Ok, having reviewed ACT's effort and marked it as being, at the very best, barely a pass, here's my go at it. This is NOT Libertarianz policy, consider it maybe a halfway house between it and National, in other words what I think a bold ACT could say.
1. Government waste. Cut all government spending to the lowest of the OECD: These means cutting local government as well as national government, and being bold about waste. A smaller government than New Zealand's competitors is more ambitious than matching Australia, which is bloated by mineral wealth.
2. Cut and flatten tax rates: OK, time to repeat the already announced policies of having the first $10,000 tax free, abolishing the 39% top tax rate AND abolish the 33% tax rate. Drop company tax to 19.5%. That means flat tax at 19.5% for all.
3. Limit local government to core activities: Abolish power of general competence and cap rates, permanently (no inflation indexation). Councils would need to find new ways to raise funds (no new tax powers), and cut spending. Councils would be prohibited from entering into new activities, from subsidising businesses and the arts.
4. Reform the public service: I don't care about limiting Parliament or Cabinet, but let's require all departmental CEOs to give a report within one month of office explaining what would happen if the department was abolished. All must give two options. Those that aren't convincing would be abolished. CEO's of Ministry of Womens' Affairs, Youth Affairs, Families Commission and numerous others would be better resigning and using the time to find a real job.
5. Red tape: Require remaining government departments to report on options to eliminate costs to business, and rely upon contract, tort and private property rights instead of licensing and regulation.
6. Reform the Resource Management Act: Amend the RMA, to make private property rights pre-eminent, and make its primary purpose the extension of private property rights onto rivers, foreshore, seabed, airspace, sight lines, air quality and the like. In other words, create private property rights to enable owners to do as they wish with their OWN environment. Of course it wouldn't look much like the RMA any more.
7. Create a competitive market in education: Yes to education vouchers, extend it to university, but they should only cover half the cost of tuition. Abolish state involvement in early childhood education. Give schools full autonomy on pay and curriculum, make each school into an independent corporate entity.
8. Same in healthcare: Offer insurance model in exchange for tax cut, payment of premiums. Public can opt out of state healthcare and switch insurance providers, or can choose state healthcare which receives budget based on hypothecated tax revenue from those paying for it. Make all government healthcare facilities into businesses again.
9. Reintroduce competition to accident compensation: Competition for employer, motor vehicle and personal accounts. Compulsory cover with review to consider merits of returning right to sue for personal injury by accident.
10. Welfare: Support ACT's announced policy of shifting welfare to unemployment, sickness and invalid insurance, extend to DPB and transfer Kiwisaver to individuals to ultimately replace national superannuation.
11. Immigration: Open door with the following limits. No right to claim welfare or social assistance of any kind. No admission for those convicted of crimes that have NZ equivalents. Must have financial means (or sponsorship) for at least 3 months and airfare to return.
12. Labour reform: Shift employment law to contract law, abolish minimum wage.
13. Privatisation: Sell and give away shares for all SOEs, give away shares in hospitals, schools to the public.
14. Infrastructure: Abolish electricity and telecommunications commissioners. Return Telecom's property rights in its infrastructure, and abolish laws requiring cellphone operators to resell competitors' services. Convert Transit NZ into an SOE and privatise Auckland Harbour Bridge and its approaches, allow road users to contract directly for road use and opt out of fuel tax. Require local authorities to transfer roads into SOE equivalents. Privatisation of water/sewage.
15. Cut the remaining tariffs on imports: Perfect.
16. Free up more land for housing: Abolish urban growth limits, privatise state housing by offering Thatcher style "buy your state house" scheme, use RMA reform to reintroduce private property rights.
17. Strengthen law and order policies: Yes private prisons and get the private sector to do Police work that ISN'T about arrest (e.g. assistance, traffic control) and speed up the courts. However, introduce "points" scheme for crimes. If a criminal gets 100 points, it is permanent detention. Good behaviour inside allows for a 10% discount on sentence and points. Full review of all criminal laws to eliminate victimless crime, legalise medical use of cannabis and review laws on drugs consistent with changes to health and ACC policy (to ensure individuals are accountable for their actions).
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18. Climate change: Declare climate change policy to be abolition of subsidies for activities likely to be contributing to climate change (in fact all activities), and reducing taxes on low emission activities (and all activities). Abolishing transport subsidies and price controls on energy will help too. Quite simply, taking pro-freedom steps that are consistent with trying to reduce the theoretical impact of climate change, but nothing else.
19. Strengthen our constitutional framework: Yes to a Taxpayers' Bill of Rights, but also abolish the Maori seats, include private property rights and right to control one's body in the Bill of Rights, and eliminate references to the Treaty of Waitangi in all legislation.
20. Appoint mentors to families at risk: All very well and good, but to help this along, abolish additional welfare for children born to families or individuals already in welfare. Also deny convicted serious violent or sexual criminals the right to custody or cohabitate with anyone under 16, or the right to welfare. The stick as well as the carrot.
So there you go, it felt rather unambitious not scrapping the RMA, not introducing a libertarian constitution, not fully privatising schools and hospitals or the roads, or legalising drugs, but well this isn't for Libertarianz, it's for ACT. What do you think?
20 May 2008
An idea for Dr Cullen
Given he is buying not only Toll Rail's business and trains, but also the monopoly of track usage that the government let Toll keep when it bought the tracks, the report in the Dominion Post of a private company (Manning Group) willing (apparently) to invest in running new trains on the Wellington-Auckland line is promising.
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It shows that, perhaps, the right approach would be to sell track access to whoever is willing to pay to run trains, it may be on an exclusive franchise arrangement. In other words, private companies paying to use the otherwise worthless tracks. It does mean Dr. Cullen sharing his train set with others though. Now I don't think the Manning Group's idea makes good business sense at all, I can think of better ways to invest money that in a transport mode that takes 9 hours, when three companies fly you in an hour, but if it is their money and their track access isn't subsidised AND it stops Dr. Cullen paying for new trains to replace the Overlander, bring it on! I'm convinced that entrepreneurs can do better than the state.
The dangers of collective thinking
The Dominion Post reports on a study from Massey University that claims that migrants from the Pacific Islands are a drain on the economy. It makes a number of claims such as:
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- Pacific Islanders are more likely to be unemployed;
- Pacific Islanders are less likely to start businesses and be self employed;
- Pacific Islanders have proportionately higher rates of prosecutions and convictions;
- Pacific Islanders are more likely to be victims of violent crime;
- Pacific Islanders are more likely to need welfare including housing subsidies;
- Pacific Islanders on average perform poorly at education.
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The author Dr. Greg Clydesdale also suggest that "because of high fertility and current immigration levels, New Zealand will have a significant population that can contribute little to economic growth".
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Now such a study is probably meant to indicate there are problems, somewhat cultural around crime, business and education, that Pacific Island communities ought to address if they wish to perform better. This is not something the state can do, and it would be wise for Pacific Island community leaders to listen and consider what value this study may bring. Greater belief in education, confidence to establish businesses and a rejection of welfarism could do a world of good, and I am sure quite a few Pacific Islanders already do that.
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However, it will be jumped upon by collectivists of the left and right to condemn and throw blame, when in fact it ignores one simple point - many other New Zealanders are criminals, unemployed, lazy, poorly educated and "contribute little to economic growth", and many Pacific Islanders work hard, and live quiet lives not bothering other people.
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Collectivists on the left will blame "society" or "government" for not doing enough for Pacific Islanders, it will claim some don't understand criminal law, some don't get enough welfare or help from the state. The Labour Party sits nicely in that category. Some on the left may call the study racist, dismiss that Pacific Islanders are to blame for their fate and say it is up to everyone else to address it - in other words, Pacific Islanders are on average poorer and committing crimes because they have been failed by others.
Collectivists on the right will say migrants are a drain, there should be less of them and they are "not like us" and we shouldn't "let them take our jobs and money". This may well be Winston Peters and NZ First. Interesting that he keeps Labour in power too.
What I say is simple. Pacific Islanders should be seen as welcome, as are other migrants. However, they are responsible for abiding by crminal laws in New Zealand, and one of the first reforms of the welfare state should be to deny new migrants access to subsidised housing or welfare. Migrants should not come to New Zealand expecting to live off the state.
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You see it doesn't MATTER if Pacific Islanders or anyone doesn't "contribute to economic growth" as long as they don't live off of the state. They don't exist to contribute to ANYTHING, other than their own happiness, and as long as they don't expect everyone else to be forced to pay for them, then it shouldn't be anyone else's business.
Dr Cullen thinks it's inflationary if you spend your money but not him
According to the NZ Herald Dr Cullen continues to trot out the bizarre belief that a tax cut could be inflationary and reckless, but HIM spending YOUR money can't be. Sorry?
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So buying a railway business at a price well beyond its market price isn't inflationary? Oh no, of course not - given the money goes to an Australian company.
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Dr Cullen, the money you spend wasn't earnt by you, wasn't created by your effort. A majority of New Zealanders want some of it back, that is why it is highly likely you wont be Finance Minister at the end of the year. The big question is by how much will the Nats help voters out.
Advance auction of stolen goods
It's up to virtually NZ$4 billion from Labour and NZ$1.6 billion from National so far according to the NZ Herald, and keep counting.
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That's YOUR money they are promising to spend, to bribe you for your vote. Of course, odds are you wont benefit from much of it, but a few of you will benefit a lot.
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That's what the election is primarily about, Dr Cullen/Helen Clark and John Key/Bill English trying to convince you that they can buy more of what they think you want, whilst planning to pilfer it from your back pocket in the first place. Ask yourself why those who benefit from government spending SHOULDN'T pay for these things themselves and if they couldn't afford it, what if they got some of their taxes back? If then they wont pay, then maybe they don't want it that much?
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Now there is the hope they both will have an auction of giving you your money back, but think how much more you could get back if they weren't auctioning the spending too.
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