I reckon the Government is going about this fuel price rescue package the wrong way. It seems to think it's doing the right thing picking low-to-middle income earners who, it assumes, are struggling to pay the higher fuel prices. 

Of course, someone on the minimum wage, for example, is going to be harder hit by $3.30, $3.40, $3.50 a litre than someone earning $100K.

Finance Minister Nicola Willis says the people the Government wants to help are the working New Zealanders who have little option each day but to get in the car and drive to work. It wants to avoid a blanket cut to the fuel tax and it doesn't want to invent a new scheme of income assistance from scratch. 

As the Minister puts it, she wants something that doesn't involve any paperwork. Which sounds like tax credits to me. But I think the Government needs to lift its sights and think a little bit more strategically about this. 

It should be thinking about the wider consequences of higher fuel prices, however long they continue. And, instead of paying a few bucks to people on the lower pay grades, what it should be doing is providing support or providing interventions for the likes of food growers, food manufacturers, the transport and logistics sectors. Because all of those groups, they're paying higher fuel prices. But they don't just suck them up like your average motorist does. They pass them on, don't they? 

Which means the low-to-middle income people being compensated for spending more on diesel and petrol for their vehicles will still be paying more for their bread and their fruit and their veggies. Any savings will just be cancelled-out by costs passed on to them from the food processors or producers, the manufacturers, the transport sector and the farmers at the supermarket checkout. 

Maybe the Government's trying to avoid the type of criticism that would inevitably come its way if it did what I think it should be doing. Because there would be no shortage of people saying it was just looking after its people and the fat cat farmers and the corporate food manufacturers. 

Can't you hear it? But all the Government would have to say to quieten-down those people is that, if it didn‘t, they’d be paying more anyway.

LISTEN ABOVE

I reckon the Government is going about this fuel price rescue package the wrong way. It seems to think it's doing the right thing picking low-to-middle income earners who, it assumes, are struggling to pay the higher fuel prices.&nbsp;
Of course, someone on the minimum wage, for example, is going to be harder hit by $3.30, $3.40, $3.50 a litre than someone earning $100K.
Finance Minister Nicola Willis says the people the Government wants to help are the working New Zealanders who have little option each day but to get in the car and drive to work. It wants to avoid a blanket cut to the fuel tax and it doesn't want to invent a new scheme of income assistance from scratch.&nbsp;
As the Minister puts it, she wants something that doesn't involve any paperwork. Which sounds like tax credits to me. But I think the Government needs to lift its sights and think a little bit more strategically about this.&nbsp;
It should be thinking about the wider consequences of higher fuel prices, however long they continue. And, instead of paying a few bucks to people on the lower pay grades, what it should be doing is providing support or providing interventions for the likes of food growers, food manufacturers, the transport and logistics sectors. Because all of those groups, they're paying higher fuel prices. But they don't just suck them up like your average motorist does. They pass them on, don't they?&nbsp;
Which means the low-to-middle income people being compensated for spending more on diesel and petrol for their vehicles will still be paying more for their bread and their fruit and their veggies. Any savings will just be cancelled-out by costs passed on to them from the food processors or producers, the manufacturers, the transport sector and the farmers at the supermarket checkout.&nbsp;
Maybe the Government's trying to avoid the type of criticism that would inevitably come its way if it did what I think it should be doing. Because there would be no shortage of people saying it was just looking after its people and the fat cat farmers and the corporate food manufacturers.&nbsp;
Can't you hear it? But all the Government would have to say to quieten-down those people is that, if it didn‘t, they’d be paying more anyway.
LISTEN ABOVE

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Every weekday join the new voice of local issues on Canterbury Mornings with John MacDonald, 9am-12pm weekdays. It’s all about the conversation with John, as he gets right into the things that get our community talking. If it’s news you’re after, backing John is the combined power of the Newstalk ZB and New Zealand Herald news teams. Meaning when it comes to covering breaking news – you will not beat local radio. With two decades experience in communications based in Christchurch, John also has a deep understanding of and connections to the Christchurch and Canterbury commercial sector. Newstalk ZB Canterbury Mornings 9am-12pm with John MacDonald on 100.1FM and iHeartRadio.

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John MacDonald: Fuel relief plan is focusing on the wrong people

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/f071e64a-cc77-4d4d-9180-b4120180b2c4/transcript

New Zealand's economy wasn't doing as well as we thought, even before war broke out in the Middle East. 

Latest Stats NZ data shows GDP rose just 0.2% in the December quarter – well under the Reserve Bank forecast of 0.5%. 

Inflation hit 3.1% in the quarter, above the central Bank's forecast of 2.7%. 

The Herald's Liam Dann told John MacDonald if the Iran conflict continues, we could be at risk of "stagflation" – a combination of high inflation and low growth seen in the 1970s. 

LISTEN ABOVE 

New Zealand's economy wasn't doing as well as we thought, even before war broke out in the Middle East.&nbsp;
Latest Stats NZ data shows GDP rose just 0.2% in the December quarter – well under the Reserve Bank forecast of 0.5%.&nbsp;
Inflation hit 3.1% in the quarter, above the central Bank's forecast of 2.7%.&nbsp;
The Herald's Liam Dann told John MacDonald if the Iran conflict continues, we could be at risk of "stagflation" – a combination of high inflation and low growth seen in the 1970s.&nbsp;
LISTEN ABOVE&nbsp;

Liam Dann: NZ Herald Business Editor on the GDP growing by 0.2%

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/d12a916b-6681-41ff-a244-b4120005f4a7/transcript

While I don't like the idea of us being dragged into the AUKUS military alliance with Australia, the UK, and the US, I think what the government's doing creating something along the lines of an ANZAC defence force - I think it makes a truckload of sense.

The plan is that by 2035 there'll be an integrated, combat capable Australia New Zealand defence force. Combat capable is the particularly interesting bit.

I don't know about you, but I was a little bit surprised when I heard about this plan. Although it does seem that it's been on the cards for a while now, especially when you consider some of the new kit that the Government's buying for the New Zealand Defence Force and how it matches what Australia's got.

As for AUKUS, Defence Minister Judith Collins was asked whether this will align us with it. And she said it won't. But the proof of course will be in the pudding. And it's probably easy in some ways for Judith to say that given that her political career is finishing up.

Nevertheless, in principle, I think it's a no brainer. As Judith said this morning, we're a very small country in terms of population, but our defence force has got to spread itself very thinly over a very wide area. Here, throughout the Pacific and the Antarctic region.

She says effectively joining forces with Australia is a much more clever way of making the most of our defence resources and making the most of Australia's defence resources.

So no argument from me. But I'm not convinced about us being able to do this without being dragged into the AUKUS alliance in some way, shape, or form. And I'm picking that former Prime Minister Helen Clark will be thinking along the same lines. Because last year, when there was speculation or discussion that the Government might be thinking about signing New Zealand up as some sort of second tier member of AUKUS, she said we shouldn't be touching it with a barge pole.

According to Helen Clark, if you’re an ally, you can get dragged into all sorts of things that you shouldn't be dragged into or don't want to be dragged into.

Although I think we're seeing that allies are learning to say no to each other a bit more often. Which is why Donald Trump's nose is out of joint.

But if we go on what Judith Collins is saying, and I'm prepared to, the New Zealand Defence Force will still think for itself and will still be in charge of its own people. She says, "We'll make our own sovereign decisions. These are our people in our uniforms." And here's what I think is the most reassuring part. Judith Collins says "If the Australians were doing something we weren't happy with, we'll pull our people out," noting that Australia would be free to do the same.

So the way I see it, this is nothing more than a common-sense approach for a tiny country which has let its defence force run on the smell of an oily rag for far too long. We're playing catch up now, sure, but we are dreaming if we think we can do it all on our own.

LISTEN ABOVE

While I don't like the idea of us being dragged into the AUKUS military alliance with Australia, the UK, and the US, I think what the government's doing creating something along the lines of an ANZAC defence force - I think it makes a truckload of sense.
The plan is that by 2035 there'll be an integrated, combat capable Australia New Zealand defence force. Combat capable is the particularly interesting bit.
I don't know about you, but I was a little bit surprised when I heard about this plan. Although it does seem that it's been on the cards for a while now, especially when you consider some of the new kit that the Government's buying for the New Zealand Defence Force and how it matches what Australia's got.
As for AUKUS, Defence Minister Judith Collins was asked whether this will align us with it. And she said it won't. But the proof of course will be in the pudding. And it's probably easy in some ways for Judith to say that given that her political career is finishing up.
Nevertheless, in principle, I think it's a no brainer. As Judith said this morning, we're a very small country in terms of population, but our defence force has got to spread itself very thinly over a very wide area. Here, throughout the Pacific and the Antarctic region.
She says effectively joining forces with Australia is a much more clever way of making the most of our defence resources and making the most of Australia's defence resources.
So no argument from me. But I'm not convinced about us being able to do this without being dragged into the AUKUS alliance in some way, shape, or form. And I'm picking that former Prime Minister Helen Clark will be thinking along the same lines. Because last year, when there was speculation or discussion that the Government might be thinking about signing New Zealand up as some sort of second tier member of AUKUS, she said we shouldn't be touching it with a barge pole.
According to Helen Clark, if you’re an ally, you can get dragged into all sorts of things that you shouldn't be dragged into or don't want to be dragged into.
Although I think we're seeing that allies are learning to say no to each other a bit more often. Which is why Donald Trump's nose is out of joint.
But if we go on what Judith Collins is saying, and I'm prepared to, the New Zealand Defence Force will still think for itself and will still be in charge of its own people. She says, "We'll make our own sovereign decisions. These are our people in our uniforms." And here's what I think is the most reassuring part. Judith Collins says "If the Australians were doing something we weren't happy with, we'll pull our people out," noting that Australia would be free to do the same.
So the way I see it, this is nothing more than a common-sense approach for a tiny country which has let its defence force run on the smell of an oily rag for far too long. We're playing catch up now, sure, but we are dreaming if we think we can do it all on our own.
LISTEN ABOVE

John MacDonald: ANZAC force - are we biting off more than we can chew?

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/2944fd0d-cf2a-4a14-a6da-b4110182701f/transcript

There’s no doubt the Government has failed us on food prices. 

But then, it was always going to. In fact, any politician who says they’re going to bring food prices down is dreaming. 

This election year, if you hear any of them saying they’re going to get on top of the costs of living and you’ll be paying less at the supermarket if you vote for them, just block your ears.  

Tell them to go and talk to some other mug because you know it’s impossible and they’ll never do it. 

And this is not me having a go at any particular political party or any particular political ideology. 

Remember last election, we had Labour trying to push the idea of no GSTon fruit and veggies? 

Grant Robertson had always been against it but, obviously, realised Labour was pushing it uphill, and he just went along with it because he thought there might be enough clowns who would fall for it. 

I didn’t. I saw it for what it was. Because prices for things still go up whether or not there are taxes. 

That was Labour‘s big idea last election and we’re yet to see anything meaningful from them this time around. That’s because politicians can do very little when it comes to food prices. 

If you’ve been at the supermarket and thought the price of mince is a bit steep, you’d be right. 

In the past year, mince has gone up 23.2 percent. The largest increase on record. 

Fruit and vegetable prices are up too, by nearly 10 percent. 

Now, granted, there have been some decreases month-on-month, but that doesn’t change the fact that, compared to this time last year, we are paying way more for food. 

Nicola Willis talked a big game on food prices. She was going to crack down on the supermarkets. She was going to bring prices down. 

She hauled the Fonterra boss into her office to talk about the price of butter. It was all grand gestures with very little to show for it. 

But that’s not Nicola Willis’ fault. Just like she wouldn’t be able to take the credit if prices went down. 

And it’s not Nicola Willis’ fault or the fault of anyone in the current government because, when it comes down to it, politicians don’t and can’t bring food prices down. 

If you want to point the finger at anyone, point it at the people who believe politicians when they say they can. 

LISTEN ABOVE

There’s no doubt the Government has failed us on food prices.&nbsp;
But then, it was always going to. In fact, any politician who says they’re going to bring food prices down is dreaming.&nbsp;
This election year, if you hear any of them saying they’re going to get on top of the costs of living and you’ll be paying less at the supermarket if you vote for them, just block your ears. &nbsp;
Tell them to go and talk to some other mug because you know it’s impossible and they’ll never do it.&nbsp;
And this is not me having a go at any particular political party or any particular political ideology.&nbsp;
Remember last election, we had Labour trying to push the idea of no GSTon fruit and veggies?&nbsp;
Grant Robertson had always been against it but, obviously, realised Labour was pushing it uphill, and he just went along with it because he thought there might be enough clowns who would fall for it.&nbsp;
I didn’t. I saw it for what it was. Because prices for things still go up whether or not there are taxes.&nbsp;
That was Labour‘s big idea last election and we’re yet to see anything meaningful from them this time around. That’s because politicians can do very little when it comes to food prices.&nbsp;
If you’ve been at the supermarket and thought the price of mince is a bit steep, you’d be right.&nbsp;
In the past year, mince has gone up 23.2 percent. The largest increase on record.&nbsp;
Fruit and vegetable prices are up too, by nearly 10 percent.&nbsp;
Now, granted, there have been some decreases month-on-month, but that doesn’t change the fact that, compared to this time last year, we are paying way more for food.&nbsp;
Nicola Willis talked a big game on food prices. She was going to crack down on the supermarkets. She was going to bring prices down.&nbsp;
She hauled the Fonterra boss into her office to talk about the price of butter. It was all grand gestures with very little to show for it.&nbsp;
But that’s not Nicola Willis’ fault. Just like she wouldn’t be able to take the credit if prices went down.&nbsp;
And it’s not Nicola Willis’ fault or the fault of anyone in the current government because, when it comes down to it, politicians don’t and can’t bring food prices down.&nbsp;
If you want to point the finger at anyone, point it at the people who believe politicians when they say they can.&nbsp;
LISTEN ABOVE

John MacDonald: Food prices are one thing we can't blame on politicians

https://api.omny.fm/orgs/7784f840-c291-422a-924b-ad9000bbad71/clips/ece0eacb-5b01-4a6c-b255-b410018719df/transcript

John MacDonald: Fuel relief plan is focusing on the wrong people

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