BUDGET 2020

What you can expect

SUPPORT for struggling businesses and a boost for social welfare will underpin a Budget set to tackle the biggest economic crisis since the Great Depression.

Minister of Finance Grant Robertson’s third Budget will almost certainly need to be paid for with new Government debt and without recourse to significant tax changes.

There will be no electionyear inducements; instead, Budget 2020 will meet the economic devastation wrought by the national and international response to Covid19.

In Otago and Southland, some leaders hoped the Government would focus on helping those already facing socioeconomic challenges.

Queenstown Lakes Mayor Jim Boult, whose district has been one of the hardest hit by the drop in tourism and hospitality spending, said tourism funding could not be a onesizefitsall package.

That also applied to migrant workers, many of whom had lost their jobs due to Covid19.

Some younger workers in New Zealand on holiday visas might need assistance to return home, he said.

‘‘I just don’t think the jobs are going to exist for them post this.’’

But for migrants who had made the country their home, there would need to be different support, he said.

When asked about a targeted wage subsidy for tourism operators once the general subsidy ran out, Mr Boult said it would only be a good move if it did not give ‘‘false hope’’ of longer term employment.

Otakou kaumatua Edward Ellison hoped the Budget would support traditionally lower socioeconomic groups such as Maori, Pacific Islanders and young families.

‘‘We’ve landed at the bottom of the cliff and now they’re having to triage across all sectors of society.’’

University of Otago Business School head of economics Prof Paul Hansen said this Budget would be the most significant he had seen in his lifetime.

New Zealand was better placed than many countries for a ‘‘rainy day’’, thanks to the efforts of successive ministers of finance, he said.

But, he cautioned, it was going to be ‘‘a hell of a rainy day’’.

‘‘It’s not just a little bit of pitterpatter on the roof, it’s a p...down.’’

He expected to see more social welfare spending, business support and an extension, albeit perhaps in more targeted form, to the wage subsidy.

The goal would be to save as many jobs as possible, he said.

While the idea of helicopter money sounded appealing, he described it as ‘‘an appalling idea’’ as it would also benefit those who had not been affected by the virus.

Otago Southland Employers’ Association chief executive Virgina Nicholls wanted the Government to take a more targeted sector approach.

Support for training and upskilling to meet changing employment needs should be a priority, as should construction companies around the region having priority for local and central government contracts.

Otago University Students’ Association president Jack Manning said funding should be allocated towards ‘‘addressing the widespread and systematically exacerbated financial hardship students are facing, without driving them further into debt’’.

❛ We’ve landed at the bottom of the cliff and now they’re having to triage across all sectors of society