17 MARCH 2016

Big Bill for Flag Change, But No One Did the Sums

New Zealand faces a Big Bill to change the flag, if the votes go that way, but the Prime Minister has no idea how much and doesn’t care, says New Zealand First.

“Mr Key sells himself as the guru on money management, Merrill Lynch style, but he has not even done the basic accounting on the flag change cost,” says New Zealand First Leader and Northland Member of Parliament Rt Hon Winston Peters.

“In fact, the Finance Minister Bill English admits they have no details.

“It’s certain the cost will balloon from $26m for the referenda to a more bloated figure if the change goes ahead,

“The Prime Minister had a whim, set off on his own magical yellow brick road dreaming of securing his legacy, and did not care one hoot about the cost. This is fiscal mismanagement – with no sign of prime ministerial caution and wisdom. Where was the Treasury analysis on this?

“The Prime Minister’s Wizard, aka the Finance Minister, didn’t do the sums either. He trotted along happy to please his boss, secretly wondering where he could get the money.

“There’ll be flags, badges, uniforms, and a whole plethora of items to change.

“Mr English won’t be able to dip into the asset sales cash, because in a few short years, he’s spent it all. Money must come from within existing baselines, Mr English has said so.

“So the government will push the Big Bill on to government departments, and they will have to cut into existing funding. But from where and when?

“That’s appalling given the Budget has been tight on them as Mr English chases a surplus mirage to create a façade of sound management of the economy.

“But the wheels are clearly falling off and the fact the government didn’t delve into the costs of a flag change before foisting the idea on the nation brings into question how much costing is being done for any other new project.

“What will the next government find when the books are opened? And what has happened to the much vaunted budget transparency and no surprises?” Mr Peters asks.

ENDS

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