A bigger surplus will allow a new government to manage the economy responsibly while making the changes people know are needed, like lifting kids out of poverty, cleaning up our rivers, solving the housing crisis, and tackling climate change, the Green Party said today.
The Pre-Election Fiscal Update (PREFU) released today shows stronger growth in the short term, resulting in a higher than forecast surplus for the government this year by $2.1 billion. However, forecast productivity growth remains weak and will undermine our longer term economic prospects, resulting in lower long-term growth.
“It’s clear now after the opening of the books that there is more money available in the short term, and we’ll be taking a good look at the best way to invest that in our priorities of ending poverty, cleaning up our rivers, and tackling climate change,” said Green Party Co-leader James Shaw.
“We can manage the economy responsibly and use the bigger surplus to improve the lives of New Zealanders by building more homes, lifting incomes, and providing free public transport for young people.
“Further tax cuts from National, before they’ve even restarted payments to the New Zealand Superannuation Fund, would smack of desperation and highlight how they’re more interested in staying in power rather than managing the economy for the long term.
“We will deliver modest tax cuts for everyone earning less than $150,000, as part of our family incomes package, lifting hundreds of thousands of kids out of poverty, and making everyone who earns less than $150,000 better off than they are now.
“Free buses and trains, including school buses for kids and teenagers, will make a much bigger difference to family budgets than another tax cut.
“Free public transport would save some families hundreds of dollars a week while addressing high levels of congestion on our roads.
“After nine years, National have gone stale and are unwilling to make the changes people know are needed, like lifting kids out of poverty, cleaning up our rivers, building more homes, and tackling climate change.
“No child should go to school hungry, especially when times are good. We’re going to fix that,” said Mr Shaw.