Political Reporter Thomas Coughlan talks to Finance Minister Grant Robertson about today's budget.
Video / NZ Herald
OPINION:
Well, Labour did it. They pulled the rabbit out of the hat, and middle New Zealand will soon be getting a $350 cost-of-living payment to help with inflation.
I have to admit, I wasn't hopeful. It seemed to me that Labour had been caught off-guard by the cost-of-living crisis.National was certainly banking on Jacinda Ardern and Grant Robertson being too slow to react. They didn't see the cost-of-living payment coming. It blows Chris Luxon's offering of $2 a week out of the water.
A local politician isn't to blame for the international cost of shipping, building supplies, and oil (which puts up the cost of everything else), but voters will still hold them responsible for helping them deal with it - just ask Scott Morrison and Boris Johnson.
Our rate of inflation is now well below the EU, the US, and the UK, which just hit an eye-watering 9 per cent - but that doesn't mean New Zealanders aren't feeling the pinch, and expecting the Government to do something about it.
The cost-of-living payment, along with the continued cut to fuel excise and public transport prices, will mean a lot to whānau across the country. I suspect it won't be the last policy in this area.
Finance Minister Grant Robertson on his way into the House to deliver his Budget, with ministers, from left, David Parker, Andrew Little Megan Woods, and Peeni Henare. Photo / Mark Mitchell
The economic outlook is good too – hourly wage rises are predicted to hit 6 per cent by next year, well above inflation. But we'll need minimum wage increases and Fair Pay Agreements to make sure the workers on low wages get their fair share.
Politically, this is a smart Budget from Labour. They have seized back the initiative, and it was clear from the stunned looks on the faces of Christopher Luxon and Nicola Willis, that National has no answer, no ideas.
There's no big spend-up in this Budget. Total Government spending is actually down $1b. But there's three investments I particularly like in this Budget:
There's a focus on health and, crucially, it's not going to bureaucrats. The Māori Health Authority will get $160m to fund community providers on the ground to deliver services specifically targeted at addressing access to health for Māori.
This isn't about 'Māori-only' or separate systems or any of that rubbish you hear – all health providers treat all ethnic groups. It's about helping providers who understand Māori culture to connect to whānau and help them get care. It's about getting results by making the health system accessible to Māori.
Secondly, it's good to see more funding for community providers to build affordable rentals and home insulation. The state house build is putting up thousands of houses, but community providers have a place too – they get into those smaller communities, and they provide wraparound support for lifting up families.
Lastly, the continued funding for apprenticeships and trades training. That's crucial to giving our young people a better start in life and more opportunities. And it means we will have the workforce to build the homes and other infrastructure our country needs.
These are still tough times around the world – Covid, inflation, war. But this is a Budget that looks after Kiwi families as we go through it.
