Brash's 'catching the Aussies' plan too radical - English

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Mon, 30 Nov 2009 5:20p.m.

Don Brash

Don Brash

By Duncan Garner

The Government’s 2025 Taskforce has delivered a radical report into how to close the wage gap with Australia.

The taskforce was set up as part of an agreement between National and ACT, but Finance Minister Bill English says the ideas are too radical – which means $400,000 worth of work looks set to be discharged.

Aussies on average earn 35 percent more than Kiwis and Dr Brash's 2025 taskforce has come with a way to close that gap – slash Government spending, entitlements and taxes.

“If we don't start now that gap will just get harder and harder to close," he said.

Dr Brash's get rich plan is controversial.

• Cut $9 billion from Government spending by 2012 across health, education and welfare.

• Introduce a 20 percent tax rate for workers and companies

• Have massive welfare reform

• Abolish KiwiSaver benefits

• Abolish interest free student loans

• Abolish free early childhood education

• Raise the age of when you can get national superannuation

• Privatise more state owned enterprises

• Lower the minimum wage

• Bring in congestion taxes in the big cities

Dr Brash says for too long governments have failed to make the tough decisions.

“Successive governments have shied away, gradually drifted down."

Already John Key is distancing himself from the recommendations, saying there may a nugget or two in the report.

Bill English was even more dismissive.

“The plan is just too radical.”

But Dr Brash is piling on the pressure for change.
 
“A little tinkering at the edges ain’t going to do it,” he said.

The 2025 Taskforce cost taxpayers $400,000, but Labour says it is a joke.

“I think it's a sham and a farce,” says Labour leader Phil Goff.

This report will end up being nothing more than a doorstop - John Key never promised radical change and to implement this plan would be like signing his own death wish.

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Comments

30 Nov 2009 11:13p.m.

Kenobi wrote:

Well Bill we arent far from it at all, in fact our health system has been a backwater for years, however his siblings made it in, Auckland has taxes for road use, University entrance became harder to get.

Instead of nicking from the super fund they just stopped contributing... probably trying to find a reason that will be exceptable before they do try to nick off with it.

Shall we keep them in for 6-9 years, gaurantee there wont be much on that list not used.

It will be much cheaper for business in New Zealand than it is for ordinary New Zealanders.

30 Nov 2009 09:49p.m.

martin wrote:

Countries that do well don't have the state look after people. Well we Kiwis do like the state to look after us so stop complaining about earning peanuts....it's the one or the other!!

30 Nov 2009 07:47p.m.

Warren Matthews wrote:

This is why Governments need to get back to Democracy and start listening to The People, instead of the 'experts'. Cut $9 billion from Government spending by 2012 across health, education and welfare... Why can't we cut spending on New Zealand trained aggressors on foreign soil aka soldiers? You mean corporate welfare right? Education... you mean research grants given to corporates to make discoveries netting millions of dollars for... corporates? Why don't you cut MP's wages, perks and benefits? Introduce a 20 percent tax rate for workers and companies I don't mind paying reasonable tax to a responsible government. I am still waiting to see either. Have massive CORPORATE welfare reform... fixed. Privatise more state owned enterprises. Have you seriously NOT learned anything? Selling Billion dollar SOE's for a couple hundred million dollars may produce a short term cash injection, but the inflationary spike following usually absorbs any economic benefit before it gets to the poor and middle class. Then to pour salt into the wound, the Tax Payer has to pay BOTH the Private AND major shareholder i.e. The Government's profit margins on capital paid for by The Tax Payer. /facepalm Lower the minimum wage. This is a moot point, you raise the minimum wage good things happen, bad things happen, you lower the minimum wage, good things happen, bad things happen. Why are you doing it, what do you hope to achieve, why don't you do something different for a change and tinker with the maximum wage? Bring in congestion taxes in the big cities. I don't believe Auckland is suited to this. I would rather see the Governments and Councils responsible for the design of Auckland city brought before the courts and put on trial for failing in their paid duty of supplying some semblance of something called future proofing.

30 Nov 2009 06:55p.m.

David wrote:

Good old business round table once again trying to call the shots to enrich itself further off this country full of easy going suckers, this country has been going down hill ever since lange.

30 Nov 2009 06:42p.m.

Jan.. wrote:

I like to see Bill English maintaing his country version where golf's 'remains the murdreres to our country along with Helen Clark..

30 Nov 2009 06:36p.m.

Bill wrote:

Thank god this idiot wasn't voted into power 4 years ago, he and Douglas won't be happy till this country is a complete backwater, but then again, we are not far off it now.