Finance Minister Grant Robertson says “this is a Budget that’s appropriate for a time where people are struggling” at his annual photo opportunity Wednesday morning. Video / Mark Mitchell / Adam Pearse
The Government is hours away from unveiling Budget 2023, which will show how Finance Minister Grant Robertson will address the high cost of living and pay for the hefty bill left behind by Cyclone Gabrielle and the Auckland floods.
Robertson has promised a “no frills” Budget that reflects the economicstruggles the country is experiencing and the need to support communities ravaged by severe weather events.
The Government has released a few teasers of what will be in Budget 2023. They include:
$941 million in cyclone and flooding-related funding
Prime Minister Chris Hipkins, Robertson and an array of other ministers and MPs announced the almost $1 billion cyclone and flooding package in Hawke’s Bay on Sunday, devoting much of it ($475 million) to rebuild road and rail links.
Roughly $100m has been set aside to raise stopbanks and shore up lifelines that failed during record rainfalls, while other funding would be used to rebuild damaged schools, support the safety and wellbeing of farmers and growers and further resourcing for mental health support providers.
Finance Minister Grant Robertson with Prime Minister Chris Hipkins and other ministers and MPs in Hawke's Bay. Photo / Warren Buckland
Regarding the roading and rail investment, Transport Minister Michael Wood said damage to the North Island transport network by Cyclone Gabrielle and the January floods was putting financial pressure on councils.
“We’re stepping in to cover more of the costs of clearance and rebuild so councils can get on with the work without having to rely on increasing rates.
The funding included $275m earmarked for Waka Kotahi NZTA and local councils to repair affected roads. That was on top of $250m the Government announced immediately after Cyclone Gabrielle.
“Through this funding Waka Kotahi will be able to consider requests from affected regions for higher levels of direct financial support to rebuild local roads,” Wood said.
About $200m would be used to repair several sections of rail network, including the North Auckland Line and the Palmerston North to Gisborne Line, as well as the Auckland metropolitan network, the North Island Main Trunk and the East Coast Main Trunk.
About $116m would fund immediate repairs to more than 500 damaged schools, with additional funding available for possible redevelopment or relocation of schools.
A further $700,000 would be invested over two years for Special Reasons Staffing funding, $315,000 of that would be available immediately.
Just over $35m would be directed toward farmers and growers by supporting access to expert advice to address urgent health and safety, animal welfare needs, and to ensure the safety of ongoing operations.
Of that, $5.4m would assist the operation of rural community hubs to ensure reliable communication.
A further $10m would be devoted to community-led mental health support, including extending the successful Mana Ake programme developed after the Christchurch quakes into every school in the Hawke’s Bay and Tairāwhiti.
300 more classrooms, up to four new schools
On Monday, Hipkin announced the construction of 300 new classrooms and up to four new schools through $300 million from this year’s Budget with “$200 million for permanent roll growth, and $100 million to address shorter-term pressures on school rolls”.
“An additional $100 million will be added to the education infrastructure funding pipeline, which will enable the construction of up to four new schools and new school expansions, the first two projects are in central Auckland and Papamoa, with the remaining two projects to be announced in due course,” he said.
The new rooms and four schools will create space for 6600 more students.
Prime Minister Chris Hipkins and Education Minister Jan Tinetti during a media standup after their pre-Budget 2023 education announcement at Rydgway School on Monday. Photo / Mark Mitchell
Further announcements would be made on Budget Day in relation to investment in education infrastructure to support the Kaupapa Māori and Māori medium education sectors, as part of a wider Māori Education Package in Budget 2023.
Family and sexual violence reduction gets $73.5m
Budget 2023 will empower several providers aiming to reduce family and sexual violence through $73.5m of funding over four years.
It included the extension of the Family Violence Help Portal, which would provide access to online tools and services available nationwide 24/7 for people experiencing, using, or supporting those impacted by family violence
Young people would receive further resources through establishing advocates in eight Women’s Refuges, better supporting young people in the court system and expanding family dispute resolution practices to minimise harm to children.
Access to specialist support through Waitematā Safeguarding response would be increased as well as expanding the initiative to two other locations, while also supporting improved access to mainstream family violence and sexual violence services for disabled people
Kaupapa Māori specialist sexual violence services for whānau would also be further resourced.
“Tamariki forced to leave home and seek refuge in safe accommodation, most often with their mothers, will be better supported to stay safe, build resilience, and start to heal,” Social Development and Employment Associate Minister Priyanca Radhakrishnan said.
Pay boost for Defence Force
New Zealand Defence Force pay rates will be increased by between $4000 to $15,000, at a cost of $419 million over four years, committed in Budget 2023.
A further $328m would also be spent on upgrading NZDF assets and infrastructure.
The new pay rates, set to take effect from July 1, came amid concerns over the attrition rates within the Defence Force that would have compromised New Zealand’s response to an overseas incident had one occurred during Cyclone Gabrielle, Defence Minister Andrew Little said.
Defence Minister Andrew Little. Photo / Marty Melville
Emission reduction initiatives investor resourced
A total of $300m would be given to New Zealand Green Investment Finance Ltd, taking its pool of capital to $700m and making NZGIF one of the largest direct investors in New Zealand focused on climate change.
Over the past four years, NZGIF had invested in electric vehicle charging infrastructure, solar power in schools, and electric buses.
“This capital investment will support existing and future projects, including transport, process heat, infrastructure and early-stage companies,” Climate Change Minister James Shaw said.
“It will also open up new parts of the market and enable NZGIF to attract larger sums of private capital.”
As at June 2022, the total estimated lifetime emissions reductions of its investments was 580,000 to 710,000 tonnes of CO2e. That was equivalent to 480,000 to 590,000 homes’ energy use for one year.
Boost to Clean Car Discount Crown grant
About $100m from Budget 2023 was committed to the Crown’s repayable grant for the Clean Car Discount.
The scheme had exceeded industry and Government projections, with 20 per cent of all new passenger car sales being electric in 2022, a substantial increase from 8 per cent in 2021.
