The decision to nearly halve the amount of new investment
being made in the next Budget signals that this Government
doesn’t care about the users of public services, said
NZCTU Te Kauae Kaimahi Economist Craig
Renney.
“$1.3bn in operating allowance isn’t
enough to pay for cost pressures in health alone ($1.55bn).
There is no money for cost pressures in education and other
public services, or proposed defence spending. This is a
Budget that will be built on cuts to essential services,”
said Renney.
“The fact that this announcement has come
only three weeks away from Budget suggests that there is no
agreement around the cabinet table about what government
should be doing.
“We now know that we are looking at
a Budget where departments will be asked to make further
rounds of deep cuts – just after cuts at Budget
2024.
“The Minister of Finance is blaming
borrowing for the need to make cuts. At the last Budget the
government borrowed $12bn to pay for tax giveaways,
including to landlords and tobacco
companies.
“This decision to cut
investment is a choice. When child poverty rises, as it
currently is, it’s a choice to not increase support. When we
can’t support people losing their job, that’s a choice. This
Government’s choices are now very clear.
“We
implore the Government to rethink this decision. It doesn’t
help solve the public investment gap that already exists. It
doesn’t help tackle unmet need in health and education. It’s
time for a better approach, and to rebuild our public
services,” said
Renney.
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