John MacDonald: How does reducing revenue equal a business-like approach?

Get ready for what we now know will be a winter of discontent after the announcement by Nicola Willis that she is slashing government spending. 

Which shows us once and for all, that the income tax cuts were a dreadful mistake. Because it’s not just ideology driving these budget cuts - it’s need. 

The Government has much less money coming in the door through taxation - which means it’s got much less to spend. 

And, maybe conveniently, the Finance Minister’s announcement yesterday came 48 hours before 5,000+ senior doctors go on strike wanting more pay. 

But if the Minister was watching the news last night, she would have seen people asked in the street what they thought she should focus her spending on in next month’s budget. And it was clear, hands down, that most people thought it was health. And I’m the same. 

If there’s one thing that affects us all in some way, shape or form - it’s the state of the health system. 

I think the Government needs to take holistic view of the world when it comes to health and not just pour money into hospitals. But I think health spending or increased health spending needs to go into things from treating people who are really crook, people who need treatment to live productive and happy lives, but also things that help prevent people from getting unwell in the first place. 

The bigger issue for the Government though, aside from the state of the books, is maintaining public confidence. Winter is always the hardest time for us to keep our chin up and the Government will be aware of that. 

And no amount of cheerleading or writing-off its political opponents as moaners with no ambition is going to cut it anymore. Nor is some of the patronising talk we’re hearing from the Finance Minister, who is at-risk of becoming as patronising as Jacinda Ardern was by the end of her tenure. 

We don't need to be told about household budgets and credit cards being declined to understand that the country is in the shtook. Just like we don't need patronising talk about Toyota Corolla ferries instead of Ferrari ferries. 

Even if you think Nicola Willis is the best thing since Ruth Richardson, you must be getting tired of some of the talk. 

The other thing that gets me is that a lot of people bang on about us needing governments with business experience. 

You know, successful people who know how to run a budget. But it always seems to me that when these so-called successful people do get into government, they do the complete opposite of what people expect them to do. 

For example: when you run a successful business, yes, you do keep an eye on costs. But there’s another thing you do as well when you run a business: you try to get as much revenue in the door, as possible. 

But this government has done the complete opposite of that with its tax cuts. 

No one’s better off. And the Government has way less money to spend. 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Morning's Podcast with John McDonald
from Newstalk ZB.

Speaker 2 (00:12):
Get Ready, Get ready for what we now know will
be a winter of discontent. That's after the announcement by
Nikola Willis yes today that she is slashing government spending
by billion dollars And this shows us once and for all,
isn't it? It shows us that the income tax cuts
were a dreadful mistake because it's not just ideology driving

(00:35):
these budget cuts, its need. You see, the government has
much less money coming in the door through taxation, which
means one thing that's got less to spend. And maybe conveniently,
the Finance Minister's announcement yesterday came forty eight hours before
five thousand plus senior doctors go on strike wanting more pay.

(00:56):
Maybe maybe it was more than just a fluke, Maybe
it was more than just convenience. Who knows, But if
the minister was watching the TV news last night last night,
she would have seen people being asked in the street
what they thought she should focus to spending on in
her slashed budget next month, and it was clear, hands

(01:19):
down that most people thought it was health. And I'm
the same because if there's one thing that affects us
all in some way, shape or formance the state of
the health system. And I know that health is a
bottomless pit when it comes to spending. But you know,
as one of those people on the news said last night,
we are nothing without our health. And I'm not talking

(01:41):
here about what could probably be described or I am
talking here about what could probably be described using one
of those words that a cringe app but I'm going
to use it anyway. But I think the government needs
to take a holistic view of the world when it
comes to health funding, and not just pour money into hospitals,
for example. But I think health spending or increased health

(02:04):
spending needs to go into things all the way, from
treading people who are really crook to people who need
treatment to live productive and happy lives, but also things
that help prevent us from getting unwell in the first place.
So if there's less money in the tin, then that's
what I think the focus should be when it comes
to spending. But what about you, Will you tell me

(02:26):
the bigger issue for the government, though, aside from the
state of the books, is maintaining public confidence. Our winter
always win is always the hardest time for us to
keep our chins up. Government will know that, and no
amount of chair leading or writing off of its political

(02:48):
opponents is nothing more than moners with no ambition. I
don't think that's going to cut it anymore if the
government thinks that's going to be its strategy or its approach.
Nor is some of the patronizing talk we're hearing from
the Finance Minister. When I saw Nichola Willis on the
news last night giving that speech to the the gathering
hosted by the Hut Valley Chamber of Commerce, you know

(03:09):
what I've thought. I thought what some of those people
in the audience must have been thinking. People who run businesses,
people who employ people, and she was telling them quote
Most of you can probably relate to this if you
think about your own household budget. Sure, sensible borrowing has
its place, but no overdraft can be extended forever. And

(03:32):
while you can keep giving the credit card a hammering
left unpaid, it does eventually get declined. End of quote.
You know, I think the Finance Minister is bordering on
becoming just as patronizing as Jasindra Adun was. And we
were all sick of that, weren't we. We don't need
to be told about household budgets and credit cards being

(03:54):
declined to understand that the country's in the stook. I
don't need it, do you? Just so we don't need
patronizing talk about Toyota Corolla fairies instead of Ferrari fairies.
See what I mean? Even if you think Nichola Willis
is the best thing since Ruth Richardson, surely even you
must be getting tired of this patronizing language coming out

(04:15):
of the beehive. Not that she's the first politician to
talk about there being no lolly scrambles and the budget
David Longi did it, bil English did it, Grant Robinson
did it. Blah blah blah. But aside from the patronizing language,
the thing that gets me is that a lot of
people bang on about us needing governments with business experience.
You know, we need successful people they know how to

(04:36):
run a budget. But it always seems to me that
when these so called successful people do get into government,
they do the complete opposite of what people expect them
to do. You know, when you run a successful business, yes,
you do keep an eye on costs, and you trim
costs where you can and where they make sense. But

(04:57):
there's another thing you do as well in business. You
try to get as much revenue in the door as
possible as absolutely possible. But this government has done the
complete opposite of that with its daft tax cuts. And
I think we can all agree, now, can't we, that
the tax cuts have been disastrous for the economy. No

(05:18):
one's better off, and the government has way less money
to spend. I mean, we shouldn't. We shouldn't be surprised. Well,
I'm not because I saw this happening a mile off,
because I'm not seeing the business thinking that we were
promised and now we're paying for it.

Speaker 1 (05:37):
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