Budget 2005: Reaction from opposition politicians

Following are statements reacting to the budget by opposition parties.

National leader Don Brash

"Budget 2005 is an opportunity lost for all New Zealanders," says National Party Leader Don Brash.

"We are bleeding Kiwis to Australia. 600 of our best and brightest get on the plane each week. The same number will be getting on the plane next week. There is nothing in this Budget to encourage them to stay.

"The promise to tinker with tax thresholds three years down the track is nothing short of an insult to hardworking Kiwis who have been overtaxed for the past six years.

"I can promise you here and now National will do better than this. New Zealand workers deserve better and they will get it under National," says Dr Brash. 

National finance spokesman John Key

"This Budget is slow Punch and no Judy. Frankly, working New Zealanders should feel insulted they've had to wait so long, to be promised so little," says National Party Finance spokesman John Key.

"It confirms that Labour has blown all the gains from a relatively buoyant economy, and it is further evidence that Labour has no ability to set sensible spending priorities.

"This is a Budget all about lost opportunity. Small, begrudging changes have been made to taxes only because National is breathing down Labour's neck.

"Laughably, the ridiculously small tax changes will not kick in for another three years. It's now clear why Michael Cullen did not want to promote this Budget - it's a joke.

"By the time we see any tax adjustment, we will have paid for it in spades - through things like the carbon tax, or any of the 30 odd taxes and levies that Labour has increased.

"Helen Clark is sending all the wrong messages to working New Zealanders. Budget 2005 is not the game breaker it should have been.

"It is telling taxpayers that they can earn it, but they won't get to spend or save it.

"Labour is telling workers not to take the promotion, and telling entrepreneurs not to take a risk because, in the end, it will not be worth their while.

"Little wonder that around 600 Kiwis leave for Australia every week. This Labour Budget will give more Kiwis wings so they can migrate across the Tasman.

"Having failed to set sensible spending priorities, Labour's key strategy in this Budget is its hollow claim to be a champion of the savings and ownership society.

"Of course savings should be encouraged, but the fastest way to increase savings is to raise the wages of the low income earners," says Mr Key.

NZ First leader Winston Peters

Winston Peters has described this year's Budget as like a fiscal version of a bad film script – full of bad grammar, laughter in the wrong places and events that don't happen.

Mr Peters said that if the Government is going to keep overtaxing New Zealanders then they should at least increase spending where it counts on social services, the elderly and protecting our borders. This Budget fails on all these counts.

"It is a Budget of bizarre priorities which emanates from Labour's strategy of focus group polling and trying to keep pressure groups happy and pandering to immigrants.

"For example, this Government will spend millions keeping ethnic communities happy but will not spend one cent raising superannuation for struggling New Zealand seniors. In fact, there aren't even sufficient funds for the promised rates rebates to seniors if all those eligible apply .

"There is nothing in this Budget which seriously addresses our border security issues and no increased funding for essential work at the Immigration Service, despite the clear failure of this department.

"This Government has abandoned any prospect of growing exports and has conceded that they will decline over the next few years.

"All the extra money going into health and education barely allow these sectors to tread water."

Mr Peters said he supported the increased funding to residential and home based care for older people and he was pleased the government had finally recognised the importance of improving our savings record, although the measures outlined wont work.

"Unfortunately though there is no real vision or blueprint for the future. Dr Cullen had a chance to write a script of hope but he churned out a flop. His computer will be taken from him at the next election," warned Mr Peters.

Act leader Rodney Hide

Act Leader Rodney Hide today attacked Finance Minister Michael Cullen's election year budget as a sick joke, lacking any vision or ambition for New Zealand.

"New Zealand deserves better than this. We need a ten-year vision of how New Zealand can succeed and prosper in the world economy. Instead we get trivial tinkering and wasted opportunity.

"Michael Cullen has ripped off New Zealand workers once again.

"He could have slashed taxes to just two rates, 25 per cent above $38,000 and 15 per cent below that, locking in higher growth rates and securing New Zealand's future prosperity.

"The inflation adjustments aren't tax cuts at all. They are six years too late and don't kick in for three years.

"Someone on the average wage will only benefit by $6 a week – in three years time – April Fools Day 2008.

"There is no tax cut for business, just a tweaking of depreciation schedules. To offset that change we have the carbon charge. The total value of this Claytons tax cut is less than $100 million in three years time – about one per cent of the total company tax take.

"The Labour Government has clearly run out of ideas, energy and time. This is a do nothing budget.

"A tax cut across the board for New Zealand's over-taxed workers has been earned, is long overdue and should have been delivered," Mr Hide said.