Costly government

I wrote yesterday about our heartless, penny-pinching government, which emphasises Getting To Surplus at all costs even if that means kids dying in cold state houses.

This is the true irony of National governments. Their entire platform is one of “fiscal responsibility” and “good economic management” yet time and time again they spend money the way I did when I was a teenager: false economies and short-term wish fulfilment which meant at the end of the week I was calling home collect and begging for rides which cost our household a lot more than if I’d just made sure I had enough money for the bus.

Fifteen-year-old-me was pretty stellar at externalising the losses, but I don’t think anyone, especially my parents or me, would relish the idea of her running the country.

National are, on the surface, all about cracking down on unnecessary spending and bureaucratic bloat, delivering value for money, getting proper returns on investment.

And yet, they don’t save us money.

A 2013 report of the National Health Committee on respiratory diseases puts the cost of lower respiratory tract infections like pneumonia at:

The average length of stay was about 3.5 days and the average price per hospitalised individual was $4,700.

According to the coroner’s report, Emma-Lita Bourne was admitted to hospital on 6 August and died on 8 August. Three days; and probably higher than average costs given the complications she suffered.

Making sure her family could afford to heat their home and throw some carpet on the floor wouldn’t have cost $5,000 – and could not only have saved her life in 2014 but prevented any number of future illnesses for her and her siblings.

A 2014 report from UNICEF states:

Every year, taxpayers face a bill of $6-8 billion for additional health needs, remedial education and reduced productivity that result from 260,000 children living in poverty.  This cost is largely due to the fact that children most likely to be in poverty are very young, when the most important physical, mental and social development is occurring.  Furthermore, a large group of children live in poverty for a long time – 7 years – and about ten per cent of Kiwi Kids live in severe poverty.

Six to eight billion. What was the estimated cost of Hone Harawira’s Feed the Kids bill again? $100 million. Estimated cost of Sue Moroney’s extension to paid parental leave? $276 million over three years. Drops in a bucket.

The Greens-initiated housing insulation policy had, as of May 2012, cost $347 million and returned estimated benefits – in reduced healthcare costs – of $1.68 billion. That’s some good fiscal management right there.

And as the fabulous Dr Liz Craig put it a couple of years ago:

… a housing warrant of fitness could improve the condition of rental properties, and although it could increase rents, at the moment all taxpayers are covering the costs of substandard housing through the health system and it’s a conversation the country needs to have.

Emphasis mine.

It’s almost like the radical notion that prevention is better than cure stacks up – ethically and financially. Maybe not on a single year’s balance sheet; but when we’re talking about caring for people from cradle to grave, a single year’s balance sheet is irrelevant.

So if National were truly interested in efficiencies and return on investment – instead of just using those buzzwords to sell their latest erosion of the public service – every state house would be warm and dry. Every kid would get breakfast and lunch. Every parent could give their kids the best start in life with mum or dad at home for those crucial early months.

Sometimes people on the left object to putting things in monetary terms – when the Public Service Association put the cost of domestic violence to business in numbers ($368 million a year) there was criticism: surely we’re motivated to stop domestic violence because it’s a bad thing which should never happen to anyone!

They’re right. They’re also wrong. This is a heartless government. They don’t do things “just because” it’s the right thing to do. Their focus is always on the money: they balance the books, they do the practical stuff, not the wasteful airy-fairy lefty stuff.

So we must, and can, argue this on both fronts. Of course every Kiwi kid should get breakfast and lunch because food is a fundamental part of being healthy and happy. But it’s also not just feelgood. It saves a huge amount of money in the long run, in education, in healthcare, in law enforcement.

It doesn’t mean we accept the frame that everything is about money. We just show very clearly how doing the right thing morally also means doing the right thing financially. The National Party isn’t selling our soul to save dollars; it’s selling our soul and costing us money at the same time.

That can’t be anyone’s definition of “good government.”

Political donations and conflicts of interest

Danyl has some thought-provoking comments about the Herald’s analysis of electoral donations:

MPs and other political insiders get really upset if you suggest to them that this is all basically political corruption. Partly this is down to their massive egos. MPs don’t think it’s strange that corporations just give them huge sums of money. Are they not extraordinary individuals? Have they not been chosen by destiny to lead the nation? Related to that is cognitive dissonance. The system around political donations might look totally corrupt, but MPs all know that they personally are not corrupt – how dare anyone suggest that? – so Tallys must just be giving free money to the MPs that happen to sit on the Select Committee that oversees and regulates their industry because they personally believe in those individual MPs.

A lot of it looks pretty dodgy, especially National’s apparent funnelling of larger anonymous donations through party HQ, and the Talleys’ enthusiastic support of people making the laws which affect the Talleys’ business.

But it also led me to reflect on some of the criticisms – from the left and right alike – of Andrew Little and Carmel Sepuloni’s decision that she give up the social development portfolio temporarily while her mother faces charges of benefit fraud.

The same kind of arguments that Danyl outlines were in play – everyone knows Sepuloni is a person of integrity! How can she be held responsible for the actions of her mother? No one would dare accuse her of impropriety!

This is on the one hand rubbish – just look (or don’t!) at how furiously Cameron Slater, of all people, defended Sepuloni, with the exact same arguments. Wouldn’t you know it, just a few days later we got a well-timed story about Sepuloni asking the Minister questions about benefit fraud. Slater’s fury probably has a lot less to do with Due And Fair Process and a lot more to do with whatever additional attack lines he had queued up.

And on the other hand, it’s rubbish again, because that’s not how conflicts of interest work. People in positions of influence don’t get to walk around saying “I’m making decisions about something I have a personal stake in, but I’m a good person so it’s not a problem!” or “But I haven’t done anything corrupt yet so I can’t have a conflict of interest!”

It’s all there in the name: when your interests are in conflict, you have a problem. And the unfortunate reality of our society is that people are judged by what their family members do – otherwise stories about Hone Harawira’s nephew’s conviction or John Key’s daughter’s art would never get the headlines they get. And those aren’t issues where you can make any kind of case that the famous person “involved” has done anything dodgy.

But it does look dodgy as hell when Talleys are pouring money into the primary production select committee. It does look dodgy as hell when Amy Adams as Minister for the Environment is overseeing freshwater management changes which just happen to massively increase the value of her land, or Gerry Brownlee denies there’s a problem with rental prices soaring in Christchurch, where he happens to own four properties.

And it would have been child’s play for the right to make it look dodgy as hell for Sepuloni to stay on as social development spokesperson. They already had the ratf*cking machine up and running and ready to go.

We can’t give our people a free pass just because they’re our people and we know they’d never do anything wrong. And the good ones who have integrity – like Carmel Sepuloni – don’t expect us to.

It’s a temporary situation for Sepuloni, and she’s continuing to do damn fine work in the meantime. The issue of political donations – and how much our political system is influenced by the people with the most money to spare – is going to be far more difficult to change.

The Nation’s leaders’ debate

This morning in New Zealand politics can best be summed up with one fantastic image.

Image swiped and cropped from @petergraczer
TALK TO THE HAND, COLIN.

I dragged myself out of bed at the ungodly hour of 9am to tune in to the first leaders’ debate of the election season – and it’s mostly Colin Craig’s fault. Had he not taken legal action to force the producers to give him a speaking slot I might honestly have missed that it was even on!

For that, and for trying to talk over Metiria Turei, resulting in the photo above, you have my grudging thanks, Colin.

In the true spirit of 21st century pseudo-journalism, here are my thoughts (and some others’) as they were tweeted in real time.

(Sale to overseas buyers, obviously.)

(It’s a great line, but also a deliberately-engineered political meme.)

(Full credit to @petergraczer for the fantastic pic of Metiria’s take-no-crap attitude.)