That rainy day we’ve been saving for is here now
New Zealand’s impressive response to Covid-19 limited the economic hit across the country, meaning there is now more funding and more opportunities for the Government. But our previous problems as a country have also re-emerged, which leaves them with tough choices for Budget 2021.
With these opportunities and challenges looming, now’s the time to recharge the New Zealand battery, shift the dial on our most pressing issues, invest in our people and our foundations, and set a direction for prosperity.
Australia’s recent Budget provides support for greater business hiring and investment, helps put more money in people’s pockets, includes a further
A$15 billion for infrastructure, and has incentives for further IT and gaming activity. The Australian Government is taking on higher debt to do all of this and more but is confident the payoff will be worth it. We need to think similarly to boost our economy.
Too often we focus on having low debt as a country, are concerned at spending levels, and want to save for a rainy day. But we have issues than mean we need to focus more on what we’re spending on, and what we can achieve by investing in the right things to unlock potential and prepare for the future. Our rainyday umbrella will only work if we make sure it’s not rusted shut by too little maintenance and investment before the storm hits.
New Zealand’s productivity gaps mean we work more but aren’t getting as much back. Children go without far too often. We don’t have enough housing, and many of the homes we do have aren’t up to scratch. Our schools, hospitals, and pipes are in serious need of repair. And we need to act to protect the environment before it’s too late.
The longer we leave these issues, it will become more expensive and harder to fix them. We must get on top of our critical issues while also supercharging our growing industries to develop well paid, sustainable, jobs.
New Zealand is fast approaching a crossroads. We can either take a road that costs the country more, but brings better outcomes; or we can push our spluttering car further with no maintenance into the slow lane.
Budget 2021 needs to focus on investing in our people and our foundations so we’re prepared for the future, and that we’re starting to address the issues of the past. Building back better doesn’t mean reverting to normal, but instead should seek to balance a more aspirational future with the ability to deliver action.
Alongside big announcements and bigger price tags, Budget 2021 must clearly spell out how the Government will accomplish what it is setting out to achieve. More investment and support for businesses, and correcting our previous handbrakes, are needed for New Zealand to get stuff done.
Budget 2021 will help to set New Zealand’s direction for the future. It’s time to ensure we’ve got the plans, investment, and action to stride forward. Otherwise, we run the risk of running out of energy before we reach the next charging station.