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Economic Policy (Full)

New Conservative would prioritise the following economic policies:

  • Support economic growth via $10 billion in tax cuts, which includes an income tax-free threshold of $20,000, removing tax-on-tax, and reducing petrol taxes.

  • Boost business productivity by cutting red tape and developing primary industries such as drilling and mining.

  • Provide relief for farmers and others affected by the Emission Trading Scheme and Zero Carbon Bill by repealing both and abandoning the Paris Accords.

  • Implement Net Zero Immigration while we increase our housing stock.

  • Focus on swift recovery from the COVID-19 crisis.

 

New Conservative recognises the vital importance of a productive and resilient economy. To further that end, we will encourage New Zealand's world renowned entrepreneurial spirit and boost small businesses by cutting job-killing regulations. We will address bureaucratic waste and excessive government spending that is robbing the nation of greater prosperity. We will pursue economic nationalism to ensure we are more resistant to global shocks.

 

A sustainable building industry must be established to not only meet the housing crisis, but also ongoing development of our housing and building infrastructure. A balance must be struck between the important economic benefit that immigration brings and the welfare of those who already call New Zealand home.

 

Our country continues to import and use significant quantities of oil, gas, and minerals. New Conservative will practice proper stewardship (kaitiakitanga) of our treasures (taonga) by opening up the drilling and mining sectors to ensure that we achieve energy independence and meet the energy demands of the future.

 

New Conservative will overhaul the income tax system by replacing the bottom bracket with a $20,000 tax-free threshold.

 

New Conservative is committed to the following principles of economic governance:

  • Economic growth must come from a broad base of sectors, which is ultimately the source for pulling people out of poverty.

  • Government must run a balanced budget, pay down debt, and save for the future.

  • Families must be allowed to retain more of their incomes to provide for themselves and each generation should pay its own way.

  • Welfare support must never entrap people in benefit dependency.

COVID-19 Recovery

Due to the unique economic damage caused by COVID-19 and the government's response to it, New Conservative would like to highlight elements of our economic policy that will aid businesses and families to recover quickly from the economic fallout.

 

  • Income tax cuts will put up to $10 billion of stimulus into the pockets of New Zealand families.

  • Businesses will benefit from less red tape, a minimum wage freeze, and customers having more cash to spend.

  • Farmers will have less overhead due to the cutting of emissions targets, red tape, and wasteful regulations.

  • Cut spending by government departments through reducing waste and incentivising efficiencies. Less government control in areas such as education should allow for more to be spent on frontline staff.

  • Infrastructure spending focused on housing projects, as these provide more employment.

  • New Conservative is opposed to the use of quantitative easing and would work to reduce the accumulation of Crown debt.

  • ACC will no longer be available for visitors on short-term visas, who will be required to verify travel insurance when applying for their NZeTA or their temporary visa.

  • New Zealand has lost a major revenue source through the halt on tourism. We must retain the billions of dollars we have borrowed during the COVID-19 lockdown in New Zealand by doing the following: supporting New Zealand businesses before sourcing offshore, stopping the sale of land, businesses, and assets offshore, creating value-added exports, and taxing imports that are non-essential or have high waste value.

  • A moratorium on the offshore sale of state assets and New Zealand companies must be introduced to halt a fire-sale of income generating assets for quick financial relief.

Growth & Productivity

The economy will need stimulation as the incoming government will inherit an economy in recession. New Conservative will implement a tax-free threshold for income, reduce fuel taxes, and give relief to small businesses by halting scheduled minimum wage increases. These policies will also greatly benefit young people just entering the workforce and decrease inequality among low-wage earners by lowering taxes.

 

In the face of global supply shocks, New Zealand needs to bolster its ability to be self-sufficient in producing core goods, services, and local supply chains. We will focus economic activity on production and bringing more manufacturing back by making it easier to produce high value products locally. 

 

Government departments will be encouraged to source products produced and manufactured in New Zealand where possible even if marginally more expensive.

 

Entrepreneurial endeavours should be encouraged and supported where appropriate through R&D, via start-up and innovation grants, such as those managed by the Callaghan Innovation Fund.

 

To encourage all New Zealand businesses to hire more staff and increase employment, New Conservative will allow employers to release an underperforming employee after a non-corrected performance review. This review must be conducted in good faith and not in an abusive manner. Under such circumstances an employee would be released with a standard 2 weeks notice and 2 weeks extra payout, which may be reduced if it is due to serious misconduct. This will support small business owners with business growth, while protecting employees. 

 

New Zealand businesses and farmers are overburdened with complex regulations. New Conservative will hold a full review of the regulatory books to simplify and modernise rules, while removing those that provide no benefit to Health & Safety.

 

New Conservative recognises that SMEs cannot support the same managerial staff as large businesses, so Health & Safety and other regulatory requirements must be tailored to the sector accordingly and require less paperwork and cost.

 

New Conservative’s focus will be on streamlining existing regulations and ensuring they make sense and are appropriately enforced. New Conservative will support reforms of the Resource Management Act and Significant Natural Areas with a focus on private property rights.

 

These policies will give New Zealand a much needed productivity advantage and stimulate economic growth.

Immigration

Immigration is central to many parts of New Zealand’s culture, economy, and future prospects. New Conservative believes that there is a balance to be struck between the important benefits that immigration brings and the wellbeing of those who already call New Zealand home.

New Conservative believes that those who choose to immigrate should embrace New Zealand's culture and work hard to assimilate into their new communities. We will ensure there is no acceptance or allowance of Sharia Law, or any other jurisdictional authority, that contravenes New Zealand’s heritage and constitution

New Conservative will implement a “Net Zero Immigration” policy. This would be for a period determined by the time taken to ease housing demand, which could be as little as 12 months, with student visas and seasonal workers excluded. Long-term immigration policy must be based on which occupations will be available and necessary in the future.

New Zealand should welcome those who can invest in us and stay here long-term, so that we can integrate them fully into our communities. New Zealand's reliance on temporary work visas is bad for productivity, local business, and community building. Reducing our reliance on those visas will take the pressure off our housing market, provide long-term economic investment in stable local workforces, and lead to higher productivity and thus higher wages.

New Conservative will work with NZ-based NGOs operating in troubled zones to identify refugees who are more closely aligned with our nation’s values, and fill our refugee quota with these people, rather than accepting the United Nations allotment. Examples of such refugees are persecuted Christians, pro-democracy Hong Kong political refugees, and South African farmers being forced off their land, many of whom share a common heritage with us.

 

New Conservative will rescind New Zealand’s commitment to the UN Global Compact for Migration.

Housing

New Conservative recognises that housing availability, affordability, and quality all need to be addressed on multiple fronts.

 

There is no simple solution to this critical area and we need a number of initiatives. Our primary focus is on these 5 key areas.

 

Supply Management: We will address the shortfall in housing supply on various fronts including:

  • Resource Management Act and local government reform

  • bringing more unproductive land to the market

  • time-frames for undeveloped land to prevent pure land-banking

  • improved and sustainable regional growth

  • pre-consented plans

  • review of taxation levers

 

Demand Management: We will find innovative ways to manage the demand on housing, such as initiatives to help New Zealand families into their own homes. New Conservative would look at the use of levers like tax incentives, Kiwisaver changes, rent-then-buy schemes, shared equity models, reducing immigration, and moving government departments to regional areas. We would introduce Stamp Duty on property purchases by non-citizens, and on the third and any subsequent purchases by local investors.

Cost Factors: Cost is creating one of the single biggest hurdles to home ownership. New Conservative will seek to change regulations to allow more pre-fabrication. We will also encourage and develop greater efficiency in property markets, and remove unnecessary regulation and compliance costs, particularly in residential housing. To enable housing suppliers to gear up and build more houses for any government-initiated building programme, the government would have to provide surety of demand. 

Skill Shortfalls: We will introduce trade training at Year 9 to give young people the opportunity to choose a trade as a career path during their education. They will be qualified sooner and it will help keep them in the education system. There needs to be a defined focus on encouraging the trades as a positive career choice with good financial outcomes.

Building Regulation: Many areas can be addressed here such as:

  • better standards regulation

  • more use of public/private partnerships

  • allowing materials certified in western developed nations to be used without additional certification

  • using building methods that are time-proven and reduce maintenance moving forward

  • streamlining the codemark process to allow greater competition

 

All residential construction will require a minimum 10-year guarantee. This will incentivise insurers to weed out poor builders and give homeowners peace of mind. Insured builders and designers should be allowed to self-approve some work.

Lower Taxes

New Conservative will reform tax policy so that more families are able to be self-sufficient without the need for handouts. Income tax acts as a deterrent to work and the average working family should be freed from paying an excessive portion of their earnings in taxes. As we face uncertainty in the global market, it will be more important than ever to provide stimulation to the local economy and productivity via tax cuts.

 

New Conservative will replace the current 10.5% bracket with a $20,000 tax-free threshold. The rest of the tax rates will remain the same, but with each applied at a higher threshold. The $48,000 bracket will be raised to $60,000 and the $70,000 bracket will be raised to $100,000. The new structure will be as follows:

 

  • First $20,000 will be tax-free.

  • Next $40,000 (up to $60,000) will be taxed at 17.5%.

  • Next $40,000 (up to $100,000) will be taxed at 30%.

  • Income over $100,000 will be taxed at 33%.

 

New Conservative will index brackets to inflation after the dust settles on the new levels, so that families are not penalised by inflation and bracket creep. New Conservative also has a family policy that will allow parents to split their combined income for tax purposes.

 

New Conservative will end the tax-on-tax effect that GST has. You should not be paying GST on fees, rates, and excises imposed by the government.

 

New Conservative will repeal the regional fuel tax and roll back petrol tax and road-user charge increases added by the outgoing government. Electric vehicles will be required to pay road user charges and those payments must be up-to-date before a WOF is issued. Consultation with the logistics and automobile industry will be undertaken to see if road user charges could replace the petrol levy to create one unified system for all vehicles, with all revenue earmarked for road infrastructure spending. This would also make fuel purchased for motor boats and other motorised recreational activities free of road tax. 

 

New Conservative will instruct the Treasury to explore the opportunity for an Every Transaction Tax (ETT) to be a replacement for GST. This would not be an additional tax, but it might capture trading that currently avoids taxation. New Conservative will also investigate transfer pricing so that multinational corporations pay more of their fair share in corporate taxes.

 

Summary for working families:

  • Your household will be paying at least $2,500 - $5,000 less in income tax every year.

  • You will no longer have to pay tax-on-tax when applying for a drivers licence, paying rates, or filling up at the pump.

Energy Independence

New Zealand is rich in natural resources, and yet we import so much from overseas. New Conservative would reverse the ban on drilling and pursue the exploration of our oil, gas, and coal assets. Our coal resources are also exceptionally clean, so by selling it to the countries that still heavily rely on coal we will improve the global environment and reduce pollution.

 

New Zealand must work towards energy independence in fuel production to ensure we are self-sufficient and a net-exporter. This will require more refineries, factories, and mines that will all create jobs and enrich the nation.

 

New Zealand needs more electricity generation capacity if we are to take advantage of innovations that will lead to the wide adoption of electric vehicles. Electricity production struggles to keep up with demand during droughts and power prices keep going up while dam projects are cancelled.

 

All sources of energy, from oil and gas to renewables, need to be considered to ensure that our grid is ready for the future, resilient, and affordable.

 

New Zealand needs to take back control of its waste handling and recycling, including allowing waste-to-energy in our largest cities.

Primary Industries

The health of New Zealand’s economy is dependent on the rural farming community. As a nation, we have a strong rural backbone and government policy must encourage its growth, continual improvement, and innovation. Conservation of the environment and sustainable practices are necessary for long-term profitability. New Zealand farmers are world leaders in the use of technology in farming, and encouraging forward-thinking farming practices will help build more prosperous rural communities. New Conservative recognises the importance of horticulture, viticulture, forestry, fishery, and mining as industries vital to our economic prosperity.

 

New Conservative believes that developing agriculture and aquaculture intellectual property in New Zealand and protecting it well, is the key to improving outcomes in these key primary sectors.

 

New Conservative will repeal the Emissions Trading Scheme that drains billions out of our economy for no environmental gain.

 

New Conservative will protect productive farmland from urbanisation and reform the Resource Management Act to make infrastructure investment easier, while green spaces are maintained. Compliance costs and overheads for freshwater and waterway management will be reduced. Further changes to the Resource Management Act should include moving away from criminal charges, unless systemic reoffending occurs, and ensuring fines for environmental breaches are directed straight toward repairing and preventing further damage.

 

New Conservative opposes the ongoing policy of converting productive farmland to pine forests.

 

New Conservative would introduce larger fines for biosecurity breaches to more adequately reflect the risks posed to our primary sector. These funds would be committed to resourcing border security teams.

Smaller Government

New Conservative holds the view that the role of government is to maintain order and justice in the land while defending the freedoms and economic prosperity of the people. Future families must not be burdened with debt accumulated by current politicians. This requires reductions in the government budget and the sizes of government departments, in addition to cutting red tape and taxes as highlighted in our other policy statements.

 

New Conservative is committed to running a balanced budget and will not borrow from overseas to implement any of our policies. New Conservative will put any promises on hold, if needed, until the economy is in better shape. There will also be many reductions in social costs from our other policies and greater economic activity will increase the government's tax take in time.

 

New Conservative has identified a number of areas of government spending where billions in annual savings can be found, some of these are:

  • Foreign aid, saving $0.7 billion.

  • Super Fund contributions, saving $1.5 billion.

  • Fees-free university, saving $0.4 billion.

  • Provincial Growth Fund, saving $1 billion.

 

The $3.1 billion per annum lost offshore due to the Emissions Trading Scheme will now remain in New Zealand.

 

New Conservative will also review retirement and travel perks for current and former MPs, reduce the number of MPs in parliament and make staffing reductions, all with the aim of reducing costs. Public sector accountability and performance indicators for bureaucrats will be introduced to ensure that their pay does not outpace the private sector. These reviews will allow non-performing areas of government to be identified. A system of bonuses for public servants who find cost reductions and efficiencies will be introduced.

 

New Conservative will require the Treasury to recommend other appropriate savings and cuts of non-essential spending to ensure that all our policies always lead to an overall reduction in the size of the government.

Superannuation Policy

New Conservative will change the way that Superannuation is funded. Currently, young generations pay for the retirement of past generations and this is an unfair redistribution of wealth.

 

KiwiSaver

KiwiSaver contributions will no longer be taxed as personal income. A one-time levy will instead be added to withdrawals, with the proceeds of the levy going into the Super Fund. The levy would start at 0.25% and increase over 40 years to 10% to avoid penalising those who have already paid tax on contributions. This changes the point at which tax is collected and ensures it is used to fund Superannuation for the generation that pays the tax.

 

New Conservative will also change the eligibility for the current KiwiSaver yearly top-up to a minimum savings guarantee, so that only those who earn under a set threshold will receive a much needed boost to their savings. This change will reduce inequality and ensure our elderly are better provided for in retirement regardless of the type of job they worked.

 

Age Eligibility

New Conservative would slowly raise the eligibility age of Superannuation in one year increments per decade, increasing to 66 in 2030 and 70 by 2070. This means that those entering the workforce now will receive it at 70, but those near retirement will not face any changes.

 

KiwiSaver will be changed to allow partial access from age 60, so that those who work physically demanding jobs can still plan to retire earlier.

 

Eligibility of Immigrants and Returning New Zealanders 

New Conservative will extend the qualifying time for immigrants to receive the pension from the current 10 years to 25 years residence, with a graduated payment system commencing after 10 years starting at 50% of full pension, increasing to 100% after 25 years. Citizens returning home for retirement will qualify for full pension after completing a total of 25 years of living in New Zealand including childhood, with a graduated payment like immigrants for those domiciled for less than 25 years.

 

For those who have been living here for less than 10 years and are expecting full pension under the current system after 10 years, there will be delayed implementation for five years. Therefore, anyone who has been in New Zealand for more than five years from the date of this change will not be affected by it, but those living here for less than five years will be subject fully to the changes.

 

New Conservative will remove Sections 187 - 191 Social Security Act 2018 (formerly Section 70, Social Security Act 1964). Those coming or returning to New Zealand for retirement will retain the full amount of any overseas pension payments, plus New Zealand pension payments as and when they qualify as above.

 

There will be no compensation for those who have been previously affected by sections 70 or 187 - 191 of the Social Security Act, but they will join the graduated system of payment from the time of the law change as per their years of residence.

 

Equal Payments for All

New Conservative will aim to remove the penalty currently existing on Superannuation payments for married couples.

 

New Conservative has proposed changes to income tax and levies that will see pensioners with a much lower effective tax rate and therefore higher pension income.

 

Summary:

  • No tax on KiwiSaver contributions, with a new levy that is paid on withdrawals.

  • KiwiSaver top-up will only be paid to low-income earners.

  • Slowly raise the age of Super by one year every decade starting in 2030, while allowing access to KiwiSaver at 60.

  • Increase the eligibility period for immigrants to receive Super.

  • Lower taxes will give pensioners a higher standard of living.

© New Conservative

  Authorised by Kevin Stitt, 35 Lenore Rd, Mangere

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