This used to be one of my favourite expressions, Invercargill being the home town and all, until someone said to me...
Auckland has about 35% of the population, pays about 38% of the total tax bill and receives about 32% of the infrastructure spend. So even with the fuel surtax, Auckland is still subsidizing the rest of the country.
The bastard thing is that I've never been able to prove him wrong. Bugger!
I may not be as good as I once was, but I'm as good once as I always was.
He isn't wrong, but that is only because so many companies have their head office in Auckland.
eg. A petrol company has its head office in Auckland, but runs a petrol station in Invercargill. All profit that the petrol station in invercargill earns is counted as being earned by head office in Auckland. Head office pays the tax, and so the tax is counted as being paid by Auckland, even though the money comes from Invercargill.
With infrastructure, a similar effect occurs. A power station is built in Taranaki, and power lines are built from Taranaki to Huntly, then new lines are built from Whakamaru to Otahuhu. Total cost is around $3B of which only $100M is spent in Auckland, but it is all for Auckland's benefit.
If you want a fair comparison then rather than take the total tax paid, take the net Paye tax less benefits and see where the real wealth is being earned.
Time to ride
Yeah. "Stupid"
Auckland's peak demad yesterday was 630MW. The old Huntly station was shut down and generated 0MW, the newer E3P station at Huntly was generating 330MW (it can go higher to 380 MW) and all the rest of Auckland's and Northland's demand was supplied by stations further south.
Time to ride
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