Of referendums and Political Party ads

Received in the post this week: my address check and information for the upcoming election and referendum on 26th November. The questions on the voting system are as follows:

1) The first is whether you think New Zealand should keep MMP (the current system) or change to another voting system.

2) The second question asks which of the 4 other voting systems you would choose if New Zealand decides to change from MMP: first past the post, preferential voting, single transferable vote, or supplementary member. You can read more about them at www.elections.co.nz

My answer on the first question will be simple. I've not been overjoyed to see how the NZ MMP system has worked to date. (A brief precis- there are currently 120 members- 70 come from electorate districts and 50 from the list. We all get 2 votes- one for a local candidate and also a party vote. The party vote is used to determine the total portion of members a party will get in the house- more or less. To get a member either an electorate must be won, or a minimum of 5% support must be obtained.) This pretty much guarantees coalition governments are the norm. Voters are not quite sure who will coalesce with who- and what the government will look like. I support a system which allows the voters to know what they will get should the party they vote for come into power- and also which will allow the government the mandate to govern and take decisive action in the manner that was supported by many voters.

The answer to the second is more difficult- I'll need to do more homework.


This week I also received a brochure from the Labour party in the post box. The front shows a basket of groceries and says "Prices are rising faster than wages, a 20% increase in just 8 months". On the back it has Labour's plan- which is to take GST off fresh fruit and veges, to make the first $100 of income tax free, to have a tax system where everyone pays their fair share of tax, and to keep kiwi assets like power companies and help keep power prices under control. They've contrasted their view of National's policy- to sell assets, borrow for tax cuts, put the GST up, and cut kiwisaver.

This is one of the most interesting brochures I've seen in a very long time- certainly during in my time in NZ. Almost every single item could be discussed in great detail. Re: the GST on veg & fruits comment: the price of fruit and vege in NZ varies dramatically based on seasonality. I pay a fortune for tomatoes year round because I want to keep eating them- the grocery stores aren't afraid to shoot their prices up in winter and people like me continue to pay. We had a recent GST rise from 12.5% to 15%. I see I am purchasing my peppers for $1.99 each now. I can't recall that they were a fraction less prior to the GST rise. It appears to me the grocery store set their prices. Labour seems of the view that grocery prices are set in stone and will not be impacted by government action. They seem to believe in good faith the grocery stores will not take the 15% cut into their own pockets. I'm more skeptical. I can not support this policy to reduce government revenues without any guaranteed benefit to consumers. On the second front, New Zealand currently has a wonderfully simple GST system to administer compared to other countries like Canada and Australia as GST is applied to a broad base of transactions without the exceptions other systems use that make tax accountants lots of money but which cause the general business owner confusion . Labour clearly supports increased administration. I could not support this policy- whether it is a money maker for accountants, or not.

That's just a comment on one of their comments. I'd love to hear yours...
Let me know what you think on the MMP issue, as well.