Greens to produce bigger surpluses and repay debt sooner
Greens to produce bigger surpluses and repay debt sooner than National
The Green Party has released its full fiscal costings for their 2014 election priorities which show they will deliver larger surpluses and pay down debt sooner than National.
The Party’s full costings have been analysed by independent research company Infometrics.
Infometrics have found that not only will the Green Party run bigger surpluses than National, it will do this while also taking significant steps to advance their election priorities: reducing child poverty, making rivers and lakes safe enough to swim in again, and creating a smarter, greener economy.
The key points in the Green Party's fiscal plan are:
1. Run surpluses $2.2 billion larger than National by 2017/18;
2. Gross Government Debt will be $6.6 billion dollars lower than National by 2017/18;
3. Investing $3.8 billion over the next three years to maintain real levels of spending in health, education, and environmental protection to reverse National’s major cuts to these areas;
4. Use new savings and revenues to address growing inequality and lift hundreds of thousands of children out of poverty by 2017 with a $3.4 billion package of new social policies;
5. Use new savings and revenues to make rivers and lakes clean enough to swim in again with a $218 million package of new environment policies;
6. Use new savings and revenues to invest $1.4 billion into kick-starting the transition to a smarter greener innovation economy;
7. Deliver modest income tax cuts to 97 percent of all New Zealand taxpayers through a climate tax cut, by making the first $2,000 of income tax free;
8. Cut the company tax rate from 28 percent to 27 percent;
9. Increase the top marginal income tax rate to 40 percent for all income over $140,000, with a matching increase in the trust tax rate;
10. A further $2 billion worth of initiatives over three years to be announced before September 20.
“We have produced a fiscally responsible plan that will build a smarter greener economy that really works for all New Zealanders,” said Green Party Co-leader Dr Russel Norman.
“The Green Party will run bigger surpluses than National and Labour, enabling us to pay down debt faster while increasing spending in pressing priority areas.
“We are being responsible. We plan to restrain spending below the PREFU operating allowance for additional spending while also raising some new revenues.
“As a result of our fiscal prudence, we will return to surplus more strongly than National.
“A Green Government is committed to living within our means — running surpluses and paying down debt — but we will also ensure that the government works to clean up our environment, alleviate child poverty, and drive the transition to a smarter, greener economy.
“The Green Party budget will be more fiscally robust than National’s, but it will also be more responsible by lifting investment in our people and our environment and not leaving New Zealand with a commodities-based economy.
“National’s three-year Budget projections include $3.8 billion of real cuts to health, education and environmental protection. In Government, the Green Party will reverse National’s cuts and maintain real levels of funding to these sectors to protect against inflation and ensure vital services are not undermined.
“By raising additional revenue, we have the space to make crucial investments in our economy.
“Our $3.4 billion investment in social spending will deliver free health care for all children up to 18, 20 hours free ECE for two-year-olds, insulate 200,000 homes, and will significantly reduce the number of children growing up in poverty in New Zealand.
“Our reprioritisation of spending within the National Land Transport Fund will lead to a sustainable transport transformation with a focus on trains, buses, walking and cycling ahead of expensive uneconomic new motorways. At the same time we will increase regional transport funding by 50 percent after years of neglect by National.
“We will also fund free off-peak public transport for all students and apprentices through savings in the National Land Transport Fund.
“Our $218 million investment in our environment will ensure our rivers are clean enough to swim in again.
“Our plan to build a smarter, more innovative economy has as its centrepiece an additional $1.4 billion of government investment in R&D and the establishment of the Green Investment Bank.
“The Green Party is the only major party going into this election offering 97 percent of New Zealand households and all businesses a tax cut.
“Three more years of National will see $3.8 billion of spending cuts to health, education and environment spending. National’s cuts will be felt strongly by our kids, the sick, and our rivers.
“This is the first time the Green Party has produced a fully costed and independently audited budget. It shows that we are ready to govern in a fiscally responsible way to build a smarter greener economy that works for all New Zealanders and our environment.”
Link to the Green Party fiscals paper, as well as the Infometrics and BERL reports: https://www.greens.org.nz/policy/smarter-economy/fiscals