Politics and Prose

The grim-looking PREFU revealed earlier this month that each fiscal year through to 2012-13, only $1.75 billion has been allowed in the books for new operating expenditure.  Labour has spent this and more besides.

This is a list of policies and the related cost released by Labour since Helen Clark declared no further spending would occur. 

In the NZ Herald,
Clark said that there would be no more significant spending promises from Labour for the rest of the campaign.

“We have judged it not prudent at this present time to make those sort of commitments.”

But alas the Pork-o-meter continues to bulge.  None of these initiatives have been accounted for, either in Budget 2008 or the PREFU.  Labour has also refused to declare how it expects to pay for these.

• $360 000 grant to the Bay of Plenty’s aquaculture, food and beverage, and marine industries (22 Oct)
• $25 million to New Zealand Innovation Centre (21 Oct)
• $3.5 million to the Electricity Commission for its promotion of energy efficient light bulbs (22 Oct)
• $7.6 million boost to the training opportunities programme funding “in light of the changing economic circumstances”.
• $13 million injection “to jump-start the reform of the aged care sector”.
• $47 million funding injection for the ambulance sector over the next five years
• $50 million for redundancy Job Search Allowance (30 Oct)
• $91.375 million funding package over five years to improve wages and conditions for disability support and increase accessibility to services.

Total = 237.83 million (unaccounted and un-costed)

No doubt there is more to come (will be updated as they come).

Even if one discounts these initiatives, Labour has effectively spent its entire spending allowance for the next three years.  It simply cannot afford to keep increasing spending without increasing revenue.  There is no money left in the piggy bank for Labour to keep rolling out the moolah.  Kiwiblog and other commentators are speculating about tax increases if Labour wins this election.  Oh goody.