The Government delivered its sixth budget last month.
There was a lot of fuss about the surplus.
Labour delivered nine surpluses in nine years.
In fact, since 1935, the annual average GDP growth rate under Labour was 3.7%, but only 2.9% under National.
Not only are we the better financial managers, we have an economic vision for New Zealand that surpasses anything the new budget delivered.
Home ownership rates have plummeted and are at their lowest in 50 years. This budget does nothing to change that.
Labour aims higher. We have big plans for first-home buyers. Our housing and tax policies will restore the Kiwi dream of home ownership.
We will stop offshore speculation in our housing market and build thousands of quality, healthy, affordable homes. We believe that our children should have the opportunity to raise their children in their own family homes, just as we did earlier.
Static salaries
Meanwhile, we will make it easier for Kiwis to balance their home budgets. Last year, 46% of us did not get a pay rise. Average pay rates went up 1.6% when inflation was 1.5%.
We hear a lot about how the economy is growing and in good shape. Good shape for whom? The benefits are not getting through to ordinary people.
Unemployment is a problem and we are determined to get more New Zealanders back to work. We aim to reduce unemployment to 4% in our first term. We will modernise the economy, focus on investment, innovation and industry to create secure long-term jobs.
Tax credits
We have already announced industry upgrades for manufacturing and forestry. Businesses support our R&D tax credits for innovation, and tax incentives to increase productivity.
We will help exporters by lowering interest rates, which takes pressure off our overvalued exchange rate. Universal KiwiSaver, and the Variable Savings Rate, mean Kiwis will pay more money into their own savings, and less in interest.
Our Capital Gains Tax, excluding the family home, will direct capital, boosted by universal KiwiSaver, into productive Kiwi businesses and away from property speculation.
The choice is stark for us all this year.
On one side, Labour’s principled policies put people first while on the other, for National, it is business as usual.
David Shearer is an elected Member of Parliament from Mt Albert and Labour Party Spokesman for Energy and Foreign Affairs.
