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Tuesday 22 March 2011

John Key's Zero Budget

We all understand that the country is in a bad state especially after the two earthquakes that hit Canterbury.  We certainly do need to cut expenses to help rebuild Canterbury.

But, we should not forget that prior to all this, John Key's GST increase was the main cause for the current recession/inflation we are experiencing now.  We have had a GST increase prior to this and John Key surely must have known the repercussions that it would bring.  How could he have not known that a 2.5% increase in the GST would provoke the service providers to further hike up their prices in a very disproportionate rate.  Why reduce tax and create a much negative result by increasing the GSTDid John Key make a mistake in his attempt to garner votes?

And then, there were calls to start mining in certain places in New Zealand.  Since New Zealand is located on/close the earthquake fault lines, do we have geologists and scientist assurance that mining (on or close to the fault line) will not to trigger earthquakes?

We understand that the government is sincerely trying hard to bring the country back on its feet.  But, there are many ways going about doing this. Create more opportunities.  Lets build New Zealand as an IT hub, bring in international IT experts to set up bases here with tax relief benefits, build a silicone valley...  Build more universities so that New Zealand can be promoted as an international education hub. Excavating our mineral resources is not the only way out.

John Key's GST increase and lowering of the tax rate just proved that a successful business man may not necessarily be a good prime minister.

Why are the corporate players easily getting off with white-collar crimes?  They swindle millions of public money and escape with just a home detention punishment ? The government then picks up the tabs as a result of this when the victims end up with lost of business, falling sick.....White collar-crime is a criminal offense and should be treated as one. Those found guilty of committing white-collar crimes should be made to return the money swindled, and imprisoned for years. When is the government going to address this issue?

Almost every migrant that comes to New Zealand under the Business Migration category ends up opening a cafe/restaurant/ dairy or saloon.  We have too many restaurants/cafes, dairies and saloons in New Zealand.  So many that most of them are not doing well and are in the verge of closing down.  This is bad for the country.  The Immigration department should look into their Business Immigration policies.  Why not encourage new business migrants to open a different sort of business, something new that could elevate the economy and create more opportunities, instead of creating a competitive business environment that results in other similar businesses to close down.

Instead of selling New Zealand assets to foreigners, why not bring in blue chip investors to invest in new businesses in New Zealand.

We are grateful that New Zealand has a very good welfare system in place.  Welfare is necessary as some people genuinely need it.  But then, there are those who abuse the welfare system.  The government should find ways to bring those on long term welfare to be able to get back on their feet. Training and education is vital here.  Secondly, massive amount of government money is spent on housing and many are in good areas.  Again, there is plenty of money that can be saved here.

I am sure there are lots we just got to have people with the right minds sitting on the round table.

1 comment:

  1. I find your views of GST increase a little simplistic. GST is the only fair tax in that we all pay. No opportunities to evade. We do need to encourage business in this country. Tax rates have been high. It is about time that those who have been heavily taxed get some relief. They tend to spend more so they pay more in GST as well.

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