Greens and Labour printing jobs the way they will print money

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The Labour/Green Commissariat planning to create Kiwi-Power NZ Power are claiming it will magically create 5000 jobs.  Can you imagine?  Half a dozen people go around the country buying power from the generators at the same extortionist fair price, and then, abracadabra!!!  5000 jobs are created.

If implemented, there would be a $500 million to $700 million hit to electricity company revenues, says Labour leader David Shearer, declaring the policy timing was not deliberately aimed at the MRP sale.

That would flow to savings for households of between $230 million and $330 million and promote the creation of as many as 5000 new jobs and $450 million a year of additional activity because of the competitive advantage and increased household buying power created by lower prices, a study for Labour by the BERL consultancy says.

Intuitively, this just screams “bullshit!”.

Looking closer, it isn’t of course NZ Power that will create the 5000 jobs.  Oh no, that would be silly.

Instead, you, and every other household, will save $330 a year on power.  That’s a massive $27.50 per month.  You’ll feel that difference in your wallet, won’t you?

And you’ll go out, every month, to spend that $27.50 (because you won’t be stupid enough to save it, will you?).  And by spending it, you will stimulate the economy so much, that 5,000 jobs will be created out of it.

Let’s even assume that $27.50 a month generates this level of economic stimulus, just for giggles.  Don’t you think the economy has a certain amount of spare capacity to absorb this unprecedented demand in  retail spending?   Apparently, once your NZ Power generated $27.50 hits your pocket, every retail outlet, wholesaler and manufacturer have everyone running around not being able to do a single thing more than they were doing the day before, so they all will be looking for new staff to cope with you buying a paperback novel.  Or a case of beer.  Or a pair of club coloured sports socks for your kid.

If it was that easy, don’t you think National, or any government for that matter, would have offered the kind of tax cuts to generate employment?  All they would have to do is to provide a $2000 per household rebate on an annual basis to start chipping away at unemployment at about 30,000 jobs a year.  That would see full employment within a decade!

Those 5000 jobs are nothing but smoke and mirrors.  Just like the $27.50 a month, or $6.35 per week, per household, will not be felt economically.

The Green Taliban are mad.  We know that.  What is a little puzzling is that Shearer has jumped on this band wagon.  At $6.35 per week per household, does he really think that nationalising electricity is worth it?

 

Source:  NBR

 


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  • Pete George

    “Those 5000 jobs are nothing but smoke and mirrors.”

    David Parker just said 5,000-10,000 jobs on The Nation. No plan for specific jobs, they will simply happen. Parker was often squirming, he knows he is having to front bullshit.

    • le spincter

      National
      is promising 50,000 jobs, every budget they fail to deliver but repeat the
      promise anyway.

      Is labours power industry policy the biggest intervention in the industry since
      national forced the private lines/energy companies to give up their power retail
      business. ( the secret agenda w as to let the generators scoop up the retail
      end)

      Thats right Max Bradford, interfered in private property rights all in the name
      of lower power prices .Ha

      So cry me a river about economic vandalism

      • le spincter

        Third, this is a Budget that delivers 170,000 new jobs and rising wages for New Zealanders while keeping interest rates and tax rates low.

        This was Forgettful leader at the 2011 national party conference

        http://johnkey.co.nz/archives/1220-Speech-to-National-Party-Mainland-Regional-Conference.html

      • At least you acknowledge it’s a big lie then.

      • dianne65

        le spincter, you sound like an uneducated idiot. Your the type that the destructive Left know they can fool. We will have the last laugh twit, just you wait and see.

    • Mr_Blobby

      Not necessarily. The problem socialist western countries have and why we have such low growth rates, 1-2 % as apposed to other countries at 8-10%, is that the state requires an ever increasing amount of the countries income to feed itself. This stifles the real economy. If you reduce the Non productive sector and TAX everyone less you will fuel economic growth.

      This does not happen in reality for reasons I have stated before.

  • Never in the dark…..

    “That’s a massive $27.50 per month. You’ll feel that difference in your wallet, won’t you?”

    At ±$4 for a latte, cappucino etc…..it’s 5.5 work week coffees or a work weeks worth of Big Macs, or 1 large Godfather pizza from Epolitos.

    • mark

      OMG I live not far from Epolitos. Godfather is Pizza Crack!!!

  • Pita

    Will the savings be applied equally across the board or will industry be levied to make good the shortfall?

  • sheppy

    That’s probably why sheep has gone to the UK to learn how to produce so much spin that they can get into and remain in power whilst totally stuffing the economy with their ludicrous policies. The damage liabour did to the UK was shocking as was the smoke and mirrors they used to do it. The spin worked so well that a lot of the UK population will still likely vote
    Red in the next election and postpone their economic recovery further into the future.
    The jobs will be fictional like most of what they promise

    • le spincter

      For voting in the Tory-Liberal government , the UK voters got a triple dip recession
      A credit downgrade too boot !

      • Salacious T Crumb

        And after 3 terms of Labour we got what?

        • Mr_Blobby

          Better off than you are now.

          • Hazards001

            After 3 terms of Labour I’d been taxed to death, lost my job my home and my family.

            I now have a great job a future and prospects.

            When labour took over this country was pulling itself out of the economic mire created by Lange and co in the ’80’s. We’d gone through the mother of all budgets and were coming out the other side.

            Then hello…the leftists go into a fucking feeding frenzy gorging themselves on the efforts of others.

      • johnbronkhorst

        Yeah…they got a country in crisis after 15 years of the LABOUR blair brown govt.!!!!
        They have not been in long enough to rectify this disaster.
        National health service in crisis (same as here funnily enough)
        Economy in the toilet (same as here)
        Electricity supply in crisis
        etc etc

      • sheppy

        Thats down to the foundations laid by 3 terms of labour. Including mr Gordon “we’ve abolished boom and bust” Brown.!
        Given a superb public purse and transformed into a basket case….

      • Patrick

        3 terms of Tony lying war mongering Blair & Gordon economically incompetent Brown has landed the UK up to their necks in pooh. Along the way the collateral damage has been massive, many lives lost (both friend & foe) many livelihoods destroyed, the social fabric of the UK changed for the worse forever. If you want to make comparisons then at least do it with both eyes open.

  • Patrick

    That picture is very revealing – I didn’t realise the apartment blocks in Auckland had so many television aerials.

    • Rodger T

      They can`t be state houses cos` there are no satellite dishes.

  • DM

    So if more jobs are created by allowing us to have more in our pocket, then why don’t they release their low income tax policies?

  • Phar Lap

    Seems lies by LIE-bour and,Commie green party are printed as truth by most NZ newspapers.Was just reading the Australian owned Doom Post.All the articles are completely twisted to suit the lies told by the mentioned parties.Hubbard, i hoped he had been fired,has been wheeled out again,with his left wing poison,aided and abetted by Frau Watkins.If ever a person was looking for a nest of LIE-bour and “green” party sycophants,some of the cluster fucks are employed by Doom-post,supported by the TVNZ TV3 .and the soap opera newspaper Horrid.

  • Shearer has jumped on this as coalition is the only way back to power

    And lower prices without thought of any consequences appeals to the befuddled masses

    Its a win-win for achieving (political) power and I’ll be off to Australia

    • le spincter

      Bye

      • Patrick

        One less to pay the taxes to support you in your old age. Don’t be whining when you can no longer live high on the hog.

      • Harrison92

        Seriously, replying “bye” to comments like the above is not clever it’s idiotic.

      • have you lost a consonant?

        shame

        at least sphincters are useful

  • johnbronkhorst

    Lets throw some numbers in and see.

    1.5 million households in NZ (stats NZ)

    $330 each saved MAXIMUM.

    ie $495million dollars
    “$500 million to $700 million hit to electricity company revenues”

    So where is the rest of the money going???

    With this much taken out of their profits, where is the expansion of supply to meet increased demand created by the very cheaper power that you have fabricated, combined with the increased population? Can you say….POWER CUTS!!!

    Where is the maintenance cost of keeping our current supply coming from?..Can you say….POWER CUTS!!!

    • SJ00

      I’m pretty sure Labour don’t even bother pulling out the calculator anymore, they must think their voters can’t do maths and will never check the numbers they bullshit out of their mouths.

      Of course what will happen, after a year or so of NZPower, and the powercuts, is Parker will stand up and say.. ummm we need to borrow a billion dollars from you poor saps that voted for this shit to build new power generation. Please bend over whilst the govt shoves a fist up your arse and tries to extract more money from you. Greens will say we fully support building coal plants quickly because our stupid idea isn’t working and the gweenies can’t charge their iphones and ipads anymore and may not vote for us anymore. Once in power they will do all they can to stay there and a few dirty power plants won’t bother them.

    • Mr_Blobby

      The aluminum smelter takes something like 14% of our power production. Close that and you have a surplus, this will drop the price of power, supply and demand.

      Easy peezy.

      • johnbronkhorst

        and increase the doll payments to the 3000 newly unemployed….not so easy peezy!!! ie about $35-45 million

  • rockape

    Didnt notice cheering from Labour about how many jobs would be created by Nationals tax cuts. With NZ tax bill totalling 60 billion just think of the jobs that could be created by freeing up 5% of that!

    • Mr_Blobby

      What National gave in TAX cuts was more than replaced by a multitude of other TAX and FEE grabs. The total TAX take increased not decreased. So DonKeys claim that most people would be better off was just shit.

      • Hazards001

        True enough…still we are overtaxed here…and the big issue is where it is spent. Cut WFF & Interest Free Student Loans, slash paid parental leave to 3 months again and we’ll talk tax. Increase in GST by the Nats and the fuel levy increases were obvious knock on effects of the feminazis 9 years of vote buying.

        We should never forget the gaggle of gays and self serving unionists slod this country down the river to keep themselves in power and get the queen dyke her UN spot she coveted so badly.

  • Sarrs

    Please someone help my flu addled brain. Wasn’t one of the Labour/Green primary concerns with partial asset sales the loss of dividend streams? Isn’t fixed price electricity purchasing going to further reduce dividend streams thus causing less income for the government? So likely that there will be an increase in tax or overseas borrowing?

    Also, the big shit that the launch of this policy has taken on our economy can’t really be argued with. Won’t this make NZ a less attractive investment option and that will ease the pressure on our exchange rate?

  • johnbronkhorst

    Also no estimates of increased demand due to cheaper pricing!!!

    If this is 15% of people power bill, it seems this kind of reduction, could bring about a 5-7% increase in demand, apart from increased population.

    Begs the question…

    With a 5-7% increase in demand (which will be almost immediate), where is the supply coming from?

    Given that Dams and wind farms take a fair while to build, the fastest way to meet this extra demand would be via THERMAL generation ie diesel, gas, coal. Given that, how does that sit with the greens policy on Kyoto and climate change?

    So it could, end up with a choice…either POWER CUTS or forgoing Kyoto
    protocol making the greens….hypocrits.

  • GregM

    As well as reduced dividends to the government, $500-$700m of revenue off the power companies is a whole lot of income tax they won’t be getting either. Have they thought about that? This really is Alice in wonderland stuff.

    • SJ00

      You can’t run a company knowing what all your costs and expenses and income will be. What happens if they do ‘accidentally’ make a profit? Spread that profit round to us? Take a dividend? What happens if they make a shortfall because NZ Power didn’t give them enough money to cover their costs? Mr taxpayer will step in. It is one of the worse thought of ideas I’ve heard either party dribble out. It fits right up there with the no GST on fresh fruit and veges. Like saving 12c off an apple than costs $1 is suddenly going to make all the fat South Aucklanders give up McDonalds and KFC and eat fruit instead.

  • “If it was that easy, don’t you think National, or any government for that matter, would have offered the kind of tax cuts to generate employment?”

    In fact this would work supremely. Tax cuts effectively put the spending in the hands of individuals (and businesses) and in doing so investment decisions are decentralised. The opposite of oxymoronic central planning.

    And believe it or not – the tax take increases due to the economic stimulus of less tax dodging and more investment. Then we can reduce tax further – again. I’m getting excited thinking about it.

  • worksux

    Very simple how they will make up the short fall, Wages above 80k will be taxed at 39%.

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