Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Labour plus Greens equals billions more debt

Hon Steven Joyce

National Party
Campaign Chair & Associate Finance Spokesman

22 November 2011 Media Statement

Labour plus Greens equals billions more debt

National Party Associate Finance spokesman and Campaign Chair Steven Joyce says a short analysis of the Greens’ spending promises means that a Labour-Greens Government would drive New Zealand billions of dollars further into debt at the worst possible time.

"The Greens have a huge number of spending policies and none of them are costed. Some are eye-wateringly expensive. We've calculated that just nine of the Greens’ centrepiece policies would add about $25 billion to debt over the next four years, in addition to what Labour is already planning.

"Even if Labour agrees to just 25 per cent of these policies promoted by the Greens as part of a coalition deal, we would be looking at extra debt of more than $6 billion over four years, on top of the $15.6 billion that Labour is already promising to borrow. New Zealand simply can't afford a big-spending Government like that at this time. That would take the total to around $22 billion of extra borrowing.

"Taken together, the Greens and Labour policies would cost tens of thousands of jobs and massively ramp up debt."

Mr Joyce says the pricey Greens proposals include (costs over four years):
• Extending paid parental leave to 13 months = $4 billion
• Extending the 'In-Work' tax credit to beneficiaries = $1.7 billion
• Extending unemployment benefit to all students over summer = $1.6 billion
• Universal Student Allowance at the level of unemployment benefit = $4.2 billion
• Free 'wellness checks and dental check' = $3.6 billion
• Wiping one year's student debt for each year worked in New Zealand = $3 billion
• Green jobs initiatives = $3.2 billion.

And these are just a few of the Greens policies.

There would also be significant new costs for employers such as raising the minimum wage to 66 per cent of the average wage, increasing company tax to 30 per cent as part of the earthquake levy and imposing a 35-hour working week. That would cost thousands more jobs,” says Mr Joyce.

"It is clear that any Labour-Green-based government would quickly revert New Zealand to the high-spending ways of its predecessor, which ramped up government spending by 50 per cent in its last five years in office. That high spending, high debt scenario is the exact opposite of what the vulnerable world economic situation demands of New Zealand.

"Only National can provide a strong stable Government that keeps debt down and delivers on jobs. The alternative is big spending, big borrowing, and huge uncertainty. Any way you look at it - a Labour-led Government would owe our future.”

© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

New Reports: Flood Risk From Rain And Sea Under Climate Change

One report looks at what would happen when rivers are flooded by heavy rain and storms, while the other examines flooding exposure in coastal and harbour areas and how that might change with sea-level rise.

Their findings show that across the country almost 700,000 people and 411,516 buildings worth $135 billion are presently exposed to river flooding in the event of extreme weather events...

There is near certainty that the sea will rise 20-30 cm by 2040. By the end of the century, depending on whether global greenhouse gas emissions are reduced, it could rise by between 0.5 to 1.1 m, which could add an additional 116,000 people exposed to extreme coastal storm flooding. More>>



Gordon Campbell: On The Commerce Commission Fuel Report

The interim Commerce Commission report on the fuel industry will do nothing to endear the major oil companies to the New Zealand public... More>>


Emergency Govt Bill: Overriding Local Licensing For The Rugby

“It’s pretty clear some clubs are having difficulty persuading their district licensing committees to grant a special licence to extend their hours for this obviously special event, and so it makes sense for Parliament to allow clubs to meet a community desire." More>>


Leaving Contract Early: KiwiBuild Programme Losing Another Top Boss

Ms O'Sullivan began a six-month contract as head of KiwiBuild Commercial in February, but the Housing Ministry has confirmed she has resigned and will depart a month early to take up a new job. More>>


Proposed National Policy Statement: Helping Our Cities Grow Up And Out

“We need a new approach to planning that allows our cities to grow up, especially in city centres and around transport connections. We also have to allow cities to expand in a way that protects our special heritage areas, the natural environment and highly productive land." More>>


Ombudsman's Report: Ngāpuhi Elder 'Shocked' By Conditions At Ngawha Prison

A prominent Ngāpuhi elder is shocked to find inmates at Ngawha Prison are denied water and forced to relieve themselves in the exercise yard... Chief Ombudsman Peter Boshier has released a report highly critical of conditions at the Northland prison. More>>


Promises: Independent Election Policy Costing Unit A Step Closer

The creation of an entity to provide political parties with independent and non-partisan policy costings is a step closer today, according to Finance Minister Grant Robertson and Associate Finance Minister James Shaw. More>>


School's In: Primary And Intermediate Principals Accept New Offer

Primary and intermediate school principals have voted to accept a new settlement from the Ministry of Education, which includes entrenched pay parity with secondary principals. More>>


IPCA On 'Rawshark' Investigation: Multiple Police Failings In Hager Searches Confirmed

The Independent Police Conduct Authority has found that the Police's unlawful search of Nicky Hager's property in October 2014 resulted from an unwitting neglect of duty and did not amount to misconduct by any individual officer... More>>


Broadcasting Standards: Decisions On Coverage Of Mosque Attacks

The Authority upheld one of these complaints, finding that the use of extensive excerpts from the alleged attacker’s livestream video on Sky News New Zealand had the potential to cause significant distress to audiences in New Zealand, and particularly to the family and friends of victims, and the wider Muslim community. More>>




InfoPages News Channels