@nzlabour – wanted by the sugar police

As the New Zealand Medical Association has pointed out tackling obesity needs to be embedded in everything, from new buildings to school classrooms…

The food industry needs a rev up as well. There’s no reason manufacturers couldn’t already have been reducing sugar and saturated fat in process food. That shows there needs to be some very strong directives from the Government.
Andrew Little, Leader of the Opposition, 19 October 2015

I’m really concerned that we’ve wasted eight years in terms of doing anything about obesity since the government’s been in after they cancelled all programmes, and what they have put in place is timid. They are not treating obesity with the seriousness that they ought to.

They’ve got to a bind now it’s hard to get out of without looking like nanny-state. They’ve got to get over themselves and think about the health of New Zealanders rather than their own political backsides.
Labour Party health spokesperson Annette King, 11 December 2015

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Effective marginal tax rates on single and dual earner families in the USA, Britain, France, Germany, Canada, Italy, Sweden, Denmark, Australia and New Zealand

Some countries including New Zealand and Australia do not give ordinary families much of an incentive to earn more. Effective marginal tax rates on low income families is one of the few times that the Left discovers supply-side economics.

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Source: Taxing Wages 2015 – OECD 2015.

Income tax plus employee Social Security contributions less tax benefits by family structure in the US, Britain, Canada, Germany, Italy, Denmark, France, Sweden, Australia and New Zealand

Those sensitive and caring northern European welfare states do tax families rather heavily even after accounting for family cash benefits.

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Source: Taxing Wages 2015 – OECD 2015.

Income tax plus employee contributions less cash benefits as % of earnings by family type in USA, Britain, Canada, Sweden, France, Italy, Denmark, Germany, Australia and New Zealand

Those much admired northern European welfare states tax families and individuals much more than do the Anglo-Saxon welfare states.

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Source: Taxing Wages 2015 – OECD 2015.

Why are conspiracy theorists so trusting of citizen initiated binding referendums?

After reflecting far more than I should on some conspiracy laden testimony at Parliament yesterday, one of the things I recall was a demand that the approval of the TPPA be put to binding referendum. The conspiracy theorist at hand was deeply concerned about how that treaty was encroaching on New Zealand’s sovereignty.

Why did this conspiracy theorist assume that a binding referendum will go his way and that opposing conspiracy theorists will not put up their own binding referendums in which he will lose?

The major drawback of citizen initiated referendums is any bunch of people can put them up much to the annoyance of those who will be a victim of the law to be passed.

Just as rotation of power is inherent to Parliamentary democracy, the ability of the crazies to the either the left or the right of you to initiate their own binding citizen initiated referendums. The first referendum is likely to be on one of the following:

  • decriminalising marijuana,
  • banning smoking,
  • voluntary euthanasia,
  • a living wage,
  • life means life in prison,
  • same-sex marriages,
  • marriage is between a man and a woman,
  • entrenching the Treaty of Waitangi,
  • abolishing the Maori seats,
  • entrenching the Maori seats,
  • stop school closures,
  • capital punishment; and
  • future referendums not be binding.

Binding referenda are unworkable. Parliament can’t amend them later as we learn from the implementation of the law and unintended consequences arise. Every new law is riddled with unintended consequences and blow-backs.

Do you really want to have to have another referendum to undo a binding referendum that turned out to be a bit of a mistake? One of the few redeeming features of the Parliament that is sovereign – a parliament for can make or unmake any law whatsoever – is it can repeal its mistakes quickly.

The first citizens initiated referendum was held on 2 December 1995. The question was

Should the number of professional fire-fighters employed full-time in the New Zealand Fire Service be reduced below the number employed in 1 January 1995?

Turnout was low as the referendum was not held in conjunction with a general election, and the measure was voted down easily, with just over 12% voting “Yes” and almost 88% voting “No”.

The key to constitutional design is not empowering you and yours – it is how to restrain those crazies to the Left or the Right of you, as the case may be, when they get their hands on the levers of power, as they surely will in three, six or nine years’ time.

The one inevitability of democracy is power rotates – unbridled power and binding referenda lose their shine when you must share that power with the opposing side of politics who put up their own referendum question.

Constitutions are brakes, not accelerators. Much of constitutional design is about checks and balances and the division of power to slow the impassioned majority down.

Conspiracy theorists that pretty much sore losers. The last thing they want is a binding referendum on a topic on which they are going to vote no.

The problem of constitutional design was ensuring that government powers would be effectively limited. The constitutions were designed and put in place by the classical liberals to check or constrain the power of the state over individuals.

The motivating force of the classical liberals was never one of making government work better or even of insuring that all interests were more fully represented. Built in conflict and institutional tensions were to act as constraints on the power and the size of government.

Modern democracy is government subject to electoral checks. Citizens do have sufficient knowledge and sophistication to vote out leaders who are performing poorly or contrary to their wishes. Modern democracy is the power to replace governments at periodic elections.

The power of the electorate to turn elected officials out of office at the next election gives elected officials an incentive to adopt policies that do not outrage public opinion and administer the policies with some minimum honesty and competence.

Too many want to remake democracy with the faculty workshop as their model. Such deliberation has demanding requirements for popular participation in the democratic process, including a high level of knowledge and analytical sophistication and an absence, or at least severe curtailment, of self-interested motive. The same goes for citizen initiated binding referendums.

The rotation of power is common in democracies, and the worst rise to the top, so it is wise to design constitutional safeguards to minimise the damage done when those crazies to the right or left of you get their chance in office, as they will.

State power was something that classical liberals feared, and the problem of constitutional design is insuring that such power would be effectively limited. Conspiracy theorists lose all their fear of power by drinking on the heady wine of citizens initiated referendum. Be careful for what you wish for.

Income tax and social security contributions as a percentage of gross wage earnings in the USA, Britain, Canada, Germany, Denmark, Italy, France, Sweden, Australia and New Zealand

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Source: Taxing Wages 2015 – OECD 2015.

Best single defence of charter schools ever

Source: Presidential Proclamation — National Charter Schools Week, 2015 | whitehouse.gov.

Appeared before the Parliamentary committee on the #TPPA today

One of the cathartic things about leaving the public service is I do not have to be deferential to politicians anymore. I can treat them like ordinary people and tell them where to go when they annoy me. In consequence, I am not in any way nervous about appearing before a parliamentary committee.

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This Parliamentary committee was very unlike the last. Staying on after giving my submission was a pain rather than a learning experience.

A parade of conspiracy theories about the investor state dispute settlement process followed my testimony, which was first of the day. I left after about 45 minutes.

In my testimony, I got a standard question from David Clark, a Labour MP, about whether more time should be that given to make submissions because the complexities of the intellectual property chapter.

Kennedy Graham, the Green MP, then asked a bizarre question about how could New Zealand sign a trade agreement that would compromise environmental standards. His example was a trade agreement where it is agreed to start using coal as a power source again in New Zealand.

So weird with this question that I did not give the obvious answer which was this parade of horribles is so unlikely that it is not a serious question. What I did say was it is very unlikely New Zealand would ever sign such an agreement.

If a parade of horribles and weird hypotheticals is the best you can do, you do not have much of an argument against the TPPA.

Bring back @RusselNorman to save the planet from @NZGreens MPs carbon footprint @DBSeymour

Living the clean, green lifestyle means more than just buying carbon-offs in the same way that indulgences for sins were sold by the mediaeval Catholic Church. Russell Norman was an MP for 9 of the 12 months covered by this chart. He consistently had one of the smallest carbon footprints of a Green MP even when he was still co-leader of the Greens and not just a backbench MP.

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Source: New Zealand Parliament – Members’ expense disclosure from 1 October to 31 December 2015.

New Zealand MP travel expenses 1 October – 31 December 2015 @DBSeymour

10 of the 14 green MPs have above-average air travel expenses – have an above average carbon footprint for a member of the New Zealand Parliament. It is not easy to be Green.

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Source: New Zealand Parliament – Members’ expense disclosure from 1 October to 31 December 2015.

Implicit tax on a lone parent returning to a low-paid job in the USA, UK, Denmark, France, Germany, Canada, Australia and New Zealand

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Source: Economic Policy Reforms: Going for Growth – OECD (2016).

@NZGreens MPs travel expenses in the 3 months to 31 December 2015 @dbseymour @JordNZ

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Source: New Zealand Parliament – Members’ expense disclosure from 1 October to 31 December 2015.

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Source: New Zealand Parliament – Members’ expense disclosure from 1 October to 31 December 2015.

Landcorp dividends and capital injections, 2007 – 2015 @dbseymour @JordNZ

As cash cows go, Landcorp has had $2.25 million more in capital injections from taxpayers than it returned to them in dividends since 2007.

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Source: data released by the New Zealand Treasury under the Official Information Act.

Those $1.5 billion in assets in Landcorp do not appear to be worth a cent in net cash to the long-suffering taxpayer.

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Source: data released by the New Zealand Treasury under the Official Information Act.

Landcorp is a state-owned enterprise of the New Zealand government. Its core business is pastoral farming including dairy, sheep, beef and deer. In January 2012, Landcorp managed 137 properties carrying 1.5 million stock units on 376,156 hectares of land.

Children fully immunised at selected ages in NZ

Ratio of unemployment and single parents benefit to the New Zealand net average wage since 1970

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Source: OECD Economic Survey New Zealand 2015.

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