Budget 2021 'a good start' but Northland needs more, local leaders say

Finance Minister Grant Robertson and Prime Minister Jacinda Ardern on their way into the House for the reading of the 2021 Budget. Photo / NZME

It's a good start but Northland's community leaders say the 2021 Budget doesn't go far enough to address a number of key social issues, particularly the housing crisis.

Big-tick items announced by Finance Minister Grant Robertson include $380 million for 1000 new homes for Māori, repairs for 700 Māori–owned homes; and ring-fencing $350m of the $3.8 billion housing fund announced in March for at least 2700 Māori homes.

Benefits will increase by between $32 and $55 a week from July, while student living support will go up $25 a week. Overall, this will cost $3.3b over four years, which the Government says will lift up to 33,000 children throughout New Zealand out of poverty.

Families and whānau with children will also receive a further $15 per adult per week.

An extra $15.1b (bringing the four-year total from 2021 to 2025 to $57.3b), has been allocated for infrastructure, including $810m for KiwiRail, $761m for school property and $700m for hospital upgrades.

Apart from Māori housing, the Government will support Kāinga Ora to borrow $46m every year over 20 years to purchase land, meet holding costs, and allow for development risks.

The Housing Acceleration Fund of $354m for 2021/22 and $608m the following year will increase the pace and scale of new housing supply, and expanding the Land for Housing programme.

This will include increasing affordable homes, whether for rent or home ownership, and will focus on locations with high housing need, including large-scale Kāinga Ora projects.

It's unclear at this stage how much will be allocated to Northland.

Northland Housing Forum has welcomed a small increase in benefit payments but is disappointed that the Government is not allocating money to tackle the housing crisis, although it supports investment in Māori housing.

Māori health and social service providers are pleased with funding for Māori housing but want more details around health funding, especially the amounts of money allocated to Northland.

Likewise, NorthChamber hopes there's more clarity around funding for infrastructure projects in Northland and is supportive of an increase in benefits, because most of that money will be spent in local retail outlets.

The Police Association and the Tai Tokerau Principals' Association are happy with funding towards tackling family violence, with the latter giving the Budget a score of between eight and nine out of 10.

An extra $200m will be given to Pharmac, but the Government has backed down on free annual GP visits and eye checks for SuperGold cardholders as it views these as being of "limited benefit".

Economic growth of 2.9 per cent is expected for this year, rising to 4.4 per cent in 2023.