Here is a preview of what is to come on May 17, 2018
Grant Robertson
I want to discuss how Budget 2018 will take the first steps towards this Coalition Government’s plan for a transformation of the New Zealand economy.
A transformation to one that is more productive, more sustainable and more inclusive.
In essence, a modern economy that is better equipped to take on the opportunities and meet the challenges of a rapidly changing world.
Six months into our work, I am pleased with the progress that we are making.
We came into Government with a clear and different set of priorities. We immediately set about implementing our plan to support more New Zealanders to have a share in our country’s prosperity.
Persisting inequality
There is no doubt that the high-level indicators for the New Zealand economy have been, and are, strong. But despite the economic growth seen in recent years, many Kiwis have not seen any significant improvement in their standard of living.
In fact, far too many of our people have been left out of the benefits of economic growth.
One of the main features of the election campaign last year was the growing level of inequality in New Zealand society, I heard very similar concerns. And that is, no New Zealander is comfortable with levels of homelessness that are the highest in the OECD, or that children are growing up in cold, damp houses.
Nobody is. No New Zealander is comfortable knowing that there are people who are not able to house their families, or who are not able to put food on the table.
That is not the New Zealand that we all believe in, and we – made it our first priority to set about righting this wrong.
Reversing untargeted cuts
So, our first action was to reverse the untargeted tax cuts proposed by the previous government and re-invest that money in supporting low and middle-income families.
Our Families Package will see $5.5 billion over the next four years focused on improving the living standards of those who need it the most. And there was money left beside to build the foundations of our economic transformation.
Through our mini-Budget in December, we introduced: The Families Package, which, when fully rolled out in 2020-2021, will see 384,000 families with children better off by an average of $75 a week, and many hard-working lower-income families receiving more; Our Winter Energy Payment will support Superannuitants and recipients of main benefits with their energy costs; and Further support to families by extending paid parental leave.
Varied initiatives
An increase in the minimum wage to $16.50 an hour from April, and it will rise in phases to $20 an hour by 2021. The Healthy Homes Guarantee Bill to ensure that all rentals are warm and dry. This is not just a housing policy but a health policy, and an economic policy.
We allocated $2 billion for our ambitious Kiwibuild Programme to deliver 100,000 long-overdue affordable houses built across the country, including 50,000 here in Auckland.
We have fully funded the first year of our fees-free post-secondary education and training policy. We established our Tax Working Group to look at ways to improve the fairness and balance of the tax system and shift investment towards the productive economy.
New approach
Budget 2018 will take the next critical steps in rolling out that plan. It will lay the foundations required to rebuild the critical social and physical infrastructure in New Zealand.
We have come in after nine years of a government that demanded public services do more with less. This might sound great in theory, but in reality, as we have seen in many cases, the result was underfunded critical public services doing less with less.
Fiscal Sustainability
There is another element to sustainability; that is fiscal sustainability.
This Government, like all others, has to be responsible to future generations with how we manage our finances, just as we do for our environment.
There has been quite a lot of comment about the Budget Responsibility Rules.
Today, I want to re-assure you that we are committed to them as much as we are to the investments needed to transform our economy.
Both are possible, and both are necessary. It goes without saying that a Government that presides over high deficits, increasing debt, or a shrinking economy would not be able to provide the critical and quality public services that New Zealanders want and deserve.
Every responsible Government should be reviewing policies and spending regularly to ensure that taxpayers are getting the best value for money and that policies will benefit the greatest number of people.
Grant Robertson is the Finance Minister of New Zealand. The above is an extract of his speech at Westpac in Auckland . (Picture of Grant Robertson from file)
