Robertson to announce date for pre-Christmas fiscal plan on Friday

Monday 27th November 2017

Finance Minister Grant Robertson will use a major speech in Auckland on Friday to announce the date of the pre-Christmas fiscal update and Budget Policy Statement, cementing in place the timetable for achieving key elements of the new government's 'first 100 days' plan.

While the government is tight-lipped about how far the statement will go beyond the usual half-year update, it is not expected to be a full mini-Budget with major, previously unannounced measures.

However, it does appear likely that the government is building a narrative intended to acknowledge the existence of a gap between its spending promises and its ability to fund them, and to blame those shortfalls to the greatest possible extent on the previous government.

The finance minister in the previous government, Steven Joyce, pursued the accusation that Labour had a "fiscal hole" in its Budget projections over the next four financial years that could be as large as $11.7 billion.

Labour vehemently disputed that charge, but has begun talking up its discovery of major capital expenditure delays it has discovered in areas such as health and education since taking office a month ago.

Prime Minister Jacinda Ardern also confirmed the government will shortly introduce legislation to abolish the National-led government's April 1 2018 income tax cuts and family welfare and accommodation supplement payments in favour of its own 'families package', which will target tax relief through the Working for Families to low income households rather than distribute tax cuts across all income levels.

The updates are generally delivered on a Thursday, making Dec. 14 or Dec. 21, the final sitting day for Parliament this year, the most likely dates for the announcement.

Ardern said the BPS would "show our investment and spending plans are responsible, affordable and in line with our Budget Responsibility Rules" announced before the election.

“The update will also spell out the renewed contribution to the New Zealand Superannuation Fund after nine years of a contribution freeze" and other legislation would be introduced shortly to implement the Best Start policy for families with new-born babies, offering support up to the age of three, and the $500 per year Winter Energy Payment benefit.

Ardern appeared at today's post-Cabinet press conference with deputy Prime Minister Winston Peters, ostensibly because the pair had just finished a meeting with the UK Secretary of State, Liam Fox, who is in Wellington for talks.

However, most media questions dwelt on the government's alleged failure to release a 38-page document detailing areas the coalition government intends to work on and which Peters had said would be released publicly by Ardern in due course.

Inquiries by Newsroom under the Official Information Act revealed that Ardern didn't regard herself as holding such a document and in today's media conference talked about extensive notes of possible areas of new policy work which would only be announced if and when the government decided to proceed with them.

Peters said the document was in fact 33 pages long and that his comments, in which he clearly talked about public release, had been quoted out of context.

Ardern said it was common for any government to have policy ideas under consideration, some of which might never advance because they were found to be unworkable or unaffordable.

(BusinessDesk)

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