The latest Crown Accounts show that recovery is underway. Bill English should be frank with Kiwis that the books are improving, and ensure that he does not talk down recovery as cover for a tough Budget.
The government’s books are significantly improving and now the presure is on Bill English to ensure all Kiwis benefit from the recovery.
Kiwis who have battled through the recession need a credible long term for them to feel like they’re not struggling to pay the bills at the end of the week.
What they don’t need is for prices of groceries, power and services to rise to pay for John Key’s GST money-go-round.
A recurring theme in the Crown Accounts seems to be the investments in the New Zealand Super Fund and ACC both tracked above forecast, and NZSF is now worth $2.5b more than when the government decided to suspend contributions for a decade.
Does anyone now think National’s “decade of deferrals” of payments to the SuperFund at the last Budget was a clever idea
With these improved forecasts, Labour challenges John Key and Bill English to resume payments into the SuperFund.
Gross debt was $2.9 billion lower than forecast, and continues Labour’s legacy of low debt, with gross Crown debt the third lowest in the OECD.
Crucially the operating deficit was $1.4b lower than forecast, now only $630 million. While still significant, this closes the operating gap by about 70% and shows drastic reductions in services are not justified in the 2010 Budget.
New Zealanders have gone without during the recession. The improvement in the Crown accounts should provide comfort that there are better times ahead.
It is essential that all Kiwis share in the recovery and that the government not talk the recovery down as pretext for a tax-cut driven Budget in 2010.
“The latest Crown Accounts show that recovery is underway. Bill English should be frank with Kiwis that the books are improving, and ensure that he does not talk down recovery as cover for a tough Budget.”
You are right – he should just throw caution to the wind and look at this as a total recovery. No reason to be cautious and Im sure you know better than he does that there is no risk at all of a reverse of fortunes over the next few periods.
Until the government books are in surplus again the Finance Minister needs to deliver tough budgets. After a decade of “shop till you drop” policies, National are now coming along to pay the credit card bill left by Labour. The tax infrastructure is broken and the tax base needs to be broadened to more even share the burden of tax. The 10% paying 75% of the tax is clearly unsustainable. Improving crown accounts are a step in the right direction but need to continue – and the way to do that is as noted above freeze the funding whereever possible including Radio NZ (they are being so precious it makes me laugh).
I think the continuing strong support of the National Party and Johnn Key is a testament that the country know they have got it right. Long may they reign!
@Monty I use to read your comments because i thought they were considered and the pints you made were worth thoughtful and considering. No longer.
David, while I agree that the recession may not be biting as hard as expected at the moment, last night my astute friend was scaring me with tales of how badly our current $250 million a WEEK in borrowing is going to accumulate and whack us in 3-5 years. While not ’savage’ I am looking forward to a prudent budget.
Sorry for typing errors… should read, used to .. and points made were worth thought and consideration
Monty, respectfully, please check your facts. Labour left National a legacy of historically low Crown debt: net debt zero for the first time in a century; gross debt at half the level bequeathed by the former National Govt.
Oh, and with it higher average growth,record low unemployment and robust development around the regions.
Was it all perfect? No. We didn’t nail the housing bubble (nor did any other western govt) and we had a slow bleed on the external account that still needs fixing.
But Monty, your arguments would be better based on fact.
David what about the 1 billion shortfall in ACC
I think inflation is going to big in a couple of years here, Australia has lifted their central bank rates and inflation should be a lot lower over the ditch, the brain drain will hit overtime if we start hitting 6%+ and Aussie is still at 2% – 3%…
Also a good reason to open an account in Aussie and dump savings over there methinks…
Someone is going to have to question English about whether the $250 million borrowing a week” figure is becoming a little dated.
Is he including infrastructure borrowing, so he can suggest major spending cuts are required to balance the budget – of course with the later intent to declare a surplus (after spending cuts) to justify tax cuts?
What is it
1. the spending cuts are not required, they are just the choice of National and the top rate tax cut is affordable
2. there is a major budget deficit problem and cutting the top rate at a cost of $1B a year is irresponsible.
An honest government would declare waht one it is, rather than use one line to cut spending and another to cut the top rate of tax.
You’re not really worried about NZers going without eh? Labour wouldn’t be having the taxpayer pay for its Priscilla bus if it was worried.
Monty, didnt National spend the last few years railing against Labour for NOT spending, now you accuse Labour of spending like crazed shoppers?
Bea – isn’t a strong and challenging Opposition important to hold the governing party’s feet tot he fire? I may be doing you a disservice, did you also object at all the money Brash and Key spent opposing Labour? Hide intends spending the next year around the country showing people how good Act is… that’s on a Ministerial salary.
@Monty Pleaes justify your figure of 10% paying 75% of taxes or stop using it.
@Sideoil please define what you mean about a 1 billion dollar shortfall in ACC or stop using it.
It amazes me how many kiwis listen to marketers spin and then beleive it. you must remember that the rubbish that you spout on about is actualy hurting some people in NZ. They do live from day to day, choosing weather to buy food, clothing or visit doctors. Everytime you use a figure that you know to be false or misinterpreted it gives validity to take money away from those who cant afford to loose anymore. Remember they are New Zealanders just like you and have the same rights as you.
@ Monty – Simple solution, maybe the 10% could pay higher wages to the rest, who would then pay a higher %PAYE, along with the lower (but still reasonable) profits the 10% would pay less in real and % terms.
P.S. Since a large part of our country is owned by forigners, does this then suggest that these companies are not paying enough?
Bravo Waterboy – Nail meet Head!
National has cleverly practiced and continues to practice the known PR method of repeating a falsehood over and over, as often as possible. Soon people will not only believe it is fact, they will help you spread it.
Tracey, its not a strong and challenging opposition. Labour is not promising to axe GST or even bring it back to 12.5% should we vote for it in the next election.
It isn’t promising anything. I would prefer that that $30,000 of taxpayers’ money go on something more productive.
It is simply hypocritical to go on a junket specifically to tell people how they’re struggling to pay the bills at the end of the week, and have those same people pay for the junket.
And yes, I’m happy to complain about any politician on the right as well who wastes my money. In the last two elections I voted for 4 different parties.
At least Labour aren’t promising to INCREASE GST!!!
Good on them for getting out there on their big red bus and telling the world their message!! 
Unfortunately Labour’s message seems “We’re so absolutely opposed to an increase in GST that, if re-elected, we will NOT repeal it”
Fair comment Bea. Sadly Opposition Parties rarely promise anything until they really have to… and that is about 3 months before an election and then only if pushed. And then they dont necessarily feel compelled to carry it out.
Just wait and see, they will reveal what they have instore for us when the time is right.
It’s not the right time for Labour to be releasing policy. 