It’s Budget Day. You’ll be hearing lots from us over the next few days and I hope many of you will join our Finance Team live here on Red Alert tonight at 8.30 pm.
Most New Zealanders already understand that a Budget that (at best) delivers only marginal gain to middle and lower income earners and a whopping great windfall to the top end, is not fair. It is however, precsely what you would expect from National.
Equally important, the Budget as it has been foreshadowed will not fix the underlying problems of this economy: lack of savings, skills, innovation and exports. These are exactly the themes Labour is pushing – as reflected in todays Dominion and Herald (note the Herald got the headline wrong).
If you don’t believe me on this – just refer to Swtizerland’s IMD World Competitiveness Ranking, which shows NZ slipping back for exactly the reasons Labour has been saying.
Think about it, if the problems are insufficient savings, exports, skills and innovation, how on earth is raising GST and an income tax windfall for the wealthiest possibly going to address that?
It proves our underlying critique of this visionless National Government - they had “nine long years” to think up policies to take the country forward, to deliver on the step change they campaigned for – and so far, nothing.
Oh, so the extra spending is just reinstating what they cut last time?
Mind you, based on NACTs view that Labour overspent,some of the cuts be justified – 50% increase from 2005 or whenever Bill English said seems grossly excessive considering that it seemed to translate into a huge increase in the number of public servants employed with a 6 fold increase in those earning more than $100k by 2007/2008…
Yes I would love it if our respected MPs displayed more good sportsmanship – admitting when they were wrong & giving credit where it was due.
I quite surprised by the ferocity of Phil Goff’s counter speech as to my untrained it seemed like a good, fair package & rather than making cuts, sort to correct some wrongs including increasing spending in R & D.
Must go or my husband will fire me!
Tracey, it’s not tax nuetral – another broken promise.
Despite gaining money from the depreciation allowance change as well as the GST increase – there is still a $460M pa tax deficit from the “tax nuetral” changes.
And that does not include a full year cost odf the company tax cut.
@Tracey 3.17 – Good point!
“last year the Govt cut the amount they spent on teacher costs, it’s been reinstated by this announcement. Admission of a boo-boo perhaps” – Now there’s a shocker!
Woah – the live coverage isn’t what I’m hearing through my computer!
Rebecca the R and D moves are of significantly less value than Labour’s tax credits and Fast Forward programme. The major flaw is having to apply for money (which limits the total amount involved and delays progress) – rather than just doing it and then claiming the tax credit. Their approach really cuts out smaller companies and thus new start-ups – increasing their financial risk.
One last thing before I take off:
This link on Stuff is a great way to compare blue vs red in terms of the 2008 budget vs 2010…quite interesting
http://www.stuff.co.nz/business/budget-2010/budget-2010-multimedia
What a great budget for all. (Until I read the small print).
For now we will see for Labour to succeed a complete strategy what values Lab holds dear, what the constituency values, if Phil is an extremely competient politician that can evolve into a leader, how good is his strategy team and if senior Lab politicians have what is needed for this country to progress. For if any of these are lacking then there could be a few less MP’s than today representing Lab.
And finally that pork barrel politics that was evident in the last few elections, I do not think will succeed in winning the 2011 or 2014 elections.
We will need a vision, the follow up plan and how this will be implemented and what the costs are and where they will be funded from. i.e. A compreshensive manifesto.
This is a challange but if you succeed there are the spoils, if there is failure will we have 5 Rugby World Cups to know what that is like. But the world will still be there is 2014 to implement plans that benefit the country.
David. heard you on stream (delayed as I forgot the time) IGreat idea, it was for me radio without pictures not sure what happened there. Also the sound was like having 2 sound systems on at once and youg et the doubling up effect. I am sure with this idea continuing these issues be they caused by me or just initial issues will be sorted out. o-)