Robert MacCulloch
Robert MacCulloch is a native of New Zealand and worked at the Reserve Bank of NZ before travelling to the UK to complete a PhD in Economics at Oxford University.
1. Finance Minister Willis was asked whether she wanted to change legislation to force the Reserve Bank of NZ to cut capital requirements that are currently being imposed on our Big Banks. She replied, “Whether or not I need to do that is something I’m taking advice on.”
2. Finance Minister Willis was asked about upping KiwiSaver contributions. She replied, “I’m seeking advice and taking advice on where we take KiwiSaver in the future.”
3. Finance Minister Willis was asked how she would increase competition to counter rip-off prices of the supermarket duopoly. She replied, “I want to seek advice on how we ensure that we get a third entrant into this (grocery) sector.”
4. Finance Minister Willis, when asked about whether the Reserve Bank could cut spending without sacrificing its “core functions”, said that she needed “advice” on the matter.
5. Finance Minister Willis was asked how she’d fund the tax changes in her 2024 budget so they wouldn’t increase the budget deficit. She said she was “seeking advice from officials”.
6. Finance Minister Willis was asked whether the NZ Super Fund’s income should be made tax exempt. Willis replied that she was “asking officials for advice”.
7. Finance Minister Willis told the country after cancelling the Cook Strait Ferry contract with Hyundai that she needed to take “independent advice” and so was establishing an “advisory group” to advise.
8. Finance Minister Willis said she needed to get “advice” on how to better capitalize Kiwibank so it might better compete with the large Australian-owned banks.
9. Finance Minister Willis, when asked about the taxpayers’ exposure to the collapse of SolarZero, which the government-owned Green Investment Fund had lent $115 million, said she had to “seek urgent advice”.
10. Finance Minister Willis, when asked about employee bonuses at Radio NZ for proficiency in te reo Māori said she was “seeking advice how to stop the bonuses being negotiated in future”.
Want to go on and on? The way Finance Minister Willis answers every question about every aspect of her job is to say she is ‘seeking advice’. Does she not know finance? Does she not know economics? Every one of these decisions depends entirely on your own pre-prepared economic plan and the aims you wish to achieve. Once you’ve worked out that plan (in opposition), then you can already answer every one of the above questions. The only advice you then need is on implementation details. That is how economics works.
When former PM Ardern came to power, the Nats said she had no economic plan. She commissioned endless reviews to give her clues. Now it has become apparent that the National Party’s own finance minister is also making it up as she goes along. That being said, National should be given another term, just because Labour were so awful last time.
But it’s also obvious now that the Nats have come to power with few ideas. The problem with the ‘strategy’ of forever seeking economic advice is that you can always find diametrically opposing views, with strong arguments either way. So you must develop your own deep thoughts about your aims and methods before obtaining power. It’s clear Labour and National both haven’t done their homework, other than on how to obtain and maintain power.
This article was originally published by Down to Earth Kiwi.
