Budget 2006: Deal to lift police numbers could cost $800m

New Zealand First's $500 million police deal may cost the Government an additional $800 million - the potential cost of prosecuting or locking up the extra offenders caught by the increased number of officers.

NZ First negotiated 1000 extra police and another 250 non-sworn staff as part of its confidence and supply arrangement with Labour.

The staff will be recruited in three tranches over as many years, with additional money for extra operating costs fed in over four years at a total cost of $500 million.

The associated flow-on costs of the extra police are identified in the specific fiscal risks in yesterday's Budget, but have yet to be quantified.

Justice agencies have however made preliminary estimates based on the assumption that current policy settings remain unchanged, the documents show.

Those suggest "the flow-on costs, excluding those costs for police, could be in the order of $150 million to $200 million per annum over the forecast period".

The Government has also signalled there are likely to be policy or legislative changes in regard to sentencing, remand and parole, which may ameliorate costs.

NZ First leader Winston Peters heralded the extra police as just one of his party's confidence and supply wins yesterday.

He also claimed kudos for the increase of $126 million in home-based elder funding care over the next four years and the decision to make Tauranga's new Harbourlink Bridge toll-free.

Superannuation has already been increased from 65 to 66 per cent of the average wage and Mr Peters said yesterday the golden age card, "which will make the money for the elderly go a bit further", would be introduced next year.