Budget 2022: $1 billion cost of living package not a long-term solution - Rotorua hospo worker

A Rotorua business owner and mother says the Government's $350 one-off cost of living payment will help her pay her home and business rentals.

But another says the extra cash "will not fix anything" and could easily be spent within a month.

Finance Minister Grant Robertson yesterday announced as part of Budget 2022 about 2.1 million New Zealanders will get a $350 one-off payment as part of an emergency $1 billion cost of living package.

It will be offered to low-to-middle income earners of less than $70,000 who do not receive the winter energy payment. It will be handed out in instalments over three months from August 1 at a rate of about $27 a week.

The 25c a litre fuel tax cut and half-price public transport would be extended for another two months.

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"It's been a hard time for New Zealand," Robertson said.

"Budget 2022 [will help build] a high wage economy that provides economic security for New Zealanders in good times and in bad."

Leah Pepito (left) and her husband Francis own Pinoy Tres Cuisine, a Filipino takeaway business on Pukuatua St. Photo / Supplied

Rotorua mum and owner of Pinoy Tres Cuisine, Leah Pepito, said the $350 was good news.

"I'd put it towards the rent of the house and the store."

The combined rental cost was about $800 a week.

Pepito said the extension on fuel duty reductions would especially help her business.

"We can spend $40 a day on food order deliveries."

Pepito said she would be happy not to have to raise prices for her customers.

"They understand the cost of ingredients and fuel goes up and they don't complain but I'd feel better not to have to charge more."

Pepito was also happy to hear criteria for the first home buyer grant had been lifted in Rotorua, with the house price cap raised to $525,000.

"We want the minimum wage earner and low-income earners to be able to buy a home."

Rotorua-based hospitality worker and mum Yolima Monterrosa said she wanted longer term solutions for the cost of living crisis. Photo / Andrew Warner

But not everyone was happy with the Budget.

Rotorua hospitality worker and mum Yolima Tavares Monterrossa said it felt like the Government was trying to buy her vote for the next election.

"It is like they are focused on spending and not earning.

"We could spend $350 in a month. That will not fix anything."

Monterrossa said what people needed would be long term tax exemptions and incentives to get back into the workforce after Covid-19.

"They have not fixed the problems we already have.

"We need wages that consistently let you live, not bonus points that are going to give you relief for a month."

Aged Concern Rotorua manager Rory O'Rourke. Photo / Andrew Warner

Rotorua Age Concern manager Rory O'Rourke said the fuel duty reduction and public transport fare reduction would help members of his community be less isolated.

"Anything that the Government does will help," O'Rourke said.

"At present, there are quite a lot of elderly struggling, particularly with the cost of living and with isolation."

O'Rourke said many elderly people's mental health was suffering from loneliness because they simply could not afford to go out.

"People are not signing up for our weekly excursions because they can't actually get to their venue.

"We've been picking them up from their homes."

O'Rourke described fuel prices as "ridiculous" and said the older members of the community needed ongoing support, not just one-off payments.

"Once that's all gone it's gone."

Rotorua MP Todd McClay. Photo / NZME

Rotorua MP Todd McClay said the Budget didn't do "anywhere near enough" to help the hard-working people in Rotorua who were finding it hard to pay their bills.

"That $350 payment doesn't do anything for our seniors, doesn't do anything for people who get support from the government," McClay said.

"In fact, that payment will barely meet the cost of rent increases over the last three years, for three weeks."

"I fear it's going to get very, very hard for businesses and local families to pay their bills as the Government borrows and spends more money than has ever been spent."

Mamaku dairy farmer and father of two David Beuth said the funding allocated to research into agricultural emissions solutions was "encouraging" but the rest of the Budget was still just a "bandaid".

"It's still chucking money at a problem. It's a good one-off. But once that money runs out, then what?"

Beuth didn't think there were any real changes being proposed.

"It's just money and no solutions, no plans but I suppose that's all you can get when there's an election around the corner."

New Zealand Supreme Natural Foods marketing officer Eric Geng. Photo / Supplied

New Zealand Supreme Natural Foods marketing officer Eric Geng said the cost of living boost seemed like only a temporary fix.

"The legislation around groceries and food prices are more important from my perspective.

"You can't expect people to spend money on other products when the essentials are so expensive."

Geng said measures that would reduce costs for consumers also would benefit businesses as well.

"But I understand the new legislation is still not finalised. The impact won't be felt for a while."

Geng said the announced Business Growth Fund could be very helpful to businesses, especially if there was scope for growing digital capabilities for selling products.

Community health support worker Omar al Omari. Photo / Andrew Warner

A third of the Budget 2022 spending, $8b, was allocated to health spending, including $71m for Pharmac to buy more cancer drugs and more money for ambulances and rebuilding run-down hospitals.

Community health support worker Omar al Omari said he was amazed to hear about the spending allocated to the health system.

"I have seen and I have experienced the problems in the system," al Omari said.

"The Budget is helpful but now the management of that spending will be very important."

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Al Omari said, for example, he would lessen spending allocated to assistance care workers and instead provide more patients with access to physiotherapy.

"Spending more money on physio could lessen the need for long term care for stroke patients and people with brain injuries.

"I don't want them to spend on nothing. It's about priorities."

Al Omari said he would also like to see health spending audited regularly to assess its effectiveness.