Hawke’s Bay leaders say $50 fuel relief for families is welcome but ‘not a silver bullet’

The Government announced working low-to-middle-income families will receive $50 a week to help with high fuel prices. Photo / 123rf

Hawke’s Bay leaders and financial advisers say the Government’s $50 a week for low-to-middle income families during the fuel crisis is a step in the right direction.

But all agree there is more that could be done.

On Tuesday, Christopher Luxon and Nicola Willis announced that from April 7 about 140,000 families with children will receive an extra $50 per week through a boost to the In-Work Tax Credit as the Government seeks to provide relief amid surging fuel prices brought on by the Iranian conflict.

The boost will also expand eligibility to around 14,000 additional working families and will last for one year or until the price of 91 octane petrol drops below $3 a litre for four consecutive weeks.

Hastings Mayor Wendy Schollum said many household budgets were already under pressure.

“When fuel prices rise, that cost flows through to almost everything, from getting to work and school to groceries and other essentials.

“Any targeted support that helps ease that immediate pressure for working families is welcome.”

Schollum said if fuel prices remain high, the impact would be felt across Hastings, including by people who may not qualify for support “but are still doing it tough”.

“In the short term, we hope that the Government keep a strong focus on fuel security and practical cost-of-living support if these pressures continue.

“For Hastings, that means recognising how exposed regional communities are to transport costs and making sure any response matches the reality on the ground.”

Ngāti Kahungunu chairman Bayden Barber said the decision was a good first step to relieve pressure on whānau who were struggling.

“Cost of living has been through the roof and now we have this fuel crisis,” he said.

“It’s a double whammy and sometimes a triple whammy for whānau.

“It’s not the silver bullet, but it’s definitely a good start for whānau that are already struggling financially.”

Napier Mayor Richard McGrath was unavailable for comment.

Birthright Hawke’s Bay is a non-profit providing social services for families, including financial support.

Chief executive Fiona Parrant was worried about some clients’ ability to afford fuel to get to appointments.

She said the organisation was “trying to be creative” with solutions, including operating online and recommending public transport routes where available.

Financial mentor at Birthright, Mike Chambers, said any move to alleviate pressure on families was welcomed, but the Government should remain fiscally responsible.

“What we don’t want to see is money being thrown now that actually is going to have a bigger impact down the line,” he said.

“So yes, we need immediate relief, but it’s also about viability and sustainability.

“I think if Covid’s taught us anything, we have to look to long-term support, not just immediate. It has to be sustainable and meaningful.”

Both said it was tough for those who would miss out on the weekly $50 but would greatly benefit from it.

“We’re seeing the new working poor and it’s going to miss a lot of them,” Parrant said.

Parrant described the new working poor as families earning over $100,000 combined.

“They’ve got three kids all in daycare or needing support,” she said.

“By the time they pay for that, groceries, rent, power, there’s not a lot left for petrol.”

However, both agreed the Government’s decision was a step in the right direction.

However, Chambers said removing GST from necessary items like food, vegetables and meat “would still alleviate the fuel crisis but make the cost of living that little bit more affordable”.

Parrant said the organisation was politically neutral and welcomed any relief.

“Could it go further? Of course it could. Would we love people to get more money? Of course we would. But it has to be prudent and actually be sustainable.”

Jack Riddell is a multimedia journalist with Hawke’s Bay Today and has worked in radio and media in the UK, Germany, and New Zealand.