From RNZ · RNZ | Te Reo Irirangi o Aotearoa · · 1m 30s
Labour's fiscal plan: National's claims
National claims Labour's fiscal plan is fraudulent with $11bn cost gaps.
In brief
National claims Labour's fiscal plan is fraudulent with $11bn cost gaps. National says Labour's fiscal plan lacks $11bn for pay equity, fuel tax and health costs, but Labour insists it has $10.5bn unallocated funding. Originally reported by RNZ.
National attacks Labour's fiscal plan
National finance spokesperson Nicola Willis labels Labour's fiscal plan fraudulent, claiming former Labour finance ministers would be ashamed and disappointed.
“National's Nicola Willis is on the attack over Labour's fiscal plan, labelling it fraudulent, and claiming some former Labour finance ministers would be ashamed and disappointed.”
Pay equity cost gap
Labour's plan lacks specific cost for restoring pay equity scheme, with National claiming $11bn needed versus Labour's $10.5bn unallocated funding.
“National says Treasury estimated restoring the scheme would cost $11 billion, leaving Labour $8.5b short.”
Fuel tax and transport cap
Labour excludes fuel tax freeze and public transport fare cap from fiscal plan, claiming they'll be paid from National Land Transport Fund.
“Willis says Labour has not included the cost of freezing fuel tax and road-user charges for three years, which she puts at $3.1b, nor its public transport fare-cap policy, which Labour previously indicated would cost $260 million.”
Future Fund dividends
Labour plans Future Fund with state-owned asset dividends but National claims $2.8bn loss from excluded companies.
“Willis argues Labour should have accounted for a $2.8b loss of dividends from companies included in the Future Fund, because that money would otherwise be invested into government services.”
Health cost pressures
Labour increases health funding for cost pressures but National claims $1.5bn unfunded, with Labour guaranteeing graduate nurse jobs at $526m.
“Willis says that means it has left $1.5b unfunded.”
Economist on fiscal holes
Independent economist Cameron Bagrie says all parties have fiscal holes with complicated trade-offs, urging voters to choose between healthcare and tax.
“What do you want? Do you want a well-functioning healthcare system and education system, and what are you prepared to pay in regard to tax for that on the other side, because there's no free lunch.”
Fiscal hole debate
Labour and National agree on surplus by 2028/29 but disagree on funding gaps, with Bagrie warning of potholes in 2028.
“Here we go again, we're going to go through a big debate about fiscal holes”
What happens next
Voters face trade-offs between healthcare, education and tax in 2028 as fiscal holes become reality.
“Bagrie warned that they would create literal holes - potholes - on crumbling roads up and down the country.”
The key point
National says Labour's fiscal plan lacks $11bn for pay equity, fuel tax and health costs, but Labour insists it has $10.5bn unallocated funding.
