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Coalition Government and the Economy

  • Andy Loader, Poke the Bear By Andy Loader, Poke the Bear
  • May 20, 2025

Coalition Government and the Economy

The government is going to announce its budget data on Thursday and leading up to this there has been much discussion about government spending. The Prime Minister has many times stated that the biggest issue for this government is the economy and that they see this as their priority target.

One of the other problems that he has dealt with was the Treaty Principles Bill and that has been voted out by parliament.

Mr Luxon has stated that there was NOTHING he liked about the Treaty Principles Bill.  

Yet the Bill contained things such as the government having the power to govern and make laws, protect, the rights Maori had under the Treaty and that everyone was equal under the law.

I find it pretty hard to accept that the government led by Luxon can disagree with all of those and in fact find NOTHING to like about any of them.

He has talked at length about the economy and how expansion of the economy was a top priority for the government yet he is unwilling to do anything about the issues around co-governance and in fact has so far failed to enact any realistic change in legislation as he promised prior to winning the last election.

Our Prime Minister campaigned on policies for change; he promised New Zealand that if he got elected he would dump co-governance and remove ethnic requirements from legislation, but he seems to have backed away from that position, as to date he has done nothing.

He also promised to reduce the size of the public service which grew by approximately 34% between 2017 and 2023 and whilst the number of public servants has dropped slightly they still remain well above the levels prior to 2017.

There is no reason either legal or contained within the Treaty that requires a system of co-governance, yet the PM has said that he has no problem with co-governance at the local body governance level.

The coalition government has proposed reducing the overall effect from government in our economy yet all of the current issues around co-governance have had a huge effect, increasing the overall costs of the government as well as effects on the GDP.

Government in New Zealand now accounts for approximately 38% of everything our economy produces. Government debt has climbed to 45.1% of GDP according to Treasury’s latest figures, compared with just 15% in 2019. We face an operating deficit of around $17 billion and productivity - how much we produce per hour worked - continues to decline.

Government is elected to provide essential services such as - maintaining law and order, providing basic infrastructure and education. However, as government has expanded beyond the core functions and into social engineering it has increasingly diverted resources from the essential services which are vital to the economic reforms that are needed.

All of the issues around co-governance and inclusion of Te Ao Maori (which is grounded in tikanga customary values and lore and matauranga knowledge) have added significantly to the costs of both government and private businesses.

Attempts to racialise New Zealand, has provoked significant public complaint as well as raised costs across many disciplines from the requirements for professionals and trades people to exhibit knowledge of cultural beliefs before they are able to be certified as competent in their selected occupations.

There have been so many cases where licencing authorities have demanded that candidates pass a cultural awareness course before they will issue any certifications that it has almost become just an accepted situation and nobody can protest because the minute they do they are branded as racists and denied the issue of any required certification.

Government has a duty to uphold the Rule of Law and protect the democratic rights of all New Zealanders.

And yet, here we are: using race-based politics and reinvented Treaty theology to alter the democratic systems which we have always stood on.

The calls for a system of “Race Based Co-governance”; is a terrible mistake, promising disruption and the potential of race war. New Zealand has never been so divided. The challenge of the 21st century is to oppose any talk of race based governance; support that “now we are one” and to move from division to unity with all persons being equal under the democratic system of one person one vote irrespective of colour creed or gender.

The issue of co-governance has two effects on the economy with the first being the direct costs involved (in managing the issue for government, private business and all New Zealand citizens affected) and the impacts on our population with many leaving the country as a result of being unable to gain or renew qualifications without having to pass “cultural awareness courses”.

Prime Minister Christopher Luxon has made economic expansion his Government’s top priority yet he and his government are failing to address one of the issues that is having a huge effect on the overall economy and costs of living.

While the idea of making economic expansion is good the failure to deal with the separatism, endemic in the co-governance debate, will be the issue which may well cost them the reins of power at the next election.

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