42 Comments

Of course Luxon is against a CGT, it would personally cost him money! The last thing he will agree to is a diminution of his personal wealth. He is a perfect example of the inequality in our country. If as he says, the country needs ‘growth’, why is he the leader of a government hell bent on stopping the growth we need? Infrastructure is a way of getting that growth he is so in love with, yet all they have done so far is stop projects. When the Mainfreight boss says that an integrated transport system of rail and road is needed, why does the government not appauled him?

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I feel it is more of a case of they have a plan and these comments from business leaders has caught them off guard. That whole I was a CEO shuck to me was that she was not part of the club that he was. It would be nice to know if Luxon has dual citizenship of Australia or USA? Both his children went to Australian universities, which would be $$ if they were not Australian. Also timing of his property sale could almost be tax planning for USA federal tax?

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By all accounts he has been a mediocre Executive and CE

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With the examples of lobbyists becoming ministers (tobacco, guns, fossil fuels, etc), I have no hope in the principles of “conflict of interest” of this government… mainly when most MPs are serial landlords… As such, they should not be allowed to drive judgment on house-related taxation. That should be the premise of an independent taxation authority that operates under a similar structure as the treasury. Taxation should not be political.

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I suspect that while at school Luxon wanted to be a bully, but wasn’t up to it - while Willis would have been one of those mean girls. Now, when under (justified) scrutiny they react nastily, attacking the messenger as they have no evidence supporting their stance.

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Sep 25Liked by Bernard Hickey

Antonia Watson’s read the room and sense of social licence is better than Luxons. It’s really thin ice now even the ANZ CEO is calling for a rethink on CGT

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Sep 25Liked by Bernard Hickey

I have a more cynical lens, Antonia Watson is reading the tea leaves on the NZ cash cow drying up without some fundamental change. Getting on the CGT wagon to keep Daisy turning up for milking ensures fat future margins for ANZ

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Sep 25Liked by Bernard Hickey

Exactly! The government are clearly being blindsided by the discussion about CGT: Willis was absolutely floundering on Morning Report, trying to claim a CGT designed to reduce residential housing speculation would somehow stall business investment... However (as an "ex-CEO", but now a politician), Luxon surely must understand that it is Watson's job to make money (not redistribute it to society), but *his* job is to redistribute common wealth to society (not deliver profit for his executive team). Surely?? 🤣

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Sep 25Liked by Bernard Hickey

Yes it won’t be out of a sense of altruism for sure, but still is more based in reality? That said ANZ are also members of NZ initiative which I would say is not sitting on the fence when it comes to broadening the tax base in the way. https://www.nzinitiative.org.nz/reports-and-media/opinion/spending-cuts-versus-wealth-taxes/ Pulling ANZ out of NZI would be sending a much stronger message than a chit chat with guyon.

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Interesting to see this alternative take from Kent Duston on LinkedIn (have a great deal of respect for Kent, his mahi & the stands he take) - apologies for ugly link: https://www.linkedin.com/posts/kent-duston-52a2434_christopher-luxons-crack-at-anz-boss-over-activity-7244649064485568512-rr6V?utm_source=share&utm_medium=member_android

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I do think her statement is one made out of self interest and perhaps the self interest of all the big banks. The big end of town wants a pause for thought from the government.

But it’s been lost on them.

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Sep 25Liked by Bernard Hickey

The more people who can see this, Bernard, the better... This government's entire re-election strategy is a gamble that property prices will begin to rise again. That's what the people who voted them in want.

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Sep 25Liked by Bernard Hickey

Seems obviously oxymoronic that this govt expects greater productivity while reducing numbers, disturbing workplace harmony, and demoralising Public Servants who might otherwise be helping them achieve productivity gains across the economy.

It’s all too reminiscent of a comment, apparently made by David Lange, that cabinet had given no formal consideration of the social cost of his Governments sweeping changes to the Public Service.

These people seem to be so focused on a mythical future that they are incapable of learning anything from the past.

So we are all condemned to wear the consequences.

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Sep 25Liked by Bernard Hickey

This is very depressing except for Mainfreight's support of rail enabled ferries. Go Mainfreight! I think our roads are already overrun by large trucks and the damage they do to our roads (and the potholes caused by those double decker buses on Waiheke) is absolutely a huge problem. I am thinking about low emissions areas such as those in London that have been a big success and then I observe heavy vehicles driving through our inner city to transport containers from POA. Such a pity the trains don't go straight to the POA. One simple thing Simeon could do, is to concentrate on safety on our roads by introducing more traffic calming methodologies and introducing leglisation to keep heavy vehicles in the slow lane on highways, and to keep them out of city centres and driving through villages. But I guess that's way too easy. Sigh, heavy sigh!

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Sep 25Liked by Bernard Hickey

Luxon keeps coming out with statements that really make me wonder if he knows how the economy works at all. taxes don't take money off New Zealanders - tax dollars get spent back into the New Zealand economy. Compare that to money spent on mortgages, that disappear off to Australia...

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Sep 25Liked by Bernard Hickey

Certainly sounds like he thinks ANZ are the tax collectors in his response. How bizarre!

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I agree with Tony Pomfret. Our supposed leader is a rich p…. Who “rorts” the system as the Aussies say. Housing should be a human right not a business opportunity.This is a gross and blatant conflict of interest from one who is unable to lead for all NZ’ers. Gvt by the rich for the rich. Growing the “economy” does not “raise all boats” when it just increases the gross inequality seen in the US as in your graph Bernard. Maybe “Bald heads “ should roll. As for Bill English doing a job on “kaianga Ora” so his Harvard business school daughter can make a profit from “social investment”. Pleesee!

Patrick Medlicott

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Sep 25Liked by Bernard Hickey

Might require a revolution.

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Sep 25Liked by Bernard Hickey

Luxon's comments are completely emotive and NASTY. Once again he makes it personal to dilute any criticism and distract from the issue and his own incompetence.

But sadly RNZ enables this by beginning their 'report' with "The coalition government has "put the boot into ANZ's boss after she threw her weight behind a capital gains tax" You can just hear Luxon's mates and donors who are in the Club, and maybe a fair few RNZ listeners who aren't in the Club but aspire to be, muttering - "Yeah Yeah - put the "B****H is her place.

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So now we have housing development being thwarted because adjacent land is rezoned to reserve. You might think that the developer would welcome that as the per house price could increase because of the proximity of a reserve.

The Ministry of Transport must be mighty peeved with Simeon Brown to provide and release that advice on making evidence-free decisions on roading. Although Mr Brown was well aware that he was making announcements on roads of national significance without having up to date costings and benefits as he confirms in this response to an information request in May this year https://fyi.org.nz/request/26770/response/102373/attach/4/OIA24%20224%20Response.pdf

(An aside - Note the lack of dating of this correspondence - a shabby practice I have noticed in letters from and advice to several ministers.)

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Sep 26Liked by Bernard Hickey

It might be useful to bring that to the attention of Peter Boshier, Chief Ombudsman.

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Sep 25·edited Sep 25Liked by Bernard Hickey

Luxon discovers that the CGT and property tax debate extinguisher isn't working.

And, in Australia, which has CGT, the debate continues

https://theconversation.com/the-government-is-reviewing-negative-gearing-and-capital-gains-tax-but-this-wont-be-enough-to-fix-our-housing-shortage-239813?

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author

Great spot. Thanks Caryl.

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The NZ money going to Australia will hopefully benefit the young smart NZrs who are also going to Australia by the planeload.

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Simeon Brown making decisions 'on the back of an envelope' is about right. In the recent Listener Danyl Mc Lauchlan describes him as one of the most capable ministers in the coalition cabinet! I shudder daily and am grateful for the kākā's wisdom.

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When the PM said yeterday that he "as a CEO know what she is trying to do", I wished the journalists there asked him what he meant by that?

Perhaps I am making a mountain out of a mole hill, but I do think that those in between comments are meaningful. Just wished that statement was challenged more at the time.

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Agree!

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Don't trust him to know what he is doing, let alone others

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