Labour’s new policy is to destroy as many businesses as possible

via fmacskasy

New Era: more negativity and destruction

MP David Shearer says he will return to waging war against the supermarket duopoly and credit card interest rates after being restored as Labour’s consumer affairs spokesman.

Mr Shearer was given the role back in a minor rejig by Labour leader Andrew Little after MP Clayton Cosgrove’s decision not to stand again in 2017. The changes promote Kris Faafoi into the shadow Cabinet and he picks up Mr Cosgrove’s tourism portfolio while keeping his state services portfolio.

Mr Shearer, foreign affairs spokesman, gets consumer affairs, which he had held until November.

He said there was a marked lack of competition in New Zealand in many areas and many goods were far more expensive than in Australia.

“I’ll be looking at areas I believe there is insufficient competition and therefore consumers are being squeezed without sufficient protection.”

He said credit card interest was another issue. “I don’t understand the rationale why, if there is good competition in banking, the credit card interest rates haven’t come down.”

So let me clear this one up for you.

  • Wreck as many businesses as possible.  Check.
  • Andrew Little already has had a crack at banks and a hotel operator.  Check.
  • Shearer is going to attack supermarkets, and then credit card companies.  Check.
  • Kris Faafoi is going to attack tourism.  Check.

Plan:  wreck the economy then claim it was the governments fault.   Check.

 

– Claire Trevett, NZ Herald

 


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  • Tom

    Does it ever occur to socialists” If you dont want to pay high interest rates for a credit card. DONT HAVE A CREDIT CARD. its that easy.

    • InnerCityDweller

      simple solutions like affordability don’t enter, not with credit cards, not with kids.

  • Dave

    A quick message to Mr Shearer and Labour. I refuse to pay the banks Credit Card interest rates, and discovered two ways to achieve that. the first is simple and good money management.

    1) Don’t have a credit card, then…… No fees, Zero interest, and NO debt :)
    2) For those who can afford one, Pay the balance due BEFORE the due date. Again, no interest, low fees, and no long term debt as its paid in full each month.

    Solved that one for you Labour, crisis in banking averted.

    • kayaker

      We have two credit cards, each of which have different roll-over dates and different due dates. Everything that can go on the credit card does. For the first half of the month we use one of the cards, then when the other one rolls over we use that one for the second half of the month. We leverage the roll-over dates and interest-free periods on each card and every month we pay them both off in full. One gives us airpoints the other gives us cash back. It’s a great way to optimise the benefits of each and to keep track of your spending too.

      • rangitoto

        I just had an idea. Pay off Visa with Mastercard. Pay off Mastercard with Amex. etc. What could go wrong!

        • Oh Please

          Sounds like a Green financial policy

        • kayaker

          That makes my head hurt!

  • Ruahine

    A credit card is just the same as an account with a retailer. You pay it off when it is due if you are sensible. Hence no interest.
    If you do not pay it off you will incur fees.
    Sensible people pay the full amount.
    Unsensible people do not.
    Unsensible therefore are stupid and may appear to be Labour voters.

    Mr Shearer do you pay off all of your credit card debt each month to avoid the fees?
    I bet you do.
    Perhaps you should be telling your supporters to do the same.
    This is just so typical of Labour, more dog whistling dressed up as ‘Policy’. Policy for people who spend beyond their means.

    Mr Shearer it works like this you know.
    If you have income of $100.00 per week and you spend $99.90.
    Then joy and happiness.
    If you have income of $100.00 per week and you spend $100.90.
    Then woe and unhappiness.
    A bit like Labour’s policies really.

  • Tom

    Are we realy that bad off:
    United Kingdom+Follow2%34,38864,105,6546.45% – GBPMar 2016United States+Follow1.5%45,934319,094,0006.74% – 14.74% – USDApr 2016Poland+Follow4%18,837*38,496,0007.00% – PLNApr 2016Taiwan+Follow1.6%31,77623,410,2808.80%-10.80% – TWDApr 2016Ireland+Follow2.4%38,6854,609,6009.11% – EURApr 2016Canada+Follow2.8%37,94735,540,4199.99% – CADMar 2016Portugal+Follow0.4%23,36110,477,80010.1%▲EURApr 2016Macedonia+Follow2.8%10,9042,065,76911.25% – MKDMar 2016Puerto Rico+Follow
    34,674^3,615,08611.95% – USDJan 2016Australia+Follow3.4%38,66323,665,60011.99% – AUDApr 2016Singapore+Follow4.6%50,1805,469,70012% – SGDMar 2016New Zealand+Follow4.5%26,6704,541,34013.45% – NZDMar 2016Lithuania+Follow1.2%19,1252,927,31014.00% – EURMar 2016Bahamas+Follow1.8%31,324368,39014% – BSDMar 2016Switzerland+Follow0.4%40,4848,183,80014.75% – CHFMar 2016Malaysia+Follow3.3%13,80030,401,40015% – MYRMar 2016Greece+Follow2.9%29,66310,992,58915.37% – EURMar 2016Slovakia+Follow3.9%7,3255,415,94915.96% – EURMar 2016Bermuda+Follow1.8%53,56564,23718% – BMDApr 2016Oman+Follow4%25,6354,077,91218.00% – OMRMar 2016South Africa+Follow5%10,22954,002,00018.40% – ZARMar 2016Estonia+Follow3.4%20,3791,315,81919% – 22% – EURMar 2016Antigua And Barbuda+Follow
    18,55886,29519.96% – XCDApr 2016Bosnia+Follow
    8,1273,791,62221.48% – BAMJan 2016Sri Lanka+Follow7.7%5,22020,277,59724.00% – LKRApr 2016Kazakhstan+Follow5.8%14,39117,353,70024.00% – KZTMar 2016Russia+Follow8.9%14,913146,149,20025.90% – RUBApr 2016Trinidad And Tobago+Follow5.2%19,7591,328,01926.82% – TTDApr 2016India+Follow6.8%3,2751,262,530,00027% – INRMar 2016Azerbaijan+Follow2.4%
    9,552,50027.00% – AZNApr 2016Turkey+Follow7.8%13,90576,667,86427.12% – TRYMar 2016Costa Rica+Follow
    12,1574,713,16828% – CRCMar 2016Georgia+Follow4.1%6,1454,490,50028% – GELMar 2016Venezuela+Follow159.1% 13,60530,206,30729.00% – VEFApr 2016Vietnam+Follow18.9%2,94289,708,90029.23% – VNDMar 2016Bangladesh+Follow10.7%1,565157,322,00031.50% – BDTApr 2016Nigeria+Follow10.8%2,422178,517,00032.15% – NGNDec 2015Hong Kong+Follow5%45,277*7,234,80036.43% – HKDMar 2016Ukraine+Follow49%6,665*42,977,36738.00% – UAHApr 2016Kenya+Follow11%1,750*41,800,00038.48% – KESMar 2016Angola+Follow8.9%6,247 24,383,30140.53% – AOAApr 2016Indonesia+Follow5.7%4,151252,164,80041.75% – IDRApr 2016Philippines+Follow5.3%3,546100,553,90042.58% – PHPMar 2016
    Show Less

  • Richard

    In all seriousness, I think Labour’s new policy, is to destroy itself.

  • metalnwood

    Credit cards are almost essential these days if you buy anything online.

    The best thing that happened to my credit card is when we got rid of it and got a visa debit card. No risk of borrowing at high rates. No excuse to say you were sucked in to a credit card because you need one for online purchases and then crept in to debt.

    A credit card is a choice. It’s not a necessity or a human right. It doesn’t have to be fair what they charge.

    • Oh Please

      For the last 30 years I have bought everything I can on credit card then paid off the bill in full. 30-60 days interest free, no fees, plenty of air points and dollar refunds. Works just dandy for me.

      • metalnwood

        I agree, if you can do it and not fall to temptation.

        It works so well for banks because most people cannot resist the temptation

        • Oh Please

          Just treat the credit card like money, rather than credit. Helps not to be a socialist.

          • metalnwood

            Yes, but for a lot of people, thats their famous last words before the debt collector knocks :)

          • Oh Please

            That’ll be someone else’s fault, presumably…

    • pisces8284 .

      Don’t buy on line with a debit card though. Use a credit card, then it’s up to the bank to recover their money if you get hacked
      https://www.nerdwallet.com/blog/credit-cards/credit-card-vs-debit-card-safer-online-purchases/
      Edit Clarification

      • metalnwood

        Yes, I should clarify that I am referring to a visa debit card which still has the same protections of a visa.

        The link you referred to is overseas for a different kind of debit card. I local visa debit card would usually give you the same protection.

        • rantykiwi

          Except it doesn’t really give you the same protection. You get defrauded with a debit card and the money has left your account and won’t return until the bank makes a recovery. With a credit card you don’t pay it and you dispute the transaction – the interim loss is all their problem.

          • metalnwood

            Yes, thats very true and something I had not considered as I use mine a bit differently. I want a visa for online but dont want a credit card so it’s linked to an account that I more or less put money in to for use on the card.

            Good point for someone that might have it on their main cheque account.

  • Second time around

    I wonder if David Shearer has given any thought to how a Labour government would attract new businesses to raise capital and run the gauntlet of the resource consent processes in order to compete with the duopoly. And if he has, I wonder if he has discussed it with Andrew Little yet.

  • Bob Dazzler

    They are just light weights making noise hoping it will be confused for “policy”.

  • Orange

    Has David Shearer just nicked someone’s company name? http://www.newerait.co.nz/

  • Graeme

    Evidently Shearer wasn’t born when Gubay came here to undercut the big Supermarket monopoly. Perhaps someone should tack Shearer aside and tell him what happened to Gubay. And then there was the Shoprite chain whose aim was to undercut the big chains.

  • Aucky

    Now I remember why we all thought that Shearer was absolutely tits at his job and anybody, yes anybody would be better as leader.

    • Nermal

      Thanks for that reminder. I’m not sure if we were right or wrong.

  • Keanne Lawrence

    The irony continues to provide us with a regular dose of humour. Labour talking about managing money. Now that is a crack-up. They must be taking more lessons from their masters in the union.

  • Platinum Fox

    I think I can help Mr Shearer with the reason why credit card interest rates are where they are.
    Credit card providers all look to run that business profitably.
    There is a cost to the credit card provider in funding the amounts due to it from its cardholders.
    The credit card company pays its merchants according to its terms which will generally mean that the merchants receive their money well before the card holders are required to pay their credit card bills. If cardholders pay their entire closing balance on or before the due date, then the card company earns nothing on the charges that make up that balance for the respective periods between each charge being incurred and the card payment being received.
    If a large proportion of cardholders always pay their closing balance on due date then the total cost of funding the credit card company’s cash shortfall needs to be recovered from account fees (which apply to all customers) and interest charges for those customers who don’t pay on due date. The other factor that comes into play is losses due to non-payment, which unsurprisingly are not caused by those clients who pay their closing balance on due date.
    While Mr Shearer may want to argue the morality of the cost of funding the card companies’ interest bill being borne by those cardholders who don’t pay on due date the reality is that the terms and conditions are clearly stated. Every cardholder has the option of paying their bill on due date and those who do not have made a choice which they rightly bear the consequence of.

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