Government spending
Mark has questioned the spending of $34 million on Team New Zealand, saying it should have been spent on health or education. It got me thinking because while I agree in principle, it seemed a tad more complex than that. Here’s my thinking on it . . .
It is possible for states to spend their entire budget on health and/or education and still not get it right by a long stretch. In the NZ health budget, $34 million would add only 0.0032% to the total, while in the education budget it adds 0.0059%. Such a small amount in relation to the total makes it incredibly difficult to spend effectively and in the right places for the majority.
When making decisions on budget allocations, it’s about maximising welfare and ensuring effective spending. While I agree NZAID could really have done a lot with that $34 million, it appears a huge number of New Zealanders all over the world were keen enough on watching the America’s Cup and seeing us do well that a government injection of cash would benefit the “happiness” of Kiwis worldwide. I know from watching the AC website that there were Kiwis everywhere sending in messages of support. We’re a sporting nation, whether we like it or not, and this event is the oldest active trophy in international sport. We’re a sailing nation and we need to show young sailors that there is something to aspire to.
I guess what I’m saying is that in some ways this was a smart move for a Government that wants to invest in something we do well in (we won the Louis Vuitton Cup after all), in nationalism, and in providing something to aspire to for New Zealand’s young sailors. One can always say “the money should have been spent in x and y”, but it’s more difficult in this case to say that the money could have been spent more effectively in x and y.
Isn’t it also a investment? (with high risk) If we had won the cup, the amount of additional tourism we’d generate would easily justify the expenditure. Unfortunately we didn’t win, but that’s just the risk you take.
Another good point!
[my comment on the last post was tongue-in-cheek...]
Looking at it realistically/rationally it was definitely worth the government taking a calculated risk and investing $34 million.
But - call me idealistic (or just uninterested in the America’s Cup) - I still don’t believe the government needs to buy “happiness” for New Zealanders in that way…
It also happened to be bad timing that the government pledged a further $10 million to Team New Zealand on the same day that news broke of the government’s refusal to fund a cervical cancer vaccine (which would cost $10 million a year).
http://www.radionz.co.nz/news/latest/200707042143/doctor_angry_cervical_cancer_vaccine_not_funded
The justification for the $34m is one of branding. By supporting “team NZ” the government was hoping (justifiably or not)among other things to increase NZ’s brand image on the world stage. Increasing NZ brand image will, it is hoped, improve NZs export earnings as well as the number of tourists coming to NZ which in turn will generate additional income for NZ (& taxes for the government). The “investment” will also feed into an increased sense of national pride (which in turn they hope will transfer into more votes at the next election.
So at the end of the day it all about taxes and votes.
you need to post more so that there’s a variety of posts to comment upon. my comment has nothing to do with government spending…and only a little to do with my own.
thanks for your info about the e-mails. i think i’m going to leave it and start afresh. my inbox was rather cluttered…
also, Jon checked my flights, and they were booked wrong. haha. good thing i decided to check them. they’ve been re-booked and i now get 2 days in London. still don’t know when, ‘cos Jon’s got my new itinerary…hopefully.
keep the start of Sept free!