Analysis: Labour better hope middle NZ forgets Budget before election

May 18, 2023
Grant Robertson announcing the Budget.

In the Budget lockup in the Beehive today, Finance Minister Grant Robertson was flung several questions, each of them dealt to relatively deftly, as should be expected of a politician of his tenure - 5305 days by the end of today.

It was the very last question that evoked the most curious answer. He was asked if he was saving tax cuts for the election campaign.

"The election campaign is not for today, today is the Budget."

As if Budget Day somehow floats in a hazy space outside of an election year.

It doesn't.

Twenty hours free childcare education has now extended to 2-year-olds, but won’t start until next year. (Source: 1News)

Today Robertson delivered his sixth Budget, another Wellbeing Budget. It's titled "Support for today, building for tomorrow" - but of course Opposition parties have leapt at the opportunity to re-coin it - for the Nats, it's the Blowout Budget. For ACT, it's the Build Back Broke Budget. For Te Pāti Māori, it's the "no thrills" (as opposed to no frills) Budget - despite a massive funding boost for Te Matatini, something they called for yesterday.

The biggest ticket items in this Budget include scrapping the $5 "co-payment" on prescription medication, an extension of 20 hours of free early childhood education to include children as young as two, and providing free public transport for under 13s, and half price public transport for under 25s.

Despite being a Wellbeing Budget, a massive chunk of New Zealanders will not feel so well about this Budget. Most hope - especially in tough economic times - that there will be some kind of reward or relief for them in a Budget, but a massive chunk of New Zealanders will be left wondering "what about me, why doesn't the Government care about me too?"

If you're over 25 and not a parent, it won't feel like there's much for you in this Budget. Interest rates are creeping up, sending heart rates aflutter come mortgage re-fixing time. Inflation is burgeoning like the mushroom cloud of a nuclear bomb, threatening to block out the light from the sun. Going to the supermarket is painful, even heart-breaking for some.

It is currently available to three to five-year-olds. (Source: 1News)

Life is feeling darker for many New Zealanders and they're desperate for some kind of life ring.

It's not to say these dark times are all the Government's fault - arguably we are enduring one of the most turbulent socio-economic and political periods since the Second World War (pandemic, economic crisis, war in Ukraine, polarised politics). But ACT and National will say Government spending has massively exacerbated our economic woes.

It's also not to say today's Budget lollies won't impact the lives of those they affect. It's clear from the people 1News spoke to today that it will make quite a significant difference for some - especially parents of young children.

In fact, in one sense that aspect makes things tricky for National. Things like free prescriptions and free or half-price transport become a habitual expectation. If the National Party brings back fees on scripts, it will feel like an affront.

The National leader criticised the Government for having no ideas to "drag New Zealand out of the economic hole". (Source: 1News)

National will soon be sounding the gong for economic management though. Their argument will likely be that yes, you will pay $5 for a prescription - but we'll create the economic conditions for you to do that comfortably.

It will be a difficult case to make, because it's a leap of faith to trust the National Party to deliver on that promise while its current leadership is untested. They'll be under the pump to make the case over the next four and a half months.

But voters may be driven to take that risk when they feel they have been left out in the cold by Labour's 2023 Budget. Labour's argument is the Budget is restrained - "pragmatic" as Robertson said repeatedly - enough to improve economic conditions for the rest of New Zealand, but that's another leap of faith.

The problem for Labour is it's so-called "middle New Zealand" - that is, middle class, middle income, the not too rich and not too poor - are the voters they want, and need. And while altruism is a noble aspiration, most voters are ultimately motivated by what is best for them and theirs.

Being older, having a higher level of education, a higher income and being from a majority ethnicity are predictors in being a consistent voter, according to the Royal Society. In New Zealand, income deprivation, unemployment and education levels impact voter turnout.

Lower income New Zealanders are the big winners here, so Labour better hope they turn out on October 14 to show their gratitude.

Today is 149 days until Election Day - Grant Robertson's 5453rd day in office. He'll have to hope that by then middle New Zealand will have forgotten he didn't give them a sickly-sweet lollipop on May 18.

SHARE ME

More Stories