ACT: NZ sliding from first-world to 'a kind of big Fiji'

May 15, 2023
ACT leader David Seymour

ACT leader David Seymour says New Zealand is on a "long, slow slip" from being a "first-world nation in an island paradise" to "something more like a kind of big Fiji".

He made the comments at the launch of ACT's alternative budget document, which is called "A Time For Truth", held at the rooftop bar of a Viaduct hotel in Auckland.

Referencing a column written by Damien Grant for Stuff, Seymour said the comments weren't aimed at offending people from Fiji or those who cared about Fiji.

"But I don't think many people would want to swap Fiji's GDP for ours."

Fiji's GDP as at 2021 was US$4.3 billion, according to the World Bank. New Zealand's was almost US$250 billion.

"So many New Zealanders, and I get it every day, they tell me, they think our best days are behind us - that New Zealand is in decline.

"Labour's massive borrowing, spending and out-of-control money printing has led directly to rampant inflation, which means everything, from petrol to bread, costs an average of 20% more than it did just a few years ago."

He said it was a decision about whether New Zealand continued to decline.

"It just requires us to rediscover the right values."

He said ACT's alternative budget was "what a government with real courage and determination to make New Zealand a wealthier society would do".

ACT's alternative budget - key points

  • Changing five income tax rates to two by the end of 2025 - 17.5% up to $70,000 and 28% over that
  • A "carbon tax refund" which would return Government revenue from the Emissions Trading Scheme to individual taxpayers as a tax refund - about $186 a year by 2027.
  • A lower and middle income tax credit to offset the costs of a higher bottom income tax rate
  • Abolish the bright line test, fees-free education, Kiwisaver subsidies, the Progressive Home Ownership Scheme, the First Home Grant scheme, the Provincial Growth Fund, research and development-related Grants, Callaghan Innovation, domestic and international film subsidies, the Climate Emergency Response Fund, Energy Efficiency and Conservation Authority, the Climate Change Commission, the Clean Car Discount, and the Climate Change Chief Executives Board, the ministries for: women, pacific peoples, Māori development, ethnic communities and the Office for Crown-Māori Relations and the Human Rights Commission
  • Reverse interest deductibility changes
  • Increase the capacity of the adult prison system to incarcerate 524 more prisoners, up to a total capacity increase of 2094 by the end of 2026
  • Moving the management of young offenders to the Department of Corrections, who will be resourced to provide 200 youth justice beds
  • A "GP capitation boost" which would increase grants paid to GPs for every patient under their care by approximately 13%
  • A $250 million fund to reward and incentivise teachers' achievement, chosen by principals
  • Increasing defence spending to 2% of GDP
  • Reduce the public service "headcount" to 2017 levels
  • Increase the superannuation age to 67, by increasing at two months a year from the end of 2023. Once at 67 it would be indexed to life expectancy
  • Index main benefits and superannuation to CPI
  • Halt contributions to the NZ Super Fund and the Venture Capital Fund
  • Sell LandCorp

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