Labour claims surplus a fake!

May 12th, 2014 at 9:00 am by David Farrar

Stuff reports:

has questioned whether the Government is keeping money from Canterbury’s earthquake recovery to improve this week’s budget. 

The Government has already confirmed just under $1 billion of new spending will be included in Thursday’s budget, as well as a small .

However, Labour leader David Cunliffe told Radio New Zealand he understood the surplus would be achieved only with “smoke and mirrors”. 

He queried whether funds meant for Canterbury’s earthquake recovery had been held back to make the Government’s books look better than they were.

This shows a high level of both paranoia and economic illiteracy.

The surplus that will (I presume) be projected on Thursday is not for the current year. It is for the 2014/15 financial year.

If there have been delays in spending money for Canterbury earthquake recovery, then it will reduce next year’s surplus, not increase it. The surpluses are about future projections. Hence to maximise them, you’d actually want as much Canterbury spending as possible to take place in this current financial year – rather than next year.

Also if some Canterbury spending is capital, not operational, then the impact of when it is spent on the Budget is minimal – depreciation only – if applicable.

So basically overall the claim is nonsense.

Tags: , ,

33 Responses to “Labour claims surplus a fake!”

  1. YesWeDid (1,048 comments) says:

    Key said on Radio Live this morning that there would be a budget surplus so I guess that makes it official.

    Vote: Thumb up 2 Thumb down 6 You need to be logged in to vote
  2. kaykaybee (152 comments) says:

    The public of NZ can now see for themselves that Labour is bereft of commentators with even fundamental economic literacy.

    Vote: Thumb up 18 Thumb down 0 You need to be logged in to vote
  3. igm (1,413 comments) says:

    “Tojo” Cunliffe is getting top billing by radio, Tv, and print media. It is so bad, I am sure the editor of “Manawatu Standard” is publishing verbatim, editorials prepared by Andrew Little. The latest is a straight Labour propaganda piece. These losers are hell bent on ruining this country, supporting scum such as Labour/Greens.

    Vote: Thumb up 15 Thumb down 2 You need to be logged in to vote
  4. Pongo (372 comments) says:

    and it wont be very popular move by Dyson or Cunliffe either, we Cantabs don’t appreciate being made to look as if we are whinging moaners who are bankrupting the country. We arnt and we have lots of assets we can flog off to cover our end.
    Dalziel has turned into a disaster and as a lot of people feared she still wears her Labour colours which is the last thing we need. The report is totally worthless as the insurance hasn’t even been settled yet so if you don’t know if you are getting a billion or 300 million how can you estimate.

    Vote: Thumb up 16 Thumb down 0 You need to be logged in to vote
  5. mikemikemikemike (325 comments) says:

    ummm even National know that this is a complete number fudge of a surplus. I think thats why English has been so quiet on it. I agree Labour are being stupid. But National is not exactly beating it’s chest over it.

    It will be a paper thin surplus that keeps an election promise by the slimmest of margins – and only achieved by doing some clever accounting. I’m going to give them my vote again in the expectation that the next 3 budgets will be much more substance than style.

    Vote: Thumb up 3 Thumb down 13 You need to be logged in to vote
  6. jp_1983 (213 comments) says:

    Just think if the green Taliban gets in. (Hopefully not) Russell will mint a trillion dollar coin and our surpluses will be for evermore…
    Take that national…

    Really it is rich to accuse national of cooking the books because that is exactly what labour did in 2008 and we have just recovered.

    Vote: Thumb up 8 Thumb down 0 You need to be logged in to vote
  7. MT_Tinman (3,204 comments) says:

    Pongo (361 comments) says:
    May 12th, 2014 at 9:09 am

    Dalziel has turned into a disaster

    No she hasn’t – Dalzeil was always a bloody disaster.

    The idiots that voted for it should never be allowed to vote again!

    Popular. Like or Dislike: Thumb up 20 Thumb down 0 You need to be logged in to vote
  8. Positan (390 comments) says:

    re kaykaybee – surely you mean “elemental” – not “fundamental.”

    Labour and all its buffoon-like posturers exhibit absolutely nothing akin to economic literacy.

    Vote: Thumb up 5 Thumb down 0 You need to be logged in to vote
  9. igm (1,413 comments) says:

    mikenwimp: You fiscal literacy is on a par with that of the political scum you support. Why don’t you and your ilk realise you are second rate citizens and your opinions are about as valid as that of your the lying “Tojo” or his financial spokesman Parker, he who went broke in good times in a small venture. You are, as all your associates, a loser!

    Vote: Thumb up 6 Thumb down 1 You need to be logged in to vote
  10. wikiriwhis business (4,019 comments) says:

    Everyone knows the National govt diverted international giving to Canterbury for roading

    So this revelation wouyld be no surprise suffice to say Labour would do the same.

    Besides, it’s not the public’s fault they can’t save, it’s govt spending on roading elephants and trivia that’s wasted funds through the decades.

    Vote: Thumb up 0 Thumb down 11 You need to be logged in to vote
  11. burt (8,275 comments) says:

    igm

    or his financial spokesman Parker, he who went broke in good times in a small venture.

    Parker, the roll-over and re-launch under a different name property developer…. Perfect example of Labour core values.

    Vote: Thumb up 11 Thumb down 0 You need to be logged in to vote
  12. ross411 (842 comments) says:

    mikemikemikemike (249 comments) says:
    May 12th, 2014 at 9:14 am
    ummm even National know that this is a complete number fudge of a surplus. I think thats why English has been so quiet on it. I agree Labour are being stupid. But National is not exactly beating it’s chest over it.

    Why do you think National knows it is that? I can’t see how you’re getting that.

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  13. Komata (1,191 comments) says:

    …And, of course if you vote LABOUR everyone, but everyone, will have so much money that we will never, ever be poor again…

    But you, customers, our dear, wunnerfull ‘working’ people of New Zealand, will get this wonderful gift ONLY if you vote labour, voe labou, vo la………….. (terrible echo here – must get it fixed)

    (sorry, distracted, just saw a pink pig flying backwards with a rake in its hooves, pushing some water before it ).

    Vote: Thumb up 0 Thumb down 1 You need to be logged in to vote
  14. Pete George (23,591 comments) says:

    ummm even National know that this is a complete number fudge of a surplus. I think thats why English has been so quiet on it. I agree Labour are being stupid. But National is not exactly beating it’s chest over it.

    I think we need to wait until Thursday before we know:
    a) what if any surplus is budgeted
    b) how much chest beating there will be.

    I predict that National will give themselves some campaign ammunition.

    Vote: Thumb up 1 Thumb down 1 You need to be logged in to vote
  15. adamsmith1922 (890 comments) says:

    At this point the only fake and flake I see is someone called David Cunliffe claiming to lead a united Labour Party.

    Vote: Thumb up 6 Thumb down 0 You need to be logged in to vote
  16. adamsmith1922 (890 comments) says:

    One of the most scary things about this election is the increasing amount of financial illiteracy being demonstrated by Labour and the Greens; this is in addition to their campaign of deception and misinformation so eagerly lapped up by the MSM.

    Vote: Thumb up 13 Thumb down 0 You need to be logged in to vote
  17. burt (8,275 comments) says:

    adamsmith1922

    Labour are required to campaign using deception because their entire ideology of high taxes and high government spending always ends in ruin. They know, rational sensible people know it – people wanting other peoples money don’t want to know it so they believe the BS.

    Vote: Thumb up 10 Thumb down 0 You need to be logged in to vote
  18. Yoza (1,879 comments) says:

    All governments fudge the books to make their regime appear more financially stable than they say. An incoming Labour/Green coalition would be mildly different than the current National administration, our coordinator class is beholden to foreign financial institutions and is not allowed to make any sudden moves that might threaten the perceived legitimacy of Western economic orthodoxy. (Although a Labour/Green coalition coming to power will cause a rain of blood and usher in a thousand years of darkness!)

    Vote: Thumb up 2 Thumb down 9 You need to be logged in to vote
  19. RightNow (6,994 comments) says:

    “Although a Labour/Green coalition coming to power will cause a rain of blood and usher in a thousand years of darkness!”

    Finally, a credible policy announcement.

    Vote: Thumb up 8 Thumb down 0 You need to be logged in to vote
  20. adamsmith1922 (890 comments) says:

    Yoza just makes the point that many on the left are myopic at best and grotesquely self delusional in the main.

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  21. Kea (12,841 comments) says:

    (Although a Labour/Green coalition coming to power will cause a rain of blood and usher in a thousand years of darkness!)

    Yoza finally gets an uptick for making sense :)

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  22. adamsmith1922 (890 comments) says:

    Of course when considering fakery let us not forget how in 2008 Michael Cullen spoke of structural surpluses, which did not exist. Furthermore he was proud of scorching the economic earth so that the cupboard was bare when National came to power. Fakery, well Labour knows all about fakery, after all it is their only stock in trade.

    Vote: Thumb up 10 Thumb down 1 You need to be logged in to vote
  23. alloytoo (546 comments) says:

    Labour’s economic credentials don’t exactly instill confidence, especially after Parker’s Billion dollar mistake last week.

    Vote: Thumb up 5 Thumb down 0 You need to be logged in to vote
  24. tom hunter (4,894 comments) says:

    …. our coordinator class ….

    The sole “intellectual” development of the anarchists over the last 100 years. What a triumph. Perhaps the next century will see the divination of some other new class that can explain why anarchism always fails.

    Vote: Thumb up 2 Thumb down 0 You need to be logged in to vote
  25. Yogibear (366 comments) says:

    If the surplus is less than $50 million, its pretty clear what happened. The announcement last week on changes to tobacco tax rates/duty free (which raise $50m) smell awfully like the the lever that got pulled to manufacture a surplus (especially given the tax take drop in the last 6 months).

    Kinda a case of form over substance. The economy has been managed well and is tracking in the right direction, but it was always going to be touch and go on a 14/15 surplus.

    Point is, the fact Bill English got close enough to surplus so all he needed to do was whack smokers with a higher tax is an achievement in itself

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  26. emmess (1,428 comments) says:

    Something that really annoys me is when the left moan about the economy doing better because of the Christchurch rebuild.
    Hello, this is your Keynesian economics, stimulus, sound familiar? It is what your while economy ideology is supposed predicated on.
    Then they have the nerve to complain about the level of debt.

    Vote: Thumb up 4 Thumb down 0 You need to be logged in to vote
  27. Rich Prick (1,705 comments) says:

    OK Cunliffe, if a surplus can only be achieved by “smoke and mirrors”, then there’s nothing left to fund political parties. So sod off.

    Vote: Thumb up 9 Thumb down 0 You need to be logged in to vote
  28. Yoza (1,879 comments) says:

    tom hunter (4,060 comments) says:
    May 12th, 2014 at 10:48 am

    The sole “intellectual” development of the anarchists over the last 100 years. What a triumph. Perhaps the next century will see the divination of some other new class that can explain why anarchism always fails.

    I doubt you could point to an example of anarchism ‘failing’. The only experiments of anarchism in practice which I am aware were wiped out by force, perhaps you know something I do not and could provide an example of this ‘failure’.

    Vote: Thumb up 0 Thumb down 1 You need to be logged in to vote
  29. Yoza (1,879 comments) says:

    adamsmith1922 (885 comments) says:
    May 12th, 2014 at 10:34 am

    Yoza just makes the point that many on the left are myopic at best and grotesquely self delusional in the main.

    The ‘free-market’/neoliberal agenda has been a tactical success, large chunks of the global economy have been handed over to private financial interests to be used as funds for a gambling on the planet’s casinos – the DJI, the Nasdaq, the LSE and the like. Strategically it has been a massive disaster – the 2008 collapse of the financial system being just one consequence of private finance organising the system to suit themselves.
    When a system has finite resources and a demographically insignificant, yet institutionally powerful,self serving group accumulates a greater and greater share of those resources then lends them back to those off whom they have usurped them they create a negative feed back. Now those who have been lent resources are required to part with more of their own holdings to cover the cost of the interest on the loan, which sees an even greater share of the planet’s resources end up in the hands of the greedy few, ultimately those on the bottom (the 99%, if you like) end up with nothing to cover the cost of the usuriously imposed interest payments, and as Michael Hudson points out – Debts that can’t be paid, won’t be.


    A common denominator runs throughout recorded history: a rising proportion of debts cannot be paid. Adam Smith remarked that no government ever had repaid its debt, and today the same can be said of the overall volume of private-sector debt. One way or another, there will be defaults – unless debts are paid in an illusory fashion, simply by adding the interest charges onto the debt balance until the sums finally grow to so fictitious a magnitude that the illusion of viability has to be dropped.

    That ‘common denominator‘ is now on hyper steroids as greater sums are invented and zapped around the various financial casinos at close to the speed of light.

    There will be another financial collapse, it is demanded by logic. No amount of waving volumes of Randian dogma around in your sweaty little hands will prevent such an event.

    ‘Free-market’ theory in practice has been tactically brilliant, but ultimately a strategic disaster.

    Vote: Thumb up 0 Thumb down 6 You need to be logged in to vote
  30. tom hunter (4,894 comments) says:

    I doubt you could point to an example of anarchism ‘failing’.

    Not having a single success to point to counts as failure. You going to rant about Catalonia?

    Vote: Thumb up 1 Thumb down 0 You need to be logged in to vote
  31. Yoza (1,879 comments) says:

    Are you saying the Catalonia experiment was a failure? Do you know that Stalin ordered the elimination of the senior members of the anarchist groups? Would you say there is a tangible difference between totalitarianism and the illusion of democracy under the current manifestation of corporate plutocracy?

    Vote: Thumb up 1 Thumb down 2 You need to be logged in to vote
  32. OneTrack (3,114 comments) says:

    Yoza – “Would you say there is a tangible difference between totalitarianism and the illusion of democracy under the current manifestation of corporate plutocracy?”

    Yes, I would. I dont see many evil neolibs forcing their political enemies (or friends) into trains and sending them off to the gulag.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  33. Yoza (1,879 comments) says:

    Yes, I would. I dont see many evil neolibs forcing their political enemies (or friends) into trains and sending them off to the gulag.

    They don’t need to transport people anywhere when they have the resources to turn entire nations into gulags by invading them or bankrolling despots. Don’t forget that David Cunliffe is not John Key’s political enemy, they are two sides of the same coin – like every other Western government/’opposition’ they exist to promote an illusion of democracy to prevent an actual outbreak of democracy.

    “The two greatest obstacles to democracy in the United States West are, first, the widespread delusion among the poor that we have a democracy, and second, the chronic terror among the rich, lest we get it.” Edward Dowling

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote