New fiscal stimulus can fix the climate and economy

Stimulatory spending to help boost the economy can also help address climate change, the Green Party said today.

ANZ Chief Economist Cameron Bagrie yesterday called for central and local Governments to move to a more stimulatory fiscal stance.

“If the Government is smart, any new stimulatory spending to boost the economy can address climate change at the same time,” Green Party Co-leader Metiria Turei said.

“For smart, new capital expenditure, the Government can move forward spending on Auckland’s City Rail Link – the number one transport priority for Auckland and a project that will employ hundreds and help reduce Auckland’s climate emissions from transport.

“The Government can also help schools reduce their power bills by investing $20 million into solar power systems in schools, allowing them to benefit from cheaper, cleaner power, leaving them with more money to invest directly into teaching and learning.

“Finally, the Government can create and invest capital in the Green Investment Bank. Such a bank would be a government-owned, for-profit bank that would partner with the private sector to speed the funding of new climate-protecting projects, ranging from renewable energy and biofuel production to new clean technologies.

“To date, National has proposed more spending on low-value roads, which will increase our emissions and slow our transition to a low-carbon economy. This is neither a smart way to stimulate the economy or address climate change.

“We don’t think John Key should rule out new operational spending, especially if it is high quality spending.

“During the last recession, National helped stimulate the economy by investing in the Green Party’s home insulation scheme, employing thousands and making 235,000 more New Zealand homes warm and dry.

“That high-quality spend helped move the economy out of recession while lowering the amounts of energy needed to heat our homes. For every dollar invested in insulation, there are $5 of health improvements, mostly to the public health system.

“The job is not done, however; there are still hundreds of thousands more homes to go,” said Mrs Turei.

 

Link to more information on the investment cases for the City Rail Link, Solar Schools, and the Green Investment Bank:
https://www.greens.org.nz/policy

Latest Finance Announcements

Story

Economic windfall should be funnelled straight back into communities: Green Party

Following an economic forecast that shows Aotearoa strongly rebounding from COVID-19, and Crown accounts looking much healthier than expected, the ...
Read More

Story

Green Party to abstain from tax changes that will worsen house crisis in absence of tax on assets

The Green Party will abstain from a bill that will make slight changes to income tax brackets.
Read More

Story

Green Party welcome Adrian Orr’s full and frank advice on tax

We welcome Adrian Orr signalling that he will provide advice to the Finance Minister on fiscal measures, include tax changes, to cool the housing m...
Read More

Story

Green Party respond to Government review of housing settings

It is a positive step that the Government is looking at options to take the heat out of the housing market, and has written to the Reserve Bank to ...
Read More

Story

Reserve Bank policies will inevitably heat housing market, Government must implement tax reform to cool it down

The Government must use levers to prevent further over-heating of the housing market, which will result from the Reserve Bank pumping another $28 b...
Read More

Story

No surprise in National’s latest attempt to slash public services

National’s ‘alternative budget’ that includes huge cuts to the government’s operating allowance would risk gutting critical public services, and pu...
Read More

Latest Economic Development Announcements

Story

PREFU shows efforts to keep us all healthy, now we need to revenue raise

PREFU has given a good insight into what was required to ensure New Zealanders were largely supported to continue work and remain healthy during CO...
Read More

Progressive Tax Reform

In Aotearoa, there is enough to go around. But the tax system has allowed wealth to accumulate with a small number of us, while most of us have on...
Read More

Sustainable business

In the wake of COVID-19, we must empower small businesses in Aotearoa to flourish, create new jobs, and support their local communities. The Green ...
Read More

Sustainable jobs

A sustainable economy means good working conditions and fair distribution of the benefits of our natural resources. As we respond to the disruption...
Read More

High tech economy

A strong manufacturing and technology sector will create jobs in low-emissions industries and ensure we can sell Aotearoa’s skills to the world. Th...
Read More

Story

Green Party welcomes first Wellbeing Budget

“The Green Party is proud to welcome New Zealand’s first Wellbeing Budget to deliver change for New Zealanders,” Green Party Co-leader James Shaw s...
Read More