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Home / New Zealand

Audrey Young: Jacinda Ardern and Grant Robertson deliver coronavirus rescue package with a dose of nationalism

Audrey Young
By Audrey Young
Senior Political Correspondent·NZ Herald·
17 Mar, 2020 07:09 AM3 mins to read

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Prime Minister Jacinda Ardern in front of the flags in the Beehive theatrette. Photo / Mark Mitchell

Prime Minister Jacinda Ardern in front of the flags in the Beehive theatrette. Photo / Mark Mitchell

Audrey Young
Opinion by Audrey Young
Audrey Young, Senior Political Correspondent at the New Zealand Herald based at Parliament, specialises in writing about politics and power.
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When it comes to spending in an emergency, Governments are criticised for spending too little, never for spending too much.

To that extent the $12.1 billion rescue package for the coronavirus crisis is beyond reproach.

By any previous standard, for New Zealand it is a massive amount, and fittingly so for the rapidly deepening twin health and economic crises.

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It is not quite as billed by Prime Minister Jacinda Ardern and Finance Minister Grant Robertson, being a package that will give many businesses up to $150,000 rather than being targeted at tourism.

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The package gives a much-needed sense of comfort but it is no panacea.

It will necessarily be temporary and, as Robertson stressed, it will save some jobs but it won't save all jobs.

About half of the $12 billion will be used up by the end of the financial year in June through sick leave and wages subsidies.

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Finance Minister Grant Robertson with Cabinet colleagues, from left, Iain Lees-Galloway, James Shaw, Stuart Nash and David Carter, before announcing his $12.1 billion package. Photo / Mark Mitchell
Finance Minister Grant Robertson with Cabinet colleagues, from left, Iain Lees-Galloway, James Shaw, Stuart Nash and David Carter, before announcing his $12.1 billion package. Photo / Mark Mitchell

The rest will be spent in a variety of measures over the next four years.

The package has been almost universally welcomed and it will enhance the reputation Ardern and Robertson have earned for managing this crisis.

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It was clearly an opportunity for Robertson and Ardern to engage in more nationalistic rhetoric as the severity of the crisis intensifies.

They are not alone. Political leaders around the world are attempting to rally their respective countries in the war against the virus, literally adopting the language of war in some cases.

National Party leader Simon Bridges. Photo / Mark Mitchell
National Party leader Simon Bridges. Photo / Mark Mitchell

"We are all in this together,"said Robertson.

"There are moments in our history where it's not business as usual," Ardern began her speech. "When we need unity, not politics as usual and today is one of those days."

It makes criticism of the "war effort" almost seem unpatriotic. That didn't stop National leader Simon Bridges.

National actually supports most of the package but Bridges struggled to find the right tone or words for the parts he supported or questioned.

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The inclusion of winter energy payments for pensioners in what was called a "business continuity package" for Covid-19 was clearly a surprise, as was the $25 a week increases in social welfare benefits.

Bridges seized on it as an example of "confused priorities" and "taking the opportunity to prioritise beneficiaries over business."

Robertson and Ardern are off to Rotorua Thursday to meet businesses that may be saved by the measures.

Robertson has already dubbed the May 14 Budget the "recovery Budget" which may be hugely premature.

The trajectory of the disease in New Zealand is unknown.

Prime Minister Jacinda Ardern and Finance Minister Grant Robertson. Photo/ Mark Mitchell
Prime Minister Jacinda Ardern and Finance Minister Grant Robertson. Photo/ Mark Mitchell

There is no evidence of community transmission in New Zealand – yet.

Testing has finally stepped up – almost the same number of tests being conducted right now as the whole of the past six weeks - and not before time.

The Ministry of Health has got the message that its testing regime has been too restrictive.

It has been easy to boast about New Zealand's response to the disease if the infection rate is being masked by inadequate testing.

Until the extent of its reach is really known, it is not clear the Government will switch from rescue to recovery.

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