Staff Reporter
Wellington, May 21, 2021
Budget 2021 lacks the plan and ambition that New Zealand needs to grow the economy and reduce the debt burden on future generations, Leader of the Opposition Judith Collins has said.
Following is her Statement:
This Budget is confirmation of Labour’s inability to deliver. There is nothing in it for middle New Zealand. It is the Broken Compass Budget. Labour does not have any direction for getting the country back on track to prosperity.
No aspiration
This Budget lacks the aspiration we need if we’re going to grow the economy and create more jobs so we can pay down debt faster. With losses projected for the next five years, the quality of government spending matters now more than ever and we have seen in the Budget that Labour does not have its priorities right.
To truly ‘secure our recovery,’ we need to provide businesses the confidence that they need to invest, so that they can employ more staff and pay good wages.
All New Zealanders are feeling the pinch right now, not just those on jobseeker benefits and the minimum wage. So, where is the plan to take the entire country back to prosperity?
‘Little too many’
Treasury says that the benefit increases announced are needed to stave off rising poverty because of the economic conditions made worse by the Labour government – inflation, rent and unemployment. Even with these changes, child poverty rates are set to flat-line while some conditions will get worse.
There was little in the Budget for New Zealanders who have seen their rents jump by $100 a week since Labour came into office.
There was little in the Budget for New Zealanders who are seeing power prices start to increase as the impacts of the oil and gas ban take hold.
There was little in the Budget for businesses that have been lumped with the extra costs of minimum wage hikes, an extra public holiday and compulsory unionism – on top of the sacrifices they’ve made during the pandemic.
RMA unfixed
“The government is not intending to fix the Resource Management Act until 2024, which will be cold comfort to those desperate for an end this country’s housing shortage.
A National Government would be more aspirational for New Zealanders. We do not want Kiwis to just exist on a benefit. We want them to have jobs, to prosper and to have a future.
National would eliminate wasteful spending, let Kiwis keep more of what they earn, and give businesses the confidence to invest, innovate and grow.
Andrew Bayley
National Party Shadow Treasurer said that Budget is an indictment on the Labour government’s ability to deliver for New Zealanders.
Following is his Statement
We are staring down losses for the next five years.
We need a plan to grow the economy, to get us back in surplus sooner so we can be prepared for the next inevitable shock, whether that is a natural disaster or a trading disruption. Instead, Finance Minister Grant Robertson is comfortable to keep borrowing $110 million a day.
No plan to raise productivity
This Budget should have delivered a plan to get New Zealand back to prosperity and to reduce the debt burden on future generations. National wanted to see an unashamedly pro-growth Budget that would unleash businesses and get our economy firing on all cylinders.
Instead of supporting businesses to create jobs and lift wages, Labour has focused on increasing the benefit. All New Zealanders are feeling the weight of the rising cost of living as a result of Labour’s policies, but there is little for those Kiwis working hard on low wages.
Labour will increase your benefit, but it will not help you find work.
We were hoping for a Budget that finally took New Zealand’s productivity crisis seriously, that would grow our economy rather than keep treading water. There’s nothing on that front.
Michael Woodhouse
According to Michael Woodhouse, National Party’s Finance Spokesperson, the previous National government created an environment that helped create 10,000 jobs a month.
“That has more than halved under Labour, with projections of just 3700 jobs to be created per month. That is no surprise given the huge burden Labour has imposed on small businesses,” he said.
Following is his Statement:
“$200 million for PHARMAC is welcome, but Kiwis suffering from rare diseases and cancers will be hugely disappointed when they see Labour has been prepared to pump more than double that, $490 million, into bureaucracy and restructuring costs.
Labour has also callously reduced the amount of money going to DHBs for cost pressures, meaning that it will not be possible to keep the lights on and to keep many crucial services.
What we have got is a Budget that is papering over the cracks.
Growing businesses and R&D
“A National Government would be ambitious for Kiwis. We would be actively working with businesses to help them grow through areas like Research and Development, supporting them to buy new plant and equipment machinery to improve productivity, and we would back Kiwis to take more risks and to innovate.
A growing economy means new jobs for those unemployed, better paying jobs and it means we can invest more in hospitals, schools and roads.
We don’t have a roadmap for growing the economy. A National Government would give New Zealanders the tools they need to succeed.
