The flaws in Phil Twyford’s KiwiBuild scheme should not have been ignored. Photo / File
The flaws in Phil Twyford’s KiwiBuild scheme should not have been ignored. Photo / File
COMMENT:
Grant Robertson has delivered the world's first "Wellbeing Budget", crafting a fiscal plan made with the heart but also the head.
The Budget ticks the right boxes when it comes to investment in some gaping areas like mental health services — a need which was exacerbated by the Christchurchterrorist attack.
There is increased funding for mental health support services in Christchurch, funding for additional financial support for families, and increased funding for support to ethnic communities.
In all, there will be $1.9 billion over five years, including $455 million for mental health workers to service those with low-to-mid-level mental health problems.
This is just one illustration of a new approach to crafting the Budget where Cabinet Ministers' spending bids are now disintermediated through a "Wellbeing" lens.
As Robertson told Parliament yesterday, the Government was measuring and focusing on what New Zealanders value — "the health of our people and our environment, the strengths of our communities and the prosperity of our nation.
"Success is making New Zealand both a great place to make a living, and a great place to make a life."
Robertson's rhetoric does obscure one gaping hole that should have been addressed for the Wellbeing Budget to live up to its branding.
Finance Minister Grant Robertson. Photo / File
He told Parliament that in the 2017 election, New Zealanders were asking a core question: if we have declared success because we have a relatively high GDP growth, why are the things that we value going backwards, like child wellbeing, a warm, dry home for all, mental health services or rivers and lakes we can swim in?
At the Herald Mood of the Boardroom breakfast just prior to that election, Robertson — who was debating former National Finance Minister Steven Joyce — rehashed Labour leader Jacinda Ardern's attack on the then Government for failing to address the country's housing shortage until the "11th hour".
Business wanted to see a bolder approach to big issues like infrastructure and housing.
Back then business also had a growing interest in seeing social issues addressed, which explains why their reaction to this year's Budget is relatively positive.
But younger middle-class and less well-paid New Zealanders who would have expected the Government to be delivering on KiwiBuild by now, have reason to feel overlooked.
This issue should not have been glossed over.
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When it comes to thinking with the head, the Budget makes a good step in the direction towards New Zealand becoming a smarter nation.
I wanted a Budget that would result in major public investment in human capital, resulting in highly-educated, well-trained New Zealanders who are fit for purpose in the evolving world of work. The significant investment in vocational training is a step in that direction.
I also wanted to see more investment in early stage companies and for the NZ Super Fund to place significant investment behind New Zealand ventures. That this Budget does establishes a new $300m fund — with NZ Super Fund support — to make venture capital investments in start-ups is long overdue.
The Budget also allocates $157m for innovation, with initiatives to support businesses to become more productive and develop high value low-emissions products. Robertson says this package will support the Government's target to invest 2 per cent of New Zealand's GDP into research and development by 2027.
Then there is the pledge to invest $1b over two years in modernising KiwiRail, covering off the funding gap so the Auckland City Rail Link can be completed, along with more capital investment in hospitals and school properties.
Disappointingly, the Budget speech did not address the role of Crown Infrastructure Partners in developing — in collaboration with the private sector and local government — special purpose vehicles to pave for the way for new housing developments.
That is transformative stuff. And it must be addressed if the Government is to manage a credible debt track.
In all it has been a good effort. And with plenty of fiscal slack for major stimulus and goodies to be tossed out in election year.
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