Editorial: A mixed bag of a Budget

Finance Minister Bill English. Photo / NZME.

Finance Minister Bill English's seventh Budget speech delivered to Parliament yesterday had a sweet and sour taste to it.

The big bonus was a $790 million child hardship package, with benefits for parents increasing $25 per week. The significance of this is that it is the first increase to core benefit rates in 40 years and it took a National Party to do it. "Compassionate conservatism", as Prime Minister John Key called it.

However, this handout or handup (because there are work conditions attached to the package) had to be paid for somehow, especially since it was revealed yesterday that the tax take had slipped a bit.

This is where the two surprises come in - they will help pay for the hardship package, but they will cause some grumbles.

Say goodbye to the $1000 kick-start contribution on signing up to KiwiSaver and say hello to a little irritant for travellers - a new "border clearance levy" for arriving and departing passengers of $16 and $6 respectively.

In reaction to the speech, Labour leader Andrew Little sneeringly said the Budget showed National is demonstrating "management by sleep-walk". That is probably a little harsh, but there certainly was a hint of the weariness of a third-term government in their seventh Budget.

One thing is clear, the Government is determined to steer the good ship New Zealand into a $176 million surplus in 2015/16 - even if it is a year later than originally promised.

Unfortunately for us in the regions, we were way down on the list of priorities.

A request by our mayors to do more for the regions seems to have fallen on deaf years once again.

Maybe next year.