National has set itself three spending rules, should it return to Government, promising to get our books in order.
Finance spokeswoman Nicola Willis revealed the party’s “Budget Responsibility Rules” at the weekend, which will prioritise a return to surplus in the 2028/29 year.
She’s also pledging to bring debt below 40% of gross domestic product (GDP) and reduce the Government’s spending to 30% of GDP.
At the same time, National has promised no new taxes on working people, small businesses, or pensioners – but hasn’t ruled out other new ones.
Taxpayers’ Union executive director Jordan Williams told The Front Page that the new rules announced contain nothing substantially different from anything we’ve seen before.
“They’re not really rules if they don’t have a consequence, and there’s no consequence.
“The very same politicians made promises three years ago around getting into surplus, around cutting spending, and actually we’re now further away from surplus.
“The Government has redefined, or Nicola Willis specifically, has invented a new measure of what surplus means, which excludes ACC deficit. So, that’s a bit of a fudge, and actually, the structural deficit is larger.
“I think that Nicola Willis has put Prime Minister Luxon in a terrible situation, where he’s having to go and clarify what no new taxes means, and this is in, this is out, this is in.
“They’re sounding a lot like Labour. And the whole shtick of the National Party was to be able to beat the tax baton against Labour: that they mean new taxes, the National Party doesn’t, and incredibly they’ve just given up that moral high ground.”
Fuel excise, an accommodation levy, and bank tax settings are possible areas where National could consider new or increased taxes, Christopher Luxon has said, but he stressed that decisions haven’t yet been made.
“I would argue that people with mortgages are almost without exception working people. But the National Party is somehow going to try to run a campaign saying a tax on banks isn’t gonna affect them,” Williams said.
“They’re gonna say that those that use hotels, because they’re talking about an accommodation levy, those people aren’t working. Really? Are they gonna exclude New Zealanders from that tax? In which case it would be very difficult to administer and wouldn’t raise much anyway.
“This is a disaster if you’re running the National Party’s campaign because ... at some level, we’re all working people.”
Meanwhile, the Act Party said it will reveal its fiscal plan in due course, which “unlike every other party” will show a return to surplus “without imposing any new taxes”.
“All taxes are ultimately paid by workers and consumers. They can say they just want to put a tax on a bank, but where do banks get their money from? From their customers,” leader David Seymour told Newstalk ZB.
Green Party co-leader Chlöe Swarbrick has said that reducing debt through cuts only increases New Zealanders’ debt and cost of living.
“Luxon’s cuts so far have resulted in higher prescription fees, higher public transport costs, higher road user charges, higher rates bills and a higher cost of living. These things make the Government’s books look better, but life harder for working people.”
Labour’s finance spokeswoman Barbara Edmonds agreed that fiscal responsibility is “crucial”.
“But this is much ado about nothing. Once again, [National has] wasted everyone’s time on a Sunday, re-announcing what’s already in their fiscal strategy,” she said.
Listen to the full episode to hear more about:
- Government spending
- Is a tax a levy?
- How to return to surplus
- Blaming Labour.
The Front Page is a daily news podcast from the New Zealand Herald , available to listen to every weekday from 5pm. The podcast is presented by Chelsea Daniels, an Auckland-based journalist with a background in world news and crime/justice reporting who joined NZME in 2016.
You can follow the podcast at iHeartRadio , Apple Podcasts , Spotify or wherever you get your podcasts.
