2020 Election: National Claims $ 10 Billion Tax Hole in Labor Economic Plan

By Jane Patterson of RNZ

The war of economic plans continues as National asserts a major flaw in the Labor plan.

The National Party says there is a $ 10 billion hole, the latest in the claims and counterclaims of errors and fiscal holes between the two main parties.

On Thursday, Labor unveiled its plan and immediately had to correct a typographical error, but says that error did not affect the overall budget and its numbers are piling up.

But National says there is no provision to pay for the Auckland light rail project, which was blocked by New Zealand First in the last term, but which Labor have again committed to if re-elected.

National finance spokesman Paul Goldsmith says there was a “deliberate omission … to the tune of more than $ 10 billion” in connection with two of Labor’s most expensive pledges.

“Hydroelectric pumping power has estimates starting at $ 4 billion,” he says.

“However, it is not mentioned in the Labor pamphlet. Labor cannot have a policy that targets 100 percent renewable electricity by 2030 without a clear plan for how to get there and how it will be paid for.”

Light rail for Auckland has been estimated to “cost at least $ 6 billion and up to $ 15 billion according to Winston Peters,” says Goldsmith.

“Again, it is not mentioned in the weak Labor pamphlet. We know that Labor promised not to publish any policies in this election, but this pamphlet takes it to the next level.

“Workers will not finance light rail through the National Land Transportation Fund [NLTF] Given Grant Robertson has accused National of ‘robbing’ the NLTF to pay for part of our own ambitious transportation package. “

Labor says it has considered both projects.

In a statement, Robertson’s office says since April 2018: “The Government has been clear since it would leverage external sources of capital for the project, in addition to the initial funding of $ 1.8 billion in the Auckland Transport Alignment Project. , funded by the National Land Transport Fund and Auckland Council.

“This is funding that would be put at risk under National’s plans to raid the transportation fund,” he says.

His office says that, for Lake Onslow, the government has “set aside the funds to carry out a business case. This is the sensible thing to do, especially at this time when we are careful with every dollar we spend.”

Labor leader Jacinda Ardern says National’s claims are “absolutely ridiculous and desperate.”

“I don’t think anybody really thinks that’s a logical argument, that a project that hasn’t even completed a business case should be included in a plan.

“If that’s your [Goldsmith’s] logic, then it actually just dug its hole even bigger, “she says.

National has yet to explain the extent of its own mistakes, he says, dismissing his accusation as “a decoy.”

However, Goldsmith said it “speaks to the hubris of Labor that Grant Robertson thinks he can get away with with so little detail.”

“New Zealanders are facing the deepest recession on record. They want to see specific policies that will grow the economy and create jobs.

“All Labor has offered is a day off, higher taxes and a ban on banana stickers.”

– RNZ