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

 

$11.7b hole in Labour's fiscal numbers

$11.7b hole in Labour's fiscal numbers

The Labour Party has an $11.7 billion hole in its fiscal plan that blows its debt out and breaks its own budget responsibility pledge, National’s Finance spokesperson Steven Joyce says.

"These are significant errors that raise questions about Labour's whole spending approach and their fiscal competence," Mr Joyce says. "Their spending numbers were already high and this makes them a lot worse.

“Labour’s recipe would lead to more debt, higher interest rates and a slower economy – not to mention the host of extra and unexplained taxes they would impose on households and businesses.

“All of this would cost jobs and eat into family budgets.”

The five errors are as follows, over four years:

• Failing to roll out their operating allowances for each year into subsequent years ($9.4 billion).

• Failing to allow for any increase in paid parental leave in their Family Incomes package despite saying they have included it ($567 million).

• Counting additional BEPs multinational tax revenue when Treasury has already counted it in the PREFU update ($902 million).

• Only including costs of their Family Package from 1 July 2018 when they said it would begin on 1 April 2018 ($289 million).

• Further finance costs associated with extra borrowing ($580 million).

“The biggest error is their failure to continue each year’s operating allowances for additional expenditure into subsequent years. When operating expenditure is added, for example an increase in wages for police, that expenditure continues into following years. Labour’s operating allowances don’t allow for that.

"Once corrected, Labour’s spending plans result in net debt increasing by nearly $20 billion from current levels of $60.6 billion to $79.3 billion over four years.

"Labour was already increasing debt by $7 billion from current levels by their own admission, but this takes it to nearly $20 billion. This would be an irresponsible level of debt increase at this stage of the economic cycle. New Zealand should be reducing debt now, not increasing it, so we are ready for the next rainy day.

"They also would break their fiscal responsibility rules as net debt would not fall below 23.5 per cent of GDP by the end of the forecast period, in fact it would be higher than it is now, and get nowhere near their own plan to reduce debt to 20 per cent of GDP by 2022.

“That level of spending and increased debt can only lead to one thing – higher interest rates for Kiwi mortgage holders.

"Labour’s true spending plans as revealed in this analysis confirms that behind the leadership change we are dealing with the same old irresponsible tax, borrow and spend Labour Party.

“Labour needs to withdraw its fiscal plan and re-work its proposals.”

Labours_Real_Fiscal_Plan_Tables.pdf

Summary_of_Labours_errors_and_graphs.pdf


ENDS


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Election Day Results


2017 General Election - Preliminary Count

National won 46% of the vote with Labour on 35.8%.

NZ First won 7.5%, with the Greens on 5.8%.

ACT held on to Epsom, but failed to get more MPs.

The Maori Party were wiped out of Parliament.

There are still special votes to be counted, but clearly National is in the box seat to form the next Government.

The Greens can not contemplate a deal with National.

So, Winston Peters will have to make a choice and could back National or a combined Labour/Green coalition.

The most likely result is National and NZ First will reach some sort of deal to form the next government.


Election Night Results

Advance Voting Statistics

General Election Information: Voters - Who, When And Where

 
 

From The Hood: The Campaign Strategist’s Lament

"This election is a chance to really work the record of what nine years of National-led government has done to improve the country for everyone. Or will do. Another three years, maybe six. Thirty-three years, tops. You don’t want to risk that, do you? More>>

PSA Report: National Gets An ‘F’ For Health Funding

"Seeing National’s record on health collected in one place is quite sobering - it’s clear that underfunding is having dire consequences on both patients and staff, who are having to do more than ever with less," says Glenn Barclay, PSA national secretary. More>>

ALSO:

Children With Disabilities: Education Crisis Unaddressed

In 2008 IHC lodged its complaint against the on-going failure of New Zealand Governments and the Ministry of Education to ensure that disabled children access a quality education on an equal basis to others in New Zealand schools. More>>

Gordon Campbell: Ten Reasons For Not Voting National

if anyone you know is thinking of voting National in Saturday’s election, there’s still time for an intervention. You owe it to your friends and relations to intercede. Because there’s plenty of evidence on National’s mediocre-to-awful track record over its nine years in power. We can’t afford another three years of drift. More>>

ALSO:

Suffrage Day: PSA National Secretaries Vote For Equal Pay

PSA national secretaries Erin Polaczuk and Glenn Barclay are advance voting for the 2017 election alongside their daughters, with equal pay and fairness in mind on the 124th anniversary of women’s suffrage in New Zealand. More>>

ALSO:

Charge Protests: Dairy Farms Use Same Amount Of Water As 60 Million People

Using Dairy NZ numbers, economist Peter Fraser and agricultural consultant Dr Alison Dewes calculate the water consumption of New Zealand dairy farms is equivalent to the residential use of 60 million people. More>>

ALSO:

Greenpeace: Labour, Greens Commit To Canterbury Democracy

Labour MP Megan Woods is promising to return Canterbury’s regional council, ECan, to a democratically elected council. It follows a mass day-long occupation of the ECan building by local water activists calling for the restoration of democracy and urgent action to save rivers. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election
 
 
 
  • PublicAddress
  • Pundit
  • Kiwiblog