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The Greens-time to question what they stand for!

03/06/2008

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As Adam wrote in another post Sunday ,on the Greens, he was thinking then about the mis-perceptions concerning the Greens which many seem to have. Indeed he commented on this fact in the post concerned.

So why is he writing another post on the Greens so soon. Well when he saw the TV News last night he heard the familiar comment between newsreader and reporter on where is National’s policy.

So many times we hear TV, Radio and Newspapers demand National comes clean with it’s views and policy. Well why should they? We are some months still away from the election. If National releases all policy now it will enable Labour to either spike the policy or take other action.

Indeed we do not hear the media demanding what Labour’s vision is for the future. After 9 years surely we are entitled to know what, if any, vision Labour has for New Zealand.

In fact we do not hear many in the media, if any making similar demands of the other parties.

However, in the context of this post Labour and the others are peripheral.

Nowhere does Adam see any of the MSM conducting a detailed and searching analysis of what the Greens are all about.

Given that the Greens have been in the Parliament now for several terms and have some influence on government policy and may have more; it is time that they were put under the spotlight.

Yes, Red Russel was on Agenda recently, but it was like watching a cross examination by a wet bus ticket.

Adam then remembered an article which he read in the print edition of one of the papers and then found on Stuff this NZPA item about Red Russel’s speech to the faithful at the Greens conference.

The Green Party wants a resource levy on commercial water use with the levy used to reduce rates and income taxes.

Green Party co-leader Russel Norman outlined the levy during his speech to the Green Party conference in Auckland.

He said the right price signals needed to be put in place so the economy became more efficient at using finite resources.

The levy was the first part of the Greens’ approach to “ecological tax shifting.” Its full tax shifting policy would be released closer to the election.

So the Greens want to place another impost on business to reduce presumably domestic rates and personal taxes.

  • What modelling and costing have they done to determine the impact of such an impost?
  • Have they assessed the long term impact on employment, job creation, investment, trade etc?
  • Is water in NZ truly a finite resource? Adam agrees that in some places around the world that it is? But in NZ?

Red Russel says this is the first part of the Greens’ approach to ecological tax shifting.

  • What does he mean by this?
  • What does he mean by its full tax shifting policy?
  • How will this policy impact the economy?
  • What will it do for growth?

Red Russel than made a number of statements over growth in water use. He said:-

“As a general rule there is no price paid to use this globally valuable natural resource.”

Dr Norman said the Greens were not proposing to privatise water or introduce tradeable water rights.

It was not proposing to charge for drinking water for humans or for stock.

“But if you use a public resource to make a profit then the public should be paid rental for that use.”

Now Adam finds elements of this statement confusing.

In Auckland for example water is metered and charged for. Adam has no problem with that. He thinks there are issues with infrastructure, but he has no objection in principle to such charges. Further there is an element of rates which covers water issues. So he finds Red Russel’s comment there confusing, as in effect in many if not all parts of the country one is effectively charged for drinking water. Indeed, such charges encourage efficient use of the domestic water supply.

In principle Adam has no issue with a water levy, provided that the impact is fully understood by the community and the community understands the consequences of such a levy.

Adam has concerns as to the extent NZ is converting to dairy farming and thinks that such use does place potentially excessive demands upon water supply and quality of water, especially but not limited to the South Island, so considers some such measure may be appropriate – particularly if it aids the shift to a service based economy, but not if it is brought in without a full understanding of impacts and the costs of change.

  • Further, Adam suspects that some of the power companies may be big water users, so is Red Russel proposing to levy them and cause power costs to rise?
  • What would be the impact on industry?

Adam, in common with others on the right, does not automatically assume that all Green policies and approaches are bad, but he thinks the approaches and policies should be subject to searching review. The Greens and the left, despite what they arrogantly assume, do not have a monopoly on environmental concerns – the more so as mitigating many such concerns has a strong economic rationale anyway.

If policies such as these result in the overall burden of tax being reduced, rather than simply adding to the existing burden, and such new approaches did not discourage investment or growth then it might well be that people might find some of these worth thinking about.

Those policies and approaches would need to be economically sound, not ideologically driven.

The problem is that he suspects that what may appear rational on the outside will not appear quite the same when considered in the light of the total Green agenda, particularly their social justice agenda and their anti-business and anti free trade focus. Especially when the full extent of the impact of these policies is known.

Adam would like to know what business, services and industry the Greens would see replacing those which would be displaced through their measures.

  • What industries and services will be impacted and how through their tax shifting approach?
  • What new industries will be started and where will the investment capital come from?

What is the Green vision for NZ and especially the economy which after all pays for everything?

He suspects that their ‘vision’ is one based on a import substitution economy with all sorts of import controls etc, etc. Precisely the sort of economy which will restrict choice, growth and development. Further the sort of economy investors shy away from, so look forward to disinvestment by existing foreign investors, exchange controls, rising interest rates and a falling dollar. In addition our exports would decline because of Green trade views, our FTA benefits would not eventuate and we would probably run foul of the WTO. All that for starters.

Bear in mind Red Russel has been described as coming from the social justice wing of the party not the environmental wing. He is of a similar ilk to Kedgley and some of the others.

The point is we need to more critically examine just what policies the Greens are proposing and what their impact might be in various areas:-

  • tax
  • social welfare
  • trade – Adam is concerned that the Greens attitude to free trade may well materially imperil the entire economy
  • tourism
  • transport

these are just a few key examples.

We need to be able to assess what the Greens impact could be on this country, before the election on the basis of a clear understanding of their policies and the implications.

At this time the media is providing us with little assistance.

It is time for there to be much more focus on what the NZ Greens really wish to impose on this country.

We need to dispel the warm fuzzy, tree hugger image and reveal these people for what they really are .

9 Comments
  1. 04/06/2008 16:24

    Mr. Dennis: Current tax regimes charge GST on barter transactions where no cash changes hands. This is why many non-cash exchanges suddenly choked to death in the late 80s. A non-cash economy was effectively made illegal unless you were prepared to front up with cash to support transactions that didn’t generate any. Agreed, there would need to be a way to handle some acceptable level of waste per person without levying a monetary tax. But activity beyond that would have to attract some form of tax – either in cash or perhaps hours of community service. Imagination could be usefully employed to solve this problem.

    ZenTiger: Apologies. Current policy, as stated, enunciates the opening stages of a longer term goal of transtioning from tax on income to tax on waste and energy. The goal of ultimately abolishing income tax is no longer made explicit. No doubt a response to criticism from those who see such a move as too radical from a perspective of where we are today. Suffice to say, the goal IS to shift tax from income to waste and energy.

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  2. 03/06/2008 16:06

    It doesn’t help the Greens’s credibilty when you read this lind of thing:

    http://keepingstock.blogspot.com/2008/06/more-green-lunacy.html

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  3. 03/06/2008 15:44

    Good point Rob. Another example is the recent $9 million additional tax dollars injected into the racing industry (it employs 18,000 people) and then the inevitable tax funded increase increase in “gambling addiction” programmes.

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  4. 03/06/2008 15:21

    Taxing things you don’t want to see happening tends to be a bit problematic. The trouble is the incentives it creates – not on industry or industry, but on policymakers.

    A certain amount of tax revenue is necessary, even in a minimalist state (which I can’t see the Greens going for in any case). And if it is envisaged that this sort of tax would replace income tax, it would not be very long before the tax on waste is being calculated to encourage a certain amount of waste erradication, but not so much as it erradicates so much there is a tax shortfall.

    This is not a hypothetical argument. It happens now with ‘sin’ taxes- on tobacco especially.

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  5. 03/06/2008 14:52

    If anyone is interested, here was my take on their eco-tax submission: Green’s Eco-Tax Policy Review

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  6. 03/06/2008 14:51

    For example, Green tax policy would have tax on income abolished. Why tax people for working hard and being productive? It makes no sense.

    Where exactly does it say Greens want to end ALL income tax? I have read a fair amount of material on the Green web site, and I never got that impression. I can see them increasing a tax free threshold over time to potentially a tax band of 50% of taxpayers, but nothing better than that.

    Would love to see your links.

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  7. unaha-closp permalink
    03/06/2008 13:40

    truthseekernz:

    Their tax policy is very libertarian, but they never mention it. They’re forever going on about the more need for regulation of everything from bioscience to smacking, but never mention eliminating income tax. They work with Labour and were part of their Jim Andertons Alliance. They are derisive of Act (who apparently share half of their tax policy).

    They are by their actions left-wing.

    Most of the people doing the categorising simply haven’t done their homework…..and it shows to those of us who have.

    Perhaps you might like to stop reading obscura on the Greens website and observe what they do.

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  8. Mr Dennis permalink
    03/06/2008 12:27

    truthseekernz:
    Taxing waste rather than income sounds noble. But one of the major problems is that some people may not be able to afford the tax. If you tax financial transactions (income or expenditure (GST)), there is actual money changing hands that the government can take a cut from. It is likely that someone who earns a lot can afford to pay more tax than someone who earns less – this is pretty logical.

    However if you tax waste, this connection is gone. To give an extreme example, if you count greenhouse gases as waste needing to be taxed, you end up with sheep & beef farmers (who have little money at the moment) having to pay very high taxes, while someone in an office job pays little tax, even though they may well have more cash to spare.

    I am not dismissing the idea of taxing waste, it is certainly worth looking into and could work well in some areas, using water use to calculate rates rather than just land value is an intriguing idea that could be looked into further. I am just pointing out that it is not as simple as it first sounds, and may not work if applied broadly as you say the Greens are suggesting.

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  9. truthseekernz permalink
    03/06/2008 11:57

    The best place to find Green Party policy is on the Green Party web site. If you’re getting it from any other source, you’re risking error and distortion.

    For example, Green tax policy would have tax on income abolished. Why tax people for working hard and being productive? It makes no sense.

    According to Greens, there would be no income tax.

    Instead, taxes would be levied on the consumption of limited resources and on wastes produced. We would all have scope to reduce our tax exposure by finding ways to reduce the waste we produce. This would act as an incentive to everyone – individuals and business – to minimise waste and maximise efficient use of resources.

    This is hardly a “lefty” policy. It’s more in the Libertarian camp.

    Greens aren’t left or right…..That’s why so many people have trouble slotting them into such categories.

    Most of the people doing the categorising simply haven’t done their homework…..and it shows to those of us who have.

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