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Labour must explain where the money is


New Zealand National Party

Media Release


5 September 2017


Labour must explain where the money is

The Labour Party must explain where the money is in its fiscal plan for increases in government expenditure outside education and health, National Party Finance spokesman Steven Joyce says.

"In maintaining the fiction yesterday that their operating allowances are correct, Labour would be left with basically no allocation for increased spending in any area of government outside of health and education for two budgets. That’s literally a two year budget freeze for most of the Government,” Mr Joyce says.

"That’s no new money for wage increases for police, social workers and DOC conservation rangers, for pay equity settlements, for the Ministry of Vulnerable Children, and no money for science and innovation, defence, or law and order.

"That is simply not credible. Anyone with any experience knows that there is a myriad of investments governments have to make every year to provide public services for New Zealanders and keep the country running.

“In Budget 2017 the current government voted new spending of $842 million per annum or $3.7 billion over four years outside health and education plus the care and support workers settlement of $1.54 billion over four years, while in Budget 16 those numbers were $1.1 billion and $3.7 billion.

“On average around half of the new spend a government allocates each year is outside of education and health.

“Labour is saying that in Budget 18 there would be no new money for anything else besides education and health and zero again in Budget 19. Then they say they are only putting aside $590 million for Budget 20. That's a multi-billion hole each year.

“This is not semantics or a definitional issue. This is real money which Kiwis would have to front up for in terms of higher taxes or increased debt and interest rates.

“So Labour either have their budget allowances wrong or they've simply left out billions and billions of dollars of government spending in future years from their plan.

“One of these things must be true and either way they have an $11.7 billion fiscal hole. Their plan is fatally flawed and would lead to billions and billions of extra taxes or debt.”

ends

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