National leader Judith Collins says the Government’s 2021 Budget speaks to Labour’s “inability to deliver” for middle New Zealand, saying it will increase the number of people “dependent on the state”.
“That was a Budget for benefits, not for jobs,” Collins said in the House.
She said Budget day was the time “hard-working” Kiwis looked to the Government for hope for growth, for peace of mind their tax dollars were being spent wisely, and for opportunities to help them provide “for their own families”.
New Zealanders on benefits are set to see more money in their pockets, with the Government today saying it is “righting a wrong” by giving a weekly boost of up to $55 a week, restoring “dignity and hope” to some of those on the lowest incomes.
Main benefits will get a $20 a week top up from July, while additional payments will come in from April 2022.
Save the Children is welcoming the boost, saying the benefit rates announced “is a significant step towards addressing New Zealand’s child poverty”.
"While we welcome the additional support ... for many families facing rising housing costs these income lifts won’t significantly shift their standard of living and the full effect of the increase won’t be felt until 2023," says Save the Children’s Advocacy and Research Director Jacqui Southey.
Children’s Commissioner Andrew Becroft said the move was “an important and significant step forward for children living in poverty and hardship”. But, he called on the Government to introduce help for vulnerable children immediately.
Andrew Becroft welcomed the increases to benefits but he remained anxious for the Kiwi children who are suffering now. (Source: Other)
Meanwhile, Collins questioned the Government’s intention.
“This Government doesn’t really care, actually, about children, do they? Or grandchildren.
“What they’re doing is they’re investing and hoping for the number of people who will become dependent on the state.”
She said the Government “could have left our children with a smaller bill”, given the Government headed into today with books in a better-than-expected shape.
Treasury figures released in April showed a deficit of $4.5 billion in the eight months leading up to February — $3.7 billion less than forecast.
She asked why the Government hadn’t considered tax relief for “hard-working families” if the economy was doing better than predicted.
Collins said debt would climb to $184 billion, or more than $100,000 a household.
“New Zealanders want to know what they’re getting for that debt. They understand borrowing only makes sense if it’s invested well,” she said.
“To truly ‘secure our recovery’ we need to provide businesses the confidence they need to invest, so they can employ more staff and pay good wages.
“All New Zealanders are feeling the pinch right now – not just those on jobseeker benefits and the minimum wage – so where is the plan to take the entire country back to prosperity?
“Treasury says the benefit increases announced today are needed to stave off rising poverty because of the economic conditions made worse by the Labour Government – inflation, rent and unemployment.”
Finance Minster Grant Robertson said Budget 2021 was “balanced”.
The Finance Minister said the changes were designed to reduce inequality and provide stimulus to the economy. (Source: Other)
“Our approach will continue to be a balanced one. Investing where it is needed the most, while keeping a careful hand on the books to keep a lid on debt and look out for future generations.”
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