Robertson calls on ministers to be prudent

Grant Robertson
Grant Robertson
Finance Minister Grant Robertson is following in the tried and true footsteps of previous finance ministers by asking his Cabinet colleagues to remain careful about money.

In a speech yesterday to the Auckland Chamber of Commerce, Mr Robertson said the Government could provide public services New Zealanders wanted and deserved, and build a strong economy.

That would mean doing some things differently and investing more now to get the payoff for New Zealand over the long term.

``We can pay for the plans we have made and the policies in the agreement we have signed. But there are still other cost pressures to meet and programmes to deliver.''

Mr Robertson had asked his ministerial colleagues to reassess current programmes to ensure they matched the Government's priorities and were value for money.

Any such changes in priorities would be reinvested to meet the cost pressures the Government faced.

The Government could make investments while not having to increase taxes, he said.

It did this by having different priorities to the previous government - reversing the proposed tax cuts and giving itself two extra years to meet the Government's debt reduction target.

National Party finance spokesman and former finance minister Steven Joyce said this was the week average wage workers would lose $1060.

The Government was set to rush through legislation at the end of the week to remove the $1060 from pay packets in the ``vain hope'' no-one would notice.

``It is deeply ironic the first significant act of a Government with the stated aspirations of lifting workers' wages is to reduce what workers will earn next year.''

As Parliament marked time for the last fortnight it was quite obvious Labour had been delaying the debate as long as possible and hoping the public missed the changes completely in the pre-Christmas rush, he said.

The Government was saying it would not start debating the new law until Thursday, at which point it would be rammed through cynically, under urgency.

``We need to remember both New Zealand First and the Greens voted in support of the tax package seven months ago Labour now wants to unwind. They also didn't campaign on removing it.''

NZ First would have a lot of explaining to do to its voter base when the MPs voted to remove $676 a year from superannuitants and veterans from April 1, Mr Joyce said.

In his speech, Mr Robertson said for the Government to be able to afford the policies needed to achieve higher living standards, it must remain fiscally responsible.

It went without saying a government presiding over high deficits, increasing debt, or a shrinking economy, would not provide the quality public services New Zealanders wanted and deserved.

That was why the Government had committed to its Budget Responsibility Rules.

On Thursday, the Treasury will release its half-year economic and fiscal update and Mr Robertson will release the Budget policy statement (BPS).

The Government has been criticised for being slow in meeting some of its 100-day plan but Mr Robertson said more was coming.

The next big step was the introduction of the Families Package, one of the major initiatives for the Government.

``We are committed to lifting children out of poverty at a faster rate than the previous government.''

Working for Families would be boosted and the Government would introduce the Best Start payment for children in the first three years of life.

A winter energy payment for superannuitants and those receiving a main benefit would be established and the Independent Earner Tax Credit.

 

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