Budget 2020: Country in unique position to reset

Billions of dollars worth of packages and schemes have already been announced pre-Budget to cushion the immediate blow and side effects of Covid-19.

Government packages have ranged from the $500 million towards the coronavirus health response to the unprecedented $12.1 billion package to support businesses, jobs and incomes, of which $10.6b has already been used to support 1.7m employees.

Within the $12.1b package, the Government covered the wage subsidy scheme, income support package for low income New Zealanders, business tax changes and the aviation support package.

A $330m market-led scheme was also set up in collaboration with banks to restore international air freight capacity, with 56 additional weekly cargo flights from New Zealand, and more to come.

The Small Business Loan Scheme announced on May 1 will grant interest-free loans for a year up to $100,000 to small businesses to meet fixed costs while changes to insolvency and company law, announced on May 5, aim to help businesses facing insolvency remain viable.

Changes to the Resource Management Act will enable fast-track consenting to get job-rich projects like core infrastructure, housing, and environmental restoration moving quickly.

The "one-in-100-years shock to our society and economy" Covid-19 caused has meant this year's Budget will be far from business as usual, Finance Minister Grant Robertson has said.

In his pre-Budget speech, Robertson said the Budget this year was "just one staging post in our fight against, and recovery from, Covid-19".

"The Budget will set our direction for the next stages of responding and rebuilding. But Covid-19 requires far more than that. It is a tricky virus, one that keeps moving. Its impact is only just beginning to be felt in our economy.

"Our economic response to Covid-19 has to happen every day, not just on Budget Day. Just as businesses and workers are fighting every day to secure their futures, so we will keep fighting to protect lives and livelihoods. Every day, supporting New Zealanders to get through and to rebuild stronger and better."

Robertson said it was important to acknowledge things weren't perfect before Covid-19.

"Too many children were growing up without the basics, housing has been too expensive, many of our waterways are still not swimmable, our emissions have been rising, people are working harder but don't feel they are getting ahead. In other words, we are not quite the nation we like to think we are.

"There are few times in life when the clock is reset. Now is the time we should address these long-term issues. It is a privilege many countries won't have. It's not one we should squander.

"Budget 2020 gives us the chance to begin this rebuild, better and together."