By Vernon Small
deputy political editor
Treasurer Bill Birch has delivered an anaemic Budget, short on surprises and without the specific tax cuts needed to woo voters.
But National has left itself the option of some spending later in the year and a more detailed platform to fight the November election on.
In
a document packed with minor pledges but short on major new initiatives, the outgoing Treasurer abandoned last year's focus on micro-economic and social policy reform in favour of a series of small, "family-friendly" measures.
Prime Minister Jenny Shipley said New Zealanders would be "tickled pink" by the Budget, but Opposition MPs described it as shallow and lightweight.
"It was a lolly scramble with one lolly," Labour finance spokesman Michael Cullen said.
Despite an improving economic outlook, the Treasury has forecast a small deficit of $36 million for 1999-2000.
The Government is relying on improvements to the $790 million surplus forecast for 2000-01 and $1.5 billion for 2001-02 to provide the headroom for cuts to the top personal and corporate tax rates.
Far from the expected promise of tax cuts, Mr Birch said the Government would assess whether it could fund cuts from cash earmarked for future spending, cuts to existing programmes and hoped-for higher surpluses.
Mr Birch was keen to include the strongest possible statement on tax cuts, but was likely reined in by his successor, Bill English, and other younger ministers.
They wanted to keep open the option of higher social spending while keeping a more detailed programme in reserve for the election campaign.
As expected, the broadcasting fee will go, with New Zealand On Air funded at the same level from general taxation.
But the $110-a-year saving to each household from the dropped fee will be offset by a rise in car registration to allow for the full funding of ACC on motor vehicle injuries.
The Government's family-friendly initiatives include an eight-week parental tax credit for lower-income parents, more money for school classrooms and computers, extra help for dysfunctional families and $4.2 million over three years to help pay for glasses for under-6 year olds among the poor.
As a carrot to its rural heartland, the Government has scrapped stamp duty and flagged a review of lawyers' and real estate agents' monopolies.
But there is no sign of the radical asset-sales programme advocated by its key political ally, Act. Instead, the Government has confined itself to preparing the MetService for sale and reactivating the sale of Vehicle Testing New Zealand, while pledging to assess other sales on a case-by-case basis.
Public floats, such as the successful sale of Contact Energy and Auckland Airport, will be used where appropriate.
Tau Henare's Mauri Pacific MPs will be able to point to new job training, wage subsidies and backing for Maori language, including funding for the first Maori dictionary.
Health funding, a traditional big-ticket item, has received little new spending beyond the $200 million signalled in December.
The Government has confirmed a final $25 million to reduce elective surgery waiting lists, but the extra funding in this area that started in 1996 will not continue past 2000.
