Letters: Christopher Luxon not to blame for Crown debt costs; NZ’s Covid response priorities
Don’t cry for us Mr Hooton
Matthew Hooton’s Argentinian economic reform comparisons with the Christopher Luxon-led New Zealand Government reforms are disingenuous (NZ Herald, December 6).
Argentina, a country of 47 million people, has suffered from decades of gross economic mismanagement. It is a country with a 53% poverty rate, an average monthly salary of US$200 ($343) and inflation rates often around 200% pa.
In addition, it had defaulted multiple times (2001, 2014 and 2020) on its international sovereign debt. Surely not an economy worthy of benchmarking New Zealand with.
Hooton also runs some numbers around New Zealand net core Crown debt and GDP that smack of “cherry-picking” to facilitate a story. A cursory review of New Zealand Government financials show net core debt increased by a massive $116 billion ($59.5b to $175.5b) in the seven-year period from June 2017 to June 2024.
Whilst acknowledging the economic impact of Covid, it’s worth noting that Luxon was only Prime Minister for seven months in that time.
Also worthy of note is that financing costs of servicing Crown debt has increased to $8.8b – just another major economic headwind faced by Luxon.
Bruce Eliott, St Heliers.
Covid priorities
As a registered nurse in New Zealand, watching the health facilities overseas battle Covid and coming nearer, I was so relieved when the borders closed.
We did not have the facilities, equipment and personnel needed to care for a deluge of patients. It bought us time while a vaccine was developed but when it arrived, we needed to get it to everyone as quickly as possible.
In hindsight, we should have spent the exorbitant price by drug companies of $48 million and got it earlier. Hindsight is 20/20 vision.
We had spent so much supporting everyone while in other countries they queued up for hours for food parcels. So Labour saved it and we had to wait for another turn to obtain vaccines.
I feel another government would have let Covid in and protected business. However the death toll would have been unimaginable.
Danny Sinton, Swanson.
Airport share sale
It’s good that Auckland Council has completed a smooth sale of their Auckland International Airport shares.
What is less clear is whether the Auckland Future Fund (AFF) will provide genuine long-term benefits to ratepayers, or will simply be used as a contingency fund to be dipped into as and when required.
Other councils who have gone down this track have found they need extra officials, consultants and advisers to manage these funds, all of whom detract from returns, which are at best uncertain. Nobody beats the market for long, although the projected 3% dividend on the initial $1.3 billion does appear quite modest, suggesting that council may be better to simply repay debt (assuming their borrowing costs are greater than 3%).
Otherwise the AFF, whilst preserving the illusion that the family silver hasn’t been sold, may prove to be either a black hole demanding ever-increasing resources, or a piggy bank operating at the whim of the council.
Duncan Simpson, Hobsonville Point.
Ratbag runaways
It was absolutely amazing to hear the Children’s Minister state that two dangerous 15-year-old boot camp attendees who scarpered when attending a tangi actually did not escape but “absconded”.
So, what’s the difference and why were they allowed to be there, presumably unrestrained, in a group of some 150 people? If that’s the brain power of our ministers, then God help us. Easily out-thought by these two ratbags.
Paul Beck, West Harbour.
Snail mail
A pre-paid business letter from Central Auckland, franked on November 18, was not delivered to my place in Epsom until December 4. That is over two weeks.
When I phoned to complain, I was told that this was a very busy time of the year. Furthermore, some mail was taking a month (the impression gained: I was lucky to get mine so quickly).
As Christmas happens every year at the same time, I suggested extra staff both should and could be employed. I’m not holding my breath though and am cross on missing out on free movie passes.
Is New Zealand a First World country? I wonder.
Bev Langdon, Epsom.
Boxing on
So David Walsh CEO of NZ Post is the third highest-paid public CEO in NZ on almost $1.2 million (Weekend Herald, December 7).
Yet, over six months since he temporarily closed the New Lynn post boxes, he has not yet found another NZ Postshop, forcing all the mailbox holders, including me, for over half a year to drive to Henderson six times a week to get our mail.
David, please earn your high salary and get another New Lynn Postshop before Christmas as all our Christmas presents. We really deserve it.
Murray Hunter, Titirangi.