Close, but no cigar, Phil: Courage is the only currency that will purchase this election for Labour.
COURAGE is the most valuable political commodity. Without courage, you won’t offer the best policies. Without courage, you can’t attract the best candidates. Without courage, even the best organised political party is rapidly reduced to moral and intellectual bankruptcy.
Last Tuesday afternoon, in the Auckland suburb of New Lynn, the Labour Party leader, Phil Goff, had the opportunity to demonstrate not only the courage of his party, but his own willingness to risk everything for a Labour victory.
He failed on both counts.
What’s really infuriating about Mr Goff’s failure to be brave, is that the policy package he finally decided to offer the electorate was so very nearly enough.
With just a little more courage, the tax reforms Mr Goff announced could have been an electoral game-breaker. With just a little more courage, the moral crusade against greed, inequality and social injustice that waits only for a politician with the guts to lead it, could have been unleashed. With just a little more courage, the stark economic and social alternatives confronting New Zealand could have been thrown into sharp relief. With just a little more courage, Labour could have given us a choice.
Take, for example, Mr Goff’s announcement of a "Tax Free Zone" for low income earners. The policy’s very name – incorporating the language of the Fourth Labour Government’s high-risk anti-nuclear legislation – was clearly designed to raise the hopes and aspirations of the party’s hard-pressed supporters. And, had it encompassed the first $10,000 of income, Labour’s constituency would have stood up and cheered. Here at last would have been irrefutable evidence of Mr Goff’s determination to halt and roll-back the unrelenting transfer of wealth from the poor to the rich.
A Tax Free Zone of $10,000 would have required the wholesale reform of the way the wealth of New Zealanders is taxed. It would have mandated the re-introduction of gift and inheritance taxes; it would have required the increased taxation of repatriated profits; it would have necessitated substantially increased marginal tax rates for the highest income earners; and, most of all, it would have made sure that the gaping revenue hole, opened up by the refusal of successive governments to introduce a capital gains tax, could finally have been sealed.
The $5,000 Tax Free Zone which Mr Goff did announce is worse than nothing at all. The extra dollars it places in the hands of working people are far too few to significantly lift their living standards, and its $1.3 billion cost is simply left dangling in mid-air.
Oh sure, there are sly hints aplenty about New Zealand’s inadequate tax-gathering mechanisms – but absolutely no firm policy. This simply will not do.
In the current economic circumstances it is politically irresponsible to announce tax changes leading to a $1.3 billion decline in revenue without, at the same time, describing how it is to be made up. Labour’s opponents will, quite rightly, point out that, in the absence of corresponding tax increases, Mr Goff’s $5,000 Tax Free Zone can only be paid for by further increasing the deficit, or cutting back on government expenditure.
Mr Goff’s state of the nation speech was also silent about the crucial issue of Free Trade. While Labour clings, like a frightened child, to MFAT’s apron-strings and refuses to engage in the hard-headed analysis that would allow it to recognise the enormous economic damage this country’s fanatical adherence to Free Trade has inflicted upon its people; all the fine talk about "growing an economy that works for you" is just hot air.
For Labour to reject Free Trade and embrace Fair Trade would require enormous courage. But how brave do you have to be to announce that, upon taking office, a future Labour Government will immediately end the New Zealand State’s relationship with the Westpac Bank, and require every government department, crown-controlled entity and state-owned enterprise to source their financial services from Kiwibank?
Yet, even this tiny gesture was too much for Mr Goff.
It’s sad, because the opportunity to inflict an "Orewa" on John Key’s Government was definitely there on Tuesday. By setting the terms of the debate at this early stage, Mr Goff could have wrenched control of the political agenda from the Prime Minister’s inactive hands.
Had you dared more, Mr Goff, you would have failed less.
Courage is its own reward.
This essay was originally published in The Timaru Herald, The Taranaki Daily News, The Otago Daily Times and The Greymouth Star of Friday, 28 January 2011.
COURAGE is the most valuable political commodity. Without courage, you won’t offer the best policies. Without courage, you can’t attract the best candidates. Without courage, even the best organised political party is rapidly reduced to moral and intellectual bankruptcy.
Last Tuesday afternoon, in the Auckland suburb of New Lynn, the Labour Party leader, Phil Goff, had the opportunity to demonstrate not only the courage of his party, but his own willingness to risk everything for a Labour victory.
He failed on both counts.
What’s really infuriating about Mr Goff’s failure to be brave, is that the policy package he finally decided to offer the electorate was so very nearly enough.
With just a little more courage, the tax reforms Mr Goff announced could have been an electoral game-breaker. With just a little more courage, the moral crusade against greed, inequality and social injustice that waits only for a politician with the guts to lead it, could have been unleashed. With just a little more courage, the stark economic and social alternatives confronting New Zealand could have been thrown into sharp relief. With just a little more courage, Labour could have given us a choice.
Take, for example, Mr Goff’s announcement of a "Tax Free Zone" for low income earners. The policy’s very name – incorporating the language of the Fourth Labour Government’s high-risk anti-nuclear legislation – was clearly designed to raise the hopes and aspirations of the party’s hard-pressed supporters. And, had it encompassed the first $10,000 of income, Labour’s constituency would have stood up and cheered. Here at last would have been irrefutable evidence of Mr Goff’s determination to halt and roll-back the unrelenting transfer of wealth from the poor to the rich.
A Tax Free Zone of $10,000 would have required the wholesale reform of the way the wealth of New Zealanders is taxed. It would have mandated the re-introduction of gift and inheritance taxes; it would have required the increased taxation of repatriated profits; it would have necessitated substantially increased marginal tax rates for the highest income earners; and, most of all, it would have made sure that the gaping revenue hole, opened up by the refusal of successive governments to introduce a capital gains tax, could finally have been sealed.
The $5,000 Tax Free Zone which Mr Goff did announce is worse than nothing at all. The extra dollars it places in the hands of working people are far too few to significantly lift their living standards, and its $1.3 billion cost is simply left dangling in mid-air.
Oh sure, there are sly hints aplenty about New Zealand’s inadequate tax-gathering mechanisms – but absolutely no firm policy. This simply will not do.
In the current economic circumstances it is politically irresponsible to announce tax changes leading to a $1.3 billion decline in revenue without, at the same time, describing how it is to be made up. Labour’s opponents will, quite rightly, point out that, in the absence of corresponding tax increases, Mr Goff’s $5,000 Tax Free Zone can only be paid for by further increasing the deficit, or cutting back on government expenditure.
Mr Goff’s state of the nation speech was also silent about the crucial issue of Free Trade. While Labour clings, like a frightened child, to MFAT’s apron-strings and refuses to engage in the hard-headed analysis that would allow it to recognise the enormous economic damage this country’s fanatical adherence to Free Trade has inflicted upon its people; all the fine talk about "growing an economy that works for you" is just hot air.
For Labour to reject Free Trade and embrace Fair Trade would require enormous courage. But how brave do you have to be to announce that, upon taking office, a future Labour Government will immediately end the New Zealand State’s relationship with the Westpac Bank, and require every government department, crown-controlled entity and state-owned enterprise to source their financial services from Kiwibank?
Yet, even this tiny gesture was too much for Mr Goff.
It’s sad, because the opportunity to inflict an "Orewa" on John Key’s Government was definitely there on Tuesday. By setting the terms of the debate at this early stage, Mr Goff could have wrenched control of the political agenda from the Prime Minister’s inactive hands.
Had you dared more, Mr Goff, you would have failed less.
Courage is its own reward.
This essay was originally published in The Timaru Herald, The Taranaki Daily News, The Otago Daily Times and The Greymouth Star of Friday, 28 January 2011.