Budget 2011: Investment for jobs, with special measures for Christchurch

Finance Minister Bill English will deliver some trimmings. Photo / Mark Mitchell

Opinion

From the left and the right, Herald contributors offer their early take on Budget 2011. Helen Kelly, President of the Council of Trade Unions, comes from the left, while Auckland Councilor for Orakei Cameron Brewer writes from the right.

FROM THE LEFT
A successful Budget would prioritise New Zealanders who are feeling the pinch of prices increasing much faster than their wages.

It would at least partially reverse the tax cuts which gave the top 10 per cent of taxable income earners a disproportionate 42 per cent of the cuts.

A constructive Budget would focus on good jobs. It would support people who have lost their jobs and make a real commitment to addressing the high unemployment rate, investment in building skills and education levels and funding for projects that build necessary public facilities.

A successful Budget would enhance KiwiSaver to help address New Zealand's international private-debt problem.

The Budget would include a strong programme for Christchurch reconstruction including training and employment programmes and ongoing income protection for displaced workers until major employment opportunities are available. A special levy would help pay for it fairly.

We've been told the most important issue facing New Zealand is our debt and that we have no alternative to further cuts in government spending.

But our public debt is third lowest in the OECD. A successful Budget would get our economy moving and make sure that borrowing is put to good use. When the economy is so slow, cuts in government spending will drive us into recession.

A successful Budget would properly fund public services. Departments wouldn't have to choose which of their critical public services to cut. Women's Refuge, early childhood education and student loans would not face cuts. Departments such as the Department of Labour would not be forced to cut funding to health and safety experts because its funding was frozen.

FROM THE RIGHT...
New Zealanders need to come away knowing there is a concerted plan to reduce the country's eye-watering public debt and deficit, not just for the coming financial year but beyond.

Everyone is braced for the Finance Minister to deliver some trimmings to the likes of Working for Families and KiwiSaver, but the success of this Budget will be judged on the Government's wider strategy to get us back in the blue in a sustainable fashion. With the high cost of living and fuel, people are turning to public transport in unprecedented numbers. The upsurge in passenger patronage across the country needs to be accommodated in this Budget.

The Government should also give Auckland a firmer view on the much talked about $2.5 billion CBD rail loop. There remains disagreement between the Auckland Council and the Government as to the wider economic benefits of having new stations and a rail tunnel under the western side of the central city. However, at the very least the Government needs to indicate whether it is a serious project partner or not and this should be signalled in Budget 2011. The CBD rail loop is a massive 10-year project with its promoters keen to get cracking on designations and land acquisitions. There is hunger for some direction.

The people of Christchurch need to be told that they are not a drain on the economy but a critical part of the country we all want rebuilt. The Earthquake Commission may still have $5.6 billion in its coffers, but Bill English needs to give assurances that the Government could do it all again if called upon. February 22 has reminded us of our vulnerability. This Budget not only needs to show we've got Christchurch covered, but that we have adequate funds to overcome future natural disasters as well.