Budget Day!
I’ve been told that Budget Day is very much a politician’s “Rex Manning Day” and so, in the sprit of Budget Day I have provided a brief outline on what Cullen’s ninth Budget contains and then commentary on it (as there is much to be said).
$11.7 billion Tax Cuts, Families Package
Budget 2008 delivers a three-year package of personal tax cuts for all workers, using cuts in tax rates and lifts in thresholds, costing $10.6 billion. Working for Families gets a further$1.1 billion while after-tax payments for NZ Superannuation rise for all superanniutants.
$500 million for Broadband
Cunliffe has (finally) released his broadband policy and it’s in typical Labour form. The Broadband Investment Fund will allot $500 million as a five-year ‘down payment’ on fast broadband to the home.
Housing Boost
Wellington City Council gets $220 million over 10-15 years to modernise its affordable rental housing stock. Auckland gets $37.8 million over three years for the Hobsonville development and gets an additional $5.1 million for operational funding.
Transport
In addition to the ferry and railway buy backs earlier this month, there is an additional $33.5 million for the first stages of the Canterbury Transport Regional Implementation Plan and $30 million over three years for Northland and Tairawhiti. That takes the total spending on transport to about $10 billion over four years.
Students
Tertiary education institutes will get an additional $155 million (covering approx 17 000 students) over four years. The Government has decided to lift the parental income threshold for student allowance by a measly 10% (which is pitiful) affecting about 12 000 students (which is also pitiful). Also, as part of UF-Labour agreement, there has also been a drop in the age limit for students wanting student allowance to 24 which will affect about 5000 students. Student allowances will only increase by an extra $5 a week – so don’t spend it all at once. I know AUSA is annoyed at this and I’m sure other student bodies will be too. It’s next to nothing and why bother with lowering the age limit by one year when, if you apply the same logic, it should be moved to 21.
Health
An extra $3 billion for health over four years, including $164 million for the cervical cancer vaccine and $160 million for extra elective surgeries. The DHBs will be loving the Govt right now, as their pockets bulge with even more money they can waste.
Infrastructure
Operating OnTrack and maintaining the Cullen’s new rail network will cost nearly $100 million as part of a $170 million plus boost to infrastructure. There have also been increases in funding for shipping initiatives.
I was hoping for a big, knock-your-socks-off Budget from Cullen, but all we got was a dreary, hypocritical Budget full of rhetoric and empty promises. Cullen has (surprise, surprise) funded tax cuts which was expected but hypocritical nonetheless. He has gone against every bone in his body in order to give out tax cuts and they’re pathetic to say the least. He has moved the date of implementation to 1 October of this year, just so that there will be enough time for voters to have a bit of extra tax relief in their pockets before they approach the ballot. Its political manoeuvring and while political scientists may be drooling at its simplicity, it doesn’t do much for New Zealanders.
It’s probably one of the most political Budgets I’ve ever seen. Its also hypocritical that for 8 years Cullen has argued against tax cuts all the while sitting on a huge surplus, and then miraculously decides its time for tax cuts when the surplus is almost all up. It’s odd and not nearly as cunning as one might expect from the might Cullen.
I was expecting something more from Cullen as there are no big initiatives that will help Labour in November (which is when the election will be), even though Labour will pretend that there are. No voters will be brought over by this, not even the swingers. Labour needed a biggie and they got a flopper.
This truly was Cullen’s valedictory Budget (and thank God for that!)
A change of government won’t come soon enough.