They haven’t learned a thing

Labour and the Green Party are trying to pretend they would be good economic managers.

The cost of their policies puts the lie to that:

David Cunliffe and Labour have actually increased their new spending promises for the next four years to $18.4 billion, despite putting some of their proposals such as New Zealand Power on the never-never, National Party Finance Spokesman Bill English says.

“David Cunliffe and David Parker have again been caught out under-costing their expensive promises,” Mr English says. “This is irresponsible and deceptive and confirms that under David Cunliffe, Labour is reverting to its failed spend and tax recipe of the past.

“We saw what happened the last time around – under Labour in 2008, floating mortgage rates reached almost 11 per cent, inflation exceeded 5 per cent and the economy went into recession well before the global financial crisis.”

Labour’s latest costings attempt, which it released on Monday, confirm its untried New Zealand Power proposal, which would give politicians control of the electricity industry and push up power prices, would be postponed until 1 January 2018.

And in another example of it attempting to dress up its numbers, Labour has also pushed back free GP visits for over 65s and other groups to 1 January 2017.

“So while David Cunliffe is going around New Zealand making expensive promises, he is quietly pushing some of them back beyond two elections because he knows they are unaffordable,” Mr English says.

“But he has again failed to hide Labour’s real spending agenda because he has not added in promises made over the last two weeks.

“Even using Labour’s own numbers, the cost of its promises over the next four years is now $17.3 billion – up from its claimed $16.4 billion when it first attempted to cost its policies.

“But when the real costs of its proposed R&D tax credit, compulsory KiwiSaver and New Zealand Power are included, the tally jumps to $18.4 billion – up from around $18 billion the last time around.

“As Labour’s numbers come under scrutiny, they keep changing them,” Mr English says. “David Cunliffe has tried to say he would spend less, but when you add it all up he is actually spending more.”

Labour Party Election 2014 Spending Announcements – as at 27 August 2014
Four year costings as per Labour documents unless noted

		$m
27-Jan-14	Best Start Policy	614
27-Jan-14	Extended Paid Parental Leave	245
27-Jan-14	Maternity Policies	50
27-Jan-14	Early Childhood Education Announcements	352
19-Mar-14	Forestry Policy	28
14-Apr-14	Bowel Screening Programme	56
23-Apr-14	Veterans Pension Extension	37
23-Jun-14	Canterbury Policies	116
25-Jun-14	R & D Tax Credit*	1,079
25-Jun-14	Accelerated Depreciation	210
25-Jun-14	Universal KiwiSaver**	845
25-Jun-14	NZ Power***	566
25-Jun-14	KiwiBuild	1,527
25-Jun-14	KiwiBuild Finance Costs	176
2-Jul-14	School Donation Policy	175
3-Jul-14	Family & Sexual Violence Policies	60
5-Jul-14	Digital Devices in Schools	120
5-Jul-14	Reading Recovery	140
5-Jul-14	Food in Schools	70
11-Jul-14	ICT policies	17
22-Jul-14	Regional Investment Fund	200
24-Jul-14	Digital and Connectivity Policy	21
30-Jul-14	Living wage for Public Sector	94
31-Jul-14	Centres of Vocational Excellence	40
4-Aug-14	Youth Employment Package	182
6-Aug-14	Primary Healthcare	150
8-Aug-14	ACC	40
10-Aug-14	Free Doctors’ Visits	540
18-Aug-14	Tertiary Education (incl ACE)	130
20-Aug-14	Aged Care	222
22-Aug-14	Welfare Policy	78
24-Aug-14	Immediate Funding of City Rail Link****	800
25-Aug-14	Other Education Initiatives	45
25-Aug-14	Other Smaller Initiatives	80
25-Aug-14	Maintain Real Value of Spending in Public Services	9,000
25-Aug-14	Policy Soon to be Announced	289
	Total Announced Spending Pledges	18,394

*Adjusted to reflect Treasury’s forecast costs of the previous R & D Tax credit
**Adjusted to include the average Kiwisaver tax credit paid to new Kiwisaver members
***Adjusted to remove the claimed fiscal offset for wider benefits in one part of the economy that ignores wider costs elsewhere
****Labour says it would reprioritise existing transport spend but most of first 4 yrs committed/contracted

Note: some costs differ from the original Labour releases as a result of fiscal tables released 25 August.

This is only the cost of its spending.

It doesn’t take into account the cost of poor economic management, higher and extra taxes, higher interest rates, a greater burden of government and all the other hand brakes a Labour/Green?New Zealand First.Internet Mana government would impose on the country.

Higher spending and higher taxes didn’t work for New Zealand under the last Labour-led government and it won’t work if voters are conned into trusting another one.

Hopefully voters have learned what works for New Zealand and New Zealanders because Labour and its mismatched mates haven’t.