Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 


Surplus a marker along New Zealand’s economic journey

Surplus a marker along New Zealand’s economic journey

What’s more important is the speed and direction of travel

Finance Minister Bill English announced his sixth Budget to the nation today, delivering an anticipated surplus of $372m. Deloitte CEO Thomas Pippos says the projections for increasing surpluses in future years are also an important part of the story.

“The lens through which Budget 2014 should be viewed is not about the anticipated surplus but about the journey, including the speed and direction of economic travel over that wider period of time. Where the economy has come from and where is it going. Will it enable us to provide for the types of lifestyles we aspire to in New Zealand – more widely, to win against the others that we are competing against?” says Mr Pippos

Through that lens, Budget 2014 should be viewed as a success or a relief, even by the most uncharitable.

“The size of the surplus trivialises a journey that has taken six years to get to and suggests that we have arrived at a destination. It’s an abstract that without context is largely meaningless. It is mischievous to look at it in any other way. Similarly mischievous is an undue focus on historic variances to forecasts. Forecasts are no more than best guesses that are incapable, at least as far as revenue is concerned, of surgical precision.”

Targeted expenditure is the theme. Further investment in paid parental leave and the parental tax credit are key examples of this.

“This is a good place to target additional spending as it goes to productivity, workforce participation and nurturing the growth of the next generation of New Zealanders,” says Mr Pippos.

Juxtapose Australia for context. Still the lucky country in many respects but over the same period they are looking at record deficits, tax increases, and expenditure cuts, to curtail (not reverse) the $50 billion deficit announced on Tuesday.

“Budget 2014 may not win the Government the re-election but it certainly won’t lose it for them either,” concludes Mr Pippos.

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

 

Departure Speech: Governor-General’s State Farewell Luncheon

"...Unfortunately I was unable to get to the Antarctic, the Chatham Islands and the Kermadecs. A dicky heart thwarted our travel to the Antarctic; and even though I volunteered to parachute into the Kermadecs to join the Young Blake expedition, time, commitments and officials frustrated my plans to visit the Kermadecs and Chathams." More>>

ALSO:

New Research: Most Homeless People Working Or Studying

“The cost of housing has been rising without corresponding increases in income, whilst the number of state houses per capita has been in decline. Many low-income people are missing out on housing, whether we recognise them as ‘homeless’ or not. More>>

ALSO:

Post-Traynor: New Offender Info Sharing Plan

“This Bill delivers on that step-change by moving away from name-based records held by individual agencies to a shared, anchor identity based on unalterable information, such as fingerprints and facial recognition. It also gives agencies access to the drivers’ licence photo database and birth, death and marriages information." More>>

  • NZ Law Foundation - New $2M fund for research on information challenges
  • Littoral: New Ship To Deliver Enhanced Naval Capability

    Defence Minister Gerry Brownlee says the Government has approved a Ministry of Defence and New Zealand Defence Force recommendation to request tenders for a new naval ship to support littoral operations. More>>

    July:

    After King's Labour Snub: Māori Party And Kiingitanga To Work Together

    Māori Party Co-leaders Te Ururoa Flavell and Marama Fox met with Kiingitanga representatives in Wellington yesterday to discuss working together on key issues for the betterment of Māori. More>>

    ALSO:

    Waitangi Claim On Rehabilitation: The 'Justus' System For Māori Not Good Enough

    Closing statements at the Waitangi Tribunal case against Corrections called for immediate steps and a comprehensive review to address the high rate of Māori reoffending. More>>

    ALSO:

    Advice: PM Sets Rules For Ministers' Treatment Of Public Servants

    Prime Minister John Key has laid down the law about the way ministers and public servants should interact, saying ministers may not always like the advice they receive, but they must listen to it carefully, respectfully and professionally. More>>

    Gordon Campbell: On The Funding Changes In Special Needs Education, And Uber

    The plan to strip out the educational support for older “special needs” children in order to meet the existing shortfall in funding for special needs in early childhood education is so miserly and relentlessly stupid as to defy belief… More>>

    SPECIAL EDUCATION (& More):

    Online Learning Plans:

    Get More From Scoop

     

    LATEST HEADLINES

     
     
     
     
     
     
     
     
     
    Politics
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news