Barbara Edmonds
Wellington, June 26, 2024
June is often a turbulent month in the world of politics – it is the month where Kiwis get to unpack National’s budget.
In my view, a budget should outline the government’s values and priorities for our country. Within that, there must be a people-centred approach, which is future-focused to provide support for today and build for tomorrow.
For a Budget to be a success, the first check is to balance the books, so the economy stays in good shape over time. The second is delivering on promises made to people. It is supposed to be the Finance Minister’s moment to open the books and demonstrate economic credibility.
Measly tax cuts
The promise of tax cuts has not cut it for most. Seniors only get a measly $2.50 a week. Fewer than 3000 households are getting the full $250 promised. Yet, the amount they borrowed in this Budget to make tax cuts happen is an eye-watering $12 billion.
The promise of cancer medicines was not fulfilled without an agonising wait.
That is the worst one in my books. I am relieved that Pharmac will be funded more to buy medicines for Kiwis, although many people deserve an apology from (Prime Minister) Christopher Luxon. Had he funded them from the start, he would have saved many from the anguish they felt.
They still cancelled free prescriptions for most people but did not use the money for medicines as promised. I know what this news will mean for our ethnic communities and the many health challenges they face disproportionately to others.
Crime has also been front of mind for many of our ethnic communities.
Crime Prevention also loses
During the campaign, National was adamant that they would be tough on crime. Instead, they have allocated $120 million, which is set for only one year and barely enough to keep the lights on.
The New Zealand Police Association themselves have said that the cuts will have a knock-on effect on frontline police and could increase the administrative workload for these officers.
Over the past five years, Labour’s wellbeing Budgets were designed to look at the inter-generational issues our country faces and come up with a plan to address them: (a) Investing in hospital infrastructure, schools and classrooms, roading over the longer term (b) Fixing the hard stuff like the major infrastructure shortfall brought about over several decades (c) Addressing what causes crime – poverty, family and sexual violence, homelessness (d) Protecting our climate and environment for the next generations of New Zealanders.
I am new to the Finance Spokesperson role but have spent years working on both sides of the political spectrum, have held nine different ministerial portfolios and have a background in the private sector.
Nobody has ever told me that reduced productivity will see a growing economy; or that direct fiscal stimulus does not drive inflation, or that cutting investment in infrastructure now will mean it costs less in future.
But that is what National would have us believe.
Around the country, my Labour colleagues and I have been out meeting with communities to discuss the impact of National’s first Budget.
We have heard ethnic communities share concerns about cuts to key services – from public housing to universal free prescriptions and crime prevention.
We have heard from dozens of people whose tax cuts will not cover the cost of their prescriptions, transport costs, or other supports that have been cut.
As one person explained: “We will be getting tax back, but we will not see it as it will now pay for my family’s medications. National has given with one hand and taken away with the other.”
Times are still tough, there is no denying that. Labour will continue listening to what matters most to you all and holding the National Government to account for the reckless decisions that they have made in Budget 2024. I will continue to do everything in my power to hold their decision-making to account, I hope you can support me on this.
Barbara Edmonds is the Finance Spokesperson of the Labour Party of New Zealand. She hopes to write a regular column in Indian Newslink.
