New Zealand Taxpayers' Union's Debt Clock on its nationwide tour. Photo / Ayla Yeoman
New Zealand Taxpayers' Union's Debt Clock on its nationwide tour. Photo / Ayla Yeoman
A hīkoi around New Zealand calling for the Government to balance its books arrived in Tauranga today.
Led by a seven-metre Taxpayers’ Union Karaka Nama (Debt Clock), the hīkoi highlights the Government’s borrowing from future generations, organisers say.
But the Government claims debt got out of control under the previous administration.
NZ Taxpayers’ Union spokesman Rhys Hurley told SunLive the hīkoi began last Friday after Anzac commemorations had finished.
“We started the Debt Clock hīkoi, which is taking a big trailer with the nation’s debt on it, and we took it around Northland and now we’re making our way down through the Waikato and Bay of Plenty.”
The debt clock was parked at the Tauranga Bridge Marina from 2.30pm to 4pm on Wednesday.
The Debt Clock tour will end on May 15 outside the Beehive in Wellington. Photo / Ayla Yeoman
The Debt Clock tour will end on May 15 outside Parliament, ahead of Budget Day on May 22.
“What we are trying to do is inform communities about how much debt the Government is in, about how that is broken down per household, which is $92,000 ... the Government is in $185 billion of debt.
“You have to pay interest on that debt, which is $10.2 billion, which is money that could be better spent on core public services.”
Hurley said as Government debt continued to pile up, the tax burden on the next generation of taxpayers continued to grow.
This meant that in the coming years, more and more money would be spent on paying back debt and interest, resulting in less money for core government services like health and education.
“We want to get people informed of the issue so that on Budget Day, Nicola Willis cuts the waste.”
The Debt Clock was parked at the Tauranga Bridge Marina car park. Photo / Ayla Yeoman
Taxpayers’ Union executive director Jordan Williams said, Willis was borrowing $47m a day to fund this year’s deficit.
“Despite being elected to cut spending, the Government is actually spending more now than when [Labour Finance Minister] Grant Robertson left office.
“That’s true in both inflation-adjusted terms and as a percentage of the economy.”
Williams said on the eve of the hikoi, the International Monetary Fund released its latest global economic report showing New Zealand had the worst fiscal deficit of any developed economy.
“We are spending beyond our means, and unless tough decisions are made now, a fiscal crisis is inevitable.”
Finance Minister Nicola Willis. Photo / Mark Mitchell
Government response
Finance Minister Nicola Willis told SunLive debt got out of control under the Labour Government, leaping from $58 billion in 2019 to $175b in 2024.
Willis said the aim was to keep New Zealand on track towards balanced books and debt reduction.
Finance and Covid
Labour Party finance and economy spokeswoman Barbara Edmonds said the reality was Labour ran consecutive surpluses before Covid.
Labour Finance spokeswoman Barbara Edmonds. Photo / Mark Mitchell.
“The Minister of Finance keeps talking about Labour’s borrowing, claiming there’s nothing to show for it.
“During the pandemic, we had one of the lowest mortality rates in the world.
“We kept people in work with record-low unemployment when Treasury was forecasting economic collapse. We delivered record pay raises for teachers and nurses.
Edmonds said Willis’ Government borrowed $12 billion last year, not to invest in hospitals, homes, or wages, but to fund tax cuts.
“If you’re going to borrow, it should be for things that actually make life better for Kiwis.”
She said Labour took debt seriously, but a narrow obsession with the balance sheet wouldn’t help families put food on the table, pay the rent, or see a doctor.
“Kiwis want a life of dignity: good jobs, quality healthcare, and affordable homes.”
Willis said their tax cuts cost $1.2 billion in 2024, so there was no basis for Edmonds’ numbers.
Tax relief in Budget 2024 of $3.68 billion on average a year was fully funded from savings and revenue initiatives, so no borrowing was required, Willis said.
