“While speaking on the Budget Policy Statement this morning, Grant Robertson has refused to commit to any additional reprioritisation of Government expenditure to pay for the recovery from Cyclone Gabrielle, meaning he expects taxpayers to foot the bill during a cost of living crisis,” says ACT Leader David Seymour.
“While speaking on the Budget Policy Statement this morning, Grant Robertson has refused to commit to any additional reprioritisation of Government expenditure to pay for the recovery from Cyclone Gabrielle, meaning he expects taxpayers to foot the bill during a cost of living crisis,” says ACT Leader David Seymour.
“Grant Robertson’s wasteful spending was irresponsible before the country had to pay for a major rebuild, continuing to be so stubborn when the country has a major rebuild and recovery on the way just shows flat out disdain for taxpayers. He would rather sting Kiwis with a new Cyclone Tax than sort out his own spending.
“When Grant Robertson inherited the books, spending was about 27 per cent of GDP, or $87 billion a year. Now, it's 35 per cent of GDP, up $40 billion a year to around $127 billion. Even without a natural disaster this was reckless, now it is totally unfeasible. As households tighten their belts in the face of mortgage and rent increases, it’s time for the Government to do the same.
“He had three options in the wake of Cyclone Gabrielle:
- Borrow more money and make life harder for future taxpayers
- Introduce a Cyclone Tax and make life harder for current taxpayers
- Reduce wasteful spending
“The last option was the correct one, but he has ignored it.
“Auckland Light Rail is estimated to cost $14.6b, Three Waters costs hundreds of billions, the firearms register is slated to cost $200m. This is on top of numerous other projects such as new walkways and cycleways across the country that all cost millions.
“ACT says there needs to be a moratorium on expenditures that are not urgent. The country needs to pay for a natural disaster, getting Kiwis lives back on track is the priority. Spending billions on light rail is not.
“New Zealanders will never have a chance to fight the cost of living crisis and price rises they already face, which will be exacerbated by these floods, if Grant Robertson can’t cut spending.
“His approach also means the Reserve Bank has little choice but to keep hiking the OCR. Adrian Orr is left with an impossible choice. He either hikes the OCR and makes life harder for mortgagees, or he puts the brakes on and inflation hangs around stronger for longer. Either way Kiwis lose until the Government can cut wasteful spending.
“ACT’s fully costed alternative budget reduces overall expenditure by 7.2 billion. Such a reduction would mean New Zealand can recover from Cyclone Gabrielle without heaping more pressure on to Kiwi households.”