Beehive Bulletin 24 June 2005
Transport to benefit from unexpected revenue boost
Finance Minister Michael Cullen said this week that motorists, commuters and businesses will benefit from a one-off
increase in the government's tax take. New data from Treasury shows the tax take for the 11 months to 31 May was running
$544 million ahead of forecasts.
Dr Cullen said company tax was the main driver of the higher tax take, accounting for $368 million of the $544 million
variance. The government is using the windfall to put an extra $500 million into improving the transport network, so
wiping out a legacy of persistent under-investment in the tax-cutting, expenditure-cutting 1990s. The higher tax take is
a result of the financial industry responding to new tax law. Because the extra revenue is likely to be one-off rather
than ongoing, sensible fiscal policy dictates that it should be used to fund initiatives which are also one-off, Dr
Cullen says.
Govt committed to future of state housing
Housing Minister Steve Maharey said this week that the government remains committed to the revitalisation of state
housing in New Zealand. He was speaking at the launch of We Call it Home: A History of State Housing. The minister said
the government had already increased the number of state houses by 5700, with another 1000 planned in the coming year.
The provision of the houses coupled with the income-related rents policy was lifting thousands of New Zealanders above
the poverty line, the minister said. He told the book launch function that Labour was proud to be the party that
introduced state houses for New Zealand families in 1937. He said that for nearly 70 years, state housing has provided
New Zealanders with affordable, quality accommodation, and financial security for hundreds of thousands of families.
Govt releases more reviews of targeted programmes
Co-ordinating Minister, Race Relations, Trevor Mallard this week released the second group of reports and results from
the government's review of targeted policies and programmes. He said the aim of the review was to give ministers and the
public an assurance that policies and programmes are targeted on the basis of need, not race. He says the government
will continue to use targeted programmes and policies for specific ethnic groups where they are shown to be effective at
addressing their proven needs.
That is the approach also used for other groups of New Zealanders who need specific help, such as the elderly or those
in rural communities. The 20-plus review reports issued this week summarise a large volume of work that has been
undertaken by agencies and cover a wide variety of programmes, and many government departments, including the Ministries
of Education, Health and Social Development. As a result of the final phase in the review process, there will be changes
to 20 programmes, 15 require further wo
Cultural sector thriving in New Zealand
Prime Minister and Minister for Arts, Culture and Heritage, Helen Clark, said this week that culture is strong and
vibrant in New Zealand, as she released two reports on the sector. Helen Clark says the reports show substantial
development across the sector including growth in employment and in investment by central and local government. One
report showed spending increased 73 percent in the last 14 years, rising to $675 million in 2003/04.
The second showed the number of people in paid cultural employment rose by 17 percent from 1996 to 2001, nearly three
times the growth in total employment over the same period. The PM says individuals making their living in the cultural
sector, such as visual artists, performers, curators, film-makers, writers, publishers and gallery owners know they are
taken seriously as a vital component of our economy.
Govt announces next steps for troubled Wananga
Education Minister Trevor Mallard this week announced that he has taken further steps towards the appointment of a
commissioner to Te Wananga o Aotearoa. The minister announced in early May a $20 million loan to bail out the Te
Awamutu-based tertiary institute which he said was on the brink of insolvency. He said he had written to the council of
the wananga to inform it that his preliminary decision was that the council should be dissolved and a commissioner
appointed in its place.
He said that given the wananga's financial and operational situation, he had no choice but to invoke the level of
statutory intervention needed to safeguard the interests of the wananga's students. The council has 21 days to make any
submissions as to why the minister's preliminary decision should not be confirmed. If the council do not provide
convincing evidence or reasons to change the minister's decision, a commissioner will be appointed in July.
Government hails whaling victory
Conservation Minister Chris Carter said from the Republic of Korea this week that the International Whaling Commission's
backing of an Australia-New Zealand call to condemn "scientific whaling" was a victory for New Zealand. The decision
came after Japan announced plans to more than double its yearly cull. However, despite the 30-27 vote against Japan, the
IWC is powerless to stop its accelerated whaling programme.
Chris Carter says that ultimately the best hope for whale conservation is to try and hold the line until public opinion
in whaling nations such as Japan, Norway and Iceland builds up, and young people think hunting whales is simply
unacceptable in the 21st century. Helen Clark says she is very pleased with the outcome of key votes at the IWC, and
hopes it will give Japan cause to reconsider its stance. She adds that the great whales only survive because human
beings work to protect them and their habitat, and this is a cause to which New Zealand is committed.
ENDS