Labour’s job plan

As far as I can tell most of Labour’s so called job plans, is to have more inflation and have prices go up. Here’s the speech, and my comments.

Our policies will ensure our high and volatile dollar doesn’t undermine the competitiveness of our exporters.  We’ll give them the best possible opportunity to succeed.

We are a trading nation. We can only grow wealthy if we export.

That means an independent Reserve Bank that’s given a wider mandate to support exporters and jobs, not just focus on inflation.

Make no mistake – this is the deluded belief that having more inflation will lead to more jobs. I thought the 70s killed off that idea. Any gain in jobs from more inflation is temporary. It’s like a quick sugar fix. You feel good at the time, but get bloated.

We’ll pursue pro-growth tax reform that includes a capital gains tax to take pressure off house prices and ensure people invest in businesses, not the Auckland property market.

Umm, are you seriously suggesting taxing the capital gains people make from their businesses will lead to more investment into businesses? There are some sound reasons to have a comprehensive capital gains taxs – but it is snake oil to try and suggest it will lead to more investment into businesses.

And a research and development tax credit that rewards ingenuity and encourages innovation in our businesses.

Actually, they encourage people to reclassify their expenditure as R&D. National does R&D grants, Labour prefers tax credits. The difference is not going to impact jobs much.

President Obama brought in a “25% rule” for stimulus projects. Unless a foreign company is 25% cheaper making a product, the work should be contracted to a US company.

Australia has other checks for local contracting as does Singapore and many other countries.

That’s why we’ll ensure government agencies contract New Zealand businesses wherever possible. To build businesses, jobs and skills.

Note that Shearer has not said he will bring in such a rule. He has just said Obama has. He knows under CER such a rule would be illegal. He is trying to con people into thinking Labour will have such a law.

Labour will also introduce a ‘one in a million’ target for significant government contracts.

It would require companies that are awarded major contracts to take on one apprentice or trainee for every $1 million contract it receives.

Oh Good God, and they’ll sack an employee at the other end if they don’t need that many staff. The Government can’t dictate staffing levels to a business. Again this is pure snake oil – sounds good, but won’t do anything.

We’d raise the threshold so that businesses need to prove they’ve engaged with WINZ and Industry Training Organisations before they get approval.

We’d require Immigration NZ to consider the competitive impacts, particularly on wages and conditions when it considers granting an approval to bring in temporary workers.

I’d also like to see conditions about wages and working conditions attached to the employer’s approval. And, where it’s appropriate, to require the employer to offer apprenticeships to young New Zealanders.

Finally, an actual policy that may impact jobs. But there are no details. Anyone can say raise the threshold. I do not disagree that work permits should only go to people, when no NZer can be located.