Tauranga residents said they would use the cost of living payment to pay for groceries. Photo / Getty Images
Tauranga residents said they would use the cost of living payment to pay for groceries. Photo / Getty Images
An extra loaf of bread, some milk and eggs.
That is about all another $27 a week would buy for a big family, Pāpāmoa resident Teagan Drummond says.
A local Opposition MP says it will get "lost in the wash" - but other residents have big plans for the money.
Finance Minister Grant Robertson yesterday announced as part of Budget 2022 about 2.1 million New Zealanders will get a $350 one-off payment as part of an emergency $1 billion cost of living package.
It will be offered to low-to-middle income earners of less than $70,000 who do not receive the winter energy payment. It will be handed out in instalments over three months from August 1. This worked out to be about $27 a week.
Drummond, 24, said the payment would not make "that much of a difference".
"$27 a week is going to get you an extra loaf of bread, some milk, eggs and that's probably about it, especially if you've got a really big family."
Drummond, who works at a kiwifruit orchard, said she would use the money towards groceries, rent or petrol.
Pāpāmoa resident Jeremy Marnane, also 24, said it would have been better to further reduce tax on petrol rather than give out a $350 payment.
He said the money would "probably just be spread out over everything".
Tauranga woman Maria Cruz, 37, said the $350 payment would be helpful and she would use the extra money for food, going to a restaurant and maybe a trip to Hamilton for a weekend to see the Chiefs.
Cruz said she and her husband used to often go away on weekends to Coromandel, Rotorua or Hamilton, but had cut back as petrol prices increased.
She said the cost of living had changed "a lot" in the last four months.
"I used to go out much more... and you can notice in the supermarket how much you can buy with $200 and how much you used to do with that.
"Your pocket [can] feel it."
Tauranga grandmother Lolita Libeau pictured in 2019. Photo / Andrew Warner
Lolita Libeau, 58, from Tauranga, said she would not get the payment but her husband Nigel Libeau would be eligible.
Libeau said everyone was affected by the increased cost of living but only certain people would get the benefit.
"But if you're talking about a tax cut... that will cover everybody."
She said the money would probably be used to help their children.
"One is still paying rent, one is paying a mortgage, one just had a baby... [we] always help them anyway."
Bay of Plenty MP Todd Muller. Photo / George Novak
Bay of Plenty MP Todd Muller said every New Zealander was feeling the cost of living crisis "massively" and Budget 2022 was "a backwards Budget".
"Doling out cash to a handful of people is only going to make the situation worse as opposed to actually running the economy more effectively."
Muller said the payment would get "lost in the wash" because petrol prices, rent and mortgages were up and would continue to go up.
"[National] signalled our alternative which would be making adjustments to the tax thresholds, which is a far more effective and efficient way of people being able to keep hold of their own money."
Grey Power Tauranga president Jennifer Custins pictured in 2020. Photo / Andrew Warner
Grey Power Tauranga president Jennifer Custins said the payment would give people a "mental and emotional lift" but would not change the "long-term cost of living".
"It's no good having $350 if you actually can't find a home to rent and you can't actually afford a vehicle."
Tauranga Budget Advisory Services manager Shirley McCombe said there were some "very positive announcements" in the Budget that would benefit its clients, but the $350 would have "little impact".
"It may allow some to address rent or electricity arrears but as these and the cost of accommodation and food is ongoing, the contribution will provide only temporary relief."
McCombe said the extra $27 a week would "disappear" into the weekly cost of living and would be "barely noticed by most".
However, she was "pleased to hear" the announcement regarding the extension of public transport, fuel and road user tax reductions for two more months.
Tauranga Business Chamber spokeswoman Laura Boucher said the Government was preparing for a "cooling economy" as increasing inflation and mortgage rates restricted consumer spending.
"The next 12 months will be tough for businesses as consumers tighten their wallets, but their costs will keep rising."
Boucher said it was unclear how the Government's regional funding would help local businesses as it had historically been a "lolly scramble" across different regions.
"Growing regions such as Tauranga need help funding local infrastructure to enable more houses to be built and ease traffic congestion.
"Housing helps address many social issues, and makes it easier for businesses to attract people to fill widespread job vacancies."
Boucher said the Business Growth Fund would "hopefully" empower small and mid-sized enterprise owners to navigate a "challenging environment" over the next few years and become "more resilient".
