Early onset denial?

I'm starting to wonder if the National lead government has entered into a state of early onset denial. It is hard to pin New Zealand's post budget reaction on simple over reaction completely but I think I am seeing signs of more denial than anything else.

Minister for the Environment Nick Smith is said to be heading into the trenches like a soldier in Galipoli or that our battle for the environment is similar to those situations. I think that is overstating it a bit. Yes, we are in a fight to save the environment and every bit does its part, but your still overselling the battle a bit.

Both he and the PM seem to be though in a bit of a denial mode when it comes to the flow on of the impact of the ETS on every day people. The costs are going to flow down to the normal people, there is no doubt about it. I'm expecting bus fairs to increase, not only through GST but through the impact of the ETS costs. Bus fuel costs will go up, naturally it gets passed on to the end user.

You can't tell me that if costs for farmers go up that they wont want more for their product, which will mean that buyer will increase their prices, and so on down the food chain. Just look at gas or oil. If those costs go up then its inevitable that sooner or later the end user pays.

I'm not opposed from doing my part at all. I believe all of us need to be doing something to make sure that we don't make matters worse. But the thing that bugs me the most is that large scale polluters...what are they going to be doing? I think it will take years before all these trees make an impact but it is really good that we are doing something about it now.

The other side of the denial coin is the child care debate. I know very well that the fees are set by the individual centres and not the government. But that is only in relation to the level of funding that the centre receives from the government vs the cost of the services the centre gives. But those of us who use childcare services or are intimately involved in the service are looking at almost certain fee rises because of funding decreases.

This is a service that charges GST therefore the GST increase will have to be factored in. Yet another thing that chops away at the income tax reduction I get on top of others I have already blogged about. In some cases according to Stuff.co.nz some services are looking at $50 a week or so rises.

"And centres around the country are doing their sums, with the New Zealand Educational Institute (NZEI) warning that the shortfall will be passed on to parents, with some facing up to $60 extra a week.

But Education Minister Anne Tolley said those numbers were "speculation" and many centres were likely to decide against fee increases. Mr Key said tax cuts, announced in the May 20 Budget, meant middle- and low-income earners would not be worse off, even after a 2.5 per cent GST increase." There is a point there...some of it is speculation but its a sad person who cannot detect the notion of truth to the possibility that fees will likely increase to cover any shortfall under the proposed funding restructure.

"Childcare centres with more than 80 per cent qualified teachers will have their subsidy cut from $12.45 an hour to $10.88, per child. About half the country's early childhood operators will be affected." This is going to be an ever increasing problem because there is a push to have child care centres with more qualified staff. That is a good thing but in this instance it is going to cost the centres in funding, and operational short falls will then have to be covered elsewhere if centres are to maintain services, let alone anything else.

Am I regretting voting National?

NOT YET!!!