UF support at a price

05/12/2011

National has a supply and confidence agreement with United Future:

Under the deal, Mr Dunne will remain Minister of Revenue and associate Minister of Health, as well as picking up the portfolio of associate Minister of Conservation.

Mr Dunne has also won new gains including investigating a free, annual health check-up for over 65s, no sale of any part of Kiwibank or Radio New Zealand.

He has also secured the retention of the Families Commission.

The question of this deal was never a matter of if but when and at what cost.

Even though Dunne won only his seat, I suppose he had to get something to show for his vote.

The Families Commission might be small beer in the context of overall government spending but given Bill English says we’re facing spending constraints for the foreseeable future the its retention is an expensive and unproductive luxury.

“Balancing the books and returning to  surplus is one of the most important things the Government can do to  build a stronger and more competitive economy,” Mr English says. . .

But getting back to surplus won’t be easy. In many ways, restraint in the public sector has only just started.

“The Government is committed to meeting this challenge. We’ve taken steps to control spending and get on top of debt, while putting in place  policies that build a more competitive economy and more real jobs.

When the need for restraint is so great, it’s a pity that axing the commission, which is an obvious way of cutting costs with little or no impact on anyone but those who work for it ,is no longer an option.

I wonder what the cost-benefit analysis of it would show and how all concessions made to minor parties since MMP was introduced would fare under similar scrutiny?

The confidence and supply agreement is here.


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