Fiction and fudge- it Budget, says Labour

Labour has dismissed the Government’s ‘‘ fudge- it’’ Budget saying it massages the books, while the Greens claim there are long- term cuts to health and education.

Finance Minister Bill English has delivered a $ 372 million surplus, returning the books to black. As the election approaches he has also appealed to families by extending paid parental leave, boosting the parental tax credit and extending free doctor’s visits to under- 13s. ACC levies are also likely to drop next year.

Labour leader David Cunliffe says National has adopted a pale imitation of many Labour policies. Labour is pushing for paid parental leave until 26 weeks, and announced a ‘‘ baby bonus’’ package earlier this year.

The Budget lacked direction and vision, while doing nothing to address ‘‘ housing affordability’’ or a pending net migration crisis, Cunliffe said. But he conceded extending free GP visits was an ‘‘ attractive policy’’.

‘‘ Migration is a problem . . . uncapping migration without targeting it fully at skills is a very bad idea,’’ he said. ‘‘ National’s immigration policy is out of control . . . Migration needs to be at a predictable, steady level.’’

And he said there was nothing in the Budget ‘‘ to build one more healthy home’’,

Cunliffe said National ‘‘ fudged the numbers’’ to fulfil a pledge to return to surplus. ACC levies on cars – likely to be cut next year – should be slashed this year, he said. ‘‘ There is at least $ 120m to give back that’s been deferred.’’

An interest- free loan for Auckland transport projects should have been capital spending.

The surplus is ‘‘ an exercise in the fiction section of a library’’ with a $ 567m cut to the Government’s contribution to Canterbury rebuild infrastructure.

Cunliffe refused to say if Labour would remain within the $ 1.5b operating Budget, set by National, or if it would promise tax cuts on the election campaign trail.

Green Party co- leader Russel Norman says Key has been borrowing $ 17,000 a minute for every minute he has been prime minister. ‘‘ I’ll tell you the legacy of this Government will be 30 per cent of children living in poverty, a 50 per cent increase in greenhouse gas emissions, and debt – mountains and mountains and mountains of debt.’’

Norman said it was the decisions that National made in response to the global financial crisis and the Christchurch earthquake that had made the economy worse.

While the Government’s paid parental leave announcement was welcome, it would make no difference to the three out five children that were living in poverty.

He said the education and health votes had taken significant cuts over the next three years just to achieve a surplus.

NZ First leader Winston Peters said it was ‘‘ a steady as you go when you are going no- where Budget.’’