$400M cost to economy to Mondayise holidays

Labour politicians really know how to wreck an economy.

The Department of Labour has advised the Government against “Mondayising” Anzac and Waitangi Day holidays when they fall on the weekend, citing economic costs of up to $400 million.

Prime Minister John Key this afternoon said he’d now received advice from the Department of Labour on the issue after Labour MP David Clark’s Members Bill, which would give workers a holiday the following Monday when Anzac or Waitangi Day fell on the weekend, was drawn from a parliamentary ballot last week.

The advice pointed out that the next time either day fell on a weekend was in 2015 and it was not until 2021 that both Anzac and Waitangi Day fell on a weekend in the same year.

The department had told Mr Key the cost to the economy for an individual day if Mondayised was $200 million or $400 million in a year when both were Mondayised.

“The recommendation from the Department of Labour is not to Mondayise them,” Mr Key said.

it is bad enough that Len Brown is intent on wrecking the Auckland economy with 13 new tax ideas, but David Clark’s $400 million sting to Kiwi businesses really needs to be ignored.

If Labour wants to wreck the economy in this way then let them do it from the government benches when they eventually return to power.

National meanwhile should stay well away for it.

 


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  • Pete George

    Did the Department of Labour cost anaysis take into the account the economic benefit of recreation, retail and holidays that a Monday holiday and a long weekend may provide?

    Did it take into account the fact that in many occupations employees can be as productive in a four day week as they can in a five day week?

    • Honcho

      ANZAC day is not a day for retail and recreation, nor should it be just another three day weekend.

      If so many brave young men can make sacrifices so great, then we as a nation can get over our own pety wants and sacrifice one single day off every few years when it falls on a weekend.

      Think before you speak.

      • Dr Wang

        Totally agree Honcho – they are more concerned for their own pleasures than respectfully commemorating the soldiers who fought and died for our freedom.

      • Pete George

        Since I was young Anzac Day was always – morning for commemoration, afternoon for recreation (not just elbow bending at the RSA). We always had the morning march and town hall ceremony, but there were annual sports fixtures in the afternoon.

        And more recently pm has very definitely been retail too.

        In any case if it’s Mondayised the Anzac Day events will still be held in the weekend on the 25th, with a full holiday on the Monday.

      • Gazzaw

        Totally agree Honcho. Anzac Day means a lot to me personally. I have a grandfather, father & two uncles to remember. None of those good men were wowsers though & would not expect us to spend a full day in sackcloth & ashes to remember them.

    • Gazzaw

      Good comment Pete. This will be an excellent fillip for the domestic tourism & hospitality sector. Retail will also do well. I am in no way a socialist but I can well recall that industry made similar predictions of economic ruin with the abolition of child labour and the introduction of the 40 hour week. Bloody hell, let’s get this into perspective we are talking about the introduction of two extra days leave for two years out of seven.

      • Pete George

        That’s the maximum. When leap years coincide we will sometimes skip them.

        Next time round both Waitangi and Anzac days skip a weekend day.

    • Thorn

      If employees can be as productive in a four day week as they can in a five day week, then the workforce should be cut by 25%.  

      For those wanting additional long weekends, use annual leave. 

  • Anonymous

    What is it with the so called wanker’s worker’s party trying to get people to do as little work as possible?

  • fact/realitycheck…the crocodile tears being shed over the costs of this proposal..

    ..are being shed by the ‘financial’economic-wizard’ who is mortgaging our children/grandchildren to the tune of $300 million..

    ..each and every week…

    ..to pay for the tax cuts for the elites/richest…

    (..it’s ok..there’s no need to pass me the tissues…key is the one who needs them..)

    [email protected]

    • Gazzaw

      Every day is a paid public holiday for you Phil so really no need for you to comment.  

    • Honcho

      The rich still contribute more net tax then lazy, selfish indivuals such as you.

      Why dont you stop ‘mortgaging’ this countries mokopuna, by getting off state assistance and contributing. At least then you will be able to pass these sorts of comments without the hypocrasy.

    • Doug_S

      You have to earn money to pay tax Phool. Oh yes perhaps I should pay more tax to prop up bludgers like you and those “poor” people that have been in that state house for 47 bloody years. 

    • In Vino Veritas

      Oh phillip. Tax cuts indeed. You will realise it is hard to cut taxes to those that do not pay them, so of course any changes to the tax rates will affect those who earn the most. Therefore you are arguing that anyone who is not a net beneficiary is eliterichest. Also, the tax rates I believe, were only put back to the levels they were in 1999, before Labour felt they had to double Wellington bureacracy and spend anything left over bribing voters.

      How’s the previously Socialist nirvana of Greece getting on Phillip?

      •  did you miss my reference in another thread to the piece by dalrymple (one of ‘yours’..in a rightwing journal..

        ..admits/takes as a given  that ‘capitalism and socialism are in ‘tatters’..?

        ..do try to keep up to speed..eh..?

        ..yr neo-lib model is clapped out….

        ..first you must accept the word of yr betters/smarter righties than you…

        ..that this is a fact..

        .the conversation has moved onto ‘where to nek..?..’..

        ..eh..?

        [email protected]

      • In Vino Veritas

        I was led to believe Phillip, that you had some intellectual robustness. There must be some serious doubt.

        Yes, I did in fact “miss” your reference to Dalrymple. I would dispute your reference to Tony Daniels being my better or smarter than me. And since you have never met me, you cannot claim to know whether or not he is my better or smarter.

        Also, one man’s opinion on whether capitalism and socialism are in tatters doesn’t make it so, Phillip. I think you’ll find that capitalism seems to rise from the ashes every time it is said to be in “tatters”. The same cannot be said of socialism though, can it?

        On keeping up to speed, your ideological blindness keeps you from starting the engine, Phillip.

    • Vij

      You can’t comment, we’re all paying to allow you you write rubbish.  Go get a job and pay taxes

  • and will key use this same economic-argument in an upcoming debate to do away with weekends..?

    ..there is such a strong economic-case case for all to work seven days a week..

    ..eh..?

    [email protected]
     

    • Anonymous

      You work 0 days a week. You don’t have a leg to stand on here.

      •  no dear boy/girl..as my archives prove..

        ..i ‘work’ every day..(for quite a few years now..)

        ..starting most morning between 5-6 am..

        ..i find/link to 30+’cherries’..each and every day..

        ..how about you..?

        ..fingers still getting stained reading what laughably passes for our newspapers..

        ..if you haven’t travelled..

        ..that could well explain the narrow-mind-syndrome you so clearly dsplay..

        ..eh..?

        [email protected]

      • Anonymous

        Aren’t you a dole case in a state home? Try that “I am working” argument the day I stop paying for your bad choices. And yes, I have travelled, what does that have to do with anything?

    • Greg M

      I work seven days a week already Phil, I can assure you it makes very good economic sense,

      • Ben E. Basha

        Here here. Got that new boat to pay for.

      • Greg M

        Correct ! Beneteau 42.heh!

    • What a good idea…let’s mett halfway though…how about everyone works Sunday too…Saturday being the Sabbath of course

      • Already do work Saturday and Sunday – and get Monday off in lieu of working Sunday – now how is that gonna work?

      • Works well at the golf course, less congested on Mondays than over the weekend

      • Greg M

        You get the harbour to yourself too, even more so lately thanks to MUNZ : )

    • Vij

      really!! 

  • Hakim of phut

    It only happens about every 5 years and most of those years the cost is all ready there for employers, just every 1/2 dozen years they may save paying out.

    I see national is started early in ‘final term-itis’

    • Agent BallSack

      National will get another term because people have realised the doom and gloom predictions of the left about a central right Government haven’t transpired. Most New Zealanders are happy about how the country is being run.

      • Hakim of phut

        Careful about the word most,
         National and its partners got 50.4% of the votes.
        Me thinks thats not a great margin for the next election.- and changing the system back to FPP is even less popular

  • Kosh103

    To be honest, while I think the idea of putting Public holidays onto a Monday if they fall in the weekend is a jolly good idea (whats the point in having them if you dont get them) it is not really an issue of that great of importance.

    I lived without getting all my public hol’s last year, as did everyone else. And frankly National have bigger things to worry about like rising unemployment under their watch, record numbers leaving NZ under their watch, slow economic growth under their watch, rising employment issues under their watch etc…

    They should be sorting out the mess they are making, rather than fixating on a small issue that in the grand scheme of things is not that important.

    • Pete George

      They don’t have to spend time fixating. All they have to do is decide if they will support the bill or not.

    • Agent BallSack

      Edits Kosh’s reply to correctly read:

      “They should be sorting out the mess Labour made, rather than fixating on a small issue that in the grand scheme of things is not that important.”

      • Kosh103

        Given that when they took over Bill English praised the state of the Govt books  (before the right wing spin machine got to him) – I think you are incorrect.

      • Yeah they were in a bang up state, predicting a decade of deficits, locked in social spending with falling revenue streams..oh and the billion dollars shortfall in ACC that Cullen never declared…bang up job.

      • Kosh103

        Bill English was happy – until he was told off for it.

    • Anonymous

      Yea, you can’t really go past the point that Labour screwed National because they knew they were unlikely to win the election and threw money into WFF’s as a vote bribe. That ACC deficit was the most shocking omission of fact from the Clark/Cullen era. Not to mention if you run the numbers you can see that the GST increase to 15% was simply put in place to finance the WFF increases that were enacted prior to National taking the reins. There was simply no other way to fund those WFF increases. 

      •  fact/reality-check for you there sarah a.k.a sarrs…

        ..see i was doing commentaries on questiontime back in the last labour govt..

        ..when cullen used the surpluses to pay down debt..

        ..key..also in a rare moment of honesty..admitted we would be worse off now had cullen not done that…

        ..and while cullen was being sensible..and paying down that debt..

        ..key/nact were screaming he was ‘stingy’…and a cinstant meme was that he should have given tax cuts instead..

        ..and you know what..?..funny story..!..kety/nact tax-bribed their way into power..

        ..and then set about undoing all that good work of cullen..

        ..instead of paying down debt..the economic/financial-wunderkind promptly reversed that direction..

        ..and started borrowing $300 million each and every week..

        ..to fund his tax cits for the elites/1%..

        ..had you forgotten all that..?

        ..quite the ‘economic-saviour-of-the-nation’..

        ..that key..

        ..eh..?

        [email protected]

  • Anonymous

    400,000,000 is such a big number but then all numbers are relative. put the 400m beside the country’s 120b GDP we’re talking 1/3 of 1%
    And that’s only on the years when both days fall on the weekend.
    Lies, dammed lies and statistics huh?

    •  Some ecomomist that reads this blog explain to me how it’s gonna cost 400Mil more, I would have thought it would just re-arrange existing costs not add more? But then I am a bit simple….

  • Blair Mulholland

    Yup, it’s almost nothing in terms of total GDP.  There’s no question that it is a cost to employers, but it’s still a pretty tiny one.  If you’re going to justify penny pinching on the few years that the holidays fall on, why have a public holiday for those days at all?  You could save $400M every year!

    Public holidays should only apply for government employees anyway.  They should be optional for private sector employees, as they are here in the United States.

  • Anonymous

    It would be great to Mondyise holidays but we can’t – we have no room to move with the economy.  National is doing exactly the right thing by keeping a tight rein on the economy.,  In fact, it needs to be tighter if we are to avoid being another Greece.  Phil: your theme song should be

         Hi Ho, Hi Ho, It’s off to work we go…….
         Monday or not, I need to earn a lot
         To pay back all that dough
          I ripped off the taxpayer all my years
          So I give three hearty cheers
          To all the mugs who paid me so…..

    •  porschetia..do you think we can really afford to borr ow $300 million per week to pay for those generous tax-cits for the elites/richest..?

      ..is that ‘exactly the right thing’..?

      ..is it..?

      [email protected]

      • nzd.gbp

        It’s a simple formula phil: 
        The people who suffer when tax receipts are low are people like you!!! YAY!!!The people who suffer when tax receipts are high are people like me!!! BOO!!Now, who do you want to be the happiest? People like me who pay for stuff, or, people like you who don’t pay for stuff?The thing is Phil, I’m happy for you that you get to do what you do at my expense. I think it’s great. Give and take and all that. But, you will reciprocate when I come into hard times…right? You’ll work your ass off and pay tax so I can do exactly what you do aye?….aye?….phil??…you there?

      • Anonymous

        Wealth results from successful and honest transactions in free markets.  Giving people their own money to undertake such wealth-generating transactions is right and proper and we all prosper when this is allowed to happen. 
        Tax cuts are not giving people money – it is allowing them to keep some of their own money!Increasing taxation on the “rich” weakens and damages these free market transactions, so we ALL become poorer, a fact that has been known for yonks but which is ignored by governments of the left.The money being borrowed by the government at present is to pay for our amazingly generous and stupid social welfare system etc and the huge hole dug for us by Labour.  However, we are making progress and our sovereign debt  should be under control in a few years time. 
        I am sorry but there is no solution other than to go to work and restrain governments in their attempts to buy votes.

      • Anonymous

        You talk a lot about tax cuts for the rich etc – have you considered your contribution to the economy? Have you volunteered to reduce any amount of government assistance you receive in the next financial year?

        You’re pushing this problem on to other parts of society – what are YOU doing? 
        National have implemented schemes that will a. reduce the amount of people on the dole who simply are unwilling to work b. reduce the number of people who are in tertiary education for a holiday i.e. failing and/or taking courses with no career pathways and c. spending huge IRD resources chasing the ‘elites/richest’ for capital gains on asset disposal and tax avoidance. Read the Penny Hooper case for crying out loud – that signals one of the biggest upheavals in our tax landscape in years. It is binding case law that will impact about 60% of independent contractors and will result in a large increase in tax income for the government. Do some research. 

  • nzd.gbp

    Abolish all employment contracts. Invoice the boss periodically for the work you actually do, and pay your own paye to IRD monthly. Two immediate benefits; everybody understands the cost of these holidays, and secondly, everybody is confronted by how much tax we actually pay.

    • Hakim of phut

      You have just described the time  before rogernomics
      . Employment contracts were unheard of for everyday employees. PAYE  ( for taxes ) didnt come in until the early sixties ( or so)

      • nzd.gbp

        ok I can see how my comments may have been confusing. I meant abolish all employment forthwith!! etc etc…

    •  nz..the fact is our rich are the lowest-taxed in the oecd..

      ..and factor in no capital gains tax..(one of the few countries..)..whereas in america the debate is to move c.g.t.from 15% to 35%…(here..nothing..)

      ..plus..one of the biggest wealth-gaps/low-wage economy..shocking/world-worst child-poverty/health-stats….

      ..but you rich are still screaming ‘hard done by!’..eh..?

      …you are so like farmers..

      ..always fucken moaning/bleating…

      [email protected]

      • Anonymous

        Stop it. Stop promoting the idea that there is no capital gains tax in NZ. Just stop it. It is fundamentally flawed – I have posted links to legislation in previous comments. A capital gains tax by any other name is still a capital gains tax. 

        State your evidence that NZ is the lowest taxed in the OECD. State your evidence that there is no capital gains tax in NZ. 

        ‘…but you rich are always screaming ‘hard done by!…’ – who is screaming this and what are they hard done by about? This isn’t your blog – if you disagree with what WO posts then be prepared to back up your claims.

      • Agent BallSack

        Anyone who has ever sold property knows a capital gains tax already exists in NZ Phil. You should never buy and sell within 5 years or IRD will tax any gains made on the property. Hence the term “Capital Gains Tax”

      • nzd.gbp

        Hey Phillip, even if you are right (hehe), can you see the funny side of you demanding that we give you more of our money? And that you claim that it is US who are greedy? Can you? 

      • Bob

        So Phil, your suggestion to fix this is for everyone to quit their jobs and start linking to 30+’Cherries’ every day?
        Take a good hard look in the mirror and think of the strain you are putting on young families by taking their taxes so you can be a full time troll.
        If you aren’t part of the solution you are part of the problem.

    • Anonymous

      Good idea in theory…not so good in practice. The IRD would probably have to at least double their staffing levels to cope with the extra work load, not to mention they would have to actually train their staff properly on how IR345’s and IR348’s are filled in. There would also be a huge under reporting in income tax because people would seek to limit their personal liability. Or simply not pay. And not file. Bang – more money spent there for debt collection on default assessments. The IRD would then refer them all to tax practitioners for assistance…the thought of that scenario will haunt my nightmares! 

      • nzd.gbp

        Sure, the practical aspects might need a bit of streamlining but the man knows how much he is paying on his invoices and to whom. This can be passed to the gummit and entered into your record. I tell you what, I’ll build you a system to calculate it all and a fancy suite of software. It’ll be great. Keep it simple. Flat tax on company and personal rates. boom. done. No need for expensive tax-deductable tax specialists. The ONE problem is that it would upset all our poverty gap analysts.

    • Vij

      Love it.  Now Phillip, will have to go get a job.  He can’t just eat his porrige and count 30 cherries

  • look..really..!..you all need to read that dalrymple-piece…eh..?

    ..(and he isn’t the only one..eh..?…from ‘your crew’ who sees/knows that ‘it hasn’t worked as we expected it to’…

    ..and that we need a rethink..and that no..going back to socialism isn’t the answer..

    ..you are so far behind the game…

    ..you are almost in another sportsfield..

    … think part of the problem is that you don’t seem to really think…

    ..yr dialogue in the main consists of tired/cliched/dis-proven slogans slung together..

    ..why don’t you take a deep breath..

    ..and try to think..

    ..eh..?

    ..just slogan-stringing dosen’t really cut it..eh..?.

    ..on any level..

    [email protected]

    • nzd.gbp

      ahh!!…..ok…..mmmm…..reeeaaaaallly!!……..wow……..goodness me………ah haa…….veeeery interesting……….golly!!………..yes!………I can see your point there phil……..I hadn’t thought about it like that……I’m so ashamed.

  • Hakim of phut

    Lets sort out leap years as well, currently employers  only get an extra days work  every   4 years. 
     The cost to the countries GDP  for a year  is $1.0 bill  every 3 years in 4.

    We cant afford this 

  • Argon

    Wouldn’t it simply increase inflation? Increase company/business overheads -> Increase required charge rates/costs to cover it. Just like those cafes and restaurants that charge extra for Public Holidays except any business that tries to maintain its margins will follow suit.

  • Thorn

    If an additional long weekend is needed from time to time, this surely could be taken of the four weeks leave Labour so kindly provided to the workers.

  • jay cee

    just for the record anzac day used to be a 3 day weekend no matter which day it fell on. if it was a wednesday for instance it would have been held on monday the 23rd the RSA
    back in the 60’s felt that mondayising it demeaned the solemnity of the day and asked the government to make april 25th, no matter what day it fell on, the day of commemoration. so this is really just reinstating the status quo as was.

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