60 Comments
Feb 1, 2023Liked by Bernard Hickey

Your frustration is becoming more obvious and I don’t blame you. There is no valid excuse for extending the rebate for all, surely it could have been done for community card holders or similar again

Expand full comment

Bernard do you think wellington PT investment is also likely to come into the firing line?

Expand full comment
author

Yep. LGWM is in trouble too.

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

We should also remember that many of these Ford Ranger Man type of voters are claiming their fuel costs as a business expense. That's why they bought the Ranger in the first place.

It is extremely frustrating. So many things could be done to ease the pressure and they fail at it time and time again.

If removing GST from fresh produce is complicated why not roll back the GST increase (or abolish the damn thing all together. I'm tired of being the govt's free of charge enforcer & administrator of GST) and bring higher income tax bracket and/or land value tax? That's a lot of money back in the hands of those who need it most.

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

Hi Merav

I was parking mid-morning in a central city car park recently and I paid attention to how many double cab utes were parked there. One or two had a business name on them, none were dirty as if they'd just come off the farm, so it seems most are just a lifestyle thing.

But it does worry me. What would the mental health statistics for NZ look like if all these people were to lose their double cab ute (placebo)?

Expand full comment

The rules as to how much the vehicle needs to be marked to be considered work vehicle are very flimsy and many businesses just walk the fine line.

I'm still waiting for the politician with enough guts to say enough and get over yourselves.

Expand full comment

Couldn't agree more. A family member has a company car and the lettering is small and is a slightly different shade of blue to the car's colour. Very hard to notice.

I'd go as far as to specify a standard (lots of big writing / graphics) and say if you meet that standard then you're not liable for Fringe Benefit Tax. But you have to supply an image annually to prove it.

Expand full comment

No need to have a signwritten vehicle to claim business use mileage. I think signwriting helps in terms of strengthening the claim that a vehicle is a business vehicle to 'avoid' FBT for private use of a business asset, but even then, I think the acid test is whether private use is disbarred by the agreement with the employee about the provision of the vehicle.

Either way, the number of sign written vehicles bears little to no relation to the number of drivers claiming vehicle expenses through their business.

Expand full comment
author

I certainly think excluding food would help and wouldn’t be that hard. There are a bunch of thing not included now, including financial services…

Expand full comment

The problem with exemptions, e.g. for food, is you can get the hilarious situation in Australia where they exempt food and that somehow (until 2019) included sanitary pads but not tampons. If we have a system with exemptions we'd also have to employ more bureaucrats.

Wouldn't it be better to have the simple comprehensive system we have and include financial services etc. Then with the extra revenue from the inclusion of new items, we can reduce the rate.

Labour could then make the argument we don't want to employ more bureaucrats, appealing to National's sentiments, and we want it to be revenue neutral, quoting John Key.

That should be a win-win!

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

Madness, but unfortunately it makes political sense. Just need to get rid of it after they win the election.

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

How to address the cost-of-living crisis in one act.

Scrap GST and replace it with a Financial Transaction Tax (FTT).

Your supermarket bill is now at least 10% lower. The same for your rates, power and petrol.

But won't the FTT have to be high to get the same income for the government? Well, no. Because the FTT is on ALL spending it will catch those parts of the economy that have had it so good such as banksters and property, currency and share market speculators.

Expand full comment
author

Interesting idea. Would make cash deals a bit more popular

Expand full comment

Hi Bernard

Think about it. Where do you get the cash from? Take it out of an ATM and, bingo, you've just spent the money. Maybe a pub could keep hold of some of its cash takings until the wrong people hear about all this cash you're holding on to.

Sure, there'll be some cash activity, but the percentage would be miniscule. It's not a deal breaker.

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

Please open this up, Bernard. We need to be raising this every day until the election. Ford Ranger Man is not a Labour voter anyway. I'm so grumpy that we are generously subsidising burning fossil fuels while simultaneously mopping up our biggest city. It is beyond stupid!

P.S. Nice dry Wellington will have you back whenever you get sick of the humidity and plague of mozzies that are coming.

Expand full comment
author

Thanks Sonya. Will do.

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

I'm pretty sure that at this very moment, $700m of fuel tax would go a long way to fix some critical highway infrastructure across Auckland to Northland and Coromandel given the damage from the recent rains......

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

In American political discourse they have an unfortunate habit of mischaracterising these parts of the electorate as “moderates”, as if their self-interested political preferences sit between the nominal extremes of left and right wing.

The language of “swing voters” does much the same.

In reality we’re talking about a portion of the population who are most open to voting to whomever gives them personally the most pork and have interest in policy beyond how it affects themselves. It’s a reactionary vote, it’s inherently conservative.

Expand full comment

This must be released Bernard, incisive as usual. You can have my trope " Urban Ford Ranger drivers thumbing their noses at their grandchildren",

Patrick Medlicott

Expand full comment
author

Love it. Will do

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

If anyone is interested in how we engage people in talking about climate change, I highly recommend US scientist Katherine Hayhoe's book " Saving Us". It's all about why talking about climate is important, who you shouldn't waste your time on (think antivaxxers), how to connect with people through shared interests and how to focus people on the better world we could have if we implement solutions that already exist. It's completely opened my mind to talking about climate every day without ruining my mental health. Highly recommended!

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

I thought MMP was designed to break the Lab/Nat stronghold. Voters have more than 2 options. Any ideas on this?

Expand full comment
Feb 1, 2023Liked by Bernard Hickey

Please share. Some of us have taken to calling it the Ford (r)Anger, due to the ...err..."dominant" style of Ford r(Anger) drivers. The Ford r(Anger) Man must be appeased whether it be making way for them to push in to highway queues or prioritising their demands over other community members and the environment in politics.

Expand full comment
author

Ha!

Expand full comment
Feb 1, 2023·edited Feb 1, 2023Liked by Bernard Hickey

I think the continued points around Ford Ranger Man are so important. Especially points that the kids of Ford Ranger Fam (to be modern) will move to countries offering higher paying versions of jobs. Offered with the choice of income, it is growing to be incredibly hard (for at least my finacée and I, who are in an extremely privileged situation but are renting) to say no to overseas money.

The continued purchasing of votes for Ford Ranger/Summertime Showoffs (directly referencing the boat/jetski and possibly the bach in your choice of favourite kiwi holiday destination) through having a very passive and narrow sighted economy is actually disgusting. Why build a stable economy just to let sit there? (Well, you've outlined why Bernard, but it still frustrates me) With climate change knocking loudly and on the dynamic and brutal piece of rock we live on here in Aotearoa, the economy will end up having to borrow anyway to pay to move people and do repairs as events like those in Ōtautahi and Tāmaki Makaurau occur.

How about, I don't know, do a study and act on providing a scheme that recharges an economy that works for Aotearoa in a way where we start to invest in that infrastructure, provide intergenerational investment and make progress to bridge this awful gap between rich and poor by choosing investment options that stimulate accross the board. As to the stimulator? Engineer a low energy consumption economy? Let a computer decide? Just some sort of vision that isn't housing and dairy, PLEASE!

Expand full comment

I think NZ needs to stop looking at the likes of the US and UK and copy what they do and start looking at those none English speaking countries like Finland (that even has similar population size!) and copy from them.

Expand full comment

Agree, and I see that Finland is at approx 69% GDP debt, helps when you trade so much with Germany I guess. I'm not too familiar with how well Finland is going with infrastructure and environmental regulation (or Finland economics!). Would love to know how the Fins feel about their own country.

Expand full comment

Christ Bernard, you sounded pretty grim there. Not sure reporting on the same depressing matters every day is good for you personally.

Maybe branch out into some other topics.

Or start the kaka party haha. TOP is probably closest. In their own attempt to make their policies more retail they have dropped UBI type policies and are now proposing a straight tax swap - introducing a .75% tax on residential land (unimproved value) in exchange for equivalent but hefty income tax drops, particularly an aussie style 15k no tax band.

Expand full comment
author

Thanks. I find reporting and thinking about this quite energising in that the more I look at it the more I understand where the opportunities for change are.

Expand full comment

Bernard for Prime Minister... please. Your articles are always spot on but frustrates me so much. Sadly that frustration is becoming anger. But there is with hope with people like you exposing those facts. We need to spread the word as much as we can it in order to shift the mindset of voters. Keep up this amazing journalist work.

Expand full comment
author

Thankyou PT. I’ll keep writing. Sometimes stuff changes.

Expand full comment

A creative solution to the Three Waters and GST challenges would be to remove GST from Three Water charges, or at least the financing component., by far the biggest cost of providing Three Waters. Currently, councils charge GST on water charges, including any financing charges. For instance, if they invest in new infrastructure to provide sewage, properties in the area of benefit have to pay GST on financing costs, while councils get the finance GST free from Government. Alternatively, GST could be charged on mortgages. That would go down well with the banks!

Expand full comment
author

Great idea!

Expand full comment