Govt can now afford other priorities: PM

WELLINGTON: Prime Minister Jacinda Ardern says betterthanexpected economic recovery and a strong fiscal position means in the coming Budget the Government can move on to addressing the challenges of housing, climate change and child poverty.

Treasury numbers released yesterday showed net debt is forecast to reduce to 36.5% of GDP by 203435.

Ms Ardern said that was a significant reduction on what was expected in preelection projections.

‘‘Accordingly, Budget 2021 will target areas and people that need it most,’’ she said.

‘‘Two things have happened in the last year which has put us in this position.

‘‘The first is New Zealanders working hard and making personal sacrifices during a hugely challenging 2020. The second was timely targeted investment to keep New Zealanders in jobs and Kiwi businesses operating.

‘‘We made a very clear decision not to adopt austere measures that were promoted by other political parties and it is our view that investment is paying off.’’

Finance Minister Grant Robertson said a strong fiscal position heading into Covid19 allowed the Government to move quickly to protect New Zealanders’ lives and livelihoods.

‘‘The significant resources we’ve put into the recovery and rebuild will be supplemented by further investments over coming budgets.’’

Assessments would be made as to whether money could be retargeted or reprioritised where it had not already been used, he said.

‘‘This includes rigorously reassessing all the spending that was provided for in the Covid Response and Recovery Fund.’’

Mr Robertson had asked other ministers and agencies to report to him about how programmes were tracking and how money had been spent to feed into Budget decisions that would be made later on in the year.

Ms Ardern said the wage subsidy scheme helped reduce the unemployment rate.

‘‘We are indeed in a unique, privileged position.

‘‘This was not luck.

‘‘It was management of a crisis by means that were both prudent but we also called on the collective.

‘‘It was the team of five million’s willingness to work together,’’ she said.

Ms Ardern was speaking on the first sitting day of the year.

Members of Parliament have been meeting in their select committees for a couple of weeks already, but yesterday marked the first time MPs returned to the debating chamber in the House of Representatives.

Yesterday proved dramatic when the National Party failed to carry a motion of no confidence in House Speaker Trevor Mallard.

National leader Judith Collins issued Mr Mallard a veiled threat that her party planned to raise repeated motions of no confidence in him throughout the year.

National said Mr Mallard was not fit to be Speaker, after it was revealed he used more than $300,000 to cover a defamation legal dispute. — RNZ

❛ It was the team of five million’s willingness to work together