Two years ago, Bill English brandished data showing a widening of the gap in after-tax income between Aust and NZ since Labour had taken power in 1999. The gap in average after-tax wages had reached 34% by 2007. The disparity began about 1984, widened substantially between 1991 and 1999 (during National’s term in office) but widened further in subsequent years. Average Aust after-tax income in NZ dollars in 2007 was $46,000; here it was $34,000. In Parliament the other day English expressed his surprise real after-tax average earnings in NZ had increased 8.7% since September 2008 - a significant improvement on the 3% total growth over the previous nine years. He attributed this to two rounds of income tax cuts and lower inflation.

Pick Your Numbers. Those data were based on average weekly ordinary time earnings (per FTE) from Statistics NZ’s Quarterly Employment Survey, the official series used to calculate the wage floor for NZ Superannuation. He dined out on the numbers for a day or two, explaining how they had been adjusted (not by the official statisticians) to give what he said was a true picture of changes in our spending power. Across-the-board personal income tax cuts on 1 October would further increase after-tax earnings: the average household will be about $25 a week better off, and the average wage earner about $15 a week better off, even after the increase in GST. But English conceded it would not be easy to maintain this kind of progress, - further increases in after-tax income must come from enhanced productivity, better export performance and a rebalancing of resources into the private sector.

Other Measures More Real. Labour MPs were slow to challenge the figures. Their immediate counter was to remind us about the Key Govt cutting contributions to the Superannuation Fund, cutting KiwiSaver, axing the R&D tax credit, axing the $700m Fast Forward innovation fund - and so on. A post on the Red Alert blog, however, explained weaknesses in using FTEs and came up with different measures. Counting all workers and all hours and using real tax rates, the increase was 0.5%, and when total wages were divided by the working age population, wages grew just 0.5% (all of it taking place in the last quarter of 2008). No matter. However we work the numbers, we have a helluva long way to go to close the trans-Tasman gap.

John Key says law and order policy is a crucial part of his overall vision for NZ, “because I believe Kiwis have a right to feel safer.” Addressing the Sensible Sentencing Trust Conference this week, he cited what he sees as the Govt’s achievements - it has strengthened bail laws, reversing Labour’s “dangerous mistake,” toughened sentences for crimes against children, given the Police the power to collect DNA from people they intend to charge with particular offences, closed loopholes for child sex offenders, and given police stronger powers to seize the profits of organised crime (estimated worth of restrained property so far under that move is more than $20m). The Police now have the power to issue on-the-spot safety orders for victims of domestic violence (from July 1 to August 8, 355 of these orders had been issued). For victims of crime, a $50 levy at sentencing for convicted offenders could generate $13.6m in its first 4 years.

Justice Minister Simon Power told the conference he plans to amend the Victims Rights Act, taking into account submissions on concerns such as the censorship of victim impact statements, victim-prosecutor communication, and the victim notification system. He wants also to introduce some elements of an inquisitorial system to limit exposure by child victims and witnesses to the courts. Power says accusations by some in the legal profession he has made “knee-jerk” reforms, particularly around the decision to abolish the partial defence of provocation, have only strengthened his resolve to make more changes. The Law Commission had twice advocated removing provocation from the statute book, so it was hardly a knee-jerk action. Power reports good progress is being made on addressing the drivers of crime, which are being treated as a “whole-of-Govt-priority.”