Opposition MPs lay into Budget
Opposition MPs are not holding back in their disdain for Budget 2022, with National labelling it “backwards” and Act the “brain-drain Budget”.
Meanwhile, Government support partner the Greens says far stronger supports are needed to address the “inequality crisis”, including liveable incomes and a wealth tax.
Te Pāti Māori has criticised the spending for Māori, including in health reforms with just over 2 per cent going towards Māori health initiatives.
Finance Minister Grant Robertson yesterday unveiled a health-focused Budget, including $5.9 billion in new spending and an emergency $1 billion cost-of-living package.
That money will go towards cash payments of $350 for more than two million people, extending the 25c-alitre fuel tax and road-user charge cut for a further two months, costing $235 million, and a two-month extension to the half-price public transport scheme at a cost of $132m.
The package is clearly aimed at the National Party, which had been goading the Government to implement a $1.7b tax cut package to alleviate the cost-of-living crisis.
It also included $13.2b over four years for health reforms, including $11.1b to keep up with cost pressures and $2.1b to fund new services.
National had also been challenging the Government to find savings in existing spending. The Government responded yesterday, publishing about $500m in savings.
Leader of the Opposition Christopher Luxon said it was a “backwards Budget”.
“Kiwis, the economy and outcomes are all going backwards under Labour and today’s forecasts confirm the situation is only going to get worse before it gets better,” Luxon said. “Labour’s cost-of-living package is a temporary Band-Aid. The squeezed middle is paying the price for Labour’s economic mismanagement.”
Act leader David Seymour said forecasts showed New Zealand’s population shrinking, and with the median wage gap with Australia growing, the Budget needed to deliver more initiatives to deal with inflation and rising prices.
“Jacinda Ardern and the Labour Government have today presented New Zealand with the Brain Drain Budget. Ambitious New Zealanders, tired of being milked, will weigh up leaving for greener pastures,” Seymour said.
The Green Party, meanwhile, welcomed the new spending on climate action — announced on Monday — and housing funding, but said more needed to be done to address rising inequality.
Co-leader Marama Davidson also welcomed changes to the first home grants and first home loan schemes but said much more needed to be done.
“The Greens right now would have also flipped some support to people who rent, who are over half of the population,” she said.
The party also welcomed the twomonth extension to half-price public transport, and making it permanent for holders of the Community Services Card.
Te Pāti Māori said the Government did not deliver for Māori nor honour Te Tiriti o Waitangi.
Co-leader Debbie Ngarewa-Packer said they were looking for steps in shifting the tax burden to the wealthy, introducing a capital gains tax, a vacant homes tax, and removing GST on food.
“These are practical solutions for all whānau. Whilst two months further relief at the pump is welcomed, this is no solution to curbing the rising costs to live in Aotearoa.”
Māori Health was 2 per cent of the health budget, co-leader Rawiri Waititi said.
“Based on that logic, it will take 1840 years to get to 20 per cent. Our whānau suffer from worse outcomes, we’re dying seven to 10 years earlier than the general population.
“It’s astounding to think the Government think this is [enough] . . . Whānau Ora however will get a boost of $145m which is positive and reflects the outstanding mahi by the Whānau Ora network.”