Grey Power March 2017

NZ GREYPOWER MAGAZINE » MARCH 2017 29
From page 27
rapid decision making and implementation
with the capitalist financial structure
providing the necessary incentives and efficiency.
But where is the communist dream of
‘each for all and all for each’ and the people’s
dream of freedom of thought, speech
and actions?
However, capitalism itself also has its
inbuilt weaknesses; being open to manipulation
by speculators; being subject
to regular periods of boom and bust, the
latter particularly stressful with often prolonged
periods of increased poverty; and
being a vehicle to create wealth in abundance
- but at the expense of also creating
impoverishment for those not creative in
wealth making.
Over time this dichotomy has become
more pronounced with the vast bulk of
the world’s wealth now concentrated in
the hands of a very small percentage of
the people, with the divide between them
and the remainder rapidly increasing.
This splintering effect has been exacerbated
by globalisation whereby the average
wage-earner and taxpayer has had to
stand helplessly by as the huge conglomerates
amass more of the world’s wealth
while at the same time paying only minimal
tax. The reality is that it simply filters
further up making the rich even richer.
It is pertinent to ask why no system exists
to channel a huge proportion of the
vast wealth we have all created into the
public purse, then use it to pay a workforce
that could make all our lives more
worthwhile and more comfortable.
If democratic capitalism is to survive in
the long term there will need to be drastic
measures put into place.
Is it really beyond the wit of the movers
and shakers to change the rules – even if
only to ensure their own survival?
For instance just a few possibilities
for reform:-
* A decree that no one in a company
or institution can earn more than 20
times the lowest paid worker.
* Golden handshakes made illegal.
* Bonus payments permitted only if paid
equally to all workers.
* Where share option schemes are offered
they must be made available
for the whole workforce on the same
terms.
* Where some of the profit is made available
for distribution, 10 percent must
be paid equally to the whole workforce,
90 percent to the shareholders.
* Multinationals be legally obliged to pay
tax both in their country of origin and
operation.
* A new simple tax system ensuring
that everybody pays a realistic tax, at
source, without contrived deductions
and before being routed into trusts.
* All payments of more than $1mill.pa.
to be taxed at 90 percent.
“Insane!” Will be the cry.
I’m genuinely puzzled why minds
much sharper than mine haven’t realised
that time is of the essence and devised
foolproof methods of ensuring that ‘trickle
down’ becomes a waterfall in order to
bring some sense of justice into a system
that has become corrupt by being geared
to make those with specific aptitudes become
richer at the expense of those that
don’t have the Midas touch.
Is it not time that society valued the
worth of the man or woman who cleans
the toilets as highly as a Board member?
Unless we do learn that lesson then democracy
and capitalism will end in turmoil;
an avoidable tragedy. The future
scenario will inevitably be either that it
will change, be forced to change, or suffer
catastrophic, revolutionary change. A
stark but realistic choice.
Gerald Rodway
Inaccuracy
I would like to correct an inaccuracy in
the President’s Report from your last issue.
The Legalise Cannabis Party was never
involved in the campaign by the Otematea
GP branch surrounding Medicinal Cannabis.
That campaign was entirely a grassroots
initiative motivated purely by the
intelligence and strength of conviction of
GP members!
After we learned about this campaign
through the media, we intended to reach
out to the Otematea branch to thank them
for speaking out on this important issue.
Unfortunately before we could do this, I
received an unsolicited phone call from
your president, Tom O’Connor, during
which he proceeded to berate me for unduly
influencing his poor “feeble membership
that are easily taken in” (his words).
I had to inform him that we had never
been in touch with any GP members, and
that the members researching an issue
and passing a resolution is in fact the normal
democratic functioning of an incorporated
society in New Zealand, whether he
likes the content of the resolution or not.
It is not the place of the president to
censor or influence the content of resolutions
so as to be politically acceptable to
him.
Abe Gray, president
The Aotearoa Legalise Cannabis Party
It is the role of the president to keep outside
groups from intruding in Grey Power
initiatives. We have succeeded in improving
access to medical cannabis but kept
away from recreational use. I will take such
action again of required.
Tom O’Connor
President
Double-dipping concerns
With regard to Section 70 deductions
for overseas pensions, I understand your
concern about double-dipping and claiming
pensions from more than one country.
However Section 70 is also used to
capture contributory schemes based on
employee and employer contributions,
when this is part of a universal welfare
scheme. Many countries have a basic
pension, equivalent to New Zealand Super,
with extra payments based on contributions
made while working.
This is equivalent to New Zealand
Government Super, a private investment
scheme for former state employees. This
does not affect New Zealand Superannuatants
(except couples with a non-qualified
spouse).
Because some overseas systems are
administered by the same pension department,
all payments, both contributory
and those from general taxation
are treated under Section 70 as part of a
welfare system covering any of the contingencies
for which benefits pensions or
allowances are paid in New Zealand.
Other countries have more restricted
eligibility, so only those who worked for
the government are eligible for a pension.
This can lead to a contradiction, where
a former housewife is not eligible for a
pension from another country because
she was not a wage earner, while her New
Zealand Super is reduced for the pension
her husband receives because he was
working. Our interpretation is that if the
pension is only available to wage earners,
then it is not the same as New Zealand
Super and should not be covered by Section
70.
Noel Ellis
Shrinking pension
Is there anybody out there who, like
me, receives an overseas pension paid
annually, in arrears, as the amount is too
small to be sent monthly, because it is not
enough to cover the transaction fee to get
the money into NZ?
And is your NZ superannuation reduced
fortnightly, because at some later
stage within the next 12 months you are
going to receive your overseas pension?
So you always get paid less than other
superannuitants, even though you cost
the country less overall, because your superannuation
is reduced by receipt of the
overseas pension.
And although you have come to a written
agreement that you would advise each
year on receipt of your overseas pension,
and MSD would bill you, this is ignored
and MSD start to deduct your NZ Superannuation
with no discussion or permission?
And do you find that MSD staff do not
understand the process, nor the legislation
(which allows for deduction where a
person is entitled to receive or receives an
overseas pension) ?
And finally, no help available, including
Grey Power, and (so far) politicians
If so, please contact me to discus
Caryl Blomkvist
blomkvist@vodafone.co.nz
Let’s agree
On the National Superannuation Sustainability
debate let us agree with John
Gascoigne, that under current NZ prosperity
prospects, a certain rate of universal
NZ Super under certain conditions will remain
affordable and sustainable.
Let us also agree with him in the spirit
of his article “There is a better way” in the
November magazine.
But, according to his own criteria – his
vision of the NZ economy in 2050 is not
based on hard, irrefutable data, but only
on the assumption and assurance, that
“savings were mobilised and channelled
into a massive expansion of the productive
sector” without any practical policy proposal
based on irrefutable data about how
that is to be achieved at a higher rate than
what we have at present.
Our current national income growth
rate only matches population growth,
with just a fraction (0.1%?) of it due to increased
wealth and productivity per head
of population.
A population of 5 million in NZ by 2050
is speculative. Employment of labour requires
capital, and when full employment
has been achieved, only more saving and
capital investment per worker can increase
productivity and wealth reserves.
Both John G. and the Retirement Commission
(“for fiscal capability”?) have not
mentioned the NZ Super Fund in helping
to keep sustainable our universal NZ Super
and its entitlement age at 65 for our
still increasing proportion of longer living
superannuitants after the baby boomer
bulge, so far.
What doubts can there be, that systematic
national retirement wealth creation
and ownership through the NZ Super
Fund is a most stable and reliable kind of
“economic growth engine”, and that therefore
debate or discussion on the “pros and
cons” of a permanent contributions rate
into a permanent NZ Super Fund built
into our taxation system should not be
suppressed or evaded?
Jens Meder, Auckland.
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