For once, it’s been a great week for taxpayers! News that the Government is finally getting on top of the Ardern/Hipkins-created “consultant gravy train” is welcome, as are the details for what amounts to the most important thing the Luxon-led Government is likely to do to improve New Zealand’s long term prosperity.

Plus, thanks to a very talented Taxpayers’ Union student intern, we have an exclusive for supporters of the Taxpayers’ Union: we’ve been leaked a recording of Christopher Luxon’s recent call with President Donald Trump, where The Donald gives a lesson on growth… 

$800 Million Saved: Crusher Collins Crushes Wellington Consultant Gravy Train 

As Minister for the Public Service under Jacinda Ardern, Chris Hipkins grew the core public service (i.e. back-office bureaucrats) so much that by 2023, salary costs were up by 72 percent in six years!

But that surge doesn’t count what’s made the Wellington partners of KPMG, Deloitte, PwC etc, very well off indeed: a boom in the so-called “cling-on bureaucracy” of consultants.

Now the new Minister, Judith Collins is crushing it, with the Beehive announcing this week:

The Government’s move to cut public sector spending on consultants and contractors is on track to save $800 million over two years – double the initial target, Public Service Minister Judith Collins says.

“We set a two-year target to cut $400 million in spending on consultants and contractors across the public sector by 2024/25,” Ms Collins says.

“The latest update anticipates savings will come in at more than $800 million by the end of June. [continue reading here]

$800 million amounts to $398 for every New Zealand household. Bravo Judith! 

Scrapping the RMA: The Biggest (Regulatory) Tax Cut in Our Lifetime? 

Time and time again, the economic gurus tell us that the biggest handbrake on growth – and therefore New Zealand’s long term economic prosperity – is the Resource Management Act.

The RMA is the cause of New Zealand’s housing crisis. It blocks (or, at best, seriously hikes the costs of) building infrastructure, it stifles growth, and it makes us all poorer.

So the Taxpayers’ Union has always argued that scrapping the RMA isn’t just mission critical. It is the litmus test of whether the political elite are serious about New Zealand ever getting back into the top half of the OECD for what we produce per capita.

Labour’s David Parker tried to scrap the RMA but failed. Parker’s Three Waters-style co-governed, anti-democratic ‘Central Planning Committees’ regime would have made things even worse! (It was so bad, in fact, that we spent a month on the road to raise awareness).

So, the Government’s bolder initiative to Go for Growth and deliver planning laws based on property rights should be more than welcomed. And so far, we like what we see:

• Property rights will be front and centre — if your land use doesn’t harm others, you can get on with it.
• Standardised zoning rules will replace the tangled mess of 1,000+ local variations.
• Red tape will be slashed, with up to 45 percent lower compliance costs

According to National’s Chris Bishop and ACT’s Simon Court, the reforms are all about returning decision-making back where it belongs: with property owners.

That means minimising potential interference by busybody activists, politicians and clipboard-wielding council officials except where there is a genuine impact on neighbouring property owners (what economists call externalities).

Chris Bishop cites a consultant’s report (ironic, we know, given above) which estimates his alternative will deliver a 45 percent improvement in administrative and compliance costs when compared to the current system.

But there’s a looooong way to go yet… 

No changes will kick in until 2027 – and there’s still a lot that could go wrong between now and the actual laws being drafted, consulted on, and passed through Parliament. Chris Bishop says his target is to get it done before next year’s election.

But already, the vested interests who thrive on the bureaucratic kumbaya approach of the RMA are out there in the media complaining. A perfect example: Government’s RMA reforms an ‘open attack on Māoridom’ (Stuff.co.nz).

To our astonishment, despite being arguably the most important work stream by the Government, 1News didn’t even bother to mention the announcement on Monday’s six o’clock bulletin.  So if you’re interested in a deep dive into the detail (or don’t trust how the media is reporting on it), head over to the Beehive’s news item (in particular, see the “Factsheet” listed under “Related Documents”).

So, let’s ensure that the Government holds firm, and we hope that this announcement reflects a willingness for the Government to be bolder in “Going for Growth”. 

(EXCLUSIVE) LEAKED CALL: President Trump’s Advice to Chris Luxon on how to ‘Go for Growth’

 

Speaking of Going for Growth, we’ve published an exclusive recording of one of our scarily talented student interns President Trump’s recent call with Prime Minister Luxon. 

In it, The Donald tells Luxon how he should kickstart New Zealand’s economy (and I can 100 percent assure you Geoffrey, no AI was used for this recording).

Listen to the leaked recording here

Bang for buck, the best possible tax cut: Full Capital Expensing 

In case you missed our Briefing Paper on Full Capital Expensing, head over to our website. 

It’s the best tax idea for the Government to Go for Growth, but most people haven’t heard of it. It lets businesses write off capital investments (the very things that will make New Zealand more productive) instead of drip-feeding depreciation deductions over many years.

Full Capital Expensing = more investment = higher productivity = faster growth = higher wages.

It worked in the US and Britain, and we break it down here.

Health officials lobby against…slides and sandwich boards? 

Public health officials have been called out by the new Health Minister for lobbying: it turns out money meant for health services is being used to employ the fun police.

Instead of tackling public health, officials have been submitting against lawful developments that have nothing to do with public health. Public Health officers have been spending taxpayer money (meant for the health service) lobbying against:

• A Mitre 10 in Petone (because it had too many car parks)
  
• Extremely hazardous, err, Sandwich boards outside Nelson bakeries
  
• A McDonald’s drive-thru in Wānaka, because… “planetary health” (yes, seriously!)
  
• School charity raffles in case they lead to a life of high-stakes gambling
  
• A children’s playground in Lower Hutt (kids playing outdoors is far too risky, apparently)
  
• And even housing developments, because they might “block mountain views”

Every dollar spent nitpicking is taken away from actual healthcare.

So, a round of applause to Minister Chris Bishop for calling it out — and even bigger props to Health Minister Simeon Brown for finally putting a stop to it. 

Predictably, the poor do-gooders taxpayer-funded lobbyists managed to find a Stuff journalist to complain: ‘It’s censorship’: Public health leaders slam ‘Trumpian’ edict (Stuff.co.nz).

We say a Ministerial instruction to bureaucrats to stop using taxpayer money to lobby for things that most taxpayers would not agree is far from ‘censorship’. And (regardless of your views on Trump!) surely these taxpayer-funded lobbyists are a lost cause when they have to resort to ‘Trumpian’ name calling of Minister of Health Simeon Brown.

PETITION: Support equal voting rights in Local Government  

Last week, National MP Sam Uffindell introduced a Bill to give everybody equal voting rights in local elections.

The Bill extends the equal voting protections for Parliamentary elections in the Bill of Rights Act to local elections—common sense, right?

Right now, different votes can count for different amounts – whether directly through rural or Māori wards or indirectly, thanks to unelected appointees with voting rights. This Bill doesn’t fix the problem of unelected members being appointed to local council, but it’s a big step towards ‘unscrewing the scrum’.

Equality of suffrage is seen as bad by Radio NZ 

Incredible, New Zealand’s very own Pravda – the fully taxpayer funded Radio NZ news service labeled equal voting rights a ‘step backwards’

As highlighted by Taxpayers’ Union Cofounder, David Farrar, over on Kiwiblog:

Tauranga MP Sam Uffindell has a simple proposed members’ bill to amend the Bill of Rights Act to have equal suffrage extend to local government.

Equal suffrage is a fundamental human right. The Universal Declaration of Human Rights says:

The will of the people shall be the basis of the authority of government; this will shall be expressed in periodic and genuine elections which shall be by universal and equal suffrage and shall be held by secret vote or by equivalent free voting procedures.

The International Covenant on Civil and Political Rights also states:

To vote and to be elected at genuine periodic elections which shall be by universal and equal suffrage and shall be held by secret ballot, guaranteeing the free expression of the will of the electors.

So equal suffrage is a fundamental human right, included in both major global human rights declarations. It is also in the NZ Bill of Rights Act:

has the right to vote in genuine periodic elections of members of the House of Representatives, which elections shall be by equal suffrage and by secret ballot

So our law already states that equal suffrage applies to national elections. Uffindell’s bill would change NZ BORA so it reads:

Every New Zealand citizen who is of or over the age of 18 years has the right to vote in genuine periodic elections by equal suffrage and secret ballot of members of the House of Representatives; and members of local authorities.

So a very simple law change that enhances human rights in New Zealand. So how does Radio NZ report on this proposed bill. Well in this article they quote two opponents of the bill as a “backward step”, and doesn’t go to a single person (apart from the MP proposing it) supporting it for comment.

Remind me why we fund RNZ again? Because if it’s objective or trusted news, taxpayers should be demanding their money back!

Unlike Radio NZ, we think this Bill is a good one, but say it should go further and ban unelected appointees from having voting powers at Council as well.

If you have 30 seconds, please back us and sign our petition calling for equal voting rights in local elections.

>> SIGN THE PETITION 

ACC’s latest $243,000 is a pain in the backside

 

And in a slightly less serious vein (brought to us by an Official Information Act request thought up by yet another creative intern), the team this week exposed the amount ACC is spending on, well…

ACC shelled out more than $125,000 last year for injuries involving foreign objects lodged where the sun don’t shine – that’s more than double the previous year. And with $117,799 already spent this financial year, 2024/25 is shaping up to be a record-breaker a real pain in the [redacted]. 

Auckland topped the list for ‘rear-end mishaps’, with Wellington, Southland, and Otago bringing up the errr rear. 

But with ACC levies on the rise, and the organisation facing long-term fiscal headwinds, it’s hardworking New Zealanders who are the butt of this joke. Ouch.

Wellington City Council’s $22,000 Hikoi ‘flush-fund’ 

Our investigations team have caught Wellington City Council spending $21,702 of ratepayer money on portaloos for the Toitū Te Tiriti Hīkoi protest—despite never funding toilets for any other protest or having a policy to do so.

The Council admitted this was a one-off exception, not part of any established process. Every other protest pays for its own loos, so why were ratepayers forced to cover the bill for a cause council officials happen to support?

With an 18.5% rates hike already hitting Wellingtonians, the portaloos aren’t the only thing that stinks here – especially when it’s public facilities/services that only appear when it’s a protest the Mayor’s own Green Party sides with.

Other news in brief 

• Last week, we made our submission on Media Reform: Modernising regulation and content funding arrangements for New Zealand. Read our submission here. 
• The New Zealand Defence Force has announced 374 civilian job cuts 
• GDP-per-capita grew 0.4 percent, the first growth in more than two years 
• Western Bay of Plenty District Council the latest to leave Local Government New Zealand 
• 
• The Ombudsman has called for Chief Execs to be personally liable for OIA failures 
• Auckland City Councillors have been handed 150 free tickets by the owners of a stadium whose future they voted on this Thursday   Our sister group, the Auckland Ratepayers’ Alliance, is rightly calling it out.

Jordan Williams Executive Director New Zealand Taxpayers’ Union.