Labour has bought more time with its latest Budget

An observation came back to me on Budget Thursday. It was mid-April, on a Zoom call with a few others. We were just about to start a presentation to Auckland University post-grad students. But first we took our punts on the outcome of the next election.

Most felt Labour would still win but political scientist Dr Edward Elder wasn’t so sure. He reckoned governments struggle to win elections when they stop being able to control the media narrative — well, even by then Labour had lost control.

The Government was already constantly responding to the Opposition’s points.

And that’s what happened on Thursday. There are plenty of signs that Labour was forced to cobble together a cost-of-living package because the Opposition kept banging on about it.

That $27-a-week payment looks like it was put together in a rush. To pay for it, Finance Minister Grant Robertson raided the Covid Fund, the easiest place to get lots of money, fast.

The Treasury advice on the policy was very late. . Treasury officials write that the Minister of Finance sought “urgent” advice on the $27 weekly payment.

Also in there are the half-price public transport fares. It was meant to be part of the climate package.

Then there’s the urgent legislation to target supermarket land-banking. Supermarkets have already voluntarily agreed to end the practice.

This was a Budget that feels like it was supposed to be about something else. Climate change. And while Labour still threw money at climate, the subject barely got a mention.

Labour probably knew it couldn’t run out this year’s Budget, blowing money on everything from the climate to Māori health, while Kiwis struggle to make ends meet. And while the Opposition kept banging on about the cost-ofliving crisis.

Labour has felt on the back foot on the cost of living. The Prime Minister refused to call the cost of living spike a “crisis” only days before public opinion forced her to cut the excise tax on petrol.

The $27 payments end by November 1. Inflation will still be high. As soon as the half-price public transport fares, cheaper petrol and free money run out, we’ll be back to as bad a situation as now, likely worse.

The Budget has bought Labour time, but nothing else.

Herald on Sunday