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Home / New Zealand

Budget veteran Tizard has seen it all

24 May, 2001 12:55 AM5 mins to read

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Bob Tizard reckons he won't be staying up late to hear every joker debate this year's budget, saying he cares a "hell of a lot" what's in the document but the fuller picture can wait until morning.

"Tax concessions or grants for R&D - that's hardly the type of thing you stay awake all night about," he sniffs.

Robert Tizard, Labour member for parliament in the Tamaki, Otahuhu, Pakuranga and Pamure electorates over his long political career was present in the house for the reading of 33 budgets, including Arnold Nordmeyer's "Black Budget" in 1958, and Roger Douglas' first stab in 1984.

And of course, he presented his own budget in 1975, a document which did not sport the usual read cover (for Labour) or blue (for National) but his own choice to try and cheer the crowds, gold.

"When I read the Budget in 1975 it was mostly grim ... specifically in 1975 it was anticipated there would have to be a tightening up but no one was in a position to know except the absolute insiders ... you didn't have farmers being consulted, businessmen being consulted."

When Mr Tizard worked for Treasury, matters of budget priorty would be decided by two senior civil servants who would divide a team of people into two, watch them argue it out, and decide from that debate.

Another process was the "policy and priority" committee, a kind of inner circle of senior ministers charged with ensuring new policies would not total more than $100 million each year by getting ministers to prioritise their wish lists.

"It fell down over education because they put in around 90 policy points and said they were all of equal importance," says Mr Tizard.

In 1972 the Government kitty was overflowing. "If there was any argument from Bill Rowling representing Treasury at the cabinet table, Norm Kirk's question would be 'have we got the bloody money or haven't we?', and poor Bill would have to admit we had money coming out of our ears at that stage."

But the cost of New Zealand's protected economy and a generous system of benefits just starting to kick in had turned things much tighter by 1975.

Of course, nothing was more grim that "Nordy's" black budget of 1958, says Mr Tizard, a back-bencher who was just two years into his Wellington career.

"Traditioanlly at the time only the Minister of Finance and the Prime Minister worked on details of the budget. Sometimes at the last minute, one or two ministers would be brought in."

"But you could say that that most of those [occasions] were special - they were not typical."

On the night of the 1958 Budget "the cabinet was called together for 5.30 which is dinner time, you see, and this so-called 'black budget' was just dumped on them and there was pandemonium and the meeting in cabinet went on and on and on.

"The ordinary backbench members had been summoned to a caucus meeting at 7 o'clock and the house was going to meet at 7.30 to present his budget. Well, at 7.25 the bell sounded for us to go into the house and just at that moment the doors opened and in rushed a gaggle of ministers, Nordy and Walter [Nash] the PM.

We heard one or two points and charged off to the house - that was the input that happened ... most of the bankbenchers did not even have time to present shock horror 'cause they hadn't absorbed anything."

Nordymeyer's budget had raised the cost of tobacco, alcohol and estate tax, and the country was riled. "The smokers objected straight away and if you went down to a public bar you might get a jug thrown at your head."

"Not me though, they blamed Nordy, a bloody wowser Presbyterian instead of Bob Tizrad, an ordinary beer drinker."

Mr Tizard says the difference between today's and the yesteryear's budgets is that today, the public is largely aware of what will be in the document well in advance. Before 1990, when fiscal reporting rules changed, it was a different story.

"One of the reasons the the budget was never read before 7.30 was [because] if there was any substantial need for new revenue, they'd have to bang in some taxes that could apply immediately ... you whacked in new legislation, put it through the house under urgency and the price applied the next morning."

Of all the ministers who have presented the budget, Mr Tizard says his old political foe Robert Muldoon could be very good but says Mr Muldoon not writing a budget in 1984 was the cause of that year's snap election - "nothing to do with Marilyn Waring!"

Did he enjoy being involved with presenting the Budget? "It was a very hectic time ... but really, you have worked so hard for so long up to that point that you are not quite an automaton, but it's getting that way."

www.nzherald.co.nz/budget

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