In the red corner
The Government remains focussed on keeping New Zealanders safe from Covid-19, securing our economic recovery, and building back better by tackling long-term challenges like housing affordability, child poverty and climate change.
I amproud of the way New Zealanders have swung in behind the Government’s Covid-19 response. Our collective efforts have resulted in New Zealand maintaining the lowest number of cases, hospitalisations and deaths per capita in the OECD.
A strong public health response has proved to be our best economic response, too. New Zealand’s economic recovery is outstripping that of Australia, Canada and Japan, export forecasts are at a record high, unemployment is at a record low, and net debt is lower than expected, meaning a faster return to surplus.
Before Christmas the Minister of Finance gave us a preview of this year’s Budget. He said Budget 2022 will provide a boost to the Government’s health sector reforms and initiatives to reduce greenhouse gas emissions.
Covid-19 has highlighted how critical a prepared health system is to protect New Zealanders and support their wellbeing.
This year’s Budget will make significant investments in establishing the entities that will replace DHBs, including Health New Zealand and theMāori Health Authority. Managing rising health costs will be amajor future challenge, so we will ensure the new entities have a solid base for tackling that.
Climate change is one of the most pressing long-term challenges facing New Zealand. To respond effectively, we need to invest significantly across multiple budgets.
The Government will soon publish our Emissions Reduction Plan, setting out the direction for climate action inNew Zealand over the next 15 years. We’ll need to cut carbon pollution from nearly everythingwe do – how we grow our food, get around our towns and cities, and generate energy to heat our homes.
Proceeds from the Emissions Trading Schemewill be spent on emissions reductions programmes through the establishment of the Climate Emergency Response Fund. This will provide around $4.5 billion over the next four years to help meet our climate goals.
Delivering on these commitments requires careful prioritisation; striking a balance between the critical projects that must get under way and the ongoing need for fiscal sustainability. This year will present new challenges, but I have confidence in the Labour Government to steadily guide us through; keeping people safe, while looking out for future generations.