Delivering broken promises

When the Prime Minister declared this the year of delivery, did she mean delivering broken promises?

Today’s half year economic and fiscal update is a damning indictment on Prime Minister Jacinda Ardern’s economic management as she puts New Zealand back in the red, National’s Finance Spokesperson Paul Goldsmith says.

“This Government inherited massive surpluses as far as the eye could see, and has blown them in two years.

The previous Labour government left a decade of deficits and National managed to get back into surplus in spite of the Canterbury earthquakes and GFC.

It’s taken just two years for Labour to undo that good work.

“Treasury has slashed its economic growth forecasts which means fewer opportunities for Kiwis to get ahead, less money to go around and more debt. The Government has turned the strong growth and huge surpluses it inherited into deficits, weak growth and more debt with nothing to show for it.

“The Government is pulling the economy down with one hand through added costs, uncertainty and incompetence, and trying to pull it up with other through more debt. It’s confused, incoherent and chaotic.

The Government has also broken its promise to New Zealanders to reduce debt below 20 per cent of GDP by 2022. This promise was only made because Labour knew New Zealanders didn’t trust them to spend wisely.

“That lack of trust has been fully justified.

“The Government would not need to break their debt promise by almost $5 billion if they had not wasted billions of taxpayer money on failed experimental policies like KiwiBuild, Fees Free or the Provincial Growth Fund.

Borrowing when interest rates are low to fund infrastructure investment isn’t necessarily feckless, but the government wouldn’t need to borrow if it hadn’t wasted money on fripperies.

“After spending its first two years deliberately stopping planned transport infrastructure, it’s a relief the Government has finally woken up to the need to get on with things. We, however, have little confidence it will deliver anything next year either. . . 

The announcement begs some questions.

It is borrowing $19 billion of which $12 billion is earmarked for infrastructure.

What is the other $7 billion to be spent on?

And why wait?

. . But details of these projects were not announced today.

Rather, Robertson said the Government would be announcing the specific projects in early to mid-2020. . . 

Of the new spending announced today, $8 billion is for specific “shovel ready” projects, with a further $4 billion on hand for future spending. . . 

If the projects are shovel ready why not start shoveling now? Do we have enough shovelers or will the work, as Politik says, need more migrants?

Like so many times before, what the government announced is a plan to plan, not actually a plan of action and the money it’s planning to plan to spend would be borrowed because it’s squandered the surpluses that ought to have been available for this type of investment.

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