Totting up bill for Peters' coup

New Zealand First says a single superannuitant will get just over $11 a week extra and a married couple nearly $18 a week extra from the increase in the superannuation floor.

The office of Social Development and Employment Minister Steve Maharey would not confirm the accuracy of NZ First's estimates yesterday.

The deal Labour struck with NZ First to form a government gives crucial confidence and supply votes to Labour in return for policy wins that include raising the superannuation floor from 65 per cent to 66 per cent of the net average weekly wage from April 1.

Mr Maharey's spokesman said the actual increases would not be known until early next year when inflation and wages information was known.

He said superannuation was adjusted each April by the rate the consumer price index increased the previous year.

And if that increase meant superannuation payments fell below 65 per cent of the net average wage - or 66 per cent from next April - it would get a second increase to ensure it was above that floor.

The cost of the policy has been put at about $80 million a year.

NZ First campaigned on a "Golden Age Card" to let superannuitants get concessions like transport and power, gas and phone-line charge rebates, as well as increased super payments.

While Labour had agreed to develop a "seniors card", Mr Peters has said there was still work to do getting the other concessions.

The other big policy win for NZ First - 1000 more police over three years - is likely to cost $100 million a year if the recruitment target is met. Adding one extra officer costs $100,000.
The Government also agreed to address the Tauranga bridge's status as a no-toll, fully-funded state highway, which Mr Peters said would cost about $11 million a year.

The Greens' wins were an energy-efficiency initiative including promotion of solar panels on homes, and a "Buy Kiwi Made" campaign. Greens co-leader Rod Donald spoke before the election of the campaign costing $15 million.

On the figures available, the cost so far of NZ First's policy wins is about $190 million a year.

In the context of overall Government spending, Labour is getting off cheaply. In the May Budget it set $1.9 billion a year aside in each of the next three years for additional spending.

Labour's own election pledges dwarf those of the smaller parties.

Its two biggest items are expanding Working for Families, which will eventually cost more than $400 million a year, and axing interest on student loans, which it says will cost $100 million initially, rising to $300 million a year.

The deals between Labour and NZ First and United Future also appear to herald a return to pork-barrel politics with promises by Labour to address road projects in the the two smaller party leaders' regions.

Mr Peters got the promise on Tauranga's bridge, while United Future leader Peter Dunne got an undertaking government funding for Wellington roading programmes might be used for the controversial Transmission Gully project.

Policy price tags

NZ First

* Superannuation rise: $80m

* 1000 extra police: $100m

* Making Tauranga bridge a full state highway: $11m

Greens

* Buy Kiwi Made campaign: possibly $15m

* Enhanced energy efficiency programmes including solar panels: ?