Liam Dann breaks down the Budget for you. Video / NZ Herald
Tax cuts and a $1 billion support package for ongoing Cyclone Gabrielle recovery work are among the highlights for Hawke’s Bay in Budget 2024.
The Budget - which each year sets out the Government’s spending plans - was released on Thursday afternoon by new Finance MinisterNicola Willis in Parliament.
Hawke’s Bay Today has dissected the biggest winners and losers from the region, breaking down where the money will go and who benefits from the $3.7 billion worth of tax cuts.
The Working for Families in-work tax credit will also increase, giving low- and middle-income families with children up to a further $50 a fortnight.
The Independent Earner Tax Credit (IETC) of up to $20 a week has also been expanded for wage earners who earn up to $70,000, a big jump from the previous $48,000 cap.
An online calculator is available on the Heraldwebsite for people to check how they will be impacted.
Central Hawke’s Bay Budget Services manager Carmel Thompson said it was good news for residents as “any tax cuts will help”.
She said there had been an increasing number of people seeking budget advice in recent years during the living costs crisis, and they had referred more clients to food support services.
Finance Minister Nicola Willis delivered her first Budget on Thursday. Photo / Mark Mitchell
She said any relief would “absolutely” help people cover bills including groceries.
“Food is the first thing to go for people if they are trying to pay their bills,” she said.
“We are lucky that we have both Foodbank and Food Basket down here [in CHB].”
Roads and bridges
More than $1b was announced in the Budget to support the rebuild from Cyclone Gabrielle and the Auckland floods, which caused enormous damage in early 2023.
Most of that ($609m) will go toward completing state highway recovery works, and $330m (over two years) will be put toward fixing local roads managed by councils.
“Whilst this is a positive start, we now need to work through the detail around how much is coming to Hawke’s Bay and what this will cover,” Hastings Mayor Sandra Hazlehurst said.
Federated Farmers Hawke’s Bay also welcomed the package stating adequate roading is crucial for farming.
A double hit for both road and rail at Eskdale, north of Napier, following the cyclone. Photo / Paul Taylor
A further $200 million has been allocated for flood resilience infrastructure such as stop banks nationally, under the Regional Infrastructure Fund.
Meanwhile, a further $28m of funding has gone to the Temporary Accommodation Service (TAS) which helps households displaced by the cyclone.
The Budget did not include funding for a rebuild or major upgrade to that hospital.
Hawke's Bay Hospital is in need of a significant upgrade or rebuild. Photo / Warren Buckland
“It is extremely disappointing,” NZ Nurses Organisation kaiwhakahaere and co-leader Kerri Nuku, from Hawke’s Bay, said.
“If you have ever been a patient in those wards in the tower blocks in summer, where there is no air conditioning and they are having to rely on fans, it is absolutely disappointing there seems to be no budget to support a rebuild.”
People on multiple medications
The $5 co-payment for prescription medication is returning.
That fee was scrapped in last year’s Budget but will be reinstated for people 14 years and over.
“Prescriptions will continue to be free for people with community services cards, people under 14 years of age, and people aged 65 and over,” Health Minister Shane Reti said.
Public sector workers
Thousands of public sector jobs have gone, or are set go, as part of the Coalition Government’s cost-cutting measures.
Too early to tell
Education
Budget 2024 included a $3b package for education including $1.5b for new schools and classrooms and upgrades.
It is unclear how much of that money will go toward Hawke’s Bay at this stage.
Four-laning the Hawke’s Bay Expressway
Napier Mayor Kirsten Wise said the region was looking forward to more details about how and when projects like the four-laning of Hawke’s Bay Expressway will be delivered, following Budget 2024.
“Our focus is getting the region back on its feet and moving again.”
Promisingly, money has been set aside for the 17 new Roads of National Significance, of which the Hawke’s Bay Expressway is one, as part of a wider $2.68 billion package for roads, rail, and public transport infrastructure.
Gary Hamilton-Irvine is a Hawke’s Bay-based reporter who covers a range of news topics including business, councils, breaking news and cyclone recovery. He formerly worked at News Corp Australia.
