Govt prepares to start major spending spree

Prime Minister Jacinda Ardern says her $400 million spending announcement for almost all schools in the country is just the beginning of what is expected to be a sizable Government spending spree.

But Ardern is giving nothing away as to which areas of the economy are next in line for a fiscal boost.

Ardern capped off Labour’s annual conference by announcing the funding, which is the largest spend on school infrastructure in 25 years. It works out to be about $700 per student and will benefit more than 2000 schools.

Schools can expect to get between $50,000 and $400,000 each, depending on the size of their roll, to spend on fixing and modernising classrooms, replacing roofing and guttering and resurfacing paved areas.

Whanganui City College is receiving just over $200,000 and its principal, Peter Kaua, said the money was a “great Christmas present”.

It means, for example, the school’s “18th-century” style classrooms will be getting a revamp, Kaua said.

National leader Simon Bridges, said the funding was “business as usual” masquerading as a new spending announcement.

The Reserve Bank has been warning of an economic slowdown and has been calling for the Government to spend more money to boost economic activity.

But Ardern and Finance Minister Grant Robertson denied they were strong-armed into spending by the bank’s Governor, Adrian Orr.

But it was “patently obvious” that the $400 million, which schools have two years to spend, would have a clear economic benefit, Ardern said.

Most of the school projects are already planned and ready to go – “this will enable those projects to get under way soon,” she said.

She said the money would be borrowed.

On Saturday, Robertson said the Government had a “once in a lifetime” opportunity to borrow more money while interest rates were at an all-time low to help pay for a “significant” spending plan for key infrastructure across the country. He said the Government would reveal the full detail of the full plan at its economic and fiscal update in mid-December.

Meanwhile, Ardern said she was happy with how the conference went, rating it a 10 out of 10.

But the dark cloud of how the party dealt with allegations of sexual assault and criticisms over its handling of that process loomed over the conference.

Those criticisms led to the resignation of former Labour president Nigel Haworth last month.

Ardern addressed these issues in her opening speech on Friday night – albeit not explicitly referencing the saga itself.

“We are not a perfect organisation,” she said. “We have learned some incredibly important lessons and, through all of that, I know something that we must work harder at is making sure our place is safe and positive for every single member to participate in.”

MP Poto Williams was in charge of a “first principles” look at the culture of the party as a whole.

How the party deals with the aftermath of the reports and investigations into the saga now falls to newly elected president, Claire Szabo.

Sbeat long-time Labour man and key party insider Tane Phillips to claim the presidency.

Phillips is the party’s senior Ma¯ori vice-president and there were concerns the rejection of such a senior Ma¯ori Labour member would create a division within the party.

But Ardern said senior Ma¯ori council member Rudy Taylor said Szabo had the full support of the Ma¯ori wing.