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


Many questions unanswered about cost of Labour’s promises

Hon Steven Joyce

Associate Minister of Finance

7 July 2014 Media Statement
Many questions unanswered about cost of Labour’s promises

Two and a half months out from this year’s election and already Labour cannot answer basic questions about the details and fiscal costs of its expensive early promises, Associate Finance Minister Steven Joyce says.

“David Cunliffe, David Parker and Chris Hipkins had a ‘hey Clint’ moment on TV last night, when all three of them failed to answer a simple question about the total cost of their grab-bag of education announcements,” Mr Joyce says.

“Labour has rejected having a Treasury analyst in its office, and it really is showing.”

Talking to media yesterday after announcing it would spend $403 million over four years to employ more teachers, neither David Cunliffe, nor David Parker nor Chris Hipkins could do the simple maths on how much their other promises would cost.

“That’s because their numbers don’t add up and their claims are misleading,” Mr Joyce says.

“For a start, the Government currently funds secondary schools for an average 20 students per classroom, well below Labour’s ‘new’ target of 23 students per classroom.

“When it comes to their costings, Labour’s figures include only the cost of the extra teachers’ salaries. They need to come clean on what the total costs would be including ACC, training, support superannuation, and all the other overheads involved in supporting more teachers.”

Mr Joyce says this is not the first time in recent days that Labour has undercooked its costings and exaggerated its promises to New Zealanders.

“Last week their press release clearly said they were going to end voluntary school donations – yet they put up only half the money needed to cover existing donations and none of the school activity fees parents pay.

“And on Saturday they claimed they would provide every student between years five and 13 with a digital device worth $600 by providing a $100 subsidy and having parents pay $3.50 a week for 18 months. This will be news to Labour, but this adds up to only $373 per device.

“And just to top it all off, David Cunliffe yesterday confirmed he would look at buying back shares in mixed ownership model companies – even though he’s committed to spend all the money raised by the share offer programme and then some.

“After nearly six years in opposition, Labour has learned nothing about responsible economic and fiscal management. They really do need to start showing New Zealanders the money,” Mr Joyce says. “Labour 2014 is already starting to look a lot like the 2011 version, only trickier.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Minister of Finance: Plan Shows $100 Billion Infrastructure Projects

Finance Minister Bill English has today launched the Government’s Ten Year Capital Intentions Plan (CIP) which shows a pipeline of $100.9 billion worth of infrastructure projects over the next decade. More>>


Werewolf: Safe Landings Gordon Campbell on the safety challenge to the Wellington runway extension.

The safety-related legal challenge revolves around the size of the 90 metre long Runway End Safety Area (RESA) being proposed for the runway extension. More>>


Environment Commissioner: We Need To Work Together On Climate Change And Farming

“The debate around agricultural emissions and the ETS has been polarised for too long,” said the Commissioner. “But the ETS is not the only way forward – there are other things that can be done.” More>>


NZ Super Fund: Seeking To Put A Market Price On Climate Change

Oct. 19 (BusinessDesk) - The New Zealand Superannuation Fund says it will devise a set of rules to assess investment winners and losers under climate change, a strategy that could rule out fossil fuels or producers such as current portfolio member Exxon ... More>>


Rejuvenation: Parata Will Not Contest 2017 Election

Education Minister and National List MP Hekia Parata has today announced that she will not be contesting the next election. She advised the Prime Minister of her decision earlier this year. More>>

Prisons Grow: Government Approves Plans For Increased Prison Capacity

Despite significant progress in reducing crime the number of prisoners has increased faster than projected. This is because the proportion of offenders charged with serious crimes has risen, meaning more people are being remanded in custody and serving more of their sentences in prison. More>>


Gordon Campbell: On Plastic Bag Activism, And Street Harassment

Amusing to see the Act Party experiencing another outbreak of young fogey-ism. What has aroused the ire of Act Leader David Seymour this time is the introduction of a Greens private members bill to the ballot process, calling for a 15 cents levy on plastic bags to reduce pollution. More>>


Unclear Weapons: US Navy Ship Cleared To Visit NZ For Navy's 75th

United States Navy ship, the USS Sampson, has been given clearance to visit New Zealand next month by Prime Minister John Key... “The process for considering the visit by the USS Sampson is the same as that used for all ships attending the International Naval Review." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news