of insuring that we’re not placing our council into so much debt that we don’t have we anywhere to move just in case something goes wrong

    I wonder who she’s going to get the insurance from…

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  15. kowtow (7,955 comments) says:

    Free thinker

    Binding referenda are good.But when it comes to public finances, then only net taxpayers should be eligible to vote.I hate the fact that someone else can vote themselves money from my wallet.

    Likewise local body elections.Only ratepayers should be eligible.

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  16. Albert_Ross (270 comments) says:

    Politicians doing what they want without regard to the wishes of the voters ain’t a problem of democracy freethinker, it’s a problem of the absence of democracy. When it comes to fiscal responsibility the problem is more likely to be //too much// democracy. Here’s Lord Macaulay two hundred years ago.

    “A democracy cannot survive as a permanent form of government. It can last only until the voters discover that they can vote themselves largess from the public treasury. From that moment on, the majority will always cast their ballots for the candidates promising most benefits from the public purse with the result that a democracy always collapses from loose fiscal policies, always followed by a dictatorship.”

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  17. Kleva Kiwi (281 comments) says:

    Its easy to criticise, its a little harder to solve…

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  18. iMP (2,345 comments) says:

    Mike Yardley on the Bob vs Lianne Chch mayoralty race.

    http://conzervative.wordpress.com/2013/06/25/mike-yardley-on-the-chch-mayoral-race/

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  19. RF (1,346 comments) says:

    Dear god. If patsy is making statements like this she must be back on the turps.

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  20. Harriet (4,616 comments) says:

    “….I hate the fact that someone else can vote themselves money from my wallet….”

    People who work for a living and are net taxpayers, are now outnumbered by those who vote for an income or part income.

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  21. joana (1,983 comments) says:

    Because she is not sideshow Bob..

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