Wednesday, May 11, 2011

The New Zealand Budget 2011

I have a dream, or is it a nightmare?


I get the impression that within a certain number of years into the future that most thinking and working New Zealanders will be living in Australia and that those left will be either in hospital or living off a government benefit. Maybe this will happen by 2026 according to a review of online statistics and predictions.


Here is my view both both as a businessman and a counsellor. First some facts then some commentary. I invite your thoughts as a follow up.


Personal Comment: I love New Zealand and this is my home and the country that I and my family choose to live in. The World's economy is fragile and out of control.


SOME New Zealand FACTS- check the internet for confirmation, mostly NZ Government websites.


1. We just heard of  a blowout in our NZ Budget by over NZ$10 billion.
2. Annual retail spend on alcohol in New Zealand NZ$4.5 billion
3. Annual retail spend on cigarettes in New Zealand NZ$ 1.6 billion
4. Annual spend on gambling in New Zealand NZ$2.0 billion
5. Annual spending on illicit drugs in New Zealand NZ$1.5 billion
6. Annual spending on Domestic Purposes Benefit (D.P.B) NZ$2.3 billion
7. Increase in annual NZ Government spending year in the last 10 years NZ$18.0 billion
8. Outstanding-unpaid student loans NZ$7.5 billion
9. Cost of Healthcare in New Zealand per year NZ$12 billion....by 2026 estimated to cost NZ$45 billion
10. Annual cost of Education in New Zealand NZ$12.4 billion up 43% in the last 10 years. in 2000 we spent NZ$8.7 billion.
11. Child birth in New Zealand. in 1968 87% births were to married mothers and 13% was to unmarried mothers. In 2008 that changed to 52% of births to married mothers and 48% to unmarried mothers.  The Labour Government estimated in 1972 that the annual cost of the DPB would be around NZ$250,000.  In 2008 the annual cost of the DPB was NZ$2.3 billion.
12. Over 400,000 New Zealanders now reside in Australia......and increasing.
13. The NZ Government's income is from GST NZ$12 billion. From Personal Tax NZ$26 billion. From Company Tax NZ$ 7 billion. From other sources NZ$7 billion.
14. Currently a couple are producing just over 2.1 children. Within 20 years that will drop to 1.9 children per couple. Australia is already 1.9 children per couple. Under 2.0 means the population is dying and reliant on immigration to produce workers.


What does this information tell you, when you look at it collectively?


Well this is what I think is going on..... don't forget I am a Kiwi and I will not be leaving to go live in Australia....I like it here. I would rather we wake up and turn this country around and I do not think for a moment that we should rely on the Government to do this. It is my responsibility and yours.


Let's talk as if New Zealand was a family and reflect on the above data in relationship to that family. How is the family?


We are impatient. We want everything now. We don't want to work as hard and we expect the government to fund our present and future. Realistically the family is spending its assets on day to day living. Some of this day to day living is not healthy. Reviewing items 1-7 above it is interesting that the extra NZ$18 billion per year that the government is spending can be split 50% on our family smoking drinking gambling etc., and 50% on extra Government expenses looking after our increasingly unhealthy family members. We are getting sick.


I read a report (Cancer Society) that smoking in New Zealand is costing us NZ$22 billion per year in lost earnings. This is because people are dying up to 14 years earlier than non-smokers. Others have calculated that this might be actually up to NZ$30 billion per year.  Our family is killing itself and leaving our children without elders to pass on wisdom or to mentor our young ones through life's difficulties. I see this every week. As a result we are becoming reliant on new immigrants to run the country....I am thankful that they come to New Zealand. Who else will do the work. Our doctors, nurses, teachers, professionals, hospitality workers speak less with a Kiwi accent than even 10 years ago. (this is neither bad nor good, it just is). Having been in Australia a few weeks ago, I am amazed at how quickly Kiwis learn to speak with an Australian accent. I wonder if they are less happy to identify themselves as Kiwis?


If the Kiwi family was to look at itself, there are some obvious changes that need to be considered before extinction and death set in?


1. Our health. We are wasting $10 billion per year on alcohol and drugs that in turn impact on health services and lost production. See note 9 above. By 2026...an extra NZ$40 billion will be needed for health. NZ will just be a great big hospital full of sick people visiting sick people. Why have we become so weak that we need NZ$10 billion worth of unhealthy hedonistic pleasure per year? We can't afford the cost or the outcome. No wonder we all call it (marijuana) "dope"  If we cleaned up our health we would save maybe NZ$20 billion per year and NZ$10 billion of it would appear in our family bank account.  Personally I do not want to earn what an Australian earns and catch up and make the wages gap smaller. If we stopped our drunken, drugged stupidity we could buy Australia in 10 years just from our savings account.  Note to self: Open a buy Australia (the Country) account.


I am impressed by the latest Australian moves to turn their country around. I hope we in New Zealand are brave enough to stop the rot and copy all of the Australian initiatives....and more.


2. The Domestic Purposes Benefit is killing New Zealand. If you Google "DPB in New Zealand" and read some of the reports that have been commissioned, you will see that there is an almost universal understanding that the DPB is making New Zealand poorer, unhealthier and incarcerated. We have unwittingly created a society of dependence on the state for our livelihood for generations. Back to the NZ family.....Why are we not looking after own family. It is frequently called the whanau, but in reality it is increasingly more dysfunctional and non-communicative. I believe I should look after my own family  first and also help my neighbor if needed. A major problem we have is that soon (the next 20 years) single parent families will outnumber 2 parent families.


3. The Kiwi family does not need Government initiatives more than it needs family initiatives. Nearly 50% of married couples end up in separation and divorce. This is in fact slowly reducing, but not fast enough. Our socialistic system finances the dissolution of families and puts them into a spiral of long term poor health and poor finances. What are we doing to keep families together .......CYFs? I spend much of my professional time teaching couples tools for survival. We have fewer and fewer role models of how to get it right. Too many couples are quitting before they even give it a try. Why would you want to be in a relationship with someone who gave up on their last relationship without trying to fix it? 


I have seen clinical evidence that one thing preventing couples from solving their problems is alcohol and drug use. The clinical term is co-morbidity. When I meet couples with alcohol problems (Not difficult to find in New Zealand) I know that they will not be able to sort themselves out without addressing their drinking problem first.


Now you know why I choose not to use alcohol or to smoke dope or cigarettes. It is not for religious reasons, it is purely common sense. There are things I need to work on like more exercise so that I don't consume diabetes dollars in the future......so far so good.


Where do you need to start? If the "Kiwi family" does not make several important changes real soon we will be morally, mentally, physically and financially bankrupt. 


One of the changes my own Kiwi family has made in the last 18 months is to move from a consumer based traditional church religious culture to a Simple Church - zero cost, maximum relational aspect. It costs religions millions of dollars to keep churches open. By meeting with a few friends in our home as a Simple Church each Saturday, we are supporting each other with the challenges life presents to us as well as our spiritual appetites. It works, zero cost. We can help each other overcome the unhealthy culture we have developed in New Zealand with alcohol and drugs and save at least NZ$10 billion.....one family at a time.


Gandhi once said "be the change you want to see in the world...."  I think he was right. I now need to look at myself. My health ...and do more exercise. My eating habits, my discretionary spend on non essentials, how I help my neighbour with his/her problems. 


I am not asking you to vote for me or this blog because I am not in parliament.  I hope that those elected to serve in government in New Zealand will change things for the good of the Kiwi family and not just to attract their vote. I hope to see a tough love budget for the Kiwi family in this next financial package.


What patterns do you see from the information listed above? Where are we headed? What is your vision for your Kiwi family?


Thanks for reading.


Graham Ure  May 11th 2011





















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