MEDIA RELEASE

Budget 2011: where's the vision?

Other countries have found solutions ...

Where is this budget’s vision for all New Zealanders?

19 May 2011

 The 2010 tax cuts are now to be paid for four times over:

  • 4.2 million New Zealanders  are paying for them through higher GST;

  • 1.7 million New Zealanders are to pay for them through lost Kiwisaver benefits;

  • Tens of thousands of New Zealanders are to pay for them through lost Working for Families entitlements;

  • 155,000 New Zealanders are still paying through lost jobs;

All so that a few thousand well-off new Zealanders can pay less tax, and this during the worst global economic crisis in living memory. 

We do not see a vision for jobs growth, for investment in young people, raised productivity, a fair go for working families and those without work, or for investment in New Zealand’s future productive capacity. 

There is a lot of trimming of the government budget – most of it to be borne by low and middle-income families - in order to keep last year’s tax cut in place.

Yet the 2010 tax cuts have done nothing to help New Zealanders escape the worldwide recession, they have done nothing to future-proof our country, they have not eased the daily financial struggles of the majority of kiwis, and they have not delivered the 2010 budget’s promised 170,000 jobs.

The government must allocate resources to research and development, to job creation, and supporting families through this hardest of times, yet we see only the promise of beneficiary bashing.

Where are the jobs?  The well-paying jobs that will encourage our best and brightest to stay home, that will keep people off the dole, that will get the tax take back up where it needs to be so that the Government’s bold predictions for sustained prosperity in 4 years’ time can be achieved?

Other countries have found solutions – extending the retirement age, allowing higher levels of inflation, raising income taxes. 

Where is this budget’s vision for all New Zealanders?


What the Budget means for The Mission

Government is holding funding to the Community & Voluntary sector with no increase. This means we have to absorb inflation; and with even more demand on services likely, particularly with the staffing cuts to government providers that will result from the Kiwisaver changes; we are going to be asked to do more (again), with less(again). 

This is simply not sustainable.  The Community & Voluntary sector (CVS) has had no meaningful new money in some time, yet the complexity and volume of work has increased markedly.  Last year over a thousand CVS organisations de-registered from the Charities Commission - that is, they closed.This year there will be more.

 HOW WE FEEL ABOUT THAT

The Government is making it harder and harder to look after the most vulnerable in society at a time when the number of vulnerable has increased significantly. It is distressing to see the - entirely predictable - consequences of that unfold, and to know that the last two government budgets are creating the next 20-30 years of work for The Mission.

> LINK to Channel 9 interview with CEO Laura Black (opens video in new window)

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