Photo: RNZ
The government's plan to cut $4 billion in spending is too little, too late, the National party says, and the public sector has grown lax while middle income earners are struggling.
National Party deputy leader Nicola Willis said the government's spending, if kept unchecked, would land the country in trouble, and if elected National would both rein spending in and deliver tax cuts for middle income New Zealanders.
ACT said the cuts did not go far enough, and it would cut $35 billion in wasteful spending, while the Green Party said the cuts would constrain future governments whereas a wealth and corporate tax would have delivered "life's essentials" for all New Zealanders.
The government's plan was announced by Prime Minister Chris Hipkins and Minister of Finance Grant Robertson on Monday. It was making changes to spending that would save nearly $4b over the next four years, which is on top of the $4b saved in the 2023 Budget in May.
"Today Grant Robertson wants you to give him credit for saying he's going to clean up a corner of his mess. ... it's too little too late to restore careful economic management," Willis said.
"After six years of spending New Zealanders' money with reckless abandon he's now finally admitted he has a problem, six weeks out from an election - this is far too little, far too late, it's simply not credible ... and in order to sort the books out and get New Zealand 's economy back on track, New Zealanders need to party vote National now more than ever.
"New Zealanders have been let down by this careless economic management - if Labour had listened to National when we said 'look, pull up, pull up, be a bit more careful, the economy is in trouble', then we wouldn't be in the mess it is today."
Asked if National would commit to running operating costs at this level or lower if elected, she said: "Yes. National is always more careful with the taxpayers' money because we believe they can spend their money better than Labour can."
Nicola Willis Photo: RNZ / Angus Dreaver
Though National would wait for the nation's ledgers to be opened at the pre-election financial update before it would release its own financial plans, because "with Labour in charge they leave things in a mess".
National was however planning to release its tax plan this week.
Treasury is required to deliver a pre-election economic and fiscal update 20 to 30 working days before election day.
"Who knows how bad Grant Robertson is leaving things," Willis said. "He's driven the economy into recession - now one of the worst performing economies in the region - inflation has remained high, interest rates have risen quicker than in the history of the OCR, and now he's left a blood bath in the books as well."
"National has a fiscal plan, and it involves more disciplined spending than we've seen by this government, driving better results for the New Zealander's money that we spend, stopping wasteful spending and ensuring New Zealanders can keep more of what they earn," Willis said.
National would deliver New Zealanders "a boost to their back pocket pay", reduce income tax for middle-income New Zealanders and reduce cost pressures on the economy that were caused by additional taxes, she said.
When asked about whether their own plans to cut government spending could be criticised as following the lead of Labour's announcements today, Willis said National was known for spending less.
ACT have plans for cutting $35b in spending
New Zealanders struggling with the cost of living would not see real changes from the plan announced by the government today, ACT Party leader David Seymour said.
David Seymour Photo: RNZ / Samuel Rillstone
"Labour is in a sad and desperate state, attempting to make these savings just weeks before an election, but it also shows how much work the next government will have to do to repair the books.
"Robertson [is] campaigning against the Coalition of Cuts, but today he's refuted his own claim that ACT can't cut government spending without cutting services by doing just that. ACT knows there is more wasteful spending to be found, because we've found it."
Seymour said within four years $35 billion of wasteful spending could be cut.
"ACT will raise productivity and wages, make the government's books sustainable, and create a culture where work, savings, investment, and innovation are rewarded."
They would lower taxes, tackle the structure of the tax system, cut the fees free tertiary study programme, 'corporate welfare' like international film subsidies and the Provincial Growth Fund, shut down demographic ministries, reduce bureaucracy "in overstaffed and under-producing ministries like the Ministry of Education", and scraps policies and organisations that "don't practically lower emissions like the Clean Car Discount and the Climate Change Commission".
Greens - cuts will mean fewer people helped
The government's purse tightening showed the need for a wealth tax and for big corporations to shoulder more of their share, the Green Party said.
"Today's decision will only constrain future governments from being able to help every single person in Aotearoa," Green Party finance spokesperson Julie Anne Genter said.
Julie Anne Genter Photo: RNZ / Angus Dreaver
They would work toward taxing the "wealthiest few" and big corporations at 33 percent.
"This would guarantee everyone an income that covers life's essentials; a warm, dry and affordable place to live that is powered by cheap, clean energy; and access to free dental care in communities where people and nature thrive.
"Aotearoa's tax system ... has been designed to favour the wealthiest few. The government's own research shows that just 311 families own more wealth than the bottom two and half million New Zealanders. And yet they pay less than half the effective tax of the average New Zealander.
"It doesn't have to be like this. The money we need to make life better for everyone in NZ is already there. All that's missing is the political courage to make it happen.
National Party about to release their tax plan
If elected, National's tax plan meant all New Zealanders would pay less tax, as smart management meant more could be done with less, Willis said.
"We will be guaranteeing a tax reduction for New Zealanders.
"That tax plan is fully funded, which is to say it will not require a dollar of borrowing or extra spending, instead it will be funded through a careful programme of spending reprioritisation and targeted additional revenue measures so that working people who have been crushed by Labour's cost of living crisis can keep more of what they earn.
They would rebuild the economy and "increase funding for health and the economy every year we are in office., but ... it's not enough to just spend more money, as Labour has, you actually have to get better results for that."
The government's spending had added to inflation and driven the cost of living, Willis said.
National would be more prudent, including reducing public sector spending on contractors and consultants by at least $400m.
Labour had allowed government agencies to become undisciplined in their spending, which a controversial $45,000 bill for a farewell party for a public servant at the Ministry of Pacific Peoples demonstrated, she said.
"The public service have shared with me that they think that the government has been very lax in its management of taxpayers money. They have shared with me that they think that there is a lot of waste across the system, and that it would start with ministers being clear about what they actually want to achieve - something that has been sorely lacking from the Labour cabinet."
