Earlier this year, we did a piece on the myth of Gumboot Friday.
In it, we outlined how, despite what the government says, it is not a ‘frontline service’ like they promised to support.
Despite this, the coalition government pledged $24 million to Gumboot Friday in support of ‘frontline’ mental health services. But why?
We know now that they’re a middleman service and don’t employ their own counsellors — they simply send service users to two free private counselling sessions and then move on without a follow-up.
There are no mechanisms for follow-ups, feedback, or long-term support for vulnerable young people.
Prime Minister Luxon defended the decision to allocate a portion of the budget to Gumboot Friday by straight up lying about $1 of investment having a social return of $5.70.
Government MPs then parroted the lie and MP James Meager claimed that funding Gumboot Friday would give 15,000 the “chance to get free counselling” as opposed to guaranteeing thousands more.
They could have invested that money in the place Gumboot Friday refers young people to, not the referral agency.
It emerged that Naome Ballanytine, who became the chair only months after National got into office, had donated $20,600 to National — as well as separate payments totalling $6,840 during last year’s election campaign.
So, it becomes obvious. The government gave funding to their private donors rather than actual workers doing the hard mahi.
Despite the public donation logs, Ballantyne maintained she hadn’t spoken to the government about budget funding.
She then said how her duty as the chair was only to “navigate” the funding situation given her experience, which is why she is now departing. She also outlined her frustration with the “torrid” criticism she faced in the role as the dodgy processes for securing the funding surfaced.
Because there was no real reason to fund Gumboot Friday. This is why, despite Mike King’s frustrations, the former Labour government refused to fund them as a private referral agency.
It may seem really low to go after a charity that has made a positive difference for many young people. The problem, however, resides in the politically-charged narratives and structures of the organisation that significantly limit support.
In 2021, Mike King “hit out” at the Ministry of Health after the Labour Government declined funding for Gumboot Friday.
This time, the National-led coalition, after receiving thousands from the chair, enacted an opt-out clause in allocating funding. This means they didn’t actually have to have a reason that is consistent with prior public funding allocations to private firms.
Former National MP and leader, Todd Muller, also miraculously appeared on the I Am Hope board for eight months once National was in government, departing with Ballantyne only recently.
Not only were the funding processes obviously partisan, but the ‘charity’ also produced Mike King's son's podcast and advertised it on their website. This was used to spread misinformation about vaccinations during the pandemic.
King recently doubled down on comments he made about alcohol being the “solution” to poor mental health outcomes.
“I would suggest to you that alcohol has prevented more young people from taking their own lives than it actually makes them take their own lives,” he claimed.
When he was given the data that alcohol is associated with a 94% increase in the risk of suicide, he wanted to “agree to disagree.”
The government bashfully defended the $24 million in funding.
Simultaneously, attendees of I Am Hope functions have grown sceptical of the events and how much they would have cost the ‘charity’ to host.
As your school, community groups, political parties, and politicians celebrate today as a day of mental health awareness and supporting a good cause, let them know it’s not.
Give Gumboot Friday the boot and instead support the people on the frontline doing the mahi themselves.
The Prime Minister, before a week or so ago, owned seven properties, each worth over $2 million, a total of $21.145 million.
His property portfolios grew by $4.3 million in 2021, and he made $90,000 in capital gains every week in 2022, more money than he made as CEO of Air New Zealand.
He was the wealthiest MP as Leader of the Opposition, and once Prime Minister, he chose to give $3 billion in tax cuts to landlords.
This month, he sold one of his Auckland properties.
On that property, that he bought for $650,000 in 2015, it was listed at a set price of $945,000. That’s a capital gain of $295,000, which he paid no tax on.
Earlier this year, the government repealed the old bright line thresholds, opting instead for two-year period.
The bright line test has gone back to its initial two-year period, as was firt introduced in October 2018.
The new bright line test applies if you have sold a property on, or after, 1 July 2024.
That means any residential property sold within two years of it purchase date with be subject to tax on any profit made from the sale. Property owners buying after this date will only have to pay tax within in that two-year period.
That’s just under the amount of time that he’s owned the property, meaning he’ll pay no bright line and no capital gains tax.
New research from Victoria University has found that the richest people in Aotearoa are paying less tax than others in nine similar OECD nations.
We are one of only a few who have no tax on capital gains, no kind of wealth tax, and have the most pathetic income tax rate.
The Prime Minister and almost every other sitting member of Parliament own multiple properties and have investments in businesses, giving them all an interest in keeping the tax system stuffed and the housing market in favour of landlords.
They don't work for us. We work for them.
UPDATE (4 December, 2024):
The PM has sold his third house this year after changing the brightline test, meaning he made $300,000 tax-free on this sale - likely over $760,000 in profit on all properties sold this year.
Luxon just sold a two-bedroom unit in Onehunga for $930,000 - more than $309,500 than he paid for it in the first place ($620,500).
Had his latest property sale been the same as his asking price, he would have made total capital gains of $769,500 from the three sales. But he won’t actually tell us.
Original images sourced from NZME, RNZ, 1News, Three News, unless stated otherwise